Management Reform: Completion Status of Agency Actions Under the National
Performance Review (Letter Report, 06/12/96, GAO/GGD-96-94).

Pursuant to a congressional request, GAO reviewed the completion status
of 380 National Performance Review (NPR) recommendations that NPR
claimed were completed as of September 7, 1995.

GAO found that: (1) as of September 1995, NPR classified 380, or 32
percent of the 1,203 action items, as completed; (2) as of January 1996,
294, or 77 percent of the 380 action items, had been verified as
completed; (3) of the 86 action items that could not be verified as
completed, 66 items were either partially implemented or some action had
been taken; (4) there was no sufficient information available to make a
determination on 20 action items; (5) the 27 action items classified as
other were properly implemented as required, but implementation had not
been completed; and (5) of the 1,203 action items needed to implement
NPR recommendations, 24 percent have been completed.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GGD-96-94
     TITLE:  Management Reform: Completion Status of Agency Actions 
             Under the National Performance Review
      DATE:  06/12/96
   SUBJECT:  Reengineering (management)
             Public administration
             Reporting requirements
             General management reviews
             Total quality management
             Federal agency reorganization
             Cost control
IDENTIFIER:  National Performance Review
             GMR
             TQM
             
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Cover
================================================================ COVER


Report to Congressional Requesters

June 1996

MANAGEMENT REFORM - COMPLETION
STATUS OF AGENCY ACTIONS UNDER THE
NATIONAL PERFORMANCE REVIEW

GAO/GGD-96-94

Management Reform

(410009)


Abbreviations
=============================================================== ABBREV

  BOP - Bureau of Prisons
  CIA - Central Intelligence Agency
  DOD - Department of Defense
  DOE - Department of Energy
  DOI - Department of the Interior
  DOT - Department of Transportation
  FAA - Federal Aviation Administration
  FAR - Federal Acquisition Regulation
  FGDC - Federal Geographic Data Committee
  GED - General Equivalency Degree
  HUD - Department of Housing and Urban Development
  INS - Immigration and Naturalization Service
  NASA - National Aeronautics and Space Administration
  NPR - National Performance Review
  OMB - Office of Management and Budget
  OMC - Office of Motor Carriers
  OPM - Office of Personnel Management
  VA - Department of Veterans Affairs
  VSO - Veterans Service Organizations

Letter
=============================================================== LETTER


B255769.4

June 12, 1996

The Honorable Ted Stevens, Chairman
The Honorable John Glenn, Ranking Minority Member
Committee on Governmental Affairs
United States Senate

The Honorable William F.  Clinger, Jr., Chairman
The Honorable Cardiss Collins, Ranking Minority Member
Committee on Government Reform and Oversight
House of Representatives

The Honorable John R.  Kasich, Chairman
Committee on the Budget
House of Representatives

On September 7, 1993, the National Performance Review (NPR)--the
administration's major management reform initiative--issued a report
containing 384 recommendations intended to make the government "work
better and cost less." \1 NPR subsequently identified a series of
1,203 action items necessary to implement these recommendations.  In
its September 7, 1995, report,\2 NPR said that agencies reported to
it that nearly one-third, or 380, of the action items had been
completed.  This report responds to your request that we review the
completion status of the 380 action items that NPR said were
completed. 


--------------------
\1 From Red Tape to Results:  Creating a Government That Works Better
and Costs Less, report of the National Performance Review, Vice
President Al Gore, September 7, 1993. 

\2 Common Sense Government:  Works Better and Costs Less, third
report of the National Performance Review, Vice President Al Gore,
September 7, 1995. 


   BACKGROUND
------------------------------------------------------------ Letter :1

On September 7, 1993, under the direction of the Vice President, NPR
issued a report containing recommendations that covered 27 federal
agencies and 14 government systems, such as procurement, human
resource management, and budgeting.  Since its 1993 report, NPR has
issued 33 accompanying reports that describe in detail the
recommendations and the action items necessary to complete them. 

We reported our initial comments on the NPR recommendations in
December 1993.\3 In December 1994, we reported our findings on the
implementation status of each of NPR's recommendations.\4

Since then, NPR published its third report, which details agency
restructuring recommendations and the administration's regulatory
reform efforts. 


--------------------
\3 Management Reform:  GAO's Comments on the National Performance
Review's Recommendations(GAO/OCG-94-1, Dec.  3, 1993). 

\4 Management Reform:  Implementation of the National Performance
Review's Recommendations (GAO/OCG-95-1, Dec.  5, 1994). 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :2

Of the 380 action items in NPR records identified as completed, we
verified that 294, or 77 percent, were completed.  We also determined
that 66 action items, or 17 percent, were not completed but that, for
all but 1 of them, they were either partially implemented or some
action had been taken to begin implementation.  For 20 of the action
items, or 5 percent, we were unable to make a determination because
sufficient information was not available. 


   OBJECTIVE, SCOPE, AND
   METHODOLOGY
------------------------------------------------------------ Letter :3

Our objective was to assess the completion status of the 380 NPR
action items that agencies reported to NPR as completed.  To
accomplish our objective, we first obtained access to NPR's records
and identified a total universe of 1,203 action items.  These records
contained an assessment of the implementation status of each item. 
We reviewed those items reported by agencies to NPR as completed.  In
its records, NPR classified an action item as completed under two
captions:  "completed" or "substantially completed, further action
not expected."

To assess NPR's classifications, we contacted the appropriate agency
officials to verify that each action item reported by NPR as
completed, was indeed completed as of January 16, 1996 (roughly 4
months after NPR's 1995 report was issued).  We obtained and reviewed
relevant agency documents, such as legislation, executive orders,
memorandums, schedules, or policies, that we believed were needed to
validate the completion status of the action items. 

We compared our findings to the wording contained in the NPR
accompanying reports detailing the recommendations and action items. 
For those action items not included in a published NPR accompanying
report, we used the wording describing those action items from NPR
records.\5

In certain cases, we noticed that the original wording describing an
action item contained in the accompanying report differed from that
contained in NPR's records.  For example, the description in NPR's
records for action item PROC15.03 was changed from "train procurement
officials on source selection techniques" to "develop a course to
train procurement officials." To be consistent with our 1994 review
and the action items NPR made public in its accompanying reports, we
used the wording from those reports.  On the basis of our review, we
assigned one of the following six status codes to each of the 380
action items: 

(1) Fully Implemented.  The entire wording of the action item has
been fulfilled. 

(2) Partially Implemented.  Only a portion of the action has been
implemented.  When the wording of the action item had multiple parts,
if one part or a portion of a part had been implemented (but not all
parts), we categorized the action item as "partially implemented."

(3) Not Implemented-Action Taken.  No part of the action item has
been implemented, but some action has been taken toward the
completion of the action item.  For example, if legislation had been
introduced to address the action but had not been enacted into law,
we categorized the action item as "not implemented-action taken."

(4) Not Implemented-No Action.  No part of the action item has been
completed, and no action has been taken to address the action item. 
For example, if the action item called for changes in legislation but
no legislation has even been proposed, we categorized the action item
as "not implemented-no action."

(5) Insufficient Information.  Insufficient or conflicting
information prevented us from determining the status of the action
item. 

(6) Other.  Implementation has occurred or action has been taken
that, while not responsive to the letter of the action item,
generally was consistent with its purpose.  For example, if the
action item states that a particular position should be created to
coordinate an effort but the coordination is achieved without the
creation of the position, we categorized the action item as "other."

We considered those action items we classified as "fully implemented"
and "other" to be completed.  Action items we classified as
"partially implemented," "not implemented-action taken" and "not
implemented-no action taken" were considered not completed.  We
classified action items as "insufficient information" when sufficient
information was not available for us to verify that they were
completed.  Those action items were from the Central Intelligence
Agency (CIA), whose Director did not provide the necessary
information.  For those action items we considered not completed, we
noted the basis for our conclusions in appendix II. 

In making our final determinations on completion status, we provided
NPR officials the results of our initial determinations.  NPR
officials discussed these results with agencies and provided us with
additional, clarifying information that we considered and, when we
believed appropriate, used in making our final determinations.  NPR
officials provided written comments on a draft of this report, and
their comments appear in appendix III of this report. 

We did not review NPR's estimated savings from implementing its
recommendations.  The Congressional Budget Office already has
analyzed some of the NPR recommendations from that perspective. 

We did our work in accordance with generally accepted government
auditing standards from January through March 1996.  The work was
done by staff from five of GAO's six divisions in Washington, D.C.,
and several field locations. 


--------------------
\5 NPR has not released accompanying reports for the Departments of
Health and Human Services, Justice, Transportation, Treasury, and the
Executive Office of the President. 


   GAO ANALYSIS
------------------------------------------------------------ Letter :4

Our review of NPR's records indicated that of the 1,203 action items
necessary to implement NPR's recommendations to make the federal
government work better and cost less, 32 percent, or 380, were
classified as completed as of September 7, 1995.  In analyzing agency
documentation on these 380 action items, we determined that 294, or
about 77 percent of the 380 items, were completed as of January 16,
1996.  Figure 1 shows the difference between the number of action
items identified as completed in NPR's records and the number we
determined to be completed. 

   Figure 1:  Difference Between
   the Number of Action Items
   Identified as Completed in
   NPR's Records and GAO's
   Determination

   (See figure in printed
   edition.)

Note:  Percentages do not add to 100 because of rounding. 

Source:  GAO. 

We determined that 66 items, or 17 percent, were not completed.  Of
these, we classified 43 as being partially implemented, 22 as having
not been implemented but having action taken, and 1 item for which no
action was taken.  An example of an action item having not been
implemented but having action taken is the Department of Defense
(DOD) action item DOD04.03.  The action item states that "Executive
Order 12615 (Performance of Commercial Activities) should be
rescinded and a new Executive Order issued." We found that the Office
of Management and Budget (OMB) rejected DOD's recommended change to
the executive order.  OMB believed that it would be inappropriate to
change the executive order without first changing OMB Circular A-76. 
OMB is in the process of changing its circular, but its intentions
regarding changing the executive order after that are unclear. 

For 20 of the action items, or 5 percent, we were unable to make a
determination because sufficient information was not available. 
These action items were from the CIA. 

For the 27 action items we classified as "other," we determined that
the action items had been implemented in a manner that was consistent
with the purpose of the recommended action item but that the
implementation was not completed specifically as called for in the
action item.  For example, the Department of the Interior (DOI)
action item DOI14.03 states that "DOI should establish a legal strike
force by the end of 1994 to address barriers to cleanup." Although
DOI did not establish a "legal strike force" because of budget
constraints, it instead established, in 1994, a coordination group
within DOI's Solicitor's office that meets monthly to address
barriers to cleanup. 

Thus, on the basis of our review of the 1,203 action items NPR
identified as needed to implement its recommendations, we found that
24 percent were completed.  Table 1 summarizes our findings
concerning the completion status of the 380 action items.  (The
action items are identified by NPR-assigned abbreviations for
recommendation areas.  See app.  I for a listing of the agencies and
issues.)



                                Table 1
                
                  Summary of the Completion Status of
                              Action Items


                                    Action
                                     items
                                    listed                  Insufficie
                                    in NPR                          nt
                                    record                  informatio
                             Total    s as             Not        n to
                            action  comple  Comple  comple   determine
Agency or Issue              items     ted     ted     ted      status
--------------------------  ------  ------  ------  ------  ----------
AID                             38      16      15       1           0
BGT                             28       3       1       2           0
DES                              4       0      \a      \a          \a
DOC                             46      16      12       4           0
DOD                             62      16      15       1           0
DOE                             32      10       8       2           0
DOI                             61      24      17       7           0
DOJ                             49      21      18       3           0
DOL                             49       7       7       0           0
DOS                             34       5       2       3           0
DOT                             44      17      16       1           0
DVA                             30       8       3       5           0
ED                              47      12       9       3           0
ENV                             12       5       5       0           0
EOP                             32       9       9       0           0
EPA                             44      18      18       0           0
FEMA                            15       7       7       0           0
FM                              54      16      10       6           0
FSL                             11       5       5       0           0
GSA                              6       4       2       2           0
HHS                             47      10      10       0           0
HRM                             46      11       6       5           0
HUD                             40      13      10       3           0
ICS                              9       5       4       1           0
INTEL                           33      20       0       0          20
IT                              47       6       3       3           0
NASA                            19      16      15       1           0
NSF                              6       2       2       0           0
OPM                              9       0      \a      \a          \a
ORG                              6       0      \a      \a          \a
PROC                            63      31      25       6           0
QUAL                            13       2       2       0           0
REG                             20       3       3       0           0
SBA                             15       9       7       2           0
SMC                             16       5       4       1           0
SUP                             49      22      18       4           0
TRE                             55       3       3       0           0
USDA                            12       3       3       0           0
======================================================================
Total                        1,203     380     294      66          20
----------------------------------------------------------------------
\a We did not attempt to verify action items under this agency or
issue because NPR did not report any as being completed. 


   AGENCY COMMENTS
------------------------------------------------------------ Letter :5

To obtain NPR's comments we provided a draft of this report to the
Project Director of NPR.  To prepare its response, NPR obtained
comments from each of the agencies that we reported as having not
completed specific actions.  NPR found our report to be valuable
overall and said that it would be helpful in assuring Congress and
the public that NPR's recommendations are being implemented. 

NPR and the agencies agreed with us on 42 of the 70 action items that
we had classified as not complete.  For the remaining 28 action
items, the agencies and NPR disagreed with our classifications. 
According to NPR, for nearly all of the action items on which we
disagreed, the disagreement was not based on the facts but on a
difference in interpretation.  We reviewed NPR's comments for each of
the 28 action items on which we disagreed.  Where appropriate, we
made additional inquiries of the relevant agencies.  We changed our
classification on four action items.  For three action items
involving the Department of Transportation (DOT), we changed our
classification after pertinent documentation, which was not
previously made available to us, was provided by DOT officials.  We
changed our classification of one action item involving the
Immigration and Naturalization Service in deference to the agency's
view of what was meant by the ambiguous wording of the action item. 

On the remaining 24 action items, we did not change our
classification because we continue to believe that the facts and
documentation available to us do not support a conclusion that the
action items had been fully implemented.  For example, for more than
half of the action items, efforts to fulfill the action items were
either still in process or no evaluation or other evidence supporting
the agency's position was available.  Therefore, we could not
determine whether the action items had been completed.  In five
instances, we found that the wording of the action item was
substantively changed from that originally published by NPR.  In
effect, the changes lowered the requirements necessary to complete
the action item.  For six of the action items, NPR, according to its
own records, classified the action items as only "substantially
completed, further action not expected."

In addition, NPR suggested that we drop from our baseline the 20
action items for which sufficient information was unavailable.  NPR's
Project Director said that we should either drop these action items
from the baseline or accept the intelligence community's self-
assessment that these items were completed.  To accomplish our
objective of independently assessing the status of agency actions
that NPR reported as completed and to ensure consistency with our
earlier review of NPR, we retained as part of our baseline the 20
items classified as having insufficient information. 

In response to NPR's comments on each of the 28 action items, we made
technical changes to clarify our comments in appendix II.  A copy of
NPR's comments and our response are in appendix III. 


---------------------------------------------------------- Letter :5.1

Copies of this report will be sent to other congressional committees,
the Vice President, the Director of OMB, the Director of NPR, OMB's
Deputy Director for Management, and other interested parties.  Copies
also will be made available to others upon request. 

If you have any questions concerning this report, please call me on
(202) 512-8676. 

L.  Nye Stevens
Director, Federal Management
 and Workforce Issues


NPR RECOMMENDATION AREAS
=========================================================== Appendix I

Recommendation code     Focus of NPR recommendations
----------------------  ----------------------------------------------
AID                     Agency for International Development

BGT                     Mission-Driven, Results-Oriented Budgeting

DES                     Rethinking Program Design

DOC                     Department of Commerce

DOD                     Department of Defense

DOE                     Department of Energy

DOI                     Department of the Interior

DOJ                     Department of Justice

DOL                     Department of Labor

DOS                     Department of State/U.S. Information Agency

DOT                     Department of Transportation

DVA                     Department of Veterans Affairs

ED                      Department of Education

ENV                     Reinventing Environmental Management

EOP                     Executive Office of the President

EPA                     Environmental Protection Agency

FEMA                    Federal Emergency Management Agency

FM                      Improving Financial Management

FSL                     Strengthening the Partnership in
                        Intergovernmental Service Delivery

GSA                     General Services Administration

HHS                     Department of Health and Human Services

HRM                     Reinventing Human Resource Management

HUD                     Department of Housing and Urban Development

ICS                     Improving Customer Services

INTEL                   Intelligence Community

IT                      Reengineer Through the Use of Information
                        Technology

NASA                    National Aeronautics and Space Administration

NSF                     National Science Foundation/Office of Science
                        and Technology Policy

OPM                     Office of Personnel Management

ORG                     Transforming Organizational Structures

PROC                    Reinventing Federal Procurement

QUAL                    Creating Quality Leadership and Management

REG                     Improving Regulatory Systems

SBA                     Small Business Administration

SMC                     Streamlining Management Control

SUP                     Reinventing Support Services

TRE                     Department of the Treasury/Resolution Trust
                        Corporation

USDA                    Department of Agriculture
----------------------------------------------------------------------

STATUS OF NPR'S COMPLETED ACTION
ITEMS
========================================================== Appendix II

On the basis of our review, we assigned one of the following six
status codes to the 380 action items identified in NPR records as
completed: 

(1) Fully Implemented.  The entire wording of the action item has
been fulfilled. 

(2) Partially Implemented.  Only a portion of the action has been
implemented.  When the wording of the action item had multiple parts,
if one part or a portion of a part had been implemented (but not all
parts), we categorized the action item as "partially implemented."

(3) Not Implemented-Action Taken.  No part of the action item has
been implemented, but some action has been taken toward the
completion of the action item.  For example, if legislation had been
introduced to address the action but had not been enacted into law,
we categorized the action item as "not implemented-action taken."

(4) Not Implemented-No Action.  No part of the action item has been
completed, and no action has been taken to address the action item. 
For example, if the action item calls for changes in legislation but
no legislation has even been proposed, we categorized the action item
as "not implemented-no action."

(5) Insufficient Information.  Insufficient or conflicting
information prevented us from determining the status of the action
item. 

(6) Other.  Implementation has occurred or action has been taken
that, while not responsive to the letter of the action item,
generally was consistent with its purpose.  For example, if the
action item states that a particular position should be created to
coordinate an effort but the coordination is achieved without the
creation of the position, we categorized the action item as "other."

Empty cells in the GAO comments column indicate that we had no
comment. 



                                    Table II.1
                     
                      Summary of Completed NPR Action Items

Action                                       GAO
item                                      status
code      Action item text                  code  GAO comments
--------  ------------------------------  ------  ------------------------------
 AID01 Redefine and Focus AID's Mission and Priorities
--------------------------------------------------------------------------------
AID01.01  The AID Administrator should         1
          conduct a zero-based, bottom-
          up review of all AID programs
          and operations, identifying
          programs and operations that
          (a) do not directly support a
          clearly defined mission of
          sustainable development, and
          (b) can be undertaken by other
          assistance providers with a
          comparative advantage over
          AID. Nonessential and
          redundant programs should be
          eliminated.

AID01.03  The AID Administrator should         1
          develop a strategic vision of
          what the agency should look
          like as it enters the 21st
          century.

AID01.04  The AID Administrator should         1
          conduct a comprehensive review
          of all agency directives and
          other internal and public
          issuances to ensure that they
          clearly express the agency's
          mission, priorities, and
          objectives in clear,
          consistent, and accurate
          terms.


 AID02 Reduce Funding, Spending, and Reporting Micromanagement
--------------------------------------------------------------------------------
AID02.01  Funding for AID development          1
          assistance programs should be
          appropriated on a 2-year or
          multiyear basis determined by
          reference to specific
          assistance needs.


 AID03 Overhaul the AID Personnel System
--------------------------------------------------------------------------------
AID03.02  AID should reinvigorate the          1
          International Development
          Intern Program.

AID03.04  AID should ensure that junior        1
          officers develop management
          and administrative skills as
          part of their career
          development.

AID03.06  AID should encourage                 6  The rotational assignments
          rotational assignments in and           were intended to eliminate
          out of the Office of the                friction between AID and OIG.
          Inspector General (OIG).                However, a change in personnel
                                                  has accomplished the goal of
                                                  reducing friction. AID reports
                                                  relations between AID and OIG
                                                  to be at an all-time high.

AID03.07  AID should restructure the           1
          performance review and
          employee incentive programs to
          link individual performance to
          organizational performance.

AID03.09  AID should integrate qualified       2  AID has pilot-tested using the
          spouses of overseas couples             talents of nondirect-hire
          into the assignment process             spouses; however, budget
          and cultivate them as part of           limitations preclude any
          the overseas workforce.                 further action. Further
                                                  implementation will depend on
                                                  adequate funding.

AID03.10  AID should initiate an               1
          interagency review of Foreign
          Service (FS) benefit policies
          among the various agencies
          using FS employees.


 AID04 Manage AID Employees and Consultants as a Unified Workforce
--------------------------------------------------------------------------------
AID04.02  AID should put systems in            1
          place to accurately monitor
          employee work years for both
          direct-hire employees and
          personal service contractors.


 AID05 Establish an AID Innovation Capital Fund
--------------------------------------------------------------------------------
AID05.03  AID should conduct a thorough        1
          cost-benefit analysis of any
          proposed capital expenditure.

AID05.04  AID should obtain customer           1
          input during business process
          reengineering.


 AID06 Reengineer Management of AID Projects and Programs
--------------------------------------------------------------------------------
AID06.02  The AID Administrator should         1
          designate selected AID
          missions as pilots to
          experiment with innovative
          approaches to programming and
          delivery of AID assistance.

AID06.06  AID should improve donor             1
          coordination both at
          headquarters and in the field.


 AID07 Consolidate or Close AID Overseas Missions
--------------------------------------------------------------------------------
AID07.02  AID should support                   1
          establishing the requirement
          that all assistance programs
          include plans for graduation
          from U.S. assistance.


 BGT03 Empower Managers to Perform
--------------------------------------------------------------------------------
BGT03.04  Propose revolving funds for          6  Every major department has the
          those agencies that do not              authority to create revolving
          have them.                              funds, and some such funds
                                                  have been in existence since
                                                  the 1940s. This authority
                                                  preceded the NPR
                                                  recommendation.

BGT03.06  Simplify the apportionment           3  Neither the 1994 or 1995
          process.                                updates of OMB Circular A-34,
                                                  "Instructions on Budget
                                                  Execution," contain any new
                                                  instructions for a simplified
                                                  apportionment process. As
                                                  stated in our December 1994
                                                  NPR report, absent a change in
                                                  formal guidance, OMB has for
                                                  several years offered some
                                                  agencies an annual
                                                  apportionment approval
                                                  process--letter apportioning-
                                                  -which reduces paperwork and
                                                  gives agencies increased
                                                  control over the rate at which
                                                  they obligate funds. There is
                                                  an indication of some broader
                                                  use of this process. However,
                                                  OMB neither monitors centrally
                                                  how many agencies use this
                                                  annual apportionment process
                                                  nor how many budget accounts
                                                  are affected.


 BGT05 Provide Line Managers With Greater Flexibility to Achieve Results
--------------------------------------------------------------------------------
BGT05.03  Expedite reprogramming of            3  OMB's guidance on expediting
          funds within agencies.                  reprogrammings has not
                                                  changed. This guidance is
                                                  limited to reviews by OMB and
                                                  does not govern agencies'
                                                  internal review and approval
                                                  process. As stated in OMB
                                                  Circular A-11, "Preparation
                                                  and Submission of Budget
                                                  Estimates," section 12.9(b),
                                                  in exceptional circumstances,
                                                  agencies may request oral
                                                  clearance of reprogramming
                                                  materials or make other
                                                  arrangements with their OMB
                                                  representatives for expedited
                                                  review.


 DOC02 Provide Better Coordination to Refocus and Leverage Federal Export
Promotion
--------------------------------------------------------------------------------
DOC02.01  The President should issue an        1
          executive order to grant the
          Trade Promotion Coordinating
          Committee (TPCC) broader
          authority to control federal
          export promotion efforts.

DOC02.02  TPCC should establish a pilot        1
          program to physically
          integrate the domestic field
          offices of federal agencies
          that provide export counseling
          and financial services.

DOC02.03  A recruiting program should be       1
          established through TPCC to
          increase the Foreign
          Commercial Service Office
          Corps.


 DOC03 Reform the Federal Export Control System for Commercial Goods
--------------------------------------------------------------------------------
DOC03.05  The Commerce Department's            2  BXA has completed a major
          Bureau of Export                        reorganization of its
          Administration (BXA) should             operations to adapt to the
          adapt its operations to the             changing nature of export
          changing nature of export               controls and has initiated an
          controls.                               ongoing program to train other
                                                  nations, especially the newly
                                                  independent states, in the
                                                  complexities of dual-use
                                                  export controls. Commerce is
                                                  finalizing a rewrite of its
                                                  regulations to provide clear
                                                  and concise regulations and
                                                  timely export control
                                                  information. The regulations
                                                  are expected to be published
                                                  in March 1996.


 DOC05 Create Public/Private Competition for the National Oceanic and
Atmospheric Administration (NOAA) Fleet
--------------------------------------------------------------------------------
DOC05.03  NOAA should obtain an                1
          independent review of its
          modernization program.


 DOC09 Expand the Electronic Availability of Census Data
--------------------------------------------------------------------------------
DOC09.02  The Census Bureau should             1
          publish reports electronically
          on the Internet.

DOC09.03  The Census Bureau should             1
          publish frequently used
          statistics on the Internet.

DOC09.04  The Census Bureau should             1
          provide data from micro-
          records through a dial-up
          system.

DOC09.05  The Census Bureau should link        1
          these systems (particularly
          Internet databases) to each of
          the Census Bureau's 12
          regional offices.


 DOC10 Amend the Omnibus Trade and Competitiveness Act to Increase the Data
Quality of the National Trade Data Bank
--------------------------------------------------------------------------------
DOC10.01  Section 5412 of the Omnibus          1
          Trade and Competitiveness Act
          of 1988 (P.L. No. 100-09418,
          15 U.S.C. sec. 4912) should be
          amended by removing reference
          to "fees consistent with" the
          Freedom of Information Act.

DOC10.02  The Department of Commerce           2  Legislative changes have
          should place the National               allowed Commerce to establish
          Trade Data Bank (NTDB) on a             a revolving fund for financing
          firm financial foundation to            NTDB with revenue from NTDB
          ensure its continued                    sales reinvested into further
          viability.                              NTDB operations. Although
                                                  these actions do appear to
                                                  make NTDB self-funding, more
                                                  time will be needed to
                                                  evaluate their outcome.

DOC10.03  The Economics and Statistics         3  Commerce officials told us
          Administration (ESA) should             that they have discussed plans
          contact international                   with international agency
          organizations (the United               officials to include their
          Nations, the Organization for           data in NTDB. They added that
          Economic Cooperation and                high licensing fees for the
          Development, World Bank, and            data are the main barrier to
          International Monetary Fund)            this effort and that an action
          and develop an action plan for          plan has not been developed
          including their data in NTDB.           for including them in NTDB.

DOC10.04  The Secretary of Commerce            1
          should direct all Commerce
          agencies to comply with
          requests from ESA for data.

DOC10.05  ESA, with the authority of the       2  ESA did develop an NTDB
          Secretary and the assistance            marketing plan for fiscal year
          of Commerce's Office of Public          1995 and created an NTDB
          Affairs and the International           Marketing Manager position
          Trade Administration, should            within the agency. Although
          take appropriate steps to               Commerce officials report an
          develop an effective marketing          increase in demand for NTDB,
          plan that publicizes NTDB as            the effectiveness of the
          an exporter's resource tool to          marketing plan will be
          a large number of potential             difficult to determine because
          customers.                              it lacks a thorough evaluation
                                                  component.

DOC10.06  ESA should deliver the content       1
          of NTDB using a full range of
          up-to-date computer
          techniques.


 DOC14 Build a Business and Economic Information Node for the Information
Highway
--------------------------------------------------------------------------------
DOC14.03  Commerce should establish a          1
          prototype "on-line" business
          and economic information
          system in the White House
          (National Economic Council) to
          develop the concept, refine
          its data and communications
          standards, and create a state-
          of-the-art search and
          retrieval and analytical
          system.


 DOD01 Rewrite Policy Directives to Include Better Guidance and Fewer
Procedures
--------------------------------------------------------------------------------
DOD01.01  DOD should clarify policy and        1
          decentralize procedures to
          empower people to do their
          jobs better.

DOD01.02  Components (Office of the            1
          Secretary of Defense, military
          services, and defense
          agencies) must streamline
          their procedural guidance.


 DOD03 Purchase Best Value Common Supplies and Services
--------------------------------------------------------------------------------
DOD03.03  DOD should empower any               1
          properly delegated individual
          to buy common supplies and
          nonprofessional services.


 DOD04 Outsource Noncore DOD Functions
--------------------------------------------------------------------------------
DOD04.03  Executive Order 12615                3  OMB rejected DOD's recommended
          (Performance of Commercial              change to the executive order.
          Activities) should be                   OMB said that it would be
          rescinded and a new executive           inappropriate to change the
          order issued.                           executive order without first
                                                  changing OMB Circular A-76.
                                                  OMB is in the process of
                                                  changing its circular, but its
                                                  intentions regarding changing
                                                  the executive order after that
                                                  are unclear.


 DOD07 Create a Healthy and Safe Environment for DOD Activities
--------------------------------------------------------------------------------
DOD07.02  DOD should streamline the            1
          clean-up process so that sites
          may be remediated quickly
          without prolonged periods of
          study.

DOD07.03  DOD should develop an                1
          environmental technology
          policy that is based on
          service users' environmental
          requirements and embodies the
          DOD environmental strategy.

DOD07.04  DOD should develop a more            1
          effective pollution prevention
          program.

DOD07.05  DOD should work with EPA             1
          regional offices and state and
          local environmental
          organizations to develop joint
          implementation approaches.


 DOD08 Establish a Defense Quality Workplace
--------------------------------------------------------------------------------
DOD08.01  DOD should establish a top           1
          leadership and management
          structure that furthers Total
          Quality Management (TQM)
          principles.


 DOD10 Give DOD Installation Commanders More Authority and Responsibility
Over Installation Management
--------------------------------------------------------------------------------
DOD10.04  DOD should institute                 1
          procedures that require a
          financial impact assessment of
          major policy decisions.

DOD10.09  DOD should empower                   1
          installation commanders to
          make best value purchases.

DOD10.13  Legislation should be enacted        1
          to permit DOD to use
          simplified acquisition
          procedures for contracts
          between $25,000 and $100,000.

DOD10.16  DOD should reform contract           1
          protest procedures.

DOD10.18  The Federal Acquisition              1
          Regulation (FAR) should be
          amended to permit purchasing
          from large businesses based on
          cost and quality of items
          required.

DOD10.20  DOD should issue unit cost           1
          guidance.

DOD10.21  DOD should change applicable         1
          DOD regulations to allow stock
          fund managers to include in
          their customers' surcharge the
          costs for procuring,
          warehousing, packing, crating,
          and handling.


 DOE01 Improve Environmental Contract Management
--------------------------------------------------------------------------------
DOE01.08  For those environmental              3  DOE is working on mechanisms
          services that are paid for on           to reduce its backlog of
          a cost-plus-award or a cost-            contract audits; however, a
          plus-fixed fee award basis,             backlog still exists.
          DOE should perform systematic
          and timely audits on costs
          incurred by every contractor
          to verify that costs charged
          are legitimate and
          reimbursable.

DOE01.09  DOE should reevaluate the            6  Reevaluating the merits of
          merits of requiring                     requiring environmental
          environmental restoration               restoration contractors to
          contractors to hire as many of          hire former management and
          the former management and               operating contractor staff at
          operating contractors' staff,           their former salary levels is
          at current salary and benefit           no longer an issue because
          levels, as they can                     separate contracts for
          effectively employ.                     environmental restoration
                                                  management are no longer
                                                  awarded. According to an
                                                  official in the Environmental
                                                  Management Office of
                                                  Acquisition Management, the
                                                  new "integrating contractors"
                                                  that now have responsibility
                                                  for managing the overall
                                                  program are required only to
                                                  give former employees the
                                                  right of first refusal and are
                                                  not required to offer such
                                                  employees the same levels of
                                                  salaries and benefits they
                                                  received under the previous
                                                  contractor. Thus, the spirit
                                                  and intent of the original
                                                  action item are being
                                                  satisfied.

DOE01.10  DOE should examine options to        1
          increase the ratio of federal
          workers to contract employees
          to improve management and
          oversight and control costs.


 DOE03 Make Field Facility Contracts Outcome-Oriented
--------------------------------------------------------------------------------
DOE03.01  Increase the use of                  1
          performance objectives and
          goal-based budgeting when
          establishing funding levels
          for programs and projects.

DOE03.05  Improve the capability of the        3  DOE has developed a general
          financial management systems            plan for implementing the
          used to accumulate data from            actions recommended to improve
          laboratories and weapons                its financial and management
          centers to measure, analyze,            systems and has established
          report, and control spending            pilots for some tasks at
          so that it is uniform,                  various locations. DOE's
          accurate, and received rapidly          actions are based on its May
          for programs and facilities.            1995 report on the capability
                                                  of the financial and business
                                                  systems. According to the
                                                  report, DOE's current
                                                  financial and business systems
                                                  cannot be used to control cost
                                                  because they are based on old
                                                  technology and an outdated
                                                  business model.


 DOE04 Increase Electrical Power Revenues and Study Rates
--------------------------------------------------------------------------------
DOE04.01  The Secretary of Energy should       1
          encourage Power Marketing
          Administrations (PMA) in the
          Southeast, Southwest, Western
          areas, and Bonneville to be
          more aggressive in promoting
          energy conservation programs
          with their subscriber
          utilities.


 DOE05 Strengthen the Federal Energy Management Program (FEMP)
--------------------------------------------------------------------------------
DOE05.01  Upgrade the Director of FEMP
          to Deputy Assistant Secretary
          1 status.

DOE05.02  Support a priority status for        1
          FEMP's budget request for
          fiscal years 1994 and 1995.

DOE05.03  Promptly hire new FEMP staff         6  Although action to hire new
          for fiscal year 1994.                   FEMP staff has been fully
                                                  implemented--having taken
                                                  place on March 20, 1995--it
                                                  was not completed within the
                                                  designated time frame for
                                                  fiscal year 1994.


 DOE06 Redirect Energy Laboratories to Post-Cold War Priorities
--------------------------------------------------------------------------------
DOE06.05  Laboratory managers should           1
          also be encouraged to work
          more closely with the private
          sector on high-priority
          research and development needs
          and to bid for contract or
          cooperative work on such
          projects.


 DOI02 Redefine Federal Oversight of Coal Mine Regulation
--------------------------------------------------------------------------------
DOI02.03  By January 1995, the Office of       1
          Surface Mining Reclamation and
          Enforcement (OSM) should
          review its organizational
          structure based on the review
          of its oversight role and
          submit a plan to close or
          downsize offices with
          declining workloads, eliminate
          unnecessary management levels,
          and adjust its field and
          Washington, D.C., staffing
          ratio.

DOI02.05  Future appropriation bills           3  In its budget submissions for
          should remove language                  fiscal years 1995 and 1996,
          requiring "per state limits"            OSM proposed deleting "per
          on abandoned mine land (AML)            state limits" on AML emergency
          emergency funds. States should          funds. Congress retained the
          be required to assume                   limits in fiscal year 1995 and
          responsibility for                      as of January 16, 1996, had
          administering their AML                 not acted on the fiscal year
          emergency programs.                     1996 budget. (Note: On April
                                                  25, 1996, the fiscal year 1996
                                                  continuing resolution
                                                  appropriating funds for DOI
                                                  was enacted and retained the
                                                  "per state limits.")

DOI02.06  The Surface Mining Control and       3  In its budget justification
          Reclamation Act should be               for fiscal year 1996, OSM
          amended so that the Rural               requested no funds for the
          Abandoned Mine Program is               program, which in effect would
          administered by the states.             end federal program
                                                  administration for fiscal year
                                                  1996 but would not eliminate
                                                  federal administration of the
                                                  program in subsequent fiscal
                                                  years if additional funds were
                                                  appropriated for the program
                                                  in those years. However,
                                                  Congress as of January 16,
                                                  1996, had not acted on the
                                                  fiscal year 1996 budget.


 DOI03 Establish a National Spatial Data Infrastructure
--------------------------------------------------------------------------------
DOI03.01  The leadership role of the           1
          Federal Geographic Data
          Committee (FGDC) should be
          strengthened beyond its
          original charter of OMB
          Circular A-16. Federal
          agencies should be instructed
          to participate fully in FGDC
          activities by providing
          adequate staff support and
          high-level committee
          representation.

DOI03.03  FGDC should submit a schedule        3  A working group, which was
          and funding plan to OMB by              convened to develop a
          September 1994 for completing           framework (core) data plan,
          the collection and production           decided that it was premature
          of national core geospatial             to submit a schedule and
          data by January 2000.                   funding plan to OMB because
                                                  thousands of organizations
                                                  collect data that might be
                                                  considered part of the
                                                  framework. Instead, the group
                                                  generated a concept for
                                                  developing a National Digital
                                                  Geospatial Data Framework that
                                                  is being tested in
                                                  approximately 24 pilot areas
                                                  around the country. The
                                                  expectation is that by the end
                                                  of 1996, there will be a
                                                  guidebook for database
                                                  development that can be used
                                                  by federal, state, local, and
                                                  private agencies to collect
                                                  standardized data that are
                                                  useful to a multitude of
                                                  organizations.

DOI03.04  FGDC should identify thematic        2  Under OMB Circular A-16, a
          data sets of critical national          dozen subcommittees, each led
          importance and establish                by a different federal agency,
          priorities, standards, and a            have been assigned
          funding plan by September               responsibilities for
          1994, based on partnerships             developing standards for data
          for collection of these data.           on different themes. The
                                                  subcommittees are in various
                                                  phases, ranging from
                                                  developing standards to
                                                  incorporating comments on
                                                  standards that have been
                                                  circulated nationally.

DOI03.05  By June 1994, FGDC should            6  As established by FGDC, the
          create a geospatial data                clearinghouse is an evolving,
          clearinghouse, which will use           distributed, electronically
          existing computer networks, to          connected network of
          provide public access to                geospatial data producers,
          spatial data.                           managers, and users. It is not
                                                  a central repository where
                                                  data sets are stored. While
                                                  the goal of June 1994 was not
                                                  met, as of February 1996, all
                                                  federal agencies on the
                                                  national spatial data
                                                  infrastructure (NSDI) had
                                                  established a presence on the
                                                  Internet. Some were making
                                                  major data sets electronically
                                                  available while others were
                                                  making metadata available.
                                                  Numerous states, many in
                                                  partnership projects on NSDI
                                                  with FGDC, have begun to serve
                                                  data electronically as well.


 DOI05 Obtain a Fair Return for Federal Resources
--------------------------------------------------------------------------------
DOI05.01  The administration should            3  A final rule on administrative
          establish a formula for                 reform of the grazing program
          grazing of federal land at a            was issued on February 22,
          fee level that is fair to both          1995. However, the rule did
          the taxpayers and the                   not include a new formula for
          livestock permittees.                   grazing fees. The rule stated
                                                  that enacting appropriate fees
                                                  for grazing would be left to
                                                  Congress.


 DOI07 Improve the Land Acquisition Policies of DOI
--------------------------------------------------------------------------------
DOI07.01  The Secretaries of DOI and           1
          USDA and the Director of OMB
          should modify the process for
          determining land acquisition
          priorities and modify current
          procedures.

DOI07.02  DOI should issue a series of         1
          policy directives for the
          National Park Service, Bureau
          of Land Management, and the
          Fish and Wildlife Service to
          address the issue outlined in
          DOI's 1992 Inspector General
          report and clarified in the
          Solicitor's opinion of July
          30, 1992.


 DOI08 Improve Minerals Management Service's Royalty Collections
--------------------------------------------------------------------------------
DOI08.01  By fiscal year 1995, the             1
          Royalty Management Program
          should develop and implement
          additional computer programs
          to analyze and verify
          transactions across the lease
          population.

DOI08.04  Current inconsistencies in           1
          liability issues should be
          resolved by DOI and a uniform
          policy developed in early
          1994.

DOI08.05  The reinvention laboratory,          1
          which has been established to
          study royalty reporting
          simplification, should
          evaluate the potential for
          greater efficiency,
          effectiveness, cost savings,
          and additional revenue from
          new reporting procedures.


 DOI09 Establish a System of Personnel Exchanges in DOI
--------------------------------------------------------------------------------
DOI09.01  DOI should implement a system        1
          of in-house contracts in early
          1994. The in-house contracts
          should assign individuals with
          special skills to work as
          consultants to other bureaus.

DOI09.02  DOI should implement a system        1
          of temporary interbureau
          details and personnel
          exchanges in early 1994.

DOI09.03  DOI should facilitate                1
          personnel exchanges and
          interbureau cooperation
          through an improved internal
          communication system.


 DOI10 Consolidate Administrative and Programmatic Functions in DOI
--------------------------------------------------------------------------------
DOI10.01  Within 6 months, all DOI             6  Although DOI identified
          bureaus and offices should              parallel administrative,
          identify parallel                       programmatic, and public
          administrative, programmatic,           outreach functions in areas
          and public outreach functions           where offices are collocated,
          in areas where offices are              the action item was not fully
          collocated.                             implemented within the
                                                  designated time frame. DOI
                                                  completed its streamlining
                                                  plan in October 1994, and the
                                                  Field Structure Working Group
                                                  completed its study in March
                                                  1995. While these initiatives
                                                  addressed the NPR issues, they
                                                  were not completed within 6
                                                  months of the NPR final report
                                                  as recommended.


 DOI11 Streamline Management Support Systems in DOI
--------------------------------------------------------------------------------
DOI11.01  DOI should implement standard        6  DOI completed five of the
          practices for electronic                seven components of this
          communications and an                   action item. However, it did
          agencywide data network                 not believe that two of the
          strategy with the following             seven components of this
          steps: (1) agree upon a                 action item were appropriate.
          conceptual framework                    DOI's rationale for not acting
          identifying networks, common            on these two components
          databases (e.g., payroll), and          appears reasonable.
          a network architecture; (2)             Specifically, the National
          establish ways to share data            Institute of Standards and
          across bureaus; (3) require             Technology (NIST) withdrew its
          data centers to use compatible          requirement to use the
          communications software; (4)            Government Open Systems'
          require bureaus to optimize             Interconnection Profiles
          communications capacity (e.g.,          (GOSIP) because the profiles
          T-1 circuit bandwidth and               were outdated and overtaken by
          video-conferencing room time);          events with the popularity of
          (5) shift to Government Open            the Internet standards. In
          Systems' Interconnection                addition, the vendor community
          Profiles; (6) standardize               did not provide follow-up
          imaging systems across DOI for          products that complied with
          transmission of financial               GOSIP. Therefore, DOI
          data, land records, rules and           determined that this component
          regulations, library                    was no longer valid. Also, DOI
          materials, and basic review             determined that it could not
          documents to reduce paperwork           implement the component of
          in the workplace; and (7)               standardizing imaging systems
          standardize telephone system            because (1) there are no
          capability across bureaus to            governmentwide imaging systems
          provide timesaving components           standards; and (2) its
          and to improve quality of               current, specialized imaging
          direct communication.                   systems did not lend
                                                  themselves to departmentwide
                                                  standardization.

DOI11.02  DOI should ensure that its           1
          data network initiatives all
          tie into a departmental data
          network.

DOI11.07  DOI should streamline the            3  DOI studied establishing a
          processing of bills by                  separate appropriation account
          establishing a separate                 to pay common costs but
          appropriation account within            decided in July 1994 not to do
          DOI to pay common costs rather          so. It has, however, made
          than issuing separate billings          billing improvements by
          to each bureau.                         billing costs quarterly
                                                  instead of monthly.

DOI11.10  DOI should identify all              1
          parties that may be interested
          in a rulemaking and involve
          them early in the process.


 DOI12 Create a New Mission for the Bureau of Reclamation
--------------------------------------------------------------------------------
DOI12.01  By the beginning of fiscal           1
          year 1995, the Bureau of
          Reclamation should develop a
          new mission that assumes a
          leadership role in western
          water policy and focuses on
          water management functions.


 DOI13 Improve the Federal Helium Program
--------------------------------------------------------------------------------
DOI13.03  The Bureau of Mines should           2  The Bureau of Mines' helium
          reduce costs and increase               program was officially
          efficiencies by discontinuing           transferred to the Bureau of
          operations, such as small               Land Management (BLM) by an
          cylinder filling, maintenance,          order of the Secretary of the
          and testing, and other                  Interior, dated March 12,
          nonrevenue-producing                    1996. While the helium program
          operations.                             has been downsized, it will
                                                  continue to operate but within
                                                  BLM. Selling, filling,
                                                  maintaining, and testing of
                                                  small cylinders of grade A
                                                  helium have been discontinued.
                                                  However, the Helium Field
                                                  Office has not yet identified
                                                  or discontinued "other
                                                  nonrevenue-producing
                                                  operations."


 DOI14 Enhance Environmental Management by Remediating Hazardous Material
Sites
--------------------------------------------------------------------------------
DOI14.03  DOI should establish a legal         6  Although DOI did not establish
          strike force by the end of              a "legal strike force" because
          1994 to address barriers to             of budget constraints, in 1994
          cleanup.                                it instead established a
                                                  coordination group within the
                                                  Solicitor's office that meets
                                                  monthly to address barriers to
                                                  cleanup.


 DOJ01 Improve the Coordination and Structure of Federal Law Enforcement
Agencies
--------------------------------------------------------------------------------
DOJ01.03  The Director of Law                  6  The Department of Justice
          Enforcement should reinvent             (DOJ) has established the
          federal law enforcement to              Office of Investigative Agency
          ensure activities are                   Policies (OIAP), whose
          coordinated and critical                Director rotates every 4
          resources are shared.                   years. OIAP currently is
                                                  headed by Federal Bureau of
                                                  Investigation (FBI) Director
                                                  Freeh and coordinates law
                                                  enforcement efforts for all
                                                  DOJ law enforcement entities,
                                                  including the U.S. Marshals
                                                  Service, Bureau of Prisons,
                                                  Drug Enforcement
                                                  Administration, FBI,
                                                  Immigration and Naturalization
                                                  Service, and U.S. Attorney
                                                  offices. This coordination
                                                  includes sharing of critical
                                                  resources, such as technology
                                                  and intelligence information.


 DOJ04 Improve DOJ's Debt Collection Efforts
--------------------------------------------------------------------------------
DOJ04.01  Congress should amend the            1
          Federal Debt Recovery Act to
          authorize DOJ to use private
          debt collection counsel in all
          districts where appropriate.

DOJ04.02  DOJ should be authorized by          1
          Congress to retain up to 1% of
          amounts collected through
          litigating civil debt
          collection claims under
          $500,000.

DOJ04.03  Congress should authorize DOJ        1
          to credit the DOJ Working
          Capital Fund up to 3% of all
          amounts collected through DOJ
          civil debt collection
          litigation activities to be
          used only for paying the costs
          of processing and tracking
          such litigation.


 DOJ05 Improve the Bureau of Prisons' Education, Job Training, and
Financial Responsibilities Programs
--------------------------------------------------------------------------------
DOJ05.01  DOJ should help inmates              2  According to BOP, the total
          working in the Bureau of                number of inmates tested for
          Prisons (BOP) labor programs            the general equivalency
          complete a GED degree.                  diploma (GED) decreased from
                                                  7,950 in FY 94 to 7,712 (-3%)
                                                  in FY 95. However, at the same
                                                  time, the number who passed
                                                  the test increased from 5,488
                                                  to 5,814 (5.9%). Overall, the
                                                  pass rate for those tested
                                                  increased from 69% to 75.4%.
                                                  For FY 1995, BOP exceeded its
                                                  own target of a 70% pass rate.
                                                  However, BOP provided no data
                                                  on the number of inmates who
                                                  do not have a high school
                                                  diploma or its equivalent.
                                                  Therefore, it was not possible
                                                  to determine if BOP has
                                                  succeeded in increasing GED
                                                  program participation,
                                                  although the pass rate of
                                                  those who participate has
                                                  improved.

DOJ05.03  BOP should expand use of             1
          minimum security prison labor.

DOJ05.04  BOP should charge a nominal          3  BOP is developing a
          user fee for prison health              legislative package for
          care.                                   submission to DOJ by June
                                                  1996, which would grant BOP
                                                  authority to implement a user
                                                  fee program. After legislation
                                                  for BOP health care is
                                                  approved, BOP plans to revisit
                                                  implementation of the
                                                  recommendation.


 DOJ06 Improve the Management of Federal Assets Targeted for Disposition
--------------------------------------------------------------------------------
DOJ06.01  The Departments of the               1
          Treasury and Justice should
          oversee the implementation of
          memorandums of understanding
          associated with Treasury's new
          Asset Forfeiture Fund.

DOJ06.02  Agencies should allow all            1
          Asset Forfeiture Fund's
          administrative costs to be
          paid from asset sales
          receipts.


 DOJ08 Reinvent the Immigration and Naturalization Service's (INS)
Organization and Management
--------------------------------------------------------------------------------
DOJ08.03  The INS Commissioner should          1  Although INS reorganized on
          restructure the organization            October 1, 1994, with the
          to better meet its                      intent of better meeting its
          responsibilities.                       responsibilites, not enough
                                                  time has passed, and no
                                                  evaluation has been done that
                                                  would permit a conclusion that
                                                  the objectives of the
                                                  reorganization have been
                                                  achieved.

DOJ08.04  The INS Comissioner should           1
          issue strategic planning
          guidance that includes
          appropriate performance
          standards and output measures.


 DOJ09 Make DOJ Operate More Effectively as the U.S. Government Law Firm
--------------------------------------------------------------------------------
DOJ09.01  DOJ should develop a                 2  According to the Deputy
          departmentwide case management          Director of DOJ's Performance
          system capable of tracking              Review Team, DOJ's
          case status and staff                   Departmental Case Management
          productivity.                           system was implemented in July
                                                  1995. The project was not
                                                  expanded to track staff
                                                  productivity because of
                                                  funding constraints.

DOJ09.03  DOJ should establish temporary       1
          12-month details between
          headquarters and U.S.
          Attorney's Offices to cross-
          train staff.

DOJ09.04  DOJ should include                   1
          representatives from both
          headquarters' legal divisions
          and U.S. Attorney's Offices in
          department litigation working
          groups to foster greater
          cooperation.

DOJ09.05  DOJ should conduct client            1
          surveys to improve customer
          service.

DOJ09.06  DOJ should encourage its             1
          federal agency clients to
          avail themselves of Special
          Assistant U.S. Attorney
          status.


 DOJ10 Improve White-Collar Fraud Civil Enforcement
--------------------------------------------------------------------------------
DOJ10.01  The Attorney General should          1
          emphasize civil fraud recovery
          as a national priority.

DOJ10.02  DOJ should lead an interagency       1
          health care fraud prevention
          team.

DOJ10.03  Legislation should be enacted        1
          authorizing DOJ to retain a
          percentage of U.S. Attorney's
          Offices civil fraud recoveries
          to pay for the cost of
          creating civil fraud recovery
          teams.

DOJ10.04  DOJ should include attorneys         1
          from its Civil Division in the
          white-collar fraud civil
          enforcement working group.


 DOJ16 Develop Lower Cost Solutions to Federal Prison Space Problems
--------------------------------------------------------------------------------
DOJ16.02  BOP should expand the use of         1
          alternative sanctions, such as
          halfway houses, home detention
          with electronic monitoring,
          and supervised home release
          for appropriate offenders.


 DOL03 Expand Negotiated Rulemaking and Improve Up-Front Teamwork on
Regulations
--------------------------------------------------------------------------------
DOL03.02  DOL should employ a team             1
          concept in the development of
          rules.


 DOL05 Automate the Processing of the Employee Retirement Income
Security Act of 1974 (ERISA) Annual Financial Reports (Form 5500) to
Cut Costs and Delays in Obta
--------------------------------------------------------------------------------
DOL05.03  IRS should revise its                1
          regulations to facilitate
          electronic filing of Form
          5500-series data.


 DOL13 Integrate Enforcement Activities Within the Department of Labor
--------------------------------------------------------------------------------
DOL13.07  DOL should select one or two         1
          priority areas to receive a
          full court press.


 DOL19 Transfer the Veterans' Employment and Training Service to the
Employment and Training Administration
--------------------------------------------------------------------------------
DOL19.02  DOL should explore                   1
          possibilities for improving
          employment delivery and
          customer choice of service
          provider by requiring states
          to make delivery of veterans'
          employment and training
          service competitive.


 DOL20 Reduce Federal Employees' Compensation Act (FECA) Fraud
--------------------------------------------------------------------------------
DOL20.01  FECA and section 1920 of title       6  P.L. 103-333, the 1995
          18, United States Code, should          Departments of Labor, Health
          be amended to make it a felony          and Human Services, and
          to knowingly and willfully              Education, and Related
          make a false or misleading              Agencies Appropriations Act,
          statement or representation in          achieved the goals of this
          connection with the                     action item by amending
          application for or receipt of           section 1920 of title 18,
          FECA benefits.                          United States Code. FECA was
                                                  not amended.

DOL20.02  Section 8102(a) of title 5,          6  The goals of this action item
          United States Code, should be           were achieved by P.L. 103-
          amended to provide that an              333, which added a new section
          individual convicted of a               8148 to title 5, United States
          violation under the amended             Code, rather than by amending
          statute, or other fraud                 section 8102(a).
          related to FECA, forfeits all
          entitlement to any benefits as
          of the date of conviction.

DOL20.03  Section 8116 of title 5,             6  The goals of this action item
          United States Code, should be           were achieved by P.L. 103-
          amended to provide no benefits          333, which added a new section
          to an individual confined in a          8148 to title 5, United States
          jail, prison, or other penal            Code, rather than by amending
          institution or correctional             section 8116.
          facility if that individual's
          conviction constituted a
          felony under applicable law.


 DOS02 Integrate the Foreign Affairs Resource Management Process
--------------------------------------------------------------------------------
DOS02.01  The Secretary of State, in           2  Effective use of resources
          conjunction with the National           requires a strategic planning
          Security Council and OMB,               and budgeting process that
          should reform the interagency           allocates resources to the
          foreign policy resource                 most important priorities.
          management process for Budget           Current U.S. government
          Function 150.                           processes for allocating
                                                  resources to U.S. foreign
                                                  affairs objectives are
                                                  fragmented among many
                                                  different agencies and
                                                  congressional committees. The
                                                  Secretary of State established
                                                  the Office of Resources,
                                                  Plans, and Policy to assist
                                                  the State Department and other
                                                  Function 150 agency heads in
                                                  developing policies, plans,
                                                  and programs to achieve
                                                  foreign policy goals and
                                                  enable the Secretary to
                                                  present an integrated
                                                  international affairs
                                                  (Function 150) resource budget
                                                  request to OMB and other
                                                  government agencies.
                                                  Nonetheless, the Secretary
                                                  lacks authority to implement
                                                  further reform and does not
                                                  make resource allocation
                                                  decisions for other agencies
                                                  in the Function 150 account.


 DOS05 Reduce Mission Operating Costs
--------------------------------------------------------------------------------
DOS05.02  The State Department should          2  The State Department conducts
          review all Marine Security              periodic reviews of security
          Guard detachments and                   needs in regions throughout
          deactivate them where                   the world, but it has not
          possible.                               reviewed all Marine Security
                                                  Guard detachments. Since
                                                  September 1993, the State
                                                  Department has deactivated 12
                                                  detachments. It has activated
                                                  or reactivated two in the same
                                                  period. At least one other
                                                  post is under review for
                                                  deactivation.


 DOS06 Consolidate U.S. Nonmilitary International Broadcasting
--------------------------------------------------------------------------------
DOS06.01  Legislation should be enacted        1
          to consolidate U.S.
          international broadcasting
          under the U.S. Information
          Agency.


 DOS08 Improve the Collection of Receivables
--------------------------------------------------------------------------------
DOS08.01  The State Department should          2  Since October 1, 1993, the
          ensure that overseas medical            Office of Medical Services has
          expenses are accurately                 issued individual obligation
          identified and reported by              numbers for each transaction
          each embassy.                           so that it can track medical
                                                  expenditures and identify
                                                  funds reimbursed to its
                                                  allotment. In addition, the
                                                  Bureau of Finance and
                                                  Management Policy developed
                                                  accounting and debt collection
                                                  procedures for funds that have
                                                  been expended on employees'
                                                  overseas medical expenses. The
                                                  Bureau sends notices reminding
                                                  employees to file for
                                                  reimbursement from their
                                                  insurance companies. At the
                                                  same time, the Bureau opens an
                                                  account receivable in the
                                                  employees' names. If employees
                                                  do not file for reimbursement
                                                  from their insurance companies
                                                  and reimburse the State
                                                  Department within a specified
                                                  amount of time, the State
                                                  Department withholds money
                                                  from their paychecks. These
                                                  actions resulted in
                                                  collections of over $1 million
                                                  in fiscal year 1994. However,
                                                  the Department is circulating
                                                  revisions to the Foreign
                                                  Affairs Manual for internal
                                                  review. Further evaluations
                                                  are needed to determine if all
                                                  embassies are following
                                                  procedures.


 DOS09 Change United Nations (U.N.) Administrative and Assessment
Procedures
--------------------------------------------------------------------------------
DOS09.01  Seek U.N. member support for         1
          establishment of a
          consolidated oversight and
          accountability mechanism, such
          as an Office of Inspector
          General.


 DOT07 Examine User Fees for International Overflights
--------------------------------------------------------------------------------
DOT07.01  DOT should conduct a cost            1
          allocation study to determine
          whether (1) foreign carriers
          who cross U.S. airspace should
          pay fees and whether (2)
          direct user fees should be
          introduced. If so, DOT should
          propose legislation and work
          with Congress.


 DOT08 Increase Federal Aviation Administration (FAA) Fees for Inspection
of Foreign Repair Facilities
--------------------------------------------------------------------------------
DOT08.01  DOT should increase the fees         1
          FAA charges for certification
          and surveillance of foreign
          repair facilities.


 DOT10 Establish a Public-Private Consortium to Develop an Aeronautical
Telecommunications Network
--------------------------------------------------------------------------------
DOT10.01  DOT should create a public-          1
          private consortium under a
          cooperative agreement with
          industry to develop an
          Aeronautical
          Telecommunications Network.


 DOT11 Improve Intermodal Transportation Policy Coordination and
Management
--------------------------------------------------------------------------------
DOT11.01  DOT should institute a               1
          strategic planning process to
          promulgate national,
          integrated transportation
          policies.


 DOT12 Develop an Integrated National Transportation Research and
Development Plan
--------------------------------------------------------------------------------
DOT12.01  DOT should develop an                1
          integrated national
          transportation plan that
          considers specific and
          intermodal transportation
          needs.

DOT12.02  The President should direct a        1
          transportation-related
          research and development (R&D)
          focal point to be established
          within the federal government.

DOT12.03  DOT should designate an R&D          1
          technology focal point in the
          Office of the Secretary.

DOT12.04  DOT should develop a                 1
          departmentwide R&D policy and
          an integrated strategic plan.


 DOT13 Create and Evaluate Telecommuting Programs
--------------------------------------------------------------------------------
DOT13.01  DOT should work with other           1
          federal agencies to implement
          a telecommuting program for
          DOT employees and evaluate
          transportation-related
          behavior and other topics
          requiring research.


 DOT15 Provide Reemployment Rights for Merchant Mariners
--------------------------------------------------------------------------------
DOT15.01  Legislation should be enacted        1
          to provide reemployment rights
          for merchant mariners who are
          called to active duty during a
          war or national emergency.


 DOT19 Rescind Unobligated Earmarks for the Federal Transit Authority (FTA)
New Starts and Bus Program
--------------------------------------------------------------------------------
DOT19.01  Congress should rescind              1
          unobligated earmarks for the
          FTA New Starts and Bus
          program. Balances for 1991 and
          prior, not obligated by
          October 1, 1993, should be
          reconsidered and, if
          appropriate, rescinded.

DOT19.02  Balances for 1992 and earlier        1
          that remain unobligated on
          October 1, 1994, should be
          reconsidered and, if
          appropriate, rescinded by
          Congress.

DOT19.03  Balances for 1993 and earlier        1
          that remain unobligated on
          October 1, 1995, should be
          reconsidered by Congress and,
          if appropriate, rescinded.


 DOT20 Reduce the Annual Essential Air Service Subsidies
--------------------------------------------------------------------------------
DOT20.01  Congress should amend the            1
          Airport Safety and Capacity
          Expansion Act to prohibit
          subsidies to Essential Air
          Service points within 70 miles
          of a hub airport, limit
          subsidies to $200 per
          passenger, and give DOT
          authority to change criteria
          to fit costs to
          appropriations.


 DOT21 Terminate Grant Funding for FAA Higher Education Programs
--------------------------------------------------------------------------------
DOT21.01  Legislation should be enacted        2  Unobligated funds have been
          to terminate the Airway                 rescinded, and FAA is in the
          Science Curriculum and the              process of transferring the
          Collegiate Training Initiative          Airway Science Curriculum
          for Air Traffic Controllers             Program to a private aviation
          grants programs, rescind                association. Although FAA did
          unobligated grant funds, and            not request funding in FY 1996
          phase out FAA's active                  for the Collegiate Training
          involvement in the programs.            Initiative Program, Congress
                                                  appropriated $250,000 in
                                                  grants to one of the
                                                  institutions participating in
                                                  the program. FAA said that the
                                                  Collegiate Training Initiative
                                                  Program, when not subsidized
                                                  by federal funds, is cost-
                                                  effective because it reduces
                                                  the amount of FAA-funded
                                                  training that students will
                                                  need to become air traffic
                                                  controllers.


 DOT22 Assign Office of Motor Carriers (OMC) Field Staff to Improve Program
Effectiveness and Reduce Costs
--------------------------------------------------------------------------------
DOT22.01  DOT should place a geographic        6  According to the Volpe
          information system (GIS) in             National Transportation
          each DOT regional office to             Systems Center, which is a
          merge many national-level               research arm of DOT's Research
          databases with the existing             and Special Projects
          OMC safety data sets.                   Administration, DOT placed GIS
                                                  software in each DOT region.
                                                  However, because of the
                                                  complexity and cost of merging
                                                  databases to allocate staff
                                                  and travel resources in order
                                                  to address safety problems as
                                                  initially envisioned, OMC
                                                  implemented an alternative
                                                  method that accomplishes the
                                                  same objective that is
                                                  described in DOT22.02.

DOT22.02  DOT should develop a resource        6  The Volpe National
          allocation model and integrate          Transportation System Center
          it into GIS to better allocate          said that the same results
          staff and travel budgets.               could be achieved with GIS
                                                  software. However, OMC found
                                                  that GIS was too restrictive
                                                  because it could not include
                                                  all of the factors needed for
                                                  an effective resource
                                                  allocation model. Therefore,
                                                  OMC utilized an alternative
                                                  model, using a delphi
                                                  technique to consolidate input
                                                  from numerous OMC officials.
                                                  The model includes a variety
                                                  of factors, including safety,
                                                  and weights these factors by
                                                  their importance. OMC began
                                                  implementing the model in
                                                  fiscal year 1995. The model
                                                  deploys staff resources among
                                                  regions, where they are needed
                                                  most, thus better utilizing
                                                  travel resources. In addition,
                                                  OMC also implemented
                                                  telecommuting arrangements to
                                                  enable staff to work from a
                                                  home base, which is to
                                                  facilitate a better use of
                                                  travel resources


 DVA03 Eliminate Legislative Budget Constraints to Promote Management
Effectiveness
--------------------------------------------------------------------------------
DVA03.01  Eliminate travel, training,          2  P.L. 104-19 removed the
          and personnel restrictions              restriction on transferring
          (including floors and                   funds from the Medical Care
          ceilings) in the Department of          "Personal Services" account to
          Veterans Affairs (VA) budget            other accounts, and VA's FY
          and authorizing legislation,            1996 appropriation bill also
          and give flexibility to field           would have excluded the
          managers to (a) transfer funds          restriction. Other
          between programs and object             restrictions--including
          classes and (b) obtain                  limitations on travel
          multiyear funding when                  expenditures, reorganizations,
          requested.                              and multiyear funding--remain
                                                  in place.


 DVA04 Streamline Benefits Claims Processing
--------------------------------------------------------------------------------
DVA04.03  The Veterans' Appeals                1
          Improvement Act of 1993 should
          be enacted into law.


 DVA05 Consolidate Department of Defense and Department of Veterans Affairs
Compensation and Retired Pay Programs
--------------------------------------------------------------------------------
DVA05.01  VA and DOD task forces should        2  A VA/DOD work group completed
          jointly examine their                   a study on the consolidation
          disability compensation                 of disability compensation
          adjudication and disbursement           disbursement processes that
          processes, identify potential           identified potential areas for
          areas that can be streamlined           streamlining and
          or consolidated, and                    consolidation. The work group
          expeditiously implement the             concluded that such
          resulting recommendations.              consolidation would not be
                                                  worthwhile and recommended
                                                  other improvements. The work
                                                  group's study did not deal
                                                  with the agencies' disability
                                                  compensation adjudication
                                                  processes, as recommended in
                                                  NPR's action item. Therefore,
                                                  the action item should be
                                                  considered only partially
                                                  implemented.


 DVA06 Enhance VA Cost Recovery Capabilities
--------------------------------------------------------------------------------
DVA06.01  VA should revise its policy to       1
          allow Medical Care Cost
          Recovery (MCCR) funds to be
          used to defray all collection
          costs for all categories of
          Veterans Health Administration
          (VHA) receivables.


 DVA08 Decentralize Decisionmaking Authority to Promote Management
Effectiveness
--------------------------------------------------------------------------------
DVA08.01  VA Central Office and field          1
          managers should jointly
          develop a management policy
          framework for all departmental
          management policy directives.


 DVA10 Serve Veterans and Their Families as Customers
--------------------------------------------------------------------------------
DVA10.02  VA should develop a                  2  VA's Customer Service Plan
          departmentwide policy for               directs its facilities to
          collecting and responding to            collect information about
          veterans' suggestions and               veterans' concerns and
          concerns.                               identifies staff and computer
                                                  resources that will track
                                                  these concerns. The plan
                                                  specifies few mechanisms for
                                                  ensuring that concerns are
                                                  addressed and that problems
                                                  are corrected.

DVA10.03  VA should develop a                  2  VA's Customer Service Plan
          comprehensive approach for              directs that its facilities
          improving its capacity to               conduct customer surveys but
          respond to its customers'               does not establish full
          concerns, inquiries, and                accountability or procedures
          complaints.                             to ensure that concerns are
                                                  addressed.

DVA10.04  VA should develop a                  2  Although the current Secretary
          comprehensive approach for              of Veterans Affairs has
          providing the veterans service          demonstrated his interest in
          organizations (VSO) with a              using VSOs, written policies
          stronger consultative role in           would help ensure that future
          policymaking and                        Secretaries continue to
          decisionmaking.                         consult with VSOs on major
                                                  decisions.


 ED01 Redesign Chapter 1 of the Elementary and Secondary Education Act
--------------------------------------------------------------------------------
ED01.01   Rigidity in the Chapter 1            1
          program should be replaced by
          accountability for results.

ED01.02   The disincentives created by         1
          the use of standardized
          testing should be reversed.

ED01.04   Schools and school districts         1
          should be permitted to use
          some Chapter 1 funds to
          identify needed social
          services and develop
          cooperative arrangements with
          the other agencies that can
          provide those services.


 ED02 Reduce the Number of Programs the Department of Education Administers
--------------------------------------------------------------------------------
ED02.02   Legislation should be enacted        1
          to consolidate the Drug Free
          Schools and Communities Act
          and the proposed Safe Schools
          Act programs into a single,
          comprehensive, flexible
          program for safe and drug-
          free schools.


 ED05 Streamline and Improve the Department of Education's Grants Process
--------------------------------------------------------------------------------
ED05.01   Legislation should be enacted        6  Section 431 was not repealed,
          to repeal section 431 of the            but major streamlining
          General Education Provisions            revisions to the rulemaking
          Act.                                    process were enacted in P.L.
                                                  103-382, Improving America's
                                                  Schools Act of 1994.

ED05.06   The Department of Education          1
          should develop materials to
          explain better to customers
          how the department reviews
          applications so that
          applicants have a better
          understanding of what happens
          to an application once it
          reaches the department.

ED05.08   The Department of Education          1
          should initiate immediate
          steps to further standardize
          the negotiation process
          through staff training.

ED05.09   The Department of Education          2  The process has been speeded
          should notify applicants of             up, but there is no evidence
          the status of their                     that applicants receive
          applications and funding as             notification early enough to
          early as possible to help               pursue other funding.
          applicants plan and, if
          necessary, seek alternative
          funding.


 ED07 Simplify and Strengthen Institutional Eligibility and Certification
for Participation in Federal Student Aid
--------------------------------------------------------------------------------
ED07.03   Section 435(m)(1)(B) of the          2  We agree that the action item
          Higher Education Act of 1965            is substantially completed and
          should be amended to avoid the          that further action is
          effect of the interpretation            improbable. With legislative
          of the existing statute made            changes made in 1993, the
          in recent court decisions. The          rules were relaxed to allow
          amendment should remove                 schools to review loan
          allegations of improper                 servicing records before the
          servicing and collection of             Department of Education
          loans as a basis for                    determinations became final.
          contesting the accuracy of              But these changes did not
          cohort default rates.                   eliminate a school's ability
                                                  to contest the accuracy of its
                                                  cohort default rate because of
                                                  improper servicing or
                                                  collections of loans. No
                                                  further congressional action
                                                  is expected on the topic.


 ED11 Build a Professional, Mission-Driven Structure for Research
--------------------------------------------------------------------------------
ED11.01   The upcoming reauthorization         2  Only the action item to create
          of Office of Educational                an advisory board was enacted.
          Research and Improvement
          (OERI) should include several
          of the central recommendations
          from the National Academy of
          Sciences report. These
          include: (1) A stable and
          broad-based advisory board--
          including outstanding
          researchers, teachers,
          principals, parents, and state
          and local officials--should be
          established and charged with
          guiding the agenda-setting
          process of OERI. (2) The board
          should identify procedures for
          contracts and grant peer-
          review panels that ensure that
          research merit and
          programmatic merit of
          proposals are judged only by
          those with the appropriate
          professional expertise. (3)
          The currently fragmented
          education research structure
          (centers, labs,
          clearinghouses, etc.) and the
          functional division of
          research funding (institution-
          based, individual, etc.)
          should be replaced as it
          becomes feasible by a very few
          education R&D institutes
          established after the model of
          the National Institutes of
          Health. Each should target a
          specific problem area with a
          sustained program of R&D that
          includes field-initiated
          efforts, institutionally based
          R&D, and special projects.
          These institutes should be
          charged with conducting high-
          quality R&D in support of the
          national education goals. (4)
          A Reform Assistance Office
          should be established to
          coordinate the integration and
          translation of research into
          reform assistance efforts. (5)
          OERI should report research
          findings directly to
          streamline its work and
          minimize opportunities for
          political pressure.


 ED12 Develop a Strategy for Technical Assistance and Information
Dissemination
--------------------------------------------------------------------------------
ED12.02   The Department of Education          1
          should create multipurpose
          technical assistance centers
          that serve several programs
          and focus on a variety of
          issues, in contrast to those
          related to specific programs.

ED12.04   The Department of Education          1
          should establish the
          laboratories as institutions
          directed toward assisting
          state and local education
          agencies as they plan and
          implement systemic reform.


 ENV02 Develop Cross-Agency Ecosystem Planning and Management
--------------------------------------------------------------------------------
ENV02.03  Conduct management and budget        1
          reviews for the ecosystem
          management projects as part of
          the fiscal year 1995 budget
          process.

ENV02.04  Establish regional ecosystem         1
          management teams for each of
          the cross-agency ecosystem
          management projects.


 ENV03 Increase Energy and Water Efficiency
--------------------------------------------------------------------------------
ENV03.01  Issue a directive on energy          1
          and water efficiency in
          federal facilities.

ENV03.02  Propose legislation to allow         1
          DOD to retain savings
          generated through water
          efficiency projects.


 ENV04 Increase Environmentally and Economically Beneficial Landscaping
--------------------------------------------------------------------------------
ENV04.01  Issue a directive to require         1
          the use of environmentally
          beneficial landscaping at
          federal facilities and
          federally funded projects,
          where appropriate.


 EOP01 Delegate Routine Paperwork Review to the Agencies and Redeploy OMB's
Resources More Effectively
--------------------------------------------------------------------------------
EOP01.01  OMB should reduce the federal        1
          paperwork burden through
          programmatic reviews of the
          cumulative impact of the
          paperwork burden on categories
          of respondents.

EOP01.02  OMB should employ delegations        1
          of authority and other
          mechanisms to reduce
          unnecessary paperwork burdens
          and manage useful information.

EOP01.03  OMB and other federal agencies       1
          should make greater use of
          public opinion to evaluate
          paperwork burden reduction
          efforts.


 EOP04 Improve Federal Advisory Committee Management
--------------------------------------------------------------------------------
EOP04.02  OMB should establish goals to        1
          stabilize the number of
          advisory committees for the
          next 5 years and to reduce
          advisory committee operations
          costs by 5 percent.


 EOP05 Reinvent OMB's Management Mission
--------------------------------------------------------------------------------
EOP05.03  OMB should work with agencies        1
          to develop a system for "red-
          flagging" and correcting
          special high-risk situations.


 EOP09 Establish a Customer Service Bureau in the Executive Office of the
President (EOP)
--------------------------------------------------------------------------------
EOP09.01  The Office of Administration         1
          should establish a small, one-
          stop-shopping Customer Service
          Bureau to increase the
          effectiveness of
          administrative support within
          EOP.


 EOP12 Improve Administrative Processes
--------------------------------------------------------------------------------
EOP12.01  EOP should modernize and             1
          streamline its mail processing
          operation.

EOP12.03  OA should modernize its supply       1
          management operations by
          further implementing and
          upgrading its baseline
          automated supply system.

EOP12.04  OA should create one-stop-           1
          shopping to meet publishing
          and printing needs for EOP
          agencies.


 EPA01 Improve Environmental Protection Through Increased Flexibility for
Local Governments
--------------------------------------------------------------------------------
EPA01.02  The Environmental Protection         1
          Agency (EPA) should convene a
          series of town meetings across
          the United States with
          environmental and other
          citizen groups and local
          officials to ensure that
          outside input is considered
          before regulatory reform
          recommendations are finalized.

EPA01.03  EPA should establish a pilot         1
          project that will assist one
          community to assess its
          environmental and community
          health risks in directing
          resources to priority
          problems.


 EPA02 Streamline EPA's Permit Program
--------------------------------------------------------------------------------
EPA02.03  EPA should identify, by June         6  In July 1994, EPA established
          1994, statutes that prevent             the Permits Improvement Team
          flexibility in permitting and           to improve environmental
          report to the Administrator             permitting processes. In
          for follow-up action.                   January 1995, the team briefed
                                                  the EPA Deputy Administrator
                                                  on its activities, including
                                                  planned efforts to identify
                                                  barriers to streamlining
                                                  permits and to suggest
                                                  appropriate response actions.
                                                  In October 1995, the team
                                                  published for review and
                                                  comment a final draft concept
                                                  paper. The paper (1) discussed
                                                  statutes that the team
                                                  reviewed to identify barriers
                                                  to flexibility in permitting
                                                  and (2) presented a new
                                                  approach to environmental
                                                  permitting. As of February
                                                  1996, the draft concept paper
                                                  was undergoing final agency
                                                  review.

EPA02.04  EPA should develop a cross-          6  In April and October 1995,
          program permit tracking system          EPA's Permits Improvement
          pilot with one state and one            Team, established by the
          region by June 1994.                    Administrator in July 1994,
                                                  prepared draft concept papers
                                                  that discussed automated
                                                  permit tracking systems
                                                  identified at state and
                                                  regional levels. According to
                                                  agency officials, EPA (1) is
                                                  assessing these systems in
                                                  lieu of developing a separate
                                                  tracking system pilot and (2)
                                                  plans to share the results
                                                  with state and regional
                                                  officials through the National
                                                  Environmental Performance
                                                  Partnership System agreed to
                                                  between EPA and the states in
                                                  May 1995. As of February 1996,
                                                  the team's draft concept paper
                                                  was undergoing final agency
                                                  review.


 EPA03 Shift EPA's Emphasis Toward Pollution Prevention and Away From
Pollution Control
--------------------------------------------------------------------------------
EPA03.08  EPA should work cooperatively        1
          with the Department of
          Agriculture (USDA), the Food
          and Drug Administration, and
          other agencies to develop a
          national strategy to promote
          more efficient use of
          pesticides and fertilizers.

EPA03.09  EPA should develop a plan for        1
          implementing the two pending
          executive orders on pollution
          prevention and recycling so
          that it can carry out its role
          and work jointly with other
          federal agencies, as outlined
          in the executive orders.


 EPA05 Increase Private Sector Partnerships to Accelerate Development of
Innovative Technologies
--------------------------------------------------------------------------------
EPA05.01  EPA should develop an action         6  In December 1994, we reported
          plan with specific milestones,          that the EPA Administrator
          by mid-1994, for improving the          announced the U.S. EPA
          regulatory and statutory                Environmental Technology
          climate for innovative                  Initiative: FY 1994 Program
          technologies.                           Plan and the Technology
                                                  Innovation Strategy as a
                                                  combined action plan for
                                                  developing public-private
                                                  partnerships to accelerate the
                                                  development of environmental
                                                  technologies. We also reported
                                                  that milestones were being set
                                                  for the various projects under
                                                  the action plan. In February
                                                  1996, EPA provided us with
                                                  example project records
                                                  showing specific milestones.

EPA05.03  EPA should develop and promote       1
          a series of monographs to
          assist industry in identifying
          pollution prevention
          opportunities and making
          informed, responsible design
          choices.


 EPA07 Establish Measurable Goals, Performance Standards, and Strategic
Planning Within EPA
--------------------------------------------------------------------------------
EPA07.01  By April 1994, EPA should            1
          prepare measurable internal
          goals to provide direction for
          assessing and redirecting
          existing EPA strategies where
          needed.

EPA07.02  By April 1995, EPA should            1
          draft measurable environmental
          goals for the range of
          environmental problems the
          United States faces.


 EPA08 Reform EPA's Contract Management Process
--------------------------------------------------------------------------------
EPA08.01  EPA should fully implement           1
          performance standards for
          contract management advocated
          by the standing committee, the
          OMB review, and the EPA
          Administrator by January 1994.


 EPA09 Establish a Blueprint for Environmental Justice Through EPA's
Operations
--------------------------------------------------------------------------------
EPA09.01  EPA should develop, by mid-          1
          1994, a blueprint of actions
          that will incorporate
          environmental justice
          considerations into all
          aspects of EPA operations.

EPA09.02  EPA should prepare an annual         1
          report providing analysis of
          the progress it has made
          regarding environmental
          justice and should develop
          appropriate remedies for
          communities that have suffered
          environmental injustice.


 EPA10 Promote Quality Science for Quality Decisions
--------------------------------------------------------------------------------
EPA10.01  EPA should work to establish         1
          guidelines for professional
          development and promotion of
          scientific and technical
          staff.

EPA10.02  EPA should expand the use of         1
          peer review and quality
          assurance procedures to
          promote excellence in science.

EPA10.03  The EPA Administrator should         1
          assess the organizational
          effectiveness and appropriate
          structures of EPA's
          laboratories.

EPA10.04  EPA should develop a plan to         1
          integrate opportunities for
          increased scientific
          communications within and
          outside EPA.


 EPA11 Reorganize EPA's Office of Enforcement
--------------------------------------------------------------------------------
EPA11.01  EPA should implement the             1
          administrator's headquarters
          enforcement reorganization
          proposal.


 FEMA01 Shift Emphasis to Preparing for and Responding to the Consequences
of All Disasters
--------------------------------------------------------------------------------
FEMA01.0  The Federal Emergency                1
1         Management Agency (FEMA)
          should continue to shift
          emphasis to preparation for
          and response to the
          consequences of all disasters.

FEMA01.0  The Director of FEMA should          1
2         review the agency's classified
          responsibilities and ensure
          that they do not detract from
          its unclassified mission of
          general disaster preparedness.
          As part of that review, the
          director should ensure the
          maintenance of a single point
          of contact to manage the
          scaled-down enduring
          constitutional government
          programs.


 FEMA02 Develop a More Anticipatory and Customer-Driven Response to
Catastrophic Disasters
--------------------------------------------------------------------------------
FEMA02.0  FEMA should reexamine its            1
3         field structure in relation to
          the agency's mission.


 FEMA03 Create Results-Oriented Incentives to Reduce the Costs of a
Disaster
--------------------------------------------------------------------------------
FEMA03.0  Grants for mitigation and            1
4         preparedness should fund
          preparedness for the greatest
          risks.


 FEMA04 Develop a Skilled Management Team Among Political Appointees and
Career Staff
--------------------------------------------------------------------------------
FEMA04.0  Through organizational               1
1         restructuring and reordering
          of priorities, all agency
          directorates should be
          responsible to the Director of
          FEMA for fulfilling the
          primary agency mission of
          disaster response.

FEMA04.0  The Director of FEMA should          1
2         select and develop capable and
          cohesive executive leaders for
          the agency.

FEMA04.0  The Director of FEMA should          1
3         institute a staff career
          development program.


 FM01 Accelerate the Issuance of Federal Accounting Standards
--------------------------------------------------------------------------------
FM01.01   Issue a comprehensive set of         2  The Federal Accounting
          federal financial accounting            Standards Advisory Board is in
          standards within 18 months.             the process of publishing the
                                                  one remaining new standard.
                                                  This will complete a
                                                  comprehensive set of
                                                  accounting standards for the
                                                  federal government.

FM01.02   Create an independent federal        6  Because a comprehensive set of
          financial accounting standards          standards is now being
          board with the power to                 completed, this action item is
          develop, publish, and                   no longer applicable.
          interpret accounting
          principles and standards for
          the federal government, if a
          comprehensive set of
          accounting standards is not
          issued within 18 months.

FM01.03   Dedicate staff to the Federal        1
          Accounting Standards Advisory
          Board to develop a high-level
          set of cost accounting
          standards.


 FM02 Clarify and Strengthen the Financial Management Roles of OMB and
Treasury
--------------------------------------------------------------------------------
FM02.01   Develop a memorandum of              6  OMB's and the CFO Council's
          understanding (MOU) to clarify          Federal Financial Management
          central agency roles and                Status and 5-Year Plan
          responsibilities for financial          discusses the central
          management.                             agencies' and the CFOs' roles
                                                  in improving financial
                                                  management. Also, Treasury,
                                                  OMB, and we share a general
                                                  consensus on major federal
                                                  financial management issues
                                                  that need to be addressed.
                                                  While no formal MOU has been
                                                  finalized, in response to this
                                                  action item, Treasury and OMB
                                                  officials are meeting on a
                                                  monthly basis to ensure
                                                  ongoing communication. Top
                                                  officials from all three
                                                  agencies have also held a
                                                  series of meetings with CFOs
                                                  and IGs at all 24 CFO Act
                                                  agencies to help ensure that
                                                  the responsibilities for the
                                                  financial statement audits and
                                                  other financial management
                                                  objectives of the CFO Act are
                                                  met.

FM02.02   Develop and publish a                1
          strategic plan for improving
          financial management.

FM02.03   Create a governmentwide budget       1
          and financial information
          steering group.

FM02.04   Develop and publish a                1
          definition of an integrated
          budget and financial system.

FM02.05   Develop an integrated budget         3  The Joint Financial Management
          and financial information               Improvement Program Framework
          strategic plan.                         describes the basic elements
                                                  of a model for an integrated
                                                  financial management system.
                                                  It is intended to be a
                                                  reference tool and does not
                                                  include specific objectives,
                                                  detailed steps for achieving
                                                  those objectives, milestone
                                                  dates, or points of
                                                  responsibility for meeting
                                                  milestones--all necessary
                                                  parts of a sound strategic
                                                  plan.


 FM03 Fully Integrate Budget, Financial and Program Information
--------------------------------------------------------------------------------
FM03.04   Establish a clearinghouse of         1
          financial systems
          applications, cross-
          servicing, and best practices.


 FM04 Increase the Use of Technology to Streamline Financial Services
--------------------------------------------------------------------------------
FM04.05   Issue all payments to                2  The Government Management
          individuals through electronic          Reform Act of 1994 (GMRA)
          funds transfer (EFT) or                 requires that agencies pay
          electronic benefits transfer            individuals through EFT,
          (EBT).                                  unless another method has been
                                                  determined by the Secreary of
                                                  the Treasury to be
                                                  appropriate. GMRA does not
                                                  address EBT. The Federal
                                                  Electronic Benefits Transfer
                                                  Task Force published From
                                                  Paper to Electronic: Creating
                                                  a Benefit Delivery System That
                                                  Works Better and Costs Less in
                                                  May 1994, which outlines an
                                                  implementation plan for
                                                  nationwide EBT. The task force
                                                  is also providing leadership
                                                  for the development of an
                                                  integrated, nationwide EBT
                                                  payment system that is
                                                  expected to eventually be
                                                  developed and rolled out
                                                  nationwide.


 FM06 "Franchise" Internal Services
--------------------------------------------------------------------------------
FM06.01   Implement franchising for            3  OMB forwarded to Congress a
          service functions at the                proposal for five pilot
          agency head's discretion.               franchise funds. As of January
                                                  16, 1996, OMB had not received
                                                  approval for the pilots.
                                                  (Note: On February 28, 1996,
                                                  OMB obtained congressional
                                                  approval for five pilot
                                                  franchise funds.)

FM06.02   Establish an implementation          6  We consider the intent of this
          team under the President's              recomendation to have been met
          Management Council.                     because the CFO Council,
                                                  rather than the President's
                                                  Management Council, is working
                                                  with OMB to develop guidance
                                                  for agencies applying for
                                                  franchise fund pilots.


 FM07 Create Innovation Funds
--------------------------------------------------------------------------------
FM07.03   Convene a working capital fund       1
          forum.


 FM09 Simplify the Financial Reporting Process
--------------------------------------------------------------------------------
FM09.01   Propose legislation to permit        1
          OMB, in consultation with
          appropriate congressional
          committees, to have the
          flexibility to consolidate and
          simplify statutory reports to
          Congress and the President.


 FM10 Provide an Annual Financial Report to the Public
--------------------------------------------------------------------------------
FM10.03   Develop a method of                  2  The recently published
          identifying and budgeting for           Statement of Federal Financial
          the expected costs of                   Accounting Standards,
          contingent liabilities of the           "Accounting for Liabilities of
          federal government.                     the Federal Government"
                                                  addresses identification and
                                                  accounting for contingent
                                                  liabilites in the federal
                                                  government. However, the
                                                  standard does not cover
                                                  budgeting for contingent
                                                  liabilities.


 FM11 Strengthen Debt Collection Program
--------------------------------------------------------------------------------
FM11.07   Establish performance                3  Although a few agencies have
          agreements on each major loan           begun efforts to develop
          and debt collection program.            performance measures, no
                                                  consensus has been achieved by
                                                  the credit program managers on
                                                  what measures should be
                                                  included in performance
                                                  agreements. The Federal Credit
                                                  Policy Working Group is in the
                                                  process of developing
                                                  performance measures to manage
                                                  loan and debt collection, but
                                                  much remains to be done before
                                                  this recommendation is fully
                                                  implemented.


 FSL01 Improve the Delivery of Federal Domestic Grant Programs
--------------------------------------------------------------------------------
FSL01.03  Establish a Cabinet-level            1
          Enterprise Board to oversee
          new initiatives in community
          empowerment.


 FSL02 Reduce Red Tape Through Regulatory and Mandate Relief
--------------------------------------------------------------------------------
FSL02.02  Issue a regulatory executive         1  On March 22, 1995, the
          order addressing the problems           Unfunded Mandates Reform Act
          of unfunded federal mandates            of 1995 (P.L. 104-4), was
          and regulatory relief.                  enacted into law. This statute
                                                  may have superceded, in whole
                                                  or in part, the executive
                                                  order.


 FSL03 Simplify Reimbursement Procedures for Administrative Costs of
Federal Grant Disbursement
--------------------------------------------------------------------------------
FSL03.01  Modify OMB Circular A-87 to          1
          provide a fee-for-service
          option in lieu of cost
          reimbursement.


 FSL05 Simplify Administration by Modifying the Common Grant Rules on Small
Purchases
--------------------------------------------------------------------------------
FSL05.01  Modify OMB Circular A-102 to         1
          require that the common grants
          management rules increase the
          dollar threshold for small
          purchases by local governments
          from $25,000 to $100,000.


 FSL06 Strengthen the Intergovernmental Partnership
--------------------------------------------------------------------------------
FSL06.01  Reinvent the Advisory                1
          Commission on
          Intergovernmental Relations
          and charge it with
          responsibility for continuous
          improvement in federal, state,
          and local partnership and
          intergovernmental service
          delivery.


 GSA01 Separate Policymaking From Service Delivery and Make the General
Services Administration (GSA) a Fully Competitive, Revenue-Based Organization
--------------------------------------------------------------------------------
GSA01.01  Separate policymaking and            1
          oversight from service
          delivery and fund policymaking
          from direct appropriations.

GSA01.02  Allow agencies to choose             2  Federal agencies do not yet
          whether to purchase GSA                 have the freedom to purchase
          services and fund GSA service           real property,
          delivery from customer                  telecommunications, and
          revenues.                               certain other information
                                                  technology services from
                                                  alternative sources. GSA has
                                                  committed to ending its
                                                  service monopolies in these
                                                  areas and seems to be moving
                                                  in that direction. Also, GSA
                                                  is exploring the most cost-
                                                  effective methods of carrying
                                                  out all of its support-
                                                  services functions.

GSA01.04  Suspend acquisition of net new       1  As part of its Time Out and
          office space and courthouses.           Review Initiative in late 1993
                                                  and early 1994, GSA suspended
                                                  all new acquisitions of space
                                                  and reported overall savings
                                                  of over $1.3 billion,
                                                  including $324 million from
                                                  reducing or rescoping 43
                                                  courthouse construction
                                                  projects. Although GSA's
                                                  moratorium on net new office
                                                  space remains in effect,
                                                  Congress continues to
                                                  authorize, and GSA continues
                                                  to construct, new courthouses,
                                                  and additional courthouses are
                                                  planned over the next 10 years
                                                  to meet expanding court needs.
                                                  Our November 1995 testimony on
                                                  the multibillion-dollar
                                                  federal courthouse
                                                  construction program (1)
                                                  recognized that GSA and the
                                                  judiciary have actions under
                                                  way to improve the planning
                                                  and oversight of these
                                                  projects; and (2) made several
                                                  recommendations to further
                                                  improve courthouse planning,
                                                  promote better decisionmaking,
                                                  and reduce courthouse
                                                  construction costs.

GSA01.06  Improve GSA service delivery.        2  GSA has taken and continues to
                                                  take a number of actions to
                                                  improve service delivery, but
                                                  few of these actions have been
                                                  completed. For example, GSA
                                                  has reorganized its Public
                                                  Buildings Service, which is
                                                  now implementing
                                                  recommendations from an
                                                  extensive business process
                                                  reengineering initiative. GSA
                                                  also has actions under way to
                                                  improve its supply and
                                                  procurement, information
                                                  technology, and
                                                  telecommunications services to
                                                  federal agencies. In addition,
                                                  GSA is determining the most
                                                  cost-effective method of
                                                  carrying out each of its 15
                                                  major business lines and
                                                  expects to make reform
                                                  proposals later this year.


 HHS02 Reengineer the Health and Human Services (HHS) Process for Issuing
Regulations
--------------------------------------------------------------------------------
HHS02.01  HHS should use planning and          1
          control procedures to
          encourage the prompt adoption
          of regulations and to promote
          the efficient use of available
          department resources.

HHS02.02  In drafting regulations              1
          affecting programs for which
          administrative responsibility
          is shared with states, HHS
          should solicit assistance from
          states and other interested
          parties about the nature and
          extent of the relevant
          administrative matters.

HHS02.03  In instances of OMB review of        1
          HHS regulation, an OMB analyst
          should be assigned as a
          liaison to each agency within
          HHS.

HHS02.05  HHS should consolidate its           1
          internal reviews to reduce
          multiple layers of reviewers
          in the current process.

HHS02.06  In instances when the states'        6  HHS already has processes in
          deadline for program                    place that serve this purpose.
          implementation will precede             HHS has issued instructions to
          the publication of                      be followed when states'
          regulations, HHS should                 deadlines for program
          institute a program similar to          implementation precede the
          IRS' private letter ruling              publication of regulations.
          process.                                Examples of these instructions
                                                  include disseminating
                                                  information on states'
                                                  deadlines through (1) initial
                                                  Federal Register notices
                                                  announcing the program, (2)
                                                  informative materials in
                                                  application packages, and (3)
                                                  letters containing information
                                                  and/or guidance to states or
                                                  other grantees.

HHS02.07  HHS should selectively               6  HHS has other measures in
          initiate regulatory                     place that fulfill this action
          development work even before a          item. HHS begins regulatory
          statute is enacted, using the           work before enactment when a
          version of legislation most             new or revised program is
          likely to be enacted as a               likely to be needed in an
          template.                               unusually short time frame.
                                                  HHS program components are
                                                  responsible for drafting
                                                  regulations and for monitoring
                                                  the status of legislation. The
                                                  program components decide when
                                                  to devote limited staff
                                                  resources to drafting
                                                  regulations in anticipation of
                                                  enactment.


 HHS12 Strengthen Departmentwide Management
--------------------------------------------------------------------------------
HHS12.01  HHS should conduct a                 1
          comprehensive review of
          organization structure and
          management systems to
          determine what the appropriate
          balance should be between
          centralized and decentralized
          functions.

HHS12.02  HHS should identify                  1
          opportunities for delegating
          appropriate authority and
          responsibility to the lowest
          possible level.


 HHS13 Review the Field and Regional Office Structure of HHS and Develop a
Plan for Shifting Resources to Match
Workload Demands
--------------------------------------------------------------------------------
HHS13.01  HHS should conduct a                 1
          comprehensive review of all
          HHS regional and field office
          structures, functions, and
          resource allocations to
          determine their
          appropriateness.

HHS13.02  HHS should clarify the mission       1
          for each regional office and
          for field stations in terms of
          program intent and client
          needs, eliminate redundant
          operations, and empower local
          staff with decisionmaking
          authority.


 HRM06 Clearly Define the Objective of Training as the Improvement of
Individual and Organizational Performance;
Make Training More Market-Driven
--------------------------------------------------------------------------------
HRM06.01  Deregulate training and make         2  On March 30, 1994, Congress
          it more responsive to market            passed P.L. 103-226, the
          sources.                                Federal Workforce
                                                  Restructuring Act of 1994,
                                                  which significantly loosened
                                                  statutory restrictions on
                                                  training. OPM plans to issue
                                                  implementing regulations, but
                                                  these regulations have not yet
                                                  been proposed.


 HRM07 Enhance Programs to Provide Family Friendly Workplaces
--------------------------------------------------------------------------------
HRM07.01  Implement family friendly            2  Although a presidential
          workplace practices while               memorandum was issued on July
          continuing to ensure                    11, 1994, directing agencies
          accountability for quality              to encourage and support the
          customer service.                       expansion of family friendly
                                                  work arrangements, it has not
                                                  yet been demonstrated that
                                                  family friendly workplace
                                                  practices are fully
                                                  implemented. NPR reports that
                                                  35 agencies have some form of
                                                  family friendly work place
                                                  arrangements. It says that
                                                  these run the gamut from
                                                  minimal efforts, such as
                                                  making family friendly
                                                  activities the collateral duty
                                                  of an individual staff member,
                                                  to more comprehensive efforts
                                                  to implement alternative work
                                                  schedules and other family
                                                  friendly policies.

HRM07.04  Allow employees to use sick          1
          leave to care for dependents.

HRM07.05  Give returning employees             1
          credit for previously accrued
          unused federal sick leave.

HRM07.07  Reauthorize voluntary leave          1
          transfer/bank programs.


 HRM12 Eliminate Excessive Red Tape and Automate Functions and Information
--------------------------------------------------------------------------------
HRM12.01  Phase out the entire Federal         2  This action item has two
          Personnel Manual (FPM) and all          parts, one of which has been
          agency implementing                     fully implemented, and another
          directives.                             that has been partially
                                                  implemented. FPM was abolished
                                                  in January 1994; however, the
                                                  action item calls for all
                                                  agency implementing directives
                                                  to be abolished as well.
                                                  According to NPR, 23 agencies
                                                  had initiatives under way to
                                                  reduce their implementing
                                                  directives.


 HRM13 Form Labor-Management Partnerships for Success
--------------------------------------------------------------------------------
HRM13.01  The President should issue an        1
          executive order that
          identifies labor-management
          partnership as a goal of the
          executive branch and
          establishes the National
          Partnership Council.


 HRM14 Provide Incentives to Encourage Voluntary Separations
--------------------------------------------------------------------------------
HRM14.01  Provide departments and              1
          agencies with the authority to
          offer separation pay.

HRM14.02  Decentralize the authority to        2  While OPM has increased agency
          approve early retirement.               prerogatives on how early
                                                  retirement can be
                                                  administered, it has retained
                                                  the responsibility for
                                                  approving agency early
                                                  retirement authorization
                                                  requests.

HRM14.04  Expand outplacement services.        1

HRM14.05  Limit annual leave                   2  The Government Management
          accumulation by senior                  Reform Act, enacted on October
          executives to 240 hours.                13, 1994, limited senior
                                                  excutives' annual leave
                                                  accumulation to 720 hours,
                                                  rather than the 240-hour
                                                  limitation recommended by NPR.


 HUD01 Reinvent Public Housing
--------------------------------------------------------------------------------
HUD01.02  HUD should work closely with         1
          local public housing
          authorities, their national
          organizations, public housing
          tenant representatives, and
          state and local government
          officials to eliminate
          unnecessary HUD requirements
          and procedures.

HUD01.04  HUD should make a hard-              1
          hitting, targeted effort to
          resolve the severe
          difficulties of those few
          public housing agencies
          identified as problem public
          housing authorities.


 HUD02 Improve Multifamily Asset Management and Disposition
--------------------------------------------------------------------------------
HUD02.03  Statutory restrictions on HUD        1
          disposition of multifamily
          properties held as a result of
          Federal Housing Administration
          (FHA) insurance programs
          should be relaxed; HUD should
          be authorized to assist
          affected tenants with portable
          subsidies (as opposed to
          assistance tied to the project
          or unit) when appropriate.


 HUD03 Improve Single-Family Asset Management and Disposition
--------------------------------------------------------------------------------
HUD03.01  HUD should be authorized to          1
          use the Mutual Insurance Fund
          for any cost-effective
          expenditure needed to maximize
          the value of the fund,
          including all expenditures
          recommended through other
          HUD03 action items.


 HUD05 Establish a New Housing Production Program
--------------------------------------------------------------------------------
HUD05.01  HUD should stimulate                 1
          multifamily housing
          development through risk-
          sharing with housing finance
          agencies.

HUD05.02  HUD should stimulate                 2  Four financial institutions
          multifamily housing production          were selected to help further
          by helping to develop a                 develop a secondary market for
          secondary market for loans on           loans on multifamily
          multifamily properties.                 properties through a risk-
                                                  sharing demonstration program
                                                  with FHA. As of January 30,
                                                  1996, only one of these
                                                  institutions had actually
                                                  closed loans under the
                                                  program, and that institution
                                                  had closed only two loans.
                                                  Moreover, the other three
                                                  institutions had at least
                                                  temporarily suspended their
                                                  participation. Consequently,
                                                  there has been little stimulus
                                                  to the secondary market as a
                                                  result of the demonstration
                                                  program to date.

HUD05.05  HUD should make cost-                2  While HUD has taken actions to
          effective investments in                address this action item,
          professional financial                  these actions are not
          management.                             sufficient to fully implement
                                                  the action item. The narrative
                                                  description supporting this
                                                  action item in NPR's report,
                                                  Creating a Government That
                                                  Works Better and Costs Less:
                                                  Department of Housing and
                                                  Urban Development (Sept.
                                                  1993), states that HUD should
                                                  be given the resources to make
                                                  cost-effective investments to
                                                  improve FHA's automated
                                                  systems and internal controls,
                                                  develop the financial and
                                                  technical skills of FHA
                                                  employees and attract private
                                                  sector expertise, and take
                                                  advantage of new workplace
                                                  technology. To address this
                                                  item, HUD has taken actions
                                                  such as providing financial
                                                  training to asset managers;
                                                  however, actions in other
                                                  areas, such as developing
                                                  improved automated systems to
                                                  support multifamily housing
                                                  operations, are still in the
                                                  formative stages. Furthermore,
                                                  Congress has not yet acted on
                                                  HUD's legislative proposal to
                                                  "reinvent" FHA--a key purpose
                                                  of which is enhancing FHA's
                                                  ability to obtain the
                                                  resources it needs to carry
                                                  out its operations
                                                  effectively.


 HUD06 Streamline HUD Field Operations
--------------------------------------------------------------------------------
HUD06.01  HUD should participate in the        1
          multiple agency field office
          restructuring effort.

HUD06.02  Program field staff should           1
          report more directly to
          responsible program assistant
          secretaries.

HUD06.04  HUD should continue to               1
          delegate specific grant award
          decisionmaking to the states
          and localities, as is the case
          with the Community Development
          Block Grant Program and the
          new HOME Investment
          Partnerships Program.

HUD06.05  No one should be laid off as a       1
          result of this office
          consolidation. A full
          attrition program should apply
          in the field until an
          appropriate level of staffing
          is achieved.


 HUD08 Reduce Section 8 Contract Rent Payments
--------------------------------------------------------------------------------
HUD08.03  HUD should be given                3 l  Draft legislation would have
          legislative authority to                given HUD the authority to
          require owners to document and          base rent increases on the
          justify all operating costs,            actual operating costs of the
          so that requested increases to          rental properties. However,
          cover certain costs (e.g.,              this egislation was part of a
          taxes and fuel) can be offset,          legislative proposal not
          if appropriate, against known           enacted in 1995 that offset,
          reductions in other costs,              if appropriate, against known
          such as debt service or                 reductions in other costs,
          maintenance.                            included significant reforms
                                                  throughout HUD. Similar
                                                  comprehensive reforms,
                                                  including the proposed rent
                                                  revision, are likely to be
                                                  reintroduced in 1996.


 HUD10 Reduce Operating Subsidies for Vacancies
--------------------------------------------------------------------------------
HUD10.01  HUD should establish an agency       1
          goal of achieving an average
          97-percent occupancy rate in
          units owned and managed by
          public and Indian housing
          authorities by the end of
          fiscal year 1999.


 ICS01 Create Customer-Driven Programs in all Departments and Agencies that
Provide Services Directly to the Public
--------------------------------------------------------------------------------
ICS01.01  Establish an overall policy          2  Executive Order 12862, dated
          for the quality of federal              September 11, 1993,
          services delivered to the               established an overall policy
          public and initiate customer            for the quality of federal
          service programs in all                 services delivered to the
          agencies that provide services          public. In 1994, a total of
          directly to the public.                 150 agencies that provide
                                                  services directly to the
                                                  public published customer
                                                  service standards; in 1995,
                                                  the number increased to 214.
                                                  According to an NPR official,
                                                  although agencies that have
                                                  significant interaction with
                                                  the public have published
                                                  customer service standards,
                                                  not all agencies that provide
                                                  services directly to the
                                                  public have initiated customer
                                                  service programs.


 ICS02 Customer Service Performance Standards--Internal Revenue Service
(IRS)
--------------------------------------------------------------------------------
ICS02.01  As part of its participation         1
          in NPR, IRS should publish
          customer service performance
          standards, to include the
          following examples: (1) A
          refund due on your paper
          return will be mailed within
          40 days; a refund due on your
          electronic return will be
          mailed within 21 days when you
          request a check, or sent
          within 14 days when you
          specify direct deposit. (2)
          Our goal is to resolve your
          account inquiries in a single
          contact; if you have a repeat
          problem you can contact the
          Problem Resolution Office,
          which will resolve the problem
          in an average of 21 days. (3)
          When you provide sufficient
          and correct information to an
          IRS tax assistor and get an
          incorrect answer, we will
          cancel related penalties. (4)
          Let us know where our tax
          forms or instructions are
          confusing or difficult--by
          1995, we plan to boost the
          clarity of tax forms and
          instructions so that 90
          percent of individual returns
          are error-free.


 ICS03 Customer Service Performance Standards--Social Security
Administration (SSA)
--------------------------------------------------------------------------------
ICS03.01  As part of its participation         1
          in NPR, SSA should publish
          nationally and post in each of
          its offices the following
          performance standards for
          customer service: (1) You will
          be treated with courtesy every
          time you contact us. (2) We
          will provide you with all the
          information you need in order
          to understand SSA programs,
          including your own potential
          for benefits. (3) We will also
          provide you with information
          about other social service
          programs that may help you.
          (4) When you call our 1-800
          service for information or
          help, you will reach us on the
          first call.


 ICS05 Streamline Ways to Collect Customer Satisfaction and Other
Information from the Public
--------------------------------------------------------------------------------
ICS05.01  For voluntary customer               1
          surveys, OMB will delegate its
          survey approval authority
          under the Paperwork Reduction
          Act to departments that are
          able to comply with the act.

ICS05.02  The Administrator of the             1
          Office of Information and
          Regulatory Affairs (OIRA)
          should issue guidance on focus
          groups, specifically
          establishing under what
          circumstances group discussion
          activities would be excluded
          from OIRA review.


 INTEL01 Enhance Intelligence Community Integration
--------------------------------------------------------------------------------
INTEL01.  The Director of Central              5  In January 1996, we contacted
01        Intelligence (DCI) and the              the NPR point of contact for
          Deputy Secretary of Defense             the Director of Central
          should hold a visioning                 Intelligence to verify the
          conference to determine the             implementation of the NPR
          intelligence community's                action items for intelligence.
          mission in the post-Cold War            In response to that request,
          world.                                  CIA's Office of Congressional
                                                  Affairs declined to provide us
                                                  with access to the
                                                  implementation documents,
                                                  citing CIA's view that
                                                  intelligence oversight is
                                                  generally limited to specific
                                                  congressional committees.
                                                  CIA's Office of Congressional
                                                  Affairs did note that status
                                                  information regarding all
                                                  intelligence community actions
                                                  has been provided directly to
                                                  the administration's NPR
                                                  staff.

INTEL01.  The DCI and the Deputy               5  See comments to INTEL01.01.
02        Secretary of Defense should
          strengthen the intelligence
          community's Executive
          Committee by holding periodic
          principals-only meetings to
          address fundamental policy
          issues and strategic
          direction.

INTEL01.  The DCI should review the            5  See comments to INTEL01.01.
03        contribution of Intelligence
          Centers to the goal of better
          community integration and
          execution processes.


 INTEL02 Enhance Community Responsiveness to Customers
--------------------------------------------------------------------------------
INTEL02.  The DCI should appoint a             5  See comments to INTEL01.01.
01        customer advocate, or
          ombudsman.

INTEL02.  The DCI should establish a           5  See comments to INTEL01.01.
02        process that continuously
          tracks the needs of the
          intelligence community
          customer.

INTEL02.  The Community Public Affairs         5  See comments to INTEL01.01.
04        Office should jointly develop
          programs to inform the general
          public about the value of the
          services provided by the
          intelligence community.

INTEL02.  The DCI should establish an          5  See comments to INTEL01.01.
05        integrated community
          congressional liaison office.
          The newly established office
          should develop a communitywide
          congressional strategy by
          January 1994.

INTEL02.  The new Intelligence Community       5  See comments to INTEL01.01.
06        Intelligence Systems Board
          should create a multimedia
          information handling
          architecture for the
          intelligence community and its
          customers.

INTEL02.  Production managers should           5  See comments to INTEL01.01.
08        encourage the use of the
          lowest practical level of
          classification for
          intelligence community
          products.


 INTEL03 Reassess Information Collection to Meet New Analytical Challenges
--------------------------------------------------------------------------------
INTEL03.  The Foreign Broadcast                5  See comments to INTEL01.01.
01        Information Service and the
          Open Source Coordination
          Office should reexamine the
          mission of the Foreign
          Broadcast Information Service.

INTEL03.  The new Intelligence Community       5  See comments to INTEL01.01.
03        Systems Board should create a
          multimedia information
          handling architecture for the
          intelligence community to
          facilitate real-time
          communications between
          analysts and collectors here
          and abroad in the interest of
          pinpointing collection gaps
          and weaknesses.

INTEL03.  The National Intelligence            5  See comments to INTEL01.01.
06        Council should strengthen its
          role in conceptualizing
          analytic issues facing the
          community, encouraging the
          development of alternative
          analyses, and improving the
          perception of it as a
          community body rather than
          CIA.


 INTEL04 Integrate Intelligence Community Information Management Systems
--------------------------------------------------------------------------------
INTEL04.  The Director of Central              5  See comments to INTEL01.01.
01        Intelligence and the Secretary
          of Defense should replace
          DOD's Intelligence Systems
          Council with an intelligence
          community organization chaired
          by the Executive Director for
          Intelligence Community Affairs
          and the Deputy Assistant
          Secretary of Defense
          (Intelligence).

INTEL04.  The new Community Intelligence       5  See comments to INTEL01.01.
02        Systems Board (ISB) should
          impose an immediate moratorium
          on all new community
          information management
          initiatives or upgrades to
          current systems until a
          transition plan is developed
          and basic standards agreed
          upon. Waivers may be granted
          by the DCI/Deputy Secretary of
          Defense based on valid
          justification.

INTEL04.  The new Community ISB should         5  See comments to INTEL01.01.
03        establish a Dissemination
          Working Group to act as the
          focal point for the receipt,
          review, and validation of all
          intelligence community
          dissemination needs.


 INTEL05 Develop Integrated Personnel and Training Systems
--------------------------------------------------------------------------------
INTEL05.  The Community Foreign Language       5  See comments to INTEL01.01.
03        Committee should set
          communitywide language
          proficiency standards,
          recognizing that individual
          agencies will continue to have
          unique operational
          requirements that mandate
          specialized training and
          testing.


 INTEL06 Merge the President's Intelligence Oversight Board With the
President's Foreign Intelligence Advisory Board
--------------------------------------------------------------------------------
INTEL06.  The President should issue an        5  See comments to INTEL01.01.
01        executive order to terminate
          the President's Intelligence
          Oversight Board and assign its
          functions to a standing
          subcommittee of the
          President's Foreign
          Intelligence Advisory Board.


 INTEL07 Improve Support to Ground Troops During Combat Operations
--------------------------------------------------------------------------------
INTEL07.  The Secretary of Defense, the        5  See comments to INTEL01.01.
01        Chairman of the Joint Chiefs
          of Staff, and the DCI should
          establish a reinvention lab to
          address these issues.

INTEL07.  The Secretary of Defense and         5  See comments to INTEL01.01.
02        the DCI should appoint a small
          group of neutral monitors to
          coach the process.

INTEL07.  The reinvention lab will             5  See comments to INTEL01.01.
03        report its findings to the
          Secretary of Defense, the
          Chairman of the Joint Chiefs
          of Staff, and the Director of
          Central Intelligence in
          September 1994.


 IT02 Implement Nationwide, Integrated Electronic Benefit Transfer (EBT)
--------------------------------------------------------------------------------
IT02.01   Design an integrated EBT             1
          implementation plan.


 IT04 Establish a National Law Enforcement/Public Safety Network
--------------------------------------------------------------------------------
IT04.01   Formalize the Federal Law            1
          Enforcement Wireless Users
          Group.


 IT12 Provide Incentives for Innovation
--------------------------------------------------------------------------------
IT12.01   Retain a portion of agency           3  While OMB has asked agencies
          information technology savings          to identify restructuring or
          for reinvestment.                       process reengineering
                                                  activities resulting from
                                                  information technology
                                                  investments that yield
                                                  budgetary savings, there is
                                                  currently no formal process
                                                  for recognizing information
                                                  technology-derived monetary
                                                  savings. An earlier
                                                  legislative proposal by the
                                                  administration to establish an
                                                  innovation fund to carry out
                                                  this action item was not
                                                  enacted.


 IT13 Provide Training and Technical Assistance in Information Technology
to Federal Employees
--------------------------------------------------------------------------------
IT13.02   Require minimum competency in        1
          information technology for
          Senior Executive Service (SES)
          candidates.

IT13.03   Require information resource         3  There is currently no
          management (IRM) managers to            requirement for federal IRM
          meet certification standards.           managers to meet certification
                                                  standards. OMB, which has
                                                  responsibility under the
                                                  Information Technology
                                                  Management Reform Act of 1996
                                                  for overseeing IRM training
                                                  development, should (1) ensure
                                                  that the requirement is
                                                  established, (2) set goals and
                                                  time frames for meeting this
                                                  requirement, and (3) establish
                                                  the means to measure progress
                                                  toward fulfilling the
                                                  requirement. GSA has
                                                  established a certification
                                                  process for federal IRM
                                                  managers in cooperation with
                                                  13 universities and colleges.

IT13.05   Include training as part of          3  GSA has taken the lead on this
          all information technology              action item and has published
          contracts and acquisitions.             guidance on how information
                                                  technology training can be
                                                  provided to federal agency
                                                  employees. However, the
                                                  guidance contains no
                                                  requirement for the inclusion
                                                  of training as part of
                                                  information technology
                                                  contracts and acquisitions.
                                                  GSA maintains that it does not
                                                  have the authority to mandate
                                                  that agencies include
                                                  technical training in their
                                                  information technology
                                                  contracts and acquisitions.


 NASA01 Improve NASA Contracting Practices
--------------------------------------------------------------------------------
NASA01.0  NASA regulations should be           1
1         modified to provide for
          greater emphasis on the
          selection of appropriate
          contract type, to make better
          use of positive and negative
          incentives to contractors
          through award fee contracts,
          and to consider increasing
          contractor liability for
          correction of defects in
          materials and workmanship or
          other failures to conform to
          contract requirements.

NASA01.0  NASA and other government            1
2         agencies should consider
          contracting out for data
          instead of hardware.

NASA01.0  NASA should extend the use of        1
3         its Cooperative Research
          Agreement solicitation
          instrument to for-profit, as
          well as nonprofit and
          educational, organizations to
          exploit new high-performance
          computing technology more
          quickly.


 NASA02 Increase NASA Technology Transfer Efforts and Eliminate Barriers to
Technology Development
--------------------------------------------------------------------------------
NASA02.0  The State Department should          1
2         publish a notice in the
          Federal Register to establish
          its goals for expediting the
          processing of export license
          applications.

NASA02.0  NASA should implement its New        1
4         Technology Investments Program
          through the use of industry-
          led efforts that will create
          and apply new technology to
          NASA programs as well as to
          the commercial marketplace.


 NASA03 Increase NASA Coordination of Programs With the U.S. Civil Aviation
Industry
--------------------------------------------------------------------------------
NASA03.0  NASA should develop a closer         1
1         relationship with the U.S.
          civil aviation industry and
          government partners to ensure
          that industry needs are
          addressed early and throughout
          the technology development
          process and to maximize
          investment through fast and
          efficient technology transfer
          activities. In pursuing this
          objective, NASA should: (1)
          ensure that promising
          technologies are fully
          developed, through validation
          where necessary, to reduce the
          risk to industry of
          commercialization efforts; (2)
          increase industry
          participation and involvement
          in all phases of the R&D
          process, from planning to
          implementation as well as in
          the evaluation of results; and
          (3) improve its responsiveness
          to specific industry needs
          through increased flexibility
          of services and resources
          (facilities and people) and
          programmatic objectives.


 NASA04 Strengthen and Restructure NASA Management
--------------------------------------------------------------------------------
NASA04.0  NASA should aggressively             1
1         complete its overhaul of the
          space station program
          management, reducing the
          number of total contractor and
          civil service staff by
          approximately 30 percent and
          reducing the number of
          government employees working
          on the space station program
          to approximately 1,000 (a
          reduction of 1,300 employees
          over the current program).

NASA04.0  NASA should aggressively             1
3         reposition its staff to meet
          the agency's new challenges.

NASA04.0  NASA should restructure its          1
4         internal management processes
          for program formulation and
          implementation by formally
          instituting its Program
          Management Council to be
          chaired by the deputy
          administrator.

NASA04.0  NASA should work aggressively        1
5         with its interagency
          counterparts to complete a
          summary report to the
          administration, by June 1994,
          identifying federal aerospace
          facility shortfalls, new
          facility requirements,
          consolidation opportunities,
          and recommendations for
          closing.


 NASA05 Clarify the Objectives of the Mission to Planet Earth Program
--------------------------------------------------------------------------------
NASA05.0  NASA should use innovative           1
1         management and streamlined
          procurement mechanisms to
          ensure that the Mission to
          Planet Earth (MTPE) program
          development costs are
          contained within existing
          estimates and that life-cycle
          costs are minimized.

NASA05.0  NASA should ensure that the          1
2         development of MTPE is
          consistent with high-priority
          national and international
          science objectives relating to
          global change research.

NASA05.0  NASA should give emphasis to         1
3         policymakers in the
          implementation of the MTPE
          program.

NASA05.0  NASA should employ innovative        1
4         development approaches to the
          Earth Observation System Data
          and Information System
          (EOSDIS) program that
          emphasize evolutionary growth,
          technology infusion, and
          direct customer participation.

NASA05.0  NASA should encourage the            1
5         educational benefits of
          EOSDIS.

NASA05.0  NASA should assist in ongoing        2  NASA is actively involved in
6         efforts to converge U.S.                the National Polar-orbiting
          operational weather                     Operational Environmental
          satellites, given the benefits          Satellite System (NPOESS) and
          of streamlining the collection          is considering flying some
          of weather data across the              MTPE instruments on NPOESS
          government.                             satellites. However, this is a
                                                  continuing effort. NASA is
                                                  participating with DOD and the
                                                  National Oceanic and
                                                  Atmospheric Administration in
                                                  the area of satellite
                                                  convergence. However, there
                                                  are signs that NASA's role may
                                                  change from assisting in
                                                  technology development to
                                                  participating in the program.
                                                  We believe that NASA's
                                                  ultimate role should be
                                                  clarified before the action
                                                  item is considered fully
                                                  implemented.


 NSF01 Strengthen Coordination of Science Policy
--------------------------------------------------------------------------------
NSF01.01  Modify the current Federal           1
          Coordinating Council for
          Science, Engineering, and
          Technology structure and
          reconstitute the organization
          as the National Science and
          Technology Council to
          coordinate the development and
          implementation of science and
          technology policy.

NSF01.02  The proposed policy council          1
          should be created immediately
          by presidential directive.


 PROC01 Reframe Acquisition Policy
--------------------------------------------------------------------------------
PROC01.0  Convert the Federal                  3  An Office of Federal
1         Acquisition Regulation (FAR)            Procurement Policy (OFPP)
          from rigid rules to guiding             official told us that although
          principles.                             a plan to rewrite FAR was
                                                  developed in 1994, the FAR
                                                  rewrite has not advanced as
                                                  planned. Federal agencies'
                                                  actions do not constitute
                                                  "full implementation" because
                                                  conversion of FAR "from rigid
                                                  rules to guiding principles"
                                                  has not occurred. Moreover,
                                                  there is no consensus on how
                                                  extensively FAR should be
                                                  rewritten. However, the
                                                  Federal Acquisition Regulatory
                                                  Council published a final rule
                                                  on July 3, 1995, that amended
                                                  FAR by adding a Statement of
                                                  Guiding Principles.


 PROC02 Build an Innovative Procurement Workforce
--------------------------------------------------------------------------------
PROC02.0  Provide civilian agencies with       1
2         authority similar to DOD's for
          improving the acquisition
          workforce.


 PROC03 Encourage More Procurement Innovation
--------------------------------------------------------------------------------
PROC03.0  Provide new legislative              1
1         authority to test innovative
          procurement methods.


 PROC04 Establish New Simplified Acquisition Threshold and Procedures
--------------------------------------------------------------------------------
PROC04.0  Enact legislation simplifying        1
1         procurement.

PROC04.0  Enact legislation simplifying        1
2         DOD unique procurement
          requirements.

PROC04.0  Establish a single electronic        3  Many agency initiatives are
3         bulletin board capability to            under way to provide
          provide access to information           electronic notice of federal
          on contracting opportunities.           contracting opportunities.
                                                  However, these initiatives
                                                  have not resulted in a single
                                                  electronic bulletin board
                                                  capability. Interim rules
                                                  implementing the (1)
                                                  simplified acquisition and the
                                                  Federal Acquisition Computer
                                                  Network (FACNET) requirements
                                                  of the Federal Acquisition
                                                  Streamlining Act of 1994,
                                                  title IV and title IX; and (2)
                                                  use of electronic commerce/
                                                  electronic data interchange in
                                                  government contracting were
                                                  published on July 3, 1995,
                                                  which took affect that same
                                                  date. However, officials
                                                  responsible for designing,
                                                  developing, and implementing
                                                  FACNET have not yet determined
                                                  how a single electronic
                                                  bulletin board capability for
                                                  government contracting
                                                  opportunities will be
                                                  provided. A number of private
                                                  companies make available on
                                                  the Internet, and other
                                                  electronic mail services,
                                                  government contracting
                                                  opportunities exceeding
                                                  $25,000 that are listed in
                                                  Commerce Business Daily.


 PROC05 Reform Labor Laws and Transform DOL Into an Efficient Partner for
Meeting Public Policy Goals
--------------------------------------------------------------------------------
PROC05.0  Amend Executive Order 11755 to       3  A measure to repeal the Walsh-
2         incorporate convict labor               Healey Public Contracts Act
          provisions upon repeal of the           was considered but not
          Walsh-Healey Public Contracts           included in the final version
          Act.                                    of the Federal Acquisition
                                                  Streamlining Act (FASA).

PROC05.0  Provide on-line access to the        1
3         Davis-Bacon Act wage schedules
          through an electronic system.


 PROC06 Amend Protest Rules
--------------------------------------------------------------------------------
PROC06.0  Identify and eliminate causes        2  GSA's Office of General
6         of protests and improve agency          Counsel identified the most
          processes.                              common bases for protests of
                                                  agency solicitations and
                                                  contract awards; made
                                                  suggestions to the Director,
                                                  OMB, to avoid protests; and
                                                  developed and publicized
                                                  education and training
                                                  materials designed to improve
                                                  GSA's performance in reducing
                                                  protests. However, GSA's
                                                  actions do not constitute
                                                  "full implementation" because
                                                  it remains to be seen whether
                                                  the actions will "eliminate
                                                  causes of protests and improve
                                                  agency processes."


 PROC07 Enhance Programs for Small Business and Small Disadvantaged
Business Concerns
--------------------------------------------------------------------------------
PROC07.0  Authorize civilian agencies to       1  Section 7102 of FASA
2         conduct small disadvantaged             authorizes civilian agencies
          business set-asides.                    to conduct small disadvantaged
                                                  business set-aside
                                                  competitions. However, final
                                                  implementing regulations
                                                  remain under review in light
                                                  of the Supreme Court's
                                                  decision in Adarand
                                                  Constructors, Inc. v. Pena,
                                                  115 S. Ct. 2097 (1995), which
                                                  set forth a new standard for
                                                  evaluating the
                                                  constitutionality of race-
                                                  based affirmative action
                                                  programs and the President's
                                                  directive of July 19, 1995,
                                                  that executive agencies review
                                                  such programs under that
                                                  standard.

PROC07.0  Demonstrate the continued            1
4         commitment to small and small
          disadvantaged businesses
          through issuance of a
          presidential directive.


 PROC08 Reform Information Technology Procurements
--------------------------------------------------------------------------------
PROC08.0  Establish an interagency team        1
1         to develop a plan for
          improving federal information
          technology acquisitions.

PROC08.0  Increase information                 1
2         technology delegation of
          authority to agencies.

PROC08.0  Identify and test innovative         2  As of April 1994, GSA has
5         procurement strategies that             required major software
          reduce the costs for                    publishers to offer their
          information technology items.           complete line of software
                                                  under both right-to-copy
                                                  licensing arrangements and
                                                  individual license buys
                                                  through GSA's multiple award
                                                  schedule program. Previously,
                                                  only individual license buys
                                                  could be procured. According
                                                  to a GSA official, commercial
                                                  businesses generally use
                                                  right-to-copy licenses to
                                                  acquire software because such
                                                  licenses offer significant
                                                  savings over individual
                                                  license buys. According to GSA
                                                  officials, although the GSA
                                                  action constitutes
                                                  identification, test, and
                                                  implementation of one
                                                  innovative procurement
                                                  strategy for software, the
                                                  agency will continue to look
                                                  for other opportunities to
                                                  reduce the cost to the
                                                  government of information
                                                  technology items.


 PROC09 Lower Costs and Reduce Bureaucracy in Small Purchases Through the
Use of Purchase Cards
--------------------------------------------------------------------------------
PROC09.0  Encourage all government             1
2         supply sources to accept the
          purchase card.

PROC09.0  Amend FAR to promote use of          1  Although the FAR provision on
3         the purchase card.                      micropurchases has been
                                                  amended to specifically
                                                  encourage the use of purchase
                                                  cards, similar encouragement
                                                  is not reflected elsewhere in
                                                  FAR for purchases exceeding
                                                  $2,500.


 PROC10 Ensure Customer Focus in Procurement
--------------------------------------------------------------------------------
PROC10.0  Revise Executive Order 12352         1
1         to conform to the new vision
          for federal procurement.


 PROC12 Allow for Expanded Choice and Cooperation in the Use of Supply
Schedules
--------------------------------------------------------------------------------
PROC12.0  Allow state and local                2  Section 1555 of FASA
1         governments, grantees, and              authorizes the GSA
          certain nonprofit agencies to           Administrator to provide for
          use federal supply contracts.           the use of federal supply
                                                  schedules of GSA upon request
                                                  by state, local, and Indian
                                                  Tribal governments and by
                                                  certain nonprofit agencies for
                                                  the blind and severely
                                                  disabled. GSA, on April 7,
                                                  1995, requested comments on a
                                                  proposed implementation plan,
                                                  which included consideration
                                                  of a phased process to bring
                                                  newly authorized governmental
                                                  users on in stages. However,
                                                  the National Defense
                                                  Authorization Act for Fiscal
                                                  Year 1996, which the President
                                                  signed on February 10, 1996,
                                                  includes a provision that
                                                  suspends authority of the GSA
                                                  Administrator to allow state,
                                                  local, and Indian Tribal
                                                  governments to use the federal
                                                  supply schedules until the
                                                  later of two dates: (1) the
                                                  period ending 18 months after
                                                  the date of enactment of the
                                                  act and (2) the period ending
                                                  30 days after the date the
                                                  Administrator has considered a
                                                  GAO report that assesses the
                                                  effects of state and local
                                                  governments' use of schedules
                                                  and submits the report and
                                                  comments to Congress. On
                                                  August 16, 1995, a final rule
                                                  was published that implements
                                                  section 1555 provisions
                                                  authorizing nonprofit agencies
                                                  for the blind or severely
                                                  disabled providing supplies or
                                                  services under a Javitts-
                                                  Wagner-O'Day Act contract to
                                                  use government supply sources
                                                  in performing the contract.


 PROC13 Foster Reliance On the Commercial Marketplace
--------------------------------------------------------------------------------
PROC13.0  Make it easier to buy                1
1         commercial items.


 PROC14 Expand Electronic Commerce for Federal Acquisition
--------------------------------------------------------------------------------
PROC14.0  Amend FAR to facilitate              1
2         electronic commerce.


 PROC15 Encourage Best Value Procurement
--------------------------------------------------------------------------------
PROC15.0  Train procurement officials on       1
3         source selection techniques.


 PROC18 Authorize Multiyear Contracts
--------------------------------------------------------------------------------
PROC18.0  Authorize multiyear contracts.       1
1

PROC18.0  Allow contracts for severable        1
2         services to cross fiscal
          years.


 PROC19 Conform Certain Statutory Requirements for Civilian Agencies to
Those of DOD Agencies
--------------------------------------------------------------------------------
PROC19.0  Repeal the requirement for           1
1         commercial pricing
          certificates and authorize
          contract awards without
          discussions.

PROC19.0  Maintain the $500,000                1
2         threshold for cost and pricing
          data requirements for DOD.

PROC19.0  Establish a $500,000 threshold       1
3         for cost and pricing data
          requirements for civilian
          agencies.


 PROC20 Streamline Buying for the Environment
--------------------------------------------------------------------------------
PROC20.0  Encourage multiple award             1
3         schedule contractors to
          identify environmentally
          preferable products.

PROC20.0  Provide energy efficiency            1
4         information in GSA and Defense
          Logistics Agency catalogs and
          automated systems.

PROC20.0  Encourage multiple award             1
5         schedule contractors to
          identify equipment that meets
          the EPA Energy Star
          requirements.

PROC20.0  Encourage federal agency use         1
6         of areawide utility contracts
          for energy audits.

PROC20.0  Establish indefinite delivery        1
7         contracts for energy retrofit
          services.


 QUAL01 Provide Improved Leadership and Management of the Executive Branch
--------------------------------------------------------------------------------
QUAL01.0  Direct department and agency         1
2         heads to designate chief
          operating officers.

QUAL01.0  Establish a President's              1
3         Management Council.


 REG01 Create an Interagency Regulatory Coordinating Group
--------------------------------------------------------------------------------
REG01.01  Create an interagency                1
          Regulatory Coordinating Group
          to share information and
          coordinate approaches to
          regulatory issues.


 REG02 Encourage More Innovative Approaches to Regulation
--------------------------------------------------------------------------------
REG02.01  Establish use of innovative          1
          regulatory approaches as
          administration policy.


 REG03 Encourage Consensus-Based Rulemaking
--------------------------------------------------------------------------------
REG03.01  Increase the use of negotiated       1
          rulemaking.


 SBA02 Improve Assistance to Minority Small Businesses
--------------------------------------------------------------------------------
SBA02.02  The Small Business                   6  The Small Business Act
          Administration (SBA)                    requires SBA to process
          Administrator should                    applications to the 8(a)
          streamline the 8(a)                     program within 90 days or
          application process to reduce           less. As of January 16, 1996,
          the amount of time involved.            SBA had reduced the average
                                                  processing time for these
                                                  applications from 208 days 3
                                                  years ago to about 93 days.
                                                  Although SBA streamlined the
                                                  application process and
                                                  provided extensive in-house
                                                  training for program staff,
                                                  the 8(a) program office
                                                  attributed the decline in the
                                                  processing time primarily to a
                                                  new commitment and change in
                                                  attitude on the part of SBA
                                                  staff toward processing the
                                                  applications. Over the next
                                                  several months, SBA plans to
                                                  eliminate its application
                                                  backlog and reduce the
                                                  processing time for 8(a)
                                                  applications below the 90-day
                                                  level.

SBA02.05  The Small Business Act should        4  No effort has been made to
          be amended to require federal           amend the Small Business Act
          procuring agencies to use               to require federal agencies to
          their existing authority to             use their existing authority
          provide advance payments on             to provide advance payments to
          8(a) contracts, when such               8(a) contractors.
          funding is necessary to
          contract performance.

SBA02.06  The Small Business Act should        1  Section 7102 of the Federal
          be amended to provide civilian          Acquisition Streamlining Act
          agencies the same authority             of 1994 (P.L. 103-355)
          that DOD currently has for its          authorized a governmentwide
          own "Small Disadvantaged                Small Disadvantaged Business
          Business Set-Aside" program.            Set-Aside program. As of
                                                  January 16, 1996, regulations
                                                  to implement this program were
                                                  pending because of a 1995
                                                  Supreme Court decision that
                                                  set forth a new standard for
                                                  evaluating the
                                                  constitutionality of race-
                                                  based affirmative action
                                                  programs and the President's
                                                  directive that executive
                                                  agencies review such programs
                                                  under this standard.


 SBA03 Reinvent SBA's Credit Programs
--------------------------------------------------------------------------------
SBA03.01  The SBA Administrator, upon          1
          completion of his review of
          SBA's credit programs, should
          provide a report to the
          President that outlines
          specific recommendations,
          including necessary
          legislative changes, to
          improve, expand, and lower the
          costs of the SBA credit
          programs.


 SBA04 Examine Federal Guidelines for Small Business Lending Requirements
--------------------------------------------------------------------------------
SBA04.01  The Department of the                1
          Treasury, in conjunction with
          the bank and thrift
          institutions' regulators,
          should examine guidelines for
          depository institutions to
          determine whether all small
          business loans made by well-
          capitalized institutions
          should be examined solely on
          performance.

SBA04.02  The Federal Financial                1
          Institutions Examination
          Council should develop an
          objective economic indicator
          of lending to small business.


 SBA05 Manage the Microloan Program to Increase Loans for Small Businesses
--------------------------------------------------------------------------------
SBA05.01  Subsection (m), section 7 of         2  The Small Business
          the Small Business Act, 15              Administration Reauthorization
          U.S.C. 636, should be amended           and Amendments Act of 1994
          to allow SBA to provide a 100-          (P.L. 103-403) establishes
          percent guarantee on loans              only a pilot microloan
          made by approved lenders to             guarantee program. The
          intermediaries selected by              legislation authorizes SBA to
          SBA.                                    guarantee up to 100 percent of
                                                  loans made to no more than 20
                                                  intermediary lenders in urban
                                                  and rural areas by for-profit
                                                  and nonprofit entities. Under
                                                  the pilot program, SBA's
                                                  authority to guarantee loans
                                                  terminates on September 30,
                                                  1997. SBA's regulations
                                                  implementing the pilot program
                                                  were issued on November 2,
                                                  1995.


 SBA07 Distribute SBA Staff Based on Workload and Administrative Efficiency
--------------------------------------------------------------------------------
SBA07.01  The SBA Administrator should         1
          reallocate SBA staff in line
          with basic principles of
          administrative efficiency and
          program workload.


 SBA08 Improve Federal Data on Small Businesses
--------------------------------------------------------------------------------
SBA08.01  The SBA Administrator should         1
          work with OMB and the relevant
          statistical agencies to
          include a size-of-firm
          question in all future federal
          household and employer surveys
          that collect data on
          businesses.


 SMC02 Streamline the Internal Controls Program to Make It an Efficient and
Effective Management Tool
--------------------------------------------------------------------------------
SMC02.01  Rewrite OMB Circular A-123,          1
          "Internal Control Systems," to
          be a succinct document that
          defines the policy for
          establishing and reviewing
          management controls.

SMC02.02  Replace OMB's existing               6  Since the 1993 NPR
          Internal Control Guidelines             recommendation, OMB has issued
          with a handbook on management           revised policy and guidance to
          controls.                               agencies in its circular
                                                  "Management Accountability and
                                                  Control" (Circular A-123; June
                                                  21, 1995). Properly
                                                  implemented, the new circular
                                                  provides a framework for
                                                  agencies to develop effective
                                                  systems of management
                                                  controls, consistent with the
                                                  objectives of the Federal
                                                  Managers Financial Integrity
                                                  Act of 1982, without the
                                                  cumbersome reporting
                                                  requirements referred to by
                                                  NPR. Further, since the NPR
                                                  recommendation was made,
                                                  considerable focus has been
                                                  placed on management control
                                                  issues, both within government
                                                  and the private sector; also,
                                                  a significant amount of
                                                  resource material has been
                                                  developed on the design,
                                                  implementation, operation, and
                                                  evaluation of management
                                                  control systems. For example,
                                                  the Committee on Sponsoring
                                                  Organizations of the Treadway
                                                  Commission formulated the
                                                  Internal Control-Integrated
                                                  Framework, which could serve
                                                  as a reference model.

SMC02.03  Revise government-sponsored          2  OMB reports that it plans to
          management training to teach            continue to participate in OPM
          management control as an                management training focused on
          integral function of                    controls. Also, OMB reports
          management, not as a reporting          that EPA, DOI, IRS, and
          requirement.                            Treasury have written
                                                  memorandums and developed
                                                  training materials that
                                                  emphasize that management
                                                  controls are an integral
                                                  function of management. Along
                                                  with the accountability
                                                  reporting initiative now under
                                                  way, these are good initial
                                                  steps but clearly do not
                                                  represent the governmentwide
                                                  revision intended by the NPR
                                                  action item. Over time, as
                                                  ongoing initiatives are
                                                  continued and additional
                                                  agencies move to provide more
                                                  training emphasis on
                                                  management controls, this
                                                  action item will become fully
                                                  implemented.


 SMC03 Change the Focus of the Inspectors General (IG)
--------------------------------------------------------------------------------
SMC03.01  Change the emphasis of IGs           1
          from compliance auditing to
          evaluating management control
          systems.

SMC03.02  Change the IG's method of            1
          operation to be more
          collaborative and less
          adversarial.


 SUP03 Improve Distribution Systems to Reduce Costly Inventories
--------------------------------------------------------------------------------
SUP03.01  Permit customer choice in            1
          sources of supply.

SUP03.07  Provide agencies with parallel       1
          contracting authority.


 SUP04 Streamline and Improve Contracting Strategies for the Multiple Award
Schedule Program
--------------------------------------------------------------------------------
SUP04.01  Eliminate mandatory supply           1  (See also GSA01.02.)
          schedules.

SUP04.02  Eliminate the announcement           1
          requirements for information
          technology acquisitions from
          supply schedules.

SUP04.03  Raise the maximum order              1
          limitations for information
          technology acquisitions from
          supply schedules.

SUP04.04  Reduce the administrative            2  The administrative burden for
          burden for acquisitions under           GSA supply schedules
          $10,000 from supply schedules.          acquisitions has been reduced.
                                                  To be consistent with the
                                                  threshold Congress adopted in
                                                  the Federal Acquisition
                                                  Streamlining Act of 1994,
                                                  however, GSA reduced this
                                                  burden only for purchases
                                                  under $2,500, not $10,000 as
                                                  stated in the action item.

SUP04.06  Identify and test innovative         1
          procurement strategies that
          reduce costs for goods under
          the Multiple Award Schedule
          program.


 SUP05 Expand Agency Authority and Eliminate Congressional Control Over
Federal Vehicle Fleet Management
--------------------------------------------------------------------------------
SUP05.01  Update vehicle replacement           1
          standards.

SUP05.03  Increase emergency repair            1
          limits.

SUP05.04  Provide incentives and               6  GSA implemented this action
          authorize agencies to dispose           item administratively through
          of agency-owned vehicles.               an amendment to the Federal
                                                  Property Management
                                                  Regulations (FPMR), rather
                                                  than legislatively as NPR
                                                  recommended in its
                                                  accompanying report. FPMR now
                                                  authorizes agencies to dispose
                                                  of their own vehicles and also
                                                  allows agencies to reinvest
                                                  the proceeds in new vehicles
                                                  under an exchange sale
                                                  program.


 SUP06 Give Agencies Authority and Incentive for Personal Property
Management and Disposal
--------------------------------------------------------------------------------
SUP06.01  Eliminate the monopoly on            1
          personal property disposal
          services.

SUP06.02  Automate the personal property       1
          screening process.

SUP06.03  Provide incentives to agencies       6  GSA's FPMR now addresses this
          to dispose of excess personal           action item by permitting
          property.                               agencies to reinvest, in like
                                                  property, the proceeds from
                                                  sales of vehicles, and certain
                                                  other types of continuous-use
                                                  equipment. According to GSA,
                                                  this reinvestment provision
                                                  (exchange/sale) covers the
                                                  bulk of personal property
                                                  sales. Per GSA, proceeds from
                                                  the sale of miscellaneous
                                                  excess personal property
                                                  items, such as office
                                                  furniture, that account for
                                                  only about 3 percent of total
                                                  sales revenue (about $7
                                                  million annually) continue to
                                                  go directly to the Treasury.
                                                  Given the administrative
                                                  accounting system changes that
                                                  would be required, GSA decided
                                                  that the benefits of allowing
                                                  agencies to retain these
                                                  relatively small sales
                                                  proceeds were not great enough
                                                  to merit the legislative
                                                  change NPR recommended in its
                                                  accompanying report.


 SUP07 Simplify Travel and Increase Competition
--------------------------------------------------------------------------------
SUP07.02  Increase choices for federal         1
          travelers.


 SUP08 Give Customers Choices and Create Real Property Enterprises That
Promote Sound Real Property Asset Management
--------------------------------------------------------------------------------
SUP08.02  Create competitive enterprises       2  While GSA has created various
          to provide real property                real property enterprises that
          services on a fee basis.                provide services to federal
                                                  agencies, these enterprises
                                                  are not competitive since
                                                  federal agencies do not yet
                                                  have the freedom to choose
                                                  alternative sources. However,
                                                  GSA has committed to ending
                                                  its real estate monopoly and
                                                  seems to be moving in that
                                                  direction. Also, GSA is in the
                                                  process of determining the
                                                  most cost-effective method of
                                                  carrying out each of its
                                                  support-services functions,
                                                  including real property
                                                  services.

SUP08.03  Create centers of expertise          1
          for real property services.

SUP08.04  Create a customer service            1
          organization for real property
          services in GSA.

SUP08.05  Provide agencies with                2  GSA's database now includes or
          information about all possible          soon will include data on all
          real property alternatives.             federal real property
                                                  holdings, property designated
                                                  as excess to federal needs,
                                                  and commercial listings in
                                                  major cities; GSA continues to
                                                  expand and improve its
                                                  database. However, this
                                                  database does not yet contain
                                                  data on all possible real
                                                  property alternatives. For
                                                  example, it does not contain
                                                  data on excess properties of
                                                  state and local governments,
                                                  properties held by banks and
                                                  insurance companies, or all
                                                  properties listed nationwide
                                                  by commercial realtors. Over
                                                  the last 2 years, the tools
                                                  available to provide these
                                                  data to federal agencies have
                                                  changed dramatically, and GSA
                                                  is working with a number of
                                                  agencies to test the use of
                                                  the Internet as a vehicle to
                                                  access this database.

SUP08.06  Create an enterprise for the         1
          sound management of federal
          real property assets.

SUP08.07  Establish governmentwide             2  GSA has consolidated all of
          policy for real property asset          its governmentwide policy
          management.                             functions, including real
                                                  property management, in a new
                                                  agencywide Office of Planning,
                                                  Policy, and Evaluation that
                                                  reports to the Administrator
                                                  of GSA. To improve
                                                  governmentwide management,
                                                  use, and disposition of
                                                  federal real property mission
                                                  assets, GSA is reexamining its
                                                  existing policy guidance,
                                                  oversight, and disposal
                                                  efforts and has developed key
                                                  definitions and principles to
                                                  guide federal real property
                                                  asset management. However, GSA
                                                  continues to refine these
                                                  governmentwide guidelines, and
                                                  they have not yet been
                                                  promulgated.

SUP08.08  Establish performance                1
          benchmarks for the real
          property enterprises.


 SUP11 Reduce Postage Costs Through Improved Mail Management
--------------------------------------------------------------------------------
SUP11.03  Issue guidelines that                1
          encourage postage savings
          through the implementation of
          mail management initiatives.


 TRE07 Improve the Management of Federal Assets Targeted for Disposition
--------------------------------------------------------------------------------
TRE07.02  Agencies should allow all            1
          Asset Forfeiture Fund's
          administrative costs to be
          paid from asset sales
          receipts.


 TRE16 Improve Agency Compliance with Employment Tax Reporting Requirements
--------------------------------------------------------------------------------
TRE16.01  IRS should ensure that all           1
          federal executive agencies
          conform with the Internal
          Revenue Code reporting
          requirements related to
          payments to independent
          contractors.

TRE16.02  The Financial Management             1
          Service and OMB must encourage
          closer coordination between
          agency procurement and
          financial management/
          accounting functions to ensure
          compliance.


 USDA01 End the Wool and Mohair Subsidy
--------------------------------------------------------------------------------
USDA01.0  Legislation should be enacted        1
1         to eliminate federal support
          payments for wool and mohair.


 USDA03 Reorganize USDA to Better Accomplish Its Mission, Streamline Its
Field Structure,
and Improve Service to Its Customers
--------------------------------------------------------------------------------
USDA03.0  The Secretary of Agriculture         1
2         should submit legislation to
          implement the new
          organizational structure to
          enhance the delivery of USDA
          services.


 USDA06 Encourage Better Food Package Management Practices and Facilitate
Multistate Contracts for Infant Food and
Formula Cost Containment in the Women, Infants
--------------------------------------------------------------------------------
USDA06.0  USDA should assume a                 1
1         leadership role in cost-
          containment efforts and focus
          on cost containment for
          additional items in the WIC
          food package, such as infant
          cereal, juice, and other food
          products.
--------------------------------------------------------------------------------



(See figure in printed edition.)Appendix III
COMMENTS FROM NPR
========================================================== Appendix II



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)


GAO'S RESPONSE

Our response to NPR's comments of the National Performance Review
(NPR) on specific action items follows. 


         DOC10.05
---------------------------------------------------- Appendix II:0.0.1

We considered this action item to be only partially implemented
because the effectiveness of the National Trade Data Bank marketing
plan has not been evaluated.  Although an increase in sales is a
clear indicator of success for the Bank, without an evaluation it
cannot be determined that the marketing plan led to the increased
sales. 


         DOE01.08
---------------------------------------------------- Appendix II:0.0.2

NPR's records classified this action item as "substantially
completed, further action not expected." The action item calls for
audits that are both systematic and timely on costs incurred by every
contractor.  While DOE is working on the backlog of audits, it did
not provide documentation showing that audits are being done in a
timely manner as called for in the action item. 


         DOI02.06
---------------------------------------------------- Appendix II:0.0.3

NPR's records classified this action item as "substantially
completed, further action not expected." The action item calls for
the Surface Mining Control and Reclamation Act to be amended by
Congress to make the states responsible for administering the Rural
Abandoned Mine Program.  This had not occurred, as of April 12, 1996. 
Instead, the Office of Surface Mining Reclamation and Enforcement
proposed to accomplish this objective by requesting no funding for
the program in fiscal year 1996, which would end federal program
administration for that year.  However, funding for the program could
be restored in future fiscal years. 


         DOI03.03
---------------------------------------------------- Appendix II:0.0.4

The action item calls for the Federal Geographic Data Committee
(FGDC) to submit a schedule and funding plan to the Office of
Management and Budget (OMB).  Department of the Interior (DOI)
officials have submitted a conceptual framework to OMB that does not
contain a funding plan as called for in the action item. 


         DOI03.04
---------------------------------------------------- Appendix II:0.0.5

The action item calls for FGDC to establish standards and a funding
plan for thematic data sets by September 1994.  Although FGDC
submitted a funding plan, the work on the standards is still in
process and has not been completed.  NPR noted in its comments that
it is a "longer term effort and is continuing."


         DOI13.03
---------------------------------------------------- Appendix II:0.0.6

The Bureau of Mines was abolished.  As we noted in our comments in
appendix II on this action item, the Bureau of Mines' helium program
was transferred to the Bureau of Land Management, which has yet to
identify or discontinue nonrevenue-producing operations as called for
in the action item. 


         DOJ05.01
---------------------------------------------------- Appendix II:0.0.7

NPR's records classified this action item as "substantially
completed, further action not expected." The Bureau of Prisons (BOP)
has had a dramatic increase in the pass rate for the general
equivalency diploma (GED) program.  However, BOP did not provide data
showing that it had succeeded in increasing program participation,
which is what is called for in the action item. 


         DOJ08.03
---------------------------------------------------- Appendix II:0.0.8

After reviewing the Immigration and Naturalization's (INS) comments
and better understanding its interpretation of the action item, we
revised our assessment to fully implemented.  There is no dispute
that INS reorganized on October 1, 1994, and that the intent of the
reorganization was to enable INS to better meet its responsibilities. 
We based our original classification on the lack of evidence that the
reorganization's objectives have been realized.  While such evidence
is still lacking, we changed the classification to fully implemented
in deference to INS' assertion that the ambiguous wording of the
action item required only the reorganization, not actual achievement
of its objectives.  We provide comments on this action item in
appendix II. 


         DOJ09.01
---------------------------------------------------- Appendix II:0.0.9

NPR's records classified this action item as "substantially
completed, further action not expected." We determined that the staff
productivity is not being tracked, as called for in the action item. 
In its comments, NPR said that staff productivity was not part of the
original action item.  However, our review of NPR's records indicates
that staff productivity was a part of the action item; NPR documents
provided to us as recently as March 15, 1996, contained the exact
wording that is cited in appendix II. 


         DOS02.01
--------------------------------------------------- Appendix II:0.0.10

NPR's records classified this action item as "substantially
completed, further action not expected." We agree with NPR's
assessment because although the State Department has implemented
reforms to present an integrated resource management process for
Budget Function 150, it lacks the authority to make resource
decisions for other agencies in the Budget Function 150 account. 


         DOS08.01
--------------------------------------------------- Appendix II:0.0.11

While the action item does not call for the State Department to
evaluate overseas medical expenses, it does require the department to
"ensure" that such expenses are accurately identified and reported by
each embassy.  However, the State Department does not know whether,
or the extent to which, all embassies are following the new
procedures. 


         DOT07.01
--------------------------------------------------- Appendix II:0.0.12

At the time we completed our audit work, the Federal Aviation
Administration (FAA) would not provide the results of its cost
allocation study in which it determined that foreign carriers should
pay user fees and told us that a more exhaustive study was under way. 
Subsequently, the Department of Transportation (DOT) provided its
fiscal year 1997 budget request to Congress proposing $150 million in
user fee revenues, which FAA officials say will include fees for
international overflights.  After testifying on plans to introduce
user fees, FAA disclosed the results of its cost allocation
study--allowing us to change the status of this action item to fully
implemented.  FAA continues to work with Congress on implementing
user fees. 


         DOT22.01
--------------------------------------------------- Appendix II:0.0.13

After receiving NPR's comments, we again contacted DOT.  DOT
officials provided documentation that the Office of Motor Carriers
(OMC) had employed alternative means to use safety and other data to
carry out inspections and other functions by the end of fiscal year
1995.  Therefore, we changed our determination of the status of this
action item to "other" and concurred with DOT that the item is fully
implemented through other means. 


         DOT22.02
--------------------------------------------------- Appendix II:0.0.14

After receiving NPR's comments, we again contacted DOT.  DOT
officials provided documentation that OMC had, as called for in the
action item, developed an alternative resource allocation model,
which it began implementing in fiscal year 1995.  Therefore, we
changed our determination of the status of this action item to
"other" and concurred with DOT that the item is fully implemented
through other means. 


         DVA10.02
--------------------------------------------------- Appendix II:0.0.15

The Secretary of Veterans Affairs (VA) issued a departmentwide policy
in a September 20, 1994, letter that announced that VA customer
service standards will be implemented.  We do not consider this
sufficient evidence of a "departmentwide policy" for collecting and
responding to veterans' suggestions and concerns as called for in the
action item.  The other actions that VA has taken and that it
discusses in its response do not apply to the entire department, only
to a single component--the Veterans Health Administration. 


         DVA10.03
--------------------------------------------------- Appendix II:0.0.16

We recognize that VA has established customer service standards and
has taken a number of steps to improve its ability to identify
customer concerns.  However, we believe VA should develop mechanisms
to respond to identified customer concerns before classifying this
action item "fully implemented." Except for the section on the
Veterans Health Administration, VA's 1995 Customer Service Plan
provides few specifics on how VA components will develop
"comprehensive" approaches for responding to customer concerns as
called for in the action item. 


         DVA10.04
--------------------------------------------------- Appendix II:0.0.17

As VA noted in its response, we recognize the progress it has made
with veterans service organizations' (VSO) consultations under the
current Secretary.  We are not attempting to impose additional
standards on VA, but we believe that written policies to guide VA
under future Secretaries are an important part of "a comprehensive
approach" to improving VSO coordination as called for by the action
item. 


         ED05.09
--------------------------------------------------- Appendix II:0.0.18

Evidence exists that the Department of Education has made a
substantial effort to notify applicants of the status of their
application as called for by the action item and that the Department
may have done as much as possible under current budgetary
circumstances.  However, we found no evidence showing that the steps
it has taken allowed sufficient time for applicants to seek other
sources of funding. 


         ED11.01
--------------------------------------------------- Appendix II:0.0.19

We determined that this action item was partially completed under the
reorganization of the Office of Educational Research and Improvement
because only one of five recommendations cited in the action item was
implemented.  The legislative implementation did more than establish
the advisory board.  However, no evidence was available showing that
the recommended changes in the education research structure have been
implemented, that the Office of Reform Assistance and Dissemination
was established to coordinate the integration of research, or that
the Office of Educational Research and Improvement reports research
findings directly as called for in the action item. 


         FM02.05
--------------------------------------------------- Appendix II:0.0.20

Together, the Joint Financial Management Improvement Program
Framework for federal financial management systems and the Federal
Financial Management Status Report and Five Year Plan represent a
good start toward achieving a number of needed financial management
improvements.  But neither provides a detailed approach for
developing an integrated budget and financial information strategic
plan as called for in this action item.  In addition, a pilot is
ongoing to collect integrated budget and financial data at selected
agencies but does not represent a full implementation of the action
item. 


         HRM06.01
--------------------------------------------------- Appendix II:0.0.21

The action item calls for deregulating training.  The previous
federal training law was implemented through nine pages of
regulations issued by the Office of Personnel Management (OPM).  The
new law amended parts of the previous law.  After the passage of the
new law, OPM acknowledged the need for new regulations by publishing
in the Federal Register its intent to propose such regulations.  New
regulations are apparently necessary for OPM to reconcile the changes
made by the new law with the old regulations.  As yet, more than 2
years after the passage of the new law, OPM has not proposed the new
regulations it said were needed.  If and when new final regulations
are issued, they can be assessed to determine if they deregulate
training as called for by the action item. 


         HRM07.01
--------------------------------------------------- Appendix II:0.0.22

The action item as published by NPR calls for the implementation of
family friendly workplace practices, not, as stated by NPR, "a
presidential directive."


         HRM14.02
--------------------------------------------------- Appendix II:0.0.23

The action item as published by NPR calls for decentralizing "the
authority to approve" early retirements.  This has not been done. 
OPM's guidance to agencies of March 24, 1994, states that "agency
headquarters can now request [from OPM] early retirement authority on
as broad or narrow a basis as the agency chooses." OPM has not given
agencies the authority to decide on their own when to approve early
retirements. 


         ICS01.01
--------------------------------------------------- Appendix II:0.0.24

This action item calls for each agency serving the public to provide
evidence that it has issued standards and has initiated a customer
service program.  While a large number of agencies directly serving
the public have developed customer service standards, we were unable
to determine the total universe of agencies that serve the public,
and NPR was unable to provide us such information.  NPR was also
unable to provide documentation that each agency serving the public
had initiated a customer service program. 


         NASA05.06
--------------------------------------------------- Appendix II:0.0.25

NPR's own classification of this action item stated that it was only
"substantially completed, further action not expected." The National
Aeronautics and Space Administration (NASA) is providing assistance,
as called for in the action item, which is an ongoing effort.  Our
determination is based on the concern that the effort may cease to be
ongoing because of indications that NASA's role in the program may be
significantly changing.  Given that uncertainty, we feel that NASA's
ultimate role must be clarified for this action item to be considered
fully implemented. 


         PROC01.01
--------------------------------------------------- Appendix II:0.0.26

The OMB/NPR comments are based on a revised version of NPR's
originally published action item.  The wording of the action item--as
published in NPR's report, dated September 1993--is "Convert the
Federal Acquisition Regulation (FAR) from rigid rules to guiding
principles" and not "OMB should develop a plan to convert" as OMB and
NPR have more recently stated.  As we note in our comments in
appendix II, while a plan to rewrite FAR was developed, the rewrite
has not advanced as planned, and FAR has not been converted from
rigid rules to guiding principles. 


         PROC06.06
--------------------------------------------------- Appendix II:0.0.27

The agency/NPR comments are based on a revised version of NPR's
originally published action item.  The agencies and NPR said in their
comments that we imposed a "wait and see" standard that was not part
of the action item.  We disagree.  The standard we used is the
wording of the action item--as published in NPR's report, dated
September 1993.  This action item states:  "Identify and eliminate
causes of protests and improve agency processes" and not, as the
agencies and NPR have more recently stated:  "identify causes of
protests and provide the Director, OMB, with recommendations to
eliminate the causes of protest and improve agency processes."
(Underlining added.) Providing the Director, OMB, with such
recommendations does not constitute full implementation of the action
item as originally published. 


         SMC02.03
--------------------------------------------------- Appendix II:0.0.28

Information provided by OMB indicates that the effort to complete
this action item is in its early stages, that only four agencies have
developed training materials, and that no means are in place to
readily track or measure the percentage of managers who have been
provided revised training.  While actions that agencies have taken to
date are good initial steps, it is premature to classify this action
item as fully implemented.  A sustained effort will be needed to
ensure that additional agencies make commitments to revise their
training and that they follow through on these commitments in order
for the action item to be fully implemented. 


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