Show
Management Reform: Implementation of the National Performance Review's
Recommendations (Letter Report, 12/05/94, GAO/OCG-95-1).
Issued in September 1993, the National Performance Review (NPR)--the
administration's attempt to "reinvent government"--contains 384 major
recommendations covering 27 federal agencies and 14 government systems,
such as procurement, personnel, and budgeting. Some progress has been
made in implementing many of the NPR recommendations since September
1993, but few have been fully implemented and a number of measures will
take years. GAO generally agrees with the thrust of most of the
recommendations and supports their continued implementation. However,
several steps must be taken to achieve budgetary savings and improve
government management. GAO still believes that NPR's success hinges on
a legislative-executive partnership for action, attention to agencies'
capacities, and sustained political and career leadership. GAO also
believes that government "reinvention" requires the executive branch and
Congress to shift the focus of government management and accountability
from an emphasis on inputs, outputs, and processes to an emphasis on
outcomes and results.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: OCG-95-1
TITLE: Management Reform: Implementation of the National
Performance Review's Recommendations
DATE: 12/05/94
SUBJECT: Accountability
Oversight by Congress
Financial management
Federal agencies
General management reviews
Productivity
Total quality management
Public administration
IDENTIFIER: NAFTA
GMR
TQM
National Health Care Reform Initiative
Clinton Health Care Plan
Peace, Prosperity, and Democracy Act of 1994
OMB 2000
National Performance Review
Government Reform and Savings Act of 1993
Water Resources Development Act of 1994
Government Downsizing, Performance and Accountability Act
of 1994
Department of Energy Reform and Savings Act of 1993
Bonneville Power Administration Refinancing Act
Federal Cogeneration Act of 1993
North American Free Trade Agreement
Community Development, Banking, and Financial Institutions
Act of 1993
Local Empowerment and Flexibility Act of 1994
Information Technology Applications Act of 1994
Health Security Act
Employee Retirement Income Security Act of 1994
Medical Device User Fee Act of 1994
Housing and Community Development Act of 1994
Housing Choice and Community Investment Act of 1994
California Desert Protection Act
Reemployment Act of 1994
Comprehensive Occupational Safety and Health Reform Act
Competitiveness Act of 1994 (National)
International Broadcasting Act of 1994
Board of Veterans Appeals Administrative Procedures
Improvement Act of 1994
Report Elimination and Modification Act of 1994 (Federal)
Legislative Reorganization Act of 1994
Expedited Rescissions Act
Federal Acquisition Streamlining Act
Federal Mandate, Reduction, Reform, and Budget Act of 1993
Federal Mandates Relief Act of 1993
Community Regulatory Relief Act
**************************************************************************
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Cover
================================================================ COVER
Report to Congressional Requesters
December 1994
MANAGEMENT REFORM - IMPLEMENTATION
OF THE NATIONAL PERFORMANCE
REVIEW'S RECOMMENDATIONS
GAO/OCG-95-1
Implementation of NPR's Recommendations
Abbreviations
=============================================================== ABBREV
ACIR - x
ACUS - x
ADP - x
ADR - x
AE - x
AFDC - x
AFLCIO - x
AID - x
AMD - x
AML - x
AOA - x
AOUSC - x
APA - x
ASA - x
ATC - x
ATF - x
ATN - x
AWACS - x
BATF - x
BEA - x
BGT - x
BLM - x
BLS - x
BOM - x
BOP - x
BOR - x
BPA - x
BPR - x
CAIVRS - x
CAMS - x
CASU - x
CBO - x
CD - x
CEFMS - x
CERCLA - x
CFO - x
CFR - x
CHCS - x
CINRO - x
CO - x
COLLECTOR - x
COM - x
COSHRA - x
CPE - x
CPI - x
CRA - x
CSRS - x
CW - x
DALRO - x
DASC - x
DBOF - x
DCI - x
DDM - x
DEA - x
DES - x
DIC - x
DLA - x
DOC - x
DOD - x
DOE - x
DOI - x
DOJ - x
DOL - x
DOS - x
DOT - x
DVA - x
EAS - x
EBT - x
EC - x
ECA - x
ECIE - x
ED - x
EDA - x
EDGAR - x
EDI - x
EEO - x
EEOC - x
EFT - x
EMAIL - x
EMTF - x
ENV - x
EO - x
EOP - x
EOS - x
EOSDIS - x
EPA - x
EPAS - x
EPIC - x
ERISA - x
ESEA - x
ETA - x
FAA - x
FAI - x
FAR - x
FASAB - x
FAX - x
FBI - x
FBO - x
FCCSET - x
FDA - x
FDGC - x
FDIC - x
FDP - x
FDSLP - x
FECA - x
FEDSTRIP - x
FEMA - x
FEMP - x
FEWS - x
FFL - x
FFS - x
FGDC - x
FHA - x
FHWA - x
FIFRA - x
FINCEN - x
FIPS - x
FIRMR - x
FLETC - x
FM - x
FMFIA - x
FmHA - x
FMS - x
FNS - x
FOIA - x
FPI - x
FPM - x
FPMR - x
FQI - x
FRA - x
FRB - x
FS - x
FSL - x
FSN - x
FTA - x
FTE - x
FTS - x
FWS - x
GATT - x
GBL - x
GCS - x
GED - x
GII - x
GITS - x
GM - x
GPO - x
GPRA - x
GS - x
GSA - x
GSBCA - x
HCFA - x
HHS - x
HMLC - x
HOME - x
HR - x
HRM - x
HSS - x
HUD - x
IC - x
ICR - x
ICS - x
IDI - x
IFMS - x
IG - x
IHA - x
INEL - x
INS - x
INTEL - x
INTRADEX - x
IPO - x
IPP - x
IRM - x
IRMGGD - x
IRMHEHS - x
IRMPI - x
IRMRCED - x
IRS - x
ISB - x
ISTEA - x
IT - x
JC - x
JDIC - x
JFMIP - x
JPL - x
JPSM - x
JSPM - x
JTPA - x
LRAO - x
LRIP - x
LUST - x
MAP - x
MAS - x
MBDA - x
MCCR - x
MED - x
MILSTRIP - x
MITRE - x
MMS - x
MOU - x
MSHA - x
MTPE - x
MUFFIN - x
MVR - x
MWR - x
NAFTA - x
NAFTAPL - x
NASA - x
NBS - x
NCS - x
NDIC - x
NEC - x
NECPA - x
NEW - x
NHS - x
NIDRR - x
NIH - x
NOAA - x
NPC - x
NPDES - x
NPR - x
NPS - x
NRC - x
NSDI - x
NSEA - x
NSF - x
NSLI - x
NSTC - x
NTDB - x
O&M - x
OCC - x
OCEA - x
OCFO - x
OECA - x
OERI - x
OFCCP - x
OFPP - x
OGC - x
OIAP - x
OIG - x
OIRA - x
OM - x
OMB - x
OMBS - x
OMC - x
OPAC - x
OPM - x
OPMS - x
OPP - x
OPPT - x
OPS - x
ORG - x
OSHA - x
OSI - x
OSM - x
OTA - x
OTS - x
OVAE - x
PAL - x
PCIE - x
PFS - x
PHA - x
PIC - x
PL - x
PMA - x
PMC - x
PMO - x
PRA - x
PRISM - x
PROC - x
PSC - x
PT - x
PWBA - x
QC - x
QUAL - x
R&D - x
RAMC - x
RAMP - x
RAP - x
RCG - x
RCRA - x
RD - x
REDSO - X
REG - x
RFA - x
RFE - x
RIF - x
RL - x
RMP - x
ROM - x
RSPA - x
RTC - x
RWG - x
SBA - x
SBDC - x
SES - x
SMC - x
SMCRA - x
SOL - x
SPAS - x
SPD - x
SRPA - x
SSA - x
SUP - x
TEC - x
TMAC - x
TPCC - x
TPRG - x
TQM - x
TRE - x
TSM - x
UDSA - x
UI - x
USAID - x
USC - x
USDA - x
USFS - x
USGLI - x
USIA - x
USPS - x
USTR - x
VA - x
VBA - x
VETS - x
VHA - x
VOA - x
VSLI - x
VSO - x
WA - x
WCF - x
WIC - x
WRSP - x
Letter
=============================================================== LETTER
B-255769.3
December 5, 1994
The Honorable John Conyers, Jr., Chairman
The Honorable William F. Clinger, Jr.
Ranking Minority Member
Committee on Government Operations
House of Representatives
The Honorable John Glenn, Chairman
The Honorable William V. Roth, Jr.
Ranking Minority Member
Committee on Governmental Affairs
United States Senate
The Honorable John R. Kasich
Ranking Minority Member
Committee on the Budget
House of Representatives
This report responds to your requests that we monitor the
implementation of the recommendations contained in the National
Performance Review's (NPR) September 7, 1993, report.\1 NPR, under
the direction of the Vice President, is a major management reform
initiative by the administration and is intended to identify ways to
make the government work better and cost less. The NPR report
contained 384 major recommendations covering 27 federal agencies and
14 government systems, such as procurement, human resource
management, and budgeting. In this report, we categorize and
describe our findings regarding the implementation of each of these
recommendations.
In our initial comments on the NPR recommendations in December 1993,
we generally agreed with most of the proposed changes.\2
However, we had insufficient information to judge nearly one-third of
the recommendations, primarily because the intent of the
recommendations was not clearly explained in the NPR report or
because we had not done work related to the recommendations. At the
time our report was issued, none of the NPR accompanying reports
describing the recommendations in more detail had been released. By
September 7, 1994, NPR had released 29 such reports, each of which
describes the recommendations in greater detail and lists specific
actions that NPR believes should be taken to implement the
recommendations.\3 We have also completed a number of reviews on
NPR-related topics since December 1993. Because of the additional
information now available, this report also reassesses our comments
regarding the NPR recommendations.
--------------------
\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 Management Reform: GAO's Comments on the National Performance
Review's Recommendations (GAO/OCG-94-1, Dec. 3, 1993).
\3 See appendix I for a list of the accompanying reports issued by
September 7, 1994.
RESULTS IN BRIEF
------------------------------------------------------------ Letter :1
Some progress has been made in implementing many of the NPR
recommendations since September 1993, but few have been fully
implemented. A number of the recommendations will take years to
fully implement.
We generally agree with the thrust of most of the recommendations and
support their continued implementation. However, a number of actions
are needed to achieve budgetary savings and improve government
management. We still believe that NPR's success depends on a
legislative-executive partnership for action, attention to agencies'
capacities, and sustained political and career leadership.
We also believe that government "reinvention" requires the executive
branch and Congress to shift the focus of government management and
accountability from an emphasis on inputs, outputs, and processes to
an emphasis on outcomes and results--consistent with the Government
Performance and Results Act of 1993.
OBSERVATIONS ABOUT NPR
IMPLEMENTATION
------------------------------------------------------------ Letter :2
The recommendations NPR made in its September 1993 report address an
amalgam of issues and propose a range of solutions. Some of the
recommendations could be implemented relatively easily (e.g., "create
an interagency regulatory coordinating group"); others will take
years to put in place (e.g., "fully integrate budget, financial, and
program information"). Some of the recommendations were very broad
(e.g., "redefine and restructure OPM's functional responsibilities");
others were more specific (e.g., "establish a hardrock mine
reclamation fund"). Some recommendations cut to the core of how
government operates (e.g., "improve legislative-executive branch
relationship"); others, while important, were on relatively
tangential topics (e.g., "establish federal firearms license user
fees to cover costs"). Because of these differences, we assessed
NPR's progress recommendation by recommendation. Although we present
some summary statistics, the diverse scope of the recommendations
should be kept in mind in interpreting NPR's overall progress.
MOST RECOMMENDATIONS ACTED
UPON, BUT FEW FULLY
IMPLEMENTED
---------------------------------------------------------- Letter :2.1
At least some action had been taken to implement 355 (93 percent) of
the 384 NPR recommendations when we completed our analysis. Of
these,
-- 15 (4 percent) had been fully implemented;
-- 143 (37 percent) had been partially implemented;
-- 193 (50 percent) were acted upon in some manner (e.g.,
legislation was introduced or the agency was in the process of
making suggested changes), but the action had not proceeded to
the point that we considered any of the recommendations' goals
to have been achieved; and
-- 6 (2 percent) were acted upon in a manner generally consistent
with the recommendations' purposes, although not in the manner
NPR suggested.
Of the remaining 27 recommendations, no action had been taken to
implement 18 (5 percent), and we had insufficient information to
judge the status of 9 recommendations (2 percent).
MODE OF RECOMMENDATION
IMPLEMENTATION VARIED
---------------------------------------------------------- Letter :2.2
A variety of types of actions have been taken to attempt to implement
the NPR recommendations. The most common type was action by a
particular agency or set of agencies; of the 384 recommendations, at
least 292 were acted upon in this manner.\4 The second most common
mode of action was legislative activity; bills were introduced
regarding at least 169 recommendations and legislation was enacted
regarding at least 83 recommendations. At least 86 recommendations
were acted on via executive orders, presidential
memoranda/directives, or other types of presidential action.
--------------------
\4 The number of implementation actions listed in this section totals
more than the number of recommendations because a single
recommendation may have been acted upon in more than one fashion
(e.g., both legislation and agency action).
SOME IMPLEMENTATION ACTIONS
BEGAN PRIOR TO THE NPR
REPORT
---------------------------------------------------------- Letter :2.3
Actions were already under way to implement a number of the
recommendations before the recommendations were made in the September
1993 NPR report. For example, one of the actions NPR recommended to
improve federal regulatory systems stated that regulatory agencies
should "rank the seriousness of environmental, health, or safety
risks." However, as the NPR accompanying report noted, the
Environmental Protection Agency published a rank-order listing of
environmental risks in 1987. In some cases, the NPR recommendations
themselves recognized that such actions were already under way. For
example, the Department of the Treasury recommendation to "increase
IRS collections through better compliance efforts" said NPR "supports
the current efforts of the IRS . . . to improve voluntary
compliance and other efforts to collect taxes already owed to the
federal government." Thus, NPR cannot claim total credit for the
implementation of some of the recommendations. However, in some
cases the designation of an issue as an NPR recommendation did seem
to stimulate action in areas that had been relatively dormant. For
example, the repeal of the wine and flavors tax credit had been
recommended in the past, but since NPR made its recommendation,
legislation has been drafted to repeal the credit.
GAO GENERALLY AGREES WITH MOST
NPR RECOMMENDATIONS
------------------------------------------------------------ Letter :3
In our December 1993 report on NPR, we said that NPR emphasized many
of the basic themes that we have stressed for years and that we
generally agreed with most of its recommendations. Our reassessment
of NPR's recommendations in light of the release of accompanying
reports for most of the NPR issue areas and the completion of
additional GAO work has generally confirmed that level of agreement.
We now "agree" or "generally agree" with more than three-fourths
(295) of the 384 NPR recommendations.
However, in a few cases our reconsideration resulted in our
disagreeing with recommendations. Whereas we disagreed with only one
NPR recommendation in our December 1993 report, we now disagree with
three recommendations: (1) that to allow power marketing
administrations to recover more operating costs would "increase
electrical power revenues" at the Department of Energy (DOE04), (2)
to "create a boundary-spanning workforce development council" at the
Department of Labor (DOL09), and (3) to allow the Small Business
Administration to "guarantee loans made by banks to nonprofit
intermediaries" (SBA05). We still have insufficient information to
comment on another 86 recommendations.
MANY RECOMMENDATIONS WITH
POTENTIAL SAVINGS HAVE NOT BEEN
IMPLEMENTED
------------------------------------------------------------ Letter :4
A number of the recommendations that NPR said would yield substantial
budget savings between fiscal years 1995 and 1999 have not been
implemented. These recommendations, and the savings NPR said would
accrue during this period, include those to
-- improve Social Security Administration disability claims
processing (HHS06)--$4.01 billion,
-- redirect Department of Energy laboratories to post-Cold War
priorities (DOE06)--$2.15 billion,
-- institute and collect user fees on the Food and Drug
Administration's inspection and approval processes
(HHS10)--$1.44 billion, and
-- administer the employment and training requirements for food
stamp recipients more effectively and efficiently
(USDA05)--$1.04 billion.
We agree or generally agree with all of these recommendations, but
none of them has been even partially implemented. The Congressional
Budget Office has not independently assessed the potential budget
savings associated with these recommendations, so it is not clear
whether NPR's savings estimates are accurate. Consensus is needed
regarding which NPR recommendations hold the greatest promise for
significant budget savings. Prompt action should then be taken to
consider those recommendations.
MANY MANAGEMENT ISSUES NOT
ADDRESSED BY NPR
RECOMMENDATIONS
------------------------------------------------------------ Letter :5
The 384 NPR recommendations touch upon a wide range of issues in need
of improved management. However, many critical management issues
were not discussed in NPR's report. For example, although the NPR
recommendations were related to 13 of the 18 GAO-designated high-risk
areas and 34 of the 84 OMB-designated high-risk areas,\5 the
recommendations did not touch upon such high-risk issues as
the Farmers Home Administration's farm loan programs,
defense weapon systems acquisition,
defense contract pricing,
defense inventory management,
program monitoring at the Department of Education,
nuclear safety or waste storage and disposal at the Department of
Energy,
grantee systems and financial controls at the Employment and
Training Administration,
acquisition systems at the Federal Aviation Administration (FAA),
and
direct and guaranteed loan programs at the Department of Veterans
Affairs.
The NPR recommendations also did not address nearly three-fourths of
what we consider the most important management problems in 23 federal
agencies. For example, in addition to many of the high-risk areas
discussed previously, problem areas not considered by NPR include
lack of effective controls over Department of Defense
disbursements,
weak internal control procedures and inadequate managerial
information systems within the Food and Drug Administration,
inadequate project management and planning of the Department of
Energy,
shortfalls in FAA's airline inspection program.
Identifying these management issues that were not addressed by the
NPR recommendations does not mean that the recommendations NPR made
are not important or appropriate. Our general agreement with most of
the recommendations illustrates our support for the administration's
effort and our belief that the vast majority of the recommendations
should be implemented as quickly as possible. We highlight these
other issues to demonstrate that full implementation of the NPR
recommendations is not all that is needed to improve government
management. The issues not covered by the NPR recommendations also
represent significant additional opportunities to make the government
"work better and cost less."
--------------------
\5 See Improving Government: Actions Needed to Sustain and Enhance
Management Reforms (GAO/T-OCG-94-1, Jan. 27, 1994) for a description
of the GAO high-risk areas. See the Budget of the United States
Government, Fiscal Year 1995: Analytical Perspectives, pp. 273-298
for a description of the OMB high- risk areas.
EXECUTIVE-CONGRESSIONAL
PARTNERSHIP, STRONG LEADERSHIP,
AND ATTENTION TO AGENCIES'
CAPACITIES STILL NEEDED
------------------------------------------------------------ Letter :6
In our December 1993 report, we emphasized three themes that we
believed were crucial to the long-range success of the NPR effort:
(1) the administration must work in partnership with Congress, (2)
attention should be paid to agencies' capacities to take on the
additional responsibilities NPR envisions, and (3) sustained
attention is needed from top political and career leadership. Events
during the past year have confirmed the importance of these issues.
According to NPR staff, 173 of the 384 recommendations require
legislative action in order to be fully implemented. However, at
least tacit approval by Congress is necessary to implement virtually
all of the recommendations. Executive-congressional cooperation has
been evident regarding certain issues, such as procurement reform,
expansion of financial management initiatives throughout the
government, and authorization for employee buyouts to allow agencies
to downsize. However, more efforts toward executive-congressional
cooperation are needed. At least 106 of the 173 recommendations NPR
said required legislative action have not been implemented.
Even in those areas in which the executive and legislative branches
worked together, they sometimes disagreed over goals or approaches.
For example, while Congress authorized buyouts as a means of
downsizing the federal workforce, it also limited staff reductions in
certain agencies and occupational categories--actions that officials
at the Office of Management and Budget (OMB) said make it more
difficult to achieve the overall downsizing goals. We believe that,
to implement some of the more contentious and difficult changes NPR
recommended, Congress and the administration must develop mutually
agreed on goals and implementation strategies. The administration
and Congress need to do more joint problem solving if NPR
recommendations are to continue to be implemented.
We also remain concerned about whether agencies have the processes,
systems, and qualified staff needed to perform their current
missions, let alone take on the additional responsibilities NPR
envisions in a downsized, decentralized, and deregulated environment.
The downsizing of the federal workforce that NPR envisioned has
begun. OMB estimates that 71,000 full- time equivalent positions
were eliminated by the end of fiscal year 1994. Further reductions
over the next 4 years are expected to bring the federal workforce to
its lowest level since the mid- 1960s. However,
-- NPR's original goal of cutting more than 250,000 positions from
the federal workforce was not the result of careful workforce
planning;
-- agencies' workforce reductions, in many cases, have not been
preceded by the implementation of changes in work processes that
NPR said would enable the cuts to occur;
-- 11 of 30 agencies we surveyed earlier this year said that they
had not targeted the buyouts they used to encourage downsizing
on the "management control" positions NPR said should be
reduced;\6 and
-- some agencies have not ensured that critical skills needed for
program performance and the prevention of mismanagement are not
lost in their downsizing efforts.
We support efforts to move to a smaller, more efficient government.
However, we believe that any staff reductions should be done
strategically, with outcome-based strategic goals and sound workforce
plans being the cornerstones of agencies' downsizing strategies. We
also believe that agencies must reengineer outdated systems and
structures and enhance the quality of the remaining staff to ensure
that downsizing does not diminish program performance and increase
the potential for fraud, waste, and abuse. Without such changes, it
will not be possible to achieve many NPR objectives or correct other
federal management problems. Reductions in staff without careful
workforce planning and without making the changes in existing work
processes that can permit those reductions to occur may even
exacerbate existing problems and place the overall NPR effort in
jeopardy.
Finally, it is clear that, as the Vice President said, full
implementation of many of the NPR recommendations will take years.
Therefore, agencies' political and career leaders must take a strong
role in creating and guiding these long-term management improvement
efforts. The performance agreements signed by eight departmental
secretaries are examples of the type of leadership needed and are
good first steps in this endeavor. Agreements that concentrate on
the agencies' desired outcomes can serve as guides for performance
improvement. However, twice that number of other departmental and
agency executives were supposed to have signed such agreements but
have not yet done so. Also, most of the agreements signed thus far
lack the specificity needed to ensure effective guidance for agency
downsizing initiatives. Commitment and leadership by senior career
executives are also critical to the success of the NPR effort,
especially when one considers that the median tenure of senior
political appointees is about 2 years. Career managers can provide
the long-term focus needed to institutionalize NPR's reforms that
political executives' more limited tenure does not permit.
--------------------
\6 Federal Employment: The Results to Date of the Fiscal Year 1994
Buyouts at Non-Defense Agencies (GAO/T-GGD-94-124, Sept. 24, 1994).
REINVENTED GOVERNMENT REQUIRES
A CHANGE IN MANAGEMENT FOCUS
------------------------------------------------------------ Letter :7
The NPR report's recommendations were organized around four general
principles: cutting red tape, putting customers first, empowering
employees to get results, and cutting back to basics. Some progress
has been made toward each of these principles. For example, recent
changes in the federal procurement system will reduce some of the red
tape involved in federal agencies' acquisition systems. A number of
federal agencies have made public commitments to improve customer
service, and OMB has streamlined the clearance process for agencies'
voluntary customer surveys. The Department of Housing and Urban
Development has eliminated its regional offices in an effort to
improve accountability between headquarters and field office staff.
However, it is not always clear whether the red tape that is to be
eliminated also serves a useful purpose, who agencies' customers are,
whether accountability and internal controls will remain when
employees are empowered, and what nonbasic programs should be
eliminated.
NPR performed a service in highlighting many problems that needed to
be addressed and recommending solutions to these problems. However,
to be successful in the long run, NPR will need to sharpen its focus
and bind the recommendations together into a more coherent framework
that can better permit the government reform movement to take root
and flourish.
The needed framework is one that will produce a basic change in the
way government agencies and programs are managed by the executive
branch and overseen by Congress. Today, government management
primarily focuses on efficient use of inputs (e.g., the number of
dollars or staff allotted to an agency), adherence to legislative or
agency-developed rules, and the accomplishment of outputs (e.g., the
number of inspections completed or the number of claims processed).
Good managers are viewed as those who wisely manage their resources,
follow agency procedures, and perform the requisite number of
output-based tasks. A reinvented government, while not ignoring
input and process measures, should focus more on the accomplishment
of programmatic results. For example, in addition to being concerned
about the number of staff assigned to an issue or the number of
enforcement actions taken, those interested in effective government
management should also focus on whether the agency's mission (e.g.,
safer streets, effective collection of taxes, reduced infant
mortality) is being accomplished.
A number of NPR recommendations were intended to achieve more
results-oriented management. For example, NPR recommended that the
-- Agency for International Development reengineer management of
its projects and programs to emphasize program results (AID06);
-- Federal Emergency Management Agency create results-oriented
incentives to reduce the costs of a disaster (FEMA03);
-- Department of Labor shift the focus of the unemployment
insurance benefits quality control program from error
measurement to a constructive use of results (DOL21);
-- National Aeronautics and Space Administration's measurement of
technology transfer focus on results, not just levels of
activity (NASA02); and
-- Environmental Protection Agency establish measurable goals,
performance standards, and strategic planning (EPA07).
Although these recommendations were results oriented, the NPR report
did not clearly emphasize that these types of changes should be the
centerpiece of management reform. As the Brookings Institution's
study of reinventing government said, the long-term success of NPR
requires "a force at the center of government . . . to focus
government on results and avoid having the reform spin off into
scores of different, unconnected directions."\7
--------------------
\7 Donald F. Kettl, Reinventing Government?: Appraising the
National Performance Review, Brookings Institution's Center for
Public Management, August 19, 1994, p. viii.
SEVERAL FACTORS NEEDED TO
CHANGE MANAGEMENT FOCUS
---------------------------------------------------------- Letter :7.1
Our work indicates that several factors are necessary to make the
transition to a reinvented, results-oriented government. First,
agencies' goals must be clearly stated in outcome-based terms and
means developed to measure progress toward those goals. Second,
decisionmakers must have information--programmatic, financial, and
operational--to allow them to know whether agencies' goals are being
achieved and systems to bring that information to decisionmakers in a
timely manner. Finally, and perhaps most importantly, structures and
processes need to be established and used to reinforce the focus on
outcome-based management.
The legal imperatives needed to bring about a great deal of
government reinvention are already in place. The Government
Performance and Results Act of 1993 (GPRA) requires federal agencies
to
develop strategic plans by fiscal year 1998;
prepare annual plans setting performance goals beginning with
fiscal year 1999; and
report annually on actual performance toward achieving those goals,
with the first report due in March 2000.
As a result of these requirements, greater emphasis should be placed
on the results or outcomes of government programs. The intent of
GPRA is to improve the efficiency and effectiveness of federal
programs and services by requiring that managers set program
performance goals and measure results. Federal managers may also
propose waivers of certain administrative requirements that hinder
their ability to achieve these goals in return for increased
accountability for results. As will be discussed later, Congress
should be involved in the process of setting agencies' goals and
developing appropriate performance measures.
Another source of the information needed about government performance
should be the annual audited financial statement required under the
Chief Financial Officers (CFO) Act. Without this information,
legislative and executive branch leaders have been crippled in their
ability to control costs, evaluate performance, or implement
performance management improvements such as those envisioned in GPRA.
The Government Management Reform Act of 1994 recently expanded the
CFO Act's requirements to cover the entire operations of all 24 CFO
Act agencies and to require a consolidated financial statement of
executive branch agencies beginning in fiscal year 1997. We strongly
support these changes.
As noted previously, outcome-based management and reinvented
government also require the development of and investment in
information systems to collect and transmit programmatic and
financial information to decisionmakers. The federal government's
record of successfully implementing critical information systems to
support cost reduction and service improvements is poor. For years,
agencies have experienced unacceptable rates of project failure,
delay, and overspending and shown little evidence of returns on the
public's large investment in this area. Only with major shifts in
the strategic processes through which information and technology
assets are managed will the possibilities offered by modern
information technology be realized. The best practices used by
leaders in the field of information technology can provide valuable
lessons to government in this regard.\8
Outcome-based goals, accurate performance data, and state-of-the- art
information systems are of little value unless they are used by
decisionmakers. Therefore, leaders in both the executive and
legislative branches of government must also focus on achieving
results. OMB and Congress, like agency managers, have historically
focused on inputs, processes, and outputs. However, changes
currently under way at OMB have the potential to alter that focus in
the executive branch. The reorganization of the agency under the
banner of "OMB 2000" and the associated melding of the management and
budget roles of the agency represent an opportunity for OMB to focus
on management and programmatic results during the budget process. If
this change is accomplished, agencies may be expected to state, in
outcome-based terms, what can be expected given certain budgetary
levels. Agencies could then be held accountable for producing
specific results from their programs. How implementation of OMB 2000
occurs may have a great impact on the success or failure of
results-oriented management.
Similar changes are needed in the authorization, appropriation, and
oversight activities of Congress. For example, some agencies'
missions are legislatively defined in multiple and sometimes
conflicting ways. As a case in point, the Agency for International
Development (AID) currently has nearly 40 legislative missions, from
agricultural development to furthering human rights. These varied
missions create confusion as to what Congress intends AID to
accomplish and make it difficult to hold the agency accountable for
accomplishing its objectives. For AID to clearly state and
accomplish its mission, Congress needs to clarify its legislative
underpinnings.
Also, although some congressional oversight has focused on agencies'
performance, a great deal of Congress' attention has been devoted to
the process of management rather than on the results of management.
NPR clearly envisioned changes in that focus when it recommended that
Congress
-- reduce "overitemization" in appropriation accounts and align
those accounts with programs (BGT03),
-- eliminate employment ceilings and floors by allowing agencies to
manage within their budgets (BGT04),
-- reduce procedural restrictions such as those on the Department
of Housing and Urban Development's sale of multifamily
properties (HUD02), and
-- reduce the number of congressionally mandated reports (SMC06).
One reason for Congress' focus on agency processes has been the
general absence of reliable performance data. The implementation of
GPRA and the expansion of the CFO Act should help alleviate this
problem and can serve as the means by which Congress can better focus
on results. However, the development of performance data and their
use by Congress are mutually reinforcing. The long-term success of
GPRA and the movement to a new mode of government management and
accountability depends on Congress having the requisite data and
moving from a focus on inputs, outputs, and procedural issues to an
emphasis on establishing clear agency missions and goals and focusing
on outcomes and results.
The experiences of various states and foreign countries that are
among the leaders in management reform suggest that a movement to
results-oriented management will not be easy or quickly accomplished.
We also realize that outcome-based measures of government performance
are more appropriate and are more easily set in some areas than in
others. While the challenges are difficult, we believe that the
potential benefits from a change in government management are great
and we are encouraged by the initial progress that has been made.
--------------------
\8 Executive Guide: Improving Mission Performance Through Strategic
Information Management and Technology (GAO/AIMD-94-115, May 1994).
OBJECTIVES, SCOPE, AND
METHODOLOGY
------------------------------------------------------------ Letter :8
Our primary objectives in this assignment were to (1) assess the
implementation of the NPR recommendations 1 year after their
publication and (2) to reassess our December 1993 comments regarding
those recommendations in light of the publication of NPR accompanying
reports and our additional audit work. To accomplish the first
objective, we used our completed and ongoing work to place each of
the 384 NPR recommendations into 1 of the following 6 implementation
categories:
(1) Fully Implemented. The entire recommendation and/or all action
items in a related accompanying report have been fulfilled.
(2) Partially Implemented. The recommendation and/or associated
action items have been implemented in part but not in total.
(3) Not Implemented--Action Taken. No part of the recommendation or
associated action items has been implemented, but some action has
been taken to implement the recommendation and/or the action items.
For example, if legislation has been introduced that would address
the recommendation but has not been enacted into law, we categorized
the recommendation as "not implemented--action taken."
(4) Not Implemented--No Action Taken. No part of the recommendation
or associated action items has been implemented, and no action has
occurred toward the implementation of the recommendation or the
action items.
(5) Insufficient Information. Insufficient or conflicting evidence
prevented us from determining the status of implementation.
(6) Other. Implementation action has occurred that, while not
responsive to the letter of the recommendation, is generally
consistent with its purpose.
We contacted agency officials identified by NPR as responsible for
each recommendation and determined what had been done to implement
the recommendations. Where appropriate, we also obtained any
available documentation of action to implement the recommendations.
Unless otherwise noted, the data on implementation of the NPR
recommendations were gathered as of September 7, 1994--the 1-year
anniversary of the NPR report.
We could assess the implementation status of only one of the
recommendations directed toward the intelligence community because
the Director of Central Intelligence would not provide the necessary
information. The implementation status of some recommendations in
other areas were difficult to assess because they called for changes
in areas that had not been previously measured or for which measures
do not exist. For example, one of the recommendations called for
enhanced public awareness and participation in the rulemaking
process. Without generally agreed upon measures of public awareness
or participation and ways to measure changes before and after the
recommendation was made, accurate assessment of the recommendation's
implementation is impossible. In these cases, we noted the basis for
our conclusions.
To accomplish our second objective, we used our completed and ongoing
work to place each NPR recommendation in one of four comment
categories. Those categories and their definitions are as follows:
(1) Agree. We agree with the recommendation both in general and in
all the particulars.
(2) Generally Agree. We generally agree with the recommendation but
have some qualifying views or reservations.
(3) Disagree. We disagree with the recommendation.
(4) Insufficient Information. We have no basis for taking a position
on the recommendation because we have not done work in the specific
area addressed by the recommendation or the recommendation was too
vague for us to comment.
The report is organized in the same manner as the NPR report's
recommendations. The first 22 sections of the report focus on NPR
recommendations that were directed toward federal agencies, and the
last 16 sections focus on recommendations regarding crosscutting
government systems. Within each section there is an overall summary,
a GAO contact for all the recommendations in that section, and a
discussion of each recommendation. That discussion includes (1) the
recommendation and any associated action items, (2) our comments
regarding the recommendation, (3) our view of the recommendation's
implementation, and (4) a listing of related GAO products. No action
items are listed in sections for which an NPR accompanying report had
not been issued by September 7, 1994.
We did not review the NPR's estimated savings from implementing its
recommendations. The Congressional Budget Office already has
analyzed some of the NPR recommendations from that perspective. We
also did not review the status of approximately 130 "reinvention
labs" that have been developed in federal agencies. We plan to
discuss these labs in a forthcoming report. Neither did we examine
other activities that NPR said was occurring that were not related to
their September 1993 recommendations. Our comments regarding each
recommendation are based on the wording of the recommendation and any
associated action items, not on how the recommendation is being
implemented.
AGENCY COMMENTS
------------------------------------------------------------ Letter :9
Since this report is primarily based on our issued reports and
testimonies, we did not obtain comments from the Office of the Vice
President and federal agencies. In many cases, comments from
agencies and our evaluations of those comments are contained in the
reports cited. We did, however, discuss this report's contents with
senior NPR officials, who suggested some changes that we took into
consideration. Overall, they agreed with our findings.
We are sending copies of this report to other congressional
committees; the Vice President; and the Director, Office of
Management and Budget. Copies will be made available to other
interested parties upon request.
If you have any questions about the issues discussed in this report,
please contact the appropriate GAO official listed in the sections
accompanying this letter.
Charles A. Bowsher
Comptroller General
of the United States
AGENCY FOR INTERNATIONAL
DEVELOPMENT (AID)
============================================================ Chapter 1
OVERALL SUMMARY
---------------------------------------------------------- Chapter 1:1
AID has taken action on all recommendations and partially implemented
three of them. AID had begun to redefine its mission and priorities
in the post-Cold War era prior to the National Performance Review.
AID's efforts to implement several recommendations and many action
items are tied to an overarching activity--the "Results-Oriented
Operations Reengineering" plan. Through this plan, expected to be
tested by selected missions and offices from fall 1994 through spring
1995 and implemented beginning October 1995, AID expects to overhaul
how the agency plans, implements, and evaluates its development
programs. Within overall parameters determined by AID headquarters,
including 4- to 5-year budget projections and expected agencywide
program directions, AID missions will develop comprehensive country
strategic performance plans to define strategic program objectives,
strategies for achieving these objectives, and how progress will be
measured and reported. Funding to the field will be by strategic
program objectives, not by individual projects and activities. AID
expects that the new system will (1) focus on customer needs,
participation, and development results; (2) enable its staff to take
on greater responsibility and accountability; and (3) use information
system technologies to better achieve and report on program results.
Although AID has been actively pursuing its goals for "reinvention,"
more time is needed to determine whether these efforts will be
effective. AID is still working to improve its system of performance
indicators that accurately measure the impact of its programs on
developing countries and the financial and information system
improvements needed to better monitor and report on the use of
resources.
GAO CONTACT
-------------------------------------------------------- Chapter 1:1.1
Harold J. Johnson, Director, International Affairs Issues, National
Security and International Affairs Division, (202) 512-4128.
RECOMMENDATION INFORMATION
---------------------------------------------------------- Chapter 1:2
AID01: REDEFINE AND FOCUS
AID'S MISSION AND PRIORITIES
-------------------------------------------------------- Chapter 1:2.1
With the end of the Cold War, AID must rethink how it will operate.
NPR recommends steps to plan for this new mission and proposes new
authorizing legislation to define its post-Cold War mission and
priorities.
ACTION ITEMS
------------------------------------------------------ Chapter 1:2.1.1
1. The AID Administrator should 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.
2. The administration should seek comprehensive new authorizing
legislation to replace the Foreign Assistance Act of 1961, as
amended.
3. The AID Administrator should develop a strategic vision of what
the agency should look like as it enters the 21st century.
4. The AID Administrator should 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.
GAO COMMENTS
------------------------------------------------------ Chapter 1:2.1.2
Agree. GAO strongly agrees that the U.S. government needs to
develop a coherent foreign aid policy that redefines our national
interests and balances objectives with available resources, and we
have recommended that foreign aid reform begin with the articulation
of a clear strategic direction for AID. We have noted that over the
30 years since its enactment, the Foreign Assistance Act of 1961 has
been frequently amended, but neither the foreign assistance goals and
objectives nor the approaches used for providing this assistance have
been fully reexamined.
IMPLEMENTATION
------------------------------------------------------ Chapter 1:2.1.3
Partially Implemented. AID has taken several steps to implement this
recommendation. In November 1993, the Clinton Administration
submitted a discussion draft for authorizing legislation to replace
the Foreign Assistance Act of 1961, as amended, which had been widely
criticized for its myriad of foreign aid objectives, directives, and
funding earmarks. This draft surfaced as two bills, H.R. 3765 and
S. 1856, known as the "Peace, Prosperity, and Democracy Act of
1994." Both bills were introduced in February 1994 and would
authorize foreign assistance and related expenditures according to
several overall policy objectives: promoting sustainable
development, democracy, and peace; providing humanitarian assistance;
promoting growth through trade and investment; and advancing
diplomacy. Although markup sessions were held, the proposed
legislation was not enacted by the 103rd Congress, and the 1961 act
remains as AID's authorizing legislation. According to one AID
official, AID will likely resubmit its portion of the bill for action
by the 104th Congress, but the likelihood that new authorizing
legislation for foreign assistance will be enacted is unknown at this
time.
In March 1994, AID reported on its strategies for achieving its
overall foreign policy goal of sustainable development in four
program areas--economic growth, health and population, the
environment, and democracy. The four program areas are very broad,
and it remains to be seen whether AID will be able to translate these
directions into a manageable set of objectives. A noteworthy example
of AID's attempt to streamline its mission is its omission of trade
and investment activities--an area that had received increasing
program focus at AID during the 1980s. Trade and investment
activities are included in the foreign aid program set forth in the
proposed authorizing legislation but would be funded and administered
separately from sustainable development programs.
AID has completed surveys of both its "external customers"
(essentially the targeted recipients of AID goods and services) and
its staff to (1) better understand which sectors and delivery
approaches effectively address host country needs and complement
other donor efforts and (2) identify ways to streamline its
processes. AID's process for preparing the fiscal year 1996 budget
will be zero-based and take into consideration the results of these
stakeholder studies. AID also issued an agency directive in May 1994
on strategic planning and performance measurement, particularly on
setting and monitoring program strategies in establishing country
program strategic plans.
As part of its "reengineering" plan, AID is reviewing all of its
operational systems to determine the improvements needed to deliver
foreign assistance in ways that assure strict accountability for
resources yet provide more flexibility and more rapid response to
changing conditions. The initial plan for improving operations was
submitted to the Administrator in October 1994. Following the
Administrator's approval of redesigned operations, AID's Bureau for
Policy and Program Coordination will revise the guidance and
directives needed to implement new procedures.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 1:2.1.4
Foreign Assistance Act: Comments on the New Policy Framework for
Foreign Aid (GAO/T-NSIAD-94-121, Feb. 22, 1994).
Foreign Assistance: Reforming the Economic AID Program
(GAO/T-NSIAD-93-20, July 26, 1993).
Foreign Assistance: AID Strategic Direction and Continued Management
Improvements Needed (GAO/NSIAD-93-106, June 11, 1993).
Foreign Economic Assistance Issues (GAO/OCG-93-25TR, Dec. 1992).
AID02: REDUCE FUNDING,
SPENDING, AND REPORTING
MICROMANAGEMENT
-------------------------------------------------------- Chapter 1:2.2
Eliminate AID's outdated or unduly burdensome reporting requirements
and reduce legislative earmarks to provide greater operating
flexibility.
ACTION ITEMS
------------------------------------------------------ Chapter 1:2.2.1
1. Funding for AID development assistance programs should be
appropriated on a 2-year or multiyear basis determined by reference
to specific assistance needs.
2. AID development assistance funds should be appropriated as part
of a single account.
3. Earmarks on AID development assistance appropriations should be
eliminated or reduced to allow the agency greater flexibility in
responding to changing assistance needs.
4. Statutory reporting and notification requirements should be
reduced.
5. The AID Administrator should assure the completion of a
zero-based review of all internal agency reporting requirements and
procedural directives; elimination of outdated, unduly burdensome,
noncost-effective requirements; and establishment of controls over
the initiation of new requirements.
6. AID should develop a results-driven performance measurement
system capable of documenting expenditures of development assistance
funds against feasible and measurable performance goals.
GAO COMMENTS
------------------------------------------------------ Chapter 1:2.2.2
Generally Agree. We have reported on AID's extensive reporting
requirements and have recommended the elimination of one such
requirement. We have also reported on the often divergent views held
by the legislative and executive branches on the degree of
flexibility and autonomy AID should have in pursuing specific goals
and objectives. While we have not addressed the issue of eliminating
legislative earmarks, we have suggested that AID could increase
confidence in its management by establishing a strategic management
system including accountability and monitoring provisions. We have
also reported that Congress and AID have worked together effectively
when in agreement on a goal, such as the Development Fund for Africa
created in 1987 to provide a stable source of funding for Africa.
IMPLEMENTATION
------------------------------------------------------ Chapter 1:2.2.3
Partially Implemented. The fiscal year 1994 appropriations
legislation allowed for 2-year funding commitments (until September
30, 1995) and some no-year funding, replacing previous requirements
that most funds be obligated within the fiscal year that funds were
appropriated. This act also substantially reduced the number of
earmarks, and the proposed foreign aid authorizing legislation would
provide significant flexibility to the executive branch to program
foreign aid funds according to foreign policy goals. Reflecting the
intent of the proposed legislation, AID has defined its mission as
(1) providing humanitarian relief and (2) promoting sustainable
development through four broad program areas: economic growth,
democratic initiatives, the environment, and health and population.
The fiscal year 1994 appropriations act and proposed authorizing
legislation also substantially reduce the number of reporting and
notification requirements.
As part of its reengineering efforts, AID has taken steps to review
and eliminate outdated, cumbersome internal requirements and develop
a results-driven performance management system. AID's Quality
Council formed a subcommittee on internal regulations, and bureaus
are reviewing their own rules and regulations to determine which are
necessary for sound program management and which are not. AID's goal
is to reduce internal requirements by 50 percent, and the agency has
identified 73 rules which it may be able to eliminate. However,
agency management requirements will ultimately be driven by the
reforms still being developed to respond to other needed changes.
Another component of AID's reengineering is the development of
feasible and measurable performance indicators. As part of their
overall comprehensive country strategic performance plan, missions
will report on program outcomes and results using a "Work Plan" that
should include a database for recording both planned and achieved
results. Also, AID has been developing the Program Performance
Information System for Strategic Management (PRISM) since 1990. This
system is intended to provide a meaningful set of agencywide
indicators of program performance to be used in monitoring and
evaluating program results and to provide managers the information
needed in making program decisions. Most missions have developed
strategic objectives and linked these to performance indicators to
monitor progress, and central bureaus such as the Bureau for Global
Programs will soon begin developing objectives and indicators.
However, the system needs further development to ensure that these
indicators are systematically used for managerial and program
decisionmaking. Also, as the reengineering operations plan notes,
the current system does not have the capability to compare results
across countries or to aggregate individual country statistics to
assess global trends.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 1:2.2.4
Foreign Assistance: Accuracy of AID Statistics on Dollars Flowing
Back to the U.S. Economy Is Doubtful (GAO/NSIAD-93-196, Aug. 3,
1993).
Foreign Assistance: AID Strategic Direction and Continued Management
Improvements Needed (GAO/NSIAD-93-106, June 11, 1993).
AID Management: Strategic Management Can Help AID Face Current and
Future Challenges (GAO/NSIAD-92-100, Mar. 6, 1992).
Foreign Assistance: Progress in Implementing the Development Fund
for Africa (GAO/NSIAD-91-127, Apr. 16, 1991).
AID03: OVERHAUL THE AID
PERSONNEL SYSTEM
-------------------------------------------------------- Chapter 1:2.3
Recommendations include changes in AID's personnel system to
integrate its multiple systems and review benefits.
ACTION ITEMS
------------------------------------------------------ Chapter 1:2.3.1
1. AID should operationally integrate all its human resource
management systems, including Foreign Service National (FSN) and
Personal Services Contractor (PSC) staffs, as well as Foreign Service
(FS) and General Schedule (GS) employees.
2. AID should reinvigorate the International Development Intern
(IDI) Program.
3. AID should ensure that the lengths of overseas assignments are
logically related to the nature of the work performed by AID
personnel.
4. AID should ensure that junior officers develop management and
administrative skills as part of their career development.
5. AID should invest in more training in project implementation,
contract administration, financial management, and foreign language
proficiency.
6. AID should encourage rotational assignments in and out of the
Office of the Inspector General (OIG).
7. AID should restructure the performance review and employee
incentive programs to link individual performance to organizational
performance.
8. The AID Administrator should enforce the terms of the up-or-out
regulations and begin reducing the excess senior management at the
agency.
9. AID should integrate qualified spouses of overseas couples into
the assignment process and cultivate them as part of the overseas
work force.
10. AID should initiate an interagency review of FS benefit policies
among the various agencies using FS employees.
GAO COMMENTS
------------------------------------------------------ Chapter 1:2.3.2
Agree. GAO strongly agrees that AID lacks adequate work force
planning and management systems and has reported that AID has not
restructured its work force to meet the agency's evolution from a
hands-on implementor to supervising the work of others to carry out
its programs.
IMPLEMENTATION
------------------------------------------------------ Chapter 1:2.3.3
Not Implemented--Action Taken. AID has taken a number of steps to
overhaul its personnel system and improve its human resource
development. In March 1994, AID submitted a concept paper to
Congress proposing an integrated personnel system--the USAID
Development Corps. This proposal would unify Foreign Service and
General Schedule personnel into a single service, and integrate all
other employees into the agency's overall human resources system.
AID currently has six teams engaged in (1) drafting specific
legislative proposals outlining basic authorities; (2) developing the
pay plan and benefits package; (3) developing improved work force
planning, position management, assignments, and career management
systems; (4) developing and implementing employee evaluation and
recognition/awards systems; (5) examining spousal employment as an
integral part of the system; and (6) defining system parameters and
conversion provisions, separation rules, and grievance system
provisions. AID has begun working on implementing those aspects of
the unified personnel system that can be implemented without
legislation, such as an improved work force planning system and staff
development programs. Final drafts of legislative proposals are
tentatively scheduled to be completed by December 31, 1994 and
submitted to Congress by February 1, 1995. AID has begun enforcing
regulations on limited career extensions and is focusing on granting
extensions based on agency needs only. The size of the Senior
Foreign Service is beginning to contract.
AID is developing a new employee evaluation system designed to
include peer evaluation, greater feedback, separation of the
promotion process from evaluation, and more focus on accountability
for meeting organizational goals. AID began testing the pilot in
July 1994 and implementation is expected by spring 1995. Initially
it will be applied to the Foreign Service only, but AID expects to
apply it to Civil Service staff when granted such authority by
Congress.
A staff development strategy is being formulated that will define
career paths and requisite training through a career management
system that is to help each employee chart a predictable and
equitable career strategy from entry-level through retirement. AID's
work force diversity plan was approved by the Administrator and
distributed in April 1994. It is intended to guide efforts to
achieve a representative work force profile and establish an active
program to ensure equal employment opportunity for each employee.
Recruitment is now being guided by work force planning and diversity
analyses, and the International Development Intern program is being
restructured to reduce the average grade and age of new-hires and to
increase the full-time equivalent years invested in the interns.
AID, with the assistance of a training consultant, is restructuring
its training program to reflect organizational changes and stress
certification for key positions, such as program managers,
contracting officers, controllers, and executive officers.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 1:2.3.4
Foreign Assistance: Reforming the Economic AID Program
(GAO/T-NSIAD-93-20, July 26, 1993).
Foreign Assistance: AID Strategic Direction and Continued Management
Improvements Needed (GAO/NSIAD-93-106, June 11, 1993).
Foreign Assistance: Management Problems Persist at the Agency for
International Development (GAO/T-NSIAD-92-31, May 1, 1992).
AID04: MANAGE AID EMPLOYEES
AND CONSULTANTS AS A UNIFIED
WORK FORCE
-------------------------------------------------------- Chapter 1:2.4
Lift some current personnel restrictions and give managers authority
to manage staff resources more efficiently and effectively.
ACTION ITEMS
------------------------------------------------------ Chapter 1:2.4.1
1. AID should vigorously explore opportunities to remove staffing
restrictions and allocate operating expense salary resources to
individual managers, rather than budgeting and managing funds
centrally.
2. AID should put systems in place to accurately monitor employee
work years for both direct-hire employees and PSCs.
3. AID should undertake a full review of the impact of its policies
and practices concerning use of PSCs.
GAO COMMENTS
------------------------------------------------------ Chapter 1:2.4.2
Generally Agree. We have reported on the increasing number of AID
programs and projects being implemented through outside parties, such
as personal services contractors, who often perform the same or
similar duties as direct-hire employees. While we have not addressed
the issue of lifting personnel restrictions, we have recommended that
AID develop a comprehensive work force planning system to recruit,
train, and assign both direct- and nondirect-hire staff.
IMPLEMENTATION
------------------------------------------------------ Chapter 1:2.4.3
Not Implemented--Action Taken. This recommendation is somewhat
difficult to implement given that AID's operating funds are
appropriated separately from its program funds. Also, the Office of
Management and Budget (OMB) wields considerable influence over agency
staffing allocations and personnel restrictions. AID is exploring
staffing flexibility through reengineering efforts and unified work
force proposals such as the "Development Corps," which, if
implemented, would provide greater flexibility and encourage mobility
among bureaus and overseas assignments. AID has also reduced by 20
percent the number of personal services contractors since November
1993 by not renewing contracts for many U.S. and third-country
nationals overseas.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 1:2.4.4
Foreign Assistance: AID Strategic Direction and Continued Management
Improvements Needed (GAO/NSIAD-93-106, June 11, 1993).
Foreign Assistance: Management Problems Persist at the Agency for
International Development (GAO/T-NSIAD-92-31, May 1, 1992).
Foreign Assistance: AID's Use of Personal Services Contracts
Overseas (GAO/NSIAD-91-237, Sept. 13, 1991).
AID05: ESTABLISH AN AID
INNOVATION CAPITAL FUND
-------------------------------------------------------- Chapter 1:2.5
Create a capital investment fund to improve information and financial
management systems and customer service.
ACTION ITEMS
------------------------------------------------------ Chapter 1:2.5.1
1. AID should work with OMB and Congress to establish a revolving
capital investment fund.
2. AID should target sound projects from the Information Systems
Plan for funding.
3. AID should conduct a thorough cost-benefit analysis of any
proposed capital expenditure.
4. AID should obtain customer input during business process
reengineering.
5. Implementation of the Army Corps of Engineers Financial
Management System (CEFMS) should be expedited.
GAO COMMENTS
------------------------------------------------------ Chapter 1:2.5.2
Insufficient Information. We agree that improvements are needed in
AID's information and financial management systems, but we have not
specifically studied the merits of an innovation capital fund.
IMPLEMENTATION
------------------------------------------------------ Chapter 1:2.5.3
Not Implemented--Action Taken. OMB and AID agreed not to ask for a
separate revolving fund for capital investments. According to one
AID official, OMB and congressional appropriations committees
traditionally have not supported off-budget spending. AID proposed
in its fiscal year 1995 budget submission that $18 million be set
aside in the operating expense account for improvements to its
information and financial management systems but not as a revolving
fund. The Information Systems Plan was funded in fiscal year 1994
and has been included in the budgets for fiscal years 1995 and 1996.
This entire project was subjected to a cost-benefit analysis
conducted by the General Services Administration who, according to
one AID official, called it "one of the best they had seen." As part
of its reengineering efforts, AID has established a team to conduct a
study to determine the data needed by staff and how such data are
used and accessed. This effort will include user reference groups to
provide feedback on information needs and systems under development.
With OMB assistance, AID is exploring an alternative to the Army
Corps of Engineers Financial Management System that will eliminate
development time through procuring a complete off-the-shelf automated
financial management system. This is a near-term effort to improve
financial management capabilities. AID initiated development of the
AID Washington Accounting and Control System (AWACS) in 1990 and the
agency currently plans to proceed with this system. GAO plans to
review the status of AID's financial management system improvement
efforts during fiscal year 1995.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 1:2.5.4
Financial Management: Inadequate Accounting and System Project
Controls at AID (GAO/AFMD-93-19, May 24, 1993).
Information Resources Management: Initial Steps Taken But More
Improvements Needed in AID's IRM Program (GAO/IMTEC-92-64, Sept. 29,
1992).
Foreign Assistance: Management Problems Persist at the Agency for
International Development (GAO/T-NSIAD-92-31, May 1, 1992).
AID06: REENGINEER
MANAGEMENT OF AID PROJECTS
AND PROGRAMS
-------------------------------------------------------- Chapter 1:2.6
AID should use pilot programs and new approaches to emphasize
flexibility, innovation, customer service, and program results.
ACTION ITEMS
------------------------------------------------------ Chapter 1:2.6.1
1. AID should reengineer the project and program management
processes to emphasize innovation, flexibility, and beneficiary
participation.
2. The AID administrator should designate selected AID missions as
pilots to experiment with innovative approaches to programming and
delivery of AID assistance.
3. AID should structure the reward and incentive system in project
and program management to ensure that performance and accountability
are linked to accomplishing project results and that innovation is
encouraged.
4. AID should establish systems for continuing critical review of
all existing projects to ensure that they are achieving desired
outcomes.
5. AID should strengthen the project and program evaluation process
and integrate it into the planning, budget, and project allocation
processes.
GAO COMMENTS
------------------------------------------------------ Chapter 1:2.6.2
Insufficient Information. We agree that missions have not been held
accountable for program results, but we cannot assess this NPR
recommendation based on the information provided.
IMPLEMENTATION
------------------------------------------------------ Chapter 1:2.6.3
Not Implemented--Action Taken. AID's "Results-Oriented Operations
Reengineering" draft plan proposes a new way of carrying out AID's
work by (1) focusing on end user needs, participation, and
development results; (2) enabling AID employees to take on greater
responsibility and accountability; and (3) using information system
technologies to facilitate AID's evaluation and achievement of
overall objectives. The plan includes efforts to link reward and
incentive systems to performance results, establish systems for
continuous project review, and strengthen and integrate evaluations
with agency program planning processes. Incorporating these concepts
at the mission level will require mission responsibility for
preparing a comprehensive strategic performance plan that will have
three parts: a strategic definition of the country program, a report
on program outcomes and results, and an operational resources plan.
Funds allocation to the field will be based on AID/Washington
approval of an overall strategy to achieve identified objectives and
program outcomes. While individual projects might be identified,
they are not the object for approval and funds obligation will be by
strategic objective, not by activity.
The draft plan was circulated for agencywide review and comment and
was finalized in October 1994. Although it may change in some
implementation aspects as it is reviewed, AID expects the fundamental
concepts to remain unchanged. In October 1994, AID selected eight
overseas missions and two offices to pilot different aspects of the
reengineered approach and to begin training if funds are available.
The pilot missions and offices are scheduled to complete their
testing of the plan's approaches by spring 1995. At that time, the
reengineering team will analyze the results and refine and submit the
plan for final approval. AID expects to begin implementing the
reengineering plan by October 1995.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 1:2.6.4
Foreign Assistance: AID Strategic Direction and Continued Management
Improvements Needed (GAO/NSIAD-93-106, June 11, 1993).
Foreign Assistance: Management Problems Persist at the Agency for
International Development (GAO/T-NSIAD-92-31, May 1, 1992).
AID07: CONSOLIDATE OR CLOSE
AID OVERSEAS MISSIONS
-------------------------------------------------------- Chapter 1:2.7
AID should regionalize missions and staff services overseas and close
nonessential missions. It should establish "graduation" criteria for
countries receiving U.S. assistance.
ACTION ITEMS
------------------------------------------------------ Chapter 1:2.7.1
1. AID should concentrate field presence substantially by fiscal
year 1996.
2. AID should support establishing the requirement that all
assistance programs include plans for graduation from U.S.
assistance.
3. AID should aggressively explore opportunities to consolidate
staff in regional offices serving a number of countries.
4. AID should act to ensure that administrative functions overseas
will be provided in the most cost-effective way.
GAO COMMENTS
------------------------------------------------------ Chapter 1:2.7.2
Generally Agree. We strongly agree that AID resources are spread
among too many countries to be effective, with programs at some
missions so diffuse that they have had little impact, and we have
noted that some recipient countries may soon be candidates for
"graduation." However, we have not addressed the issue of regional
missions nor identified specific missions for closure.
IMPLEMENTATION
------------------------------------------------------ Chapter 1:2.7.3
Partially Implemented. AID plans to close 21 overseas missions and
offices and expects the closeouts to be completed by the end of
fiscal year 1996. These generally included countries determined to
have (1) "graduated" from the need for AID assistance or a close AID
presence or (2) not promoted the basic political and economic reforms
considered essential for aid to be effective. Five missions were
closed in fiscal year 1994, 10 are scheduled for closure in fiscal
year 1995, and 6 are to be closed in fiscal year 1996. Almost all
plans for closing out missions have been approved by AID/Washington.
The exception is the Regional Development Office for the Caribbean in
Barbados due to the changing events in Haiti and Cuba and the
consequent need for a U.S. aid presence in the Caribbean. According
to an AID official, it is still very likely that this office will
close in fiscal year 1996 but that certain programs considered
important to U.S. interests will be administered from Washington or
elsewhere in the region. While the announcement of closing 21
missions is a positive step toward streamlining AID's overseas
presence, AID's presence in Central and Eastern Europe and the former
Soviet Union has increased in the past several years. For example,
as of early 1994, AID had 39 permanent employees at four regional
missions in Russia, Ukraine, Kazakhstan, and Armenia.
In March 1994, AID requested that missions review their programs for
additional graduations and replies were due in July 1994. The Bureau
for Policy and Program Coordination is analyzing the replies and will
prepare a final report on how AID could proceed to phase out certain
programs. Essentially, plans for "graduation" are to be built into
the new country level strategic planning process, and missions are to
project end-dates for assistance based on measurable indicators and
the assumption that AID programs as well as external factors proceed
as planned.
AID's general guidance for field presence is to operate in three
types of countries: (1) those in which AID can provide an integrated
package of sustainable development assistance with clearly defined
program objectives and performance targets; (2) transitional
countries that have recently experienced national crisis, a
significant political transition, or a natural disaster; and (3)
countries in which AID's presence is limited and may operate from a
central or regional base, but where aid to nongovernmental sectors
may facilitate the emergence of a civic society, help alleviate
repression, meet basic humanitarian needs, enhance food security, or
address a problem with regional or global implications.
As part of its "rightsizing" efforts, AID is reducing the size of its
Regional Economic Development and Support Offices in East and West
Africa. AID is considering additional regional consolidations and
closures, and expects a "second round" to be announced next year.
AID is also developing a "core" mission model to assist in deciding
how future overseas posts should look. AID and the State Department
are also studying the merits of consolidating the administrative
functions of the various U.S. agencies represented at posts and
expect to report to Congress by November 1994 on consolidating those
services that are feasible. Final plans are to be implemented by
fiscal year 1996. AID, the State Department, and the U.S.
Information Agency are working with the General Services
Administration to identify a single travel agent to serve these
foreign affairs agencies. These agencies are also reviewing the
possibility of using one contractor for storage of household goods.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 1:2.7.4
Foreign Assistance: AID Strategic Direction and Continued Management
Improvements Needed (GAO/NSIAD-93-106, June 11, 1993).
DEPARTMENT OF AGRICULTURE (USDA)
============================================================ Chapter 2
OVERALL SUMMARY
---------------------------------------------------------- Chapter 2:1
Implementation of the seven NPR recommendations for USDA ranges from
full implementation to not implemented--action taken. Although USDA
has taken or identified actions to implement most of the
recommendations, it has fully implemented only one--to phase out the
wool and mohair program (USDA01). It has also partially implemented
three other recommendations. In the fall of 1993, USDA submitted
legislation to implement a new organizational structure, and the
legislation was enacted on October 13, 1994 (USDA03). To contain
costs in the Special Supplemental Program for Women, Infants, and
Children (WIC), USDA has taken steps to enhance competition among
manufacturers of infant formula and to provide states with
information and technical assistance (USDA06). To prepare for
delivering food stamp benefits via electronic transfer nationwide, it
has been participating in an interagency task force and working
closely with a number of states to pilot test electronic benefit
transfer projects (USDA07). UDSA has also taken steps to implement
three other recommendations. It developed legislative proposals to
eliminate the honey subsidy program (USDA02) and to consolidate a
number of farm management plans (USDA04). These proposals are
awaiting congressional action. To begin implementing the
recommendation that USDA administer the employment and training
requirements for food stamp recipients more effectively, the
Administrator of the Food and Nutrition Service has directed the
Service's regional and program offices to look for better ways to
target employment and training funds (USDA05).
Although we generally agree with the NPR's recommendations for USDA,
we are concerned, as we noted in December 1993, about other issues
that NPR did not address. These include
-- eliminating, phasing out, or changing several other commodity
programs in addition to the wool and mohair and honey programs
because (1) the programs may not be meeting their goals, (2) the
programs and goals may not be appropriate in today's
marketplace, or (3) the programs may not be addressing farmers'
needs;
-- centralizing the servicing for the Farmers Home Administration's
(FmHA) single-family housing loans to lower delinquency rates
and reduce loan losses; and
-- reducing the farm credit program's exposure to risk by
rethinking FmHA's mission and activities so as to improve risk
management, reduce transaction costs, and improve farmers'
equity while saving taxpayers billions of dollars.
GAO CONTACT
-------------------------------------------------------- Chapter 2:1.1
John W. Harman, Director, Food and Agriculture Issues, Resources,
Community, and Economic Development Division, (202) 512-5138.
RECOMMENDATION INFORMATION
---------------------------------------------------------- Chapter 2:2
USDA01: END THE WOOL AND
MOHAIR SUBSIDY
-------------------------------------------------------- Chapter 2:2.1
The subsidy is no longer needed since wool is no longer a strategic
commodity.
ACTION ITEM
------------------------------------------------------ Chapter 2:2.1.1
Legislation should be enacted to eliminate federal support payments
for wool and mohair.
GAO COMMENTS
------------------------------------------------------ Chapter 2:2.1.2
Agree. We have supported ending the wool and mohair subsidy since
1990 because (1) the program's costs are high, (2) the federal budget
faces many constraints, (3) a small number of beneficiaries have been
receiving the bulk of the payments, and (4) wool has not been
considered a strategic material since 1960.
IMPLEMENTATION
------------------------------------------------------ Chapter 2:2.1.3
Fully Implemented. Public Law 103-130, enacted on November 1, 1993,
phases out the wool and mohair subsidy program over 2 years. This
subsidy program will end with the conclusion of the 1995 marketing
year.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 2:2.1.4
Wool and Mohair Program: Need for Program Still in Question
(GAO/RCED-90-51, Mar. 6, 1990).
USDA02: ELIMINATE FEDERAL
SUPPORT FOR HONEY
-------------------------------------------------------- Chapter 2:2.2
Eliminate the honey subsidy because the program does not serve the
intended purpose of ensuring the availability of honeybees for crop
pollination.
ACTION ITEM
------------------------------------------------------ Chapter 2:2.2.1
Legislation should be enacted to eliminate federal support for honey.
GAO COMMENTS
------------------------------------------------------ Chapter 2:2.2.2
Agree. We support eliminating the honey program. In 1985, we
reported that the program--originally justified as ensuring an
adequate supply of honeybees for crop pollination--was unnecessary to
ensure pollination. We also found that only 1 percent of the
nation's beekeepers participated in the program. We recommended that
the program be phased out by reducing the price-support level over
time to minimize the impact on the industry.
IMPLEMENTATION
------------------------------------------------------ Chapter 2:2.2.3
Not Implemented--Action Taken. Annual appropriations legislation for
fiscal years 1994 and 1995 eliminated payments and greatly curtailed
loans for the honey program. Proposed legislation (H.R. 1853 and
H.R. 3400) authorized honey payments only through the 1995 crop year
rather than the 1998 crop year as called for under the Omnibus Budget
Reconciliation Act of 1993. However, the proposed legislation would
not definitively terminate the honey program as the NPR recommends.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 2:2.2.4
Honey Program (GAO/RCED-94-244R, June 8, 1994).
Honey Program (GAO/RCED-93-227R, Sept. 1, 1993).
Federal Price Support for Honey Should Be Phased Out
(GAO/RCED-85-107, Aug. 19, 1985).
USDA03: REORGANIZE THE
DEPARTMENT OF AGRICULTURE TO
BETTER ACCOMPLISH ITS
MISSION, STREAMLINE ITS
FIELD STRUCTURE AND IMPROVE
SERVICE TO ITS CUSTOMERS
-------------------------------------------------------- Chapter 2:2.3
USDA should streamline its field operations to eliminate unnecessary
offices, reduce costs, and better serve farmers.
ACTION ITEMS
------------------------------------------------------ Chapter 2:2.3.1
1. USDA should begin immediately a multiyear approach to revising
the department's structure to reflect its program responsibilities.
2. The Secretary of Agriculture should submit legislation to
implement the new organizational structure to enhance the delivery of
USDA services.
3. USDA should review its regional, state, and area office
structure; eliminate those elements no longer appropriate; and extend
the restructuring to the "non-county-based" agencies of the
department.
GAO COMMENTS
------------------------------------------------------ Chapter 2:2.3.2
Agree. We support the recommendation to reorganize USDA. In a
series of reports on the organizational structure and management
systems of USDA, we identified structural problems that, if
addressed, could lead to greater efficiency, effectiveness, and cost
savings. USDA estimates that streamlining and restructuring its
headquarters and field structure could save about $2.3 billion over
the next 5 years.
IMPLEMENTATION
------------------------------------------------------ Chapter 2:2.3.3
Partially Implemented. USDA has been working for a number of years
to revise its structure. The Department also has identified about
1,100 county offices that it plans to close to streamline its field
operations (action item 1). Legislation to implement a new
organizational structure was introduced in the fall of 1993 and was
passed and signed into law (P.L. 103-354) on October 13, 1994
(action item 2). USDA is currently determining which county offices
will be closed and how the Department's headquarters offices will be
reorganized (action item 3).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 2:2.3.4
U.S. Department of Agriculture: Overhauling the Farm Agencies'
Field Structure (GAO/T-RCED-92-87, July 30, 1992).
U.S. Department of Agriculture: Restructuring Will Impact Farm
Service Agencies' Automation Plans and Programs (GAO/T-IMTEC-92-22,
July 30, 1992).
U.S. Department of Agriculture: Revitalizing Structure, Systems,
and Strategies (GAO/RCED-91-168, Sept. 3, 1991).
U.S. Department of Agriculture: Farm Agencies' Field Structure
Needs Major Overhaul (GAO/RCED-91-9, Jan. 29, 1991).
USDA04: IMPLEMENT A
CONSOLIDATED FARM MANAGEMENT
PLAN
-------------------------------------------------------- Chapter 2:2.4
The farm management plan proposed by Secretary Espy provides an
opportunity to simplify regulations for farm management and is a good
way to consolidate competing requirements into a single plan for each
farm.
ACTION ITEMS
------------------------------------------------------ Chapter 2:2.4.1
1. USDA should coordinate federal agencies in assisting producers to
implement the consolidated farm management plan. This should include
assuring the quality of consolidated farm management plans and
compliance.
2. The consolidated farm management plan should seek to coordinate
with programs administered by other federal agencies and states in
order to create an integrated comprehensive farm management plan.
The plan, however, should not override or supersede requirements of
other programs.
GAO COMMENTS
------------------------------------------------------ Chapter 2:2.4.2
Generally Agree. Although we have not recommended a consolidated
farm management plan, we agree that the concept provides an excellent
opportunity to simplify regulations and help make government
regulations "farmer friendly." This recommendation also complements
NPR's recommendation to reorganize USDA, streamline its field
structure, and improve service to its customers.
IMPLEMENTATION
------------------------------------------------------ Chapter 2:2.4.3
Not Implemented--Action Taken. Legislation was introduced in 1993 to
consolidate the number of management plans required by USDA.
However, this legislation focuses only on environmental and
conservation management plans and does not include all farm
management plans. Therefore, while related to the recommendation,
the legislation would not fully implement the recommendation.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 2:2.4.4
None.
USDA05: ADMINISTER THE
EMPLOYMENT AND TRAINING
REQUIREMENTS FOR FOOD STAMP
RECIPIENTS MORE EFFECTIVELY
AND EFFICIENTLY
-------------------------------------------------------- Chapter 2:2.5
Redirect funds from an ineffective training program for food stamp
recipients and allow them to participate in programs with proven
results.
ACTION ITEM
------------------------------------------------------ Chapter 2:2.5.1
Legislation should be enacted to amend the Food Stamp Act to
strengthen the work and training requirement and require food stamp
recipients to participate in more effective employment and training
programs.
GAO COMMENTS
------------------------------------------------------ Chapter 2:2.5.2
Generally Agree. Although we have not done work on this issue, in
our view it makes good sense to redirect funds from ineffective
programs to programs that have proven results. That is simply good
public policy.
IMPLEMENTATION
------------------------------------------------------ Chapter 2:2.5.3
Not Implemented--Action Taken. USDA has not taken any specific
action to redirect funds so that food stamp recipients can
participate in employment and training programs with proven results.
Nor has legislation been introduced to amend the Food Stamp Act, as
required by this recommendation. However, the Administrator of the
Food and Nutrition Service (FNS) announced, in a May 1994 letter to
regional administrators and operators of the Employment and Training
Program, that FNS has changed its approach to administering this
program. The Administrator said that FNS is now trying to target the
program's funds to specific populations within the eligible food
stamp recipient population rather than encouraging broad-based,
low-cost programs. In addition, FNS officials said that the agency
has drafted changes that may address this NPR recommendation, but OMB
has not yet approved these changes. According to USDA officials,
identifying programs with proven results is difficult. In addition,
officials say, the main problem with the Food Stamp Employment and
Training Program is not that the program is ineffective but that it
tries to serve too many people with too few dollars.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 2:2.5.4
None.
USDA06: ENCOURAGE BETTER
FOOD PACKAGE MANAGEMENT
PRACTICES AND FACILITATE
MULTISTATE CONTRACTS FOR
INFANT FOOD AND FORMULA COST
CONTAINMENT IN THE WIC
PROGRAM
-------------------------------------------------------- Chapter 2:2.6
The recommendation encourages increased competition among infant
formula vendors and manufacturers of other items in USDA's Special
Supplemental Food Program for Women, Infants, and Children (WIC).
Savings accrue to the program.
ACTION ITEMS
------------------------------------------------------ Chapter 2:2.6.1
1. USDA should assume a 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.
2. USDA should expand its role in disseminating "best practices"
information to states interested in pursuing multistate
cost-containment efforts.
3. USDA should continue and expand its educational efforts to
promote breastfeeding.
GAO COMMENTS
------------------------------------------------------ Chapter 2:2.6.2
Agree. We support the use by states of competitive contracts for the
acquisition of WIC infant formula. Although we have not reviewed the
potential benefits of multistate contracting, we have found that
competitive bid contracting by individual states generally results in
program savings and a potential increase in the number of recipients
served.
IMPLEMENTATION
------------------------------------------------------ Chapter 2:2.6.3
Partially Implemented. Congress enacted the WIC Infant Formula
Procurement Act of 1992 before the NPR issued its recommendations in
September 1993. This act directs USDA to take many of the same
actions as the NPR. Hence, when USDA acted to fulfill the act's
mandates, it also partially implemented this NPR recommendation.
Recent legislation extends to infant cereal the cost-containment
contract provisions that currently apply to the procurement of infant
formula. In the meantime, USDA has worked with the states to contain
costs by encouraging competition among producers of infant formula
and other items in the WIC food package (action item 1) and by
providing information and technical support to states that are
soliciting and evaluating bids for WIC contracts (action item 2).
Recent legislation improves breastfeeding promotion and support.
USDA is also hiring a consultant to formulate a strategy for
soliciting funds to support a national campaign to promote
breastfeeding (action item 3).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 2:2.6.4
Supplemental Food Program: Savings From Food Purchases Could
Increase WIC Participation (GAO/RCED-88-183BR, July 25, 1988).
Supplemental Food Program: Using Cost Saving Methods Could Increase
Participation (GAO/RCED-88-35BR, Oct. 9, 1987).
USDA07: DELIVER FOOD STAMP
BENEFITS VIA ELECTRONIC
BENEFITS TRANSFER TO IMPROVE
SERVICE TO CUSTOMERS WHILE
REMAINING COST EFFECTIVE
-------------------------------------------------------- Chapter 2:2.7
Use electronic technology to distribute food stamp benefits, thereby
improving service and reducing the need for current paper stamps.
ACTION ITEM
------------------------------------------------------ Chapter 2:2.7.1
USDA's Food and Nutrition Service should participate in an
interagency task force reporting to the Vice President to accelerate
implementation of electronic benefits transfer (EBT).
GAO COMMENTS
------------------------------------------------------ Chapter 2:2.7.2
Generally Agree. In our February 1994 testimony, which focused on
the potential for EBT to reduce fraud and abuse and analyzed EBT
pilot projects, we stated that the cost-effectiveness of EBT as a
replacement for the coupon-based system for delivering food stamp
benefits has not been conclusively demonstrated. Our work to date
indicates that EBT may prove more useful and cost-effective when it
is used to deliver benefits for a number of federal and state
programs and not solely for the Food Stamp Program.
IMPLEMENTATION
------------------------------------------------------ Chapter 2:2.7.3
Partially Implemented. USDA participated fully and actively in an
interagency task force that reported to the Vice President in May
1994 and developed a plan containing 12 recommendations for
implementing EBT nationwide. USDA also worked closely with one state
(Maryland) to implement a statewide EBT system and with six other
states (Iowa, Minnesota, New Jersey, New Mexico, Ohio, and
Pennsylvania) to implement pilot EBT projects. Three other states
(South Carolina, Texas, and Wyoming) have selected vendors to
implement EBT projects. In total, 10 states have made progress
toward deploying EBT; therefore, this NPR recommendation is
considered partially implemented.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 2:2.7.4
Food Assistance: Reducing Fraud and Abuse in the Food Stamp Program
With Electronic Benefit Transfer Technologies (GAO/T-RCED-94-125,
Feb. 2, 1994).
DEPARTMENT OF COMMERCE (DOC)
============================================================ Chapter 3
OVERALL SUMMARY
---------------------------------------------------------- Chapter 3:1
The Department of Commerce has made considerable progress in its
implementation of the NPR recommendations, although none of the
recommendations was fully implemented. NPR's view that Commerce is a
"holding company" composed of 13 vastly different operating units,
each pursuing disparate missions, is consistent with our observations
of Commerce activities in prior work such as our transition series
report on Commerce Issues.
We support the thrust of the NPR Commerce recommendations, including
better coordination across government in shared program
responsibility, improved customer service through technology
advancement, and enhanced efficiency and effectiveness in operations.
We continue to support these reinvention principles.
GAO CONTACT
-------------------------------------------------------- Chapter 3:1.1
William M. Hunt, Director, Federal Management Issues, General
Government Division, (202) 512-8676.
RECOMMENDATION INFORMATION
---------------------------------------------------------- Chapter 3:2
DOC01: REINVENT FEDERAL
ECONOMIC AND REGIONAL
DEVELOPMENT EFFORTS
-------------------------------------------------------- Chapter 3:2.1
Improve coordination of federal economic development efforts with the
goals of eliminating duplication and better directing federal
resources to improve business conditions.
ACTION ITEMS
------------------------------------------------------ Chapter 3:2.1.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 3:2.1.2
Agree. This recommendation is an underlying theme of several of our
reports over the past few years. We agree with the tenet that better
coordination can help improve efficiency and achieve better results
in federal economic development efforts.
IMPLEMENTATION
------------------------------------------------------ Chapter 3:2.1.3
Not Implemented--Action Taken. The Economic Development
Administration's (EDA) reauthorization bill (H.R. 2442 and S. 2257)
would provide for the establishment of a Federal Coordinating Council
for Economic Development. However, the reauthorization bill has not
been enacted.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 3:2.1.4
Rural Development: Patchwork of Federal Programs Needs to Be
Reappraised (GAO/RCED-94-165, July 28, 1994).
Housing and Community Development Issues (GAO/OCG-93-22TR, Dec.
1992).
Rural Development: Rural America Faces Many Challenges
(GAO/RCED-93-35, Nov. 20, 1992.
DOC02: PROVIDE BETTER
COORDINATION TO REFOCUS AND
LEVERAGE FEDERAL EXPORT
PROMOTION
-------------------------------------------------------- Chapter 3:2.2
This recommendation is designed to improve federal services to U.S.
businesses competing in the world export markets.
ACTION ITEMS
------------------------------------------------------ Chapter 3:2.2.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 3:2.2.2
Agree. We have advocated improved federal trade promotion efforts.
In a January 1992 report, we recommended that the Secretary of
Commerce, as Chair of the the Trade Promotion Coordinating Committee
(TPCC), the interagency committee that oversees federal export
promotion efforts, work with other TPCC member agencies and the
Director of the Office of Management and Budget to (1) develop a
governmentwide strategic plan for carrying out federal export
promotion programs and (2) ensure that the budget requests for these
programs are consistent with their relative strategic importance.
This recommendation was incorporated into law in October 1992.
IMPLEMENTATION
------------------------------------------------------ Chapter 3:2.2.3
Partially Implemented. Title II of the Export Enhancement Act of
1992 requires TPCC to issue annually a report containing a
governmentwide strategic plan for federal export promotion efforts
and describing its implementation. The act requires that the plan,
among other things, establish priorities for federal export
promotion, include a strategy for bringing federal export promotion
activities into line with the new priorities and for improving their
coordination, and propose a unified budget for federal trade
promotion programs.
TPCC issued its first report to Congress, Towards a National Export
Strategy, on September 29, 1993. It recommended numerous
improvements to federal export promotion programs, and pledged to
establish the governmentwide priorities and develop a unified export
promotion budget within the context of the fiscal year 1995 budget
request.
Since the September 1993 plan was issued, TPCC has implemented a
number of actions to improve coordination of export promotion
programs. For example, TPCC is creating a nationwide network of
Export Assistance Centers that consolidate the delivery of export
promotion services in the field. However, little progress has been
made in refocusing export promotion efforts. Governmentwide export
promotion priorities have not been established and a unified export
promotion budget request was not incorporated in the fiscal year 1995
budget request.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 3:2.2.4
International Trade: Coordination of U.S. Export Promotion
Activities in Pacific Rim Countries (GAO/GGG-94-192, Aug. 29, 1994).
Export Promotion: Governmentwide Plan Contributes to Improvements
(GAO/T-GGD-94-35, Oct. 26, 1993).
Export Promotion: Initial Assessment of Governmentwide Strategic
Plan (GAO/T-GGD-93-48, Sept. 29, 1993).
Export Promotion Strategic Plan: Will it Be a Vehicle for Change?
(GAO/T-GGD-93-43, July 26, 1993).
Export Promotion: Problems in the Small Business Administration's
Programs (GAO/GGD-92-77, Sept. 2, 1992).
Export Promotion: A Comparison of Programs in Five Industrialized
Nations (GAO/GGD-92-97, June 22, 1992).
Export Promotion: Overall U.S. Strategy Needed (GAO/T-GGD-92-40,
May 20, 1992).
Export Promotion: Federal Programs Lack Organizational and Funding
Cohesiveness (GAO/NSIAD-92-49, Jan. 10, 1992).
DOC03: REFORM THE FEDERAL
EXPORT CONTROL SYSTEM FOR
COMMERCIAL GOODS
-------------------------------------------------------- Chapter 3:2.3
To help ensure that leading U.S. industries are competitive in the
global marketplace, changes should be made in the export control
system.
ACTION ITEMS
------------------------------------------------------ Chapter 3:2.3.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 3:2.3.2
Agree. We believe that changes in the federal export control system
can be beneficial if balanced against national security concerns.
Our reports over the last few years have dealt with improving various
aspects of export control programs in the context of the need to
balance the goals of U.S. competitiveness with protecting national
security.
IMPLEMENTATION
------------------------------------------------------ Chapter 3:2.3.3
Not Implemented--Action Taken. Commerce is working with other
agencies to reform and streamline the export control system.
Regulations are being rewritten, jurisdictional disputes are being
addressed, export control lists continue to be reviewed, and efforts
have been made to improve other agencies' access to licensing data.
However, a number of these actions are not yet complete, and
legislation to reauthorize the Export Administration Act has not yet
been passed.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 3:2.3.4
Export Controls: License Screening and Compliance Procedures Need
Strengthening (GAO/NSIAD-94-178, June 14, 1994).
Nuclear Nonproliferation: Licensing Procedures for Dual-Use Exports
Need Strengthening (GAO/T-NSIAD-94-163, May 17, 1994).
Nuclear Nonproliferation: Export Licensing Procedures for Dual-Use
Items Need to Be Strengthened (GAO/NSIAD-94-119, April 26, 1994).
Export Controls: Actions Needed to Improve Enforcement
(GAO/NSIAD-94-28, Dec. 30, 1993).
Export Promotion: Governmentwide Plan Contributes to Improvements
(GAO/T-GGD-94-35, Oct. 26, 1993).
Export Promotion: Initial Assessment of Governmentwide Strategic
Plan (GAO/T-GGD-93-48, Sept. 29, 1993).
Export Controls: Issues in Removing Militarily Sensitive Items From
the Munitions List (GAO/NSIAD-93-67, Mar. 31, 1993).
Export Promotion: Federal Programs Lack Organizational and Funding
Cohesiveness (GAO/NSIAD-92-49, Jan. 10, 1992).
DOC04: STRENGTHEN THE
TOURISM POLICY COUNCIL
-------------------------------------------------------- Chapter 3:2.4
Revitalize the Tourism Policy Council and give it greater authority
to coordinate federal tourism promotion efforts.
ACTION ITEMS
------------------------------------------------------ Chapter 3:2.4.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 3:2.4.2
Generally Agree. We have not specifically assessed the need to
strengthen the Tourism Policy Council. However, in concert with
Commerce's responsibility for promoting tourism, we have advocated
several changes to tourism programs. These include coordinating
among government agencies to speed international airport clearance
processing and to improve visitor facilitation. Given the size and
diversity of the tourism industry, efficient and effective
coordination of government and private sector activities is a
prerequisite to successful tourism promotion.
IMPLEMENTATION
------------------------------------------------------ Chapter 3:2.4.3
Not Implemented--Action Taken. Tourism Policy Council working groups
are drafting strategies to improve coordination of federal tourism
development activities and their promotion, but no final decisions
have been made.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 3:2.4.4
International Trade: Easing Foreign Visitors' Arrival at U.S.
Airports (GAO/NSIAD-91-6, Mar. 8, 1991).
Foreign Visitor Facilitation (GAO/T-NSIAD-90-56, July 18, 1990).
DOC05: CREATE
PUBLIC/PRIVATE COMPETITION
FOR THE NOAA FLEET
-------------------------------------------------------- Chapter 3:2.5
A pilot program is recommended to open the National Oceanic and
Atmospheric Administration (NOAA) fleet to public and private
competition to bolster the aging fleet.
ACTION ITEMS
------------------------------------------------------ Chapter 3:2.5.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 3:2.5.2
Agree. NPR's recommendation is consistent with the recommendations
in our August 3, 1994, report on research fleet modernization. In
that report, we recommended that in order to ensure that all viable
and cost-effective options for accomplishing NOAA's program missions
are considered in making decisions on future fleet modernization, the
Administrator, NOAA, should (1) ensure that sufficient funding is
made available to carry out needed efforts to assess the operational
feasibility and cost-effectiveness of using private sector
contracting and charter services for vessels to support such mission
requirements as hydrographic chartering and mapping, (2) continue to
develop a methodology to assess the results of these efforts, and (3)
reevaluate the level of vessel chartering in the fleet modernization
plan in light of the results of these assessments.
IMPLEMENTATION
------------------------------------------------------ Chapter 3:2.5.3
Partially Implemented. In February 1994, NOAA issued a solicitation
for a contract to acquire sounding data in western Long Island Sound,
Vineyard Sound, and Nantucket Sound. The solicitation represents an
attempt by NOAA to experiment with a program of public-private
competition to help fulfill NOAA's minimum number of days at sea,
which may include NOAA bidding against private contractors in areas
in which the agency can be competitive. NOAA expects to award the
contract in the near future. This hydrographic survey effort is
expected to take approximately a year.
To obtain an independent review of its Fleet Replacement and
Modernization Plan, NOAA contracted with the National Research
Council (NRC) of the National Academy of Sciences, the National
Academy of Engineering, and the Institute of Medicine. NRC initiated
its review on December 8, 1993, and issued a final report with
recommendations in April 1994. In May 1994, a NOAA committee was
established to respond to NRC's recommendations. The committee has
formed task teams that are currently analyzing how best to implement
the recommendations.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 3:2.5.4
Research Fleet Modernization: NOAA Needs to Consider Alternatives to
the Acquisition of New Vessels (GAO/RCED-94-170, Aug. 3, 1994).
Ocean Research Vessels: NOAA Fleet Modernization Plan
(GAO/T-RCED-94-52, Oct. 21, 1993).
DOC06: IMPROVE MARINE
FISHERIES MANAGEMENT
-------------------------------------------------------- Chapter 3:2.6
To help protect fishing resources and provide new income to the
government, NOAA should collaborate with Congress and fishing
industry representatives to establish appropriate user fees to help
offset management costs for national fisheries zones.
ACTION ITEMS
------------------------------------------------------ Chapter 3:2.6.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 3:2.6.2
Insufficient Information. We have insufficient information to
comment on this recommendation. User fees to help offset management
costs for national fishery zones could be a source of additional
revenue to the federal government. Implementing such user fees
should be considered in the context of their costs and benefits to
fishery zones management.
IMPLEMENTATION
------------------------------------------------------ Chapter 3:2.6.3
Not Implemented--Action Taken. In part on the basis of discussions
with a user group composed of agency officials, congressional staff,
and fishing industry representatives, in March 1994, Commerce
developed and submitted proposals to OMB to amend the Magnuson
Fishery Conservation and Management Act. The Secretary of Commerce
transmitted the administration's proposed amendments to the act to
Congress on May 16, 1994. These proposals would establish user fees
for the commercial use of marine fisheries resources. The
administration's proposed amendments to the act were introduced in
May as H.R. 4430 and S. 2138.
The Subcommittee on Fisheries Management, House Committee on Merchant
Marine and Fisheries, has held eight hearings on reauthorizing the
Magnuson Act, including one on user fees, and a bill was reported out
of the Subcommittee on August 12, 1994. However, the bill does not
provide for the collection of user fees. The Senate Committee on
Commerce, Science, and Transportation has held a field hearing on the
administration's proposal.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 3:2.6.4
None.
DOC07: PROVIDE EDA PUBLIC
WORKS LOAN GUARANTEES FOR
INFRASTRUCTURE ASSISTANCE
-------------------------------------------------------- Chapter 3:2.7
This recommendation would provide the EDA with authority to use part
of its funding as a reserve for loan guarantees for various public
economic development projects.
ACTION ITEMS
------------------------------------------------------ Chapter 3:2.7.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 3:2.7.2
Insufficient Information. We have not reviewed this concept for
financing improvements to the nation's infrastructure.
IMPLEMENTATION
------------------------------------------------------ Chapter 3:2.7.3
Not Implemented--Action Taken. EDA's reauthorization bill (S. 2257)
would provide loan guarantees for infrastructive assistance.
However, the reauthorization bill has not been enacted.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 3:2.7.4
None.
DOC08: ESTABLISH A
MANUFACTURING TECHNOLOGY
DATA BANK
-------------------------------------------------------- Chapter 3:2.8
To help U.S. manufacturing firms increase their capabilities,
Commerce should create a new database to provide technical
information and contacts.
ACTION ITEMS
------------------------------------------------------ Chapter 3:2.8.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 3:2.8.2
Insufficient Information. While we do support the concept of
providing U.S. manufacturing firms with the technical information
and contacts needed to improve their competitiveness, we have not
addressed this issue as it relates to the need to create new
databases.
IMPLEMENTATION
------------------------------------------------------ Chapter 3:2.8.3
Not Implemented--Action Taken. Commerce has identified several
databases for inclusion in the NPR- recommended manufacturing
technology data bank. Industry comments have been requested, but the
database has not been created. Commerce officials said that they
expect to implement this recommendation in 1995.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 3:2.8.4
Science and Technology: Federal Efforts to Collect and Analyze
Information on Foreign Science and Technology (GAO/T-RCED-93-08, Feb.
23, 1993).
Technology Transfer: Federal Efforts to Enhance the Competitiveness
of Small Manufacturers (GAO/RCED-92-30, Nov. 22, 1991).
Trade and Economic Data: Many Federal Agencies Collect and
Disseminate Information (GAO/NSIAD-91-173, May 1, 1991).
DOC09: EXPAND THE
ELECTRONIC AVAILABILITY OF
CENSUS DATA
-------------------------------------------------------- Chapter 3:2.9
To increase access to and use of census data, the Census Bureau
should create a computerized census information center.
ACTION ITEMS
------------------------------------------------------ Chapter 3:2.9.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 3:2.9.2
Generally Agree. With the exception of compact-disc,
read-only-memory (CD-ROM) products, we have not studied the Census
Bureau's use of new technology to disseminate information. However,
we support exploring how technology might help in better meeting
users' federal information needs.
IMPLEMENTATION
------------------------------------------------------ Chapter 3:2.9.3
Partially Implemented. Census has taken a number of steps to expand
the electronic availability of census data. It established an 800
voice phone line for state data centers, developed an Internet
prototype for an interactive Census Visitors Center, and is expanding
the number of types of reports and databases available through the
Internet. Census is actively involved with governmentwide
initiatives to coordinate and publicize the availability of online
information services.
Census is currently evaluating the costs and benefits of expanding
electronic access to census data. In fiscal years 1995 and 1996,
Census will plan and seek funding for continuing expansion of
electronic access to census data. It plans to link its regional
offices to these systems and to license them to state data centers
and affiliates.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 3:2.9.4
CD-ROM Issues (GAO/GGD-93-57R, July 22, 1993).
Information Dissemination: Federal CD-ROM Titles--What Are Available
and How They Were Priced (GAO/IMTEC-93-34FS, June 30, 1993).
Federal Register: Better Electronic Technology Planning Could
Improve Production and Dissemination (GAO/GGD-93-5, Nov. 10, 1992).
Geographic Information Systems: Information on Federal Use and
Coordination (GAO/IMTEC-91-72FS, Sept. 27, 1991).
DOC10: AMEND THE OMNIBUS
TRADE AND COMPETITIVENESS
ACT TO INCREASE THE DATA
QUALITY OF THE NATIONAL
TRADE DATA BANK
------------------------------------------------------- Chapter 3:2.10
This recommendation outlines improvements needed in the quality and
quantity of data in this business-oriented data bank.
ACTION ITEMS
----------------------------------------------------- Chapter 3:2.10.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 3:2.10.2
Generally Agree. We agree that data quality and quantity should be a
major consideration of any database. We suggested in earlier reports
that Commerce could improve the coverage of information in the
National Trade Data Bank by adding several additional databases to
it.
IMPLEMENTATION
----------------------------------------------------- Chapter 3:2.10.3
Partially Implemented. The Omnibus Trade and Competitiveness Act of
1988 has not been amended as suggested, but the fiscal year 1995
Department of Commerce appropriation allows the Department to recover
the full cost of disseminating economic and statistical data rather
than restricting the Department to "reasonable" fees consistent with
5 U.S.C. section 552. This new pricing structure and increased
usage due to improved marketing efforts are resulting in an expanded
database. The National Trade Data Bank is available at Federal
Depository libraries, through subscriptions to monthly compact discs,
and on the Internet. According to Commerce, considerable
enhancements have been made to the database and users are pleased.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 3:2.10.4
Export Promotion: Problems With Commerce's Commercial Information
Management System (GAO/NSIAD-89-162, Aug. 31, 1989).
Export Promotion: Status of Commerce's Worldwide Commercial
Information Management System (GAO/NSIAD-89-100, Jan. 23, 1989).
DOC11: ELIMINATE
LEGISLATIVE BARRIERS TO THE
EXCHANGE OF BUSINESS DATA
AMONG FEDERAL STATISTICAL
AGENCIES
------------------------------------------------------- Chapter 3:2.11
Eliminate legislative barriers to the exchange of business data among
federal agencies (the Census Bureau, Bureau of Labor Statistics, and
Bureau of Economic Analysis) to reduce the reporting burden on
American business.
ACTION ITEMS
----------------------------------------------------- Chapter 3:2.11.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 3:2.11.2
Agree. We agree with the need for better data sharing and
cooperation among federal statistical agencies, and we supported the
passage of the Foreign Direct Investment and International Financial
Data Improvements Act of 1990. This legislation authorized the
linking of data on foreign direct investment in U.S. companies
collected by the Bureau of Economic Analysis with data on all U.S.
plants collected by the Bureau of the Census. We would encourage
more business data sharing while still protecting privacy concerns.
This endorsement is based on ongoing work evaluating the efficiency
and effectiveness of the Census Bureau, Bureau of Labor Statistics,
Bureau of Economic Analysis, and the National Center for Health
Statistics.
IMPLEMENTATION
----------------------------------------------------- Chapter 3:2.11.3
Not Implemented--Action Taken. In October 1993, OMB said it would
take the lead in drafting data sharing legislation. OMB recently
provided draft legislation to the heads of the statistical agencies
and initiated interagency discussions of alternatives. However, no
legislation has been introduced.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 3:2.11.4
Commerce Issues (GAO/OCG-93-12TR, Dec. 1992).
DOC12: ESTABLISH A SINGLE
CIVILIAN OPERATIONAL
ENVIRONMENTAL POLAR
SATELLITE PROGRAM
------------------------------------------------------- Chapter 3:2.12
To reduce duplication and save taxpayers a billion dollars over the
next decade, various current and proposed polar satellite programs
should be consolidated under NOAA.
ACTION ITEMS
----------------------------------------------------- Chapter 3:2.12.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 3:2.12.2
Generally Agree. We generally agree that Department of Defense and
Department of Commerce polar-orbiting environmental satellite systems
should be consolidated to the maximum extent possible. However, we
have not verified the estimated savings associated with converging
these military and civilian satellite programs. Further, we believe
that while consolidated funding and management offers certain
advantages, such efforts present significant challenges.
IMPLEMENTATION
----------------------------------------------------- Chapter 3:2.12.3
Not Implemented--Action Taken. Although a number of actions have
occurred toward implementating this recommendation, a single
satellite program has not been established. On May 5, 1994, the
President signed Presidential Decision Directive NSTC-2, "Convergence
of U.S.-Polar-Orbiting Operational Environmental Satellite Systems."
The directive requires that the Department of Commerce and Department
of Defense (DOD) integrate their polar-orbiting environmental
satellite systems into a single, converged, national system; that
appropriate aspects of the National Aeronautic and Space
Administration's (NASA) Earth Observing System (EOS) be incorporated
into the national program; and that administrative responsibility for
this national program be placed under a tri-agency integrated program
office (IPO). Also in May 1994, DOD, DOC, and NASA issued the
"Implementation Plan for a Converged Polar-Orbiting Environmental
Satellite System." A tri-agency team has been established to execute
the first phase of this implementation plan. The National
Polar-Orbiting Operational Environmental Satellite System Integrated
Program Office was formally established on October 3, 1994.
Although section 2001 of H.R. 3400, the "Government Reform and
Savings Act of 1993," would have directed DOD, DOC, and NASA to
propose a single operational polar environmental satellite system,
this legislation has not been enacted. Nevertheless, the
Presidential Decision Directive and tri-agency implementation plan
achieved the intent of this legislation. A tri-agency group led by
NOAA's Office of Policy and Strategic Planning, and including
legislative specialists from DOD and NASA, has been created to assess
whether legislation formally establishing the National Polar-Orbiting
Operational Environmental Satellite System should be drafted. If
this group concludes that legislation could facilitate convergence of
the programs, it would make a formal request to the 104th Congress.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 3:2.12.4
National Space Issues: Observations on Defense Space Programs and
Activities (GAO/NSIAD-94-253, Aug. 16, 1994).
Weather Satellites: Economies Available by Converging Government
Meteorological Satellites (GAO/NSIAD-87-107, Apr. 23, 1987).
DOC13: USE SAMPLING TO
MINIMIZE COST OF THE
DECENNIAL CENSUS
------------------------------------------------------- Chapter 3:2.13
Use sampling rather than more costly methods of counting
nonrespondents to the next decennial census. (Savings will occur but
are beyond the time frame of this analysis.)
ACTION ITEMS
----------------------------------------------------- Chapter 3:2.13.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 3:2.13.2
Agree. We agree that the use of statistical sampling would reduce
the time and costly labor-intensive fieldwork required to follow up
on census nonrespondents. In addition, the census can derive
benefits from sampling in terms of a reduction in the burden on
respondents and potentially increased data quality. Because of its
critical nature to census planning and the need for operational
testing, any possible legal issues concerning sampling should be
resolved as expeditiously as possible.
IMPLEMENTATION
----------------------------------------------------- Chapter 3:2.13.3
Not Implemented--Action Taken. Commerce is considering the need for
legislation to permit use of sampling in the census. However,
sampling methods for nonresponses are being developed for the 1995
Census Test.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 3:2.13.4
Decennial Census: Test Design Proposals Are Promising, But
Fundamental Reform Is Still at Risk (GAO/T-GGD-94-12, Oct. 7, 1993).
Decennial Census: Focused Action Needed Soon to Achieve Fundamental
Breakthroughs (GAO/T-GGD-93-32, May 27, 1993).
Decennial Census: Fundamental Reform Jeopardized by Lack of Progress
(GAO/T-GGD-93-6, Mar. 2, 1993).
Commerce Issues (GAO/OCG-93-12TR, Dec. 1992).
Decennial Census: Opportunities for Fundamental Reform
(GAO/T-GGD-92-51, June 10, 1992).
Decennial Census: 1990 Results Show Need for Fundamental Reform
(GAO/GGD-92-94, June 9, 1992).
DOC14: BUILD A BUSINESS AND
ECONOMIC INFORMATION NODE
FOR THE INFORMATION HIGHWAY
------------------------------------------------------- Chapter 3:2.14
To assist in the distribution of government information to private
citizens, Commerce should build a business and economic information
node to the "information highway."
ACTION ITEMS
----------------------------------------------------- Chapter 3:2.14.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 3:2.14.2
Insufficient Information. While we have only recently started
studying issues affecting the development of a business and economic
information node to the information highway, we have reported on the
current and future needs of federal information users. Contacts with
trade, business, and commercial organizations revealed an interest in
receiving a variety of federal documents in such electronic formats
as electronic mail, bulletin boards, or on-line databases.
IMPLEMENTATION
----------------------------------------------------- Chapter 3:2.14.3
Partially Implemented. Commerce is providing an information service
called "Stat-USA" on the Internet. Stat-USA currently includes
economic, financial, and trade data, and future plans call for
additional data including demographic and social statistics,
government procurement opportunities, and federal rules and
regulations. Commerce is also working to provide common formats and
protocols for data transfer and standards for governmentwide use, but
these remain substantially undeveloped.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 3:2.14.4
Federal Information: Users' Current and Future Technology Needs
(GAO/GGD-89-20FS, Nov. 30, 1988).
DOC15: INCREASE ACCESS TO
CAPITAL FOR MINORITY
BUSINESS
------------------------------------------------------- Chapter 3:2.15
Commerce and the Small Business Administration (SBA) should provide
the President with recommendations to improve SBA and Minority
Business Development Administration (MBDA) programs.
ACTION ITEMS
----------------------------------------------------- Chapter 3:2.15.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 3:2.15.2
Insufficient Information. We have not done any work that looked
specifically at the access to capital issue. Our work has identified
program weaknesses and improvements needed at MBDA and SBA. Our
recommendations are aimed at improving the agencies' effectiveness
and performance.
IMPLEMENTATION
----------------------------------------------------- Chapter 3:2.15.3
Partially Implemented. MBDA has recommended changes to the Community
Reinvestment Act to improve minority business development. For the
longer term, MBDA has begun several initiatives to develop additional
recommendations through seminars, forums, regional meetings, and
developing standards for portfolio management. MBDA was instrumental
in changes to the Community Reinvestment Act.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 3:2.15.4
Minority Business: Minority Business Development Agency Needs to
Address Program Weaknesses (GAO/RCED-91-114, Apr. 16, 1991).
Minority Business: Management Improvements Needed at Minority
Business Development Agency (GAO/RCED-90-69, Jan. 19, 1990).
DEPARTMENT OF DEFENSE (DOD)
============================================================ Chapter 4
OVERALL SUMMARY
---------------------------------------------------------- Chapter 4:1
DOD has made some progress in implementing its 12 NPR
recommendations. One of the recommendations has been fully
implemented, and the remainder have advanced to some degree. Five of
the recommendations have been partially implemented and the remaining
six have not been implemented, but some action has been taken. DOD
does not expect to finish implementation of some recommendations
until as late as the year 2000. We believe adopting the
recommendations throughout an organization as large as DOD could
require an even longer period of time.
Many of NPR's recommended improvements to DOD operations are in line
with the thrust of our reports and testimonies presented over the
last several years. If properly implemented, these actions could
result in substantially greater efficiencies in DOD operations. When
changing existing operations, however, we believe that it is
important to understand why existing procedures were put in place so
as to avoid the possibility of making costly mistakes. In addition
to implementing the NPR recommendations, we believe that DOD must
improve its financial management systems and internal controls as
well as its inventory management.
GAO CONTACT
-------------------------------------------------------- Chapter 4:1.1
Neal Curtin, Director of Reporting, National Security and
International Affairs Division, (202) 512-6152.
RECOMMENDATION INFORMATION
---------------------------------------------------------- Chapter 4:2
DOD01: REWRITE POLICY
DIRECTIVES TO INCLUDE BETTER
GUIDANCE AND FEWER
PROCEDURES
-------------------------------------------------------- Chapter 4:2.1
DOD should clarify policy directives and procedures to reduce
administrative burden and unnecessary regulatory controls.
ACTION ITEMS
------------------------------------------------------ Chapter 4:2.1.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 4:2.1.2
Agree. We endorse efforts to clarify the policy directives to reduce
unnecessary procedures and controls. However, there are risks that
must be considered. Directives were created based on extensive
experience and lessons learned. Changing existing directives without
adequate consideration of what brought about the original directives
invites a repetition of costly mistakes. Revisions to existing
directives should ensure that appropriate checks and balances are
maintained.
IMPLEMENTATION
------------------------------------------------------ Chapter 4:2.1.3
Partially Implemented. On June 24, 1994, DOD Directive 5025.1 was
issued which declared that there shall be a single streamlined system
for DOD directives. It also states that directives shall be written
in such a way as to not require publishing implementing documents by
the DOD components. The broader effort to reduce or streamline all
policy and procedural documents, however, is not expected to be
completed for two years.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 4:2.1.4
Test and Evaluation: DOD Has Been Slow in Improving Testing of
Software-Intensive Systems (GAO/NSIAD-93-198, Sept. 29, 1993).
Export Controls: Issues in Removing Militarily Sensitive Items From
the Munitions List (GAO/NSIAD-93-76, Mar. 31, 1993).
Contract Pricing: Unallowable Costs Charged to Defense Contracts
(GAO/NSIAD-93-79, Nov. 20, 1992).
DOD02: ESTABLISH A UNIFIED
BUDGET FOR THE DEPARTMENT OF
DEFENSE
-------------------------------------------------------- Chapter 4:2.2
Give commanders greater flexibility to set priorities, solve funding
problems, and resolve unplanned requirements at the lowest
appropriate operating level.
ACTION ITEMS
------------------------------------------------------ Chapter 4:2.2.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 4:2.2.2
Insufficient Information. We are not familiar with the DOD
experiment called the Unified Budget Test referred to in the NPR
report and therefore cannot comment on this recommendation
specifically. While this overall recommendation is broadly worded,
the elaboration of the recommendation and the discussion concerning
minimizing budget restrictions in the NPR report as it relates to DOD
appear to focus on the operations and maintenance (O&M) portion of
the budget. DOD's budget is divided into six major appropriations
categories--military personnel; O&M; procurement; research
development, test, and evaluation; military construction; and family
housing. The O&M account represents the largest portion of the
proposed fiscal year 1995 DOD budget--almost 37 percent and $93
billion. The O&M budget is further subdivided by DOD components and
then again within these components. This recommendation is not clear
as to how high a level of aggregation of the O&M budget is desirable
or how a unified budget would be affected by the lack of needed
improvements in DOD's financial management systems and internal
controls.
IMPLEMENTATION
------------------------------------------------------ Chapter 4:2.2.3
Not Implemented--Action Taken. A provision was included in the
President's fiscal year 1995 budget to permit family housing costs to
be incurred in the Operations and Maintenance (O&M) account if funds
are available from base support savings. The funds are not to exceed
$25 million for the Army, $25 million for the Air Force, $20 million
for the Navy, and $5 million for the Marine Corps. DOD believes this
change would provide flexibility in responding to emergencies. DOD
is also reviewing policies to allow DOD components to incur costs for
non-centrally managed equipment requirements in their O&M account.
The Defense Department believes this will encourage local commanders
to make the best decisions in "buy" vs. "repair" issues.
DOD reports that several of its plans require legislation action, but
no action has been taken as of yet.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 4:2.2.4
None.
DOD03: PURCHASE BEST VALUE
COMMON SUPPLIES AND SERVICES
-------------------------------------------------------- Chapter 4:2.3
Allow managers and commanders to purchase the best value common
supplies and services from public, private, or nonprofit sources.
ACTION ITEMS
------------------------------------------------------ Chapter 4:2.3.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 4:2.3.2
Generally Agree. We have reported that procurement officials are
already authorized under existing procurement law to consider source
selection factors other than price. We support efforts to implement
and simplify "best value" practices and make them more usable for
small dollar value procurements. To the extent that the NPR
recommendation may seek to expand contracting authority, this would
require further study.
IMPLEMENTATION
------------------------------------------------------ Chapter 4:2.3.3
Not Implemented--Action Taken. DOD is conducting pilot tests to
increase the flexibility of installation commanders to locally
procure certain consumable items as well as wood products. The tests
are under way but have not yet been concluded. DOD has also issued a
directive on small purchase contracting authority, urging that small
purchase contracting authority be granted to "other than procurement
personnel" who have the necessary training. Most of the efforts to
purchase best value common supplies and services are not expected to
be completed until the end of next year.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 4:2.3.4
Defense Procurement: Programs for Considering Vendor's Past
Performance in Awarding Contract (GAO/NSIAD-93-63, June 30, 1993).
DOD04: OUTSOURCE NON-CORE
DEPARTMENT OF DEFENSE
FUNCTIONS
-------------------------------------------------------- Chapter 4:2.4
By contracting out non-core functions (from towing services to
certain information technology functions), DOD will be better able to
focus on its core responsibilities.
ACTION ITEMS
------------------------------------------------------ Chapter 4:2.4.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 4:2.4.2
Agree. We agree with this recommendation and would support an
approach where functions are outsourced on a case by case basis. For
example, we recently reviewed a price comparison of DOD printing
operations and found that, like other price comparisons done in the
past, the recent one, drawn largely from DOD facilities in the
Washington area, showed that significant savings could be achieved if
more of DOD's printing and duplicating work were procured
commercially rather than being performed in-house. We are doing
additional price comparisons to determine the extent to which DOD
printing and duplicating savings can be achieved nationwide. Similar
studies would be needed on other functional areas to ensure that DOD
would get better quality service, save money, and reduce the
administrative burden.
IMPLEMENTATION
------------------------------------------------------ Chapter 4:2.4.3
Partially Implemented. A new executive order has been drafted which
will replace Executive Order 12615, Performance of Commercial
Activities. The executive order contains guidance for making
decisions on making or contracting for certain government
acquisitions. The efforts on contracting out in DOD are expected to
be completed between now and the year 2000.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 4:2.4.4
Defense Management: Printing Operations at the Department of Defense
(GAO/T-NSIAD-93-19, July 15, 1993).
DOD05: CREATE INCENTIVES
FOR THE DEPARTMENT OF
DEFENSE TO GENERATE REVENUES
-------------------------------------------------------- Chapter 4:2.5
This recommendation proposes giving managers and commanders the
ability to generate income at the installation level by allowing the
Corps of Engineers to recover its costs for processing certain
commercial applications and by establishing goals for solid waste
reduction and recycling.
ACTION ITEMS
------------------------------------------------------ Chapter 4:2.5.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 4:2.5.2
Insufficient Information. We have not done specific work regarding
whether the Corps of Engineers should attempt to generate income to
recover costs at the installation level. Consequently, we are not in
a position to address this matter regarding the Corps.
We have, however, reviewed DOD's resource recovery and recycling
program. Our report, Widespread Abuse in Recycling Program Increases
Funds for Recreation Activities issued in December 1993, looked at
DOD units other than the Corps of Engineers and found widespread
abuse in the recycling program. Millions of dollars were being used
annually for morale, welfare, and recreation (MWR) activities that
should have been used instead to offset the need for appropriated
funds or be returned to the U.S. Treasury. We reported that this
was occurring because military bases were routinely receiving money
from the sale of aircraft, vehicles, and other materials that DOD
policy specifically excluded from the recycling program and then were
using the proceeds to fund MWR activities. Although the purpose of
the program is to reduce the volume of items going to the waste
stream, we found that about 90 percent of the program's proceeds
appeared to represent excluded items and items that would not go into
the waste stream.
IMPLEMENTATION
------------------------------------------------------ Chapter 4:2.5.3
Not Implemented--Action Taken. The Acting Assistant Secretary of the
Army (Civil Works) offered proposed legislation, which was modeled on
the proposed Water resources Development Act of 1994 (H.R. 4460), to
enable the Secretary of the Army to establish fees for the evaluation
of commercial permit applications. These fees would also be
collected for the recover of costs associated with the preparation of
environmental impact statements and for wetlands delineations.
Congress also considered the Government Reform and Savings Act of
1993 (H.R. 3400), which would have amended section 2577 of title 10
U.S.C. to allow installation commanders to use revenues from sales
of recyclable materials for operations and maintenance or
morale-related purposes. The provision was not included in the
Government Management Reform Act of 1994 (P.L. 103-356), which was
enacted on October 13, 1994.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 4:2.5.4
Widespread Abuse in Recycling Program Increases Funds for Recreation
Activities (GAO/NSIAD-94-40, Dec. 10, 1993).
DOD06: ESTABLISH AND
PROMOTE A
PRODUCTIVITY-ENHANCING
CAPITAL INVESTMENT FUND
-------------------------------------------------------- Chapter 4:2.6
DOD should be authorized to expand its capital investment fund to
manage its operations in a more businesslike manner.
ACTION ITEMS
------------------------------------------------------ Chapter 4:2.6.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 4:2.6.2
Generally Agree. We generally agree with the concept of promoting
productivity-enhancing capital investments, provided that the
associated fund is effectively managed. However, our experience with
DOD's capital asset program, now funded under the Defense Business
Operations Fund, has not been good. DOD has not established adequate
procedures, including controls over revenues and expenditures and
separate reserve accounts, to accurately track and account for
capital asset revenues, obligations, and expenditures. These
weaknesses have raised questions about appropriate funding levels,
justification of investment decisions, and accuracy of budget
presentations. We have ongoing work in this area, including
examining the need and justification for selected capital assets and
the adequacy of oversight and control of the capital program. Until
DOD has more fully developed its policies and procedures governing
the capital program, we are not in a position to support expansion of
this concept for financing capital improvements.
IMPLEMENTATION
------------------------------------------------------ Chapter 4:2.6.3
Fully Implemented. DOD has the authority under the Defense Business
Operating Fund (DBOF) to budget for and make capital improvements.
This authority predates the NPR initiative. DBOF has the methodology
in place to fund productivity-enhancing capital investments, which
serves to implement this recommendation. Investments for fiscal year
1994 were reported to be 3 percent of sales.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 4:2.6.4
Defense Business Operations Fund: Improved Pricing Practices and
Financial Reports Are Needed to Set Accurate Prices (GAO-AIMD-94-132,
June 22, 1994).
Financial Management: DOD Efforts to Improve Operations of the
Defense Business Operations Fund (GAO/T-AIMD-94-170, Apr. 28, 1994).
Defense Management Initiative: Limited Progress in Implementing
Management Improvement Initiatives (GAO/T-AIMD-94-105, Apr. 14,
1994).
Financial Management: Opportunities to Strengthen Management of the
Defense Business Operations Fund (GAO/T-AFMD-93-6, June 16, 1993).
Financial Management: Status of the Defense Business Operations Fund
(GAO/AFMD-92-79, June 15, 1992).
Industrial Funds: Weaknesses Remain in the Department of Defense's
Capital Equipment Program (GAO/NSIAD-91-175, Apr. 17, 1991).
DOD07: CREATE A HEALTHY AND
SAFE ENVIRONMENT FOR
DEPARTMENT OF DEFENSE
ACTIVITIES
-------------------------------------------------------- Chapter 4:2.7
To create a safe environment, DOD must take action in the areas of
cleanup of hazardous wastes, use of environmental technology, and
pollution prevention.
ACTION ITEMS
------------------------------------------------------ Chapter 4:2.7.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 4:2.7.2
Agree. We strongly support actions by DOD and other agencies aimed
at a safer environment. Cleanup, technology, and pollution
prevention are among the major considerations in an overall program,
and our past reports and ongoing work support an emphasis on them.
Past efforts to reach environmental protection goals and ensure that
limited resources are used wisely have been hindered by limited
guidance and weaknesses in information systems and financial
controls.
IMPLEMENTATION
------------------------------------------------------ Chapter 4:2.7.3
Partially Implemented. The Deputy Secretary of Defense established
the Environmental Security Technical Certification Program to
demonstrate and validate the most promising and innovative
environmental techniques that target DOD's most urgent environmental
needs. The techniques must be projected to payback the investment
within five years through cost savings and improved efficiency. DOD
also issued a policy memorandum from the Under Secretary of Defense
(Acquisition) on December 10, 1993 to implement Executive Order
12856, which includes pollution prevention. It emphasized the goals
of providing communities with information about hazardous substances
stored at government facilities and improving facility management.
Action on other parts of this recommendation is expected to be
completed by 1995.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 4:2.7.4
Environment: DOD's New Environmental Security Strategy Faces
Barriers (GAO/NSIAD-94-142, Sept. 26, 1994).
Environmental Cleanup: Better Data Needed for Radioactively
Contaminated Defense Sites (GAO/NSIAD-94-168, Aug. 24, 1994.)
Environmental Cleanup: Inconsistent Sharing Arrangement May Increase
Defense Costs (GAO/NSIAD-94-231, July 7, 1994).
Natural Resources: Defense and Interior Can Better Manage Land
Withdrawn for Military Use (GAO/NSIAD-94-87, Apr. 26, 1994).
Environmental Cleanup: Too Many High Priority Sites Impede DOD's
Program (GAO/NSIAD-94-133, Apr. 21, 1994).
Chemical Weapons Destruction: Advantages and Disadvantages of
Alternatives to Incineration (GAO/NSIAD-94-123, Mar. 18, 1994).
Environmental Compliance: Guidance Needed in Programming Defense
Construction Projects (GAO/NSIAD-94-22, Nov. 26, 1993).
Superfund: Backlog of Unevaluated Federal Facilities Slows Cleanup
Efforts (GAO/RCED-93-119, July 20, 1993).
Ozone-Depleting Chemicals: Increased Priority Needed If DOD Is to
Eliminate Their Use (GAO/NSIAD-92-21, Nov. 13, 1991).
Hazardous Waste: Attention to DOD Inventories of Hazardous Materials
Needed (GAO/NSIAD-90-11, Nov. 6, 1989).
DOD08: ESTABLISH A DEFENSE
QUALITY WORKPLACE
-------------------------------------------------------- Chapter 4:2.8
Encourage the use of quality management concepts at all levels in the
Department of Defense.
ACTION ITEMS
------------------------------------------------------ Chapter 4:2.8.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 4:2.8.2
Generally Agree. We strongly support the idea of using quality
management concepts at all levels in DOD. We support DOD's using
these concepts to pursue an organizational culture that is devoted to
continuous improvement; the quest for more economic, efficient, and
effective operations in all activities; and the pilot testing and
departmentwide implementation of the best management practices in the
public and private sectors. While we have not specifically
recommended that DOD establish a "defense quality workplace," we have
reported that DOD needs to change its culture with respect to certain
areas, such as increasing emphasis on economy and efficiency in
inventory and supply management, and particularly training, since
training is a key element in perpetuating cultural change. We have
also recommended that DOD pilot test a number of commercial practices
in an effort to find ways to improve its operations and reported that
most federal installations that practice Total Quality Management
benefit in such areas as increased productivity and improved quality,
timeliness, attention to customer requirements, and problem-solving
skills.
IMPLEMENTATION
------------------------------------------------------ Chapter 4:2.8.3
Partially Implemented. A DOD Quality Advisor is in place and is
working with senior managers on the DOD staff to implement quality
management. Curricula are also in place throughout DOD. The agency
is currently in the process of training many of its personnel in
Total Quality Management.
Action on other parts of this recommendation is expected to be
completed by 1998.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 4:2.8.4
National Space Issues: Observations on Defense Space Programs and
Activities (GAO/NSIAD-94-253, Aug. 16, 1994).
Commercial Practices: DOD Could Reduce Electronics Inventories by
Using Private Sector Techniques (GAO/NSIAD-94-110, June 29, 1994).
Commercial Practices: Leading Edge Practices Can Help DOD Better
Manage Clothing and Textile Stocks (GAO/NSIAD-94-64, April 13, 1994).
Defense Transportation: Commercial Practices Offer Improvement
Opportunities (GAO/NSIAD-94-26, Nov. 26, 1993).
Defense Inventory: Applying Commercial Purchasing Practices Should
Help Reduce Supply Costs (GAO/NSIAD-93-112, Aug. 6, 1993).
Commercial Practices: DOD Could Save Millions by Reducing
Maintenance and Repair Inventories (GAO/NSIAD-93-155, June 7, 1993).
DOD Food Inventory: Using Private Sector Practices Can Reduce Costs
and Eliminate Problems (GAO/NSIAD-93-110, June 4, 1993).
Organizational Culture: Techniques Companies Use to Perpetuate or
Change Beliefs and Values (GAO/NSIAD-92-105, Feb. 27, 1992).
DOD09: MAXIMIZE THE
EFFICIENCY OF DOD HEALTH
CARE OPERATIONS
-------------------------------------------------------- Chapter 4:2.9
Use emerging technology to upgrade care at DOD health care
facilities.
ACTION ITEMS
------------------------------------------------------ Chapter 4:2.9.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 4:2.9.2
Agree. We fully support the prudent use of emerging technology to
upgrade and improve health care delivery at DOD health care
facilities. The primary means for using emerging technology to
achieve improvements in clinical operations is the Composite Health
Care System (CHCS)--a fully integrated hospital information system.
The outpatient and ancillary portions of the system are nearly ready
for worldwide activation. The physician inpatient order entry
capability requires redesign. This system has significant potential.
IMPLEMENTATION
------------------------------------------------------ Chapter 4:2.9.3
Not Implemented--Action Taken. The Department of Defense is
installing the Composite Health Care System (CHCS) and Fort Campbell
will follow next year. Fort Knox and Wright Patterson Air Force Base
already have the system. Scott Medical Center will seek to use
technology to improve the proportion of health care delivered on an
outpatient or ambulatory basis. DOD recently sought congressional
authority to terminate the Uniformed Services University of the
Health Sciences medical school program, but the fiscal year 1995
Defense Authorization Act (P.L. 103-337) prohibits DOD from closing
the Uniformed Services University of the Health Sciences and directs
that GAO evaluate several issues concerning the University.
Action on other parts of this recommendation is expected to be
completed by 1997.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 4:2.9.4
Medical ADP Systems: Defense's Tools and Methodology for Managing
CHCS Performance Need Strengthening (GAO/AIMD-94-61, July 15, 1994).
Defense Health Care: Uniformed Services Treatment Facility Health
Care Programs (GAO/HEHS-94-174, June 2, 1994).
Defense Health Care: Challenges Facing DOD (GAO/T-HEHS-94-145, Apr.
19, 1994).
Composite Health Care Systems: Outpatient Capability Is Nearly Ready
for Worldwide Deployment (GAO/IMTEC-93-11, Dec. 15, 1992).
Medical ADP Systems: Composite Health Care System Is Not Ready to Be
Deployed (GAO/IMTEC-92-54, May 20, 1992).
DOD Medical Inventory: Reductions Can Be Made Through the Use of
Commercial Practices (GAO/NSIAD-92-58, Dec. 5, 1991).
Medical ADP Systems: Changes in Composite Health Care System's
Development Strategy Are Unwise (GAO/IMTEC-91-47, Sept. 30, 1991).
Defense's Acquisition of the Composite Health Care System
(GAO/T-IMTEC-90-04, Mar. 15, 1990).
Medical ADP Systems: Composite Health Care System Defense Faces a
Difficult Task (GAO/IMTEC-90-42, Mar. 15, 1990).
Medical ADP Systems: Composite Health Care System Operational Test
Extended (GAO/IMTEC-89-30, Apr. 10, 1989).
DOD10: GIVE DEPARTMENT OF
DEFENSE INSTALLATION
COMMANDERS MORE AUTHORITY
AND RESPONSIBILITY OVER
INSTALLATION MANAGEMENT
------------------------------------------------------- Chapter 4:2.10
By giving DOD installation commanders more authority over
installation management, DOD will be better able to manage its
resources, provide services to its employees, and move toward more
entrepreneurial management.
ACTION ITEMS
----------------------------------------------------- Chapter 4:2.10.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 4:2.10.2
Insufficient Information. Greater empowerment of installation
commanders to manage is a recommendation that on the surface appears
to have much merit. However, the report does not provide sufficient
information to indicate what additional authorities are intended to
be granted and/or to what extent those authorities might run counter
to greater centralization of management functions evident in recent
Defense Management Review initiatives, such as in the areas of
finance and accounting and printing. Nor is it clear to what extent
such empowerment could result in the transfer of funding designated
for readiness and training to other uses.
IMPLEMENTATION
----------------------------------------------------- Chapter 4:2.10.3
Partially Implemented. DOD has given this recommendation emphasis by
creating 21 subelements for it. As part of developing a cost
accounting system for installation management, the Defense Finance
and Accounting Service has issued a functional requirements document
for the selection of certain systems in the Defense Business
Operations Fund. There are, however, areas such as reviewing the
financial constraints and limitations imposed on installations where
no plan has been established to accomplish the goal.
Action on other parts of this recommendation is expected to be
completed by 1999.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 4:2.10.4
None.
DOD11: REDUCE NATIONAL
GUARD AND RESERVE COSTS
------------------------------------------------------- Chapter 4:2.11
This recommendation makes two changes in the current costs for
reservists: (1) to limit compensation of federal employees on
reserve duty to the greater of civilian or reserve compensation or to
allow the reservist to take annual leave; and (2) to limit the basic
allowance for quarters only to reservists who actually bring their
dependents on short-term duty assignments when quarters are not
provided to dependents.
ACTION ITEMS
----------------------------------------------------- Chapter 4:2.11.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 4:2.11.2
Insufficient Information. This recommendation has merit from the
standpoint of eliminating any perceived inequity between the amount
of government pay provided to federal employees and nonfederal
employees on reserve duty. It also recognizes that the existing
fiscal year impact could grow if pressures continue to build to
increasingly rely on reservists for periods of extended active duty
time. The recommended change would require a change in legislation.
However, our prior work in reserve issues does not put us in a
position to gauge the importance of current legislative provisions to
recruiting or to maintaining needed reserve manning levels, or
likewise to estimate the likely effect of any legislative change.
IMPLEMENTATION
----------------------------------------------------- Chapter 4:2.11.3
Not Implemented--Action Taken. DOD believes that two laws, 5 U.S.C.
section 6323 and 37 U.S.C. section 403, must be amended to implement
this recommendation. Draft legislation has been prepared that would
change 5 U.S.C. section 6323, which involves reservist pay. Under
this proposal, military basic pay for federal employee reservists
would be paid only to the extent that it exceeds civilian basic pay
for periods of military leave. It would not affect reservists who
use annual leave for the reserve period. Draft legislation also has
been prepared that would eliminate payment of the basic allowance for
quarters to reservists who are serving on active duty for 15 days or
less if they are provided quarters by the government and are not
accompanied by their dependents.
Completion of this effort is not expected before 1996.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 4:2.11.4
None.
DOD12: STREAMLINE AND
REORGANIZE THE U.S. ARMY
CORPS OF ENGINEERS
------------------------------------------------------- Chapter 4:2.12
NPR recommends implementing a 1992 reorganization proposal that would
reduce the number of division offices from 11 to 6 and would allow
the Corps to work with OMB and other agencies to make maximum use of
Corps' engineering and technical capabilities.
ACTION ITEMS
----------------------------------------------------- Chapter 4:2.12.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 4:2.12.2
Insufficient Information. The November 1992 Corps of Engineers
Reorganization Plan which would have reduced the number of Corps of
Engineers' division offices was withdrawn by the President in
November 1993. The Secretary of the Army through the Acting
Assistant Secretary of the Army for Civil Works (ASA-CW) is now
developing a Corps staff "restructuring" plan. Since this plan is
not yet complete, we are not in a position to assess its merits.
IMPLEMENTATION
----------------------------------------------------- Chapter 4:2.12.3
Not Implemented--Action Taken. Preliminary work on the new
restructuring plan to define the proper roles and responsibilities
for each level and office within the Corps was started in June. The
Secretary of the Army approved the redefined roles and
responsibilities on September 29, 1994. Currently, three task forces
are working on determining what personnel resources are needed at
each level for the new roles. Corps staff said no offices will be
closed in the near term.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 4:2.12.4
None.
DEPARTMENT OF EDUCATION (ED)
============================================================ Chapter 5
OVERALL SUMMARY
---------------------------------------------------------- Chapter 5:1
The majority of the recommendations have not been implemented,
although action has been initiated to effect the needed changes for
all but one of the recommendations. Partly in response to a number
of recommendations, the Department issued revised regulations,
changed some of its policies and operating procedures, or took other
actions to address some of the recommendations, but the effect of
these actions has yet to be demonstrated. For other recommendations,
the legislation needed to implement the suggested changes was not
enacted in the 103rd Congress. Neither the Department of Education
nor the Department of Defense has taken action to consolidate
National Security Act Programs (ED04).
The actions taken to date should contribute to minimizing the
Department of Education's long-standing managerial problems as it
solidifies its leadership in improving the nation's education system.
But the Department should continue its efforts, in some instances
with Congress, to act on the recommendations and bring about the
changes needed to eliminate its problems.
GAO CONTACT
-------------------------------------------------------- Chapter 5:1.1
Joseph J. Eglin, Jr., Assistant Director, Education and Employment
Issues, Health, Education, and Human Services Division, (202)
512-7009.
RECOMMENDATION INFORMATION
---------------------------------------------------------- Chapter 5:2
ED01: REDESIGN CHAPTER 1 OF
ELEMENTARY AND SECONDARY
EDUCATION ACT
-------------------------------------------------------- Chapter 5:2.1
Recommendations focus education funds on the neediest students and
simplify requirements on schools receiving federal education aid.
Existing funds are redirected.
ACTION ITEMS
------------------------------------------------------ Chapter 5:2.1.1
1. Rigidity in the Chapter 1 program should be replaced by
accountability for results.
2. The disincentives created by the use of standardized testing
should be reversed.
3. Chapter 1 funding should be concentrated on schools serving large
proportions of low-income students.
4. Schools and school districts 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.
GAO COMMENTS
------------------------------------------------------ Chapter 5:2.1.2
Agree. We have recommended better targeting of Chapter 1 funds to
counties with the most needy students. Simplified requirements for
schools receiving federal aid could enable categorical programs to
better fit into school reform efforts, according to our report on
systemwide education reform.
IMPLEMENTATION
------------------------------------------------------ Chapter 5:2.1.3
Partially Implemented. October 1994 legislation reauthorizing the
Elementary and Secondary Education Act of 1965 (1) reduces rigidity
in the Chapter 1 program by expanding the schoolwide projects'
provision and providing regulatory flexibility; (2) reduces the
emphasis placed on standardized testing by replacing current testing
requirements with state-level, multiple measures of student
performance aligned with state performance standards; (3) includes
measures to better target Chapter 1 funds on schools serving large
proportions of low-income students; and (4) permits schools and
school districts to use some Chapter 1 funds to identify needed
social services and develop cooperative arrangements with other
agencies that can provide those services.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 5:2.1.4
Regulatory Flexibility in Schools: What Happens When Schools Are
Allowed to Change the Rules? (GAO/HEHS-94-102, Apr. 29, 1994).
Systemwide Education Reform: Federal Leadership Could Facilitate
District-Level Efforts (GAO/HRD-93-97, Apr. 30, 1993).
Chapter 1 Accountability: Greater Focus on Program Goals Needed
(GAO/HRD-93-69, Mar. 1993).
Remedial Education: Modifying Chapter 1 Formula Would Target More
Funds to Those Most in Need (GAO/HRD-92-16, July 28, 1992).
ED02: REDUCE THE NUMBER OF
PROGRAMS THE DEPARTMENT OF
EDUCATION ADMINISTERS
-------------------------------------------------------- Chapter 5:2.2
Eliminate or consolidate more than 40 existing education grant
programs and free up funds for use in other educational programs.
ACTION ITEMS
------------------------------------------------------ Chapter 5:2.2.1
1. Legislation should be enacted to eliminate 34 Department of
Education programs, which are duplicative of other programs, have
already achieved their purpose, or are more appropriately funded
through nonfederal resources.
2. Legislation should be enacted 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.
GAO COMMENTS
------------------------------------------------------ Chapter 5:2.2.2
Generally Agree. We generally support reducing the administrative
burden at federal and local levels. Although not speaking directly
to education program consolidation, we have suggested that Congress
consider simplifying current approaches to assist dislocated workers
to one that assists workers regardless of the reason for their
dislocation. We have also suggested making existing federal
categorical education programs more conducive to systemwide reform
while meeting the needs of at-risk students. Reducing the number of
programs may be one of many strategies used to do this.
IMPLEMENTATION
------------------------------------------------------ Chapter 5:2.2.3
Partially Implemented. Public Law 103-382, the Improving America's
Schools Act of 1994, signed into law on October 20, 1994, eliminated
some programs and consolidated the Drug Free Schools and Communities
Act and Safe School Act programs.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 5:2.2.4
Multiple Employment Training Programs: Overlap Among Programs Raises
Questions About Efficiency (GAO/HEHS-94-193, July 11, 1994).
Multiple Employment Training Programs: Conflicting Requirements
Underscore Need For Change (GAO/HEHS-94-120, Mar. 10, 1994).
Multiple Employment Training Programs: Major Overhaul Is Needed
(GAO/T-HEHS-94-109, Mar. 3, 1994).
Multiple Employment Training Programs: Most Federal Agencies Do Not
Know If Their Programs Are Working Effectively (GAO/HEHS-94-88, Mar.
2, 1994).
Multiple Employment Training Programs: Overlapping Programs Can Add
Unnecessary Administrative Costs (GAO/HEHS-94-80, Jan. 28, 1994).
Multiple Employment Training Programs: Conflicting Requirements
Hamper Delivery of Services (GAO/HEHS-94-78, Jan. 28, 1994).
Dislocated Workers: Trade Adjustment Assistance Program Flawed
(GAO/T-HRD-94-4, Oct. 19, 1993).
Multiple Employment Programs: National Employment Strategy Needed
(GAO/T-HRD-93-27, June 18, 1993).
Multiple Employment Programs (GAO/HRD-93-26R, June 15, 1993).
Multiple Employment Programs (GAO/HRD-93-39R, July 24, 1992).
ED03: CONSOLIDATE THE
EISENHOWER MATH AND SCIENCE
EDUCATION PROGRAM WITH
CHAPTER 2
-------------------------------------------------------- Chapter 5:2.3
NPR proposes combining this teacher training program, which is
largely consumed with short-term training, with other ED programs to
create a new program with a more coherent national focus on teacher
training and professional development.
ACTION ITEM
------------------------------------------------------ Chapter 5:2.3.1
In the 1993 reauthorization of the Elementary and Secondary Education
Act (ESEA), the Eisenhower Math and Science Education State Grant
Program should be combined with the state and local program under
Chapter 2 of ESEA.
GAO COMMENTS
------------------------------------------------------ Chapter 5:2.3.2
Generally Agree. We generally agree with the thrust of this
recommendation. In 1992, we found that short-term teacher training
alone is unlikely to produce major improvements in student academic
achievement. However, we have not recommended the specific steps
described in this recommendation.
IMPLEMENTATION
------------------------------------------------------ Chapter 5:2.3.3
Not Implemented--Action Taken. The Improving America's Schools Act,
signed October 20, 1994, combines funds to create a new Eisenhower
Program that addresses all disciplines, not just math and science.
However, authority for a program similar to Chapter 2 was also
included in the law under title 6.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 5:2.3.4
Department of Education: Eisenhower Math and Science State Grant
Program (GAO/HRD-93-25, Nov. 10, 1992).
ED04: CONSOLIDATE NATIONAL
SECURITY EDUCATION ACT
(NSEA) PROGRAMS
-------------------------------------------------------- Chapter 5:2.4
The NSEA trust fund, administered by the Department of Defense,
should be consolidated with the Center for International Education in
ED to strengthen foreign language study and eliminate duplication of
effort.
ACTION ITEM
------------------------------------------------------ Chapter 5:2.4.1
The Departments of Education and Defense should consider a
legislative proposal to move administration of the Boren program to
the U.S. Department of Education, coordinating it with the
Fulbright-Hays and Title VI programs.
GAO COMMENTS
------------------------------------------------------ Chapter 5:2.4.2
Insufficient Information. We have insufficient information to assess
this recommendation.
IMPLEMENTATION
------------------------------------------------------ Chapter 5:2.4.3
Not Implemented--No Action Taken. Neither the Department of Defense
nor the Department of Education has proposed legislation to address
this recommendation.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 5:2.4.4
None.
ED05: STREAMLINE AND
IMPROVE THE DEPARTMENT OF
EDUCATION'S GRANTS PROCESS
-------------------------------------------------------- Chapter 5:2.5
Statutory restrictions on the department's rulemaking process should
be removed, flexibility added to certain procedures, and unnecessary
requirements eliminated to shorten the grant award process.
ACTION ITEMS
------------------------------------------------------ Chapter 5:2.5.1
1. Legislation should be enacted to repeal Section 431 of the
General Education Provisions Act.
2. To shorten the grant application review process, the Department
of Education should change the policy for receipt of applications to
require that applications be received by the closing date (not
postmarked by the closing date), while extending the time available
for applicants to prepare application packages.
3. The Department of Education should consider ways to reduce the
unnecessary paperwork in applying for funding under some
discretionary grant competitions.
4. The Department of Education should give program offices the
flexibility to eliminate the peer review panel process in cases where
it adds little benefit to the grant award process.
5. Where panel reviews continue to be used, the Department of
Education should immediately contract out panel review logistics to a
single contractor which would perform the function for all program
offices, including photocopying of applications, booking hotel
facilities, and other clerical functions.
6. The Department of Education 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.
7. The Department of Education should reduce the need for
negotiation with grant recipients by publishing in the Federal
Register program announcement the maximum amount of grant awards and
return to the applicant, as disqualified from competition, any
proposal which exceeds the maximum amount.
8. The Department of Education should initiate immediate steps to
further standardize the negotiation process through staff training.
9. The Department of Education should notify applicants of the
status of their applications and funding as early as possible to help
applicants plan and, if necessary, seek alternative funding.
10. The Department of Education should improve training for program
and grants specialists so they can better serve their customers.
11. Grants and Contracts Service (GCS) staff members should rotate
to program offices and program office staff members should rotate to
the GCS on detail periodically to remain in touch with, and gain a
better understanding of, the work of the other part of the
department.
12. The Department of Education should eliminate the continuation
application process for budget years within the project period.
13. The Department of Education should develop criteria for
evaluating the quality of a grantee's final program progress report.
14. The Department of Education should revise the Education
Department General Administrative Regulations (EDGAR) to allow the
Secretary of Education to refuse future funding under any department
program, excluding student aid, to a grantee that has failed to
submit a final program progress report or has submitted a report of
unacceptable quality.
15. The Department of Education should use identified risk factors
to establish priorities in monitoring of grantees.
16. The Department of Education should continue the efforts of the
Monitoring and Performance Measurement Team to improve monitoring and
develop performance measures to: (1) identify successful programs
and practices; (2) aid in the dissemination of information to
interested parties; (3) provide technical assistance to grantees,
potential grantees, and other interested organizations; (4) assist
grantees with substantive programmatic issues; and (5) ensure
compliance with grant terms and conditions.
GAO COMMENTS
------------------------------------------------------ Chapter 5:2.5.2
Agree. We have strongly advocated improving Education's grants
process. However, we have not made this specific recommendation.
IMPLEMENTATION
------------------------------------------------------ Chapter 5:2.5.3
Not Implemented--Action Taken. The Department of Education reports
several actions under way to streamline and improve its grants
process. Among these actions are developing regulations to change
the policy for receipt of grant applications and establishing a
quality improvement team to consider ways to reduce unnecessary
paperwork in applying for grants and improve program office
flexibility.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 5:2.5.4
Education Grants Management: Management Actions Initiated to Correct
Material Weaknesses (GAO/HRD-91-72, Feb. 26, 1991).
Desegregation Activities: Administration of Education Grant Funds at
the Cleveland School District (GAO/HRD-89-83, Aug. 29, 1989).
ED06: PROVIDE INCENTIVES
FOR THE DEPARTMENT OF
EDUCATION'S DEBT COLLECTION
SERVICE
-------------------------------------------------------- Chapter 5:2.6
This recommendation would allow Education to use a portion of
revenues collected from defaulted student loans to pay for
collections costs, thereby providing an incentive for increased
collections.
ACTION ITEM
------------------------------------------------------ Chapter 5:2.6.1
The Department of Education's Debt Collection Service should develop
a management strategy and evaluation plan, to be adopted by the end
of fiscal year 1994, which does the following:
-- maximizes collections, consistent with broader student loan
administration policies;
-- identifies ways in which the Debt Collection Service can use a
larger proportion of the revenue it collects to fund more of the
costs of its operations;
-- tests the effectiveness of different revenue-enhancing measures;
-- devises a gainsharing program within the Debt Collection
Service;
-- identifies ways in which personnel, contracting, budget, and
logistical policies can be adapted to enhance the effectiveness
of the Debt Collection Service; and
-- to ensure that lower-income students are not adversely affected
by the increased debt collection activity, ensures that
repayments for those least able to repay are based on income,
similar to the income contingent provisions of the Federal
Direct Student Loan Program.
GAO COMMENTS
------------------------------------------------------ Chapter 5:2.6.2
Agree. We agree and have proposed that federal agencies keep a
portion of their increased collections to be used to improve debt
collection systems and practices.
IMPLEMENTATION
------------------------------------------------------ Chapter 5:2.6.3
Not Implemented--Action Taken. Congress did not act on the
Government Downsizing, Performance and Accountability Act of 1994 (S.
1843, sec. 1107) to improve federal debt collection. The Department
of Education is developing the strategy and evaluation plans for
expanding and enhancing its debt collection activities.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 5:2.6.4
Guaranteed Student Loans: Legislative and Regulatory Changes Needed
to Reduce Default Costs (GAO/HRD-87-76, Sept. 30, 1987).
Debt Collection: Billions Are Owed While Collection and Accounting
Problems Are Unresolved (GAO/AFMD-86-39, May 23, 1986).
ED07: SIMPLIFY AND
STRENGTHEN INSTITUTIONAL
ELIGIBILITY AND
CERTIFICATION FOR
PARTICIPATION IN FEDERAL
STUDENT AID
-------------------------------------------------------- Chapter 5:2.7
NPR recommends developing ways of measuring default indicators,
creating profiles of high-risk institutions, and removing eligibility
of institutions to participate in federal financial aid programs once
the schools have become ineligible to receive federal student loan
funds.
ACTION ITEMS
------------------------------------------------------ Chapter 5:2.7.1
1. Legislation should be enacted to allow the Department to
implement changes in the measures of school quality. The following
changes should be considered and used if appropriate:
-- Development of additional default indicators, including a
default rate based on proportion of dollars in default and the
percentage of students receiving loans.
-- Creation of profiles of high-risk institutions that are
potentially insolvent or likely to misuse student aid funds,
which would then be used to concentrate oversight resources on
institutions that pose the greatest risk.
-- Establishment of outcome measures to determine performance of
participating schools, regardless of course length. These
measures would include program completion rates, employment and
earnings following program completion, and occupational skills
testing to determine if students had acquired the knowledge
required for the occupation for which the training was
undertaken. Unsatisfactory performance would be grounds for
removing an institution's eligibility to participate in the
program.
-- Withholding of a certain percentage of funds from the school
until a student has successfully completed the program of
instruction and been employed for 90 days. A variation on this
theme would be to provide a bonus to the school for successful
training, placement, and retention of students.
2. The Department should move aggressively to implement those
provisions of the Higher Education Act that became effective July 1,
1994, which greatly strengthen the program integrity requirements.
3. Section 435(m)(1)(B) of the Higher Education Act of 1965 should
be amended to avoid the effect of the interpretation of the existing
statute made in recent court decisions. The amendment should remove
allegations of improper servicing and collection of loans as a basis
for contesting the accuracy of cohort default rates.
4. Legislation should be enacted to provide that once a school has
been determined to be ineligible for participation in the student
loan program, it would also become ineligible for all federal student
aid programs, unless it can be demonstrated that the default rates
are high because the school serves a historically disadvantaged
population and the school shows a continuing good-faith effort to
reduce the default rate.
5. The Department should review the accuracy of, then expand, the
current institutional Quality Assurance Program to provide regulatory
relief to more institutions with reliable performance.
GAO COMMENTS
------------------------------------------------------ Chapter 5:2.7.2
Agree. We agree and have reported on problems with Education's
school eligibility and certification process, and we recommended
changes and alternatives for improvement. The NPR recommendations
are consistent with our position.
IMPLEMENTATION
------------------------------------------------------ Chapter 5:2.7.3
Partially Implemented. The Department of Education has developed a
number of changes through negotiated rulemaking and new "in house"
procedures to measure school quality. But additional actions, such
as implementing performance measures, are needed. The Department
disagrees with the recommendation that Congress should remove a
school's eligibility for participation in all federal student aid
programs once a school is determined ineligible for participation in
student loan programs.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 5:2.7.4
Guaranteed Student Loans (GAO/HR-93-2, Dec. 1992).
ED08: CREATE A SINGLE POINT
OF CONTACT FOR PROGRAM AND
GRANT INFORMATION
-------------------------------------------------------- Chapter 5:2.8
ED should create an electronic system that can be used by students,
parents, researchers, and administrators to learn about department
programs, funding opportunities, best practices, and other
information.
ACTION ITEMS
------------------------------------------------------ Chapter 5:2.8.1
1. The Department of Education should create an on-line database
with multiple modem access capability which will allow potential
applicants to obtain information on available grants, fellowships,
and student aid through a single contact.
2. The Department of Education should establish a single phone
number that anyone desiring information or forms could call to
receive assistance.
GAO COMMENTS
------------------------------------------------------ Chapter 5:2.8.2
Insufficient Information. We have insufficient information to assess
this recommendation, because we have done no work in this area.
IMPLEMENTATION
------------------------------------------------------ Chapter 5:2.8.3
Not Implemented--Action Taken. The Department of Education has
developed a proposal for a one-stop shopping system that would
provide a single point of contact for program and grant information.
This proposal, called "Gateway to ED," features a single 800 number
(1-800-USA-LEARN) that would bring callers together with information
specialists who can also make referrals to area experts. The
proposal also features an "Ask a Question" service to allow people to
send questions, via the Internet, to a single E-mail address.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 5:2.8.4
None.
ED09: IMPROVE EMPLOYEE
DEVELOPMENT OPPORTUNITIES IN
DEPARTMENT OF EDUCATION
-------------------------------------------------------- Chapter 5:2.9
Education should create a full spectrum of activities that can
contribute to career development, including conducting a
departmentwide assessment of training and development needs.
ACTION ITEMS
------------------------------------------------------ Chapter 5:2.9.1
1. The Department of Education should set employee development as a
priority.
2. The department should conduct an assessment of the training and
development needs for each Principal Operating Component and Regional
Office, and for each individual employee, so that future planning and
budgeting can be well-grounded in data.
3. Managers throughout the Department, including Regional Offices,
should be held accountable for investing in and supporting employee
development activities by including this as an element in each
manager's performance plan.
4. The Horace Mann Learning Center (HMLC) should develop generic
curriculum useful to all employees to support new directions
indicated by the National Education Goals, such as performance
measurement; and HMLC should develop alternative means of delivering
learning services to employees, e.g., the use of distance learning
and desktop personal computers.
5. Principal Operating Components should be encouraged to make use
of their own internal staff expertise to provide training events for
others in the department.
6. Employees should be encouraged to develop and implement
individual development plans that indicate the skill and knowledge
areas needing attention and the training and development activities
that will address those areas.
7. The department should make full use of free training
opportunities available through other government agencies and
nonfederal organizations.
GAO COMMENTS
------------------------------------------------------ Chapter 5:2.9.2
Agree. We strongly recommend these types of actions, which are
necessary to successfully develop and upgrade the serious skill
weaknesses of Education staff in such areas as accounting, finance,
analysis, writing, and management. This would also function as part
of the implementation of our recommendation for a strategic vision
and strategic plans for human resources management.
IMPLEMENTATION
------------------------------------------------------ Chapter 5:2.9.3
Not Implemented--Action Taken. The Department of Education has
several internal implementation activities under way. In the
Department's strategic plan, employee training and development are
designated as a high priority. The Department has established a
training and development team to reinvent the current training
program, conducted a customer needs survey, requested that its
managers invest additional funds to support employee training and
development, and initiated a number of other related activities.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 5:2.9.4
Department of Education: Long-Standing Management Problems Hamper
Reforms (GAO/HRD-93-47, May 28, 1993).
Transition Series: Education Issues (GAO/OCG-93-18TR, Dec. 1992).
ED10: ELIMINATE THE
GRANTBACK STATUTORY
PROVISION OF THE GENERAL
EDUCATION PROVISIONS ACT
------------------------------------------------------- Chapter 5:2.10
NPR recommends repealing this provision, which permits the Department
to return to a grantee a percentage of funds recovered from the
grantee as a result of an audit.
ACTION ITEMS
----------------------------------------------------- Chapter 5:2.10.1
1. The grantback provision in the General Education Provisions Act
(Part E, Section 459) should be repealed to eliminate the
disincentive for grantees to comply with the conditions of a grant or
cooperative agreement.
2. The Department should then notify all affected grant recipients
of the change in the law.
GAO COMMENTS
----------------------------------------------------- Chapter 5:2.10.2
Insufficient Information. We have insufficient information to assess
this recommendation.
IMPLEMENTATION
----------------------------------------------------- Chapter 5:2.10.3
Not Implemented--No Action Taken. Legislation was introduced that
would have eliminated the grantback provision (H.R. 3130), but the
legislation as enacted (P.L. 103-382) did not contain this
provision. As a result, agency officials do not expect the grantback
provision to be repealed in the 103rd Congress.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 5:2.10.4
None.
ED11: BUILD A PROFESSIONAL,
MISSION-DRIVEN STRUCTURE FOR
RESEARCH
------------------------------------------------------- Chapter 5:2.11
NPR recommends establishing a research advisory board, consolidating
and targeting research and development efforts, and establishing an
office to translate research findings into education reform
assistance.
ACTION ITEMS
----------------------------------------------------- Chapter 5:2.11.1
1. The upcoming reauthorization of Office of Educational Research
and Improvement should include several of the central recommendations
from the National Academy of Sciences report. These include:
-- 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.
-- 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.
-- 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 research
and development (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 research and
development that includes field-initiated efforts,
institutionally based R&D, and special projects. These
institutes should be charged with conducting high-quality
research and development in support of the national education
goals.
-- A Reform Assistance Office should be established to coordinate
the integration and translation of research into reform
assistance efforts.
-- OERI should report research findings directly to streamline its
work and minimize opportunities for political pressure.
2. The Secretary of Education should request that the National
Academy of Sciences extend its review to the rest of the department,
looking at the other arrangements for research, especially National
Institute on Drug and Rehabilitation Research, the research aspects
of Office of Policy and Planning, and the small centers within Office
of Vocational and Adult Education.
GAO COMMENTS
----------------------------------------------------- Chapter 5:2.11.2
Generally Agree. We have no work that directly supports this
recommendation. However, this recommendation is consistent with our
recommendations for implementing departmentwide strategic management.
IMPLEMENTATION
----------------------------------------------------- Chapter 5:2.11.3
Partially Implemented. Public Law 103-227 was signed on March 31,
1994 creating a National Educational Research Policy and Priorities
Board, an Office of Reform Assistance and Dissemination, and a
National Research Institute. The Department is currently
restructuring its Office of Educational Research and Improvement to
meet the requirements of the law.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 5:2.11.4
Department of Education: Long-Standing Management Problems Hamper
Reforms (GAO/HRD-93-47, May 28, 1993).
ED12: DEVELOP A STRATEGY
FOR TECHNICAL ASSISTANCE AND
INFORMATION DISSEMINATION
------------------------------------------------------- Chapter 5:2.12
Education should develop a strategy for its $290 million technical
assistance efforts designed to promote the National Goals 2000
themes.
ACTION ITEMS
----------------------------------------------------- Chapter 5:2.12.1
1. The Department of Education should develop a strategy for
technical assistance and information dissemination to promote the
Goals 2000, themes of equity, access, and achievement.
2. The Department of Education should create multi-purpose technical
assistance centers that serve several programs and focus on a variety
of issues, in contrast to those related to specific programs.
3. The Department of Education should foster development of a
national electronic network that allows states, local agencies,
teachers, and administrators to access research and exemplary
practice information easily and share ideas and feedback among
themselves through "electronic bulletin boards."
4. The Department of Education should establish the laboratories as
institutions directed toward assisting state and local education
agencies as they plan and implement systemic reform.
GAO COMMENTS
----------------------------------------------------- Chapter 5:2.12.2
Agree. We support Education's efforts to improve and focus its
technical assistance and information dissemination. We found that
such actions could better support systemwide education reform efforts
in school districts. Development of this type of strategy would also
be consistent with our recommendations for implementing
departmentwide strategic management.
IMPLEMENTATION
----------------------------------------------------- Chapter 5:2.12.3
Partially Implemented. The Department is developing a strategy for
technical assistance and information dissemination through the
creation of Comprehensive Regional Technical Assistance Centers and a
Technology-Based Technical Assistance Service. These are included in
legislation enacted in October 1994 reauthorizing the Elementary and
Secondary Education Act of 1965. The Regional Technical Assistance
Centers are intended to assist state and local education agencies
plan and implement systemic reform. The technical assistance service
is to include an electronic network that allows institutions and
individuals to access research and other information through
electronic bulletin boards.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 5:2.12.4
Department of Education: Long-Standing Management Problems Hamper
Reforms (GAO/HRD-93-47, May 28, 1993).
Systemwide Education Reform: Federal Leadership Could Facilitate
District-Level Efforts (GAO/HRD-93-97, Apr. 30, 1993).
DEPARTMENT OF ENERGY (DOE)
============================================================ Chapter 6
OVERALL SUMMARY
---------------------------------------------------------- Chapter 6:1
Actions--in some cases, bold and broadly sweeping actions--have been
proposed and are being taken to implement all eight NPR
recommendations affecting DOE. However, none of these
recommendations has yet been fully implemented, and success in
achieving the related savings and other anticipated benefits will
require time and a continuing commitment of energy and other
resources from DOE's leadership. In addition, success in
implementing some of the recommendations will depend on actions
outside DOE's control.
The actions that DOE has taken to implement the NPR's recommendations
for improving the Department's contract management (DOE01 and DOE03)
are particularly significant. As we and others have noted, DOE has
failed in the past to properly manage the contractors that execute
contracts for the Department valued at over $15 billion per year.
Since June 1993, when the Secretary of Energy established a Contract
Reform Team, DOE has been evaluating its contracting practices,
proposing improvements in these practices, and starting to implement
the proposed improvements, which directly support NPR's
recommendations. In managing its environmental restoration and waste
management contracts, DOE has taken steps to reduce costs, strengthen
oversight, and ensure quality and safety. Likewise, in managing
contracts at its laboratories and weapons production facilities, it
has developed and is incorporating criteria and measures of
performance and has taken steps to control costs. Overall, these
contracting reforms are among the most sweeping in DOE's history;
however, staffing limitations and weaknesses in DOE's information
system could delay or curtail their implementation.
DOE has partially implemented the recommendation that it incorporate
land-use planning in cleaning up its nuclear facilities. It has
drafted guidance and begun developing land-use plans at several
sites, but it cannot adjust the level of cleanup at its sites to
correspond with planned future uses until Congress has enacted
proposed amendments to the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (CERCLA) or the Environmental
Protection Agency (EPA) has approved the adjustments (DOE02).
Similarly, DOE has taken action and legislation has been introduced
to implement several other NPR recommendations--to increase federal
income by refinancing the Bonneville Power Administration's debt
(DOE04), to strengthen the Federal Energy Management Program (DOE05),
to redirect the DOE laboratories to post-Cold War priorities (DOE06),
to allow the private sector to cogenerate power at the DOE
laboratories (DOE07), and to sell the Alaska Power Administration
(DOE08)--but action on the pending legislation is required to fully
implement these recommendations. Previous legislative proposals to
redefine the laboratories' missions and to sell the Alaska Power
Administration have encountered opposition and have not been enacted.
GAO CONTACT
-------------------------------------------------------- Chapter 6:1.1
Victor S. Rezendes, Director, Energy and Science Issues, Resources,
Community, and Economic Development Division, (202) 512-3841.
RECOMMENDATION INFORMATION
---------------------------------------------------------- Chapter 6:2
DOE01: IMPROVE
ENVIRONMENTAL CONTRACT
MANAGEMENT
-------------------------------------------------------- Chapter 6:2.1
NPR proposes improvements in DOE's environmental cleanup contracts to
achieve efficiency.
ACTION ITEMS
------------------------------------------------------ Chapter 6:2.1.1
1. DOE should introduce competition and innovation in contracting
for environmental cleanup services.
2. DOE should enhance the management of its waste management and
environmental restoration contracts by providing qualified on-site
DOE personnel to assume greater environmental project management and
project design responsibilities.
3. DOE should adopt measures to reduce costs.
4. DOE should build tangible, outcome-oriented performance measures
into its environmental restoration contracts to ensure objective,
measurable assessments of contractor performance.
5. For the award of such environmental restoration contracts and the
disbursement of fees, DOE should put more emphasis upon the
contractors' record for ensuring worker safety and health.
6. To control costs, DOE's waste management and the environmental
restoration programs should build a reliable methodology for
estimating costs that is applied uniformly at all Environmental
Restoration and Waste Management (EM) sites.
7. DOE should build capable cost estimating and cost engineering
teams at each DOE site, who will be able to proficiently determine
the contractors' scope of work and review cost estimates.
8. For those environmental services that are paid for on a
cost-plus-award or a cost-plus-fixed fee award basis, DOE should
perform systematic and timely audits on costs incurred by every
contractor to verify that costs charged are legitimate and
reimbursable.
9. DOE should reevaluate the merits of requiring environmental
restoration contractors to hire as many of the former management and
operating contractors' staff, at current salary and benefit levels,
as they can effectively employ.
10. DOE should examine options to increase the ratio of federal
workers to contract employees to improve management and oversight and
control costs.
GAO COMMENTS
------------------------------------------------------ Chapter 6:2.1.2
Agree. We support improvements in contract management. We have
repeatedly criticized DOE for failing to properly manage the vast
network of contractors that carry out its missions; contracts for
this work amount to over $15 billion a year. Contract management
problems are particularly evident in the EM program, which was
created in 1989 and has grown to encompass almost one-third of the
Department's budget. Although DOE has implemented several strategies
to increase its control over these cleanup contractors and adopted
new contracting strategies, numerous problems remain.
IMPLEMENTATION
------------------------------------------------------ Chapter 6:2.1.3
Not Implemented--Action Taken. DOE has begun implementing the
changes recommended by the DOE Contract Reform Team in its February
1994 report entitled Making Contracting Work Better and Cost Less.
For example, after extensive competition, DOE awarded a new contract
for managing and operating the Idaho National Engineering Laboratory,
which incorporates performance-based features and consolidates the
current five contracts into one pact (action items 1 and 4). In July
1994, DOE also issued a solicitation package for the Rocky Flats
management and operating contract that included various innovative
features. Meanwhile, DOE is continuing to develop performance
criteria and measures for ensuring that contractors consider workers'
safety and health (action item 5) and is working to incorporate
contract reform provisions into existing contracts (action item 3).
For its environmental restoration contracts, DOE is reviewing the
roles and responsibilities of headquarters and field staff and has
prepared a draft plan that looks at the feasibility of replacing
contract employees with federal employees (action items 2 and 10).
DOE is also working to increase competition for these contracts and
has budgeted additional fiscal year 1995 funds for auditing cost-plus
type contracts (action item 8). At the contractor level, DOE is
taking steps to ensure that environmental contractors hire the most
qualified employees (action item 9). To control costs, DOE has
issued a policy requiring consideration of innovative contract
arrangements, including measures to reduce costs (action item 3),
developed a standardized cost-quality handbook and performance
objectives, and allocated additional slots for cost-estimating and
engineering teams at the field offices (action items 6 and 7).
Although implementation is proceeding on all of the action items,
full implementation, for the most part, is not expected until late
1995.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 6:2.1.4
Financial Management: Energy's Material Financial Management
Weaknesses Require Corrective Action (GAO/AIMD-93-29, Sept. 30,
1993).
Department of Energy: Management Problems Require a Long-Term
Commitment to Change (GAO/RCED-93-72, Aug. 31, 1993).
Department of Energy Contract Management (GAO/HR-93-9, Dec. 1992).
Department of Energy: Better Information Resources Management Needed
to Accomplish Mission (GAO/IMTEC-92-53, Sept. 29, 1992).
DOE Management: Impediments to Environmental Restoration Management
Contracting (GAO/RCED-92-244, Aug. 14, 1992).
Nuclear Weapons Complex: Improving DOE's Management of the
Environmental Cleanup (GAO/T-RCED-92-43, Mar. 30, 1992).
Energy Management: Tightening Fee Process and Contractor
Accountability Will Challenge DOE (GAO/RCED-92-9, Oct. 30, 1991).
DOE02: INCORPORATE LAND USE
PLANNING IN CLEANUP
-------------------------------------------------------- Chapter 6:2.2
NPR recommends that DOE incorporate land-use planning into the
nuclear facilities cleanup process.
ACTION ITEMS
------------------------------------------------------ Chapter 6:2.2.1
1. The Comprehensive Environmental Response, Compensation, and
Liability Act of 1980 (CERCLA) should be amended to provide more
explicit encouragement of and direction for a cleanup process that
incorporates early future use planning (i.e., the identification of a
reasonable set of future land and facility use assumptions based on a
number of criteria including current and expected future site use).
2. DOE, federal and state regulators, and other stakeholders should
work together to address land-use planning at DOE sites while CERCLA
is being reauthorized.
3. The cleanup of contaminated land should achieve specific
standards based upon the future intended use of the site.
GAO COMMENTS
------------------------------------------------------ Chapter 6:2.2.2
Generally Agree. We agree with the general direction of the NPR's
recommendation to conduct land-use planning for DOE's facilities and
to relate the level of cleanup to expected future uses of the land.
According to NPR, such an approach can help clarify cleanup
objectives and improve exposure and risk assessments, resulting in
better-informed selections of cleanup remedies. We have also
emphasized that the Department should acknowledge that some areas of
the weapons complex may be irreversibly contaminated and may thus
require long-term institutional control. In our August 1994 report,
we noted that if Congress agrees with DOE's and EPA's plans to
utilize land-use planning, Congress could consider amending the
Comprehensive Environmental Response, Compensation, and Liability Act
of 1980 (CERCLA) to provide more specific direction about
incorporating future land uses when determining cleanup levels and
selecting remedial actions. We also recommended that the
Administrator, EPA, provide more detailed guidance for the 5-year
reviews required by CERCLA for sites not returned to unrestricted
use, and communicate this guidance to DOE. We recommended that the
guidance (1) specify that such reviews address whether land-use
patterns are changing or likely to change in the near future and (2)
discuss responsibilities for maintaining land-use restrictions.
IMPLEMENTATION
------------------------------------------------------ Chapter 6:2.2.3
Partially Implemented. Legislation (H.R. 3800 and S. 1834) to
amend CERCLA was introduced but never enacted by the 103rd Congress.
Supported by the administration, this legislation would have
specifically authorizied the consideration of land use in cleanups
and the use of community working groups to recommend future land uses
(action items 1 and 2). EPA is seeking congressional direction and
clarification on how it could consider land use in selecting remedies
and setting cleanup levels. Meanwhile, DOE has decided to develop
land-use plans as part of its cleanup efforts. The Assistant
Secretary for Environmental Management has set a goal of establishing
future use recommendations for DOE's sites by the end of 1995. In
January 1994, DOE issued final draft guidance for identifying future
land uses. One DOE site has completed a future land-use report, and
several other sites are beginning to work with citizens and other
stakeholders to develop land-use plans (action item 2). However, DOE
cannot adjust its level of cleanup without EPA's approval or
legislative clarification (action item 3).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 6:2.2.4
Nuclear Cleanup: Completion of Standards and Effectiveness of Land
Use Planning Are Uncertain (GAO/RCED-94-144, Aug. 26, 1994).
Nuclear Weapons Complex: Improving DOE's Management of the
Environmental Cleanup (GAO/T-RCED-92-43, Mar. 30, 1992).
Nuclear Weapons Complex: Major Safety, Environmental, and
Reconfiguration Issues Facing DOE (GAO/T-RCED-92-31, Feb. 25, 1992).
Correcting Environmental Problems Facing the Nuclear Weapons Complex
(GAO/T-RCED-90-85, May 17, 1990).
DOE03: MAKE FIELD FACILITY
CONTRACTS OUTCOME-ORIENTED
-------------------------------------------------------- Chapter 6:2.3
This recommendation would modify the current DOE contract process at
field facilities to make the contracts more outcome-oriented to
improve efficiency and contractor performance.
ACTION ITEMS
------------------------------------------------------ Chapter 6:2.3.1
1. Increase the use of performance objectives and goal-based
budgeting when establishing funding levels for programs and projects.
2. Promote better coordination and more active competition at and
among facilities.
3. Strengthen the authority of government field managers and hold
them accountable.
4. Test and assess alternatives to the cost reimbursement contract
model traditionally used by the agency at laboratories and weapons
production plants.
5. Improve the capability of the financial management systems used
to accumulate data from laboratories and weapons centers to measure,
analyze, report, and control spending so that it is uniform,
accurate, and received rapidly for programs and facilities.
GAO COMMENTS
------------------------------------------------------ Chapter 6:2.3.2
Agree. In our view, contractors should be held liable for improper
performance and accountable for improper behavior. However, as noted
in our December 1992 report entitled Department of Energy Contract
Management, the needed changes will take both time and commitment.
As a positive step, the Secretary of Energy, in June 1993,
established a special Contract Reform Team to, among other things,
develop a framework of performance measurements and incentives for
use in DOE's management and operating contracts.
IMPLEMENTATION
------------------------------------------------------ Chapter 6:2.3.3
Not Implemented--Action Taken. In February 1994, DOE's Contract
Reform Team issued a report identifying corrective actions that
directly support the action items recommended by the NPR. DOE has
formed task teams, including representatives from across the
Department, to implement each corrective action. Many of these
actions focus on developing objective performance criteria and
measures and switching to performance-based contracts for operating
the various DOE facilities (action item 1). Although DOE is still
developing these performance measures, it incorporated some of them
in the contract that it awarded for managing the Idaho National
Engineering Laboratory--the first contract awarded since the reform
effort began. DOE is also endeavoring to use more competition in
selecting contractors (action item 2), substitute fixed-price
contracts for the cost-reimbursable contracts that it used almost
exclusively in the past (action item 4), and improve its financial
management system (action item 5). The impact of these various
actions on the authority of DOE's field managers is not yet clear
(action item 3).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 6:2.3.4
DOE Management: Contract Provisions Do Not Protect DOE From
Unnecessary Pension Costs (GAO/RCED-94-201, Aug. 26, 1994).
Energy Management: Modest Reforms Made in University of California
Contracts, but Fees Are Substantially Higher (GAO/RCED-94-202, Aug.
25, 1994).
Department of Energy: Challenges to Implementing Contract Reform
(GAO/RCED-94-150, Mar. 21, 1994).
Department of Energy: Management Problems Require a Long-Term
Commitment to Change (GAO/RCED-93-72, Aug. 31, 1993).
Department of Energy Contract Management (GAO/HR-93-9, Dec. 1992).
Energy Management: Vulnerability of DOE's Contracting to Waste,
Fraud, Abuse, and Mismanagement (GAO/RCED-92-101, Apr.10, 1992).
Energy Management: Tightening Fee Process and Contractor
Accountability Will Challenge DOE (GAO/RCED-92-9, Oct. 30, 1991).
DOE04: INCREASE ELECTRICAL
POWER REVENUES AND STUDY
RATES
-------------------------------------------------------- Chapter 6:2.4
NPR proposes increasing federal income by allowing the Power
Marketing Administrations (PMA) to recover a larger portion of their
operating costs through rate increases or by changing the financing
of the Bonneville Power Administration.
ACTION ITEMS
------------------------------------------------------ Chapter 6:2.4.1
1. The Secretary should encourage PMAs in the Southeast, Southwest,
western areas, and Bonneville to be more aggressive in promoting
energy conservation programs with their subscriber utilities.
2. The Secretary should establish a new rate policy for PMAs in the
Southeast, Southwest, western areas, and Bonneville.
3. Congress should remove the Energy and Water Development
Appropriations Act prohibition against expending federal funds to
conduct studies of market rates or other noncost-based methods for
the pricing of hydroelectric power by federal PMAs.
GAO COMMENTS
------------------------------------------------------ Chapter 6:2.4.2
Disagree. Although we agree that the PMAs should be allowed to
recover a larger portion of their operating costs, we disagree that
the actions, as proposed, will increase federal income. The proposed
debt restructuring, in our opinion, would merely exchange an old
Treasury debt for a new Treasury debt and therefore would not
increase federal receipts.
IMPLEMENTATION
------------------------------------------------------ Chapter 6:2.4.3
Not Implemented--Action Taken. Three bills introduced in Congress,
the Government Reform and Savings Act of 1993 (H.R. 3400), the
Department of Energy Reform and Savings Act of 1993 (S. 1638), and
the Bonneville Power Administration Refinancing Act (S. 2332), focus
on the concept of restructuring debt. Debt restructuring has been
selected by the administration as an alternative to encouraging
energy conservation programs (action item 1) or to establishing new
rate policies (action item 2). H.R. 3400, which the House approved
in November 1993 and referred to the Senate Committee on Governmental
Affairs, would require the administrators of the PMAs to study
refinancing options. S. 1638 would require the administrators of
the PMAs, among other things, to repay their federal debt, and S.
2332 would require the Bonneville Power Administration to refinance
its appropriated debt. Reforming the rate policy was not addressed
in any of these bills (action item 2). None of these bills was
passed by the 103rd Congress. Although congressional action would be
necessary to remove the prohibition against conducting studies of
market rates for PMAs, a proposal to remove this prohibition was not
included in the pending legislation (action item 3).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 6:2.4.4
Bonneville Power Administration: Borrowing Practices and Financial
Condition (GAO/AIMD-94-67BR, Apr. 19, 1994).
GAO Products on Bonneville Power Administration (GAO/RCED-93-133R,
Mar. 31, 1993).
Agency Authority to Borrow Should Be Granted More Selectively
(GAO/AFMD-89-4, Sept. 15, 1989).
Policies Governing Bonneville Power Administration's Repayment of
Federal Investment Still Need Revision (GAO/EMD-84-25, Oct. 26,
1983).
Bonneville Power Administration's Repayment of the Federal Investment
(GAO Testimony, 122327, Sept. 14, 1983).
Federal Investment in the Columbia River Power System: Status of
Repayment (GAO Testimony, 122041, Aug. 3, 1983).
Policies Governing the Bonneville Power Administration's Repayment of
Federal Investments Need Revision (GAO/EMD-81-94, June 16, 1981).
DOE05: STRENGTHEN THE
FEDERAL ENERGY MANAGEMENT
PROGRAM
-------------------------------------------------------- Chapter 6:2.5
NPR recommends a number of improvements to this program, designed to
better manage federal energy use.
ACTION ITEMS
------------------------------------------------------ Chapter 6:2.5.1
1. Upgrade the Director of the Federal Energy Management Program
(FEMP) to Deputy Assistant Secretary status.
2. Support a priority status for FEMP's budget request for fiscal
years 1994 and 1995.
3. Promptly hire new FEMP staff for fiscal year 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 6:2.5.2
Generally Agree. We agree that certain improvements need to be made
to strengthen FEMP. These changes include a greater emphasis on
energy management by DOE and other federal agencies and increased
funding for federal energy conservation efforts. Funding options
could be increased by simplifying the procedures for financing energy
conservation projects through nonfederal sources, such as contracting
based on energy-saving performance and utility rebate programs.
IMPLEMENTATION
------------------------------------------------------ Chapter 6:2.5.3
Not Implemented--Action Taken. DOE has taken steps consistent with
each of the action items proposed by NPR to strengthen FEMP. DOE has
proposed a reorganization that would elevate the status of the FEMP
Director by having the Director report directly to the Assistant
Secretary (action item 1); asked for an increase in FEMP funding,
from $15.7 million in fiscal year 1994 to $37.1 million in fiscal
year 1995 (action item 2); and hired six of the eight new staff that
it plans to hire (action item 3). Congress did increase the FEMP
funding to $23.5 million for fiscal year 1995. Efforts to complete
the FEMP reorganization and the hiring of new staff are still
pending.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 6:2.5.4
Energy Conservation: Contractors' Efforts at Federally Owned Sites
(GAO/RCED-94-96, Apr. 29, 1994).
Energy Conservation: Federal Agencies' Funding Sources and Reporting
Procedures (GAO/RCED-94-70, Mar. 30, 1994).
Barriers to Installing Energy-Efficient Lighting in Federal Buildings
(GAO/T-GGD-90-54, July 11, 1990).
Energy Conservation: Federal Shared Energy Savings Contracting
(GAO/RCED-89-99, Apr. 17, 1989).
Status of the Federal Energy Management Program (GAO/RCED-84-86, Mar.
7, 1984).
DOE06: REDIRECT ENERGY
LABORATORIES TO POST-COLD
WAR PRIORITIES
-------------------------------------------------------- Chapter 6:2.6
This recommendation provides guidance for use of DOE energy labs,
focusing on defining new missions, consolidating or eliminating
unneeded facilities, and making their services of greater benefit in
the post-Cold War era.
ACTION ITEMS
------------------------------------------------------ Chapter 6:2.6.1
1. DOE should continue to support the reduction of funding for
nuclear weapons production, research, testing programs, and
infrastructure that are not needed to meet current defense
requirements.
2. The Secretary should develop a vision and mission for the total
DOE laboratory complex. The Secretary should then review the mission
and facilities of DOE laboratories, weapons production facilities,
and testing sites and recommend the phased consolidation or closure
of obsolete or redundant facilities.
3. The Secretary should convene a group to design and implement
mechanisms for identifying intellectual assets, test facilities, and
research capabilities at national labs that can be useful to other
government agencies.
4. Once DOE has established a fair "pricing" process, it should
encourage laboratory managers to bid on federal contracts and to
apply for government grants that could utilize their unique technical
capabilities without competing directly with the existing
capabilities of private industry.
5. Laboratory managers should also be encouraged to work more
closely with the private sector on high-priority R&D needs and to bid
for contract or cooperative work on such projects.
6. DOE, the contractors who manage the laboratories, and laboratory
managers should work to make access to the laboratories' resources
more accessible to the private sector, removing unnecessary layers of
approval for cooperative R&D agreements and contract work-for-others,
and taking other steps to simplify and speed up the process.
GAO COMMENTS
------------------------------------------------------ Chapter 6:2.6.2
Agree. We agree that the mission of the national laboratories needs
to be redefined. These laboratories--and particularly the three
defense laboratories--represent a significant national resource that
may be redirected toward important national priorities outside of
their traditional defense mission. Our ongoing work suggests that
strong government leadership is needed to redefine the laboratories'
missions and provide the kind of managerial tools necessary to ensure
a successful transition to new mission areas, such as competitiveness
and environmental technologies. These are the areas in which experts
believe the greatest contributions can be made. In the past, several
government task forces have been charged with examining the mission
of the national laboratories and developing appropriate
recommendations for change, but little has occurred. The
laboratories are very powerful, have strong constituencies and
independent power bases, and are already redefining their own
missions in the absence of stronger DOE leadership.
We also agree that opportunities exist for consolidating certain
weapons facilities and for sharpening the laboratories' defense
mission in light of changing military priorities. For example, the
laboratories still have an important role to play in improving the
safety of weapons.
IMPLEMENTATION
------------------------------------------------------ Chapter 6:2.6.3
Not Implemented--Action Taken. In February 1994, the Secretary of
Energy created the Advisory Board Task Force on Alternative Futures
for the Department of Energy National Laboratories to examine the
changing roles and missions of the national laboratories and to make
specific recommendations for redirecting their considerable resources
and talents to important national priorities. Part of the task
force's charge is to analyze alternative scenarios for the
laboratories, including restructuring and/or closing parts of the
laboratory system (action items 1, 2, and 3). The task force is
scheduled to report the results of its work in February 1995.
Meanwhile, the defense laboratories, facing declines in their nuclear
weapons budgets, have aggressively sought partnerships with other
federal agencies (action item 4) and with private industry (action
item 5). The Secretary has encouraged these kinds of partnerships as
a way of opening up the laboratories' unique facilities and valuable
technical talent (action item 6).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 6:2.6.4
Department of Energy: Management Problems Require a Long-Term
Commitment to Change (GAO/RCED-93-72, Aug. 31, 1993).
Energy Policy: Changes Needed to Make National Energy Planning More
Useful (GAO/RCED-93-29, Apr. 27, 1993).
Department of Energy Contract Management (GAO/HR-93-9, Dec. 1992).
Nuclear Weapons Complex: Issues Surrounding Consolidating Los Alamos
and Lawrence Livermore National Laboratories (GAO/RCED-92-98, Sept.
24, 1992).
Energy Policy: Developing Strategies for Energy Policies in the
1990s (GAO/RCED-90-85, June 19, 1990).
DOE07: SAVE COSTS THROUGH
PRIVATE POWER COGENERATION
-------------------------------------------------------- Chapter 6:2.7
This would allow the private sector to cogenerate power at DOE labs
as a means of saving money. DOD has similar authority at this time.
ACTION ITEM
------------------------------------------------------ Chapter 6:2.7.1
Legislation should be enacted to amend section 804(2)(B) of title
VIII, the Shared Energy Savings amendment of the National Energy
Conservation Policy Act, to remove the restriction that limits the
sale or use of cogenerated electricity to federally owned facilities.
GAO COMMENTS
------------------------------------------------------ Chapter 6:2.7.2
Generally Agree. Although we have not specifically made a
recommendation on this issue, we generally support the idea of using
fuel-efficient cogeneration technology where feasible. The benefits
of using this technology were recognized by Congress as early as 1978
with passage of the Public Utilities Regulatory Policies Act, which
required electric utilities to purchase energy from cogenerators and
other power producers.
IMPLEMENTATION
------------------------------------------------------ Chapter 6:2.7.3
Not Implemented--Action Taken. Three bills were introduced in the
103rd Congress: the Government Reform and Savings Act of 1993 (H.R.
3400), the Department of Energy Reform and Savings Act of 1993 (S.
1638), and the Government Downsizing, Performance, and Accountability
Act of 1994 (S. 1843). All of these bills proposed amending the
National Energy Conservation Policy Act (NECPA) to remove the
restriction that limits the sale or use of cogenerated electricity to
federally owned facilities. The Senate Committee on Energy and
Natural Resources held a hearing on S. 1638 in November 1993. In
addition, the Federal Cogeneration Act of 1993 (H.R. 3371) would
have permitted off-site electricity sales, although it did not
propose amending NECPA. None of these bills was passed by the 103rd
Congress.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 6:2.7.4
None.
DOE08: SUPPORT THE SALE OF
THE ALASKA POWER
ADMINISTRATION
-------------------------------------------------------- Chapter 6:2.8
The federal government should divest its interests in the Alaska
Power Administration.
ACTION ITEM
------------------------------------------------------ Chapter 6:2.8.1
Legislation should be enacted that is the same as, or similar to,
H.R. 5516 from the 102nd Congress authorizing the sale of the two
Alaska Power Administration projects in accordance with the
previously negotiated purchase agreements.
GAO COMMENTS
------------------------------------------------------ Chapter 6:2.8.2
Generally Agree. We support the concept of such a sale, provided the
terms and conditions of the sale carefully balance the interests of
the Alaska Power Administration's (APA) existing ratepayers and of
taxpayers. However, we have continuing concerns, as we noted in our
February 1990 report entitled Federal Electric Power: Views on the
Sale of Alaska Power Administration Hydropower Assets, about the
terms and conditions of the sale as proposed. Specifically, while
the selling price will likely facilitate the sale and minimize the
impact of the sale on APA ratepayers, it will not likely reflect the
fair market value of the assets and will not recover all federal
costs associated with the project.
IMPLEMENTATION
------------------------------------------------------ Chapter 6:2.8.3
Not Implemented--Action Taken. DOE has been working since 1986 to
facilitate the sale of the APA. Four bills were introduced in the
103rd Congress supporting the sale: the Government Reform and
Savings Act of 1993 (H.R. 3400); the Department of Energy Reform and
Savings Act of 1993 (S. 1638); the Government Downsizing,
Performance, and Accountability Act of 1994 (S. 1843); and the
Alaska Power Administration Sale Authorization Act (S. 2383). The
House approved H.R. 3400 on November 22, 1993, and referred it to
the Senate Committee on Governmental Affairs. The Senate Committee
on Energy and Natural Resources approved S. 2383 on August 12, 1994.
None of these bills was passed by the 103rd Congress.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 6:2.8.4
Federal Electric Power: Views on the Sale of Alaska Power
Administration Hydropower Assets (GAO/RCED-90-93, Feb. 22, 1990).
ENVIRONMENTAL PROTECTION AGENCY
(EPA)
============================================================ Chapter 7
OVERALL SUMMARY
---------------------------------------------------------- Chapter 7:1
Of the 11 NPR recommendations addressed to EPA, the agency has fully
implemented 1, partially implemented 3 others, and taken some action
but not implemented 7 others. EPA had begun to reorganize the Office
of Enforcement before the NPR issued its report, and the agency had
fully implemented this recommendation by October 1993 (EPA11).
Similarly, EPA has been carrying out activities for several years to
implement the three partially implemented recommendations--to
increase flexibility for local governments (EPA01), consider
environmental justice (EPA09), and promote quality science (EPA10).
EPA has initiated some activity to implement the remaining seven
recommendations, even though it has not finished responding to the
specific action items associated with these recommendations. It is
important to note, however, that while many of these action items
call for new activities, EPA initiated efforts in past years that
further the goals of several of the seven recommendations, including
the recommendations to place more emphasis on preventing pollution
(EPA03), establish measurable environmental goals (EPA07), and reform
the agency's contract management process (EPA08).
GAO CONTACT
-------------------------------------------------------- Chapter 7:1.1
Peter F. Guerrero, Director, Environmental Protection Issues,
Resources, Community, and Economic Development Division, (202)
512-6111.
RECOMMENDATION INFORMATION
---------------------------------------------------------- Chapter 7:2
EPA01: IMPROVE
ENVIRONMENTAL PROTECTION
THROUGH INCREASED
FLEXIBILITY FOR LOCAL
GOVERNMENTS
-------------------------------------------------------- Chapter 7:2.1
EPA should amend the regulations it determines are most troublesome
for local governments pursuant to the Regulatory Flexibility Act of
1980. The goal is to provide alternative, flexible approaches to
meeting environmental mandates.
ACTION ITEMS
------------------------------------------------------ Chapter 7:2.1.1
1. EPA should amend the regulations pursuant to the Regulatory
Flexibility Act of 1980 determined to be most troublesome for local
government to provide alternative and flexible approaches to meeting
environmental mandates.
2. 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.
3. EPA should establish a pilot project that will assist one
community to assess its environmental and community health risks in
directing resources to priority problems.
GAO COMMENTS
------------------------------------------------------ Chapter 7:2.1.2
Generally Agree. Our work has documented the regulatory burdens many
localities face in meeting environmental requirements. Accordingly,
we support the goal of providing alternative, flexible approaches to
meeting environmental mandates, including nonregulatory approaches
such as market-based incentives and pollution prevention strategies.
However, in our view it might be more appropriate to provide such
flexibility by amending the pertinent environmental statutes rather
than by providing it through the Regulatory Flexibility Act.
Furthermore, in providing local governments with regulatory relief,
care must be taken to ensure that human health and the environment
are adequately protected and to avoid creating environmental
inequities between localities.
IMPLEMENTATION
------------------------------------------------------ Chapter 7:2.1.3
Partially Implemented. EPA is taking steps to reduce regulatory
burdens on small communities by soliciting their comments on the
regulations that they find most burdensome. For example, the agency
recently changed a rule to give small communities separate
consideration on the basis of the amount of solid waste they produce.
EPA is now gathering information at the state and local levels to
identify possible alternatives to current regulations. It has formed
a Local Government Advisory Committee and a Small Town Task Force
Advisory Committee to advise the EPA Administrator and recommend ways
to increase flexibility for local governments. EPA is also
encouraging states to more fully utilize the flexibilities in current
regulations. For example, the Office of Water has asked EPA regional
offices and states to increase their use of monitoring flexibilities
already built into chemical regulations under the agency's drinking
water program. In particular, the Office has strongly encouraged
states to develop, and regions to approve, monitoring waiver
programs. These waiver programs would allow drinking water systems,
under certain conditions, to forgo expensive testing for water
contaminants if these contaminants were extremely unlikely to be
found in the systems' water supplies. Also, the President's Clean
Water Initiative, announced in February 1994, proposed changes to the
Clean Water Act that would allow market-based incentives and would
increase flexibility for local governments. The reauthorization bill
incorporating these proposed changes was not passed during the 103rd
Congress (action item 1).
EPA has convened town meetings to obtain public comment on proposed
changes in the agency's regulations. For example, the Office of
Solid Waste and Emergency Response has scheduled town meetings with
local government officials and citizen groups to solicit their views
on regulatory reforms (action item 2).
EPA established a pilot project in Columbus, Ohio, to assess health
risks in the community. The project has reviewed the community's
environmental risks and is developing priorities through a consensus
process to target resources to the most pressing environmental needs.
In addition, EPA's Region 8 is pilot testing a block grant program
with the states of Montana and North Dakota that would give these
states the flexibility to move resources from one program or medium
to another to meet environmental program goals and optimize
environmental results. The agency is also planning several
cross-media and media-specific pilot programs at the local and state
levels to test whether increasing flexibility will improve the
performance of environmental protection programs (action item 3).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 7:2.1.4
Regulatory Flexibility Act: Status of Agencies' Compliance
(GAO/GGD-94-105, Apr. 27, 1994).
Environmental Protection: Meeting Public Expectations With Limited
Resources (GAO/RCED-91-97, June 18, 1991).
EPA02: STREAMLINE EPA'S
PERMIT PROGRAM
-------------------------------------------------------- Chapter 7:2.2
Streamlining efforts include a permit clearinghouse to serve as a
single point of contact and piloting a cross-program permit tracking
system.
ACTION ITEMS
------------------------------------------------------ Chapter 7:2.2.1
1. EPA should establish a permit clearinghouse by July 1995 to serve
as a single point of contact for regulated industries and local
governments to obtain information about national and regional
regulations and permitting requirements.
2. EPA should authorize states that now have full statutory
authority and permit fee systems in place to take full responsibility
for permit programs.
3. EPA should identify, by June 1994, statutes that prevent
flexibility in permitting and report to the Administrator for
follow-up action.
4. EPA should develop a cross-program permit tracking system pilot
with one state and one region by June 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 7:2.2.2
Insufficient Information. Although the concept of streamlining the
permit process appears to have merit, we have not to date assessed
the benefits (or possible drawbacks) of establishing a permit
clearinghouse or piloting a cross-program permit tracking system.
IMPLEMENTATION
------------------------------------------------------ Chapter 7:2.2.3
Not Implemented--Action Taken. EPA is in the initial phase of
addressing this recommendation. The agency chartered a Permit
Streamlining Task Force in July 1994 to improve environmental
permitting processes. The task force was charged with developing an
implementation plan by September 30, 1994, that would establish
priorities for action and detailed plans and time frames for
implementing the permitting improvements embodied in all four of the
recommendation's action items. EPA has developed an interim action
plan and expects to complete the final plan by December 15, 1994.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 7:2.2.4
None.
EPA03: SHIFT EPA'S EMPHASIS
TOWARD POLLUTION PREVENTION
AND AWAY FROM POLLUTION
CONTROL
-------------------------------------------------------- Chapter 7:2.3
EPA needs to emphasize pollution prevention by implementing an
effective pollution prevention strategy that includes amending
regulations and motivating the private sector to invest in cleaner,
less polluting technologies and practices.
ACTION ITEMS
------------------------------------------------------ Chapter 7:2.3.1
1. The preamble to each major rule proposed by EPA should include a
summary of the total multimedia releases and resultant risks to the
environment from the activities that are the subject of the rule.
2. EPA should use its flexibility as it already has for the pulp and
paper industry to adjust regulatory timetables so that major rules
are proposed on the same date.
3. EPA should change existing reporting requirements that create
disincentives to multimedia inspections and enforcement actions at
both the federal and state level.
4. EPA should move toward a consolidated grant approach providing
states with maximum flexibility in the use of federal funds in
carrying out responsibilities that have been delegated to the states
by EPA.
5. EPA should provide states with incentives to invest funds in
water conservation and pollution prevention programs that reduce
pollutant loadings of concern.
6. EPA should invite a specific industry sector to jointly undertake
several projects to evaluate the feasibility of developing multimedia
pollution prevention strategies for that particular industry.
7. EPA should help focus existing private sector labeling and
standards programs by identifying the product categories of greatest
concern. In addition, the agency should work with the American
National Standards Institute in developing a coherent U.S. position
on eco-labeling and life-cycle analysis.
8. EPA should work cooperatively 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.
9. EPA should develop a plan for 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.
10. EPA should create an integrated database that provides
information useful for measuring performance by industry, sector, and
facility, and for devising long-term multimedia pollution prevention
strategies.
11. EPA should earmark funds for environmental technology for
prevention.
12. A significant portion of funds for the Environmental Technology
Initiative should be targeted for technical assistance, including
information access.
GAO COMMENTS
------------------------------------------------------ Chapter 7:2.3.2
Agree. We support pollution prevention strategies. A central theme
running through much of our work over the past several years has been
that it is far less expensive (and more environmentally beneficial)
to reduce or eliminate pollution at its source rather than treat it
at the "end of the pipe." Although EPA has taken steps towards
promoting pollution prevention, our work has stressed the need for
EPA to place greater emphasis on these efforts.
IMPLEMENTATION
------------------------------------------------------ Chapter 7:2.3.3
Not Implemented--Action Taken. EPA's Pollution Prevention Policy
Statement broadly addresses this recommendation. The agency has
taken numerous steps to build pollution prevention into each of its
media areas. The implementation of this recommendation is driven by
two executive orders and is reflected in institutional changes at
EPA. On August 3, 1993, President Clinton signed Executive Order
12856, which requires the volume of toxic pollutants released into
the environment from federal facilities to be cut in half by 1999.
The order also requires all federal agencies to comply with the
Emergency Planning and Community Right-to-Know Act of 1986, which
authorized programs to provide information on hazardous and toxic
chemicals and established emergency planning and notification
requirements. On October 20, 1993, President Clinton signed
Executive Order 12873, which requires the federal government to
procure recycled paper and other products, such as rerefined oil and
retread tires.
Responsibility for addressing the first and second action items rests
with the Office of Policy, Planning and Evaluation's Regulatory
Policy Council. According to a Council member, EPA is not responding
across the board to the requirement for a summary of the total
multimedia releases and resultant risks to the environment because
the technology for responding to this requirement does not exist
(action item 1). The Council has tried to adjust and schedule
regulatory timetables for particular industries. Specifically, it
has decided to adjust the regulatory timetables for the six
industries included in EPA's Common Sense Initiative--the automobile
assembly, computer and electronics, iron and steel, metal plating and
finishing, petroleum refining, and printing industries (action item
2).
The recent reorganization of EPA's enforcement office changed
reporting requirements, establishing the Office of Enforcement and
Compliance Assurance (OECA), which is organized primarily around
economic sectors and is designed to support industries' efforts to
meet environmental requirements by preventing pollution (action item
3).
Steps have been taken to give states greater flexibility in using
federal funds to carry out responsibilities delegated to them by EPA.
For example, the legislation proposed to reauthorize the Federal
Water Pollution Control Act (H.R. 3948) would give maximum
flexibility in using grant funds to states adopting a watershed
approach (action item 4). This legislative proposal would also give
states incentives to invest in water conservation and pollution
prevention programs. EPA helped to develop the language in the
proposal establishing such incentives for states (action item 5).
EPA will invite industry to participate in developing multimedia
pollution prevention strategies for specific industrial sectors
through the Common Sense Initiative. This initiative will bring
together federal, state, and local representatives; environmental
leaders; and industry executives to examine the full range of
environmental requirements affecting six selected industries--the
automobile assembly, computer and electronics, iron and steel, metal
plating and finishing, petroleum refining, and printing industries
(action item 6).
EPA is developing guidance that will assist agencies in identifying
environmentally preferable products for purchase (action item 7), and
it is working with the U.S. Department of Agriculture and the Food
and Drug Administration to develop a comprehensive food
safety/pesticide strategy (action item 8).
EPA has taken steps to implement two executive orders on pollution
prevention and recycling. Specifically, EPA's Office of Pollution
Prevention and Toxics (OPPT) has developed a plan to implement
Executive Order 12856 to reduce toxics released into the environment.
Also, in April 1994, EPA proposed procurement guidelines for federal
agencies and departments to use in implementing Executive Order 12873
on recycling. An interagency task force met in May 1994 to develop a
plan to implement Executive Order 12856 and draft interim final
guidance (action item 9).
OPPT is creating a database for pollution prevention strategies
(action item 10) and is developing an implementation plan to earmark
funds for environmental protection technology (action item 11). In
addition, EPA has targeted fiscal year 1995 Environmental Technology
Initiative funds for technical assistance and is soliciting project
proposals, pending congressional approval (action item 12).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 7:2.3.4
Toxic Substances: Status of EPA's Efforts to Reduce Toxic Releases
(GAO/RCED-94-207, Sept. 22, 1994).
Drinking Water: Stronger Efforts Needed to Protect Areas Around
Public Wells From Contamination (GAO/RCED-93-96, Apr. 14, 1993).
Environmental Protection: Meeting Public Expectations with Limited
Resources (GAO/RCED-91-97, June 18, 1991).
Water Pollution: More Emphasis Needed on Prevention in EPA's Efforts
to Protect Groundwater (GAO/RCED-92-47, Dec. 30, 1991).
Environmental Protection: Meeting Public Expectations With Limited
Resources (GAO/RCED-91-97, June 18, 1991).
EPA04: PROMOTE THE USE OF
ECONOMIC AND MARKET-BASED
APPROACHES TO REDUCE WATER
POLLUTION
-------------------------------------------------------- Chapter 7:2.4
EPA should work with Congress to propose language amending the Clean
Water Act to explicitly encourage market-based approaches to reduce
water pollution. EPA should also identify wastewater discharge fees
that could be included in the Clean Water Act's reauthorization.
ACTION ITEMS
------------------------------------------------------ Chapter 7:2.4.1
1. EPA should work with Congress to propose language amending the
Clean Water Act to explicitly encourage market-based approaches to
reduce water pollution.
2. The EPA Administrator should work with Congress to identify water
pollution discharge fees that could be included in the Clean Water
Act reauthorization.
GAO COMMENTS
------------------------------------------------------ Chapter 7:2.4.2
Agree. We support market-based approaches to reducing water
pollution and have asked Congress to consider amending the Clean
Water Act to explicitly authorize pollutant trading. In addition, we
have asked Congress to consider directing EPA to develop a
pollutant-based fee system for dischargers to generate additional
revenues and serve as an incentive for dischargers to reduce or
eliminate toxic discharges.
IMPLEMENTATION
------------------------------------------------------ Chapter 7:2.4.3
Not Implemented--Action Taken. The President's Clean Water
Initiative, published in February 1994, includes recommendations for
amendments to the Clean Water Act that would promote market-based
approaches and would authorize fees for water discharge permits. For
instance, the proposal endorses programs for trading water pollution
reduction credits (action item 1) and recommends that broad authority
be extended to states, tribes, and EPA to determine the basis of
their fee structures for National Pollutant Discharge Elimination
System (NPDES), pretreatment, and sludge programs (action item 2).
The legislative proposals incorporating the initiative's
recommendations were not passed during the 103rd Congress.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 7:2.4.4
Water Pollution: EPA Needs to Set Priorities for Water Quality
Criteria Issues (GAO/RCED-94-117, June 17, 1994).
Environmental Protection: Implications of Using Pollution Taxes to
Supplement Regulation (GAO/RCED-93-13, Feb. 17, 1993).
Water Pollution: Pollutant Trading Could Reduce Compliance Costs if
Uncertainties Are Resolved (GAO/RCED-92-153, June 15, 1992).
Water Pollution: Stronger Efforts Needed by EPA to Control Toxic
Water Pollution (GAO/RCED-91-154, July 19, 1991).
EPA05: INCREASE PRIVATE
SECTOR PARTNERSHIPS TO
ACCELERATE DEVELOPMENT OF
INNOVATIVE TECHNOLOGIES
-------------------------------------------------------- Chapter 7:2.5
NPR recommends that EPA develop an action plan with specific
milestones for improving the regulatory and statutory climate for
innovative technologies.
ACTION ITEMS
------------------------------------------------------ Chapter 7:2.5.1
1. EPA should develop an action plan with specific milestones, by
mid-1994, for improving the regulatory and statutory climate for
innovative technologies.
2. EPA, in partnership with other federal agencies, should establish
a small business center as a pilot program to expand the technology
options available in the marketplace by helping businesses obtain
financing for new technologies.
3. EPA should develop and promote a series of monographs to assist
industry in identifying pollution prevention opportunities and making
informed, responsible design choices.
4. EPA should establish five partnerships similar to the McClellan
Air Force Base model to expand available sites where developers and
vendors can test and evaluate their technologies.
5. EPA should establish an environmental technology performance
verification program by October 1995, to evaluate and validate the
claims of environmental technology vendors.
6. EPA should establish five partnerships with different industries
to reengineer common products and processes in order to promote
environmentally cleaner manufacturing processes.
GAO COMMENTS
------------------------------------------------------ Chapter 7:2.5.2
Agree. We support improving the climate for innovative technologies.
Several of our reviews in the Superfund and drinking water/wastewater
areas have identified barriers hindering the wider use of innovative
technologies. While EPA has attempted to address some of these
barriers in the past, a more systematic and comprehensive approach is
warranted.
IMPLEMENTATION
------------------------------------------------------ Chapter 7:2.5.3
Not Implemented--Action Taken. In January 1994, the EPA
Administrator announced the U.S. EPA Environmental Technology
Initiative: FY 1994 Program Plan and the Technology Innovation
Strategy as a combined action plan for developing public-private
partnerships to accelerate the development of environmental
technologies. The strategy contains several specific objectives
designed to reduce regulatory and policy barriers that inhibit
innovation in technology. Of the $36 million that EPA has invested
in 73 projects in fiscal year 1994 to develop and commercialize
technology, about $2 million is being allocated for 12 projects that
address specific regulatory and policy issues. Work on many of these
projects has just begun, and completion is planned by the middle of
fiscal year 1995. Milestones are being set within each project's
schedule (action item 1). EPA has provided financing for small
businesses to commercialize new technologies through the agency's
Small Business Innovation Research program (action item 2).
To assist industry in identifying pollution prevention opportunities
and making informed, responsible design choices, EPA has developed
two case study reports--A Summary of Pollution Prevention Case
Studies with Economic Data and Abstracts of Pollution Prevention Case
Study Sources (action item 3). The agency is also selecting five
partnerships for industry to test and evaluate environmental
technologies under the Environmental Technology Initiative, subject
to the proposed projects' selection for funding through the
initiative in fiscal year 1995 (action item 4).
EPA is funding a feasibility study to develop options for an
environmental technology performance verification program. One of
the focus areas for funding in the fiscal year 1995 Environmental
Technology Initiative is Innovation Capacity. This area will address
environmental technology performance verification (action item 5).
Under a program called Design for the Environment, EPA has
established two partnerships with the printing and dry cleaning
industries to reengineer products and processes to prevent pollution
through the use of safer chemicals. Three additional partnerships
are being negotiated with the aerospace, metal plating, and wiring
boards industries (action item 6).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 7:2.5.4
Water Pollution: Information on the Use of Alternative Wastewater
Treatment Systems (GAO/RCED-94-109, Sept. 26, 1994).
Superfund: EPA Needs to Better Focus Cleanup Technology Development
(GAO/T-RCED-93-34, Apr. 28, 1993).
Water Pollution: Alternative Strategies Needed to Reduce Wastewater
Treatment Costs (GAO/T-RCED-92-84, Aug. 4, 1992).
EPA06: STOP THE EXPORT OF
BANNED PESTICIDES
-------------------------------------------------------- Chapter 7:2.6
EPA should work with Congress to develop legislation to stop the
exportation of banned pesticides from the United States by June 1994.
ACTION ITEMS
------------------------------------------------------ Chapter 7:2.6.1
1. EPA should work with Congress in developing legislation that
would stop the United States from exporting banned pesticides by June
1994.
2. EPA should work with appropriate national and international
organizations and private industry to develop policies that make
Prior Informed Consent (PIC) more enforceable throughout the world.
3. EPA, in cooperation with USDA and the Food and Drug
Administration (FDA), should consider developing a public-private
sector partnership to provide technical assistance to developing
countries by January 1995.
GAO COMMENTS
------------------------------------------------------ Chapter 7:2.6.2
Generally Agree. We understand that there are strongly held,
different views on this matter. We agree that exporting substances
banned in this country is troubling and deserves further examination.
Our report entitled Pesticides: Limited Testing Finds Few Exported
Unregistered Pesticide Violations on Imported Food (1) identified
unregistered pesticides produced in the United States for export and
(2) determined, on the basis of the results of testing by FDA and
USDA, whether these pesticides are returning to the United States as
residues on imported goods. While we found that FDA's monitoring for
such residues indicated that these problems are rare, we did discover
that FDA lacked sufficient information to provide complete assurance
that the problems were not occurring.
IMPLEMENTATION
------------------------------------------------------ Chapter 7:2.6.3
Not Implemented--Action Taken. EPA has worked with Congress to
develop legislation to stop the export of banned pesticides; however,
this proposal was not passed during the 103rd Congress. Although the
agency has taken action on all three action items, the export of
banned pesticides has not ended. EPA regulates the sale and use of
pesticides under two statutes--the Federal Insecticide, Fungicide and
Rodenticide Act (FIFRA) and the Federal Food, Drug and Cosmetic Act.
On September 21, 1993, the administration announced a plan for
reforming FIFRA that included a provision to ban the export of
pesticides whose registrations for domestic use had been canceled or
denied for health or safety reasons. Legislative proposals to amend
FIFRA (H.R. 4329 and S. 2050) also contained provisions to prohibit
the export of certain pesticides (action item 1).
EPA is working with other countries and appropriate organizations on
the Prior Informed Consent (PIC) system, a procedure through which
participating importing countries receive information about
pesticides whose use has been banned or severly restricted because of
concerns about the pesticides' effects on health and/or the
environment. The importing nation can then allow or prohibit a
pesticide's import. Under FIFRA, EPA does not have the authority to
prohibit the export of banned pesticides as long as certain labeling
and notification requirements have been met (action item 2).
EPA works with other agencies to respond to requests from developing
countries for technical assistance, but no agency funds are set aside
specifically for this purpose. The legislative proposals to amend
FIFRA (H.R. 4329 and S. 2050) direct EPA to provide technical
assistance to developing countries and authorize funding for this
purpose (action item 3); however, these proposals were not passed
during the 103rd Congress.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 7:2.6.4
Pesticides: Limited Testing Finds Few Exported Unregistered
Pesticide Violations on Imported Food (GAO/RCED-94-1, Oct. 6, 1993).
EPA07: ESTABLISH MEASURABLE
GOALS, PERFORMANCE
STANDARDS, AND STRATEGIC
PLANNING WITHIN EPA
-------------------------------------------------------- Chapter 7:2.7
EPA should draft measurable environmental goals for the range of
environmental problems the United States faces. The agency should
also draft internal goals to provide direction for assessing and
redirecting existing EPA strategies.
ACTION ITEMS
------------------------------------------------------ Chapter 7:2.7.1
1. By April 1994, EPA should prepare measurable internal goals to
provide direction for assessing and redirecting existing EPA
strategies where needed.
2. By April 1995, EPA should draft measurable environmental goals
for the range of environmental problems the United States faces.
3. EPA should develop performance measures for selected goals and
strategies consistent with the Government Performance and Results Act
of 1993 (GPRA).
GAO COMMENTS
------------------------------------------------------ Chapter 7:2.7.2
Agree. We concur with the need for measurable environmental goals.
A central theme of our work over the past several years has been the
need for EPA to establish strategic plans and develop measurable
environmental goals and indicators. These goals, strategies, and
indicators are critical for EPA to ensure that (1) the most pressing
environmental needs are addressed in an era of limited resources and
(2) progress in these efforts can be tracked and assessed.
IMPLEMENTATION
------------------------------------------------------ Chapter 7:2.7.3
Not Implemented--Action Taken. EPA has drafted a 5-year strategic
plan that is intended to define the agency's role and direction into
the next century. Although the plan includes guiding principles for
the agency, it states that EPA is still developing measurable
environmental goals (action item 1).
On the national level, EPA appears to be on schedule in establishing
measurable goals by Earth Day (Apr. 22, 1995) for the range of
environmental problems the United States faces. As a first step, EPA
launched the National Environmental Goals Project in November 1993.
To date, this project has developed a preliminary list of broad
environmental goal areas for which measurable goals need to be set.
EPA is holding public meetings across the country during 1994 to
discuss the draft goal areas and obtain public input. After
obtaining input, EPA will develop the goal statements, which the
public will review during a second round of meetings, and EPA will
finalize and release the statements. EPA plans to link its future
strategic plans to this complete set of measurable goals (action item
2).
EPA's implementation of the Government Performance and Results Act of
1993 (GPRA) began in fiscal year 1994 when the Office of Management
and Budget (OMB) selected EPA's Leaking Underground Storage Tank
(LUST) program as a GPRA pilot program. EPA plans to expand its
implementation of the programs covered by GPRA until it achieves full
implementation. Full implementation of GPRA begins in fiscal year
1999 (action item 3).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 7:2.7.4
Environmental Protection Issues (GAO/OCG-93-16TR, Dec. 1992).
Environmental Protection: Meeting Public Expectations With Limited
Resources (GAO/RCED-91-97, June 18, 1991).
Environmental Protection Agency: Protecting Human Health and the
Environment Through Improved Management (GAO/RCED-88-101, Aug. 16,
1988).
EPA08: REFORM EPA'S
CONTRACT MANAGEMENT PROCESS
-------------------------------------------------------- Chapter 7:2.8
NPR recommends reform in EPA's contract management process by
implementing performance standards and by maximizing competition in
the contracting process.
ACTION ITEMS
------------------------------------------------------ Chapter 7:2.8.1
1. EPA should fully implement performance standards for contract
management advocated by the standing committee, the OMB review, and
the Administrator by January 1994.
2. EPA should institutionalize the oversight recommendations of the
standing committee, the OMB review, and the Administrator by January
1995.
3. EPA should maximize competition in the contracting process.
4. OMB should provide EPA with more flexibility in determining the
appropriate balance of extramural versus intramural resources.
GAO COMMENTS
------------------------------------------------------ Chapter 7:2.8.2
Generally Agree. We agree that EPA should reform its contract
management process. However, our work has identified other, more
serious problems than the need to implement performance standards and
maximize competition in the contracting process. Specifically, we
have found that EPA and other agencies (1) rely extensively on
contractors to carry out agency missions, (2) administer contracts
ineffectively, (3) insufficiently oversee contract auditing, and (4)
lack high-level management attention to and accountability for
contract management.
IMPLEMENTATION
------------------------------------------------------ Chapter 7:2.8.3
Not Implemented--Action Taken. EPA has a number of initiatives under
way to reform its contract management process. To implement
performance standards for contract management, EPA has incorporated
standards in employees' position descriptions and in job vacancy
announcements (action item 1).
An Office of Management and Budget (OMB) review and an EPA standing
committee developed 40 recommendations to reform EPA's contract
management process. EPA has implemented 26 of the 40 recommendations
and says that its effort will fully address the NPR's call for reform
in contract management (action item 2).
To maximize competition in the contracting process, EPA has initiated
a pilot project to award a major contract for federal information
processing support services electronically via the Internet, a
worldwide computer network. According to an agency document, this
approach will make procurement information accessible to a wide
audience of potential bidders, reduce procurement lead-times,
increase competition, and achieve substantial savings. Also to
maximize competition, EPA is planning to break up some large
multifunction contracts with broad statements of work into smaller,
more manageable contracts. Finally, EPA is scheduled to participate
in an OMB pilot project to ensure that contracts deliver the results
intended (action item 3). To improve the balance between extramural
and intramural resources, EPA is converting 900 contractor positions
to full-time equivalent positions. This conversion is considered a
major component of the agency's contract reform program (action item
4).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 7:2.8.4
Superfund Program Management (GAO/HR-93-10, Dec. 1992).
Federal Contracting: Cost-Effective Contract Management Requires
Sustained Commitment (GAO/T-RCED-93-2, Dec. 3, 1992).
EPA09: ESTABLISH A
BLUEPRINT FOR ENVIRONMENTAL
JUSTICE THROUGH EPA'S
OPERATIONS
-------------------------------------------------------- Chapter 7:2.9
EPA should develop a blueprint of actions that will incorporate
environmental justice considerations into all aspects of EPA
operations.
ACTION ITEMS
------------------------------------------------------ Chapter 7:2.9.1
1. EPA should develop, by mid-1994, a blueprint of actions that will
incorporate environmental justice considerations into all aspects of
EPA operations.
2. EPA should prepare an annual report providing analysis of the
progress it has made regarding environmental justice and should
develop appropriate remedies for communities that have suffered
environmental injustice.
GAO COMMENTS
------------------------------------------------------ Chapter 7:2.9.2
Generally Agree. In our view, there is merit in incorporating
environmental justice considerations into all aspects of EPA's
operations. We reviewed a sample of hazardous waste sites and found
that African Americans made up the majority of the population in
three of the four communities where the sites were located,
suggesting a bias in the siting of these facilities. On the basis of
Congress's and the administration's strong interest in this issue, we
are conducting an ongoing review of environmental equity in the
siting of solid and hazardous waste facilities.
IMPLEMENTATION
------------------------------------------------------ Chapter 7:2.9.3
Partially Implemented. In implementing this recommendation, EPA has
met the time frames outlined in Executive Order 12898 (Federal
Actions to Address Environmental Justice in Minority Populations and
Low-Income Populations, Feb. 11, 1994). EPA has developed a draft
environmental justice strategy and an action document to integrate
environmental justice into all of the agency's programs and policies.
The agency has also created an interagency work group on
environmental justice (action item 1).
In February 1994, EPA issued an annual report on the progress of its
efforts in the area of environmental justice. EPA has yet to develop
appropriate remedies for communities that have suffered environmental
injustice (action item 2).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 7:2.9.4
Superfund: EPA'S Community Relations Efforts Could Be More Effective
(GAO/RCED-94-156, Apr. 8, 1994).
Siting of Hazardous Waste Landfills and Their Correlation With Racial
and Economic Status of Surrounding Communities (GAO/RCED-83-168, June
1, 1983).
EPA10: PROMOTE QUALITY
SCIENCE FOR QUALITY
DECISIONS
------------------------------------------------------- Chapter 7:2.10
Improvements include establishing guidelines for professional
development of EPA's scientific and technical staff and expanding the
use of peer-review and quality assurance procedures.
ACTION ITEMS
----------------------------------------------------- Chapter 7:2.10.1
1. EPA should work to establish guidelines for professional
development and promotion of scientific and technical staff.
2. EPA should expand the use of peer review and quality assurance
procedures to promote excellence in science.
3. The EPA Administrator should assess the organizational
effectiveness and appropriate structures of EPA's laboratories.
4. EPA should develop a plan to integrate opportunities for
increased scientific communications within and outside EPA.
GAO COMMENTS
----------------------------------------------------- Chapter 7:2.10.2
Agree. We support the need to promote quality science and have
highlighted the problems associated with poor or questionable science
and quality assurance procedures in several of our reports. Most
recently, we concluded in our report entitled Peer Review: EPA Needs
Implementation Procedures and Additional Controls that EPA's January
1993 peer review policy statement does not define technically based
products and does not specify the implementation procedures or steps
needed to perform peer review.
IMPLEMENTATION
----------------------------------------------------- Chapter 7:2.10.3
Partially Implemented. EPA has established a "career-paths" task
force to review the agency's staff development programs for
scientific and technical personnel and to institute guidelines for
these employees' professional development (action item 1). To expand
the agency's use of peer review, the EPA Administrator issued a
policy statement reaffirming the role of peer review and charging
EPA's Science Policy Council with instituting an expanded peer review
program in all EPA offices (action item 2).
An assessment of EPA's scientific and technical laboratories and
facilities was completed in May 1994. This assessment, conducted by
the MITRE Corporation, identified a number of options for
consolidating EPA's laboratories along physical, organizational, or
functional lines. On the basis of the assessment's findings and
observations, the EPA Administrator reported to Congress that the
agency was implementing an integrated set of actions to restructure
its research laboratories and facilities (action item 3).
The Science Policy Council is in the initial phase of addressing
scientific communications. The Council's primary focus will be on
risk characterization (action item 4).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 7:2.10.4
Peer Review: EPA Needs Implementation Procedures and Additional
Controls (GAO/RCED-94-89, Feb. 22, 1994).
Environmental Enforcement: EPA Cannot Ensure the Accuracy of
Self-Reported Compliance Monitoring Data (GAO/RCED-93-21, Mar. 31,
1993).
Water Pollution: Stronger Efforts Needed by EPA to Control Toxic
Water Pollution (GAO/RCED-91-154, July 19, 1991).
Toxic Substances: EPA's Chemical Testing Program Has Not Resolved
Safety Concerns (GAO/RCED-91-136, June 19, 1991).
Disinfectants: EPA Lacks Assurance They Work (GAO/RCED-90-139, Aug.
30, 1990).
EPA11: REORGANIZE EPA'S
OFFICE OF ENFORCEMENT
------------------------------------------------------- Chapter 7:2.11
EPA should initiate a reorganization of its headquarters enforcement
organization by October 1, 1993.
ACTION ITEM
----------------------------------------------------- Chapter 7:2.11.1
EPA should implement the Administrator's headquarters enforcement
reorganization proposal.
GAO COMMENTS
----------------------------------------------------- Chapter 7:2.11.2
Insufficient Information. In past reports, we have identified
long-standing enforcement problems within EPA and have examined
alternative enforcement organizations for the agency. However, we
have not made recommendations on preferred options. Also, some means
beyond organizational structure--performance ratings, reporting
mechanisms, or other procedures--will have to be found to ensure
accountability for program results.
IMPLEMENTATION
----------------------------------------------------- Chapter 7:2.11.3
Fully Implemented. In October 1993, the EPA Administrator announced
the reorganization of the agency's Office of Enforcement. The new
office, known as the Office of Enforcement and Compliance Assurance,
consolidates enforcement within one office rather than maintaining an
enforcement component in each program office. Formerly, an
enforcement component was located in each EPA program office.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 7:2.11.4
Environmental Enforcement: Alternative Enforcement Organizations for
EPA (GAO/RCED-92-107, Apr. 14, 1992).
EXECUTIVE OFFICE OF THE PRESIDENT
(EOP)
============================================================ Chapter 8
OVERALL SUMMARY
---------------------------------------------------------- Chapter 8:1
The Office of Management and Budget (OMB) and other parts of the
Executive Office of the President (EOP) have taken some action to
implement all 12 of the recommendations in this section. One
recommendation has been fully implemented, and 6 more have been
partially implemented. In response to EOP01, OMB is attempting,
within its authority, to streamline developing and clearing surveys
as well as encouraging agencies to seek authority to review their
information collection efforts. For EOP02, OMB has begun a process
for reviewing the OMB circulars and the process for modifying
circulars. Regarding EOP04, while OMB removed "anti pass the hat"
language from the budget, the legislation signed into law retained
this language preventing interagency funding for interagency
organizations without prior statutory approval. OMB has redirected
resources to provide better management information by implementing a
major reorganization integrating its management and budget functions
(EOP05). However, it is too soon to determine the effects of this
reorganization on the quality of management information and the
execution of OMB's management mission. OMB has begun implementing
EOP06 via actions such as attempting to increase consultation with
executive agencies in developing the budget.
The Office of the United States Trade Representative (USTR) has
partially implemented recommendations EOP03, EOP07, and EOP08.
Coordination with state and local governments has improved through
USTR's Office of Intergovernmental and Public Liaison. To improve
trade policy coordination, agencies have been added to the Trade
Policy Review Group (TPRG), the interagency committee that
coordinates the making of U.S. trade policy. To improve trade
negotiating skills, a training class was created for USTR staff.
A Customer Service Bureau has been established within the Executive
Office of the President (fully implementing EOP09), the Executive
Office is continuing work on EOP10, internal review of critical
administrative processes, and EOP12, improving administrative
processes. Regarding EOP11, the Office has taken action to provide
guidelines for the presidential transition process, but taken no
action to amend the Presidential Transition Act.
GAO CONTACT
-------------------------------------------------------- Chapter 8:1.1
William M. Hunt, Director, Federal Management Issues, General
Government Division, (202) 512-8676.
RECOMMENDATION INFORMATION
---------------------------------------------------------- Chapter 8:2
EOP01: DELEGATE ROUTINE
PAPERWORK REVIEW TO THE
AGENCIES AND REDEPLOY OMB'S
RESOURCES MORE EFFECTIVELY
-------------------------------------------------------- Chapter 8:2.1
These recommendations outline improvements to streamline the
government's paperwork review process and reduce unnecessary burdens
on agencies.
ACTION ITEMS
------------------------------------------------------ Chapter 8:2.1.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 8:2.1.2
Generally Agree. We agree that OMB could delegate some routine
paperwork reviews to agencies so that its limited resources could be
used more effectively. Reducing OMB's paperwork burden could improve
its ability to provide broad management support to agencies.
However, we need more specific information concerning the standards
and guidelines envisioned for this delegation in order to determine
its overall effect on OMB and the agencies.
IMPLEMENTATION
------------------------------------------------------ Chapter 8:2.1.3
Partially Implemented. Executive Order 12862 requires agencies to
establish outreach efforts to obtain comments from the customers
served by federal agencies. In October 1993, OMB published a
Resource Manual for Customer Surveys. This manual included
information on techniques for developing customer satisfaction
surveys and provisions for a "generic" clearance process to expedite
approval of voluntary surveys under the Paperwork Reduction Act.
Following the process detailed in the Resource Manual on Customer
Surveys, OMB has approved several generic customer survey clearances,
reducing the clearance time for the generic approvals from 12 weeks
to 2 weeks.
The Paperwork Reduction Act requires that OMB review and approve most
information collection requests and surveys of federal agencies so
that the burden of these requests on citizens is minimized. The act
contains a provision that allows OMB to delegate review and approval
authority for information collections to agencies that develop an
independent review unit meeting OMB approval. As part of OMB's
effort to simplify and speed the process of approving agency
information collection requests, on November 5, 1993, the Director of
OMB sent a memorandum to the agencies clarifying OMB's ability to
delegate paperwork review to agencies and describing the requirements
agencies must meet to be granted that delegation. Prior to the NPR
initiative, only one agency, the Federal Reserve Board, had received
the delegation of authority. In response to OMB's memorandum on
delegation, several additional agencies have initiated efforts to
obtain delegations of authority for information collection clearance.
Additionally, OMB is taking steps to simplify and improve the
clearance process by encouraging agencies to collect information
electronically and to use information technology to communicate with
OMB.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 8:2.1.4
Paperwork Reduction: Mixed Effects on Agency Decision Processes and
Data Availability (GAO/PEMD-89-20, Sept. 7, 1989).
Managing the Government: Revised Approach Could Improve OMB's
Effectiveness (GAO/GGD-89-65, May 4, 1989).
EOP02: MODIFY THE OMB
CIRCULAR SYSTEM
-------------------------------------------------------- Chapter 8:2.2
OMB should reinvigorate the process for the review, updating, and
consolidation of management circulars. It should also develop
uniform processes for developing circulars and for obtaining input
during their development.
ACTION ITEMS
------------------------------------------------------ Chapter 8:2.2.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 8:2.2.2
Insufficient Information. While GAO has in the past commented on
specific OMB circulars, we have not reviewed the process for
developing the circulars and thus cannot comment on this
recommendation.
IMPLEMENTATION
------------------------------------------------------ Chapter 8:2.2.3
Not Implemented--Action Taken. OMB has taken initial steps to begin
analysis of the circular system. In March 1993, the OMB Director
initiated a review of OMB circulars, and in August 1994 a list of
circulars selected for intense review was prepared. However, little
progress has been made to improve the process for revising circulars
as yet.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 8:2.2.4
None.
EOP03: STRENGTHEN THE
OFFICE OF U.S. TRADE
REPRESENTATIVE'S
COORDINATION WITH STATE AND
LOCAL GOVERNMENTS
-------------------------------------------------------- Chapter 8:2.3
The Trade Representative's Office should examine the trade policy
needs of state and local governments and work with them on relevant
issues.
ACTION ITEMS
------------------------------------------------------ Chapter 8:2.3.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 8:2.3.2
Agree. We agree with the need for the USTR to work with state and
local trade officials regarding trade policy interests and priorities
in order to identify the most important areas to pursue in reducing
foreign barriers to U.S. exports.
IMPLEMENTATION
------------------------------------------------------ Chapter 8:2.3.3
Partially Implemented. A USTR official told us that the agency has
acted to improve coordination with state and local governments, but
not in response to the NPR recommendation. In January of 1993, 8
months prior to the issuance of the NPR report, USTR created an
Office of the Assistant USTR for Intergovernmental and Public
Liaison. This office, headed by a political appointee, is intended
to provide state and local governments greater access to USTR. In
December 1993, legislation implementing the North American Free Trade
Agreement (NAFTA) was passed. The law requires the President to
consult with the states in order to achieve conformity of state laws
with NAFTA and create a consultation process to address issues
relating to NAFTA that directly affect the states. This office is
responsible for these actions. Proposed legislation to implement the
Uruguay Round of the General Agreement on Tariffs and Trade (GATT)
would require establishment of a similar process.
State and local government organizations we talked to generally
agreed that USTR is accessible and does a good job of informing them
of trade policy issues that affect them. As part of the Uruguay
Round negotiations, USTR consulted with state governments regarding
efforts to expand the GATT government procurement code obligations to
the sub-federal level. Thirty-seven governors agreed to follow code
procedures and open their procurement to foreign suppliers. However,
several organizations said that some recent USTR trade policy
decisions with significant consequences for states were made without
adequate consultation. Also, some of these organizations are
concerned that the three-person liaison office is not adequately
staffed to meet current responsibilities and may be unable to meet
any increased workload resulting from the new GATT regime.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 8:2.3.4
None.
EOP04: IMPROVE FEDERAL
ADVISORY COMMITTEE
MANAGEMENT
-------------------------------------------------------- Chapter 8:2.4
Discontinuing the "anti-pass-the-hat" language annually inserted into
appropriations acts would allow appropriate pooling of executive
resources for certain multiagency projects.
ACTION ITEMS
------------------------------------------------------ Chapter 8:2.4.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 8:2.4.2
Insufficient Information. We generally agree that legislative
barriers should be removed whenever appropriate to facilitate
cross-organizational cooperation. However, elimination of "anti pass
the hat" language would have consequences in addition to the
elimination of barriers to cooperation. Removal of this type of
prohibition would significantly alter Congress' ability to control
the use of appropriated funds. Before removing statutory barriers to
cross-organizational cooperation, their intended purposes should be
weighed against any other consequences.
IMPLEMENTATION
------------------------------------------------------ Chapter 8:2.4.3
Not Implemented--Action Taken. In the fiscal year 1995 budget, the
President proposed the removal of the provision in the annual
Treasury, Postal Service, and General Appropriations Act that
prohibits the funding of interagency organizations without
congressional action. However, Congress included the provision in
the fiscal year 1995 Treasury/Postal appropriation signed on
September 30, 1994.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 8:2.4.4
None.
EOP05: REINVENT OMB'S
MANAGEMENT MISSION
-------------------------------------------------------- Chapter 8:2.5
NPR recommends a series of actions by OMB to redirect resources to
provide better management information for presidential
decisionmaking.
ACTION ITEMS
------------------------------------------------------ Chapter 8:2.5.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 8:2.5.2
Generally Agree. We have long advocated OMB's increased attention to
its management role. OMB's leadership is important for dealing with
difficult issues both within and across the federal sector. In our
1990 testimony, we concluded that having the management and budget
staff work together and establishing a systematic process to evaluate
key management issues could help OMB reach its management leadership
potential. Information on the actions NPR proposes is not yet
available and so we are not able to comment on them.
IMPLEMENTATION
------------------------------------------------------ Chapter 8:2.5.3
Partially Implemented. On March 1, 1994, OMB initiated a major
reorganization of its staff, redirecting how its resources are
focused on agency and cross-cutting issues. However, it is too soon
to determine whether these changes will enable OMB to provide better
management information for presidential decisionmaking. OMB needs to
establish clear goals and specific performance measures in order to
ensure that the reorganization is having the desired effects.
OMB's reorganization incorporated both former management and budget
staff into new Resource Management Offices. It has instituted a new
"program examiner" position, replacing separate budget examiner and
management staff positions. Program examiners are responsible for
all matters pertaining to a specific area, including budget,
legislative, management, financial management, procurement, and
regulatory policymaking issues. OMB intends to broaden the scope of
agency reviews to include management issues as well as governmentwide
initiatives, such as the Government Performance and Results Act and
the Chief Financial Officers Act. A memorandum from the Director of
OMB stated that the reorganization was intended to improve OMB's
ability to oversee agency programs and policies to ensure their
efficiency and effectiveness.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 8:2.5.4
OMB's High Risk Program: Benefits Found but Greater Oversight Needed
(GAO/AFMD-92-63, Aug. 6, 1992).
OMB Management Leadership (GAO/T-GGD-91-1, Oct. 3, 1990).
Managing the Government: Revised Approach Could Improve OMB's
Effectiveness (GAO/GGD-89-65, May 4, 1989).
EOP06: IMPROVE OMB'S
RELATIONSHIP WITH OTHER
AGENCIES
-------------------------------------------------------- Chapter 8:2.6
This recommendation outlines methods by which OMB can work more
effectively with agencies and with states.
ACTION ITEMS
------------------------------------------------------ Chapter 8:2.6.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 8:2.6.2
Generally Agree. We clearly agree with this recommendation that OMB
work with agencies to identify the most important management issues
and the policies needed to address them. Our general management
review of OMB found that the agencies appear to operate best when a
consultative, cooperative approach has been used in addressing
management issues. It is also important for OMB to work effectively
with the states in overseeing the implementation of policies and
programs and assessing their effectiveness and efficiency.
IMPLEMENTATION
------------------------------------------------------ Chapter 8:2.6.3
Not Implemented--Action Taken. Although OMB has taken positive
actions to improve its relationship with other agencies and states,
it is too early to determine whether these actions result in building
more effective working relationships.
On May 31, 1994, OMB's Director and Deputy Director distributed
guidance encouraging OMB staff to establish a dialog between OMB and
the agencies about important issues and policies, share information
and analyses, and work with agencies on management and other
long-range issues. On August 11, 1994, OMB held a meeting with
agency officials to review budget and management issues that would be
addressed in the fall's budget formulation process. According to an
OMB official, this kind of discussion was unprecedented.
OMB's March 1, 1994, reorganization, integrating management and
budget functions, may enhance OMB's ability to examine the impact of
policy initiatives on state and local governments. OMB's Office of
Information and Regulatory Affairs has also taken steps to hold
periodic meetings with state and local government officials to
discuss regulatory issues.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 8:2.6.4
Managing the Government: Revised Approach Could Improve OMB's
Effectiveness (GAO/GGD-89-65, May 4, 1989).
EOP07: STRENGTHEN THE
OFFICE OF THE U.S. TRADE
REPRESENTATIVE'S TRADE
POLICY COORDINATION PROCESS
-------------------------------------------------------- Chapter 8:2.7
These recommendations outline ways to improve the interagency trade
policy coordination process.
ACTION ITEMS
------------------------------------------------------ Chapter 8:2.7.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 8:2.7.2
Generally Agree. We support improved coordination of trade
policymaking among federal international trade agencies. However, we
have not done work to identify which changes to the interagency trade
policymaking process would be most effective in improving this
coordination. In a 1990 report on tobacco export policy, we
suggested that, if Congress intends health issues to receive
consideration in trade negotiations, Congress could specifically
require that the Department of Health and Human Services (HHS)
actively participate in the interagency trade policymaking process.
In a 1993 report, we recommended that the administration evaluate the
usefulness of, and assess the need for, a particular interagency
trade policymaking body, the National Advisory Council on
International Monetary and Financial Policies.
IMPLEMENTATION
------------------------------------------------------ Chapter 8:2.7.3
Partially Implemented. The administration began to take steps to
improve interagency coordination of trade policymaking before the NPR
report was issued. In November 1993, the Environmental Protection
Agency and HHS were formally added to the Trade Policy Review Group
(TPRG), the interagency committee that coordinates the formulation of
U.S. trade policy. Also, the White House's National Economic
Council (NEC), from its inception, has played a role in coordinating
the interagency trade policymaking process. Since issuance of the
NPR report, little additional implementation has occurred.
Additional means by which to implement this recommendation remain
under discussion within the EOP. One area that may require attention
is clarification of the NEC's role in the trade policymaking process.
There appears to be some duplication of effort between the NEC and
the TPRG. Also, agencies have complained that the NEC's operating
procedures are unclear.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 8:2.7.4
Agricultural Loan Guarantees: National Advisory Council's Critical
Views on Loans to Iraq Withheld (GAO/GGD-94-24, Oct. 27, 1993).
Trade and Health Issues: Dichotomy Between U.S. Tobacco Export
Policy and Antismoking Initiatives (GAO/NSIAD-90-190, May 15, 1990).
EOP08: STRENGTHEN THE
OFFICE OF THE U.S. TRADE
REPRESENTATIVE'S NEGOTIATION
PROCESS
-------------------------------------------------------- Chapter 8:2.8
The Office of the USTR should implement various techniques for
upgrading the negotiating skills of its employees and the analysis of
the negotiation process itself.
ACTION ITEMS
------------------------------------------------------ Chapter 8:2.8.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 8:2.8.2
Insufficient Information. We believe that enhancing skills through
training should be an important management concern. However, we have
not done work to identify the specific negotiation training needs of
USTR employees.
IMPLEMENTATION
------------------------------------------------------ Chapter 8:2.8.3
Partially Implemented. A senior USTR official has developed and is
teaching a training course to improve the negotiating skills of USTR
staff. The 5-day course is designed for all USTR staff who are
negotiators or who expect to become negotiators, and consists of
training in negotiating skills, a mock negotiations exercise, and
discussions of "lessons learned" in past USTR negotiations. USTR's
goal is to put every eligible staff member through the course by the
end of 1994. So far about 50 USTR staff have taken the class. Since
June 1994, the course has been open to officials in other federal
agencies.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 8:2.8.4
None.
EOP09: ESTABLISH A CUSTOMER
SERVICE BUREAU IN THE EOP
-------------------------------------------------------- Chapter 8:2.9
Using available resources, EOP management should establish a small,
one-stop customer service bureau within the EOP.
ACTION ITEMS
------------------------------------------------------ Chapter 8:2.9.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
------------------------------------------------------ Chapter 8:2.9.2
Insufficient Information. We have not specifically addressed the
need for an EOP Customer Service Bureau.
IMPLEMENTATION
------------------------------------------------------ Chapter 8:2.9.3
Fully Implemented. On the basis of the recommendations of a working
group, the EOP established a Customer Service Bureau in late 1993 in
the Office of Administration to serve EOP agencies. Two permanent
positions for the bureau were approved in June 1994. The bureau
provides services for EOP agencies in project management, direct
administrative support, and training.
During staff orientation, employees are instructed about the Customer
Service Bureau. A workshop series presented a seminar on the
Customer Service Bureau in March 1994. Further, the Assistant
Director in the Office of Administration conducted meetings for staff
to discuss issues related to customer services. In addition, the
Office produced a tabbed telephone book highlighting customer service
and direct lines to commonly used services.
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 8:2.9.4
None.
EOP10: CONDUCT QUALITATIVE
SELF-REVIEWS OF CRITICAL
ADMINISTRATIVE PROCESSES
------------------------------------------------------- Chapter 8:2.10
The Assistant to the President for Management and Administration
should establish a formal program of ongoing, internal quality
reviews of administrative processes in the EOP to save money and
improve service.
ACTION ITEMS
----------------------------------------------------- Chapter 8:2.10.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 8:2.10.2
Insufficient Information. We agree with the need for continual
assessments of administrative processes to improve service at less
cost. However, we have not addressed this issue specifically in the
EOP.
IMPLEMENTATION
----------------------------------------------------- Chapter 8:2.10.3
Not Implemented--Action Taken. The EOP entered into a new initiative
to review the Office of Administration's Directives. The EOP
directors submitted recommended changes to the directives during the
spring of 1994. As of September 1994, the Office of General Counsel
had not conducted its review of the directives to determine the
revisions that can be made.
The EOP also routinely conducts two series of reviews to monitor
financial operations. The Financial Management Division periodically
assesses high-risk areas to prevent occurrence of material weaknesses
in agencies for whom the EOP provides financial services. Annually,
the EOP performs independent reviews and prepares reports under the
Financial Integrity Act.
In addition, the Office of Administration has established special
programs to develop staff capabilities to enhance customer services
operations. On the basis of a working group's recommendations to
improve customer services, the EOP instituted a series of seminars,
workshops, and meetings during fiscal year 1994 to improve staff
communication and teamwork.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 8:2.10.4
Continuous Improvement: The Quality Challenge (GAO/QMG-93-1, Mar.
1993).
EOP11: IMPROVE THE
PRESIDENTIAL TRANSITION
PROCESS
------------------------------------------------------- Chapter 8:2.11
Past difficulties with the presidential transition should be
corrected by amendment of the Presidential Transition Act and related
actions.
ACTION ITEMS
----------------------------------------------------- Chapter 8:2.11.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 8:2.11.2
Generally Agree. We have not looked at this process since 1988. Our
past reviews of presidential transitions have recommended that
Congress may wish to consider amendments to the Presidential
Transition Act to provide for increased guidance on the use of and
accountability for funds.
IMPLEMENTATION
----------------------------------------------------- Chapter 8:2.11.3
Not Implemented--Action Taken. No action has been initiated to amend
the Presidential Transition Act. However, OMB's Financial Management
Division coordinated the preparation of several volumes for use as a
transition guide. The guide describes the tasks and formulates the
issues of significance to a new administration.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 8:2.11.4
Presidential Transitions Effectiveness Act of 1988--H.R. 3932
(GAO/T-GGD-88-19, Mar. 16, 1988).
EOP12: IMPROVE
ADMINISTRATIVE PROCESSES
------------------------------------------------------- Chapter 8:2.12
This recommendation outlines a series of steps to improve internal
administrative processes within the EOP, including mail processing,
paperwork flow, and supply management.
ACTION ITEMS
----------------------------------------------------- Chapter 8:2.12.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 8:2.12.2
Insufficient Information. We advocate the use of new technologies to
streamline operations and improve service to the public. We have not
assessed the need for improvements in mail processing, paperwork
flow, and supply management at the EOP. However, our recent work at
the White House indicates that improvements in personnel and
procurement processes warranted attention to ensure that appropriate
procurement practices are followed in a timely manner, and that
personnel actions are processed accurately and promptly to avoid
unnecessary retroactive corrections.
IMPLEMENTATION
----------------------------------------------------- Chapter 8:2.12.3
Partially Implemented. These activities by nature are ongoing, with
no fixed completion date. The Office has upgraded technical
operations in the supply system, the publishing branch, the financial
management system, and the library system. These systems will
require some assessment annually as part of the 5-year planning
process for information technology under OMB Circular A-130.
In addition, the Administrative Operations group formed a quality
management team to develop improvements in processes. The Office
reports that the team has refined staff scheduling and reduced
overtime. This team gives staff the opportunity to continue to
generate better methods for performing their work.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 8:2.12.4
Personnel Practices: Retroactive Appointments and Pay Adjustments in
the Executive Office of the President (GAO/T-GGD-94-32, Oct. 22,
1993).
Personnel Practices: Retroactive Appointments and Pay Adjustments in
the Executive Office of the President (GAO/GGD-93-148, Sept. 9,
1993).
White House: Acquisition of Automated Resume Processing System
(GAO/GGD-93-117, June 17, 1993).
FEDERAL EMERGENCY MANAGEMENT
AGENCY (FEMA)
============================================================ Chapter 9
OVERALL SUMMARY
---------------------------------------------------------- Chapter 9:1
FEMA has not fully implemented any of the four NPR recommendations
but has made substantial progress toward these goals. To shift its
emphasis to preparing for and responding to the consequences of all
disasters, the agency is reorganizing its resources into an
all-hazards functional structure (FEMA01). It is developing a more
anticipatory and customer-driven response to catastrophic disasters
by improving its ability to deploy resources to disaster areas
(FEMA02). To help reduce the total cost of disasters and minimize
the federal costs of disaster assistance, FEMA is developing a
National Mitigation Strategy and is working with Congress on
legislative initiatives designed to reduce these costs. FEMA has
also agreed to give the states greater flexibility and discretion in
using the funds that FEMA makes available to them. This flexibility
should allow states to focus funding to meet their highest-risk
requirements (FEMA03). Finally, the current FEMA Director has taken
steps to develop a skilled management team by reorganizing the agency
and appointing a higher percentage of executive leaders with direct
emergency management experience (FEMA04).
Through our work on federal disaster assistance, we have identified
several issues that the NPR recommendations did not address. For
example, federally backed flood insurance policies are still being
underwritten for some properties located on coastal barriers even
though this practice is contrary to the Coastal Barrier Resources Act
of 1982, which was enacted to discourage development on selected
coastal barriers. In addition, the federal crop insurance and
disaster assistance programs have not been integrated. We have
recommended that, for substantial savings, these programs be
considered together as risk-reduction alternatives subject to the
same decision-making process as the budget. Finally, FEMA has not
clarified its regulations to specify how much and under what
conditions it will pay to restore historic structures. In 1992, we
noted that differences in interpretations of FEMA's regulations on
restoring historic structures had contributed to disputes during the
recovery from the Loma Prieta earthquake, which occurred in October
1989.
GAO CONTACT
-------------------------------------------------------- Chapter 9:1.1
Judy England-Joseph, Director, Housing and Community Development
Issues, Resources, Community, and Economic Development Division,
(202) 512-7631.
RECOMMENDATION INFORMATION
---------------------------------------------------------- Chapter 9:2
FEMA01: SHIFT EMPHASIS TO
PREPARING FOR AND RESPONDING
TO THE CONSEQUENCES OF ALL
DISASTERS
-------------------------------------------------------- Chapter 9:2.1
FEMA's early focus was on preparedness for nuclear war. The current
world situation and recent natural disasters highlight the need for
FEMA to continue to shift its resources to respond to all hazards.
ACTION ITEMS
------------------------------------------------------ Chapter 9:2.1.1
1. FEMA should continue to shift emphasis to preparation for and
response to the consequences of all disasters.
2. The Director of FEMA should 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.
3. FEMA should sharply reduce the number of security clearances.
GAO COMMENTS
------------------------------------------------------ Chapter 9:2.1.2
Agree. We support a shift in FEMA's program emphasis to a more
all-hazards approach. For example, many of the assets and
capabilities previously held for military contingencies in FEMA's
former National Preparedness Directorate have been found to be very
useful in other hazards, such as natural disasters. Similarly,
affording state and local governments greater flexibility in the use
of resources provided under authority of the Civil Defense Act can
also enhance states' and localities' overall ability to respond to
different types of emergencies.
IMPLEMENTATION
------------------------------------------------------ Chapter 9:2.1.3
Partially Implemented. FEMA has implemented the first two of the
three action items under this recommendation. Specifically, the
agency has been reorganized so that all directorates now have an
all-hazards mission that includes mitigation, preparedness, and
response and recovery (action item 1). In addition, National
Security assets are now available for use in all types of disasters.
FEMA also completed a study of its national security emergency
mobilization programs and reassigned staff on the basis of the
study's findings. In addition, FEMA established a National Security
Steering Group to coordinate intra-agency and interagency national
security functions, and it named a National Security Coordinator to
serve as a single point of contact to manage the integration of the
agency's national security programs (action item 2). Finally, FEMA
is reviewing all of its positions to determine the need for security
clearances but has not yet reduced the number of such clearances.
(action item 3).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 9:2.1.4
Disaster Management: Improving the Nation's Response to Catastrophic
Disasters (GAO/RCED-93-186, July 23, 1993).
Disaster Assistance: DOD's Support for Hurricanes Andrew and Iniki
and Typhoon Omar (GAO/NSIAD-93-180, June 18, 1993).
Housing and Community Development Issues (GAO/OCG-93-22TR, Dec.
1992).
Disaster Assistance: Federal, State, and Local Response to Natural
Disasters Need Improvement (GAO/RCED-91-43, Mar. 6, 1991).
FEMA02: DEVELOP A MORE
ANTICIPATORY AND
CUSTOMER-DRIVEN RESPONSE TO
CATASTROPHIC DISASTERS
-------------------------------------------------------- Chapter 9:2.2
These recommendations should make FEMA respond faster and more
effectively to catastrophic disasters.
ACTION ITEMS
------------------------------------------------------ Chapter 9:2.2.1
1. Where cost-effective, FEMA should establish rapid-response teams
to monitor catastrophes, assess damage, and advise governors and the
President.
2. Where cost-effective, FEMA should mobilize and preposition people
and supplies in anticipation of catastrophes.
3. FEMA should reexamine its field structure in relation to the
Agency's mission.
4. FEMA should establish regional centers of excellence.
GAO COMMENTS
------------------------------------------------------ Chapter 9:2.2.2
Agree. We support a quicker and more proactive federal response to
meet the health and safety needs of victims when disasters are of
such magnitude that the local infrastructure clearly cannot meet all
the needs. While FEMA and the federal government have a role in the
initial response to many presidentially declared disasters, the
victims' immediate needs can generally be met with state, local, and
volunteer resources. Unlike the bulk of disasters, catastrophic
disasters overwhelm the ability of state, local, and voluntary
agencies to adequately provide victims with essential services within
12 to 24 hours. FEMA needs a disaster unit whose primary mission is
planning for and responding to catastrophic disasters. Among other
things, the units should estimate the extent of damage and relief
needs immediately following a disaster, then advise state and local
officials of federal resources available to address these needs as
well as the extent to which DOD resources will be needed to
supplement Red Cross resources in meeting needs for mass care. FEMA
should also enhance the capacity of state and local governments to
respond to such disasters by upgrading training and exercises in
anticipation of catastrophic disaster and monitoring the states' and
localities' preparedness.
IMPLEMENTATION
------------------------------------------------------ Chapter 9:2.2.3
Not Implemented--Action Taken. FEMA has taken action regarding all
the action items, but none has been implemented. For example, FEMA
is developing a situation assessment capability to facilitate its
response to disasters. This capability includes aerial
reconnaissance assets, predictive modeling assets, and field
assessment teams (action item 1). FEMA has also identified initial
response resources, consisting of three national Emergency Response
Teams, that the agency can deploy before a disaster occurs if advance
warning is available. FEMA has developed the first element of, and
is currently designing the remainder of, a deployable, on-site
Disaster Field Office training team, which the agency plans to use to
train FEMA employees as needed when disasters strike (action item 2).
As requested by Congress, FEMA is studying its regional structure to
ensure that its operations are risk-based and efficient. A report of
this study is scheduled to be issued in the future (action item 3).
Finally, FEMA believes regional centers of excellence may be
established as an outcome of this study (action item 4).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 9:2.2.4
Disaster Management: Improving the Nation's Response to Catastrophic
Disasters (GAO/RCED-93-186, July 23, 1993).
Disaster Assistance: DOD's Support for Hurricanes Andrew and Iniki
and Typhoon Omar (GAO/NSIAD-93-180, June 18, 1993).
Housing and Community Development Issues (GAO/OCG-93-22TR, Dec.
1992).
Disaster Assistance: Federal, State, and Local Response to Natural
Disasters Need Improvement (GAO/RCED-91-43, Mar. 6, 1991).
FEMA03: CREATE
RESULTS-ORIENTED INCENTIVES
TO REDUCE THE COSTS OF A
DISASTER
-------------------------------------------------------- Chapter 9:2.3
The Midwest floods, Hurricanes Hugo and Andrew, and the Loma Prieta
earthquake all illustrate the enormous costs of disaster to society.
These recommendations will move toward reducing those costs.
ACTION ITEMS
------------------------------------------------------ Chapter 9:2.3.1
1. FEMA should develop objective criteria for declaring emergencies
and major disasters.
2. FEMA should enforce existing flood insurance requirements
applicable to people living in high-risk areas.
3. The administration and Congress should explore incentives to
expand insurance coverage against natural hazards and increase
mitigation.
4. Grants for mitigation and preparedness should fund preparedness
for the greatest risks.
5. FEMA should propose comprehensive federal policies that reduce
the total cost of disasters and minimize federal costs of disaster
assistance.
GAO COMMENTS
------------------------------------------------------ Chapter 9:2.3.2
Insufficient Information. Creating results-oriented incentives to
reduce the costs of disasters should be explored. The cost of
federal disaster response and recovery assistance has increased
dramatically in recent years. However, there are many possible
causes for this increase, as well as many possible solutions. We
have not reviewed these issues in sufficient depth to take a formal
position.
IMPLEMENTATION
------------------------------------------------------ Chapter 9:2.3.3
Not Implemented--Action Taken. FEMA has taken some action to
implement this recommendation. An agency task force has considered
statutory revisions designed to improve and establish objective
criteria for declaring disasters and adjusting cost-shares (action
item 1).
FEMA is designing a program to increase the number of flood insurance
policies by 20 percent by October 1, 1996. The agency supports the
lender compliance provisions of national flood insurance reform
legislation, such as S. 1275, entitled the Community Development,
Banking, and Financial Institutions Act of 1993 (action item 2).
FEMA supports legislative initiatives that are designed to reduce the
costs of disasters (S. 1350 and H.R. 2873, both entitled the
Natural Disaster Protection Act of 1993). This proposed legislation
is also designed to expand insurance coverage and increase mitigation
(action item 3).
Beginning in fiscal year 1995, FEMA plans to give the states greater
flexibility and discretion in using the funds available to them
through the Comprehensive Cooperative Agreement. According to FEMA,
this increased flexibility will allow the states to focus funding to
meet their highest-risk requirements (action item 4).
FEMA has also begun to develop a National Mitigation Strategy to help
reduce the total cost of disasters and minimize the federal costs of
disaster assistance (action item 5).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 9:2.3.4
None.
FEMA04: DEVELOP A SKILLED
MANAGEMENT TEAM AMONG
POLITICAL APPOINTEES AND
CAREER STAFF
-------------------------------------------------------- Chapter 9:2.4
Leadership has been the weak link in FEMA's mission as the federal
government's emergency management coordinator. These recommendations
strive to improve FEMA's leadership to successfully implement its new
all-hazards mission.
ACTION ITEMS
------------------------------------------------------ Chapter 9:2.4.1
1. Through organizational restructuring and reordering of
priorities, all agency directorates should be responsible to the
Director for fulfilling the primary agency mission of disaster
response.
2. The Director of FEMA should select and develop capable and
cohesive executive leaders for the agency.
3. The Director of FEMA should institute a staff career development
program.
GAO COMMENTS
------------------------------------------------------ Chapter 9:2.4.2
Generally Agree. FEMA has a large number of political appointees
relative to its size. FEMA's mission of disaster relief demands a
uniquely strong management team with considerable professional
experience to deal effectively with other federal agencies, state and
local emergency managers, and volunteer organizations. Given the
need for a high level of professionalism and experience, a reduction
in the number of political appointees in key positions could be an
important element in developing an effective management team.
IMPLEMENTATION
------------------------------------------------------ Chapter 9:2.4.3
Partially Implemented. All FEMA directorates now report to the FEMA
Director, following an overall agency reorganization (action item 1).
The current Director has made an effort to appoint executive leaders
with emergency management skills. For example, the Director
appointed experienced FEMA employees to head two of the directorates
and fill the Chief of Staff position. As a result, the percentage of
political appointees/noncareer senior executive service employees
with direct emergency management experience is higher now than in
previous years (action item 2). The Director has also identified a
need to develop a management training program for all managers and
has requested a 200-percent increase in fiscal year 1995 funds for
employee development (action item 3).
RELATED GAO PRODUCTS
------------------------------------------------------ Chapter 9:2.4.4
None.
DEPARTMENT OF HEALTH AND HUMAN
SERVICES (HHS)
=========================================================== Chapter 10
OVERALL SUMMARY
--------------------------------------------------------- Chapter 10:1
Action has been taken on 12 of the 14 recommendations related to the
Department of Health and Human Services (HHS), but none of these
recommendations has been fully or partially implemented. Legislation
was introduced and is pending for eight of these. No action was
taken on the remaining two recommendations to (1) develop a national,
uniform inspection system to ensure a safe food supply and (2)
restructure the management of railroad industry benefit programs. An
NPR spokesperson said that the administration has not placed a high
priority on these two recommendations at this point in time as agency
actions or actions pending on other recommendations may indirectly
address them.
GAO CONTACT
------------------------------------------------------- Chapter 10:1.1
Jane L. Ross, Director, Income Security Issues, Health, Education,
and Human Services Division, (202) 512-7215.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 10:2
HHS01: PROMOTE EFFECTIVE,
INTEGRATED SERVICE DELIVERY
FOR CUSTOMERS BY INCREASING
COLLABORATIVE EFFORTS
------------------------------------------------------- Chapter 10:2.1
These recommendations outline a number of steps needed to better
integrate and deliver social services to communities and families.
ACTION ITEMS
----------------------------------------------------- Chapter 10:2.1.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 10:2.1.2
Agree. We have conducted several evaluations which have pointed out
the need to promote effective, integrated service delivery. For
example, our work at the Administration on Aging (AOA) identified
that more could be done to improve the long-standing problem of
fragmented services for the elderly. Further, during our work on
transportation for the elderly at AOA and the Department of
Transportation (DOT), we found a persistent need to improve service
coordination and collaboration between HHS and DOT. In both of these
reviews, we recommended actions that would promote better service
integration, reduce service fragmentation, and increase the
dissemination of information. HHS has acted on all of these
recommendations, but needs to remain vigilant in ensuring that their
efforts in these areas continue.
In addition, in examining school-linked human services, we found that
these services appear to be a promising short-term strategy for
aiding children with problems that distract them from their studies
and put them at risk of dropping out of school. Such services also
appear to have the potential to support at-risk children after they
complete preschool programs such as Head Start. We found a dearth of
short-term impact evaluations of these services, however, as well as
a lack of evaluation of long-term impact. This makes it very
difficult to compare such services to alternatives. We recommended
that the Secretaries of HHS and Education develop an approach for
evaluating short and long-term impacts of several school-linked
programs to provide states and localities with better information
about the impact of school-linked services.
IMPLEMENTATION
----------------------------------------------------- Chapter 10:2.1.3
Not Implemented--Action Taken. HHS has established a work group on
Customer Service and Service Integration. The agency announced
customer service standards for direct customers, such as Medicare
recipients and Indian Health Service recipients, in September 1994.
Standards were also developed for HHS's indirect customers or
grantees such as states, local governments, and private agencies.
HHS has not yet developed a comprehensive strategy to promote service
integration. The work group has developed some draft plans and pilot
projects for service integration. This work is farther along in
programs for children and families than in programs for the elderly
and disabled. Forecast completion is December 31, 1999.
In addition, legislation was passed addressing this recommendation.
Public Law 103-227, "Goals 2000: Educate America Act," requires
several actions to improve the coordination of Department of
Education and Department of Health and Human Services programs at the
federal and local levels. Title VII, the Safe Schools Act of 1994,
requires that Education programs and activities under Title XII be
coordinated with health, social services, juvenile justice, and other
services. Title IX, the Educational Research and Improvement Act of
1994, requires promotion of coordination on research and development
issues between the Department of Education and HHS' Administration
for Children and Families, the National Institutes of Health, and
other agencies. As part of national education dissemination, Title
IX also establishes programs to promote the development of an
integrated system of service delivery to children from birth through
age 18 and their families by facilitating linkages and cooperation
among a variety of services, including health and social services,
child care, Head Start, and other early childhood agencies that
receive HHS funds.
Further legislation has been proposed. H.R. 820, "National
Competitiveness Act of 1994," Title XI, the Local Empowerment and
Flexibility Act of 1994, would specify that local governments and
private, nonprofit agencies be enabled to integrate programs and
program funds across existing federal assistance categories to better
meet local social service needs. "Local flexibility plans" would be
approved by a federal "Community Enterprise Board" composed of the
Vice President and various federal agency representatives, including
HHS. The local flexibility plans would allow for greater local
flexibility to accomplish social service objectives rather than
exclusively emphasizing the measurement of resources used and process
to determine a program's effectiveness. Title VI, the Information
Technology Applications Act of 1994, would also require federal
efforts to identify and develop high-speed computer networking to
"improve the provision of health care, including furnishing health
care providers and their patients with better, more accurate, and
more timely information" and "by improving coordination of federal
efforts to deploy these technologies in cooperation with the private
sector as part of an advanced national information infrastructure."
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 10:2.1.4
Long-Term Care Reform: States' Views on Key Elements of
Well-Designed Programs for the Elderly (GAO/HEHS-94-227, Sept. 6,
1994).
Medicaid Long-Term Care: Successful State Efforts to Expand Home
Services While Limiting Costs (GAO/HEHS-94-167, Aug. 11, 1994).
Health Care Reform: School-Based Health Centers Can Promote Access
to Care (GAO/HEHS-94-166, May 13, 1994).
School-Linked Human Services: A Comprehensive Strategy for Aiding
Students at Risk of School Failure (GAO/HRD-94-21, Dec. 30, 1993).
Long-Term Care Forum (GAO/HRD-93-1-SP, July 13-14, 1993).
Long-Term Care Case Management: State Experiences and Implications
for Federal Policy (GAO/HRD-93-52, Apr. 6, 1993).
Social Security: Need for Better Coordination of Food Stamp Services
for Social Security Clients (GAO/HRD-92-92, Sept. 25, 1992).
Integrating Human Services: Linking At-Risk Families with Services
More Successful Than System Reform Efforts (GAO/HRD-92-108, Sept.
24, 1992).
Services for the Elderly: Long-Standing Transportation Problems Need
More Federal Attention (GAO/HRD-91-117, Aug. 29, 1992).
Welfare Programs: Ineffective Federal Oversight Permits Costly
Automated System Problems (GAO/IMTEC-92-29, May 27, 1992).
Administration on Aging: More Federal Action Needed to Promote
Service Coordination for the Elderly (GAO/HRD-91-45, Apr. 23, 1991).
HHS02: REENGINEER THE HHS
PROCESS FOR ISSUING
REGULATIONS
------------------------------------------------------- Chapter 10:2.2
HHS should improve the timeliness and quality of regulations issued
and should involve stakeholders in the development of regulations.
ACTION ITEMS
----------------------------------------------------- Chapter 10:2.2.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 10:2.2.2
Agree. On the basis of our work at the Food and Drug Administration
(FDA), we agree that HHS needs to improve the timeliness of
regulations. We recommended the development of a single FDA tracking
system to improve management oversight of the process. FDA agreed
and is currently implementing that recommendation. Our work,
however, did not analyze the quality of regulations or the degree of
participation of affected interests.
We discussed problems in the regulatory process in our management
review work at the Social Security Administration (SSA) in 1987 and
in followup work in 1989. SSA took a variety of actions to address
problems caused by its procedures. We have done no further work to
evaluate the effectiveness of changes made by SSA. In addition,
other problems in the regulatory process over which SSA has limited
control--complexity of issues and short effective dates in the
law--remain a problem in regulatory development.
IMPLEMENTATION
----------------------------------------------------- Chapter 10:2.2.3
Not Implemented--Action Taken. The HHS Continuous Improvement
Workgroup is developing an implementation plan involving designating
a regulatory czar, setting a regulatory agenda and a streamlined
process, experimenting with negotiated rulemaking through a
reinvention laboratory at the Health Care Financing Administration
(HCFA), and obtaining input from states and other interested parties
on ways to increase consultation. The plan is expected to be
finalized by December 31, 1994. The Chief of Staff has been
appointed Regulations Officer for the department. HHS has requested
an OMB analyst be assigned as a liaison for HHS regulatory review and
is waiting for an OMB decision. OMB has delegated some of its
rulemaking authority to HHS.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 10:2.2.4
FDA Regulations: Sustained Management Attention Needed to Improve
Timely Issuance (GAO/HRD-92-35, Feb. 21, 1992).
Management of HHS: Using the Office of the Secretary to Enhance
Departmental Effectiveness (GAO/HRD-90-54, Feb. 9, 1990).
Social Security: Status and Evaluation of Agency Management
Improvement Initiatives (GAO/HRD-89-42, July 24, 1989).
HHS03: DEVELOP A NATIONAL,
UNIFORM INSPECTION SYSTEM TO
ENSURE A SAFE FOOD SUPPLY
------------------------------------------------------- Chapter 10:2.3
Responsibility for food safety should be consolidated into a single
agency, and policies and inspection systems should be implemented on
an objective, scientific basis.
ACTION ITEMS
----------------------------------------------------- Chapter 10:2.3.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 10:2.3.2
Agree. In May 1994, we testified that an independent federal food
safety agency would be the preferred approach. However, we
recognized that many problems are associated with setting up such an
agency. On the other hand, we also testified on the various problems
associated with consolidating food safety activities under either the
Food and Drug Administration or the U.S. Department of Agriculture.
IMPLEMENTATION
----------------------------------------------------- Chapter 10:2.3.3
Not Implemented--No Action Taken. According to HHS and NPR
officials, the responsibility for this recommendation has been moved
from HHS and given to the Executive Office of the President. Because
of the numerous federal agencies (e.g., USDA, EPA, and HHS) currently
involved in food inspections, HHS felt that the decision on how to
structure a single food safety agency should be made at a higher
level. NPR officials agreed and also reported that no action has
been taken on this issue.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 10:2.3.4
Food Safety: A Unified, Risk-Based Food Safety System Needed
(GAO/T-RCED-94-223, May 25, 1994).
Food Safety: A Unified Risk-Based System Needed to Enhance Food
Safety (GAO/T-RCED-94-71, Nov. 4, 1993).
Food Safety and Quality: Uniform, Risk-Based Inspection System
Needed to Ensure Safe Food Supply (GAO/RCED-92-152, June 26, 1992).
Food Safety and Quality: Who Does What in the Federal Government
(GAO/RCED-91-19A and 19B, Dec. 21, 1990).
HHS04: RECONFIGURE SUPPORT
FOR HEALTH PROFESSIONS
EDUCATION
------------------------------------------------------- Chapter 10:2.4
Existing programs should be consolidated and/or eliminated.
ACTION ITEMS
----------------------------------------------------- Chapter 10:2.4.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 10:2.4.2
Generally Agree. Our evaluations have not shown that the grant
programs for medical education under Titles VII and VIII of the
Public Health Service Act had a significant effect on the supply,
distribution, or minority representation of health professions. If
Congress chooses to use Title VII and VIII programs to improve
supply, distribution, and minority representation of health
professionals, it needs to better assure that the programs are
properly structured and that funds are used for these purposes.
Congress will need to ensure that there are specific program goals,
common outcome measures and reporting requirements for each goal,
restrictions limiting the use of funds to activities whose results
can be measured and reported against these goals, and criteria for
allocating funding among professions to meet these goals.
IMPLEMENTATION
----------------------------------------------------- Chapter 10:2.4.3
Not Implemented--Action Taken. According to HHS officials, action on
this recommendation will be driven by whatever health reform
legislation passes. The administration's Health Security Act
proposes funding issues for grant programs that will focus more on
primary care. While legislation is being debated, HHS has proposed
in its fiscal year 1995 budget requests to consolidate multiple
training programs. HHS has proposed legislation to consolidate nurse
training programs this year, followed next year by legislative
proposals to consolidate the remaining training programs, including
primary care physicians.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 10:2.4.4
Health Professions Education: Role of Title VII/VIII Programs in
Improving Access to Care is Unclear (GAO/HEHS-94-164, July 8, 1994).
Medicare: Graduate Medical Education Payment Policy Needs to be
Reexamined (GAO/HEHS 94-33, May 4, 1994).
HHS05: RESTRUCTURE THE
MANAGEMENT OF RAILROAD
INDUSTRY BENEFIT PROGRAMS
------------------------------------------------------- Chapter 10:2.5
Railroad Retirement Board functions should be integrated into
existing programs administered by federal, state, and private sector
service providers.
ACTION ITEMS
----------------------------------------------------- Chapter 10:2.5.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 10:2.5.2
Generally Agree. On the basis of our work in the area of railroad
retirement benefits, we believe this recommendation has some merit.
We believe that the social security equivalent portion of railroad
retirement benefits should be transferred. Such a transfer would
result in uniformity in the benefits being provided (presently
benefits are not paid to dependent children under the rail program).
Further, the private rail portion of railroad retirement benefits is
not funded as are other private industry pensions and is not under
the Employee Retirement Income Security Act of 1994, and rail workers
are at risk because of a large unfunded actuarial liability that has
resulted in federal "bailouts" during past periods of financial
crisis. Finally, the rail unemployment insurance program has
experienced financial problems in the past. This program is more
liberal and subject to abuse than state programs, and it results in a
duplication of an existing unemployment apparatus.
IMPLEMENTATION
----------------------------------------------------- Chapter 10:2.5.3
Not Implemented--No Action Taken. NPR has deferred indefinitely its
recommendation to restructure the management of railroad industry
benefits programs. However, the Railroad Retirement Board is making
some improvements in internal processing to better service
beneficiaries.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 10:2.5.4
Railroad Retirement: Future Rail Employment and Trust Fund Solvency
(GAO/HRD-89-30, Apr. 5, 1989).
Railroad Retirement: Federal Financial Involvement (GAO/HRD-86-88,
May 9, 1986).
HHS06: IMPROVE SOCIAL
SECURITY ADMINISTRATION
DISABILITY CLAIMS PROCESSING
TO BETTER SERVE PEOPLE WITH
DISABILITIES AND SAFEGUARD
TRUST FUND ASSETS
------------------------------------------------------- Chapter 10:2.6
SSA should apply resources and management tools needed to reduce
backlogs and to avoid paying benefits to individuals who are no
longer disabled.
ACTION ITEMS
----------------------------------------------------- Chapter 10:2.6.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 10:2.6.2
Agree. In our view, the administration of SSA's disability programs
has reached a crisis stage. Service is poor and billions of dollars
in payments to ineligible individuals will be wasted if mandated
continuing disability reviews are not resumed. SSA's short-term
efforts to reduce the number of pending claims have been largely
unsuccessful. Further, long-range SSA plans are uncertain about when
and to what extent service will improve. However, SSA has begun a
major reengineering effort to improve disability claims processing
and staff productivity.
IMPLEMENTATION
----------------------------------------------------- Chapter 10:2.6.3
Not Implemented--Action Taken. Legislative proposals--the Government
Reform and Savings Act of 1993 (H.R. 3400) and the Government
Downsizing, Performance, and Accountability Act of 1994 (S.
1843)--were considered that would have improved the continuing
disability review process by establishing minimum funding levels for
such reviews. While H.R. 3400 passed the House in November 1993, no
action has been taken on S. 1843.
On March 31, 1994, SSA disseminated a reengineering proposal for
improving its disability programs. On June 30, a revised proposal
was sent to the Commissioner of SSA for a decision and the proposal
was approved in September 1994. In addition, SSA is developing a
legislative proposal to establish a trust fund self-financing account
to pay for continuing disability reviews. SSA is also continuing to
develop its modernized disability claims processing system.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 10:2.6.4
Social Security: New Continuing Disability Review Process Could Be
Enhanced (GAO/HEHS-94-118, June 27, 1994).
Social Security: Major Changes Needed for Disability Benefits for
Addicts (GAO/HEHS-94-128, May 13, 1994).
Social Security: Increasing Number of Disability Claims and
Deteriorating Service (GAO/HRD-94-11, Nov. 10, 1993).
Social Security Disability: SSA Needs to Improve Continuing
Disability Review Program (GAO/HRD-93-109, July 8, 1993).
Social Security: Rising Disability Rolls Raise Questions That Must
Be Answered (GAO/T-HRD-93-15, Apr. 22, 1993).
Social Security: SSA Needs to Improve Service for Program
Participants (GAO/T-HRD-93-11, Mar. 25, 1993).
Social Security Disability: Growing Funding and Administrative
Problems (GAO/T-HRD-92-28, Apr. 27, 1992).
ADP Systems: SSA Efforts in Implementing Its Field Office
Modernization (GAO/IMTEC-89-45, May 17, 1989).
HHS07: PROTECT SOCIAL
SECURITY, DISABILITY AND
MEDICARE TRUST FUND ASSETS
BY REMOVING BARRIERS TO
FUNDING PRODUCTIVE OVERSIGHT
ACTIVITIES
------------------------------------------------------- Chapter 10:2.7
HHS should aggressively pursue options to ensure that adequate
investments are made to avoid unnecessary payments from trust funds.
ACTION ITEMS
----------------------------------------------------- Chapter 10:2.7.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 10:2.7.2
Agree. We strongly advocate these types of actions. Over the past
several years, we have issued reports and testimonies discussing
Medicare's declining investment in program safeguard efforts and
concluded that funding declines contributed to hundreds of millions
of dollars in program losses. We recommended that Congress consider
modifying budget procedures so that Medicare safeguard funding could
be increased without having to cut spending elsewhere. Under the
Budget Enforcement Act of 1990, Congress provided for increasing
appropriations for Internal Revenue Service (IRS) compliance
activities without necessitating spending cuts elsewhere. We believe
using IRS' method of funding compliance activities as a model for
Medicare would better enable Congress to appropriate the funding
needed for Medicare's safeguard activities. Congress enacted our
recommendation in 1992, but the bill was vetoed by the President for
other reasons.
IMPLEMENTATION
----------------------------------------------------- Chapter 10:2.7.3
Not Implemented--Action Taken. H.R. 3400, which passed the House in
November 1993, proposed additional funding for Social Security
safeguards dedicated to processing Continuing Disability Reviews.
These reviews periodically assess the continuing eligibility for
those receiving Social Security benefits. NPR's recommendation
pertaining to SSA's disability claims processing (HHS06) provides
further discussion on SSA payment safeguards. According to HHS
officials, OMB believes fiscal year 1995 funding for Medicare program
safeguards are appropriate. The Health Care Financing Administration
(HCFA) continues to give safeguard activities priority and attempts
to develop innovative approaches to ensure effective oversight.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 10:2.7.4
Medicare: HCFA's Contracting Authority for Processing Medicare
Claims (GAO/HEHS-94-171, Aug. 2, 1994).
Social Security: New Continuing Disability Review Process Could Be
Enhanced (GAO/HEHS-94-118, June 27, 1994).
Medicare: Inadequate Review of Claims Payments Limits Ability to
Control Spending (GAO/HEHS-94-42, Apr. 28, 1994).
Medicare: Greater Investment in Claims Review Would Save Millions
(GAO/HEHS-94-35, Mar. 2, 1994).
Medicare: Adequate Funding and Better Oversight Needed to Protect
Benefit Dollars (GAO/T-HRD-94-59, Nov. 12, 1993).
Social Security: Reporting and Processing of Death Information
Should Be Improved (GAO/HRD-92-88, Sept. 4, 1992).
Health Insurance: Vulnerable Payers Lose Billions to Fraud and Abuse
(GAO/HRD-92-69, May 7, 1992).
HHS08: COORDINATE
COLLECTION AND DISSEMINATION
OF SOCIAL SECURITY
ADMINISTRATION DEATH
INFORMATION TO PROTECT
FEDERAL PROGRAM ASSETS
------------------------------------------------------- Chapter 10:2.8
SSA's clearinghouse for death information and "best practices" can be
used by dozens of federal and state agencies to reduce federal
program outlays.
ACTION ITEMS
----------------------------------------------------- Chapter 10:2.8.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 10:2.8.2
Agree. We agree that SSA should be the clearinghouse for federal
death information. It is the primary collection point for notices of
death coming from family members and friends of deceased individuals,
as well as a recipient of death reports from the states, the Health
Care Financing Administration, the State Department, and funeral
homes across the country. This puts SSA in a unique position to
provide to other federal and state programs the most comprehensive
death database currently available. We recently issued a report
pointing out opportunities to improve the completeness and accuracy
of SSA's death records. This will improve the efficiency and
effectiveness of using this information for other entities to control
their benefit payments.
IMPLEMENTATION
----------------------------------------------------- Chapter 10:2.8.3
Not Implemented--Action Taken. SSA has been working with states to
remove restrictions on the use of their death information based on
the requirements of the Omnibus Budget Reconciliation Act of 1993.
They have no other initiatives that provide for them to be the
clearinghouse of death information in the federal government.
Legislation H.R. 3400 and S. 1843 was proposed that would have
expanded SSA's authority to obtain and disseminate death information
for use in administering the Social Security Act and other programs.
The legislation required state agreements for providing death
information to SSA, expanded redisclosure of death information to
states as well as federal agencies, and eliminated prior special
state exemptions for providing death information to SSA. H.R. 3400
passed the House in November 1993, but S. 1843 was not acted upon in
the Senate.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 10:2.8.4
Social Security: Most Social Security Death Information Accurate But
Improvements Possible (GAO/HEHS-94-211, Aug. 29, 1994).
Social Security: Reporting and Processing of Death Information
Should Be Improved (GAO/HRD-92-88, Sept. 4, 1992).
Welfare Benefits: States Need Social Security's Death Data to Avoid
Payment Error Fraud (GAO/HRD-91-73, Apr. 2, 1991).
Federal Agencies Need SSA's Death Information to Avoid Erroneous
Payments (GAO/T-HRD-91-6, Feb. 6, 1991).
Federal Benefit Payments: Agencies Need Death Information from
Social Security to Avoid Erroneous Payments (GAO/HRD-91-3, Feb. 6,
1991).
Veterans Benefits: VA Needs Death Information From Social Security
to Avoid Erroneous Payments (GAO/HRD-90-110, July 27, 1990).
HHS09: TAKE MORE AGGRESSIVE
ACTIONS TO COLLECT
OUTSTANDING DEBTS OWED TO
THE SOCIAL SECURITY TRUST
FUND
------------------------------------------------------- Chapter 10:2.9
SSA should be given the authority to use a full range of debt
collection tools available under the Debt Collection Act of 1982 to
collect debts owed by individuals who are no longer on benefit rolls.
ACTION ITEMS
----------------------------------------------------- Chapter 10:2.9.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 10:2.9.2
Agree. There are several actions SSA could take that would improve
its debt collection activities. Among these is the use of all the
collection tools included in the Debt Collection Act of 1982. These
tools have been denied to SSA in the past because Congress was
concerned about aggressively collecting overpayments from the aged
and disabled. We believe that collection agencies can routinely
provide addresses of debtors to SSA and that SSA could apply interest
and penalties to debtors in those situations where repayment will not
be a financial hardship on the debtors. This would increase the
reserves to the trust funds, create a more equitable situation in
relation to those beneficiaries who do repay their debts, and provide
an incentive for some debtors to repay their debts who currently do
not.
IMPLEMENTATION
----------------------------------------------------- Chapter 10:2.9.3
Not Implemented--Action Taken. S. 1843 and H.R. 3400 would have
provided SSA the authority to use such collection tools as assessing
interest and penalties on outstanding debts. H.R. 3400 passed in
the House in November 1993, but S. 1843 was not acted upon in the
Senate.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 10:2.9.4
Debt Management: More Aggressive Actions Needed to Reduce Billions
in Overpayments (GAO/HRD-91-46, July 9, 1991).
HHS10: INSTITUTE AND
COLLECT USER FEES ON FDA'S
INSPECTION AND APPROVAL
PROCESSES
------------------------------------------------------ Chapter 10:2.10
Food, drug, and medical device manufacturers, processors and
suppliers should be required to pay for FDA services.
ACTION ITEMS
---------------------------------------------------- Chapter 10:2.10.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 10:2.10.2
Generally Agree. We have found numerous shortcomings in FDA approval
and inspection procedures with regard to pharmaceuticals,
over-the-counter drugs, and medical devices. To some extent, these
are linked to resource problems. However, we have also found that
FDA does not always have a sound basis for requesting and assigning
new resources. As long as user fees supplement existing
appropriations in the context of a strategic plan, they could provide
needed help.
IMPLEMENTATION
---------------------------------------------------- Chapter 10:2.10.3
Not Implemented--Action Taken. HHS requested authority to expand
user fees to medical devices and other services in its fiscal year
1995 proposal. H.R. 4728, the Medical Device User Fee Act of 1994,
would have amended the Federal Food, Drug, and Cosmetic Act to
authorize a device application fee. However, the legislation has not
been enacted. No legislation has yet been proposed in the Senate.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 10:2.10.4
FDA User Fees: Current Measures Not Sufficient for Evaluating Effect
on Public Health (GAO/PEMD-94-26, July 22, 1994).
HHS11: REDESIGN SSA SERVICE
DELIVERY AND MAKE BETTER USE
OF TECHNOLOGY TO PROVIDE
IMPROVED ACCESS AND SERVICES
TO CUSTOMERS
------------------------------------------------------ Chapter 10:2.11
SSA's organizational structure needs to be updated to reflect
changing customer needs and to take full advantage of emerging
technologies.
ACTION ITEMS
---------------------------------------------------- Chapter 10:2.11.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 10:2.11.2
Agree. We have recommended that SSA produce a service delivery plan
that spells out SSA's preferred methods of future service delivery,
including the facilities it will need, where they should be located,
and the human resources and automation that will be required to staff
them.
IMPLEMENTATION
---------------------------------------------------- Chapter 10:2.11.3
Not Implemented--Action Taken. SSA is following the strategic
management approach recommended by GAO to ensure that its planning
activities are tied to its customer needs and mission goals. The
customer service plan, which has been developed to comply with
Executive Order 12862 (September 11, 1993), is to be used to update
the agency strategic plan. As part of updating the agency strategic
plan, SSA plans to define its future business and service delivery
requirements. The supporting plans for facilities, information
systems, and human resources are expected to be developed or modified
based on the direction of the agency strategic plan.
SSA has under consideration several options for balancing its field
office workloads by issuing monthly benefit checks on multiple days
throughout the month rather than on just one day of the month.
Customer and stakeholder input was obtained on the options and will
be considered in determining how to proceed. The systems changes
required to implement the option chosen will require several years of
work effort.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 10:2.11.4
Social Security Administration: Risks Associated With Information
Technology Investment Continue (GAO/AIMD-94-143, Sept. 19, 1994).
Social Security: SSA Needs to Act Now to Assure World-Class Service
(GAO/T-HRD-94-46, Oct. 28, 1993).
Social Security: Sustained Effort Needed to Improve Management and
Prepare for the Future (GAO/HRD-94-22, Oct. 27, 1993).
Social Security: Need to Improve Post-Entitlement Service to the
Public (GAO/HRD-93-21, May 7, 1993).
Social Security: Telephone Busy Signal Rates at Local SSA Field
Office (GAO/HRD-93-49, Mar. 4, 1993).
Social Security: Measure of Telephone Service Accuracy Can Be
Improved (GAO/HRD-91-69, Aug. 30, 1991).
Social Security Downsizing: Significant Savings but Some Service
Quality and Operational Problems (GAO/HRD-91-63, Mar. 19, 1991).
Social Security: Staff Reductions and Service Quality
(GAO/HRD-89-106BR, June 16, 1989).
Social Security: Decision to Implement Nationwide 800 Telephone
Service (GAO/HRD-88-120, May 21, 1988).
Social Security: Staff Reductions and Service Quality
(GAO/HRD-88-97, May 13, 1988).
HHS12: STRENGTHEN
DEPARTMENTWIDE MANAGEMENT
------------------------------------------------------ Chapter 10:2.12
The Department should conduct a review of its organizational
structure and management systems to determine an appropriate balance
between centralized and decentralized functions.
ACTION ITEMS
---------------------------------------------------- Chapter 10:2.12.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 10:2.12.2
Agree. We agree that the Department needs to strengthen its
departmentwide management. In our management review of HHS, we made
a series of recommendations aimed at strengthening departmental
management, including recommending the establishment of
departmentwide strategic and workforce planning processes that
considered the centralization and decentralization of departmental
functions. Such processes logically should examine the balance
between centralized and decentralized functions.
IMPLEMENTATION
---------------------------------------------------- Chapter 10:2.12.3
Not Implemented--Action Taken. HHS has established a study team to
review its management structure and systems and identify options to
strengthen departmentwide management. The team has prepared a
preliminary report that is under review by a steering committee that
oversees HHS' continuous improvement efforts. In addition, as part
of the Department's ongoing efforts to reduce internal controls and
regulations by 50 percent, another work group is studying
opportunities for delegating authority and responsibility to the
lowest levels. Action recommended by this work group may be
implemented immediately if agreed to by the person whose authority or
responsibility is affected.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 10:2.12.4
Management of HHS: Using the Office of the Secretary to Enhance
Departmental Effectiveness (GAO/HRD-90-54, Feb. 9, 1990).
HHS13: REVIEW THE FIELD AND
REGIONAL OFFICE STRUCTURE OF
THE HHS AND DEVELOP A PLAN
FOR SHIFTING RESOURCES TO
MATCH WORKLOAD DEMANDS
------------------------------------------------------ Chapter 10:2.13
The review should emphasize customer service, results, and increased
accountability.
ACTION ITEMS
---------------------------------------------------- Chapter 10:2.13.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 10:2.13.2
Agree. A series of our reports related to SSA noted that staffing
imbalances existed at its field offices, and SSA needed to conduct a
needs assessment and create work standards for its employees. Also,
one ongoing assignment reviewing a key social service program has
found that there is no process for obtaining firm, upfront commitment
of regional resources and the headquarters office has no direct
control of regional resources. Finally, we recommended in our
management review of HHS that the department establish departmental
strategic planning and workforce planning systems that should include
reviewing the field and regional office structure and identifying a
plan to shift resources accordingly.
IMPLEMENTATION
---------------------------------------------------- Chapter 10:2.13.3
Not Implemented--Action Taken. HHS has established a study team to
review the field and regional office structure and identify options
to improve the use of these resources. The team has prepared a
preliminary report that is under review by a steering committee that
oversees HHS' continuous improvement efforts. In addition, HHS also
participates in the President's Management Council, charged with
reporting to Congress in March 1995 on the consolidation and closure
of field offices governmentwide.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 10:2.13.4
Social Security: Sustained Effort Needed to Improve Management and
Prepare for Future (GAO/HRD-94-22, Oct. 27, 1993).
Administration on Aging: More Federal Action Needed to Promote
Service Coordination for the Elderly (GAO/HRD-91-45, Apr. 23, 1991).
Management of HHS: Using the Office of the Secretary to Enhance
Departmental Effectiveness (GAO/HRD-90-54, Feb. 9, 1990).
Social Security: Stable Leadership and Better Management Needed to
Improve Effectiveness (GAO/HRD-87-39, Mar. 18, 1987).
Social Security: Staff Reductions and Service Quality
(GAO/HRD-87-66, Mar. 10, 1987).
Social Security: Improved Telephone Accessibility Would Better Serve
the Public (GAO/HRD-86-85, Aug. 29, 1986).
HHS14: AMEND THE HEALTH
CARE FINANCING
ADMINISTRATION'S (HCFA)
CONTRACTING AUTHORITY TO
ALLOW FOR COMPETITIVE
CONTRACTING
------------------------------------------------------ Chapter 10:2.14
HCFA should be authorized to fully and openly compete Medicare claims
processing contracts to reduce costs and eliminate inefficiencies and
conflicts of interest.
ACTION ITEMS
---------------------------------------------------- Chapter 10:2.14.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 10:2.14.2
Generally Agree. We have reported that HCFA's current contracting
authority, if properly used, allows for effective program management
and provides sufficient opportunities to achieve administrative
efficiencies. For a variety of reasons over the past decade, HCFA
has made many changes to its contractor network. However, its
experience with these changes has been mixed. The changes have
frequently led to disruptions in service to beneficiaries and
providers, as well as increases in payment error rates that exceeded
administrative savings. We have consistently pointed out the
importance of effective claims payment and safeguard activities
because benefit payments represent 98 percent of Medicare
expenditures. On the other hand, payments to contractors represent
only a little more than 1 percent of Medicare costs. Thus, it is
important to consider the effects a change in contracting methods
would have on benefit costs, not just on administrative costs.
IMPLEMENTATION
---------------------------------------------------- Chapter 10:2.14.3
Not Implemented--Action Taken. HCFA has developed a long-standing
practice of contracting with the same entities--typically insurance
companies. While HCFA officials are working to improve their
contracting practices, they perceive many obstacles to changing this
practice. It may be necessary for Congress to authorize HCFA to
evaluate new approaches for a more competitive environment for
Medicare contractors who process Medicare claims. H.R. 3400
required that HHS study the issue of flexibility in contracting for
Medicare claims processing; H.R. 3400 passed the House in November
1993. The provision was deleted from the bill in the Senate (S.
2170). Subsequently, S. 2170 was enacted as Public Law 103-356 on
October 13, 1994, and did not contain the provision in question.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 10:2.14.4
Medicare: HCFA's Contracting Authority For Processing Medicare
Claims (GAO/HEHS-94-171, Aug. 2, 1994).
Medicare: Inadequate Review of Claims Payments Limits Ability to
Control Spending (GAO/HEHS-94-42, Apr. 28, 1994).
Medicare: Greater Investment in Claims Review Would Save Millions
(GAO/HEHS-94-35, Mar. 2, 1994).
Medicare: New Claims Processing System Benefits and Acquisition
Risks (GAO/HEHS/AIMD-94-79, Jan. 25, 1994.)
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT (HUD)
=========================================================== Chapter 11
OVERALL SUMMARY
--------------------------------------------------------- Chapter 11:1
HUD has taken various degrees of action on all 10 of its
recommendations. Five recommendations have been partially
implemented, and five recommendations have not been implemented but
actions have been taken. The five partially implemented
recommendations include improving multifamily asset management and
disposition (HUD02), establishing a new housing production program
(HUD05), streamlining HUD field operations (HUD06), creating
incentives for refinancing certain subsidized home mortgages (HUD07),
and reducing operating subsidies for vacancies (HUD10). Activity,
including the introduction of legislation, has been initiated to
implement the other five recommendations. Legislation pending before
Congress would, for example, devolve the control of public housing to
local public housing authorities (HUD01), authorize demonstration
programs to promote mixed-income housing (HUD04), and consolidate the
Section 8 certificate and voucher programs (HUD09). In addition, HUD
has taken steps to improve single-family asset management and
disposition (HUD03) and to modify its process for computing annual
adjustments to rents for Section 8 projects (HUD08).
HUD has taken many of its actions in conjunction with its reinvention
efforts. Reinvention is HUD's approach for changing the way it does
business, both at headquarters and in the field, in order to become
more results-driven and customer-oriented. As recommended by the
NPR, HUD has begun to (1) undertake a major reorganization, (2)
eliminate layers and bureaucracies, and (3) increase the authority
and responsibility of its offices that work closely with states and
communities. However, reinvention goes beyond the scope of the NPR's
recommendations and includes goals such as reducing homelessness and
reinvigorating economically distressed communities.
GAO CONTACT
------------------------------------------------------- Chapter 11:1.1
Judy A. England-Joseph, Director, Housing and Community Development
Issues, Resources, Community, and Economic Development Division,
(202) 512-7631.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 11:2
HUD01: REINVENT PUBLIC
HOUSING
------------------------------------------------------- Chapter 11:2.1
HUD should create pilot programs to devolve greater authority over
housing funds to sound local agencies. It should create
demonstrations of mixed-income public housing with portable
subsidies. HUD should also streamline public housing rules and take
other steps to improve public housing management.
ACTION ITEMS
----------------------------------------------------- Chapter 11:2.1.1
1. HUD should establish demonstration projects that dramatically
devolve control of public housing to local public housing authorities
(PHA) with histories of sound management, and provide the required
ongoing operating subsidies subject only to the local PHA's meeting a
series of performance targets.
2. HUD should work closely with local PHAs, their national
organizations, public housing tenant representatives, and state and
local government officials to eliminate unnecessary HUD requirements
and procedures.
3. HUD should be authorized to target new construction and
modernization funds to both HUD and locally developed demonstration
models that seek to provide choices to public housing tenants,
including the option to use their housing subsidies to move to units
outside of public housing.
4. HUD should make a hard-hitting, targeted effort to resolve the
severe difficulties of those few public housing agencies identified
as problem PHAs.
5. HUD should be permitted to authorize sale of public housing units
with flexible requirements for replacement housing.
GAO COMMENTS
----------------------------------------------------- Chapter 11:2.1.2
Generally Agree. We support the creation of pilot programs to allow
sound housing agencies greater authority over their operations.
Similarly, mixed-income demonstrations would be a first step toward
returning the public housing program to its original concept of
serving mixed-income populations. Finally, streamlining public
housing rules should benefit well-managed housing agencies. However,
the details on how this initiative would be implemented are critical.
For example, some of the best-run PHAs are also the largest; because
they receive a high level of funding, HUD should not altogether cease
to oversee their operations. Additionally, many PHAs still have high
vacancy rates. Therefore, we have some concerns about how
implementation would occur.
IMPLEMENTATION
----------------------------------------------------- Chapter 11:2.1.3
Not Implemented--Action Taken. In its September 1993 report, NPR
advocated a series of actions to help "reinvent" public housing. The
House and Senate versions of the HUD reauthorization bills (H.R.
3838, Housing and Community Development Act of 1994, and S. 2281,
Housing Choice and Community Investment Act of 1994) contained
provisions that, if enacted, would have authorized the Secretary of
HUD to conduct demonstration projects that would have tested the
extent to which public housing may be exempt from certain statutory
requirements (action item 1); eliminated unnecessary HUD requirements
and procedures (action item 2); targeted new construction and
modernization funds for public housing to give tenants greater market
power, including the freedom to move outside of public housing with
their subsidies (action item 3); provided for revitalizing severely
distressed public housing that, in some cases, is managed by the most
troubled housing authorities (action item 4); and authorized the sale
of public housing with flexible requirements for replacement housing
(action item 5). However, neither of these bills has been enacted.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 11:2.1.4
Public Housing: Information on Backlogged Modernization Funds
(GAO/RCED-94-217FS, July 15, 1994).
Public Housing: Development of Performance Standards for the
District of Columbia Department of Public and Assisted Housing
(GAO/RCED-94-235R, June 3, 1994).
Public Housing: Housing Agency Officials Want More Flexibility in
Replacing Deteriorated Housing (GAO/T-RCED-94-159, Mar. 22, 1994).
Public Housing: Housing Persons With Mental Disabilities With the
Elderly (GAO/RCED-92-81, Aug. 12, 1992).
Assisted Housing: Utility Allowances Often Fall Short of Actual
Utility Expenses,Volumes I and II (GAO/RCED-91-40A and
GAO/RCED-91-40B, Mar. 26, 1991).
Public Housing: HUD's Approval for Country Creek Housing Project,
Dallas, Texas (GAO/RCED-90-30, Oct. 20, 1989).
Public Housing: Chicago Housing Authority Taking Steps to Address
Long-Standing Problems (GAO/RCED-89-100, June 8, 1989).
Public Housing: HUD Oversight of the Annapolis Housing Authority
(GAO/RCED-89-145, June 5, 1989).
Public Housing: Problems Continue to Plague the Cuyahoga
Metropolitan Housing Authority (GAO/RCED-88-122, Apr. 20, 1988).
HUD02: IMPROVE MULTIFAMILY
ASSET MANAGEMENT AND
DISPOSITION
------------------------------------------------------- Chapter 11:2.2
HUD should use public-private partnerships to manage and sell
HUD-held loans and real estate for nonsubsidized housing projects.
Congress should reduce restrictions on HUD's sale of multifamily
properties, including the use of portable subsidies for tenants when
the Secretary determines that to be best for tenant needs.
ACTION ITEMS
----------------------------------------------------- Chapter 11:2.2.1
1. HUD should identify those market-rate rental apartment buildings
and HUD-held loans secured by such apartment buildings as primarily
financial assets and should maximize the present value financial
return in disposition.
2. For the identified financial assets, HUD should use the best
practice models of public-private partnerships for management and
disposition of problem loans and real estate, as opposed to working
those assets with in-house staff.
3. Statutory restrictions on HUD disposition of multifamily
properties held as a result of 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.
GAO COMMENTS
----------------------------------------------------- Chapter 11:2.2.2
Generally Agree. We continue to support increased flexibility in
HUD's multifamily asset management and disposition programs,
including the use of public-private partnerships to manage and sell
HUD-held loans and real estate for nonsubsidized housing projects.
We also support the reduction of restrictions on HUD's sale of
multifamily housing projects and the use of portable subsidies when
the use of such subsidies is consistent with the government's
interests and tenants' needs. In our view, legislative changes that
give HUD greater flexibility in disposing of properties, enacted as
part of the Multifamily Housing Property Disposition Reform Act of
1994, are in line with this recommendation. These changes, when
implemented, should help HUD improve its multifamily asset management
and property disposition activities.
IMPLEMENTATION
----------------------------------------------------- Chapter 11:2.2.3
Partially Implemented. The Multifamily Housing Property Disposition
Reform Act of 1994 (P.L. 103-233) authorizes HUD to carry out a
demonstration program to test the feasibility of restructuring and
disposing of troubled HUD-held multifamily mortgages through the
establishment of partnerships with public, private, and nonprofit
entities. HUD is currently developing such a demonstration program
and expects to implement it in October 1994 (action items 1 and 2).
The act also contains provisions that give HUD greater flexibility in
disposing of HUD-owned multifamily properties and allow HUD, in
certain circumstances, to use portable tenant-based subsidies in
place of project-based subsidies (action item 3). HUD is developing
regulations to implement the act's provisions. HUD has also
developed a plan for selling the bulk of HUD-held mortgages by the
end of fiscal year 1996.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 11:2.2.4
Federally Assisted Housing: Condition of Some Properties Receiving
Section 8 Project-Based Assistance is Below Housing Quality Standards
(GAO/T-RCED-94-273, July 26, 1994).
Multifamily Housing: Status of HUD's Multifamily Loan Portfolios
(GAO/RCED-94-173FS, Apr. 12, 1994).
Multifamily Housing: Information on Selected Properties Owned By HUD
(GAO/RCED-94-163FS, Apr. 11, 1994).
Housing Issues: The Housing and Community Development Act of 1994
(GAO/T-RCED-94-148, Mar. 10, 1994).
Multifamily Housing: Impediments to Disposition of Properties Owned
by HUD (GAO/T-RCED-93-37, May 12, 1993).
HUD Reforms: Progress Made Since the HUD Scandals but Much Work
Remains (GAO/RCED-92-46, Jan. 31, 1992).
HUD Reforms: Limited Progress Made Since the HUD Scandals
(GAO/T-RCED-91-62, June 12, 1991).
HUD03: IMPROVE
SINGLE-FAMILY ASSET
MANAGEMENT AND DISPOSITION
------------------------------------------------------- Chapter 11:2.3
HUD should use a combination of early assistance to borrowers having
financial difficulties, contract loan servicing, contract mortgage
assistance programs, and public-private partnerships to streamline
and improve management of HUD-assigned single-family mortgages.
ACTION ITEMS
----------------------------------------------------- Chapter 11:2.3.1
1. HUD should be authorized to use the Mutual Insurance Fund for any
cost-effective expenditure needed to maximize the value of the fund,
including all expenditures recommended through the actions below.
2. HUD should undertake programs designed to mitigate losses.
3. HUD should contract out loan servicing for the single-family
loans for which it accepts assignment.
4. HUD should dispose of assigned single-family mortgages.
5. HUD should contract with qualified nonprofit or other
organizations to administer a financial assistance program for
temporary help with mortgage payments for HUD-held mortgages and for
such mortgages that have been transferred to the above-described
partnerships.
GAO COMMENTS
----------------------------------------------------- Chapter 11:2.3.2
Generally Agree. On the basis of our ongoing work in this area, we
support efforts to streamline and improve the management of HUD's
single-family asset management and property disposition activities.
This area of HUD's operations has continually been a problem for the
agency.
IMPLEMENTATION
----------------------------------------------------- Chapter 11:2.3.3
Not Implemented--Action Taken. In December 1993, HUD contracted with
the Unicorn Research Corporation to examine the Federal Housing
Administration's (FHA) single-family assignment program. HUD needs
the results of this examination, which it expects to receive in early
1995, before it can implement action items 1, 2, 3, and 5. In July
1994, HUD sold 357 loans to private industry (action item 4).
Pleased with the outcome of this sale, HUD has indicated that it
would like to dispose of additional mortgages by selling them to the
private sector.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 11:2.3.4
HUD Reforms: Progress Made Since the HUD Scandals but Much Work
Remains (GAO/RCED-92-46, Jan. 31, 1992).
HUD Reforms: Limited Progress Made Since the HUD Scandals
(GAO/T-RCED-91-62, June 12, 1991).
Home Ownership: Loan Policy Changes Made to Strengthen FHA's
Mortgage Insurance Program (GAO/RCED-91-61, Mar. 1, 1991).
Impact of FHA Loan Policy Changes on Financial Losses and Homebuyers
(GAO/T-RCED-90-95, July 10, 1990).
Impact of FHA Loan Policy Changes on Its Cash Position
(GAO/T-RCED-90-70, June 6, 1990).
HUD04: CREATE AN
ASSISTED-HOUSING/RENT
SUBSIDY DEMONSTRATION
PROJECT
------------------------------------------------------- Chapter 11:2.4
HUD should be authorized to experiment in negotiated restructuring of
privately owned assisted-housing projects to improve management,
promote mixed-income housing, and save taxpayer funds.
ACTION ITEMS
----------------------------------------------------- Chapter 11:2.4.1
1. On a demonstration basis, HUD should be authorized to conduct
negotiated restructuring of assisted-housing projects.
2. Demonstrations should include allowing project rents to float to
market rates with tenants receiving their assistance in a portable
format (like portable Section 8 certificates) to make up the
difference between tenant contribution and the market rent.
3. If, over time, the market value and/or net operating income of
the project improves because of better management or because of a
better environment through improved income mix, the owner and manager
should receive some of the benefit.
4. Each demonstration should be structured so that HUD payments for
the project, the obligations of the owner, and assistance to tenants
would continue for at least as long as under contracts outstanding at
the start of the demonstration.
5. HUD should work with IRS to explore ways to deal with competing
public objectives of the tax code and housing programs.
6. These demonstrations should be real experiments in modified
approaches to assisted housing.
7. HUD should seek legislation to shift multifamily projects from
above-market to market rents while protecting the existing tenants.
GAO COMMENTS
----------------------------------------------------- Chapter 11:2.4.2
Generally Agree. We have not carried out any work that is
specifically aimed at assessing the merits of the NPR recommendation.
However, we would generally support actions that allow HUD to lower
rents by restructuring the debt on assisted-housing projects, when
such action is in the government's best interest and still promotes
mixed-income housing.
IMPLEMENTATION
----------------------------------------------------- Chapter 11:2.4.3
Not Implemented--Action Taken. Provisions designed to address this
recommendation were included as part of the 1994 housing
reauthorization legislation-- the Housing and Community Development
Act of 1994 (H.R. 3838) and the Housing Choice and Community
Investment Act (S. 2281)--that was before the 103rd Congress. Both
of these bills would have, among other things, authorized HUD to
restructure the underlying debt on projects receiving assistance
under Section 8 contracts at the time of contract renewal. However,
neither of these bills has been enacted.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 11:2.4.4
None.
HUD05: ESTABLISH A NEW
HOUSING PRODUCTION PROGRAM
------------------------------------------------------- Chapter 11:2.5
HUD should stimulate housing production through Federal Housing
Administration (FHA) risk-sharing arrangements with housing finance
agencies, stimulate a secondary market for multifamily properties,
improve access to FHA insurance for first-time homebuyers, provide
special FHA programs to revitalize neighborhoods, and improve FHA
management.
ACTION ITEMS
----------------------------------------------------- Chapter 11:2.5.1
1. HUD should stimulate multifamily housing development through
risk-sharing with housing finance agencies.
2. HUD should stimulate multifamily housing production by helping to
develop a secondary market for loans on multifamily properties.
3. Legislation should be enacted to authorize FHA to improve access
to capital and assist moderate-income, first-time homebuyers in
high-cost areas.
4. Legislation should be enacted to authorize FHA to work in
partnership with local governments and nonprofits striving to
revitalize decaying neighborhoods by making special terms available
for FHA-insured mortgages in those areas.
5. HUD should make cost-effective investments in professional
financial management.
GAO COMMENTS
----------------------------------------------------- Chapter 11:2.5.2
Generally Agree. We support the portion of this recommendation
dealing with multifamily housing. Providing risk-sharing
arrangements for multifamily housing through FHA (via federal credit
enhancements) can increase the availability of capital by promoting
an expanded secondary market for multifamily mortgages, particularly
mortgages for affordable multifamily housing. However, we are
concerned about the portion of the recommendation calling for
improved access to FHA for first-time homebuyers. If the intent of
this part of the recommendation is to let buyers who do not currently
qualify into the program, the financial condition of the insurance
fund supporting the program could be undermined.
IMPLEMENTATION
----------------------------------------------------- Chapter 11:2.5.3
Partially Implemented. The portion of this recommendation affecting
multifamily properties was authorized by the Housing and Community
Development Act of 1992 (P.L. 102-550). FHA has entered into
risk-sharing arrangements for multifamily properties with 19 housing
finance agencies. HUD has also signed partnership arrangements to
share risks with the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation. These actions should help
stimulate multifamily housing development, in part through a
broadened secondary market for loans on multifamily properties
(action items 1 and 2).
Legislation has been introduced to establish a new FHA program to
make FHA home mortgage insurance with special terms available to low-
and moderate-income buyers of single-family homes in both high-cost
and revitalization areas (action items 3 and 4). To make
cost-effective investments in professional financial management, HUD
has taken steps to obtain professional financial assistance (action
item 5).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 11:2.5.4
Housing Finance: Expanding Capital for Affordable Multifamily
Housing (GAO/RCED-94-3, Oct. 27, 1993).
Mortgage Credit Enhancements: Options for FHA in Meeting the Need
for Affordable Multifamily Housing (GAO/T-RCED-92-52, Apr. 3, 1992).
Home Ownership: Loan Policy Changes Made to Strengthen FHA's
Mortgage Insurance Program (GAO/RCED-91-61, Mar. 1, 1991).
Impact of FHA Loan Policy Changes on Financial Losses and Homebuyers
(GAO/T-RCED-90-95, July 10, 1990).
Impact of FHA Loan Policy Changes on Its Cash Position
(GAO/T-RCED-90-70, June 6, 1990).
HUD06: STREAMLINE HUD FIELD
OPERATIONS
------------------------------------------------------- Chapter 11:2.6
HUD should streamline its Washington, regional, and field office
structure and consolidate and reduce its size over time.
ACTION ITEMS
----------------------------------------------------- Chapter 11:2.6.1
1. HUD should participate in the multiple agency field office
restructuring effort.
2. Program field staff should report more directly to responsible
program assistant secretaries.
3. HUD should accelerate the privatization of single-family
insurance application processing and asset management and centralize
lender monitoring.
4. HUD should continue to 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.
5. No one should be laid off as a result of this office
consolidation. A full attrition program should apply in the field
until an appropriate level of staffing is achieved.
GAO COMMENTS
----------------------------------------------------- Chapter 11:2.6.2
Generally Agree. We continue to support the principle behind this
recommendation. Previous GAO studies have reported on problems with
HUD's organizational structure and resource deployment. In April
1994, the Secretary initiated a major reorganization as part of his
effort to "reinvent" HUD. This reorganization includes eliminating
the regional offices and most regional functions to help meet the
goal of a more result-driven and customer-oriented HUD. The
reorganization also gives program assistant secretaries direct line
authority for program delivery in the new structure. However, it is
premature to evaluate the success of the reorganization or even to
determine whether HUD can be reinvented. HUD faces many challenges,
the most basic of which is the need to change an organizational
culture that has become reactive and defensive.
IMPLEMENTATION
----------------------------------------------------- Chapter 11:2.6.3
Partially Implemented. In April 1994, the Department implemented a
new reorganization plan, which restructured the field offices along
single-family and multifamily lines of business, and made the field
office staff directly accountable to the program office assistant
secretaries. The reorganization also eliminated many traditional
regional review and management oversight functions, and it shifted
most field authority to state and area offices (action items 1 and
2). HUD has also consolidated its operations into 17 program areas
and is working to meet the NPR employment reduction goals through
attrition rather than layoffs (action item 5).
In reorganizing the Federal Housing Administration (FHA), HUD will
consolidate centers for processing insurance applications. In
addition, the Assistant Secretary for Housing is conducting a study
of the future of FHA. He has held four of eight public forums to
explore how best to reorganize FHA to remove bureaucratic barriers
and transform it into a more entrepreneurial, mission-driven
institution (action item 3). HUD is continuing to delegate specific
grant award decisionmaking to the states and localities (action item
4).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 11:2.6.4
Housing and Urban Development: Management and Budget Issues in HUD's
Fiscal Year 1995 Appropriation (GAO/T-RCED-94-206, May 12, 1994).
HUD Reforms: Progress Made Since the HUD Scandals but Much Work
Remains (GAO/RCED-92-46, Jan. 31, 1992).
HUD Reforms: Limited Progress Made Since the HUD Scandals
(GAO/T-RCED-91-62, June 12, 1991).
Increasing the Department of Housing and Urban Development's
Effectiveness Through Improved Management (GAO/RCED-84-9, Jan. 10,
1984).
HUD07: REFINANCE SECTION
235 MORTGAGES
------------------------------------------------------- Chapter 11:2.7
HUD should use incentive contracts to speed savings from refinancing
expensive old mortgages subsidized by HUD.
ACTION ITEMS
----------------------------------------------------- Chapter 11:2.7.1
1. HUD should be given flexibility to induce profitable refinancing
of section 235 program loans by paying whatever contract costs and
incentive payments to section 235 borrowers may be cost-effective.
2. HUD should issue one or more incentive contracts to private
companies.
GAO COMMENTS
----------------------------------------------------- Chapter 11:2.7.2
Generally Agree. We support efforts to reduce any unnecessary
interest rate subsidies being paid under this program. It is not
clear at this time whether the incentive contracts referred to in
this recommendation are the best way to accomplish this.
IMPLEMENTATION
----------------------------------------------------- Chapter 11:2.7.3
Partially Implemented. Arising out of the NPR's recommendations, the
Government Reform and Savings Act of 1993 (H.R. 3400) was introduced
in the House on October 28, 1993. Section 6002 of this bill would
give HUD authority to provide incentives to mortgagors to refinance
mortgages insured under section 235 of the National Housing Act and
would make funds available for closing costs and other costs incurred
in connection with such refinancings. This bill was passed by the
House on November 23, 1993. Since then, section 6002 was introduced
in the Senate as section 1019 of the Government Downsizing,
Performance, and Accountability Act of 1994 (S. 1843), which was
added as an amendment to the Community Development Banking and
Financial Institutions Act of 1993 (S. 1275). It became Public Law
103-325 on September 23, 1994 (action item 1). HUD is also seeking
funds to issue incentive contracts to private companies (action item
2).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 11:2.7.4
None.
HUD08: REDUCE SECTION 8
CONTRACT RENT PAYMENTS
------------------------------------------------------- Chapter 11:2.8
HUD should modify its process to reduce unjustified increases in
annual payments to Section 8 projects.
ACTION ITEMS
----------------------------------------------------- Chapter 11:2.8.1
1. HUD should be given legislative authority to discontinue its use
of comparability studies to determine annual contract payments.
2. HUD should be given legislative authority to base its annual
contract rental rate increases on actual increases in costs to the
owners, not on the more broadly based housing costs index and
comparability methods.
3. HUD should be given legislative authority to require owners to
document and justify all operating costs, so that requested increases
to cover certain costs, e.g., taxes and fuel, can be offset, if
appropriate, against known reductions in other costs, such as debt
service or maintenance.
GAO COMMENTS
----------------------------------------------------- Chapter 11:2.8.2
Generally Agree. We support eliminating unjustified increases in
annual payments to Section 8 projects. However, we have no
information on how pervasive this problem is. The difficulty will be
in determining just what "unjustified" rental increases are.
IMPLEMENTATION
----------------------------------------------------- Chapter 11:2.8.3
Not Implemented--Action Taken. In April 1994, HUD issued regulations
that somewhat modify its process for computing annual adjustments to
rents for Section 8 projects. This modification, while intended to
better reflect rental costs, does not follow the changes prescribed
by the NPR because the regulations are formula-based. No legislation
has been enacted that would address the NPR action items on
discontinuing the use of comparability studies (action item 1),
basing rental rate increases on actual increases in costs to owners
(action item 2), and requiring owners to document and justify all
operating costs (action item 3). Legislation (H.R. 3838, entitled
the Housing and Community Development Act of 1994, and H.R. 4310 and
S. 2281, both entitled the Housing Choice and Community Investment
Act of 1994) has been introduced that, if enacted, would limit
adjustments in Section 8 contract rents.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 11:2.8.4
None.
HUD09: CONSOLIDATE SECTION
8 CERTIFICATES AND VOUCHERS
------------------------------------------------------- Chapter 11:2.9
This recommendation would consolidate two overlapping projects to
eliminate duplication.
ACTION ITEM
----------------------------------------------------- Chapter 11:2.9.1
The voucher and certificate programs should be combined into one
program with one set of rules.
GAO COMMENTS
----------------------------------------------------- Chapter 11:2.9.2
Agree. We support the concept of merging these two similar rental
housing subsidy programs that have similar income eligibility
criteria, somewhat similar subsidy mechanisms, and similar reliance
on privately owned housing.
IMPLEMENTATION
----------------------------------------------------- Chapter 11:2.9.3
Not Implemented--Action Taken. In February 1993, HUD proposed rules
that would provide for a common set of requirements for the two
programs except when program requirements differed by statute.
According to a HUD official, HUD published final rules on combined
admissions procedures on July 18, 1994, and expects to issue the
remaining rules in final form in early 1995. In addition, various
bills were introduced to merge the certificate and voucher programs
(S. 2281 and H.R. 4310, both entitled the Housing Choice and
Community Investment Act of 1994, and H.R. 3838, entitled the
Housing and Community Development Act of 1994). However, none of
these bills was enacted.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 11:2.9.4
Section 8 Rental Housing: Merging Assistance Programs Has Benefits
but Raises Implementation Issues (GAO/RCED-94-85, May 27, 1994).
Housing Issues: The Housing and Community Development Act of 1994
(GAO/T-RCED-94-198, Mar. 10, 1994).
Rental Housing: Housing Vouchers Cost More Than Certificates but
Offer Added Benefits (GAO/RCED-89-20, Feb. 16, 1989).
HUD10: REDUCE OPERATING
SUBSIDIES FOR VACANCIES
------------------------------------------------------ Chapter 11:2.10
This recommendation would encourage public housing agencies to make
better use of their assets by reducing subsidies paid for
unjustifiably vacant units.
ACTION ITEMS
---------------------------------------------------- Chapter 11:2.10.1
1. HUD should establish an Agency 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.
2. HUD should reduce annual operating subsidies to PHAs and Indian
Housing Authorities (IHA) with consistently high vacancy rates
possibly by reducing the per-unit subsidy for vacant units to 50
percent of the subsidy level for occupied units.
3. HUD should enter into contractual agreements with those PHAs
receiving reduced subsidies, which should include proposed PHA action
plans to reduce vacancy rates and measurable performance goals and
milestones.
4. HUD should restructure its performance funding system formula to
provide for increasing levels of operating subsidies tied to the
achievement of occupancy level targets.
GAO COMMENTS
---------------------------------------------------- Chapter 11:2.10.2
Generally Agree. We support the thrust of this recommendation. In
fact, HUD currently allocates operating subsidies to public housing
authorities on a formula basis and has a policy of reducing subsidies
for public housing authorities with "excess" vacancies. However, we
have no information on the extent to which this policy is encouraging
public housing authorities to make better use of their assets.
IMPLEMENTATION
---------------------------------------------------- Chapter 11:2.10.3
Partially Implemented. The NPR recommended a series of action items
to encourage public housing authorities to reduce their vacancies
through financial incentives and performance measures. The Housing
and Community Development Act of 1992, which predates these
recommendations, gave HUD authority and funding for the Vacancy
Reduction Program. Under the regulations that define this program,
some of the recommended action items have been or are being
accomplished. For instance, HUD has established an agency goal of
achieving an average 97-percent occupancy rate in units owned and
managed by housing authorities by the end of fiscal year 1999 (action
item 1). In addition, each housing authority participating in the
Vacancy Reduction Program must develop a vacancy reduction plan.
However, HUD's Vacancy Reduction Program does not provide for, and
HUD has not addressed, other steps recommended by the NPR that would
penalize housing authorities with consistently high vacancy rates by
reducing their annual operating subsidies by lowering the per-unit
subsidy for vacant units to as little as 50 percent of the subsidy
for occupied units (action item 2) or reward housing authorities that
achieve target-level occupancy rates by increasing their operating
subsidy levels (action item 4). A basis for taking these steps might
be developed after the completion of an ongoing study requested by
Congress and funded by HUD. HUD is implementing action item 3 with
PHAs that have consistently high vacancy rates rather than with PHAs
that receive reduced subsidies because the action to reduce subsidies
has not yet been taken.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 11:2.10.4
Public Housing: Management Issues Pertaining to the Buffalo
Municipal Housing Authority (GAO/RCED-91-70, Mar. 1, 1991).
INTELLIGENCE COMMUNITY (INTEL)
=========================================================== Chapter 12
OVERALL SUMMARY
--------------------------------------------------------- Chapter 12:1
The Director of Central Intelligence (DCI) is responsible for
implementing the NPR recommendations directed to the intelligence
community and providing substantive information on the implementation
status of those recommendations. In a letter dated May 25, 1994, we
formally notified the DCI that House and Senate Committees had
requested information on the implementation of the NPR
recommendations. We asked to meet with DCI staff to (1) be briefed
on the current status of implementation of the recommendations and
(2) examine the underlying documentation supporting the DCI's
assessment of implementation progress. Since early June, we have
contacted DCI congressional liaison staff each week in an attempt to
determine the status of our request. When it became apparent that
DCI staff were not being responsive to our request, we sought the
assistance of NPR staff who were responsible for tracking the
intelligence community recommendations. NPR staff contacted the DCI
staff on our behalf.
However, despite our efforts and the efforts of NPR staff, the DCI
has not responded, either formally or informally, to our request for
information about the intelligence community recommendations.
Therefore, we are unable to comment on the extent to which most of
the recommendations have been implemented. One recommendation--to
merge the President's Intelligence Oversight Board and the
President's Foreign Intelligence Advisory Board--was implemented by
Executive Order 12863.
GAO CONTACT
------------------------------------------------------- Chapter 12:1.1
Richard Davis, Director, National Security Analysis Issues, National
Security and International Affairs Division, (202) 512-3504.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 12:2
INTEL01: ENHANCE
INTELLIGENCE COMMUNITY
INTEGRATION
------------------------------------------------------- Chapter 12:2.1
The end of the Cold War and the constrained fiscal environment in the
United States create an imperative for the 13 components of the
Intelligence Community to act more effectively and more efficiently
as a team.
ACTION ITEMS
----------------------------------------------------- Chapter 12:2.1.1
1. The Director of Central Intelligence (DCI) and the Deputy
Secretary of Defense should hold a visioning conference to determine
the Intelligence Community's (IC) mission in the post-Cold War world.
2. The DCI and the Deputy Secretary of Defense should strengthen the
IC Executive Committee by holding periodic principals-only meetings
to address fundamental policy issues and strategic direction.
3. The DCI should review the contribution of Intelligence Centers to
the goal of better Community integration and execution processes.
4. The DCI should direct the development of a public affairs
strategy that includes educating the public on the intelligence
profession.
GAO COMMENTS
----------------------------------------------------- Chapter 12:2.1.2
Insufficient Information. While we are not in a position to comment
on this recommendation, we have begun a review of DOD's
reorganization of military intelligence which will assess DOD's
progress in having the several defense intelligence agencies work
more closely together.
IMPLEMENTATION
----------------------------------------------------- Chapter 12:2.1.3
Insufficient Information. As noted in the overall summary, the
Director of Central Intelligence has not responded to our requests
for information regarding the status of this recommendation.
Therefore, we cannot independently determine whether any progress has
been made toward its implementation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 12:2.1.4
None.
INTEL02: ENHANCE COMMUNITY
RESPONSIVENESS TO CUSTOMERS
------------------------------------------------------- Chapter 12:2.2
A 40-year emphasis on the Soviet Union allowed the Intelligence
Community to develop a repertoire which was not dependent on a close
relationship with its customers. That is no longer the case today,
and NPR makes recommendations for improvements in this area.
ACTION ITEMS
----------------------------------------------------- Chapter 12:2.2.1
1. The DCI should appoint a customer advocate, or ombudsman.
2. The DCI should establish a process that continuously tracks the
needs of the IC customer.
3. The Community Management Staff should explore the feasibility of
IC integrated service teams for larger customers with growing
intelligence needs and provide the teams with electronic connectivity
to IC producers and their databases.
4. The Community Public Affairs Office should jointly develop
programs to inform the general public about the value of the services
provided by the IC.
5. The DCI should establish an integrated Community congressional
liaison office. The newly established office should develop a
Community-wide congressional strategy by January 1994.
6. The new Intelligence Community Intelligence Systems Board should
create a multimedia information handling architecture for the IC and
its customers.
7. The National Intelligence Producers Board should establish, by
the end of fiscal year 1994, a single, unified, tailored IC series of
products for high-level customers of national intelligence.
8. Production managers should encourage the use of the lowest
practical level of classification for IC products.
GAO COMMENTS
----------------------------------------------------- Chapter 12:2.2.2
Generally Agree. While we have not done work specific to the subject
of this recommendation, the overall body of work we have done lends
credence to the problem NPR described.
IMPLEMENTATION
----------------------------------------------------- Chapter 12:2.2.3
Insufficient Information. As noted in the overall summary, the
Director of Central Intelligence has not responded to our requests
for information regarding the status of this recommendation.
Therefore, we cannot independently determine whether any progress has
been made toward its implementation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 12:2.2.4
None.
INTEL03: REASSESS
INFORMATION COLLECTION TO
MEET NEW ANALYTICAL
CHALLENGES
------------------------------------------------------- Chapter 12:2.3
The analytical issues the Intelligence Community faces are far more
diverse and complex today, requiring new focus and new techniques to
meet the intelligence needs of policymakers.
ACTION ITEMS
----------------------------------------------------- Chapter 12:2.3.1
1. The Foreign Broadcast Information Service and the Open Source
Coordination Office should reexamine the mission of the Foreign
Broadcast Information Service.
2. The human intelligence program manager, in coordination with the
National Intelligence Collection Board, should diversify human
intelligence collection to cover new issues and areas where technical
collection is becoming less productive.
3. The new Intelligence Community Systems Board should create a
multimedia information handling architecture for the IC to facilitate
real-time communications between analysts and collectors here and
abroad in the interest of pinpointing collection gaps and weaknesses.
4. The IC Executive Committee should act on recommendations of
ongoing reviews of classification policies and source identification.
5. The National Intelligence Council should take the lead to
integrate political, economic, and military analysis.
Cross-fertilization should be increased by bringing IC analysts
together to work on a particular issue more frequently, as is done on
National Intelligence Estimates.
6. The National Intelligence 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.
GAO COMMENTS
----------------------------------------------------- Chapter 12:2.3.2
Agree. We have performed both classified and unclassified reviews of
specific intelligence systems and portions of the intelligence force
structure. Our work has shown that DOD has made mixed progress in
adjusting its information collection systems, and opportunities exist
for further adjustments.
IMPLEMENTATION
----------------------------------------------------- Chapter 12:2.3.3
Insufficient Information. As noted in the overall summary, the
Director of Central Intelligence has not responded to our requests
for information regarding the status of this recommendation.
Therefore, we cannot independently determine whether any progress has
been made toward its implementation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 12:2.3.4
We have produced several classified reports that address the issues
raised by this recommendation.
INTEL04: INTEGRATE
INTELLIGENCE COMMUNITY
INFORMATION MANAGEMENT
SYSTEMS
------------------------------------------------------- Chapter 12:2.4
The Intelligence Community lacks the connectivity and
interoperability in its information systems to do its job efficiently
and effectively.
ACTION ITEMS
----------------------------------------------------- Chapter 12:2.4.1
1. The Director of Central Intelligence and the Secretary of Defense
should replace the Department of Defense's Intelligence Systems
Council with an IC organization chaired by the Executive Director for
Intelligence Community Affairs and the Deputy Assistant Secretary of
Defense.
2. The new Community Intelligence 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.
3. The new Community ISB should establish a Dissemination Working
Group to act as the focal point for the receipt, review, and
validation of all Intelligence Community dissemination needs.
4. The new Community ISB should establish a way to identify, track,
and evaluate management information within the National Foreign
Intelligence Program and Tactical Intelligence and Related Activities
budget framework, so that appropriate Community and congressional
oversight of these costs is easy to accomplish.
5. The new Community ISB also should continue significant emphasis
on the development of multilevel security.
GAO COMMENTS
----------------------------------------------------- Chapter 12:2.4.2
Generally Agree. While we have not done work specific to the subject
of this recommendation, the overall body of work we have done lends
credence to the described deficiencies.
IMPLEMENTATION
----------------------------------------------------- Chapter 12:2.4.3
Insufficient Information. As noted in the overall summary, the
Director of Central Intelligence has not responded to our requests
for information regarding the status of this recommendation.
Therefore, we cannot independently determine whether any progress has
been made toward its implementation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 12:2.4.4
None.
INTEL05: DEVELOP INTEGRATED
PERSONNEL AND TRAINING
SYSTEMS
------------------------------------------------------- Chapter 12:2.5
This recommendation focuses on organizational development and
training issues within the Intelligence Community.
ACTION ITEMS
----------------------------------------------------- Chapter 12:2.5.1
1. The personnel directors of the Intelligence Community should
review the personnel framework for all members of the Intelligence
Community to facilitate establishment of a common set of personnel
standards and practices.
2. The Community should adopt one set of security policies and
standards.
3. The Community Foreign Language Committee should set
Community-wide language proficiency standards, recognizing that
individual agencies will continue to have unique operational
requirements that mandate specialized training and testing.
4. The Community Personnel Coordinating Committee should establish a
vigorous program of interagency rotational assignments beginning at
the GS/GM-13 level.
5. The Training Directors Consortium, which is being reestablished,
should consolidate training infrastructures and share training
programs, facilities, techniques, and equipment.
6. The Community Personnel Coordinating Committee should construct a
skills bank that contains information on the job every person is
currently doing and what his/her skills are. A second phase might
incorporate information on customers, enabling the Community to
measure its performance against specific customer requirements.
GAO COMMENTS
----------------------------------------------------- Chapter 12:2.5.2
Insufficient Information. A report we issued in July 1994 concluded
that a significant number of linguists continue to graduate from the
service-operated language school without having achieved the desired
level of language proficiency. However, other than this study we
have no basis to comment on this recommendation.
IMPLEMENTATION
----------------------------------------------------- Chapter 12:2.5.3
Insufficient Information. As noted in the overall summary, the
Director of Central Intelligence has not responded to our requests
for information regarding the status of this recommendation.
Therefore, we cannot independently determine whether any progress has
been made toward its implementation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 12:2.5.4
DOD Training: Many DOD Linguists Do Not Meet Minimum Proficiency
Standards (GAO/NSIAD-94-191, July 12, 1994).
INTEL06: MERGE THE
PRESIDENT'S INTELLIGENCE
OVERSIGHT BOARD WITH THE
PRESIDENT'S FOREIGN
INTELLIGENCE ADVISORY BOARD
------------------------------------------------------- Chapter 12:2.6
The roles of these two oversight bodies are sufficiently similar that
small savings and some efficiencies can be achieved by combining
them.
ACTION ITEM
----------------------------------------------------- Chapter 12:2.6.1
The President should issue an 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.
GAO COMMENTS
----------------------------------------------------- Chapter 12:2.6.2
Insufficient Information. These two boards are part of the internal
operations of the White House. We have not reviewed their activities
and therefore cannot comment on the merits of this recommendation.
IMPLEMENTATION
----------------------------------------------------- Chapter 12:2.6.3
Fully Implemented. On September 13, 1993, the President issued
Executive Order 12863, which merged the President's Intelligence
Oversight Board and the President's Foreign Intelligence Advisory
Board into a newly established President's Foreign Intelligence
Advisory Board.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 12:2.6.4
None.
INTEL07: IMPROVE SUPPORT TO
GROUND TROOPS DURING COMBAT
OPERATIONS
------------------------------------------------------- Chapter 12:2.7
Numerous studies of intelligence support during the Gulf War focused
on agency-or service-specific support issues. This issue outlines a
reinvention lab effort that proposes an integrated approach to
studying support to ground forces during combat operations.
ACTION ITEMS
----------------------------------------------------- Chapter 12:2.7.1
1. The Secretary of Defense, the Chairman of the Joint Chiefs of
Staff, and the Director of Central Intelligence should establish a
reinvention lab to address these issues.
2. The Secretary of Defense and the DCI should appoint a small group
of neutral monitors to coach the process.
3. The reinvention lab will 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.
GAO COMMENTS
----------------------------------------------------- Chapter 12:2.7.2
Generally Agree. On the basis of several GAO reports on specific
intelligence programs that improve support to ground troops during
combat operations, and DOD's lessons learned from Operation Desert
Storm, we agree with NPR's goal of improving intelligence support to
combat operations. However, we have no knowledge of the particular
"reinvention lab effort" proposed by NPR.
IMPLEMENTATION
----------------------------------------------------- Chapter 12:2.7.3
Insufficient Information. As noted in the overall summary, the
Director of Central Intelligence has not responded to our requests
for information regarding the status of this recommendation.
Therefore, we cannot independently determine whether any progress has
been made toward its implementation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 12:2.7.4
Army Force Structure: The Relocation of the 513th Military
Intelligence Brigade (GAO/NSIAD-94-15, Oct. 7, 1993).
Intelligence Programs: New RC-135 Engines Can Reduce Cost and
Improve Performance (GAO/NSIAD-92-305, Aug. 25, 1992).
Defense Management: Stronger Oversight of Joint Service Imagery
Processing System Needed (GAO/NSIAD-91-164, July 26, 1991).
Tactical Intelligence: Army's Mohawk Surveillance Radar Program
Restructure (GAO/NSIAD-90-156, May 11, 1990).
DEPARTMENT OF THE INTERIOR (DOI)
=========================================================== Chapter 13
OVERALL SUMMARY
--------------------------------------------------------- Chapter 13:1
Although none of the 14 NPR recommendations for which DOI is
primarily responsible has been fully implemented, action has been
taken toward implementing all of them. Five recommendations have
been partially implemented--to establish a national spatial data
infrastructure (DOI03), to rationalize federal land ownership
(DOI06), to improve land acquisition policies (DOI07), to establish a
system of personnel exchanges (DOI09),and to create a new mission for
the Bureau of Reclamation (DOI12). Congressional action is required
to implement all or part of other recommendations, including those to
establish a hardrock mine reclamation fund (DOI01), to redefine
federal oversight of coal mine regulation (DOI02), to promote
entrepreneurial management of the National Park Service (DOI04), to
obtain a fair return for federal resources (DOI05), to improve the
Minerals Management Service's royalty collections (DOI08), and to
improve the federal helium program (DOI13). Remaining
recommendations or action items that agency heads can implement
themselves have simply taken more than a year to put into effect.
As implementation proceeds, it is becoming increasingly clear that
many of the recommendations for which DOI is primarily responsible
are interrelated and interdependent and are merely components of a
much larger issue--how best to fulfill the federal government's
stewardship responsibilities, including sustaining multiple uses of
federal lands and protecting the environment. For example, 18
federal agencies--including 9 within DOI, 3 within the Department of
Agriculture, and the Environmental Protection Agency--have identified
activities related to a new, broader approach to managing the
nation's lands and natural resources called "ecosystem management,"
and the administration's fiscal year 1995 budget proposes to
implement the NPR's recommendation to develop cross-agency ecosystem
planning and management (see ENV02). However, implementing ecosystem
management will require collecting and linking large volumes of
scientific and socioeconomic data (DOI03) and managing along
ecological rather than political or administrative boundaries
(DOI06). Implementing this approach could also affect such issues as
land acquisition policies (DOI07), personnel exchanges (DOI09), and
the priority given to cleaning up abandoned hardrock mining sites
(DOI01). Therefore, it will become increasingly important for these
agencies to have a shared vision of the future, good systems to
collect and use data for gauging operational success and
accountability, and staff with the skills needed to accomplish the
federal government's stewardship mission.
GAO CONTACT
------------------------------------------------------- Chapter 13:1.1
James Duffus III, Director, Natural Resources Management Issues,
Resources, Community, and Economic Development Division, (202)
512-7756.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 13:2
DOI01: ESTABLISH A HARDROCK
MINE RECLAMATION FUND TO
RESTORE THE ENVIRONMENT
------------------------------------------------------- Chapter 13:2.1
To address health and safety threats and environmental damage caused
by toxic metal and chemical leaching from abandoned mines, the
federal government should establish a hardrock mine reclamation fund.
ACTION ITEMS
----------------------------------------------------- Chapter 13:2.1.1
1. Legislation should be enacted to establish a new hardrock mine
reclamation fund, with restrictions placed on the purposes for which
the fund can be spent, emphasizing its use for cleanup and research,
prohibiting use for unrelated purposes, and limiting the
administrative expenses of the program.
2. DOI should establish a nationwide priority system for cleanup of
abandoned hardrock mines based on the risks involved and identified
through an inventory of mine sites.
3. In the course of formulating the administration's position on
hardrock mine reclamation, DOI should carefully review the strengths
and weaknesses of the existing coal abandoned mine land (AML)
program.
4. Using the Department of Agriculture's Forest Service and DOI's
Bureau of Mines cooperative research project as a model, DOI should
take the lead in developing an interagency program of research and
development and implementation of mine cleanup on federal lands,
beginning with a thorough inventory of mining sites.
GAO COMMENTS
----------------------------------------------------- Chapter 13:2.1.2
Generally Agree. We endorse the concept of ensuring that threats to
health and safety and environmental damage resulting from hardrock
mining are remedied. However, we have not addressed the issue of
establishing a federal program and a funding source to ensure that
past hardrock mining problems on federal, state, and private lands
are remedied.
IMPLEMENTATION
----------------------------------------------------- Chapter 13:2.1.3
Not Implemented--Action Taken. DOI staff communicated their views on
mining law reform and on various implementation issues to
congressional staff (action item 1); these views were based, in part,
on the DOI staffs' knowledge of and experiences with the existing AML
program (action item 3). Two bills--H.R. 322 and S. 775--were
introduced to amend the Mining Law of 1872 by, among other things,
establishing an abandoned mine fund. Under H.R. 322, all receipts
from royalties and holding fees would have gone into the fund; under
S. 775, one-third of these receipts would have gone into the fund.
However, the mining law was not amended because a conference
committee was unable to resolve differences between the two bills.
Efforts to amend the act during the 103rd Congress were abandoned on
September 29, 1994.
The Bureau of Land Management (BLM) has also assembled an interagency
task force within DOI to develop a departmentwide inventory of mine
sites (action item 4) and a priority system for cleaning up abandoned
mine sites (action item 2).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 13:2.1.4
Mineral Resources: Hardrock Mining Reclamation (GAO/T-RCED-93-67,
Aug. 5, 1993).
Importance of Financial Guarantees for Ensuring Reclamation of
Federal Lands (GAO/T-RCED-89-13, Mar. 7, 1989).
Federal Land Management: An Assessment of Hardrock Mining Damage
(GAO/RCED-88-123BR, Apr. 19, 1988).
Public Lands: Interior Should Ensure Against Abuses From Hardrock
Mining (GAO/RCED-86-48, Mar. 27, 1986).
DOI02: REDEFINE FEDERAL
OVERSIGHT OF COAL MINE
REGULATION
------------------------------------------------------- Chapter 13:2.2
To overcome organizational problems that inhibit an effective
state-federal relationship, federal oversight of coal mine
regulations should be redefined.
ACTION ITEMS
----------------------------------------------------- Chapter 13:2.2.1
1. DOI's Office of Surface Mining Reclamation and Enforcement (OSM),
in consultation with state mining regulators, should develop national
standards of excellence for regulatory and AML programs, establishing
goals, performance measures, and a process for evaluation of
effective performance.
2. Once this project is completed, DOI should propose legislation to
revise the distribution formula for AML grants based on program goals
and state performance.
3. By January 1995, 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 staffing
ratio.
4. The Secretary of the Interior should persuade the state of
Tennessee to submit its proposed regulatory programs to DOI, as a
first step toward assuming primacy.
5. Future appropriation bills should remove language requiring "per
state limits" on AML emergency funds. States should be required to
assume responsibility for administering their AML emergency programs.
6. The Surface Mining Control and Reclamation Act should be amended
so that the Rural Abandoned Mine Program is administered by the
states.
7. Grant funding for reclamation should be in the form of
consolidated grants, building on the existing simplified grant
program, with states given the responsibility for establishing
reclamation priorities.
GAO COMMENTS
----------------------------------------------------- Chapter 13:2.2.2
Agree. We endorse a reevaluation of the regulatory structure and the
state-federal relationship. Because this area has largely been
managed by the states with policy direction by the federal
government, achieving a balanced approach that satisfies the
divergent interests has been difficult.
IMPLEMENTATION
----------------------------------------------------- Chapter 13:2.2.3
Not Implemented--Action Taken. OSM has established a task force to
develop national standards of excellence for the AML program (action
item 1) and is reviewing the need for legislation to revise the
program (action item 2). OSM is deciding how to close or downsize
offices with declining workloads, as recommended by the NPR (action
item 3). OSM is also working with Tennessee to have the state take
over its regulatory program (action item 4). OSM has sought to
remove "per state limits" on AML emergency funds in its budget and
appropriations bills (action item 5), has attempted to reduce its
budget for the rural abandoned mine program to phase out federal
funding (action item 6), and has simplified its AML grant process
(action item 7).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 13:2.2.4
Abandoned Mine Reclamation: Interior May Have Approved State Shifts
to Noncoal Projects Prematurely (GAO/RCED-91-162, June 7, 1991).
Surface Mining: Office of Surface Mining Response to Management
Review Recommendations (GAO/RCED-89-82FS, Feb. 22, 1989).
Surface Mining: States Not Assessing and Collecting Monetary
Penalties (GAO/RCED-87-129, June 5, 1987).
Surface Mining: Interior Department and States Could Improve
Inspection Programs (GAO/RCED-87-40, Dec. 29, 1986).
DOI03: ESTABLISH A NATIONAL
SPATIAL DATA INFRASTRUCTURE
------------------------------------------------------- Chapter 13:2.3
By supporting a cross-agency coordinating effort, the federal
government can develop a coherent vision for the national spatial
data infrastructure (NSDI). (Spatial or geographic data refer to
information that can be placed on a map.) This will allow greatly
improved information analysis in a wide range of areas, including the
analysis of environmental information and the monitoring of
endangered animals and sensitive land areas.
ACTION ITEMS
----------------------------------------------------- Chapter 13:2.3.1
1. The leadership role of the 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.
2. The federal government should establish, through FGDC, a program
by June 1994 to form partnerships with state and local governments
and the private sector with the goal of having a 50-percent or higher
nonfederal cost share for new or enhanced activities.
3. FGDC should submit a schedule and funding plan to OMB by
September 1994 for completing the collection and production of
national core geospatial data by January 2000.
4. FGDC should identify thematic data sets of critical national
importance and establish priorities, standards, and a funding plan by
September 1994, based on partnerships for collection of these data.
5. By June 1994, FGDC should create a geospatial data clearinghouse,
which will use existing computer networks, to provide public access
to spatial data.
GAO COMMENTS
----------------------------------------------------- Chapter 13:2.3.2
Agree. We have reported that the use of geographic information
systems by federal agencies is growing. However, (1) many agencies
have neither official mechanisms nor programs in place to coordinate
their projects or to cooperate with other federal, state, or local
agencies and (2) most agencies have not developed written policies
for using these systems or instructions for disposing of spatial
data. Therefore, we support the development of a coherent vision for
the NSDI.
We have also found that developing cross-agency ecosystem planning
and management, as recommended by the NPR (see ENV02), will require
collecting and linking large volumes of scientific data. In
addition, large volumes of socioeconomic data must be collected,
organized, and analyzed (1) to identify important relationships
between human activities and ecological conditions and trends and (2)
to make necessary or desired trade-offs among ecological and
socioeconomic values and concerns. However, available data are often
not comparable, and large gaps in information exist. Furthermore,
there is still much uncertainty about how ecosystems
function--uncertainty that contributes to strong differences in the
interpretation of scientific evidence.
IMPLEMENTATION
----------------------------------------------------- Chapter 13:2.3.3
Partially Implemented. Although target dates for implementing
several of the action items under this recommendation have slipped by
3 to 6 months, FGDC has made significant progress in implementation.
Specifically, FGDC has implemented the action item to strengthen its
leadership role. FGDC has developed strategies for state, local,
private, and academic partnerships and has collected and made
available framework (core) and thematic data. (Framework data refer
to information that nearly all users of spatial data require to
accurately locate features on the earth's surface, including
transportation and water networks, terrain (elevation), and
administrative and sociopolitical boundaries, such as county lines.
Thematic data are traditionally not used to develop other data sets,
such as framework data, but are critical to answering questions of
national significance. Thematic data include information about
wetlands, soils, geology, land cover, endangered and threatened
species, and socioeconomic elements.)
Executive Order 12906 (Coordinating Geographic Data Acquisition and
Access: The National Spatial Data Infrastructure, Apr. 11, 1994)
provided more specific guidance to federal agencies on the NSDI and
changed certain actions and dates. FGDC is now chaired by the
Secretary of the Interior, and most agencies have elevated their
representation to the policy level (action item 1). Activities are
under way to develop strategies for partnerships with state and local
governments, the private sector, and academia. These strategies
include a Competitive Cooperative Agreements Program to provide
incentives to nonfederal parties to document and make available
existing data (action item 2).
By January 1995, FGDC is to submit a plan to OMB for collecting and
maintaining framework (core) data (action item 3). Furthermore,
under OMB Circular A-16, various agencies have been assigned
responsibilities for developing standards for different themes of
data (action item 4). Finally, a prototype of a geospatial data
clearinghouse has been established by about a dozen federal agencies.
After January 1995, all federal agencies have been instructed to
begin documenting all new data collected and to ensure that they are
consistent with a geospatial metadata standard developed and approved
by FGDC. Metadata are "data about data" that describe the content,
quality, condition, and other characteristics of data. By April
1995, federal agencies are to (1) use the clearinghouse to find data
before investing in any new data collection efforts and (2) develop a
plan for making their geospatial data available to the public (action
item 5).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 13:2.3.4
Ecosystem Management: Additional Actions Needed to Adequately Test a
Promising Approach (GAO/T-RCED-94-308, Sept. 20, 1994).
Ecosystem Management: Additional Actions Needed to Adequately Test a
Promising Approach (GAO/RCED-94-111, Aug. 16, 1994).
Geographic Information Systems: Information on Federal Use and
Coordination (GAO/IMTEC-91-72FS, Sept. 27, 1991).
DOI04: PROMOTE
ENTREPRENEURIAL MANAGEMENT
OF THE NATIONAL PARK SERVICE
------------------------------------------------------- Chapter 13:2.4
The National Park Service (NPS) should be allowed to raise additional
revenues from appropriate sources and to use a portion of the money
for investment in park infrastructure. This proposal would increase
selected park entry fees and would increase fees on park
concessioners.
ACTION ITEMS
----------------------------------------------------- Chapter 13:2.4.1
1. The Secretary of the Interior should submit legislation giving
NPS the authority to set fees at all parks subject only to broad
policy oversight.
2. NPS should explore barrier-free admissions based on automated
entry equipment and off-site vending of tickets and permits.
3. NPS should accelerate its concession reform and renewal program.
4. Legislation should be enacted to enhance the legal and financial
flexibility of NPS fund-raising.
5. NPS should continue its reform efforts to meet emerging,
long-term needs of the national parks with a holistic, new vision.
GAO COMMENTS
----------------------------------------------------- Chapter 13:2.4.2
Agree. We endorse the concept of park units' raising additional
revenues that could be used to invest in park infrastructure. Over
the past several years, we have identified an almost $2 billion
cumulative shortfall in funds for park maintenance, as well as
opportunities to (1) increase the fees that concessioners pay the
government and (2) improve the pricing of user fees at recreational
sites. However, the need to eliminate the backlog in deferred
maintenance, as well as opportunities to obtain a better return for
the sale or use of natural resources on federal lands, apply to all
federal land-managing agencies. Therefore, this recommendation
should not be limited to the National Park Service.
IMPLEMENTATION
----------------------------------------------------- Chapter 13:2.4.3
Not Implemented--Action Taken. Action is proceeding at several
levels. First, legislation to increase entrance fees and to give the
Secretary of the Interior more discretion to set entrance,
recreation, and special-use fees was introduced in both the House
(H.R. 4533) and the Senate (S. 2121). A subcommittee of the House
Committee on Natural Resources approved an amended bill on July 21,
1994. The Senate Committee on Energy and Natural Resources approved
an amended bill on September 21, 1994. However, neither of these
bills was passed before the 103rd Congress adjourned (action items 1
and 4).
Second, on July 28, 1994, the House amended and approved S. 208,
which the Senate had approved on March 22, 1994, to reform the Park
Service's concessions policy. Neither piece of legislation was
passed before the 103rd Congress adjourned (action item 3).
Third, a barrier-free admissions system was introduced this summer at
the Carlsbad Caverns National Park in New Mexico, and other systems
will be tested over the next year at three national parks--Mount
Rainier in Washington; Yellowstone in Wyoming, Montana, and Idaho;
and Olympic in Washington (action item 2).
Finally, although Congress has not continued to fund the office
established to oversee and coordinate the Park Service's
implementation of the Vail Agenda--a blueprint, or planning model,
adopted by the Park Service in 1991 to guide its management
strategies into the 21st century--the Park Service continues to study
initiatives that it should pursue to meet the long-term needs of the
parks. On September 8, 1994, it published a comprehensive Customer
Service Plan (action item 5).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 13:2.4.4
Forest Service Management: Issues to Be Considered in Developing a
New Stewardship Strategy (GAO/T-RCED-94-116, Feb. 1, 1994).
Federal Lands: Improvements Needed in Managing Short-Term
Concessioners (GAO/RCED-93-177, Sept. 14, 1993).
Federal Land: Little Progress Made in Improving Oversight of
Concessioners (GAO/T-RCED-93-42, May 27, 1993).
Forest Service: Little Assurance That Fair Market Value Fees Are
Collected From Ski Areas (GAO/RCED-93-107, Apr. 16, 1993).
Natural Resources Management Issues (GAO/OCG-93-17TR, Dec. 1992).
National Parks: Issues Involved in the Sale of the Yosemite National
Park Concessioner (GAO/RCED-92-232, Sept. 10, 1992).
Federal Lands: Improvements Needed in Managing Concessioners
(GAO/RCED-91-163, June 11, 1991).
Forest Service: Difficult Choices Face the Future of the Recreation
Program (GAO/RCED-91-115, Apr. 15, 1991).
Recreation Concessioners Operating on Federal Lands
(GAO/T-RCED-91-16, Mar. 21, 1991).
Parks and Recreation: Park Service Managers Report Shortfalls in
Maintenance Funding (GAO/RCED-88-91BR, Mar. 21, 1988).
DOI05: OBTAIN A FAIR RETURN
FOR FEDERAL RESOURCES
------------------------------------------------------- Chapter 13:2.5
The federal government should institute reforms to guarantee a fair
return for federal resources such as livestock grazing and hardrock
mining. Some of the programs regulating the commercial sale and use
of natural resources on federal lands operate at a loss to the
taxpayers and fail to provide incentives for good stewardship
practices. The administration should also develop a new fee schedule
for communications sites on DOI and Department of Agriculture lands.
ACTION ITEMS
----------------------------------------------------- Chapter 13:2.5.1
1. The administration should establish a formula for grazing of
federal land at a fee level that is fair to both the taxpayers and
the livestock permittees.
2. The administration should support hardrock mining reform
legislation.
3. The administration should develop regulations, which should be
implemented by fiscal year 1995, establishing a new rental schedule
for communications sites.
GAO COMMENTS
----------------------------------------------------- Chapter 13:2.5.2
Agree. In our view, the federal government should (1) seek a better
return for the sale or use of the mineral, renewable, and other
natural resources on its lands; (2) cover the cost of programs to a
reasonable extent and convert some programs into producers of revenue
rather than contributors to the national debt, as they are now; and
(3) provide a revenue base that can be used to better manage and
improve federal lands so that they will remain a viable public
resource in the future. In addition to addressing livestock grazing,
hardrock mining, and the leasing of communications sites on federal
lands, we have identified the need to reform federal policies and
practices on water and timber and to change the basis on which
federal land-managing agencies share revenues with states and
counties.
IMPLEMENTATION
----------------------------------------------------- Chapter 13:2.5.3
Not Implemented--Action Taken. On March 25, 1994, DOI proposed a
rule in the Federal Register to improve the management of rangeland
ecosystems and the administration of the livestock grazing program,
as well as to change grazing fees. A final rule is anticipated for
early in 1995 (action item 1).
A bill (S. 775) passed by the Senate in May 1993 to amend the Mining
Law of 1872 differed sharply from one (H.R. 322) that was passed
overwhelmingly by the House in November 1993 and was supported by the
administration. A conference committee could not resolve the
differences between the bills, and efforts to amend the act during
the 103rd Congress were abandoned on September 29, 1994 (action item
2).
DOI published proposed regulations in the Federal Register on July
12, 1994, that would establish new fees for leasing communications
sites on its lands. The period for comment ended on October 12, 1994
(action item 3).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 13:2.5.4
Water Markets: Increasing Federal Revenues Through Water Transfers
(GAO/RCED-94-164, Sept. 21, 1994).
Federal Lands: Communications Sites Are Below Fair Market Value
(GAO/RCED-94-248, July 12, 1994).
Federal Lands: Communications Sites are Below Fair Market Value
(GAO/T-RCED-94-262, July 12, 1994).
Water Transfers: More Efficient Water Use Possible, If Problems Are
Addressed (GAO/RCED-94-35, May 23, 1994).
Water Subsidies: Impact of Higher Irrigation Rates on Central Valley
Project Farmers (GAO/RCED-94-8, Apr. 19, 1994).
Forest Service Management: Issues to Be Considered in Developing a
New Stewardship Strategy (GAO/T-RCED-94-116, Feb. 1, 1994).
Natural Resources Management Issues (GAO/OCG-93-17TR, Dec. 1992).
Mineral Resources: Value of Hardrock Minerals Extracted From and
Remaining on Federal Lands (GAO/RCED-92-192, Aug. 24, 1992).
Reclamation Law: Changes Needed Before Water Service Contracts Are
Renewed (GAO/RCED-91-175, Aug. 22, 1991).
Rangeland Management: Current Formula Keeps Grazing Fees Low
(GAO/RCED-91-185BR, June 11, 1991).
Forest Service Needs to Improve Efforts to Reduce Below-Cost Timber
Sales (GAO/T-RCED-91-43, Apr. 25, 1991).
Water Subsidies: Basic Changes Needed to Avoid Abuse of the 960-Acre
Limit (GAO/RCED-90-6, Oct. 12, 1989).
Federal Land Management: The Mining Law of 1872 Needs Revision
(GAO/RCED-89-72, Mar. 10, 1989).
DOI06: RATIONALIZE FEDERAL
LAND OWNERSHIP
------------------------------------------------------- Chapter 13:2.6
DOI needs to reinvent the way it manages and acquires federal lands.
Due to historical patterns of settlement and development of this
country, adjoining federal lands often fall under the jurisdiction of
several federal agencies. To the degree possible, this should be
corrected based on the principle of ecosystem management.
ACTION ITEMS
----------------------------------------------------- Chapter 13:2.6.1
1. DOI should establish trial pilot coordinated management areas,
preferably watershed based.
2. After the pilot projects have been operating for 18 to 24 months,
DOI should evaluate their progress to determine if legislative
proposals to transfer lands between the Department of Agriculture's
Forest Service and DOI's Bureau of Land Management (BLM) on an
agencywide or limited jurisdiction are required.
GAO COMMENTS
----------------------------------------------------- Chapter 13:2.6.2
Agree. We agree with the thrust of this recommendation and note that
management of federal lands has been handicapped by the number and
diversity of agencies involved. DOI's nine highly decentralized and
autonomous agencies and the Forest Service often have overlapping
jurisdictions and different and conflicting missions. Moreover,
there is currently no system for coordinating the management of
federal lands, even when such lands are adjacent to each other and
part of a single ecosystem. DOI and the Forest Service need to
reassess the way they do business throughout their fragmented
organizations and rethink the traditional functional and
organizational alignment.
In February 1994 testimony, we concluded that federal land management
agencies need to work together and with Congress to find ways to
operate more efficiently and to manage activities and uses across
existing federal land units so as to preserve the nation's natural
resources and sustain their long-term economic productivity. We
believe that to accomplish these objectives, a coordinated
interagency strategy may be needed to link reforms being considered
by the individual federal land management agencies. The ultimate
goal of this strategy would be to coordinate and integrate the
agencies' programs, activities, and functions so that they operate as
a unit at the local level. Managing along ecological rather than
political or administrative boundaries is discussed in our August 16,
1994, report on ecosystem management.
IMPLEMENTATION
----------------------------------------------------- Chapter 13:2.6.3
Partially Implemented. Efforts by DOI and the Forest Service to
reinvent the way they manage and acquire federal lands are linked to
the agencies' efforts to implement ecosystem management (see ENV02).
In August 1994, BLM selected the Mojave/California desert in the arid
southeast corner of California as its first pilot coordinated
management area. BLM plans to identify additional pilot areas by
early 1995. The Mojave/California desert was also selected, together
with the Great Plains grasslands (in Minnesota, North Dakota, South
Dakota, and Nebraska) and Monterey Bay, as a "new initiative
laboratory" by an interagency work group formed to examine major
issues that influence the effectiveness of ecosystem management and
to make recommendations for improvements (action item 1).
The laboratories will employ a collective process to document
historical ecosystems, develop a vision of the range of desired
future conditions, and consider how current stakeholders' actions
will address key concerns. Recommendations for improvements may
require legislation or other assistance from Congress to remove
institutional and legal barriers to the use of an ecosystem approach
to environmental management. Congress passed the California Desert
Protection Act that, among other things, creates nearly 8 million
acres of wilderness areas and transfers significant portions of BLM
acreage to DOI's National Park Service (action item 2).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 13:2.6.4
Ecosystem Management: Additional Actions Needed to Adequately Test a
Promising Approach (GAO/T-RCED-94-308, Sept. 20, 1994).
Ecosystem Management: Additional Actions Needed to Adequately Test a
Promising Approach (GAO/RCED-94-111, Aug. 16, 1994).
Federal Lands: Land Acquisitions Involving Nonprofit Conservation
Organizations (GAO/RCED-94-149, June 15, 1994).
Forestry Functions: Unresolved Issues Affect Forest Service and BLM
Organizations in Western Oregon (GAO/RCED-94-124, May 17, 1994).
Forest Service Management: Issues to Be Considered in Developing a
New Stewardship Strategy (GAO/T-RCED-94-116, Feb. 1, 1994).
Federal Land Acquisition: Land Exchange Process Working but Can Be
Improved (GAO/RCED-87-9, Feb. 5, 1987).
Program to Transfer Land Between the Bureau of Land Management and
the Forest Service Has Stalled (GAO/RCED-85-21, Dec. 27, 1984).
DOI07: IMPROVE THE LAND
ACQUISITION POLICIES OF DOI
------------------------------------------------------- Chapter 13:2.7
The Secretaries of the Interior and Agriculture and the Director of
the OMB should modify the process for determining land acquisition
priorities and procedures. The new system should reflect major
objectives of federal land acquisition, including outdoor recreation
resources, resource protection, and resource and cultural heritage
protection.
ACTION ITEMS
----------------------------------------------------- Chapter 13:2.7.1
1. The Secretaries of the Interior and Agriculture and the Director
of OMB should modify the process for determining land acquisition
priorities and modify current procedures.
2. DOI should issue a series of policy directives for the National
Park Service, BLM, 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.
GAO COMMENTS
----------------------------------------------------- Chapter 13:2.7.2
Generally Agree. In our opinion, the funds available each fiscal
year for land acquisition should be allocated to the highest
priorities. This approach would require not only the establishment
of clear goals and objectives but also a consolidated ranking of
proposals from all the federal land-managing agencies.
IMPLEMENTATION
----------------------------------------------------- Chapter 13:2.7.3
Partially Implemented. DOI and Department of Agriculture officials
have met to discuss alternatives to existing federal land acquisition
procedures. Revised procedures were circulated for review and
comment within DOI and Agriculture in late June and have been
implemented (action item 1). In addition, on July 31, 1994, DOI,
Agriculture, and OMB adopted new procedures to address the issues
raised in a 1992 report by DOI's Inspector General, which the
Department's Solicitor clarified in a subsequent opinion, on land
acquisitions involving nonprofit conservation groups (action item 2).
On May 25, 1994, the House Committee on Natural Resources approved a
bill (H.R. 4476) to standardize the procedure through which the
National Park Service recommends to Congress that lands be designated
as national parks. On September 21, 1994, the Senate Committee on
Energy and Natural Resources approved a related bill (S. 471)
designed to improve the way areas are studied for possible addition
to the National Park System. Both bills lay out specific criteria to
be considered in such studies. Neither of these bills was passed
before the 103rd Congress adjourned.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 13:2.7.4
Federal Lands: Land Acquisitions Involving Nonprofit Conservation
Groups (GAO/RCED-94-149, June 15, 1994).
Federal Land Acquisition and Management Practices (GAO/RCED-81-135,
Sept. 11, 1981).
The Federal Drive to Acquire Private Lands Should Be Reassessed
(GAO/RCED-80-14, Dec. 14, 1979).
DOI08: IMPROVE MINERALS
MANAGEMENT SERVICE'S ROYALTY
COLLECTIONS
------------------------------------------------------- Chapter 13:2.8
Better management of DOI's royalty collection program would increase
revenues and improve efficiency.
ACTION ITEMS
----------------------------------------------------- Chapter 13:2.8.1
1. By fiscal year 1995, the Royalty Management Program (RMP) should
develop and implement additional computer programs to analyze and
verify transactions across the lease population.
2. The RMP should redirect personnel whose functions are reduced by
upfront compliance measures to compliance tasks with potential for
additional financial gains.
3. DOI should submit legislation similar to IRS provisions to enable
penalties to be assessed for substantial underpayments.
4. Current inconsistencies in liability issues should be resolved by
DOI and a uniform policy developed in early 1994.
5. The reinvention laboratory, 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.
GAO COMMENTS
----------------------------------------------------- Chapter 13:2.8.2
Agree. We endorse better management of DOI's strategy for auditing
royalty payors. Ideally, such a strategy would consist of systematic
and field-based activities for monitoring and correcting the major
components of the royalty equation. However, problems with DOI's
automated systems have prevented the Department from ensuring correct
reporting. Furthermore, its field-based royalty compliance audits do
not provide reasonable assurance that royalty payors comply with
applicable laws, rules, and regulations. DOI also needs to improve
its verification program for both onshore and offshore oil and gas
production.
IMPLEMENTATION
----------------------------------------------------- Chapter 13:2.8.3
Not Implemented--Action Taken. DOI's Minerals Management Service
(MMS) has identified several computer system enhancements to analyze
and verify transactions across the lease population; these
enhancements are being reviewed (action item 1). MMS has also
reassigned 20 staff positions to audit/compliance functions (action
item 2); submitted penalty legislation that passed the House in
November 1993 (H.R. 3400) but did not pass the Senate (S. 1637);
and received clearance from OMB for proposing language changes to the
penalty legislation responding to the mining industry's concerns
(action item 3). In addition, MMS and BLM have agreed on consistent
liability policies for DOI and have drafted a proposed rule (action
item 4).
In response to recommendations from a "multiconstituent laboratory,"
MMS has taken several additional steps to improve efficiency and
effectiveness. A work group has submitted a proposed rule to
streamline the allowance (royalty deduction) reporting process. A
Customer Satisfaction Study Team is evaluating the feasibility of
improving customer service through a team approach. Multiconstituent
federal and Indian valuation work groups are developing streamlined
gas valuation methodologies. MMS is also working with industry and
other federal and state agencies to implement Electronic Data
Interchange technology (action item 5).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 13:2.8.4
Royalty Compliance: Improvements Made in Interior's Audit Strategy,
but More Are Needed (GAO/RCED-93-3, Oct. 29, 1992).
Mineral Revenues: Progress Has Been Slow in Verifying Offshore Oil
and Gas Production (GAO/RCED-90-193, Aug. 31, 1990).
Mineral Revenues: Shortcomings in Onshore Federal Oil and Gas
Production Verification (GAO/RCED-90-99, June 26, 1990).
DOI09: ESTABLISH A SYSTEM
OF PERSONNEL EXCHANGES IN
DOI
------------------------------------------------------- Chapter 13:2.9
A change in management philosophy is needed to address bureaucratic
barriers at DOI. This recommendation outlines various approaches to
this problem.
ACTION ITEMS
----------------------------------------------------- Chapter 13:2.9.1
1. DOI should implement a system of in-house contracts in early
1994. The in-house contracts should assign individuals with special
skills to work as consultants to other bureaus.
2. DOI should implement a system of temporary inter-bureau details
and personnel exchanges in early 1994.
3. DOI should facilitate personnel exchanges and inter-bureau
cooperation through an improved internal communication system.
GAO COMMENTS
----------------------------------------------------- Chapter 13:2.9.2
Generally Agree. We support efforts to address the structural
barriers among DOI's autonomous bureaus and between these bureaus and
the Department of Agriculture's Forest Service. We note that pending
legislation to establish a National Biological Survey (NBS) within
DOI as an independent, nonregulatory source of information on the
nation's biological resources appears to be a step in this direction.
In the interim, the Secretary of the Interior transferred biological
research and monitoring programs from existing DOI agencies to NBS.
NBS became operational on November 11, 1993. We believe that a
similar approach could provide greater integration and increased
efficiency in the management of federal lands as well.
IMPLEMENTATION
----------------------------------------------------- Chapter 13:2.9.3
Partially Implemented. DOI has tested a system of in-house
contracts/consultants and a system of personnel exchanges in three of
its bureaus/offices (action items 1 and 2). It has drafted a
Personnel Management Bulletin that lays out the methodology and
approach for implementing an in-house contract program and
interbureau temporary details and personnel exchanges. DOI's bureaus
have reviewed and commented on the draft. The Secretary of the
Interior is expected to issue a statement supporting the program's
efforts; however, the issuance date has not been established. To
improve communication and interbureau cooperation, DOI plans to
periodically issue a newsletter, the first issue of which was
published in October 1994 (action item 3). Furthermore, over 49,000
DOI employees now have access to electronic mail.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 13:2.9.4
Ecosystem Management: Additional Actions Needed to Adequately Test a
Promising Approach (GAO/T-RCED-94-308, Sept. 20, 1994).
Ecosystem Management: Additional Actions Needed to Adequately Test a
Promising Approach (GAO/RCED-94-111, Aug. 16, 1994).
Forestry Functions: Unresolved Issues Affect Forest Service and BLM
Organizations in Western Oregon (GAO/RCED-94-124, May 17, 1994).
Forest Service Management: Issues to Be Considered in Developing a
New Stewardship Strategy (GAO/T-RCED-94-116, Feb. 1, 1994).
DOI10: CONSOLIDATE
ADMINISTRATIVE AND
PROGRAMMATIC FUNCTIONS IN
DOI
------------------------------------------------------ Chapter 13:2.10
To manage its bureaus effectively, DOI needs to reduce duplicative
services. By consolidating administrative and programmatic
functions, DOI can improve customer service, promote efficiency, and
reduce costs.
ACTION ITEMS
---------------------------------------------------- Chapter 13:2.10.1
1. Within 6 months, all DOI bureaus and offices should identify
parallel administrative, programmatic, and public outreach functions
in areas where offices are collocated.
2. Over the next 3 fiscal years, DOI should use the information
identified by the bureaus to consolidate offices, increase the use of
Consolidated Administrative Support Units (CASU) and Departmental
Administrative Service Centers (DASC), and designate lead bureaus to
provide commonly needed services wherever feasible.
GAO COMMENTS
---------------------------------------------------- Chapter 13:2.10.2
Agree. Our work has shown that budgetary constraints and scientific
findings will challenge federal agencies as never before to find new
and different ways to achieve their programs' goals with fewer
resources and to realize their visions for the future in an
affordable manner. For example, we believe that federal land
management agencies in DOI and the Department of Agriculture need to
work with Congress to find ways to operate more efficiently and to
manage activities and uses across existing federal land units so as
to preserve the nation's natural resources and sustain their
long-term economic productivity. We believe that to accomplish these
objectives, a coordinated interagency strategy may be needed to link
reforms being considered by federal land management agencies. The
ultimate goal of this strategy would be to coordinate and integrate
the programs, activities, and functions of federal land management
agencies so that they operate as a unit at the local level.
We also support efforts to consolidate administrative functions. For
example, in a 1988 report we noted that duplication of administrative
functions reduced program efficiency for environmental studies of the
outer continental shelf in Alaska. We recommended, and DOI
implemented, an alternative that consolidated these functions, saving
about $800,000 in fiscal years 1991 and 1992.
IMPLEMENTATION
---------------------------------------------------- Chapter 13:2.10.3
Not Implemented--Action Taken. DOI submitted its initial
Streamlining Plan to OMB in January 1994. This plan discussed DOI's
streamlining objectives, principles, strategy, implementation steps,
concerns, time line, and reduction targets. Next, in April 1994, DOI
developed a consolidated approach for streamlining personnel
resources in the Department. After requesting and receiving detailed
streamlining plans from its bureaus (action item 1), DOI revised and,
on June 30, 1994, submitted to OMB a more detailed and comprehensive
streamlining plan that focuses on implementation through fiscal year
1996 (action item 2). A plan detailing DOI's strategy for
streamlining in fiscal years 1997 through 1999 was submitted to OMB
in October 1994.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 13:2.10.4
Ecosystem Management: Additional Actions Needed to Adequately Test a
Promising Approach (GAO/T-RCED-94-308, Sept. 20, 1994).
Ecosystem Management: Additional Actions Needed to Adequately Test a
Promising Approach (GAO/RCED-94-111, Aug. 16, 1994).
Forestry Functions: Unresolved Issues Affect Forest Service and BLM
Organizations in Western Oregon (GAO/RCED-94-124, May 17, 1994).
Forest Service Management: Issues to Be Considered in Developing a
New Stewardship Strategy (GAO/T-RCED-94-116, Feb. 1, 1994).
Offshore Oil and Gas: Environmental Studies Program Meets Most User
Needs but Changes Needed (GAO/RCED-88-104, June 29, 1988).
DOI11: STREAMLINE
MANAGEMENT SUPPORT SYSTEMS
IN DOI
------------------------------------------------------ Chapter 13:2.11
To create a quality management culture, DOI should streamline its
management support systems, including telecommunications,
procurement, financial management, and paperwork control.
ACTION ITEMS
---------------------------------------------------- Chapter 13:2.11.1
1. DOI should implement standard practices for electronic
communications and an agencywide data network strategy with the
following steps:
-- agree upon a conceptual framework identifying networks, common
databases (e.g., payroll), and a network architecture;
-- establish ways to share data across bureaus;
-- require data centers to use compatible communications software;
-- require bureaus to optimize communications capacity (e.g., T-1
circuit bandwidth and video-conferencing room time);
-- shift to Government Open Systems' Interconnection Profiles;
-- standardize imaging systems across the Department for
transmission of financial data, land records, rules and
regulations, library material, and basic review documents to
reduce paperwork in the workplace; and
-- standardize telephone system capability across bureaus to
provide timesaving components and to improve quality of direct
communication.
2. DOI should ensure that its data network initiatives all tie into
a departmental data network.
3. DOI should establish a council to review all internal,
self-imposed procurement regulations, eliminate as many of them as
possible, evaluate any requests by individual departmental
agencies/bureaus to retain specific rules, and determine the
advisability of rescinding the authority of agencies/bureaus to issue
restrictive supplements to federal acquisition guidelines.
4. To guarantee the compatibility of its financial and acquisition
systems, DOI should make the Federal Financial System (FFS) interface
capacity a top priority in the development of DOI's Electronic
Acquisition System.
5. DOI should develop and implement a strategic plan for making the
FFS readily available to field users through alternative system
environments such as mini-computers and local area networks.
6. DOI should expand the remote access and data entry capabilities
of FFS users to certify payments and streamline payment processing by
implementing Treasury's Vendor Express Program (Electronic Payment
System) and Electronic Certification System.
7. DOI should streamline the processing of bills by establishing a
separate appropriation account within the Department to pay common
costs rather than issuing separate billings to each bureau.
8. DOI should take measures to revise existing correspondence
guidelines and reduce excessive and unnecessary review of
correspondence.
9. DOI should use its semiannual regulatory agenda to establish
dates for formulation and publication of rules that can be achieved
within agency resource constraints.
10. DOI should identify all parties that may be interested in a
rulemaking and involve them early in the process.
GAO COMMENTS
---------------------------------------------------- Chapter 13:2.11.2
Generally Agree. We support efforts to improve DOI's management
support systems. Our previous work has identified instances of
long-standing internal control weaknesses within DOI, and DOI's
Inspector General has found inadequate accountability for the Bureau
of Land Management's personal property.
IMPLEMENTATION
---------------------------------------------------- Chapter 13:2.11.3
Not Implemented--Action Taken. To implement this recommendation, DOI
has taken or initiated several actions. In June 1994, it completed a
networking concept paper that lays out a data network strategy for
all organizational components, and in August 1994 it completed a
communications guide to assist in evaluating and acquiring hardware
and software applications at administrative service centers (action
item 1). A basic data network is now available for use by the
bureaus, and an enhanced data network will be available as certain
planned steps for action item 1 are completed (action item 2).
To implement Executive Order 12861, which directs all federal
agencies to reduce the number of civilian internal management
regulations that are not required by law, DOI established two groups
to oversee the Department's effort. These groups drafted an initial
plan for reducing the number of regulations. The first cycle of
regulatory reduction occurred in May 1994, and further reductions are
planned (action item 3).
In June 1994, DOI drafted and distributed a concept paper to its
bureaus for comment; this paper specifies the framework for an
interface of financial and procurement data (action item 4). DOI is
making the FFS available to field users and expanding the system's
capabilities (action items 5 and 6) through a broader DOI initiative
to improve the effectiveness of its financial management. A final
report for the first phase of its initiative, called the Financial
Management Best Practices Project, was distributed to DOI financial
managers on September 16, 1994. DOI studied establishing a separate
appropriation account to pay common costs (action item 7) but decided
in July 1994 not to do so. It will, however, make billing
improvements, such as billing costs quarterly instead of monthly, to
address some concerns.
DOI's Office of Executive Secretariat has purchased personal
computers and plans to purchase software to track and control the
review of correspondence (action item 8). In response to Executive
Order 12866 on regulatory planning and review, in March 1994, DOI
submitted a report to OMB on streamlining the regulatory process in
DOI. Furthermore, DOI drafted a regulatory plan for submission to
OMB that describes DOI's most significant regulatory initiatives for
1995 (action item 9). Finally, the Office of Regulatory Affairs
developed an alert system that informs potentially interested DOI
parties of upcoming rulemakings, thereby providing them with an
opportunity to participate at the beginning of the process (action
item 10).
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 13:2.11.4
Ecosystem Management: Additional Actions Needed to Adequately Test a
Promising Approach (GAO/T-RCED-94-308, Sept. 20, 1994).
Ecosystem Management: Additional Actions Needed to Adequately Test a
Promising Approach (GAO/RCED-94-111, Aug. 16, 1994).
Forestry Functions: Unresolved Issues Affect Forest Service and BLM
Organizations in Western Oregon (GAO/RCED-94-124, May 17, 1994).
Forest Service Management: Issues to Be Considered in Developing a
New Stewardship Strategy (GAO/T-RCED-94-116, Feb. 1, 1994).
Bureau of Indian Affairs: Long-Standing Internal Control Weaknesses
Warrant Congressional Attention (GAO/RCED-92-118, May 8, 1992).
Management of Artwork: Steps Taken to Preserve and Protect Bureau of
Reclamation's Collection (GAO/RCED-92-92, Feb. 28, 1992).
DOI12: CREATE A NEW MISSION
FOR THE BUREAU OF
RECLAMATION
------------------------------------------------------ Chapter 13:2.12
The Bureau of Reclamation (BOR) needs to redefine its mission toward
new environmental priorities and clarify its role in water
management. The original mission to develop water resources and
provide for economic development of the West is almost complete.
ACTION ITEMS
---------------------------------------------------- Chapter 13:2.12.1
1. By the beginning of fiscal year 1995, BOR should develop a new
mission which assumes a leadership role in western water policy and
focuses on water management functions.
2. BOR should complete construction of approved projects, review
personnel needs, and reduce full-time equivalents and/or redirect
skilled personnel to other DOI priorities.
3. BOR should develop legislation to sell or transfer title of all
distribution and drainage facilities to state or local water user
organizational entities (such as irrigation districts).
4. The existing Rehabilitation and Betterment Act and Distribution
System Loan Act should be repealed and the Small Reclamation Projects
Act amended to eliminate the provision making irrigation a required
project component.
5. BOR should implement internal controls to ensure the federal
government recovers an equitable share of its financing cost for
water use transferred from irrigation to municipal and industrial
purposes.
GAO COMMENTS
---------------------------------------------------- Chapter 13:2.12.2
Agree. We agree that Reclamation's era of dam building is over and
support efforts to downsize the agency or change its mission.
However, previous proposals to cut Reclamation's workforce have not
been successful, and history has shown that any change must take
place with the full involvement of Congress. In addition, the
development of a long-term framework for water resources management,
development, and protection must be consistent with DOI's efforts to
implement other NPR recommendations, such as rationalizing federal
land ownership (DOI06) and consolidating administrative and
programmatic functions (DOI10).
Although we have not thoroughly reviewed Reclamation's efforts to
develop a strategic plan and long-term framework for water resources
management, development, and protection, we have examined several of
the issues cited in the action items for implementing this
recommendation. For example, we have issued products on the need to
improve water management, reduce subsidies, and use market-based
incentives to increase federal revenues and protect natural
resources.
IMPLEMENTATION
---------------------------------------------------- Chapter 13:2.12.3
Partially Implemented. Reclamation has developed a new mission
statement focusing on western water policy and water management
functions (action item 1). In accordance with its new mission,
Reclamation was reorganized (Secretary of the Interior Order 3179,
Apr. 13, 1994) and its staffing was realigned, downgraded, or
reduced (action item 2).
Reclamation is drafting legislation to sell or transfer certain
facilities to users (action item 3) and is evaluating legislative
proposals for eliminating irrigation as a required project component
(action item 4). Finally, Reclamation has prepared draft policy
memorandums and sent draft regulations to the Federal Register for
comment. These regulations would ensure the recovery of federal
financing costs for water use (action item 5).
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 13:2.12.4
Water Markets: Increasing Federal Revenues Through Water Transfers
(GAO/RCED-94-164, Sept. 21, 1994).
Water Transfers: More Efficient Water Use Possible, If Problems Are
Addressed (GAO/RCED-94-35, May 23, 1994).
Water Subsidies: Impact of Higher Irrigation Rates on Central Valley
Project Farmers (GAO/RCED-94-8, Apr. 19, 1994).
Bureau of Reclamation: Information on the Federal Financial
Commitment and Repayment Status of the Central Arizona Project
(GAO/T-RCED-94-92, Dec. 10, 1993).
Natural Resources Management: Issues to Be Considered by the
Congress and Administration (GAO/T-RCED-93-5, Feb. 2, 1993).
Natural Resources Management Issues (GAO/OCG-93-17TR, Dec. 1992).
Bureau of Reclamation: Central Valley Project Cost Allocation
Overdue and New Method Needed (GAO/RCED-92-74, Mar. 31, 1992).
Reclamation Law: Changes Needed Before Water Service Contracts Are
Renewed (GAO/T-RCED-92-13, Oct. 29, 1991).
Water Subsidies: Views on Proposed Reclamation Reform Legislation
(GAO/T-RCED-91-90, Sept. 12, 1991).
Reclamation Law: Changes Needed Before Water Service Contracts Are
Renewed (GAO/RCED-91-175, Aug. 22, 1991).
Basic Changes Needed to Avoid Abuse of the 960-Acre Limit
(GAO/T-RCED-90-100, July 31, 1990).
Water Subsidies: The Westhaven Trust Reinforces the Need to Change
Reclamation Law (GAO/RCED-90-198, June 5, 1990).
Water Resources: Basic Changes Needed to Avoid Abuse of the 960-Acre
Limit (GAO/RCED-90-6, Oct. 12, 1989).
DOI13: IMPROVE THE FEDERAL
HELIUM PROGRAM
------------------------------------------------------ Chapter 13:2.13
The federal government needs to reexamine its role in the federal
helium program. The program can be run more efficiently, reducing
outlays by federal helium customers and increasing revenue. To
obtain maximum benefit from helium operations, the government should
cancel the helium debt, reduce costs, increase efficiencies in helium
operations, and increase sales of crude helium as market conditions
permit.
ACTION ITEMS
---------------------------------------------------- Chapter 13:2.13.1
1. The Helium Act of 1960 should be amended to cancel the
outstanding principal and interest of the helium debt.
2. Coincident with debt elimination, the Bureau of Mines (BOM)
should reduce prices.
3. BOM should reduce costs and increase efficiencies by
discontinuing operations such as small cylinder filling, maintenance,
and testing, and other nonrevenue producing operations.
4. BOM should increase fees charged to private industry for storage,
transmission, and withdrawal of privately owned helium stored in the
government reservoir, increasing revenues by $1 million.
5. BOM should increase sales of crude helium from the reserve to
private businesses as market conditions permit.
GAO COMMENTS
---------------------------------------------------- Chapter 13:2.13.2
Generally Agree. We agree that because conditions have changed since
the Helium Act of 1960 was passed, the act's objectives should be
reassessed. We have recommended canceling the helium debt because
doing so would not adversely affect the federal budget and would
allow for a more realistic assessment of what the federal
government's role should be in meeting federal helium needs. In
addition, we think that before the act is altered to address the
changes that have occurred, consideration must be given to the
interrelationship of the act's objectives. For example, a decision
to sell the federal helium inventory would probably put an end to the
private crude helium industry. We have not examined the efficiency
of federal helium operations.
IMPLEMENTATION
---------------------------------------------------- Chapter 13:2.13.3
Not Implemented--Action Taken. Legislation proposed by BOM to cancel
the helium debt and reduce helium prices was not enacted during the
103rd Congress (action items 1 and 2). BOM notified its customers
that it would no longer be filling small cylinders as of July 1, 1994
(action item 3); is reviewing existing storage contracts (about half
of which expired at the end of fiscal year 1994) to determine
whether, and if so, how, storage fees can be increased (action item
4); and has drafted a Federal Register notice of intent to increase
federal helium sales (action item 5).
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 13:2.13.4
Mineral Resources: H.R. 3967--A Bill to Change How Federal Needs
for Helium Are Met (GAO/T-RCED-94-183, Apr. 19, 1994).
Mineral Resources: Meeting Federal Needs for Helium
(GAO/T-RCED-93-44, May 20, 1993).
Mineral Resources: Meeting Federal Needs for Helium (GAO/RCED-93-1,
Oct. 29, 1992).
Mineral Resources: Federal Helium Purity Should Be Maintained
(GAO/RCED-92-44, Nov. 8, 1991).
DOI14: ENHANCE
ENVIRONMENTAL MANAGEMENT BY
REMEDIATING HAZARDOUS
MATERIAL SITES
------------------------------------------------------ Chapter 13:2.14
The time is right to integrate skills across bureau boundaries in the
remediation of DOI's hazardous materials sites. The high cost of
remediation requires DOI to make maximum use of existing resources.
ACTION ITEMS
---------------------------------------------------- Chapter 13:2.14.1
1. DOI should integrate managerial and scientific expertise in
cooperative, cross-bureau approaches to hazardous materials site
assessment and remediation.
2. DOI should designate several hazardous materials sites as pilot
projects for cooperative, multibureau assessments to develop
remediation plans.
3. DOI should establish a legal strike force by the end of 1994 to
address barriers to cleanup.
GAO COMMENTS
---------------------------------------------------- Chapter 13:2.14.2
Agree. The pace of assessing and evaluating federal hazardous waste
sites has been slow. We think that DOI and EPA should work together
to identify and take action to remediate sites. The high cost of
remediation makes it imperative that DOI make the best use of its
resources across bureau boundaries.
IMPLEMENTATION
---------------------------------------------------- Chapter 13:2.14.3
Not Implemented--Action Taken. At its second annual conference on
hazardous materials management, DOI held a plenary session to solicit
a multibureau and interdisciplinary approach to site identification,
assessment, and remediation (action item 1). It also established a
task force that developed an action plan to identify, assess, and
recommend sites for remediation (action item 2) and has begun (with
on-board legal staff) to clarify liability questions and to seek
delegation of enforcement authority against potentially responsible
parties (action item 3).
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 13:2.14.4
Superfund: Backlog of Unevaluated Federal Facilities Slows Cleanup
Efforts (GAO/RCED-93-119, July 20, 1993).
DEPARTMENT OF JUSTICE (DOJ)
=========================================================== Chapter 14
OVERALL SUMMARY
--------------------------------------------------------- Chapter 14:1
The Department of Justice has fully implemented one NPR
recommendation and either partially implemented or taken action on
the other NPR recommendations for which it is responsible. Justice
has fully implemented the recommendation to make civil fraud recovery
a priority and to take steps to improve its white collar fraud
enforcement. For many of the recommendations, Justice's actions have
included such efforts as issuing resolutions, enhancing communication
and coordination, awarding contracts, drafting new agency policies,
developing proposals and pilot testing implementation plans. Several
recommendations on which Justice has taken action are expected to be
implemented within the next year or two.
To improve the coordination and structure of federal law enforcement
agencies, the Attorney General established the Office of
Investigative Agency Policies (OIAP). OIAP is responsible for
resolving operational issues among the Justice's investigative
agencies where there is overlapping jurisdiction and for advising the
Attorney General regarding administrative, budgetary, and personnel
matters involving these agencies. While the creation of the OIAP
within Justice appears to be a positive step toward improving
coordination of law enforcement activities within the Department, it
does not affect Department of the Treasury investigative agencies or
other federal investigative agencies outside of Justice.
Several recommendations were not within Justice's authority to
implement, so the Department drafted legislation. Implementation of
these recommendations will be determined through the legislative
process.
GAO CONTACT
------------------------------------------------------- Chapter 14:1.1
Norman J. Rabkin, Director, Administration of Justice Issues,
General Government Division, (202) 512-5156.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 14:2
DOJ01: IMPROVE THE
COORDINATION AND STRUCTURE
OF FEDERAL LAW ENFORCEMENT
AGENCIES
------------------------------------------------------- Chapter 14:2.1
NPR recommends the designation of the Attorney General as the
Director of Law Enforcement to coordinate federal law enforcement
efforts. It also recommends changes in the alignment of federal law
enforcement responsibilities.
ACTION ITEMS
----------------------------------------------------- Chapter 14:2.1.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 14:2.1.2
Generally Agree. We support the need for greater coordination of the
numerous agencies involved in federal law enforcement. The
decentralized operations, including the 94 U.S. Attorneys and the
various investigative agencies within Justice and Treasury,
complicate efforts by the Department of Justice to coordinate and
direct a wide variety of initiatives and programs to fight crime. We
have not taken a position as to whether the various law enforcement
agencies should be consolidated into one or more agencies.
IMPLEMENTATION
----------------------------------------------------- Chapter 14:2.1.3
Other. In November 1993, the Attorney General established the Office
of Investigative Agency Policies (OIAP) to improve coordination among
its law enforcement agencies, reduce duplication, and better utilize
investigative resources. OIAP is headed by a Director--currently the
Director of the Federal Bureau of Investigation (FBI)--appointed by
the Attorney General from among the heads of the affected
investigative agencies--FBI, Drug Enforcement Administration (DEA),
U.S. Marshals Service, and Immigration and Naturalization Service
(INS)--and Justice's Criminal Division. OIAP is responsible for
resolving operational issues among the Justice's investigative
agencies where there is overlapping jurisdiction and for advising the
Attorney General regarding administrative, budgetary, and personnel
matters involving these agencies. Among other things, OIAP has
issued resolutions and begun taking actions to improve within Justice
the (1) use and sharing of federal drug intelligence, (2)
coordination of violent crime activities, (3) coordination of the
budget requests of the various investigative agencies, and (4)
location and use of Justice field offices and resources.
According to information obtained from Treasury officials, the
Department also has begun taking several related actions to improve
coordination among its investigative agencies as well as with Justice
agencies. Specifically, Treasury (1) recently established an under
secretary position to coordinate its law enforcement activities, (2)
is reorganizing its enforcement bureaus to be more mission specific,
(3) has developed some interagency memoranda of understanding, and
(4) is participating in task forces with FBI.
While the creation of OIAP within Justice appears to be consistent
with the underlying intent of the recommendation and a positive step
toward improving coordination of law enforcement activities within
the Department, OIAP does not have authority over and generally does
not affect Treasury investigative agencies or other non-Justice
federal investigative agencies. Moreover, according to Justice,
there have been no further actions on this recommendation pending
NPR's issuance of the accompanying report. Also, although Treasury
apparently has taken some actions intended to improve coordination
among its investigative agencies and with Justice agencies, we were
unable to obtain sufficiently detailed information to assess those
actions.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 14:2.1.4
Bank and Thrift Failures: The Government Could Do More to Pursue
Fraud and Wrongdoing (GAO/T-GGD-93-1, Jan. 28, 1993).
Bank and Thrift Criminal Fraud: The Federal Commitment Could Be
Broadened (GAO/GGD-93-48, Jan. 8, 1993).
Justice Issues (GAO/OCG-93-23TR, Dec. 1992).
Bank and Thrift Fraud: Overview of the Federal Government's Response
(GAO/T-GGD-92-12, Feb. 6, 1992).
War on Drugs: Information Management Poses Formidable Challenges
(GAO//IMTEC-91-40, May 31, 1991).
Justice Department: Coordination Between DEA and the FBI
(GAO/GGD-90-59, Mar. 21, 1990).
DOJ02: IMPROVE BORDER
MANAGEMENT
------------------------------------------------------- Chapter 14:2.2
Federal border management should be significantly improved. NPR
recommends a series of actions to be taken by Customs and INS to make
these improvements.
ACTION ITEMS
----------------------------------------------------- Chapter 14:2.2.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 14:2.2.2
Agree. Customs and INS have a long history of interagency rivalry,
poor coordination, and ineffective cooperation, despite sharing
responsibility for primary inspections at land border ports of entry.
We have recommended that OMB, working with the Treasury, Justice, and
State Departments, develop a proposal for ending the dual management
of border inspections.
IMPLEMENTATION
----------------------------------------------------- Chapter 14:2.2.3
Not Implemented--Action Taken. INS and Customs are working on five
cooperative areas: coordinated shift scheduling; special operations;
cross training; joint performance standards; and development of port
quality improvement committees. However, at this time there is no
indication from INS or Customs that they are working on a strategic
improvement plan or that the actions they are taking will
comprehensively address previously identified problems.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 14:2.2.4
Customs Service and INS: Dual Management Structure for Border
Inspections Should Be Ended (GAO/GGD-93-111, June 30, 1993).
DOJ03: REDIRECT AND BETTER
COORDINATE RESOURCES
DEDICATED TO INTERDICTION OF
DRUGS
------------------------------------------------------- Chapter 14:2.3
This recommendation outlines changes that can be made to better
coordinate federal programs directed at the air interdiction of
drugs.
ACTION ITEMS
----------------------------------------------------- Chapter 14:2.3.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 14:2.3.2
Agree. Given worldwide drug production capacity, domestic demand,
and the resourcefulness of drug smugglers to adapt to U.S.
enforcement initiatives, the overall availability of drugs in this
country has not been diminished despite substantial increases in air
interdiction efforts and related drug seizures. The commitment of
resources should not be made without considering the potential
effectiveness of alternative efforts, both supply and demand, and
should be based on achieving measurable goals. Also, to better
coordinate agency efforts, improvements in information system
interoperability, data integrity, security, and overall intelligence
information management are needed.
IMPLEMENTATION
----------------------------------------------------- Chapter 14:2.3.3
Not Implemented--Action Taken. The recommended changes have not been
implemented, but several agency actions have been taken. Treasury
and Justice have enhanced their communication and coordination on
interdiction matters. An example of the enhanced cooperation is the
regular communication on interdiction matters between the Treasury's
Under Secretary for Enforcement and the Deputy Attorney General.
Justice has created the OIAP to strengthen coordination among FBI,
DEA, INS, and the Marshals Service. Also, the FBI and DEA have
developed a common drug database to facilitate sharing of
information.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 14:2.3.4
Drug Control: Reauthorization of the Office of National Drug Control
Policy (GAO/GGD-93-144, September 29, 1993).
Drug Control: Heavy Investment in Military Surveillance Is Not
Paying Off (GAO/NSIAD-93-220, Sept. 1, 1993).
War on Drugs: Information Management Poses Formidable Challenges
(GAO/IMTEC-91-40, May 31, 1991).
Drug Interdiction: Funding Continues to Increase but Program
Effectiveness Is Unknown (GAO/GGD-91-10, Dec. 11, 1990).
Drug Control: Anti-Drug Efforts in the Bahamas (GAO/GGD-90-42, Mar.
8, 1990).
Drug Smuggling: Capabilities for Interdicting Private Aircraft Are
Limited and Costly (GAO/GGD-89-93, June 9, 1989).
DOJ04: IMPROVE DEPARTMENT
OF JUSTICE DEBT COLLECTION
EFFORTS
------------------------------------------------------- Chapter 14:2.4
This recommendation would make improvements in the Justice debt
collection effort, including giving the Department the ability to
retain a small percentage of debts collected and allowing Justice to
credit its working capital fund with a percentage of debt collections
to be used for the creation of a centralized debt tracking and
information system.
ACTION ITEMS
----------------------------------------------------- Chapter 14:2.4.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 14:2.4.2
Agree. We agree with the recommendation's objectives of enhancing
Justice's ability to make improvements in its debt collection effort.
In October 1993, Congress enacted legislation allowing Justice to
credit to its working capital fund up to 3 percent of all amounts
collected pursuant to its civil debt collection activity. Justice
can use these funds to pay for costs of processing and tracking debt
collection litigation.
IMPLEMENTATION
----------------------------------------------------- Chapter 14:2.4.3
Partially Implemented. In November 1993, Justice awarded a contract
to Data Transformation Corporation to develop and implement a
financial litigation and collection management information system.
The system will be similar to the COLLECTOR system which is presently
used to track litigation and debt collection activities in 7 of the
94 U.S. Attorney Offices. Justice, using another private
contractor, Ogden Government Services, is testing the system to
identify system strengths and weaknesses. Justice has selected the
U.S. Attorneys Office in the District of Columbia as the first site
for the new system and plans to implement the system nationally on a
incremental basis during 1994. In addition, Justice has expanded its
pilot test of using private attorneys to collect civil debts from 10
to 15 district offices.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 14:2.4.4
Bank and Thrift Criminal Fraud: The Federal Commitment Could Be
Broadened (GAO/GGD-93-48, Jan. 8, 1993).
Bank and Thrift Fraud: Overview of the Federal Government's Response
(GAO/T-GGD-92-12, Feb. 6, 1992).
Financial Management: INS Lacks Accountability and Controls Over Its
Resources (GAO/AFMD-91-20, Jan. 24, 1991).
U.S. Department of Justice: Overview of Civil and Criminal Debt
Collection Efforts (GAO/T-GGD-90-62, July 31, 1990).
DOJ05: IMPROVE THE BUREAU
OF PRISONS EDUCATION, JOB
TRAINING, AND FINANCIAL
RESPONSIBILITIES PROGRAMS
------------------------------------------------------- Chapter 14:2.5
NPR makes a series of recommendations for improving prison education,
training, and inmate financial responsibility policies.
ACTION ITEMS
----------------------------------------------------- Chapter 14:2.5.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 14:2.5.2
Generally Agree. We agree that the Bureau of Prisons (BOP) should
strengthen its inmate education and training programs. Many inmates
leave prison without marketable job skills, English language
proficiency, or completing a secondary education, yet are expected to
become assimilated into society, i.e., become law-abiding productive
citizens. We have not examined inmate financial responsibility
policies and have no comment on those recommendations.
IMPLEMENTATION
----------------------------------------------------- Chapter 14:2.5.3
Partially Implemented. To further the education of inmates working
in BOP labor programs (e.g., help inmates complete a GED diploma),
BOP has drafted a program statement instructing institutions to
increase the number of half-day work and education programs. The
program statement is to be implemented by December 1995.
To provide increased work opportunities through job training, BOP has
set up a recycling factory and increased the number of inmates
participating in public works programs. Other planned changes are
dependent on legislative action. For example, to expand work
opportunities, BOP has sought legislation authorizing it to develop
additional markets for its prison industry program. Such statutory
language was introduced and subsequently dropped from H.R. 3400.
Also, legislative action is required to expand community service
initiatives beyond federal projects.
Similarly, expansion of inmate financial responsibilities requires
legislative action. Statutory language to charge a nominal user fee
for prison health care (one aspect of the financial responsibility
programs) was prepared by DOJ but was dropped from H.R. 3400.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 14:2.5.4
BOP Trust Funds (GAO/GGD-94-149R, June 27, 1994).
Federal Prisons: Inmate and Staff Views on Education and Work
Training Programs (GAO/GGD-93-33, Jan. 19, 1993).
DOJ06: IMPROVE THE
MANAGEMENT OF FEDERAL ASSETS
TARGETED FOR DISPOSITION
------------------------------------------------------- Chapter 14:2.6
Improvements are needed in the methods by which the federal
government disposes of various assets.
ACTION ITEMS
----------------------------------------------------- Chapter 14:2.6.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 14:2.6.2
Generally Agree. We have identified the need for improvements in
asset management and disposition activities by several agencies. We
are continuing to assess asset management and disposition activities
of selected agencies. We have work in progress to address possible
duplication of resources within the Department of Justice and
Treasury asset forfeiture programs. Also, we are studying the
feasibility of a single federal agency for disposing real property
from four agencies: Housing and Urban Development, Farmers Home
Administration, Federal Deposit Insurance Corporation, and Resolution
Trust Corporation (RTC). We will also identify recent federal
government efforts to improve coordination among asset disposition
entities.
IMPLEMENTATION
----------------------------------------------------- Chapter 14:2.6.3
Partially Implemented. Some actions have been taken to implement the
NPR recommendation. For example, the Departments of Justice and
Treasury have agreed to jointly develop and implement a seized
property tracking system to be used by all Justice and Treasury
agencies as well as several other agencies.
RTC has taken actions to improve asset disposition by acting on the
21 management reforms mandated by the RTC Completion Act of December
1993. Three of these reforms specifically address asset disposition.
Another significant action to improve asset disposition is being
taken by the Department of Treasury and the General Services
Administration. They are leading a pilot project designed to improve
coordination between 11 federal agencies responsible for disposing of
real property. The project has included multi-agency sales and
marketing events, and development of standards for program
performance.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 14:2.6.4
RTC: Interim Report on the Management Reforms in the RTC Completion
Act (GAO/GGD-94-114, June 30, 1994).
Asset Forfeiture Programs (GAO/HR-93-17, Dec. 1992).
Resolution Trust Corporation (GAO/HR-93-4, Dec. 1992).
Tax Administration: IRS' Management of Seized Assets
(GAO/T-GGD-92-65, Sept. 24, 1992).
Real Property Dispositions: Flexibility Afforded Agencies to Meet
Disposition Objectives Varies (GAO/GGD-92-144FS, Sept. 18, 1992).
Asset Management: Governmentwide Asset Disposition Activities
(GAO/GGD-91-139FS, Sept. 27, 1991).
DOJ07: REDUCE THE
DUPLICATION OF DRUG
INTELLIGENCE SYSTEMS AND
IMPROVE COMPUTER SECURITY
------------------------------------------------------- Chapter 14:2.7
NPR recommends several changes to eliminate duplication in the
federal drug intelligence system.
ACTION ITEMS
----------------------------------------------------- Chapter 14:2.7.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 14:2.7.2
Generally Agree. We generally agree with the recommendation's
objectives of eliminating duplication and improving coordination in
federal drug intelligence. While NPR has recommended the position of
Director of Law Enforcement to manage the national counternarcotics
program, such a position has not yet been established. Therefore,
there is little detail provided on the roles and responsibilities of
the office and how it will manage such an effort. Overlapping
responsibilities among the numerous law enforcement and defense
agencies result in fragmentation and duplication. NPR may want to
further describe how the Director of Law Enforcement will improve
coordination among such agencies as Justice, Treasury, and Defense.
IMPLEMENTATION
----------------------------------------------------- Chapter 14:2.7.3
Not Implemented--Action Taken. The Attorney General has created the
OIAP within the Department of Justice (28 C.F.R. O.17). This office
was created to increase efficiency within the Department by
coordinating specified activities of Justice's criminal investigative
components. The Director of the FBI serves as the Director of OIAP.
OIAP, in a February 1994 resolution, acknowledged that law
enforcement agencies have not maximized the sharing of information
and coordination of activities in the drug intelligence arena. To
address this concern, three actions were recommended. First, the FBI
and DEA are to create a common drug database to consist of
information contained in those agencies' existing databases. Second,
the DEA/Customs El Paso Intelligence Center (EPIC) Advisory Board is
to consider the FBI's request for appointment of an FBI
representative as a Deputy Director of EPIC. Third, the National
Drug Intelligence Center (NDIC) Director is to coordinate strategic
drug intelligence initiatives with all appropriate Justice law
enforcement agencies. None of these recommended actions has taken
place.
Treasury officials said they have been cooperating with Justice in
these efforts. In addition, Treasury has enhanced the capabilities
of the Financial Crimes Enforcement Network (FINCEN) by bringing more
Treasury and non-Treasury agencies to participate in its financial
information and anti-money laundering services. They have also been
"selling" the advantages of the Treasury Enforcement Communications
(TEC) system to other law enforcement agencies. FINCEN and the TEC
system can provide substantial support to law enforcement agencies
and thereby reduce duplication by eliminating the need for agencies
to independently develop such services/information. In addition,
Treasury has consolidated drug intelligence personnnel from two of
its centers to one center. The Treasury operations center is being
consolidated with an FBI center. Treasury is phasing in its planned
computer security controls for safeguarding the integrity and privacy
of information. These changes are covered by a December 1993 manual
directive, Automated Information Systems and Network Security.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 14:2.7.4
Drug Control: Reauthorization of the Office of National Drug Control
Policy (GAO/T-GGD-94-7, Oct. 5, 1993).
Drug Control: Reauthorization of the Office of National Drug Control
Policy (GAO/GGD-93-144, Sept. 29, 1993).
Drug Control: Coordination of Intelligence Activities
(GAO/GGD-93-83BR, Apr. 2, 1993).
Computer Security: DEA's Handling of Sensitive Drug Enforcement and
National Security Information Is Inadequate (GAO/T-IMTEC-92-24, Sept.
30, 1992).
Drug Control: Inadequate Guidance Results in Duplicate Intelligence
Production Efforts (GAO/NSIAD-92-153, Apr. 14, 1992).
War on Drugs: Information Management Poses Formidable Challenges
(GAO/IMTEC-91-40, May 31, 1991).
DOJ08: REINVENT THE
IMMIGRATION AND
NATURALIZATION SERVICE'S
ORGANIZATION AND MANAGEMENT
------------------------------------------------------- Chapter 14:2.8
NPR recommends a number of changes in INS organization and management
processes to provide an improved management structure and a strategic
vision for the agency.
ACTION ITEMS
----------------------------------------------------- Chapter 14:2.8.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 14:2.8.2
Agree. Over the past decade, weak management systems and
inconsistent leadership at INS led to segmented autonomous programs,
each attempting to deal with its own set of problems without much
attention to the impact on other INS programs. Without coherent
overall direction and basic management reforms, the organization has
been unable to effectively address changing enforcement
responsibilities and long-standing service delivery problems.
Further, we have recommended the appointment of an Associate
Commissioner for Financial Management as the focal point for
developing an overall financial management plan.
IMPLEMENTATION
----------------------------------------------------- Chapter 14:2.8.3
Not Implemented--Action Taken. The INS Commissioner developed a
reorganization proposal that was submitted to and approved by
Congress. INS expects to complete the reorganization soon. However,
it is too early to determine if the reorganization will fully address
the concerns that we expressed in our previous reports or the
concerns that prompted the NPR recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 14:2.8.4
Financial Management: INS Lacks Accountability and Controls Over Its
Resources (GAO/AFMD-91-20, Jan. 24, 1991).
Immigration Management: Strong Leadership and Management Reforms
Needed to Address Serious Problems (GAO/GGD-91-28, Jan. 23, 1991).
Information Management: Immigration and Naturalization Service Lacks
Ready Access to Essential Data (GAO/IMTEC-90-75, Sept. 27, 1990).
DOJ09: MAKE THE DEPARTMENT
OF JUSTICE OPERATE MORE
EFFECTIVELY AS THE U.S.
GOVERNMENT LAW FIRM
------------------------------------------------------- Chapter 14:2.9
Justice should undertake several improvements in the way it manages
its litigation functions to improve service to its customers and
better manage its case load.
ACTION ITEMS
----------------------------------------------------- Chapter 14:2.9.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 14:2.9.2
Insufficient Information. We believe that improving litigation
service to customers is a goal that should be pursued by the
Department. We have reported on the need for uniform and accurate
litigative case management data and on weaknesses in ADP management
and operations, most notably in the area of ADP security. We have
not made an in-depth evaluation of other alternatives to existing
litigation practices.
IMPLEMENTATION
----------------------------------------------------- Chapter 14:2.9.3
Partially Implemented. Justice is in the process of implementing but
has not completed various actions to improve its effectiveness as the
federal government's law firm. For example, it has instituted a
single identifier numbering system for tracking its caseloads and is
developing a departmentwide case management system which should
improve its ability to track cases now contained in separate agency
systems. Also, it has made some progress in exchanging attorneys
among some of its various components to enhance training and
cooperation within the Department and with other client agencies. In
addition, it has pilot tested a customer satisfaction survey which it
hopes to complete and fine tune in October 1994 for full use.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 14:2.9.4
Justice: IRM and Project Eagle (GAO/IMTEC-93-7R, Dec. 9, 1992).
DOJ10: IMPROVE WHITE COLLAR
FRAUD CIVIL ENFORCEMENT
------------------------------------------------------ Chapter 14:2.10
Civil fraud recovery should be established as a priority and the
department should take steps to improve its white collar fraud
enforcement.
ACTION ITEMS
---------------------------------------------------- Chapter 14:2.10.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 14:2.10.2
Insufficient Information. We recognize that civil fraud recoveries
are an important aspect of white collar fraud enforcement. (See our
comments on related recommendation DOJ04.) We do not have sufficient
information to determine whether this area should be established as a
priority within Justice.
IMPLEMENTATION
---------------------------------------------------- Chapter 14:2.10.3
Fully Implemented. The Department of Justice has completed its
planned actions to implement the NPR recommendation. First, to
emphasize white collar crime, the Attorney General announced at a
U.S. Attorney National Conference in January 1994 that white collar
crime, especially health care fraud, was among the nation's top law
enforcement priorities. In March 1994, at House Appropriation
hearings, the Attorney General described health care fraud as the
Justice Department's second enforcement priority, with violent crime
being the highest priority. Second, to attack health care fraud in a
coordinated fashion, the Department of Justice has developed an
executive level health care fraud group. Third, in October 1993
Congress enacted legislation allowing Justice to credit to its
working captial fund up to 3 percent of all amounts collected from
its civil debt collection activity to pay for the costs of processing
and tracking debt collection litigation. Lastly, the Departmentof
Justice has included at least one senior attorney from its Civil
Division in the white collar fraud civil enforcement working group.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 14:2.10.4
U.S. Department of Justice: Overview of Civil and Criminal Debt
Collection Efforts (GAO/T-GGD-90-62, July 31, 1990).
DOJ11: REDUCE THE
DUPLICATION OF LAW
ENFORCEMENT TRAINING
FACILITIES
------------------------------------------------------ Chapter 14:2.11
Overlap and duplication in the provision of federal law enforcement
training facilities should be examined. Multi-agency training needs
should be accommodated through existing facilities in lieu of the
construction of new facilities by individual agencies.
ACTION ITEMS
---------------------------------------------------- Chapter 14:2.11.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 14:2.11.2
Insufficient Information. Although we have not studied this issue,
this is an area where we would agree that further examination could
prove worthwhile. Law enforcement agencies, while having unique
missions that require individualized training, frequently have
overlapping jurisdictions and perform functions that require similar
or identical knowledge and skills.
IMPLEMENTATION
---------------------------------------------------- Chapter 14:2.11.3
Other. The Department of Justice has not as yet addressed this
issue. However, Treasury officials believe a mechanism is already in
place which is dedicated to accomplishing this recommendation. The
Federal Law Enforcement Training Center, or FLETC, was established in
1970 to accomplish common training of law enforcement investigators
while allowing individual participating agencies to do specialized
training. Although Treasury supervises administrative and financial
activities, FLETC is governed by an eight-member Board of Directors
representing participating agencies, including the Departments of
Justice, Treasury, and Interior and the General Services
Administration (GSA). In all, over 70 law enforcement agencies
participate in FLETC. However, several agencies are not
participants, including U.S. Postal Inspection Service, Drug
Enforcement Administration, and the Army Criminal Investigation
Division; in addition, the FBI maintains its own training facilities.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 14:2.11.4
None.
DOJ12: STREAMLINE
BACKGROUND INVESTIGATIONS
FOR FEDERAL EMPLOYEES
------------------------------------------------------ Chapter 14:2.12
The current method of completing background examinations on federal
employees is time-consuming and inefficient. This recommendation
outlines improvements to streamline the process without sacrificing
thoroughness.
ACTION ITEMS
---------------------------------------------------- Chapter 14:2.12.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 14:2.12.2
Generally Agree. We have not specifically reviewed this issue with
respect to Justice employees. But, given our past work at other
agencies, we endorse the concept of streamlining background
investigations provided that thoroughness is not jeopardized,
particularly with respect to the investigation of employees for
sensitive positions such as those in law enforcement.
IMPLEMENTATION
---------------------------------------------------- Chapter 14:2.12.3
Partially Implemented. The Department of Justice has not as yet
addressed this issue. However, Treasury is in the process of
implementing or evaluating actions it can take in response to the NPR
recommendation. Specifically, the implementation of a Treasury
Security Manual will replace OPM's Federal Personnel Manual and will
address both personnel security and security investigation matters.
It is anticipated that the manual will be released in early fiscal
year 1995. The manual will specify minimum requirements for
employment at Treasury but will allow stricter ones for bureaus that
request them. Moreover, the manual will allow the bureaus to
investigate applicants or secure investigation by other means.
In the area of periodic reinvestigations, Treasury is pilot testing a
streamlined investigation procedure focusing on criminal background
and credit checks. Treasury is also discussing with intelligence
agencies ways to modify or reduce requirements for obtaining Top
Secret/Sensitive Compartmentalized Information clearance. Finally,
Treasury is in the process of implementing an on-line system for
tracking employees' clearance status and need for periodic
reinvestigation. For certain Treasury components this system went
on-line May 23, 1994 and the remaining components are expected
on-line by the end of 1994.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 14:2.12.4
Employee Background Checks (GAO/GGD-93-62R, Sept. 2, 1993).
Nuclear Security: DOE's Progress on Reducing Its Security Clearance
Work Load (GAO/RCED-93-183, Aug. 12, 1993).
Personnel Security: Efforts by DOD and DOE to Eliminate Duplicate
Background Investigations (GAO/RCED-93-23, May 10, 1993).
OPM Revolving Fund: Benchmarking Could Aid OPM's Efforts to Improve
Customer Service (GAO/GGD-92-18, Jan. 21, 1992).
DOJ13: ADJUST CIVIL
MONETARY PENALTIES TO THE
INFLATION INDEX
------------------------------------------------------ Chapter 14:2.13
Civil monetary penalties have not been adjusted to keep up with
inflation. Under this recommendation, a "catch-up" adjustment would
be made and the need for additional inflation adjustments would be
automatically reassessed every four years.
ACTION ITEMS
---------------------------------------------------- Chapter 14:2.13.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 14:2.13.2
Generally Agree. In principle, we agree that civil penalties should
be periodically adjusted so that they do not lose relevancy.
Although we have not made a detailed examination of the specifics of
this recommendation (the final NPR accompanying report has not been
issued), we recognize that such adjustments could be based on
inflation as well as other factors such as deterrence. Our prior
work on civil debt and criminal fines has shown that many of the
currently imposed criminal and civil fines and penalties remain
uncollected. As of the end of fiscal year 1993, the Department of
Justice estimated the total amount of unpaid criminal debt exceeded
$3.5 billion, and civil debt exceeded $1.9 billion; the balances owed
continue to grow.
IMPLEMENTATION
---------------------------------------------------- Chapter 14:2.13.3
Not Implemented--Action Taken. Statutory authority is required to
implement an inflation adjustment for civil monetary penalties. H.R.
3400, as passed by the House of Representatives in November 1993,
included provisions to use an inflation index to revise all monetary
penalties every 4 years, and to provide for an immediate one-time
catch-up adjustment. The provision was deleted from the bill in the
Senate (S. 2170). Subsequently, S. 2170 was enacted as Public Law
103-356 on October 13, 1994, and did not contain the provision in
question.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 14:2.13.4
Restitution, Fines, and Forfeiture: Issues for Further Review and
Oversight (GAO/T-GGD-94-178, June 28, 1994).
National Fine Center: Expectations High, but Development Behind
Schedule (GAO/GGD-93-95, Aug. 10, 1993).
Program Fraud: Implementation of the Program Fraud Civil Remedies
Act of 1986 (GAO/AFMD-91-73, Sept. 16, 1991).
U.S. Department of Justice: Overview of Civil and Criminal Debt
Collection Efforts (GAO/T-GGD-90-62, July 31, 1990).
DOJ14: IMPROVE FEDERAL
COURTHOUSE SECURITY
------------------------------------------------------ Chapter 14:2.14
This recommendation is intended to address concerns of the U.S.
Marshals Service concerning security at federal courthouses.
ACTION ITEMS
---------------------------------------------------- Chapter 14:2.14.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 14:2.14.2
Insufficient Information. We have not taken a position on this
recommendation because it is not sufficiently specific as to what
concerns it is intended to address. Nonetheless, we recognize that
federal courthouses need to be secure and Marshals Service resources
need to be targeted at the greatest security needs based on
systematic assessments of potential risk. In this regard, we issued
a report on federal judicial security in July 1994 that contained
numerous recommendations aimed at ensuring that a comprehensive
risk-based security program is fully and consistently implemented in
all judicial districts; that the program include assessments of
off-site security risks and needs; and that the Marshals Service,
Administrative Office of the U.S. Courts (AOUSC), and GSA clarify
their roles and responsibilities for judicial security and
effectively coordinate and carry them out. Justice, as well as the
Judiciary and GSA, generally agreed with our findings and conclusions
and indicated they were taking or planning to take action on most of
our recommendations. However, Justice did not refer to the NPR
recommendation in its comments or indicate how its actions would
address that recommendation.
IMPLEMENTATION
---------------------------------------------------- Chapter 14:2.14.3
Insufficient Information. The recommendation did not sufficiently
identify the concerns to be addressed and no accompanying report has
been issued. Thus, we could not determine the specific actions
needed. However, a security working group involving Justice, GSA,
and the Judiciary has been formed and meets regularly.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 14:2.14.4
Federal Judicial Security: Comprehensive Risk-Based Program Should
Be Fully Implemented (GAO/GGD-94-112, July 14, 1994).
DOJ15: IMPROVE THE
PROFESSIONALISM OF THE U.S.
MARSHALS SERVICE
------------------------------------------------------ Chapter 14:2.15
U.S. Marshals should be selected based on merit by the Director of
the U.S. Marshals Service and reduce some positions.
ACTION ITEMS
---------------------------------------------------- Chapter 14:2.15.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 14:2.15.2
Insufficient Information. While we endorse the concept of improving
the professionalism of the Marshals Service and reducing unnecessary
positions where feasible, we have not studied this issue and thus do
not have sufficient information on which to take a position.
IMPLEMENTATION
---------------------------------------------------- Chapter 14:2.15.3
Not Implemented--Action Taken. Justice has drafted legislation,
which if referred to and enacted by Congress, should, according to
Justice, enhance the professionalism of the Marshals Service by
enabling it to select senior field managers based on demonstrated law
enforcement, management, and leadership skills. Also, according to
Justice, establishing an all career service Marshals Service should
facilitate streamlining operations and reducing positions.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 14:2.15.4
None.
DOJ16: DEVELOP LOWER COST
SOLUTIONS TO FEDERAL PRISON
SPACE PROBLEMS
------------------------------------------------------ Chapter 14:2.16
This recommendation describes approaches to solving existing prison
space problems.
ACTION ITEMS
---------------------------------------------------- Chapter 14:2.16.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 14:2.16.2
Generally Agree. We agree that lower-cost solutions need to be
pursued, and implemented where feasible, but it is not yet clear
whether NPR's recommendation will be limited to lowering the cost of
prison design and construction or encompass options for reducing the
number of persons sent to prison. Between fiscal years 1986 and
1992, the federal inmate population grew from 41,500 to more than
89,000, in part reflecting changes in sentencing policies. Absent a
change in those policies, the rapid growth in the federal prison
population can be expected to continue, requiring additional prison
capacity.
IMPLEMENTATION
---------------------------------------------------- Chapter 14:2.16.3
Partially Implemented. BOP is making a number of programmatic
changes in an attempt to develop lower-cost solutions to federal
prison space problems. By October 1995, BOP expects to activate a
third boot camp (Lompoc Boot Camp) and is in the process of
requesting funding for four additional camps so that each region will
have one boot camp. Also, as part of a pilot test, BOP has expanded
its comprehensive sanction centers by adding 350 inmate beds.
Justice has also been exploring sentencing options. Given that drug
offenders comprise a substantial proportion of the inmate population,
Justice has analyzed the impact of changes to the mandatory minimum
sentencing of certain drug offenders, e.g., those with minimal
criminal histories. Administration officials are also meeting to
consider legislative proposals related to community corrections and
the resultant potential for freeing up prison bed space. No
consensus has yet been reached on what should be done. Regarding
home confinement, BOP officials do not envision a substantial
increase unless legislation is enacted that would change the
eligibility standards.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 14:2.16.4
Sentencing: Intermediate Sanctions in the Federal Criminal Justice
System (GAO/GGD-94-63BR, January 14, 1994).
Federal Prison Expansion: Overcrowding Reduced but Inmate Population
Growth May Raise Issue Again (GAO/GGD-94-48, December 14, 1993).
Intensive Probation Supervision: Crime-Control and Cost-Saving
Effectiveness (GAO/PEMD-93-23, June 4, 1993).
Prison Boot Camps: Short-Term Prison Costs Reduced, but Long-Term
Impact Uncertain (GAO/GGD-93-69, Apr. 29, 1993).
Prison Alternatives: Crowded Federal Prisons Can Transfer More
Inmates to Halfway Houses (GAO/GGD-92-5, Nov. 14, 1991).
Prison Costs: Opportunities Exist to Lower the Cost of Building
Federal Prisons (GAO/GGD-92-3, Oct. 25, 1991).
Federal Prisons: Revised Design Standards Could Save Expansion Funds
(GAO/GGD-91-54, Mar. 14, 1991).
Intermediate Sanctions: Their Impacts on Prison Crowding, Costs, and
Recidivism Are Still Unclear (GAO/PEMD-90-21, Sept. 7, 1990).
DEPARTMENT OF LABOR (DOL)
=========================================================== Chapter 15
OVERALL SUMMARY
--------------------------------------------------------- Chapter 15:1
Some type of action has been initiated on 19 of the 21
recommendations involving Department of Labor (DOL) programs and
operations. The recommendation to reduce Federal Employees'
Compensation Act fraud has been fully implemented. Also, legislation
has been enacted or proposed to assist in implementing 8 of the 21
recommendations. However, much remains to be done before the other
recommendations can be fully implemented. This is primarily because
DOL either is conducting pilot tests concerning the proposed changes
or written policies and/or regulations will need to be developed and
issued. Furthermore, of the 21 recommendations, 12 will require
legislative action before part or all of the recommendations can be
implemented.
GAO CONTACT
------------------------------------------------------- Chapter 15:1.1
Linda Morra, Director, Education and Employment Issues, Health,
Education, and Human Services Division, (202) 512-7014.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 15:2
DOL01: ENHANCE REEMPLOYMENT
PROGRAMS FOR OCCUPATIONALLY
DISABLED FEDERAL EMPLOYEES
------------------------------------------------------- Chapter 15:2.1
These recommendations would help occupationally disabled federal
employees return to productive careers by expanding DOL's
return-to-work program. This saves money by reducing long-term
benefit costs to the government.
ACTION ITEM
----------------------------------------------------- Chapter 15:2.1.1
Authorization for the Periodic Roll Management Project should be
expanded for all 12 Federal Employee Corporation Act field offices in
fiscal year 1994 and the 4-year Assisted Reemployment Demonstration
Project should be extended.
GAO COMMENTS
----------------------------------------------------- Chapter 15:2.1.2
Agree. We agree that considerable improvement is possible in
returning workers' compensation beneficiaries to work by increasing
reemployment assistance to injured federal workers. However, we have
not evaluated the potential savings.
IMPLEMENTATION
----------------------------------------------------- Chapter 15:2.1.3
Partially Implemented. The Periodic Roll Management Project to
review disability cases was started in 1992 in four DOL field
offices. Funds to expand the project to the remaining eight Labor
district offices that process workers' compensation claims were
included in Labor's fiscal year 1995 budget request. The 1995
Departments of Labor, Health and Human Services, and Education and
Related Agencies Appropriations Act (P.L. 103-333) includes $4
million to expand the Periodic Roll Management Project. According to
a Labor official, the $4 million would fund about half of the
positions that Labor requested. Labor has not yet decided how to
allocate these positions among the district offices that still need
to implement this project.
The assisted reemployment program is a demonstration program
authorized in the Department of Labor's fiscal years 1992, 1993,
1994, and 1995 appropriations acts.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 15:2.1.4
Federal Employees' Compensation Act: Need to Increase Rehabilitation
and Reemployment of Injured Workers (GAO/GGD-92-30, Feb. 2, 1992).
Federal Work Force: Federal Employees' Compensation Act Cost Growth
and Workplace Safety (GAO/GGD-89-4, Oct. 20, 1988).
DOL02: DEVELOP A SINGLE
COMPREHENSIVE WORKER
ADJUSTMENT STRATEGY
------------------------------------------------------- Chapter 15:2.2
Improve services to the unemployed--and those at risk of
dislocation--and make better use of resources available for
assistance by developing a new worker adjustment strategy.
ACTION ITEM
----------------------------------------------------- Chapter 15:2.2.1
DOL should develop a single, integrated worker adjustment assistance
program for those workers who are jobless or are expected to
permanently lose their jobs.
GAO COMMENTS
----------------------------------------------------- Chapter 15:2.2.2
Agree. We believe that a new worker adjustment strategy is needed to
help dislocated workers. The current categorical approach is
inequitable, slow, limited in the mix of services provided, and
unaccountable for results. We have suggested consideration of a
simplified approach that helps dislocated workers regardless of the
reason for the dislocation.
IMPLEMENTATION
----------------------------------------------------- Chapter 15:2.2.3
Not Implemented--Action Taken. The Reemployment Act of 1994 was
introduced in both houses of Congress. The purpose of this act was
to establish a comprehensive system of reemployment services,
training, and income support for permanently laid off workers. The
act proposed replacing specified existing dislocated worker programs
and offering a wide range of employment services to dislocated
workers. However, this legislation has not been enacted.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 15:2.2.4
Dislocated Workers: Trade Adjustment Assistance Program Flawed
(GAO/T-HRD-94-4, Oct. 19, 1993).
Dislocated Workers: Comparison of Assistance Programs
(GAO/HRD-92-153BR, Sept. 10, 1992).
Dislocated Workers: Comparison of Programs (GAO/T-HRD-92-57, Sept.
10, 1992).
DOL03: EXPAND NEGOTIATED
RULEMAKING AND IMPROVE
UP-FRONT TEAMWORK ON
REGULATIONS
------------------------------------------------------- Chapter 15:2.3
DOL should provide administrative guidance more quickly and cheaply
through negotiated rulemaking and a streamlined team approach to the
rules development process.
ACTION ITEMS
----------------------------------------------------- Chapter 15:2.3.1
1. DOL should expand the use of negotiated rulemaking.
2. DOL should employ a team concept in the development of rules.
GAO COMMENTS
----------------------------------------------------- Chapter 15:2.3.2
Insufficient Information. Our work on Occupational Safety and Health
Administration (OSHA) indicates that an improvement in the rulemaking
process is needed. Negotiated rulemaking would be one option to
consider. However, we have not studied whether negotiated rulemaking
would expedite OSHA's rulemaking process.
IMPLEMENTATION
----------------------------------------------------- Chapter 15:2.3.3
Not Implemented--Action Taken. DOL has established a negotiated
rulemaking committee to develop a steel erection standard. The
committee will use a team approach, including consensus, to develop
the standard. However, results from this preliminary action are not
yet available. DOL has not taken action beyond this effort to
implement the recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 15:2.3.4
Occupational Safety and Health: Options for Improving Safety and
Health in the Workplace (GAO/HRD-90-66BR, Aug. 24, 1990).
DOL04: EXPAND THE USE OF
ALTERNATIVE DISPUTE
RESOLUTION BY THE DEPARTMENT
OF LABOR
------------------------------------------------------- Chapter 15:2.4
The increased use of alternative dispute resolution could reduce
litigation and produce significant long-term savings.
ACTION ITEM
----------------------------------------------------- Chapter 15:2.4.1
DOL should expand the use of Alternative Dispute Resolution
GAO COMMENTS
----------------------------------------------------- Chapter 15:2.4.2
Generally Agree. Our work at Equal Employment Opportunity Commission
has shown that alternative dispute resolution could streamline the
handling of cases, but we have not studied this issue in the context
of DOL cases.
IMPLEMENTATION
----------------------------------------------------- Chapter 15:2.4.3
Not Implemented--Action Taken. DOL has conducted a pilot of
alternate dispute resolution (ADR) in its Philadelphia Region, and is
now encouraging ADR expansion throughout the agency. However, we are
not aware of any broad-scale expansion of ADR at DOL.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 15:2.4.4
EEOC's Expanding Workload: Increases in Age Discrimination and Other
Charges Call for New Approaches (GAO/HEHS-94-32, Feb. 9, 1994).
DOL05: AUTOMATE THE
PROCESSING OF ERISA ANNUAL
FINANCIAL REPORTS (FORM
5500) TO CUT COSTS AND
DELAYS IN OBTAINING EMPLOYEE
BENEFIT PLAN DATA
------------------------------------------------------- Chapter 15:2.5
Automating the filing and processing of annual financial reports
required of pension and benefit plan administrators (Employee
Retirement Income Security Act of 1974 Forms 5500) would reduce costs
and delays.
ACTION ITEMS
----------------------------------------------------- Chapter 15:2.5.1
1. ERISA should be amended to change the employer's filing deadline
from 210 days after the close of a reporting period to 90 days.
2. DOL and the IRS should work to develop an automated processing
system for Form 5500-series data and incentives to file data
electronically.
3. IRS should revise its regulations to facilitate electronic filing
of Form 5500-series data.
GAO COMMENTS
----------------------------------------------------- Chapter 15:2.5.2
Generally Agree. We view electronic filing of the Form 5500 as a
desirable method of reducing the cost of processing (shared by DOL
and IRS) and reducing the nearly 3 years it takes to obtain usable
data from an annual filing. However, we are reviewing the Form 5500
processing system and expect to issue a report early next year
related to this issue.
IMPLEMENTATION
----------------------------------------------------- Chapter 15:2.5.3
Partially Implemented. IRS has established the capability to
electronically receive Form 5500 filings. Other than developing this
system, we are not aware of other actions taken to address this
recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 15:2.5.4
None.
DOL06: AMEND THE ERISA
REQUIREMENT FOR SUMMARY PLAN
DESCRIPTIONS
------------------------------------------------------- Chapter 15:2.6
The filing of Summary Plan Descriptions (SPD) by employee benefit
plan administrators with DOL is intended to make the plans more
readily available for participants and beneficiaries. Since requests
for copies are received on only about 1 percent, the cost to maintain
the system and the administrative burden on employers far outweighs
the public benefit.
ACTION ITEMS
----------------------------------------------------- Chapter 15:2.6.1
1. ERISA should be amended to eliminate the requirement for filing
all SPDs with DOL.
2. ERISA should be amended to authorize the Pension and Welfare
Benefits Administration to notify plan administrators to send SPDs
directly to requesters, and to obtain documents from plan
administrators and forward them to requesters.
GAO COMMENTS
----------------------------------------------------- Chapter 15:2.6.2
Generally Agree. DOL could reduce costs by reducing or eliminating
storage of SPD hard copies while continuing to provide electronic
access to SPDs. The SPD is a very important and valuable document
for beneficiaries of pension and welfare benefit plans which DOL will
obtain copies of for any requester. It is supposed to explain, in
plain English, the provisions of the plan and is to be made available
to each participant.
IMPLEMENTATION
----------------------------------------------------- Chapter 15:2.6.3
Not Implemented--Action Taken. H.R. 3400, the Government Reform and
Savings Act of 1993, would have amended ERISA to eliminate the
requirement for filing all Summary Plan Descriptions with DOL and
authorize DOL to obtain copies of SPDs from plan administrators and
provide them to requesters. H.R. 3400 was passed by the House in
November 1993, but this provision has not been acted upon by the
Senate.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 15:2.6.4
None.
DOL07: REDIRECT THE MINE
SAFETY AND HEALTH
ADMINISTRATION'S ROLE IN
MINE EQUIPMENT REGULATION
------------------------------------------------------- Chapter 15:2.7
Shifting the Mine Safety and Health Administration's (MSHA)
regulatory role from one of in-house testing to one of on-site
quality assurance would provide increased economic benefits to the
mining industry and would allow DOL to redirect resources.
ACTION ITEMS
----------------------------------------------------- Chapter 15:2.7.1
1. MSHA should shift its regulatory role from in-house prototype
testing to on-site quality assurance.
2. MSHA's regulatory standards should be revised to harmonize with
industry and international standards.
GAO COMMENTS
----------------------------------------------------- Chapter 15:2.7.2
Insufficient Information. We have insufficient information to assess
this recommendation because we have done no work in this area.
IMPLEMENTATION
----------------------------------------------------- Chapter 15:2.7.3
Partially Implemented. MSHA reported that the number of field
product audits had increased from 456 in fiscal year 1992 to 857 in
fiscal year 1994--an 88 percent increase. Also, a pilot program for
field audits of heavy equipment with the Commonwealth of Pennsylvania
had started; this is an initial attempt to address the second action
item in the recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 15:2.7.4
None.
DOL08: CREATE ONE-STOP
CENTERS FOR CAREER
MANAGEMENT
------------------------------------------------------- Chapter 15:2.8
Establishing one-stop centers for career management would create a
customer-driven workforce system, empowering Americans to make
informed career choices and providing the means to achieve those
goals.
ACTION ITEM
----------------------------------------------------- Chapter 15:2.8.1
The DOL should lead the establishment of a comprehensive, integrated
program of one-stop shopping centers for career management.
GAO COMMENTS
----------------------------------------------------- Chapter 15:2.8.2
Generally Agree. We generally agree with the need to streamline the
employment training system, and one-stop centers could be a step in
that direction. However, we do not believe that one-stop centers
should be the ultimate goal. We believe the consolidation of similar
programs serving the same general target populations would go further
to simplify the system.
IMPLEMENTATION
----------------------------------------------------- Chapter 15:2.8.3
Not Implemented--Action Taken. The Reemployment Act of 1994 was
introduced in both houses of Congress. One purpose of this act is to
create one-stop career centers. However, the proposed legislation
has not been enacted.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 15:2.8.4
Multiple Employment Training Programs: Overlap Among Programs Raises
Questions About Efficiency (GAO/HEHS-94-193, July 11, 1994).
Multiple Employment Training Programs: Conflicting Requirements
Underscore Need For Change (GAO/HEHS-94-120, Mar. 10, 1994).
Multiple Employment Training Programs: Major Overhaul Is Needed
(GAO/T-HEHS-94-109, Mar. 3, 1994).
Multiple Employment Training Programs: Most Federal Agencies Do Not
Know If Their Programs Are Working Effectively (GAO/HEHS-94-88, Mar.
2, 1994).
Multiple Employment Training Programs: Overlapping Programs Can Add
Unnecessary Administrative Costs (GAO/HEHS-94-80, Jan. 28, 1994).
Multiple Employment Training Programs: Conflicting Requirements
Hamper Delivery of Services (GAO/HEHS-94-78, Jan. 28, 1994).
Multiple Employment Programs: National Employment Strategy Needed
(GAO/T-HRD-93-27, June 18, 1993).
Multiple Employment Programs (GAO/HRD-93-26R, June 15, 1993).
Multiple Employment Programs (GAO/HRD-93-39R, July 24, 1992).
DOL09: CREATE A
BOUNDARY-SPANNING WORKFORCE
DEVELOPMENT COUNCIL
------------------------------------------------------- Chapter 15:2.9
Because the greatest barriers to creating an integrated workforce
development system are the categorical nature of federal funds and
structural fragmentation of various federal programs, this issue
proposes to coordinate workforce development efforts by convening a
multi-agency Work Force Development Council and implementing
"bottom-up grant consolidation" for states and localities.
ACTION ITEM
----------------------------------------------------- Chapter 15:2.9.1
Create a Workforce Development Council for strategic planning on
workforce development.
GAO COMMENTS
----------------------------------------------------- Chapter 15:2.9.2
Disagree. We do not believe the establishment of coordinating
councils will help improve the delivery of employment training
services to those who need them. Instead, we believe the large
number of federal employment training programs should be consolidated
to eliminate the costly duplication of services and the special
arrangements to coordinate services that also add to the
administrative burden of the programs.
IMPLEMENTATION
----------------------------------------------------- Chapter 15:2.9.3
Not Implemented--Action Taken. The Department is attempting to
respond to this recommendation both administratively and
legislatively. An executive order has been drafted to address this
recommendation and is under review. The Department is also working
with Congress and other federal agencies to develop legislation which
may propose a boundary-spanning workforce development council.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 15:2.9.4
Multiple Employment Training Programs: Overlap Among Programs Raises
Questions About Efficiency (GAO/HEHS-94-193, July 11, 1994).
Multiple Employment Training Programs: Conflicting Requirements
Underscore Need For Change (GAO/HEHS-94-120, Mar. 10, 1994).
Multiple Employment Training Programs: Major Overhaul Is Needed
(GAO/T-HEHS-94-109, Mar. 3, 1994).
Multiple Employment Training Programs: Most Federal Agencies Do Not
Know If Their Programs Are Working Effectively (GAO/HEHS-94-88, Mar.
2, 1994).
Multiple Employment Training Programs: Overlapping Programs Can Add
Unnecessary Administrative Costs (GAO/HEHS-94-80, Jan. 28, 1994).
Multiple Employment Training Programs: Conflicting Requirements
Hamper Delivery of Services (GAO/HEHS-94-78, Jan. 28, 1994).
Multiple Employment Programs: National Employment Strategy Needed
(GAO/T-HRD-93-27, June 18, 1993).
Multiple Employment Programs (GAO/HRD-93-26R, June 15, 1993).
Multiple Employment Programs (GAO/HRD-93-39R, July 24, 1992).
DOL10: REFOCUS THE
RESPONSIBILITY FOR ENSURING
WORKPLACE SAFETY AND HEALTH
------------------------------------------------------ Chapter 15:2.10
This recommendation proposes to shift responsibility for workplace
safety and health to employers by issuing regulations requiring
self-inspections and implementing a sliding scale of incentives and
penalties to ensure safety standards are met.
ACTION ITEMS
---------------------------------------------------- Chapter 15:2.10.1
1. The Secretary of Labor should issue regulations requiring
employers to develop worksite safety and health programs and to
conduct inspections for safety and health.
2. Establish a sliding scale of incentives and penalties for
ensuring workplace safety and health.
GAO COMMENTS
---------------------------------------------------- Chapter 15:2.10.2
Insufficient Information. We have recommended that OSHA require
employers in certain industries to institute worksite safety and
health programs. We have also explored the advantages and
disadvantages of permitting private sector consultations to
substitute for certain programmed OSHA inspections. However, we have
not examined explicit proposals mandating employer self-inspections
and modifying existing OSHA penalty schedules.
IMPLEMENTATION
---------------------------------------------------- Chapter 15:2.10.3
Not Implemented--Action Taken. Proposed legislation introduced in
both the House and the Senate, known as the Comprehensive
Occupational Safety and Health Reform Act (COSHRA) included
provisions on worksite safety and health programs as well as
conducting inspections for worksite safety and health. DOL is
drafting standards on worksite safety and health programs in
anticipation of the enactment of COSHRA. The draft standards are
currently in-house documents and are not available to GAO.
DOL is studying the establishment of a sliding scale of incentives
and penalties for ensuring workplace safety and health. OSHA
officials have discussed this issue with representatives from the
business community, labor unions, and several professional
organizations and will include their ideas and opinions as OSHA
proceeds to implement this recommendation.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 15:2.10.4
Occupational Safety and Health: Changes Needed in the Combined
Federal-State Approach (GAO/HEHS-94-10, Feb. 28, 1994).
Occupational Safety and Health: Worksite Safety and Health Programs
Show Promise (GAO/HRD-92-68, May 19, 1992).
Occupational Safety and Health: Option for Improving Safety and
Health in the Workplace (GAO/HRD-90-66BR, Aug. 24, 1990).
DOL11: OPEN THE CIVILIAN
CONSERVATION CENTERS TO
PRIVATE AND PUBLIC
COMPETITION
------------------------------------------------------ Chapter 15:2.11
A long-term reduction in costs is possible through expanded
competition for contracts to operate Job Corps Civilian Conservation
Centers.
ACTION ITEM
---------------------------------------------------- Chapter 15:2.11.1
Title IV of the Job Training Partnership Act (JTPA) should be amended
to authorize public and private competition for operation of the Job
Corps Civilian Conservation Centers.
GAO COMMENTS
---------------------------------------------------- Chapter 15:2.11.2
Insufficient Information. Our work has shown that public centers
incur higher costs because they generally provide higher skill
training. However, the public centers have higher placement rates
and wages. We have no basis to judge whether open competition for
contracts to operate those centers at specified training levels would
result in savings.
IMPLEMENTATION
---------------------------------------------------- Chapter 15:2.11.3
Not Implemented--No Action Taken. Section 427(c) of Public Law
102-367, "The Job Training Reform Amendments of 1992," specifically
forbids the use of any appropriated nongovernmental entity to
administer or manage a Civilian Conservation Center of the Job Corps.
No legislation has been introduced to amend this provision.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 15:2.11.4
Job Corps Costs and Outcomes (GAO/HRD-93-16R, Feb. 19, 1993).
Job Corps: Its Costs, Employment Outcomes, and Service to the Public
(GAO/HRD-86-112BR, July 30, 1986).
DOL12: PARTIALLY FUND MINE
SAFETY AND HEALTH
ENFORCEMENT THROUGH SERVICE
FEES
------------------------------------------------------ Chapter 15:2.12
Charge for services to put the mining industry on a comparable
footing with other industries which bear the cost of their
regulation. This proposes to partially fund enforcement of mine
safety regulations through service fees.
ACTION ITEMS
---------------------------------------------------- Chapter 15:2.12.1
1. DOL should develop a legislative proposal for partial
self-funding of MSHA.
2. DOL should develop a legislative proposal that would increase
other MSHA-related revenues to the Treasury.
3. DOL should develop a strategic plan to identify additional
activities that would be appropriate for the collection of service
fees as a continuing effort to make MSHA self-funding.
GAO COMMENTS
---------------------------------------------------- Chapter 15:2.12.2
Insufficient Information. We have insufficient information to assess
this recommendation because we have not done any work in the area.
IMPLEMENTATION
---------------------------------------------------- Chapter 15:2.12.3
Not Implemented--No Action Taken. Legislation is needed to implement
this recommendation, but none has been developed.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 15:2.12.4
None.
DOL13: INTEGRATE
ENFORCEMENT ACTIVITIES
WITHIN THE DEPARTMENT OF
LABOR
------------------------------------------------------ Chapter 15:2.13
Introduce greater coordination and flexibility in the DOL enforcement
agencies to project a consistent message to customers and integrate
approaches to common issues.
ACTION ITEMS
---------------------------------------------------- Chapter 15:2.13.1
1. DOL should ensure that its enforcement agencies operate as a
flexible organizational network.
2. DOL should strengthen the effectiveness of communications with
enforcement customers by ensuring that DOL officers consistently
represent DOL's overall enforcement mission, particularly during site
inspections.
3. DOL should prepare a legislative proposal to address the
anomalies in the labor law penalty structure.
4. DOL should assess the feasibility of issuance by labor inspectors
of warning notices when they encounter violations of other agencies'
laws.
5. DOL should ensure policy coordination of agencies' goals and
missions.
6. DOL enforcement agencies should collaborate in developing
targeting methods.
7. DOL should select one or two priority areas to receive a full
court press.
8. DOL enforcement agencies should collaborate to develop meaningful
performance measures that reward quality and cooperation.
GAO COMMENTS
---------------------------------------------------- Chapter 15:2.13.2
Insufficient Information. We have insufficient information to assess
this recommendation because we have done no work in the area.
IMPLEMENTATION
---------------------------------------------------- Chapter 15:2.13.3
Insufficient Information. None of the actions in this recommendation
has been implemented. However, we understand that DOL has
established an Enforcement Council, which is made up of the leaders
of all the enforcement agencies in DOL. The Council seeks to improve
the effectiveness and coherence of the Department's enforcement
activities and, in May 1994, adopted several proposals for action
that it believes should achieve a coordinated departmental
enforcement strategy. The Council's proposals included: (1)
creating a forum to assist the enforcement agencies in developing
performance measures and exchanging information; (2) considering the
possibility of proposing legislation to give the Secretary broader
authority over federal contractors, and (3) considering opportunities
for cross-training its investigators.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 15:2.13.4
None.
DOL14: APPLY INFORMATION
TECHNOLOGY TO EXPEDITE WAGE
DETERMINATIONS FOR FEDERAL
CONTRACTS
------------------------------------------------------ Chapter 15:2.14
Developing an electronic data interchange/data mapping system which
is integrated into the Service Contract Act process should eliminate
delays both in the delivery of wage determinations and in procurement
when caused by determination delays.
ACTION ITEM
---------------------------------------------------- Chapter 15:2.14.1
DOL should develop an electronic data interchange mapping system and
integrate it into the Service Contract Act wage determinations
process.
GAO COMMENTS
---------------------------------------------------- Chapter 15:2.14.2
Insufficient Information. Major technological changes have
facilitated Labor's administration of the Davis-Bacon wage
determination process. For example, the mailing of surveys and the
analysis of survey data are now largely automated. Through the
expanded use of technology, it is possible that the entire wage
determination process for both Davis-Bacon and the Service Contract
Act could be automated, with instant communication and rapid analysis
of all wages paid in the construction industry. However, the
additional cost of the automation to both the federal government and
contractors is unknown.
IMPLEMENTATION
---------------------------------------------------- Chapter 15:2.14.3
Not Implemented--Action Taken. Although DOL has made use of its
electronic data interchange/data mapping system for wage
determination, more analysis and time are needed to determine whether
other applications are possible. A pilot test of the new system is
expected to begin in April 1995. The planned pilot has been
discussed during several meetings, but no documentation has been
prepared to date regarding how the test will be implemented.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 15:2.14.4
Davis-Bacon Act (GAO/HEHS-94-95R, Feb. 7, 1994).
DOL15: PROVIDE RESEARCH AND
DEVELOPMENT AUTHORITY FOR
THE DOL'S MINE SAFETY AND
HEALTH PROGRAM
------------------------------------------------------ Chapter 15:2.15
Granting the Mine Safety and Health Administration authority to
procure services and goods directly would improve the mine safety
program by expediting the acquisition process for new and improved
technology.
ACTION ITEM
---------------------------------------------------- Chapter 15:2.15.1
The Mine Safety and Health Act should be amended to grant MSHA the
authority and funding to procure the services and products needed to
maintain a state-of-the-art mine safety program.
GAO COMMENTS
---------------------------------------------------- Chapter 15:2.15.2
Insufficient Information. We have insufficient information to assess
this recommendation because we have not done any work in the area.
IMPLEMENTATION
---------------------------------------------------- Chapter 15:2.15.3
Other. No legislation has been introduced to provide MSHA
independent procurement authority. However, MSHA entered into a
memorandum of understanding with the Department of Interior's Bureau
of Mines to allow joint research and development projects, and five
such joint ventures have been initiated.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 15:2.15.4
None.
DOL16: INCREASE ASSISTANCE
TO STATES IN COLLECTING
DELINQUENT UNEMPLOYMENT
INSURANCE TRUST FUND
CONTRIBUTIONS
------------------------------------------------------ Chapter 15:2.16
This recommendation outlines ways of improving state collections of
delinquent unemployment insurance (UI) contributions.
ACTION ITEM
---------------------------------------------------- Chapter 15:2.16.1
The Department of Labor should work with state agencies to develop
more effective programs for collecting delinquent unemployment
insurance contributions.
GAO COMMENTS
---------------------------------------------------- Chapter 15:2.16.2
Agree. We have recommended a number of federal actions that could be
taken to improve states' unemployment insurance tax collection
systems, including providing guidance to states in establishing
judicial and administrative procedures to minimize delinquent
contributions and identify nonfilers.
IMPLEMENTATION
---------------------------------------------------- Chapter 15:2.16.3
Not Implemented--Action Taken. DOL has redefined various definitions
on its main UI tax operations report--the Employment and Training
Administration (ETA) 581 report. These definitions have been
approved by OMB and will be implemented on January 1, 1995. However,
DOL has taken no other actions to implement this recommendation.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 15:2.16.4
Unemployment Insurance: Opportunities to Strengthen the Tax
Collection Process (GAO/HRD-89-5, June 8, 1989).
DOL17: REVISE AND UPDATE
THE CONSUMER PRICE INDEX
------------------------------------------------------ Chapter 15:2.17
The consumer price index (CPI) has important consequences for both
public and private decisions. This important measure should be
updated to reflect recent inflation trends.
ACTION ITEMS
---------------------------------------------------- Chapter 15:2.17.1
1. DOL should introduce a new geographic sample and new market
baskets for the CPI.
2. DOL should redesign the processing system for the Consumer
Expenditure Survey.
3. DOL should revise the housing sample for the CPI. 4. DOL should
redesign the computer system for processing housing data.
5. DOL should introduce computer-assisted data collection
technology.
6. DOL should convert the Point of Purchase Survey from personal
visit to telephone interview.
GAO COMMENTS
---------------------------------------------------- Chapter 15:2.17.2
Insufficient Information. We have work under way as part of our
review of the "Economic Statistics Initiative" that will look at the
need to revise and update economic statistics, including the CPI. We
have no basis to comment on this recommendation until that work is
complete.
IMPLEMENTATION
---------------------------------------------------- Chapter 15:2.17.3
Not Implemented--Action Taken. A number of actions have been taken
to revise and update the CPI, but the recommendation has not been
implemented. As part of DOL's appropriation, Congress approved
funding for the revision and update of the CPI, but the new
geographic sample and market baskets have not been introduced.
Bureau of Labor Statistics officials said that the geographic area
design for the CPI surveys, which is based on the 1990 Census, has
been completed. BLS began reviews of a classification system which
organizes products that consumers purchase, and of alternative
estimation techniques. Also, BLS began developing requirements for
new technology in BLS' data collection and transmission activities so
it will be able to begin computer system development with forthcoming
funding.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 15:2.17.4
None.
DOL18: IMPROVE THE DELIVERY
OF LEGAL SERVICES BY THE
OFFICE OF THE SOLICITOR IN
THE DEPARTMENT OF LABOR
------------------------------------------------------ Chapter 15:2.18
The delivery of legal services by the Office of the Solicitor can be
improved by using cooperative agreements, coordinated budgeting, and
better use of resources.
ACTION ITEMS
---------------------------------------------------- Chapter 15:2.18.1
1. The Office of the Solicitor (SOL) should reexamine and possibly
expand the scope of existing cooperative arrangements with client
agencies.
2. SOL should expand efforts at coordinated budgeting.
3. SOL should ensure that its pilot time distribution project
determines the computer hardware, software, personnel, and other
requirements of an SOL-wide system.
4. SOL should provide more employee training opportunities.
5. SOL should upgrade its equipment through replacement of obsolete
computer equipment, and make wider use of more advanced
communications technology and information sharing capabilities.
6. SOL should look toward making wider use of paralegals and
interns.
GAO COMMENTS
---------------------------------------------------- Chapter 15:2.18.2
Insufficient Information. We have insufficient information to assess
this recommendation because we have not completed any related work..
IMPLEMENTATION
---------------------------------------------------- Chapter 15:2.18.3
Not Implemented--Action Taken. SOL has taken a number of actions to
implement this recommendation, but none of the action items has been
completed. SOL and OSHA have established an enforcement litigation
strategy committee. SOL is also working with MSHA to implement
revised case procedures and implement Alternate Case Resolution
procedures. Additionally, SOL has completed three time distribution
pilot projects and is currently working to complete the
implementation of the system; current plans call for software
installation and staff training to begin in March of 1995. SOL has
also developed a strategy to upgrade its computer equipment to
support SOL-wide networking plans; it requested fiscal year 1995
funds to do so. Finally, an SOL Restructuring Committee has made
recommendations about how SOL can make wider use of paralegals. In
its fiscal year 1996 budget request, SOL requested 10 additional FTEs
for paralegals.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 15:2.18.4
None.
DOL19: TRANSFER THE
VETERANS' EMPLOYMENT AND
TRAINING SERVICE TO THE
EMPLOYMENT AND TRAINING
ADMINISTRATION
------------------------------------------------------ Chapter 15:2.19
The DOL can improve service delivery to veterans and save money by
consolidating administration of this function.
ACTION ITEMS
---------------------------------------------------- Chapter 15:2.19.1
1. Contingent upon DOL's review of all employment and training
programs and contingent upon implementation of a successful,
comprehensive, integrated program of one-stop shopping centers for
career management, the Secretary of Labor should consider reforms to
the administration of VETS that would preserve and improve veterans'
training.
2. DOL should explore possibilities for improving employment
delivery and customer choice of service provider by requiring states
to make delivery of veterans' employment and training service
competitive.
GAO COMMENTS
---------------------------------------------------- Chapter 15:2.19.2
Insufficient Information. We have not evaluated delivery of
employment training programs for veterans and consequently we do not
have sufficient information to comment on this recommendation.
However, we have evaluated other employment training programs and
have supported consolidation of some of these programs.
IMPLEMENTATION
---------------------------------------------------- Chapter 15:2.19.3
Not Implemented--Action Taken. DOL has taken steps in response to
the second action item by competitively awarding two of its three
grant programs under the Job Training Partnership Act (title IV, part
C). NPR has deferred indefinitely its recommendation to transfer the
Veterans' Employment and Training Service to the Employment Training
Administration.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 15:2.19.4
Multiple Employment Training Programs: Overlap Among Programs Raises
Questions About Efficiency (GAO/HEHS-94-193, July 11, 1994).
Multiple Employment Training Programs: Conflicting Requirements
Underscore Need For Change (GAO/HEHS-94-120, Mar. 10, 1994).
Multiple Employment Training Programs: Major Overhaul Is Needed
(GAO/T-HEHS-94-109, Mar. 3, 1994).
Multiple Employment Training Programs: Most Federal Agencies Do Not
Know If Their Programs Are Working Effectively (GAO/HEHS-94-88, Mar.
2, 1994).
Multiple Employment Training Programs: Overlapping Programs Can Add
Unnecessary Administrative Costs (GAO/HEHS-94-80, Jan. 28, 1994).
Multiple Employment Training Programs: Conflicting Requirements
Hamper Delivery of Services (GAO/HEHS-94-78, Jan. 28, 1994).
Multiple Employment Programs: National Employment Strategy Needed
(GAO/T-HRD-93-27, June 18, 1993).
Multiple Employment Programs (GAO/HRD-93-26R, June 15, 1993).
Multiple Employment Programs (GAO/HRD-93-39R, July 24, 1992).
DOL20: REDUCE FEDERAL
EMPLOYEES' COMPENSATION ACT
FRAUD
------------------------------------------------------ Chapter 15:2.20
Congress needs to amend several sections of the United States Code to
enable DOL to eliminate benefits to persons who have been convicted
of defrauding the program.
ACTION ITEMS
---------------------------------------------------- Chapter 15:2.20.1
1. The FECA and section 1920 of title 18, United States Code, should
be amended to make it a felony to knowingly and willfully make a
false or misleading statement or representation in connection with
the application for or receipt of FECA benefits.
2. Section 8102(a) of title 5, United States Code, should be amended
to provide that an individual convicted of a violation under the
amended statute, or other fraud related to FECA, forfeits all
entitlement to any benefits as of the date of conviction.
3. Section 8116 of title 5, United States Code, should be amended to
provide no benefits to an individual confined in a jail, prison, or
other penal institution or correctional facility if that individual's
conviction constituted a felony under applicable law.
GAO COMMENTS
---------------------------------------------------- Chapter 15:2.20.2
Generally Agree. We support efforts to reduce Federal Employees'
Compensation Act (FECA) fraud. However, we have not done work to
determine whether the population of convicted fraud perpetrators is
relatively small or large.
IMPLEMENTATION
---------------------------------------------------- Chapter 15:2.20.3
Fully Implemented. All actions on this recommendation have been
completed. The 1995 Labor, Health and Human Services, and Education,
and Related Agencies Appropriations Act (P.L. 103-333) amended
Chapter 81 of title 5, United States Code to (1) terminate FECA
benefits to anyone convicted of defrauding the FECA program, (2)
suspend FECA benefits to anyone incarcerated for any felony, and (3)
make FECA fraud a felony where the amount in question exceeds $1,000.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 15:2.20.4
None.
DOL21: CHANGE THE FOCUS OF
THE UNEMPLOYMENT INSURANCE
BENEFITS QUALITY CONTROL
PROGRAM TO IMPROVE
PERFORMANCE
------------------------------------------------------ Chapter 15:2.21
Reexamining the present mix of systems to shift the focus of this
program from error measurement to a constructive use of the results
would allow DOL to improve benefit payment quality and more
effectively achieve the program's goals.
ACTION ITEM
---------------------------------------------------- Chapter 15:2.21.1
The DOL should reexamine the present mix of systems for improving the
performance of the unemployment insurance program and devise a
unified strategy that improves its effectiveness.
GAO COMMENTS
---------------------------------------------------- Chapter 15:2.21.2
Generally Agree. In May 1989, we found that Labor's unemployment
insurance performance indicators were weak and did not constitute an
effective quality monitoring system. Therefore, we believe this
recommendation is a step in the direction of improving unemployment
insurance performance.
IMPLEMENTATION
---------------------------------------------------- Chapter 15:2.21.3
Not Implemented--Action Taken. A DOL workgroup is in the process of
developing recommendations to improve the performance of the
unemployment insurance program. These principles will be applied to
the Benefits Quality Control Program in early 1996.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 15:2.21.4
Unemployment Insurance: Administrative Funding Is a Growing Problem
for State Programs (GAO/HRD-89-72BR, May 24, 1989).
NATIONAL AERONAUTICS AND SPACE
ADMINISTRATION (NASA)
=========================================================== Chapter 16
OVERALL SUMMARY
--------------------------------------------------------- Chapter 16:1
NPR recommended that NASA make more than 50 improvements in five
areas: contracting, technology development and transfer,
coordination and cooperation with industry, management of programs
and projects, and the Mission to Planet Earth (MTPE) program. NASA
has made, or is currently making, almost all of the improvements in
each of these areas. Progress has been most apparent in the
contracting area, where a number of improvement initiatives were
already under way before the NPR recommendations were made. NASA has
also taken several steps to facilitate technology development and
transfer and to improve coordination and cooperation with industry.
For example, NASA is encouraging increased industry participation in
aeronautical research and development and is working on a variety of
ways to expand its technology transfer efforts through employee
training, partnering relationships, and aggressive outreach.
NASA's efforts to improve its program and project management have
primarily been through the establishment of a Program Management
Council to oversee the planning, implementation, and management of
all major programs and projects. In addition, NASA has reshaped the
management of its space station program and is working to identify
and eliminate duplication of effort, reduce contracting for support
services, and shrink its workforce by at least 13 percent, or about
3,200 employees, by the end of this decade. Finally, NASA continues
to refine its Earth Observing System--the principal component of the
MTPE program--by coordinating its developmental requirements with the
user community and other existing or planned remote sensing projects
in order to maximize its usefulness while attempting to control its
cost.
GAO CONTACT
------------------------------------------------------- Chapter 16:1.1
Donna M. Heivilin, Director, Defense Management and NASA Issues,
National Security and International Affairs Division, (202) 512-8412.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 16:2
NASA01: IMPROVE NASA
CONTRACTING PRACTICES
------------------------------------------------------- Chapter 16:2.1
This recommendation outlines several steps NASA can take to improve
its contracting procedures, including greater use of performance
standards, contracting out for data instead of hardware whenever
appropriate, and using cooperative research agreements to more
quickly exploit high performance computing techniques.
ACTION ITEMS
----------------------------------------------------- Chapter 16:2.1.1
1. NASA regulations should be 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.
2. NASA and other government agencies should consider contracting
out for data instead of hardware.
3. NASA should extend the use of 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.
GAO COMMENTS
----------------------------------------------------- Chapter 16:2.1.2
Agree. As early as 1987, NASA acknowledged that its procurement and
contract management were vulnerable to waste and mismanagement, based
on its own internal management reviews and those of the NASA
Inspector General. Since then, the results of additional reviews,
including numerous GAO reports, as well as partial or total failure
of expensive space hardware, have further evidenced the need for NASA
to improve its contracting practices.
IMPLEMENTATION
----------------------------------------------------- Chapter 16:2.1.3
Partially Implemented. NASA has made considerable progress in
addressing this recommendation, primarily because a number of NASA's
procurement improvement efforts were already under way before the NPR
recommendations were made.
In early 1992, NASA began formulating a new award fee policy,
emphasizing the selection of contract type and the use of positive
and negative performance incentives. This policy was implemented
during fiscal year 1994. Also, by early 1993, NASA was formulating a
policy to increase contractor liability for repairing or replacing
space systems which do not meet requirements. This policy is under
final review within NASA.
On June 30, 1994, NASA began requiring that statements of work in
contracts describe the work in terms of required output, where
feasible. The statements of work are to be broad in scope and
general in nature to give contractors the freedom to innovate and
economize while, at the same time, making them fully responsible for
quality performance and more accountable for the end results.
In February 1994, NASA prepared a sample cooperative agreement for
use with for-profit firms. NASA has previously had such agreements
only with universities and nonprofit organizations. The new strategy
is intended to increase technology transfer to industry. The new
cooperative agreement policy is not yet officially approved but NASA
organizations are already implementing it. For example, a
cooperative agreement notice has been issued under the Aerospace
Industry Technology Program for industry-led research and development
efforts.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 16:2.1.4
NASA Procurement: Challenges Remain in Implementing Improvement
Reforms (GAO/NSIAD-94-179, Aug. 18, 1994).
NASA Property: Poor Lending Practices and Controls at the Jet
Propulsion Laboratory (GAO/NSIAD-94-116, Apr. 18, 1994).
NASA: Major Challenges for Management (GAO/T-NSIAD-94-18, Oct. 6,
1993).
NASA Property: Improving Management of Government Equipment Provided
to Contractors (GAO/NSIAD-93-191, Sept. 9, 1993).
NASA Procurement: Proposed Changes to the Jet Propulsion Laboratory
Contract (GAO/NSIAD-93-178, July 15, 1993).
NASA's FMFIA Assertions and CFO Plan (GAO/AFMD-93-65R, June 11,
1993).
High-Risk Series: NASA Contract Management (GAO/HR-93-11, Dec.
1992).
Financial Management: NASA's Financial Reports Are Based on
Unreliable Data (GAO/AFMD-93-3, Oct. 29, 1992).
NASA Procurement: Opportunities to Improve Contract Management
(GAO/T-NSIAD-92-33, May 7, 1992).
NASA02: INCREASE NASA
TECHNOLOGY TRANSFER EFFORTS
AND ELIMINATE BARRIERS TO
TECHNOLOGY DEVELOPMENT
------------------------------------------------------- Chapter 16:2.2
NASA should expand its technology transfer efforts and promote the
development of new technologies.
ACTION ITEMS
----------------------------------------------------- Chapter 16:2.2.1
1. NASA should enhance its protection of commercially sensitive
information on joint NASA-industry technology projects by allowing
temporary protection from Freedom of Information Act disclosure.
2. The State Department should publish a notice in the Federal
Register to establish its goals for expediting the processing of
export license applications.
3. NASA's technology transfer activities should be expanded through
implementation of a variety of measures, incliuding the following:
-- NASA's Research and Technology Objectives and Plans should be
modified to include a statement requesting that NASA centers
give strong consideration to partnership arrangements with the
commercial sector in conducting the NASA R&D program.
-- NASA should grant its centers and center directors and/or
project managers more flexibility in funding technology transfer
opportunities.
-- All NASA contracts should require clearly defined technology
transfer plans for the commercial application of technologies
developed for NASA missions.
-- NASA programs offered through the Announcement of Opportunity
process should state that mission objectives also include
technology advancement and infusion into the private sector and
that grant proposals should be evaluated on the basis of how
such objectives would be achieved.
-- NASA should significantly increase its efforts to secure
alliances with state and local governments and provide small
businesses with opportunities to spur technology transfer.
-- NASA's Vision-Mission-Values document should be amended to state
that technology transfer is a major mission objective of the
agency.
4. NASA should implement its New 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.
GAO COMMENTS
----------------------------------------------------- Chapter 16:2.2.2
Generally Agree. The specific actions recommended by NPR include
efforts across NASA to more directly support activities for
identifying and transferring useful technology to the private sector
in a timely manner. Such efforts would include employee training,
partnering arrangements, and aggressive outreach to promote more
effective technology transfer. In general, these are appropriate
mechanisms for increasing the focus on identifying and implementing
technology transfer opportunities.
IMPLEMENTATION
----------------------------------------------------- Chapter 16:2.2.3
Partially Implemented. NASA's progress in addressing these action
items ranges from no action to completed action. NASA has not acted
on the first action item; however, the agency is planning to
establish a working group to determine the kinds of information that
can appropriately be temporarily exempted from FOIA disclosure. NASA
has contacted State Department officials about the second action
item, but no progress has been reported to NASA by the State
Department.
Regarding the third action item, NASA has drafted a new "NASA
Commercial Technology Policy" that provides, among other things, for
(1) committing 10 to 20 percent of the NASA budget to research and
development efforts with industry, (2) providing technology transfer
training in all mid-level development programs, (3) requiring
technology transfer plans in all appropriate contracts, (4)
increasing alliances with state and local governments, (5) providing
center directors with more flexibility to fund technology transfer,
and (6) making technology transfer a major mission objective. In
June 1994, NASA's Commercial Technology Team, which was created in
late 1993 to develop and implement an agencywide plan for commercial
technology activities, prepared an "Agenda for Change" to make
commercial technology a primary NASA mission, comparable in
importance to aeronautics and space.
On the last action item, NASA has held two forums to discuss with
industry representatives the submission of proposals under the
Aerospace Industry Technology Program, the core element of NASA's New
Technology Investments Program. The evaluation of proposals and
source selection are scheduled for early 1995.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 16:2.2.4
NASA: Major Challenges for Management (GAO/T-NSIAD-94-18, Oct. 6,
1993).
NASA Aeronautics: Protecting Sensitive Technology (GAO/NSIAD-93-201,
Aug. 12, 1993).
NASA Aeronautics: Impact of Technology Transfer Activities Is
Uncertain (GAO/NSIAD-93-137, Mar. 16, 1993).
NASA Aeronautics: Efforts To Preserve U.S. Leadership in the
Aeronautics Industry Are Limited (GAO/T-NSIAD-92-14, Mar. 18, 1992).
NASA03: INCREASE NASA
COORDINATION OF PROGRAMS
WITH THE U.S. CIVIL
AVIATION INDUSTRY
------------------------------------------------------- Chapter 16:2.3
NASA should develop a closer relationship with the U.S. civil
aviation industry to ensure industry input is received early and
throughout the technology development process.
ACTION ITEM
----------------------------------------------------- Chapter 16:2.3.1
NASA should develop a closer 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:
-- ensure that promising technologies are fully developed, through
validation where necessary, to reduce the risk to industry of
commercialization efforts;
-- increase industry participation and involvement in all phases of
the research and development process, from planning to
implementation as well as in the evaluation of results; and
-- improve its responsiveness to specific industry needs through
increased flexibility of services and resources (facilities and
people) and programmatic objectives.
GAO COMMENTS
----------------------------------------------------- Chapter 16:2.3.2
Agree. The specific areas of emphasis addressed under this
recommendation are consistent with our concerns about providing
better service and support to the aviation industry. In particular,
they focus on the need for NASA to change the type of aeronautics
research support it offers and to generally improve its coordination
and communication with industry.
IMPLEMENTATION
----------------------------------------------------- Chapter 16:2.3.3
Partially Implemented. NASA has initiated or completed action in
each of the recommendation's three areas of emphasis. NASA is
working with the Office of Science and Technology Policy/National
Economic Council and other federal agencies to help develop a
coordinated science and technology policy and federal research and
development strategy before adapting them to agency-specific use.
Meanwhile, NASA is concentrating its efforts on its top three
technology priorities--high speed research, subsonic research, and
aeronautics test facilities.
NASA is increasing industry participation in all phases of the
research and development process in a variety of ways. For example,
NASA held a workshop in April 1993 that solicited assistance from
industry and academia in redefining the focus of parts of its High
Performance Computing and Communications Program. NASA is also
augmenting its Advanced Composites Technology program with a team of
airframe manufacturers, materials suppliers, and university
researchers and has established the Environmental Research and Sensor
Technology program alliance with industry to accelerate the
development of high altitude/long endurance automated vehicles.
In response to the last area of emphasis, NASA has established a link
between its field centers and industry through Internet to enable
industry to access NASA databases. In addition, NASA's aeronautics
centers have instituted an exit survey of the users of their
facilities to ascertain customer satisfaction. Finally, since the
Technology Transfer Act of 1986 makes laboratory researchers
responsible for technology transfer, NASA is amending the position
descriptions of each laboratory science and engineering professional
to hold them accountable for identifying and responding to technology
transfer opportunities.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 16:2.3.4
NASA: Major Challenges for Management (GAO/T-NSIAD-94-18, Oct. 6,
1993).
NASA Aeronautics: Protecting Sensitive Technology (GAO/NSIAD-93-201,
Aug. 12, 1993).
NASA Aeronautics: Impact of Technology Transfer Activities Is
Uncertain (GAO/NSIAD-93-137, Mar. 16, 1993).
NASA Aeronautics: Efforts To Preserve U.S. Leadership in the
Aeronautics Industry Are Limited (GAO/T-NSIAD-92-14, Mar. 18, 1992).
NASA04: STRENGTHEN AND
RESTRUCTURE NASA MANAGEMENT
------------------------------------------------------- Chapter 16:2.4
NASA program management should be aggressively overhauled. This
recommendation outlines a number of steps the agency should take,
both in overall management and in the management of the space station
program.
ACTION ITEMS
----------------------------------------------------- Chapter 16:2.4.1
1. NASA should aggressively 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).
2. NASA should implement the management principles developed for the
redesigned space station program across the agency in all areas of
program and institutional management.
3. NASA should aggressively reposition its staff to meet the
agency's new challenges.
4. NASA should restructure its internal management processes for
program formulation and implementation by formally instituting its
Program Management Council to be chaired by the deputy administrator.
5. NASA should work aggressively 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.
GAO COMMENTS
----------------------------------------------------- Chapter 16:2.4.2
Generally Agree. Many of the specific actions recommended by
NPR--such as efforts to better focus NASA's work, clearly assign
accountability for that work, improve the efficiency of NASA's
operations, and better control the management of major programs and
projects--are clearly intended to improve NASA's performance. There
are, however, also actions that generally or specifically call for
reductions in both NASA and contractor personnel. For several years,
we have expressed concern about NASA's ability to adequately oversee
its contractors' technical and business operations. Whether NASA can
achieve the level of operating economies and efficiencies it will
need to enable the agency to recapture control while simultaneously
reducing its size remains to be seen.
IMPLEMENTATION
----------------------------------------------------- Chapter 16:2.4.3
Partially Implemented. NASA has completed the new program management
structure for the space station. This involved consolidating the
work formerly performed at four NASA sites under four different
contracts into one contract at one location--Johnson Space Center.
NASA cut its workforce in half and eliminated an entire layer of
management. Through reassignments and the use of job fairs at
headquarters and some centers, the reorganization was accomplished
with minor adverse effect on the workforce, according to NASA
officials.
NASA is implementing a series of actions in response to the second
action item. For example, NASA has developed and is implementing a
new support service contract policy. A review panel is enforcing the
new policy and identifying service contracts to be eliminated.
Through June 1994, the panel reviewed over 60 service contracts at
headquarters and determined that approximately 50 percent can be
phased out. Similar reviews are to be performed at other NASA
locations. Also, NASA is currently developing an organizational
handbook that will reduce the volume of internal regulations by half
and institute a new policy that, among other things, stresses fewer
management layers and establishes clear lines of authority and
responsibility.
Relating to both the second and the third action items, NASA has
determined that significant reductions in headquarters staff,
supervisory positions, and administrative functional specialists
positions can be made, and the agency is making progress on
downsizing its workforce by at least 13 percent, or about 3,200
full-time equivalent (FTE) positions, between fiscal years 1992 and
1999. The Federal Workforce Restructuring Act of 1994 allowed NASA
to offer voluntary separation incentives to its employees. The
incentives enabled NASA to reduce its workforce by over 1,200 FTEs
and to achieve its fiscal year 1995 target employment level of just
over 23,000 a year earlier than planned. The remaining 1,200 to
1,300 FTE reduction for fiscal years 1996 through 1999 will be
achieved through attrition and by limiting new hires.
NASA also conducted a roles and missions review at headquarters to
determine appropriate staffing levels for each organizational entity
and to identify fragmentation or duplication of work. Similar
reviews will be done at each field center.
Regarding the fourth action item, NASA established the Program
Management Council to oversee the planning, implementation, and
management of all major programs or projects. The Council is
specifically responsible for ensuring the programs' and projects'
appropriateness, reasonableness, readiness, and affordability when
they are started and for performing a variety of progress reviews
throughout their lives.
Lastly, NASA and the Departments of Commerce, Defense, Energy, and
Transportation issued a summary report in April 1994 identifying
federal aerospace facility shortfalls, new requirements,
consolidation opportunities, and recommendations for closing.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 16:2.4.4
Space Station: Update on the Impact of the Expanded Russian Role
(GAO/NSIAD-94-248, July 29, 1994).
Space Station: Impact of the Expanded Russian Role on Funding and
Research (GAO/NSIAD-94-220, June 21, 1994).
Space Shuttle: Incomplete Data and Funding Approach Increase Cost
Risk for Upgrade Program (GAO/NSIAD-94-23, May 26, 1994).
Space Projects: Astrophysics Facility Program Contains Cost and
Schedule Risk (GAO/NSIAD-94-80, Jan. 28, 1994).
Space Science: Causes and Impacts of Cutbacks to NASA's Outer Solar
System Exploration Missions (GAO/NSIAD-94-24, Dec. 29, 1993).
NASA: Major Challenges for Management (GAO/T-NSIAD-94-18, Oct. 6,
1993).
NASA's FMFIA Assertions and CFO Plan (GAO/AFMD-93-65R, June 11,
1993).
NASA Program Costs: Space Missions Require Substantially More
Funding Than Initially Estimated (GAO/NSIAD-93-97, Dec. 31, 1992).
Space Programs: NASA's Independent Cost Estimating Capability Needs
Improvement (GAO/NSIAD-93-73, Nov. 5, 1992).
Financial Management: NASA's Financial Reports Are Based on
Unreliable Data (GAO/AFMD-93-3, Oct. 29, 1992).
NASA05: CLARIFY THE
OBJECTIVES OF THE MISSION TO
PLANET EARTH PROGRAM
------------------------------------------------------- Chapter 16:2.5
This recommendation suggests a number of steps needed to improve the
management and performance of the Mission to Planet Earth (MTPE)
program.
ACTION ITEMS
----------------------------------------------------- Chapter 16:2.5.1
1. NASA should use innovative management and streamlined procurement
mechanisms to ensure that MTPE development costs are contained within
existing estimates and that life-cycle costs are minimized.
2. NASA should ensure that the development of MTPE is consistent
with high-priority national and international science objectives
relating to global change research.
3. NASA should give emphasis to policymakers in the implementation
of MTPE.
4. NASA should employ innovative development approaches to the Earth
Observation System Data and Information System (EOSDIS) program which
emphasize evolutionary growth, technology infusion, and direct
customer participation.
5. NASA should encourage the educational benefits of the EOSDIS.
6. NASA should assist in ongoing efforts to converge U.S.
operational weather satellites, given the benefits of streamlining
the collection of weather data across the government.
GAO COMMENTS
----------------------------------------------------- Chapter 16:2.5.2
Agree. The specific actions intended under this recommendation are
principally focused on achieving the overall program's science
objectives and meeting user requirements within cost parameters. The
Earth Observing System (EOS) is the most critical component of the
Mission to Planet Earth. Our work addressing the EOS structure and
database development activities indicate the need for these types of
actions to help ensure the operational effectiveness of the data
collection and dissemination effort.
IMPLEMENTATION
----------------------------------------------------- Chapter 16:2.5.3
Partially Implemented. NASA's new Program Management Council will
help the agency comply with the first action item. The Council
reviews, approves, and oversees the MTPE program, including its cost
control. NASA responded to the second action item by coordinating
with the U.S. Global Change Research Program officials and the
Intergovernmental Panel on Climate Change to ensure that the
development of the MTPE program is consistent with national and
international science objectives relating to global change research.
On the third action item, NASA issued a cooperative agreement notice
in January 1994 soliciting state-level participation in MTPE data
applications. NASA has also made historic data sets related to EOS
available to interested science and educational community users at
several of NASA's eight distributed active archive centers and
coordinated with the intelligence community to make certain
nontraditional data sets available. To date, NASA reports strong
interest in the data. NASA also encourages the educational benefits
of EOSDIS by making data available at its archive centers, thus
addressing the fifth action item.
On the fourth action item, NASA officials indicated that they are
employing a variety of innovative development approaches for EOSDIS,
including an open-system concept that is independent of any specific
vendor and permits upgrading of components, thus enabling advanced
technology integration.
Lastly, NASA is a member of a multiagency team studying the
convergence of all U.S. polar-orbiting meteorological satellites.
Under the convergence implementation plan developed by the team, an
integrated program office would be responsible for acquiring,
operating, and managing the converged system. The program office
would prepare a single budget, but funding would actually be
requested separately by each agency from several different
authorizations and appropriations committees. The team is currently
drafting an integrated requirements document to satisfy the needs of
each agency.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 16:2.5.4
NASA: Changes to the Scope, Schedule, and Estimated Cost of the
Earth Observing System (GAO/NSIAD-92-223, July 22, 1992).
EOS Data Policy: Questions Remain About U.S. Commercial Access
(GAO/IMTEC-92-44, June 25, 1992).
Earth Observing System: Broader Involvement of the EOSDIS User
Community Is Needed (GAO/IMTEC-92-40, May 11, 1992).
Earth Observing System: NASA's EOSDIS Development Approach Is Risky
(GAO/IMTEC-92-24, Feb. 25, 1992).
NATIONAL SCIENCE FOUNDATION/OFFICE
OF SCIENCE AND TECHNOLOGY POLICY
(NSF)
=========================================================== Chapter 17
OVERALL SUMMARY
--------------------------------------------------------- Chapter 17:1
Action has been taken to implement each of NPR's three
recommendations. The recommendation to strengthen the coordination
of science policy has been fully implemented through the
establishment of the new National Science and Technology Council
(NSF01). The recommendation to continue automating NSF's research
support functions has been partially implemented; this effort was
initiated in 1994 and is scheduled for completion by the end of
fiscal year 1996 (NSF03). Finally, the recommendation to use the
Federal Demonstration Project to increase research productivity has
not been implemented, but a draft plan for implementation is under
review (NSF02).
GAO CONTACT
------------------------------------------------------- Chapter 17:1.1
Victor S. Rezendes, Energy and Science Issues, Resources, Community,
and Economic Development Division, (202) 512-3841.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 17:2
NSF01: STRENGTHEN
COORDINATION OF SCIENCE
POLICY
------------------------------------------------------- Chapter 17:2.1
NPR recommends modifying the current structure of the Federal
Coordinating Council for Science, Engineering, and Technology
(FCCSET) to strengthen its role in science policy.
ACTION ITEMS
----------------------------------------------------- Chapter 17:2.1.1
1. Modify the current FCCSET structure and reconstitute the
organization as the National Science and Technology Council (NSTC) to
coordinate the development and implementation of science and
technology policy.
2. The proposed policy council should be created immediately by
presidential directive.
GAO COMMENTS
----------------------------------------------------- Chapter 17:2.1.2
Generally Agree. Although we have not done any work focused
specifically on this issue, FCCSET has been generally viewed as
lacking the authority and clout to play a significant role in
directing science policy and in establishing priorities for science
and technology within the federal government. With the growing link
this administration envisions between initiatives in science and
technology and the nation's economic well-being, a stronger process
for formulating policy and setting priorities seems vital. In
addition, we have reported on the need for better coordination of
research activities among federal agencies.
IMPLEMENTATION
----------------------------------------------------- Chapter 17:2.1.3
Fully Implemented. The issuance of two executive orders--the
Establishment of the National Science and Technology Council (E.O.
12881) and the President's Committee of Advisors on Science and
Technology (E.O. 12882)--on November 23, 1993, fully implemented
both of the NPR's action items under this recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 17:2.1.4
Aviation Research: Issues Related to FAA's Research Activities
(GAO/T-RCED-93-68, July 29, 1993).
High Performance Computing: Advanced Research Projects Agency Should
Do More to Foster Program Goals (GAO/IMTEC-93-24, May 17, 1993).
NSF02: USE A FEDERAL
DEMONSTRATION PROJECT TO
INCREASE RESEARCH
PRODUCTIVITY
------------------------------------------------------- Chapter 17:2.2
NPR recommends using a demonstration project structured between
several universities and five federal agencies as a model for a
program to reduce administrative overhead on research grants.
ACTION ITEM
----------------------------------------------------- Chapter 17:2.2.1
The Federal Demonstration Project, in cooperation with OMB, should
define a systematic means to select participants and to introduce
those procedures that are shown to be effective into federal
regulations.
GAO COMMENTS
----------------------------------------------------- Chapter 17:2.2.2
Agree. We support any effort to reduce unnecessary overhead costs.
We have issued a number of reports on this issue. More specifically,
regarding federally funded research at universities, we recommended
in an August 1992 report entitled Federal Research: System for
Reimbursing Universities' Indirect Costs Should Be Reevaluated that
OMB consider involving a cross section of the university community in
the work of the task force it formed to evaluate alternative methods
for reimbursing universities for overhead costs related to federally
sponsored research.
IMPLEMENTATION
----------------------------------------------------- Chapter 17:2.2.3
Not Implemented--Action Taken. A subgroup of the Federal
Demonstration Project's (FDP) steering committee has developed a
draft implementation plan for this NPR recommendation. Entitled "The
Federal Demonstration Project: A Proposal for Implementing
Recommendations of the NPR," the plan was developed in consultation
with the Chair, Interagency Assessment Committee, and with OMB. In
July 1994, it was conveyed to OMB for review and is awaiting OMB's
approval. This plan, which builds on previous FDP initiatives, would
implement the NPR proposal to formalize a process and criteria for
(1) selecting institutions to participate in the FDP and (2)
introducing procedures that are shown to be effective into federal
regulations. The plan establishes the terms and conditions for the
administration of federal research grant awards to the institutions
participating in the FDP.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 17:2.2.4
Federal Research: Advanced Technology Program's Indirect Cost Rates
and Program Evaluation Status (GAO/RCED-93-221, Sept. 10, 1993).
Federal Research: Minor Changes Would Further Improve New NSF
Indirect Cost Guidance (GAO/RCED-93-140, June 3, 1993).
Federal Research: System for Reimbursing Universities' Indirect
Costs Should Be Reevaluated (GAO/RCED-92-203, Aug. 26, 1992).
NSF03: CONTINUE AUTOMATION
OF NSF RESEARCH SUPPORT
FUNCTIONS
------------------------------------------------------- Chapter 17:2.3
NSF should push forward with efforts to implement advanced
information technology in the proposal submission, review, award, and
information dissemination areas.
ACTION ITEMS
----------------------------------------------------- Chapter 17:2.3.1
1. NSF should continue its efforts to implement advanced information
technology in the proposal submission, review, award, and information
dissemination process.
2. A formal means for NSF to share developments with other research
agencies should be defined.
3. NSF should be able to compete for funds to accelerate automation
of grants processing.
GAO COMMENTS
----------------------------------------------------- Chapter 17:2.3.2
Generally Agree. While we have not examined the status of automation
at NSF, we generally support efforts to use advanced information
technologies effectively in carrying out agencies' missions.
IMPLEMENTATION
----------------------------------------------------- Chapter 17:2.3.3
Partially Implemented. NSF has initiated Project Fastlane to
implement advanced information technology. This project involves
placing about 20 basic processes for managing proposals and other
interactions with the research community in an information technology
repository. Other agencies--including the Department of Defense, the
Department of Energy, the National Institutes of Health, and the
National Aeronautics and Space Administration (NASA)--are working
with NSF on this initiative. As the lead agency, NSF has developed a
detailed plan to implement this new technology. Contracts to develop
6 of the 20 basic processes in Project Fastlane were signed in August
1994; the other 14 projects will be implemented in fiscal years 1995
and 1996 (action item 1). As a step toward defining a formal means
for NSF to share developments with other research agencies, NSF has
selected a manager and is developing an approach. NSF has also
conducted five formal meetings with other agencies to let them know
what it is doing. Two other agencies, NASA and the Environmental
Protection Agency, have expressed strong interest in participating in
NSF's effort, and several other agencies are awaiting further
developments (action item 2). NSF has taken no action on the
recommendation that it should be able to compete for funds to
accelerate the automation of grants processing because it believes
that the recommendation requires the creation of a governmentwide
fund and action at a higher level than NSF (action item 3).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 17:2.3.4
None.
SMALL BUSINESS ADMINISTRATION
(SBA)
=========================================================== Chapter 18
OVERALL SUMMARY
--------------------------------------------------------- Chapter 18:1
Actions have been taken on all of the NPR recommendations on SBA,
which should make SBA's programs significantly more responsive to the
needs of small business. Although none of these recommendations has
been fully implemented, three have been partially implemented, and
varying degrees of action have been taken on the remaining five.
Through several initiatives, SBA has partially implemented the
recommendation that it reinvent its credit programs. SBA's new Low
Documentation Loan Program simplifies the application process for
loans under $100,000, and the GreenLine Program guarantees revolving
lines of credit extended to small businesses (SBA03). Public Law
103-403, signed on October 22, 1994, authorized a pilot program that
allows SBA to guarantee loans to nonprofit intermediaries that will,
in turn, make small loans to small businesses (SBA05). To improve
service and efficiency, SBA is also transferring staff from its
headquarters and regional offices to its district offices, as
recommended by NPR (SBA07).
Significant activity has occurred in response to two other
recommendations. Proposed legislation that would allow judicial
review of agencies' compliance with the Regulatory Flexibility Act,
if enacted, is expected to reduce the regulatory burden on small
business (SBA01). Actions taken by the Department of the Treasury's
Office of the Comptroller of the Currency have relaxed some of the
federal guidelines for lending to small businesses (SBA04).
Progress in other areas has been slower. SBA has proposed a new
minority enterprise development program to improve its service to
minority-owned small businesses, but legislation for implementing the
program has not yet been introduced (SBA02). Although SBA developed
a proposal to charge fees for services provided by its Small Business
Development Centers, as NPR recommended, Congress enacted legislation
prohibiting such charges (SBA06). Efforts to obtain better data on
small businesses have been limited to meetings between SBA officials
and officials from the Office of Management and Budget and the
Council of Economic Advisers (SBA08).
GAO CONTACT
------------------------------------------------------- Chapter 18:1.1
Judy A. England-Joseph, Director, Housing and Community Development
Issues, Resources, Community, and Economic Development Division,
(202) 512-7631.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 18:2
SBA01: ALLOW JUDICIAL
REVIEW OF THE REGULATORY
FLEXIBILITY ACT
------------------------------------------------------- Chapter 18:2.1
Allow access to the courts when federal agencies develop rules that
fail to properly examine alternatives that will lessen the burden on
small businesses.
ACTION ITEMS
----------------------------------------------------- Chapter 18:2.1.1
1. The Regulatory Flexibility Act (RFA) of 1980 should be amended to
allow for judicial review of agency determinations under the RFA.
2. An executive order should be issued requiring the SBA Office of
Advocacy to issue governmentwide guidance on appropriate processes
for complying with the analytical requirements of RFA.
GAO COMMENTS
----------------------------------------------------- Chapter 18:2.1.2
Insufficient Information. We have not examined whether judicial
review of the Regulatory Flexibility Act would or would not improve
agencies' compliance with the act. However, other means may be
available to improve compliance. In April 1994, we reported on
federal agencies' implementation of the Regulatory Flexibility Act.
Although this report did not examine the implications of implementing
judicial review, it did identify significant variation in federal
agencies' compliance with the act. To improve compliance, we
suggested that Congress consider amending the act to give SBA clearer
authority to interpret the act's provisions and require SBA to
develop criteria on how federal agencies should conduct analyses.
IMPLEMENTATION
----------------------------------------------------- Chapter 18:2.1.3
Not Implemented--Action Taken. H.R 820, the National Competitiveness
Act of 1994 (as passed by the Senate on Mar. 16, 1994), and H.R.
830, the Regulatory Flexibility Amendments Act of 1993, provide for
the judicial review of agencies' determinations under the RFA (action
item 1). SBA believes an executive order providing RFA guidance
(action item 2) would be premature because no guidance can be
properly issued until the underlying legislative issues have been
addressed.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 18:2.1.4
Regulatory Flexibility Act: Status of Agencies' Compliance
(GAO/GGD-94-105, Apr. 27, 1994).
Regulatory Flexibility Act: Inherent Weaknesses May Limit Its
Usefulness for Small Governments (GAO/HRD-91-16, Jan. 11, 1991).
SBA02: IMPROVE ASSISTANCE
TO MINORITY SMALL BUSINESSES
------------------------------------------------------- Chapter 18:2.2
This proposal recommends a complete review of all federal minority
business assistance programs and the establishment of a Small
Disadvantaged Business Set-Aside program for civilian agencies to
provide increased opportunities for minority small business.
ACTION ITEMS
----------------------------------------------------- Chapter 18:2.2.1
1. By December 1, 1994, the Administrator of SBA and the Secretary
of Commerce, on completion of their review of federal minority
business assistance programs, should recommend improvements in
federal assistance to minority small businesses to the President.
2. The SBA Administrator should streamline the 8(a) application
process to reduce the amount of time involved.
3. The Small Business Act should be amended to allow the Associate
Administrator for Minority Small Business and Capital Ownership
Development to delegate authority for final determinations of Section
8(a) program eligibility.
4. The Small Business Act should be amended to allow SBA to delegate
contract award functions to federal procuring agencies, so long as
they consistently abide by federal acquisition and SBA 8(a) program
regulations, and to provide SBA with the authority to conduct reviews
to verify compliance with 8(a) program regulations.
5. The Small Business Act should be amended to require federal
procuring agencies to use their existing authority to provide advance
payments on 8(a) contracts, when such funding is necessary to
contract performance.
6. The Small Business Act should be amended to provide civilian
agencies the same authority that DOD currently has for its own "Small
Disadvantaged Business Set-Aside" program.
GAO COMMENTS
----------------------------------------------------- Chapter 18:2.2.2
Generally Agree. Our work on SBA's minority business development
program has shown a need to review the effectiveness of federal
minority assistance programs. However, if a governmentwide set-aside
program is established for small disadvantaged businesses, action
should be taken to ensure that the program does not decrease the
opportunities available to small businesses in the Section 8(a)
minority business development program.
IMPLEMENTATION
----------------------------------------------------- Chapter 18:2.2.3
Not Implemented--Action Taken. Although no review has been conducted
of federal assistance to minority small businesses, SBA has proposed
a new Minority Enterprise Development (MED) program to replace its
current Section 8(a) minority development program (action item 1).
As recommended by the NPR, the proposed MED program will streamline
the application process to reduce the time required to process
applications (action item 2), delegate authority for certifying
programs to SBA district offices (action item 3), remove SBA as the
prime contractor on program contracts (action item 4), and institute
a governmentwide program to set aside contracts for small
disadvantaged firms (action item 6). Rather than requiring federal
procuring agencies to advance contract payments to assist firms in
performing contracts, as recommended by the NPR, the MED program
proposes to (1) prequalify firms for credit, thereby enabling them
subsequently to demonstrate their financial capability to perform a
contract, and (2) guarantee loans made to firms in the program at a
higher rate than loans made to other businesses (action item 5). In
August 1994, SBA presented its MED proposal in testimony before the
Senate Small Business Committee. Legislation (S. 2478) passed by
the Senate on October 7, 1994, would reform SBA's 8(a) minority
business development program by, among other things, establishing a
one-stop 8(a) application process, allowing federal agencies to award
8(a) program contracts directly to 8(a) firms, and instituting a
governmentwide program to set aside contracts for small disadvantaged
firms.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 18:2.2.4
Highway Contracting: Disadvantaged Business Program Meets Contract
Goal, but Refinements Are Needed (GAO/RCED-94-168, Aug. 17, 1994).
Small Business: SBA Cannot Assess the Success of Its Minority
Business Development Program (GAO/T-RCED-94-278, July 27, 1994).
Small Business: Information on Participation in SBA's Bonding
Activities (GAO/RCED-94-134, Mar. 24, 1994).
Energy Management: DOE Can Improve Distribution of Dollars Awarded
Under SBA's 8(a) Program (GAO/RCED-94-28, Feb. 23, 1994).
Small Business: The Small Business Administration's Progress in
Restructuring Its Business Development Program (GAO/T-RCED-93-56,
Sept. 22, 1993).
Small Business: Problems Continue With SBA's Minority Business
Development Program (GAO/RCED-93-145, Sept. 17, 1993).
Small Business: Federal Agencies' Contracting Goals for Women-Owned
Businesses (GAO/T-RCED-92-95, Sept. 17, 1992).
Small Business: Efforts to Provide Federal Procurement Dollars to
Women-Owned Businesses (GAO/RCED-92-185, July 28, 1992).
Small Business: The Small Business Administration's Progress in
Restructuring Its 8(a) Business Development Program
(GAO/T-RCED-92-35, Mar. 4, 1992).
Small Business: Problems in Restructuring SBA's Minority Business
Development Program (GAO/RCED-92-68, Jan. 31, 1992).
Small Business: Participation in SBA's 8(a) Business Development
Program (GAO/RCED-91-173, June 11, 1991).
Small Business: Information on and Improvements Needed to Surety
Bond Guarantee Program (GAO/RCED-91-99, Apr. 23, 1991).
Minority Business: Minority Business Development Agency Needs to
Address Program Weaknesses (GAO/RCED-91-114, Apr. 16, 1991).
Minority Business: Management Improvements Needed at Minority
Business Development Agency (GAO/RCED-90-69, Jan. 19, 1990).
SBA03: REINVENT THE U.S.
SMALL BUSINESS
ADMINISTRATION'S CREDIT
PROGRAMS
------------------------------------------------------- Chapter 18:2.3
Identify ways to improve SBA's credit programs to make SBA more
responsive to those industries with the potential for creating a
higher number of jobs, those involved in international trade, and
those providing critical technologies. It will also enable the
agency to operate more efficiently.
ACTION ITEM
----------------------------------------------------- Chapter 18:2.3.1
The SBA Administrator, upon 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.
GAO COMMENTS
----------------------------------------------------- Chapter 18:2.3.2
Generally Agree. A reassessment of SBA's credit programs is
appropriate. Few changes have been made in SBA's credit programs
over the last several years even though significant structural
changes have occurred in the banking industry. Changes to make SBA's
credit programs more user-friendly and more accessible, as discussed
by the NPR, would benefit both small businesses and lenders.
IMPLEMENTATION
----------------------------------------------------- Chapter 18:2.3.3
Partially Implemented. In a February 1994 report to the President,
the SBA Administrator reported on small businesses' concerns and
SBA's reaction to these concerns. Since that time, SBA has taken
several steps to improve its credit programs. SBA's Low
Documentation Loan Program, implemented in June 1994, is designed to
encourage lenders to guarantee loans of $100,000 or less by requiring
less paperwork for loan applications (a single loan application, in
many cases) and allowing a lender to rely on an applicant's character
rather than on credit factors to approve a loan. SBA's GreenLine
Program, implemented in July 1994, provides guarantees of up to 5
years for lines of credit extended by lenders to small businesses.
According to SBA, GreenLine is designed for small businesses whose
capital needs are recurring and cyclical. SBA's Women's
Prequalification Pilot Loan Program, under way in 11 cities, is
designed to streamline the application process for loans of $250,000
or less to businesses owned by women and to respond quickly to
nonprofit intermediaries packaging such loans. SBA's Small Loan
Express Program, which SBA plans to have operating by the end of
1994, will allow selected lenders to approve, service, and liquidate
SBA-guaranteed loans of up to $100,000. SBA also plans to develop a
revised application package for section 7(a) small business loans.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 18:2.3.4
Interstate Banking: Benefits and Risks of Removing Regulatory
Restrictions (GAO/GGD-94-26, Nov. 3, 1993).
Bank Regulation: Regulatory Impediments to Small Business Lending
Should Be Removed (GAO/GGD-93-121, Sept. 7, 1993).
Small Business: Financial Condition of SBA's Business Loan Portfolio
Is Improving (GAO/RCED-92-49, Dec. 3, 1991).
SBA04: EXAMINE FEDERAL
GUIDELINES FOR SMALL
BUSINESS LENDING
REQUIREMENTS
------------------------------------------------------- Chapter 18:2.4
The federal government should examine the guidelines bank regulators
set for small business lending by financial institutions to ensure
that capital is available without undue barriers while maintaining
the integrity of the financial institutions.
ACTION ITEMS
----------------------------------------------------- Chapter 18:2.4.1
1. The Department of the 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.
2. The Federal Financial Institutions Examination Council should
develop an objective economic indicator of lending to small business.
GAO COMMENTS
----------------------------------------------------- Chapter 18:2.4.2
Generally Agree. We support the need to examine federal guidelines
for small business lending requirements in order to make capital
available to small businesses. We have recommended changes in
collateral requirements and in supervisory procedures that could
facilitate traditional small business lending without compromising
the safety and soundness of banks.
IMPLEMENTATION
----------------------------------------------------- Chapter 18:2.4.3
Not Implemented--Action Taken. A 1993 directive from the Department
of the Treasury's Office of the Comptroller of the Currency (OCC)
provided that, for highly rated and adequately capitalized
institutions, a portion of the loans to small and medium-sized
businesses would be evaluated solely on performance. In July 1994,
OCC also issued streamlined examination procedures that place greater
emphasis on performance for community banks (action item 1).
According to OCC, regulatory agencies have decided to defer action on
collecting data on lending to small businesses until a revised
Community Reinvestment Act regulation is adopted (action item 2).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 18:2.4.4
Bank Regulation: Regulatory Impediments to Small Business Lending
Should Be Removed (GAO/GGD-93-121, Sept. 7, 1993).
Small Business: Analysis of SBA's Preferred Lenders Program
(GAO/RCED-92-124, May 15, 1992).
SBA05: MANAGE THE MICROLOAN
PROGRAM TO INCREASE LOANS
FOR SMALL BUSINESSES
------------------------------------------------------- Chapter 18:2.5
Allowing SBA to guarantee loans made by banks to nonprofit
intermediaries, which could, in turn, make small loans to low-income
individuals, women, minorities, and other small businesses unable to
obtain credit through traditional lending sources, would increase
private sector participation and lessen administrative burdens linked
to direct government lending.
ACTION ITEM
----------------------------------------------------- Chapter 18:2.5.1
Subsection (m), section 7 of the Small Business Act, 15 U.S.C. 636,
should be amended to allow SBA to provide a 100-percent guarantee on
loans made by approved lenders to intermediaries selected by SBA.
GAO COMMENTS
----------------------------------------------------- Chapter 18:2.5.2
Disagree. We disagree with NPR's proposal to provide a 100-percent
guarantee for loans made by banks to nonprofit intermediaries. The
microloan program is currently a direct loan program: SBA lends
funds directly to the nonprofit intermediaries. Shifting to a
guarantee program would add complexity to the program by introducing
an additional party--banks--to the transaction without requiring that
party to contribute substantively to the program. Furthermore,
shifting to a guarantee program would not significantly reduce SBA's
administrative responsibilities. In addition to lending funds to
these nonprofit intermediaries, SBA provides grants to support
technical assistance activities. Hence, SBA will need to continue
monitoring and overseeing the program's activities, making any
substantial decrease in SBA's administrative responsibilities
unlikely.
IMPLEMENTATION
----------------------------------------------------- Chapter 18:2.5.3
Partially Implemented. The Small Business Administration
Reauthorization and Amendment Act of 1994 (P.L. 103-403), signed on
October 22, 1994, authorizes SBA, during fiscal years 1995 through
1997, to establish a pilot program under which SBA can guarantee
loans made by private lenders for up to 20 intermediaries in the
program. Loans guaranteed by SBA under the pilot program can have a
term of 10 years and a guarantee rate of not less than 90 percent and
not more than 100 percent.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 18:2.5.4
None.
SBA06: ESTABLISH USER FEES
FOR SMALL BUSINESS
DEVELOPMENT CENTER SERVICES
------------------------------------------------------- Chapter 18:2.6
Authorize Small Business Development Centers (SBDC) to charge a
nominal fee for their services to reduce federal outlays and require
the direct beneficiaries of the assistance to pay a share of the
cost.
ACTION ITEM
----------------------------------------------------- Chapter 18:2.6.1
Title II of the Small Business Development Center Act of 1980, Public
Law 96-302, should be amended to allow SBA to establish user fees for
SBDC counseling services in the amount of $15 per hour.
GAO COMMENTS
----------------------------------------------------- Chapter 18:2.6.2
Insufficient Information. Although establishing user fees for Small
Business Development Centers' (SBDC) services might reduce federal
outlays, we have not examined what impact charging clients would have
on program participation and program effectiveness. Currently, SBDCs
provide a variety of business-related services to their clients. The
centers receive financial assistance from SBA in the form of annual
grants, but to be eligible for a grant, the centers must provide an
equal, matching amount of funds from nonfederal sources. However,
most SBDCs put major emphasis on counseling, which is provided at no
cost. Our past work has determined that most clients are satisfied
with the counseling services they receive.
IMPLEMENTATION
----------------------------------------------------- Chapter 18:2.6.3
Not Implemented--Action Taken. Although SBA took action to implement
this recommendation, legislation was enacted prohibiting the
recommended action. Specifically, SBA included in its fiscal year
1995 budget request a provision authorizing SBDCs to charge a
$15-per-hour fee for counseling services. This provision was
rejected by the House Committee on Appropriations, which inserted
language into the fiscal year 1995 appropriations bill prohibiting
SBA from charging user fees for SBDC services. This bill was signed
into law on August 26, 1994 (P.L. 103-317).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 18:2.6.4
Small Business: Development Centers Meet Counseling Needs of Most
Clients (GAO/T-RCED-90-65, Apr. 18, 1990).
Small Business: Development Centers Meet Counseling Needs of Most
Clients (GAO/RCED-90-38BR, Nov. 22, 1989).
SBA07: DISTRIBUTE SBA STAFF
BASED ON WORKLOAD AND
ADMINISTRATIVE EFFICIENCY
------------------------------------------------------- Chapter 18:2.7
Reallocate staff based on administrative efficiency and objective
workload measures to allow the SBA to better serve its customers by
shifting resources from its central and regional offices into its
district offices.
ACTION ITEM
----------------------------------------------------- Chapter 18:2.7.1
The SBA Administrator should reallocate SBA staff in line with basic
principles of administrative efficiency and program workload.
GAO COMMENTS
----------------------------------------------------- Chapter 18:2.7.2
Agree. We support allocating resources to where they can do the most
good. Reallocating SBA personnel to the district offices would
improve the effectiveness of SBA's program delivery by putting more
resources where the small businesses are located.
This approach would also reduce the workload of the overburdened
district office staff by providing additional resources without
increasing SBA's overall budget.
IMPLEMENTATION
----------------------------------------------------- Chapter 18:2.7.3
Partially Implemented. SBA has completed three rounds of requests
for voluntary reassignment to its district offices. During these
rounds, 157 headquarters and field office staff volunteered to
relocate to the district offices with the greatest need for staff, as
defined on the basis of workload. SBA expects its restructuring of
regional offices to be completed soon. Through this restructuring,
SBA has reduced the size of its regional offices, decentralized its
field operations, and shifted employees into its district offices.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 18:2.7.4
Small Business: Problems Continue With SBA's Minority Business
Development Program (GAO/RCED-93-145, Sept. 17, 1993).
SBA08: IMPROVE FEDERAL DATA
ON SMALL BUSINESSES
------------------------------------------------------- Chapter 18:2.8
The quality of information made available to shape federal
legislative and regulatory actions affecting small and large
businesses will be increased if federal household and employer
surveys include a "size of firm" question.
ACTION ITEM
----------------------------------------------------- Chapter 18:2.8.1
The SBA Administrator should 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.
GAO COMMENTS
----------------------------------------------------- Chapter 18:2.8.2
Agree. Improving the federal government's data on small businesses
is appropriate. Inadequate information on small business activities
hinders congressional and executive branch decisionmaking. Such data
would facilitate the evaluation of federal programs and the potential
impact of regulatory actions.
IMPLEMENTATION
----------------------------------------------------- Chapter 18:2.8.3
Not Implemented--Action Taken. To garner support for increasing the
collection and sharing of information about small businesses, SBA's
Chief Counsel for Advocacy has met with officials from (1) the Office
of Management and Budget's Office of Information and Regulatory
Affairs and (2) the Council of Economic Advisers.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 18:2.8.4
Small Business: Problems Continue With SBA's Minority Business
Development Program (GAO/RCED-93-145, Sept. 17, 1993).
DEPARTMENT OF STATE/U.S.
INFORMATION AGENCY (DOS)
=========================================================== Chapter 19
OVERALL SUMMARY
--------------------------------------------------------- Chapter 19:1
The State Department and the U.S. Information Agency (USIA) have
begun to adjust to a post-Cold War environment and to budgetary
constraints. Both agencies are exploring ways to cut costs and are
making some management improvements. Most of these changes were
under way before the NPR report but the report added impetus to these
efforts. Progress toward implementing the NPR recommendations is
slow in those instances requiring legislation and interagency
coordination. For example, the NPR recommends expanding the
authority of Chiefs of Missions (COM) overseas as a cost reduction
measure. Required legislation has not been introduced and some
affected agencies, such as USIA, do not agree with this
recommendation.
State has made progress implementing recommendations on the promotion
of U.S. business overseas and improving the collection of
receivables. State faces a major challenge implementing
recommendations on improving its financial and information management
programs, and it will take many years of concerted action to achieve
substantial improvements.
The NPR report included a recommendation to consolidate U.S.
government international broadcasting operations. The consolidation
legislation, proposed before the NPR report, passed on April 30,
1994. To implement the legislation, USIA has been working with the
Board for International Broadcasting to develop a plan for
consolidating the Voice of America and Radio Free Europe/Radio
Liberty. Implementing the consolidation will not be easy because
funding limits will require significant cuts in both staff and
broadcasts. In addition, the costs to reduce the size of Radio Free
Europe/Radio Liberty may exceed the administration's estimates.
GAO CONTACT
------------------------------------------------------- Chapter 19:1.1
Joseph E. Kelley, Director-in-Charge, International Affairs Issues,
National Security and International Affairs Division, (202) 512-4128.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 19:2
DOS01: EXPAND THE AUTHORITY
OF CHIEFS OF MISSION
OVERSEAS
------------------------------------------------------- Chapter 19:2.1
This recommendation proposes a pilot program to expand the management
authority of Chiefs of Mission overseas in the allocation of fiscal
and staffing resources.
ACTION ITEMS
----------------------------------------------------- Chapter 19:2.1.1
1. The President should issue a directive establishing a pilot
program to increase the management authority of Chiefs of Mission.
2. Pilot missions should achieve a 20 percent cumulative reduction
in overall spending during the span of the project.
3. Pilot COMs should develop and submit recommendations for
reapportioning resources within 120 days.
4. Pilot COMs should encourage the full participation of members of
the country team in the development of resource reapportionment
recommendations.
5. Upon completion of the pilot test, the President's original
directive detailing the test should become the basis for a revised
NSDD-38.
GAO COMMENTS
----------------------------------------------------- Chapter 19:2.1.2
Generally Agree. Although we have not yet taken a position on the
level of authority that should be granted to the Chief of Mission, we
support the recommendation for a pilot study. We are currently
reviewing the size and costs of U.S. government overseas staffing
and the processes and mechanisms used to determine staffing needs.
As part of this work, we are examining the Chief of Mission's role in
controlling the size and the composition of government staff at U.S.
embassies and consulates. We believe that the expanded Chief of
Mission authority recommended by NPR may help to achieve reductions
in overall spending at embassies and ensure that resources are
targeted on priority goals and objectives. However, there may also
be some negative consequences. For example, the Chief of Mission
could use the expanded authority to discontinue activities that a
federal agency believes are essential or in a way not intended by
Congress. In addition, jurisdictional issues within the executive
and legislative branches may make it difficult to implement the
recommendation.
To determine if expanded Chief of Mission authority is feasible and
can achieve savings without significant negative consequences, we
believe that conducting a study of the concept would be worthwhile.
Careful evaluation of the study should be performed before expanded
authority over all resources and staffing is granted to all Chiefs of
Mission. In addition, we believe that missions of varying size
should be considered as sites for the pilot program.
IMPLEMENTATION
----------------------------------------------------- Chapter 19:2.1.3
Not Implemented--No Action Taken. The State Department agrees with
this recommendation and believes expansion of the Chief of Mission
authority would promote more efficient use of U.S. government
resources allocated for foreign policy objectives. State is
exploring how to implement a pilot project to test the expansion of
the Chief of Mission authority but is awaiting White House action
before proceeding further. State believes that initiation and
successful implementation of the project will depend on strong
support and commitment from the President and the Vice President and
that legislative action is needed before proceeding to implement a
pilot program.
The President has not issued a directive to establish the pilot
program proposed by the NPR. State has not proposed legislative
action because it believes the pilot program should be viewed as an
administration initiative in order to gain the interagency support
such a project would require. The U.S. Information Agency (USIA)
expressed concern that implementing this recommendation would impinge
upon its legislative mandate. State recognizes that other agencies
may also object to expanding the authority of the Chiefs of Mission.
State officials told us the Department can move no further on this
recommendation until the NPR/Vice President's staff propose the
needed legislation to Congress. However, NPR staff advised us that
legislative action is the agency's responsibility.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 19:2.1.4
State Department: Overseas Staffing Process Not Linked to Policy
Priorities (GAO/NSIAD-94-228, Sept. 20, 1994).
DOS02: INTEGRATE THE
FOREIGN AFFAIRS RESOURCE
MANAGEMENT PROCESS
------------------------------------------------------- Chapter 19:2.2
NPR recommends specific reforms of the interagency foreign policy
resource management process to improve coordination. The
recommendation also covers specific improvements within the
Department of State.
ACTION ITEMS
----------------------------------------------------- Chapter 19:2.2.1
1. The Secretary of State, in conjunction with the National Security
Council and the Office of Management and Budget, should reform the
interagency foreign policy resource management process for Budget
Function 150.
2. The President should issue a directive to strengthen the
authority of the Secretary of State in the Function 150 interagency
resource management process.
3. The Secretary of State should extend the new integrated process
to the field.
4. The Secretary of State should play a role in the resource
allocation process for non-Function 150 international expenditures.
5. The Department of State should develop a more strategic approach
to its internal management.
GAO COMMENTS
----------------------------------------------------- Chapter 19:2.2.2
Generally Agree. We have not reviewed the government's processes for
allocating resources to the various foreign affairs objectives.
Neither have we reviewed the specific reforms that NPR recommends.
However, we recognize that effective use of limited resources
requires a strategic planning and budgeting process that allocates
resources to the most important priorities. For example, in March
1992, we recommended a strategic management approach to help the
Agency for International Development face current and future
challenges.
Current U.S. government processes for allocating resources to U.S.
foreign affairs objectives are fragmented among many different
agencies, budget functions, and congressional committees. Developing
a more integrated approach will not be easy (DOS01 proposes one
approach). However, we believe that implementation of NPR's
recommendations could assist government decisionmakers to focus on
the range of U.S. foreign affairs objectives, the agencies involved,
and the costs of programs. This focus would help ensure that
available resources are allocated in accordance with priorities.
Within the State Department, we agree with NPR that management can
improve the way priorities are set and resources allocated through
(1) a more strategic, mission-driven approach; (2) better integration
of program planning with budget formulation and allocation of funds;
and (3) refinements to the program planning process.
IMPLEMENTATION
----------------------------------------------------- Chapter 19:2.2.3
Not Implemented--Action Taken. The President has not issued a
directive to strengthen the authority of the Secretary of State in
the Budget Function 150 interagency resource management process as
recommended by the NPR. However, the Secretary of State established
the Office of Resources, Plans, and Policy to assist the 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 the Office of Management and Budget and
other government agencies. The creation of this office appears to
conform with the NPR recommendation. However, there are other
agencies, including the Department of Commerce and the Department of
Defense, whose budgets are not included in Function 150. This fact
was recognized by the NPR, but was not addressed by its
recommendations. State recognizes the need to coordinate these other
activities for a fully integrated foreign affairs resource management
process.
In mid-1994, the Under Secretary for Management began conducting
periodic meetings with all the under secretaries, acting as a
"corporate board," to develop a resource management strategy to meet
the highest priority goals for State operations. According to State
officials, these meetings are being held in an effort to better link
resources to policy priorities. However, no time frames for
implementing the strategy have been established. In addition, the
Department's program planning process is an effort to link resources
with foreign policy and management priorities. To increase the
importance of the program planning process, we were told that the
plans are to be tied to the posts' budget request.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 19:2.2.4
State Department: Overseas Staffing Process Not Linked to Policy
Priorities (GAO/NSIAD-94-228, Sept. 20, 1994).
Foreign Affairs Issues (GAO/OCG-93-26TR, Dec. 1992).
Voice of America: Management Actions Needed to Adjust to a Changing
Environment (GAO/NSIAD-92-150, July 24, 1992).
AID Management: Strategic Management Can Help AID Face Current and
Future Challenges (GAO/NSIAD-92-100, Mar. 6, 1992).
DOS03: IMPROVE STATE
DEPARTMENT EFFORTS TO
PROMOTE U.S. BUSINESS
OVERSEAS
------------------------------------------------------- Chapter 19:2.3
International trade is an important responsibility of U.S. missions
overseas in the post-Cold War world. This recommendation outlines
several improvements that can be made in State Department efforts in
this area.
ACTION ITEMS
----------------------------------------------------- Chapter 19:2.3.1
1. The State Department should improve coordination with other
agencies involved in international trade.
2. The State Department should define the scope of its business
facilitation activities.
3. The State Department should rotate Foreign Service officers to
the Department of Commerce headquarters and field offices, where
possible.
4. The State Department should improve coordination between various
internal bureaus to facilitate the exchange of vital trade
information.
5. The State Department should provide greater authority and
resources to ambassadors to improve the promotion of U.S. business
interests.
GAO COMMENTS
----------------------------------------------------- Chapter 19:2.3.2
Generally Agree. Although we have not examined the specific actions
recommended by NPR, we agree that State can make a major contribution
in promoting U.S. business interests abroad. However, State's
efforts should conform to the requirements of the administration's
National Export Strategy, and be coordinated with and complement the
efforts of other federal agencies that are active in this area,
notably the Departments of Commerce and Agriculture.
IMPLEMENTATION
----------------------------------------------------- Chapter 19:2.3.3
Partially Implemented. The State Department has taken several steps
to improve its efforts to promote business overseas. The Secretary
of State has identified two primary missions for the Department: (1)
the reduction of foreign barriers to U.S. trade and investment and
(2) aggressive advocacy on behalf of U.S. firms. State expects its
Coordinator for Business Affairs to foster internal and external
coordination and improve the effectiveness of both U.S. and overseas
promotion efforts. For example, State's Coordinator for Business
Affairs is an active participant in the Trade Promotion Coordinating
Committee, which is working to develop a trade advocacy network.
State worked with the committee to prepare a summary of
export-related expenditures, which was included in the President's
fiscal year 1995 budget submission. The Coordinator for Business
Affairs wants to formalize the consideration of business interests in
State's policymaking structure.
State and Commerce officials have discussed assigning State economic
officers to the Commerce Department on a temporary basis. However,
implementation plans have not been developed.
To foster internal coordination, State created the Commercial
Coordinating Committee, comprised of representatives from all of the
Department's regional bureaus and most of its functional bureaus.
The Foreign Service Institute, which provides training to Department
and other U.S. government employees involved in foreign affairs, has
revised several training programs to include trade-related issues.
Many U.S. embassies have prepared strategic commercial plans, and
selected overseas posts were provided funding from a $250,000
business facilitation incentive fund.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 19:2.3.4
International Trade: Coordination of U.S. Export Promotion
Activities in Pacific Rim Countries (GAO/GGD-94-192, Aug. 29, 1994).
Rice Program: Government Support Needs to be Reassessed
(GAO/RCED-94-88, May 26, 1994).
Export Promotion: Governmentwide Plan Contributes to Improvements
(GAO/T-GGD-94-35, Oct. 26, 1993).
U.S. Trade and Development Agency: Limitations Exist in its Ability
to Help Generate U.S. Exports (GAO/GGD-94-9, Oct. 20, 1993).
Export Promotion: Initial Assessment of Governmentwide Strategic
Plan (GAO/T-GGD-93-48, Sept. 29, 1993).
Export Promotion: Governmentwide Strategy Needed for Federal
Programs (GAO/T-GGD-93-7, Mar. 15, 1993).
Foreign Affairs Issues (GAO/OCG-93-26TR, Dec. 1992).
International Trade Issues (GAO/OCG-93-11TR, Dec. 1992).
Overseas Staffing: Embassies in the Former Soviet Union
(GAO/NSIAD-92-306, Aug. 31, 1992).
Overseas Staffing: U.S. Economic, Commercial, and Agricultural
Staffing in Japan and Korea (GAO/NSIAD-92-162, Apr. 24, 1992).
Export Promotion: Federal Programs Lack Organizational and Funding
Cohesiveness (GAO/NSIAD-92-49, Jan. 10, 1992).
DOS04: PROVIDE LEADERSHIP
IN THE DEPARTMENT'S
INFORMATION MANAGEMENT
------------------------------------------------------- Chapter 19:2.4
The Department of State should make significant changes in the way it
manages information technology policy. Several improvements are
recommended.
ACTION ITEMS
----------------------------------------------------- Chapter 19:2.4.1
1. The State Department should establish a position for development
and oversight of departmentwide information management policy.
2. The State Department should use private and/or public sector
expertise in developing a departmentwide strategic plan for migrating
to open systems.
GAO COMMENTS
----------------------------------------------------- Chapter 19:2.4.2
Agree. Our work strongly supports this recommendation. In our
August 1994 report on State's efforts to improve its financial
management systems, we noted that it has serious weaknesses in
management and accountability of real and personal property,
worldwide disbursing and cashiering, and payroll transactions.
Information system weaknesses contribute to State's financial
management problems and, as a result, are reported as one of the
Office of Management and Budget's high-risk categories. However,
State needs a concerted effort, involving managers at all levels, to
identify information requirements and focus on how long-standing
problems can best be addressed. In particular, State needs to
establish a leadership and oversight structure that can develop a
departmentwide information management strategy plan and provide
support, direction, and focus for information management initiatives.
IMPLEMENTATION
----------------------------------------------------- Chapter 19:2.4.3
Not Implemented--Action Taken. State does not have the
organizational management structure needed to help ensure the
successful development of its information system initiatives. For
example, State has not established a chief information management
officer as a senior management partner to manage and control system
improvements on an enterprisewide basis and to coordinate among top
executives, line managers, and information management specialists.
State's project to develop an integrated financial management system
is part of a departmentwide effort to redesign its current
information systems and move them from proprietary computer equipment
to an open system environment. State estimates that this effort will
cost about $530 million from fiscal years 1994 through 1998. In our
May 1994 report on best practices in information resource management,
we provided summaries of 11 fundamental practices that can help
agencies improve the management of their information resources and
system development efforts.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 19:2.4.4
Financial Management: State's Systems Planning Needs to Focus on
Correcting Long-Standing Problems (GAO/AIMD-94-141, Aug. 12, 1994).
Executive Guide: Improving Mission Performance Through Strategic
Management and Technology--Learning From Leading Organizations
(GAO/AIMD-94-115, May 1994).
State Department: Survey of Administrative Issues Affecting
Embassies (GAO/NSIAD-93-218, July 12, 1993).
Financial Management: Serious Deficiencies in State's Financial
Systems Require Sustained Attention (GAO/AFMD 93-9, Nov. 13, 1992).
DOS05: REDUCE MISSION
OPERATING COSTS
------------------------------------------------------- Chapter 19:2.5
Several recommendations are made for reducing U.S. costs to operate
missions overseas, including eliminating certain facilities, reducing
security costs, and considering altogether new forms of overseas
representation.
ACTION ITEMS
----------------------------------------------------- Chapter 19:2.5.1
1. All agencies with overseas representation should consolidate
administrative support services where appropriate.
2. The State Department should review all Marine Security Guard
detachments and deactivate them where possible.
3. Legislation should be enacted to amend the Foreign Relations
Authorization Act to reduce costs of local security provision.
4. USIA should take steps to close selected USIA library and
reference centers.
5. The State Department should explore alternative models of
representation abroad.
GAO COMMENTS
----------------------------------------------------- Chapter 19:2.5.2
Generally Agree. Although we have not examined the specific
cost-cutting actions recommended by NPR, we support the general
thrust of the recommendations. In several reports, we have
recommended that State correct management weaknesses affecting
overseas posts in the areas of real estate, property and funds,
administrative services, and other areas. We believe that improved
management can reduce costs.
For many years, we have reported long-standing problems with the
Department's overseas real estate programs. As a result of these
problems, the Comptroller General designated management of overseas
real property as an area at high risk for waste and mismanagement.
State is taking actions to improve its management practices.
However, it is important that the Department continue its commitment
to management reforms and provide strong oversight of overseas real
property actions.
We also believe that State and other foreign affairs agencies need to
seriously consider whether their overseas activities remain essential
and affordable given the changing world and current budget
limitations. In an ongoing review, we are examining agencies'
efforts to adopt new forms of overseas representation to reduce
costs.
IMPLEMENTATION
----------------------------------------------------- Chapter 19:2.5.3
Partially Implemented. For many years the State Department has been
considering new approaches to U.S. representation abroad. For
example, the Special Embassy Program was established in 1986 to
minimize administrative demands on small posts by taking advantage of
communications and information technology. The program was tested at
11 posts and expanded in 1988 to streamline operations in response to
budgetary problems. The criteria for inclusion in the program has
changed and is now solely the size of the post. The program now
includes 57 posts, many of which are in areas where U.S. interests
are significant.
State officials view the Department's program planning process as a
vehicle through which cost savings can be achieved. The Under
Secretary for Management has issued reduction goals for staffing for
fiscal years 1994 to 1998. These goals require State's bureaus to
examine prospects for restructuring overseas staffing by closing
consulates; consolidating administrative support; reducing the size
of large, mid-size, or small embassies; and reducing security costs
where feasible.
State has deactivated Marine security guard detachments at eight
posts and plans deactivations at four more posts by April 1995.
Deactivation at three additional posts is pending. The NPR suggested
lifting legal restrictions on hiring security guards overseas. We
were told that the fiscal years 1994 and 1995 Foreign Relations
Authorization Act tightened the restrictions and that the Office of
Management and Budget did not support a State Department legislative
proposal to lift the restriction.
The State Department believes legislation is needed to require all
agencies with overseas representation to consolidate administrative
support services. This legislation has not been proposed. According
to a State Department report, there have been disputes with other
agencies over the quality and responsiveness of support already
provided. State officials said they have requested, but have not yet
received Office of Management and Budget assistance in resolving
issues relating to the administrative support provided to other
agencies.
USIA is studying the need for its activities in industrialized,
information-rich countries. We were told that this study includes
reviewing the need for libraries. We were also told that some
libraries have been reduced in size and others have been consolidated
with Foreign Commercial Service libraries operated by the Commerce
Department.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 19:2.5.4
State Department: Overseas Staffing Process Not Linked to Policy
Priorities (GAO/NSIAD-94-228, Sept. 20, 1994).
State Department: Widespread Management Weaknesses at Overseas
Embassies (GAO/T-NSIAD-93-17, July 13, 1993).
State Department: Survey of Administrative Issues Affecting
Embassies (GAO/NSIAD-93-218, July 12, 1993).
State Department: Management Weaknesses at the U.S. Embassies in
Panama, Barbados, and Grenada (GAO/NSIAD-93-190, July 9, 1993).
State Department: Management Weaknesses at the U.S. Embassy in
Mexico City, Mexico (GAO/NSIAD-93-88, Feb. 8, 1993).
Management of Overseas Real Property (GAO/HR-93-15, Dec. 1992).
Foreign Affairs Issues (GAO/OCG-93-26TR, Dec. 1992).
State Department: Management Weaknesses in the Security Construction
Program (GAO/NSIAD-92-2, Nov. 29, 1991).
State Department: Status of Actions to Improve Overseas Procurement
(GAO/NSIAD-92-24, Oct. 25, 1991).
State Department: Efforts Underway to Enhance Management of Overseas
Real Property (GAO/NSIAD-91-277, Sept. 5, 1991).
State Department: Efforts to Improve Management of Overseas Real
Property (GAO/T-NSIAD-91-40, June 20, 1991).
State Department: Proposed Overseas Housing Standards Not Justified
(GAO/NSIAD-90-17, Dec. 18, 1989).
State Department: Management of Overseas Real Property Needs
Improvement (GAO/NSIAD-89-116, Apr. 13, 1989).
Transition Series: Department of State Issues (GAO/OCG-89-19TR, Nov.
1988).
State Department's Management of Real Property (GAO/T-NSIAD-89-1,
Oct. 5, 1988).
Overseas Support: Current U.S. Administrative Support System Is Too
Complicated (GAO/NSIAD-88-84, Mar. 25, 1988).
DOS06: CONSOLIDATE U.S.
NONMILITARY INTERNATIONAL
BROADCASTING
------------------------------------------------------- Chapter 19:2.6
This recommendation supports the administration's decision to
consolidate U.S. international broadcasting under the U.S.
Information Agency (USIA) and outlines ways of extending the benefits
of this change.
ACTION ITEMS
----------------------------------------------------- Chapter 19:2.6.1
1. Legislation should be enacted to consolidate U.S. international
broadcasting under USIA.
2. USIA and the Broadcasting Board of Governors should continue to
identify other broadcasting consolidation or elimination
opportunities.
3. USIA should reallocate broadcasting resources from radio to
television.
GAO COMMENTS
----------------------------------------------------- Chapter 19:2.6.2
Agree. For years, we have advocated the consolidation of U.S.
international broadcasting activities. In our December 1992 report
on foreign affairs issues, we suggested that consideration be given
to eliminating potential duplication of activities between Radio Free
Europe/Radio Liberty (RFE/RL) and the Voice of America (VOA). We
support the administration's decision and the NPR recommendation that
these stations be consolidated. The consolidation should improve
both the effectiveness and efficiency of broadcasting efforts, and in
the long run result in significant savings. In our September 1993
report, we identified cost and administrative issues surrounding the
legislative proposal to consolidate broadcasting activities.
In our January 1994 report on VOA, we discussed alternatives to
shortwave radio broadcasts. We noted that according to a USIA
research report, communications satellites are making television
programming more readily available to the world's 1 billion plus
television sets. USIA research shows that, where it is available,
television has become the primary source of news. Therefore, we
generally agree with NPR on reallocating resources from radio to
television. However, less overall programming would result because
television production costs are significantly more than radio.
IMPLEMENTATION
----------------------------------------------------- Chapter 19:2.6.3
Partially Implemented. On April 30, 1994, Congress passed the U.S.
International Broadcasting Act of 1994 to achieve economies and
strengthen the capability of the United States to use broadcasting to
support freedom and democracy in a rapidly changing international
environment. The law expressed the sense of Congress that the
funding of RFE/RL should be assumed by the private sector not later
than December 31, 1999.
The law created a Board of Governors to oversee RFE/RL, VOA, and
other U.S. nonmilitary international broadcasting activities. The
President has not yet appointed the members of the new board. The
U.S. international broadcast operations will be consolidated within
the USIA in an International Broadcasting Bureau.
Since the law was passed, the USIA and its broadcasting staff have
been working with the staff of RFE/RL and the Board for International
Broadcasting to develop a consolidation plan that has been sent to
the President. However, consolidation will not be complete for some
time. During fiscal year 1995 RFE/RL, and to a lesser degree VOA,
will undergo significant downsizing. In addition, the President has
approved moving RFE/RL operations from Munich, Germany to Prague, the
Czech Republic in 1995.
The NPR recommended that USIA reallocate broadcasting resources from
radio to television. During the past year, USIA has studied
television, its organizational placement, and its use to support the
agency's mission. In addition, the strategic planning office in
USIA's Bureau of Broadcasting has studied the potential for applying
new technology to television news broadcasting. However, decisions
on shifting resources from radio to television broadcasting have not
been made and may await appointment of the new Broadcasting Board of
Governors.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 19:2.6.4
Voice of America: Station Modernization Projects Need to Be
Justified (GAO/NSIAD-94-69, Jan. 24, 1994).
Letter to the Director, U.S. Information Agency and the Chairman,
Board for International Broadcasting, Presenting GAO's Observations
on the Administration's International Broadcasting Proposal
(GAO/NSIAD-93-302R, Sept. 17, 1993).
Letter to the Chairman, Subcommittee on European Affairs, Senate
Committee of Foreign Relations, Responding to Questions on the
Executive Branch's Proposal to Consolidate U.S. International
Broadcasting Activities (GAO/NSIAD-93-286R, Sept. 17, 1993).
Letter to Senator Russell D. Feingold Responding to Questions on the
Consolidation of International Broadcasting (July 14, 1993).
Foreign Affairs Issues (GAO/OCG-93-26TR, Dec. 1992).
Voice of America: Management Actions Needed to Adjust to a Changing
Environment (GAO/NSIAD-92-150, July 24, 1992).
Need for Study of U.S. International Broadcasting Policy
(GAO/T-NSIAD-90-24, Mar. 22, 1990).
DOS07: RELOCATE THE MEXICO
CITY REGIONAL ADMINISTRATIVE
MANAGEMENT CENTER
------------------------------------------------------- Chapter 19:2.7
NPR recommends moving this administrative support office to the
United States to save money and recommends examining the need for
similar offices now in Paris and Bangkok.
ACTION ITEMS
----------------------------------------------------- Chapter 19:2.7.1
1. The State Department should move the Mexico City Regional
Administrative Management Center (RAMC) to the United States.
2. The State Department should begin planning for the timely
relocation of those Bangkok and Paris RAMC functions that can be
performed effectively at the new U.S. RAMC.
GAO COMMENTS
----------------------------------------------------- Chapter 19:2.7.2
Insufficient Information. We have not studied the advantages and
disadvantages of relocating the Regional Administrative Management
Centers to the United States. Embassies need accurate and timely
financial information and services. However, our work indicates that
some embassies are dissatisfied with the services provided by the
regional centers. We support efforts to improve the quality and
timeliness of administrative financial support services whether
through improvement of existing centers or their relocation to the
United States.
IMPLEMENTATION
----------------------------------------------------- Chapter 19:2.7.3
Partially Implemented. A new U.S. Regional Administrative
Management Center is scheduled to open in Charleston, South Carolina,
in 1995. State plans to transfer the processing of all overseas
American salaries to the new center. This processing is now done in
Washington, D.C., and at the Regional Administrative Management
Centers in Bangkok, Mexico City, and Paris. The transfer of other
functions from Mexico City will follow. We were told that no other
action will be taken regarding the transfer of functions from the
Bangkok and Paris Centers until the Charleston Center is operating
satisfactorily.
According to a State Department official, rather than transfer
existing computer programs from Mexico City, the Department hopes to
install its new Integrated Financial Management System at the
Charleston Center. However, in our August 1994 report on State's
financial management systems, we recommended that State delay
awarding a contract for the new system until it (1) articulates how
the system will solve long-standing internal control and financial
management systems weaknesses and (2) establishes detailed
requirements for individual system development projects to address
high-risk areas. As a result, State may have to delay the transfer
of Mexico City functions to Charleston or it may have to transfer its
existing computer programs from Mexico City to the Charleston Center.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 19:2.7.4
Financial Management: State's Systems Planning Needs to Focus on
Correcting Long-Standing Problems (GAO/AIMD-94-141, Aug. 12, 1994).
State Department: Survey of Administrative Issues Affecting
Embassies (GAO/NSIAD-93-218, July 12, 1993).
State Department: Management Weaknesses at the U.S. Embassy in
Mexico City, Mexico (GAO/NSIAD-93-88, Feb. 8, 1993).
Financial Management: Serious Deficiencies in State's Financial
Systems Require Sustained Attention (GAO/AFMD-93-9, Nov. 13, 1992).
DOS08: IMPROVE THE
COLLECTION OF RECEIVABLES
------------------------------------------------------- Chapter 19:2.8
The State Department should do a better job collecting debts, such as
medical expenses and others, owed to the Department.
ACTION ITEMS
----------------------------------------------------- Chapter 19:2.8.1
1. The State Department should ensure that overseas medical expenses
are accurately identified and reported by each embassy.
2. The State Department should ensure that all other debts to the
government are accurately identified and reported.
3. The State Department should actively collect all accounts
receivable.
GAO COMMENTS
----------------------------------------------------- Chapter 19:2.8.2
Agree. We strongly agree with this recommendation. Our work has
shown that State currently does not have adequate controls over
receivables. In August 1992, we reported that State does not have
reasonable assurances that it is recovering the medical insurance
benefits payable to insured employees and dependents for overseas
medical expenses paid by the government. As a result, the government
may be losing substantial amounts of recoverable expenses.
IMPLEMENTATION
----------------------------------------------------- Chapter 19:2.8.3
Partially Implemented. The Department of State has planned several
actions in response to recommendations in GAO reports and the NPR
report. Since October 1, 1993, the Office of Medical Services has
issued individual obligation numbers for each transaction so that it
can track medical expenditures and identify funds reimbursed to its
allotment. The Office is revising procedures in the Foreign Affairs
Manual to require employees to ensure that the government is
reimbursed for medical expenditures on their behalf.
In addition, the Bureau of Finance and Management Policy is
developing accounting and debt collection procedures for funds that
have been expended on employees' overseas medical expenses. The
Bureau will send notices reminding employees to file for
reimbursement from their insurance companies. At the same time, the
Bureau will open an account receivable in employees' names. If
employees do not file for reimbursement from their insurance company
and reimburse State within a specified amount of time, the Department
will withhold money from their paychecks. The Department is
circulating the draft procedures and the revision to the Foreign
Affairs Manual for internal review.
The repatriation loan program was established to assist destitute
Americans abroad. Due to the nature of these loans, recovery rates
are low: over $5 million in loans were outstanding in fiscal year
1993, $689,000 in new loans were made, and only $354,000 was
collected. While not optimistic about its ability to collect these
loans, State plans additional steps to improve the loan collection
and administration process. Actions include acceptance of credit
cards for payment and establishment of a toll-free number for
recipients to contact the Department concerning their accounts. The
Department plans to consider other measures, such as garnishment of
wages and incentive payment plans.
State's difficulties in collecting money owed have been due in large
part to deficiencies in its accounting systems. The Department plans
to correct these deficiencies through the development of an
integrated financial management system to be completed by 1999.
Notwithstanding the needed financial system improvement, State's
planned actions should increase the collections of accounts
receivable.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 19:2.8.4
Financial Management: State's Systems Planning Needs to Focus on
Correcting Long-Standing Problems (GAO/AIMD-94-141, Aug. 12, 1994).
State Department: Need to Ensure Recovery of Overseas Medical
Expenses (GAO/NSIAD-92-277, Aug. 7, 1992).
State Department's Management of Its Travel Advance Funds
(GAO/T-NSIAD-88-21, Apr. 27, 1988).
DOS09: CHANGE U.N.
ADMINISTRATIVE AND
ASSESSMENT PROCEDURES
------------------------------------------------------- Chapter 19:2.9
This recommendation outlines several changes in the United States'
fiscal relationship with the United Nations, including recommending
an oversight office for the organization and tax law changes to
reduce costs to the federal government.
ACTION ITEMS
----------------------------------------------------- Chapter 19:2.9.1
1. Seek U.N. member support for establishment of a consolidated
oversight and accountability mechanism such as an Office of Inspector
General.
2. The President should seek U.N. member support for a thorough
reexamination of U.N. assessment procedures and practices.
3. Legislation should be enacted to amend the Foreign Assistance Act
of 1961 to eliminate the reporting requirement on voluntary
contributions to international organizations.
4. Legislation should be enacted to eliminate the collection and
reimbursement of income taxes on international organization pay.
GAO COMMENTS
----------------------------------------------------- Chapter 19:2.9.2
Agree. We strongly endorse the creation of an independent U.N.
Inspector General or similar body to ensure adequate accountability
and oversight of U.N. operations and finances. In a 1992 report and
again in a 1993 letter to the President of the Federal Court of Audit
of Germany, we provided a conceptual framework for an entity to
provide accountability and oversight.
In another 1992 report we also recommended that the Secretary of
State instruct the U.S. representative to the U.N. to seek support
for reexamining the basis for, and equity of the special U.N.
assessment scale for peacekeeping operations. We have not studied
the NPR recommendations to change the tax law or eliminate the report
on voluntary contributions.
IMPLEMENTATION
----------------------------------------------------- Chapter 19:2.9.3
Partially Implemented. On July 29, 1994, the U.N. General Assembly
authorized a U.N. Office of Under Secretary General for Internal
Oversight Services and approved the appointment of the new Under
Secretary General. On September 7, 1994, the U.N. Secretary General
issued implementing procedures for the new Office. We found that the
implementing procedures provide regulations to ensure that the new
Office is operationally independent. The procedures address
compliance with Office recommendations and require managers to report
quarterly on the status of implementation. The procedures protect
individuals' rights and protect the confidentiality of sources. The
appointment of qualified staff and the commitment of U.N. management
will be required to ensure that the Office is instrumental in
achieving management improvements in the U.N.
Various options have been proposed by U.N. members and independent
groups to address equity issues and to simplify the methods for
calculating the U.N. regular budget and peacekeeping assessments.
State Department officials agree that more objective economic
criteria are needed to assess countries based on their ability to
contribute. The U.N. Committee on Contributions has considered
several alternatives to the regular budget assessment formula
proposed by member countries. Officials of the State Department and
the U.S. Mission to the United Nations told us that assessment
issues will be an agenda item at the 49th General Assembly in fall
1994. They added that the United States intends to be vigorous in
its efforts to promote changes.
The State Department has not acted on the NPR recommendations on
legislative changes to eliminate the reporting requirement on
voluntary contributions to international organizations or eliminate
income taxes on international organization pay. State officials told
us that the Internal Revenue Service does not support eliminating the
tax requirement.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 19:2.9.4
Letter to Senator Glenn, Commenting on the Creation of an Office of
Under Secretary General for Internal Oversight (B-258092, Sept. 23,
1994).
Letter to Senator Glenn, Commenting on the Creation of an Office of
Under Secretary General for Internal Oversight (B-258092, Aug. 8,
1994).
United Nations: How Assessed Contributions for Peacekeeping
Operations Are Calculated (GAO/NSIAD-94-206, Aug. 1, 1994).
Letter to the President of the Federal Court of Audit of Germany
(Nov. 2, 1993).
U.N. Peacekeeping: Observations on Mandates and Operational
Capability (GAO/T-NSIAD-93-15, June 9, 1993).
Letter to The Acting Secretary of State on U.N. Audit and Evaluation
(GAO/NSIAD-93-72R, Oct. 19, 1992).
United Nations: U.S. Participation in Peacekeeping Operations
(GAO/NSIAD-92-247, Sept. 9, 1992).
DEPARTMENT OF TRANSPORTATION (DOT)
=========================================================== Chapter 20
OVERALL SUMMARY
--------------------------------------------------------- Chapter 20:1
The Department of Transportation (DOT) is aggressively implementing
its 23 NPR recommendations. To date, DOT has fully implemented 1
recommendation, partially implemented 9, and taken some type of
action on the remaining 13. However, Congress took action to prevent
one recommendation from being implemented (DOT18). Because the
accompanying report identifying the steps needed to accomplish each
recommendation had not been published as of September 7, 1994, it was
not clear what actions were expected to implement some of the
recommendations. Furthermore, although DOT has begun to implement
all 23 recommendations, some are highly controversial and their
future disposition is uncertain. Such recommendations include
proposals to establish an Air Traffic Control Corporation (DOT04) and
reform the U.S. maritime industry (DOT16). In addition, the savings
obtained from rescissions of funding for highway demonstration
projects (DOT17), the Federal Transit Administration's New Starts and
Bus Program (DOT19), and two Federal Aviation Administration (FAA)
higher education programs (DOT21) represented only a fraction of the
funds available for rescission.
DOT has also formed seven reinvention teams that have developed about
350 additional recommendations. Some of the recommendations can be
accomplished by an operating administration within DOT, while others
need further study and involve the entire Department and in some
cases, Congress, states, and transportation groups.
Overall, NPR's recommendations are consistent with the thrust of
recommendations in our testimonies and reports. But as we noted in
our December 1992 transition series report entitled Transportation
Issues (GAO/OGC-93-14TR), the challenge lies in implementing these
recommendations. Furthermore, DOT faces several additional
challenges that NPR's recommendations did not address, such as
-- ensuring that the nation's air travelers receive the benefits of
deregulation from a highly competitive and financially healthy
airline industry;
-- addressing the future of passenger rail in the United States,
including Amtrak's financial viability and operating efficiency
as well as the benefits and costs of high-speed rail in selected
corridors;
-- strengthening FAA's and the Federal Railroad Administration's
inspection programs;
-- improving FAA's acquisition systems;
-- allocating FAA's limited funds under the Airport Improvement
Program to projects that best achieve the national goals of
reducing flight delays and increasing airport capacity while
preserving environmental quality; and
-- developing performance expectations and measures in conjunction
with the major goals of the National Highway System.
GAO CONTACT
------------------------------------------------------- Chapter 20:1.1
Kenneth M. Mead, Director, Transportation Issues, Resources,
Community, and Economic Development Division, (202) 512-2834.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 20:2
DOT01: MEASURE
TRANSPORTATION SAFETY
------------------------------------------------------- Chapter 20:2.1
NPR recommends the development of common, governmentwide measures of
transportation safety.
ACTION ITEMS
----------------------------------------------------- Chapter 20:2.1.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 20:2.1.2
Generally Agree. This recommendation has merit, but the development
of such measures will likely be difficult and take several years to
implement. Additionally, common governmentwide safety indicators
should supplement, but not replace, predictors of safety problems
that are specific to the individual modes of transportation. Over
the last several years, all modes have been working on developing
mode-specific safety performance measures and predictors of safety
problems. It is important that these efforts be brought to fruition.
As we recommended in our management review of DOT and in numerous
reports and testimonies, the individual modes should establish
precursors of safety risk--that is, conditions or circumstances that,
if left uncorrected, lead to accidents. The ultimate goal of DOT's
safety programs is to prevent accidents and their consequences:
death, injury, and property damage. We previously reported that in
most instances, accident rates, especially in the rail and aviation
areas, do not provide the most reliable basis on which to target
inspection resources. There are two major reasons: (1) once the
accident has occurred, it is too late to prevent it and (2) accidents
occur too infrequently to be good indicators of all safety problems.
Efforts by the individual modes to develop precursors of safety risk
would better position the Department to delineate common measures of
safety because doing so requires that the elements of a
transportation system common to all modes be identified. For
example, every accident has associated dollar costs, and the use of
any mode can be expressed in terms of output (e.g., cost per
passenger mile or per ton mile) or per unit of exposure (e.g., cost
per hour or per trip). Greater standardization makes it easier to
compare the benefits of added expenditures on safety across modes.
In February 1994, we testified that current measures for assessing
safety risk have limited use for cross-modal comparisons and that the
Bureau of Transportation Statistics had made limited progress in
developing performance indicators. We also noted that it is unlikely
any one safety measure can be applied across all modes because the
data needed--extent of injuries and property damage--are often not
reported, are incomplete, or are unreliable. We suggested that the
Bureau of Transportation Statistics could help ensure that safety
becomes an integral component of DOT's overall performance indicators
by remedying data limitations; determining the potential impacts of
collecting these data on the modes, on state and local governments,
and on the industries these governments regulate; and assessing the
benefits of implementing one or a series of safety measures relative
to their impacts.
IMPLEMENTATION
----------------------------------------------------- Chapter 20:2.1.3
Not Implemented--Action Taken. DOT has not developed governmentwide
measures of transportation safety. However, in December 1993, DOT
established a working group, consisting of representatives of the
Department's various operating administrations, to develop safety
measures. In May 1994, in response to a recommendation by this
group, DOT established a common definition of transportation-related
fatalities, which is one of several safety measures being assessed,
to be used by the operating administrations within DOT for
statistical reporting purposes. Other safety measures being
considered include the severity of injuries and the dollar value of
property damage. DOT expanded the working group to include
representatives of other federal departments and agencies to
determine the data needed for developing common transportation safety
measures.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 20:2.1.4
Transportation Safety: Opportunities for Enhancing Safety Across
Modes (GAO/T-RCED-94-120, Feb. 10, 1994).
Aviation Safety: Progress on FAA Safety Indicator Program Slow and
Challenges Remain (GAO/IMTEC-92-57, Aug. 31, 1992).
Department of Transportation: Enhancing Policy and Program
Effectiveness Through Improved Management (GAO/RCED-87-3, Apr. 13,
1987).
DOT02: STREAMLINE THE
ENFORCEMENT PROCESS
------------------------------------------------------- Chapter 20:2.2
NPR recommends pilot programs in the U.S. Coast Guard, the Federal
Aviation Administration, and the Federal Highway Administration
(FHWA), designed to offer greater flexibility in enforcement methods.
ACTION ITEMS
----------------------------------------------------- Chapter 20:2.2.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 20:2.2.2
Insufficient Information. Because DOT has not started all of the
pilot programs included under this recommendation, we do not have
complete information on the type of flexibility envisioned. However,
before more flexibility is permanently added, DOT must ensure that
the integrity of the underlying program for each mode is strong. We
have found that several modes could greatly improve their inspection
and enforcement programs. For example, we reported in 1991 that the
Federal Railroad Administration (FRA) could enhance its enforcement
program by seeking options to more expeditiously settle civil penalty
cases. At that time, FHWA was testing a system under which regional
directors could send civil penalty letters directly to motor
carriers. We suggested that FRA could similarly have its regional
offices formally notify railroads of violations and penalty
assessments. In 1994, we reported that FAA had not effectively
managed its enforcement work load; as a result, foreign governments
and FAA had not acted on all referred safety violations.
Furthermore, neither FAA nor the State Department had established
controls for tracking referrals. We recommended that FAA determine
the final disposition of enforcement cases referred to foreign
governments; that FAA inform foreign governments of the disposition
of enforcement cases that they refer to FAA; and that the Secretaries
of Transportation and State work together to reach agreement on the
best way to facilitate FAA's efforts to address regulatory violations
by foreign carriers.
IMPLEMENTATION
----------------------------------------------------- Chapter 20:2.2.3
Partially Implemented. The Coast Guard and FHWA have implemented
6-month pilot enforcement programs. In April 1994, the Coast Guard
published an Interim Final Rule establishing a pilot ticket program
for violations of the Federal Water Pollution Control Act and federal
pollution prevention regulations. That same month, the Coast Guard
began the program at three port locations--Charleston, South
Carolina; Galveston, Texas; and Los Angeles/Long Beach, California.
In early 1994, FHWA began a pilot effort within one of its regions to
reduce the time required for its investigators to prepare an
enforcement report against carriers/shippers that violate motor
carrier and/or hazardous materials regulations.
FAA is in the process of implementing its pilot program. In August
1994, it issued a Special Federal Aviation Regulation establishing a
pilot program that streamlines the enforcement process for alleged
security violations involving a proposed penalty of less than $5,000.
FAA expects to begin testing this enforcement program at three
airports after internal guidance implementing the program is
approved.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 20:2.2.4
Aviation Safety: FAA and the State Department Can Better Manage
Foreign Enforcement Cases (GAO/RCED-94-87, Mar. 17, 1994).
Aviation Safety: Progress Limited With Self-Audit and Safety
Violation Reporting Programs (GAO/RCED-92-85, Mar. 31, 1992).
Railroad Safety: Weaknesses Exist in FRA's Enforcement Program
(GAO/RCED-91-72, Mar. 22, 1991).
Financial Management: Internal Control Weaknesses in FRA's Civil
Penalty Program (GAO/RCED-91-47, Dec. 26, 1990).
DOT03: USE A
CONSENSUS-BUILDING APPROACH
TO EXPEDITE TRANSPORTATION
AND ENVIRONMENTAL
DECISIONMAKING
------------------------------------------------------- Chapter 20:2.3
DOT should conduct two demonstration projects to apply a
problem-solving approach to transportation planning, development, and
decisionmaking as a means of reducing costs and improving the
efficiency of agency decisionmaking.
ACTION ITEMS
----------------------------------------------------- Chapter 20:2.3.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 20:2.3.2
Agree. Consistent with our previous recommendations, we support
applying a cross-modal problem-solving approach to transportation
planning, development, and decisionmaking at the federal and state
level. We understand that DOT has already initiated several efforts
that use a consensus-building approach to expedite transportation and
environmental decisionmaking at the federal level. We support these
actions and suggest that DOT not restrict pilot programs for such
activities to these efforts alone. Furthermore, we have recommended
that the Secretary of Transportation assist states and localities by
developing a framework for comparing highway and mass transit
projects that considers mobility, environmental quality, safety,
cost-effectiveness, and social and economic objectives. Such a
framework would aid efficient and effective transportation investment
decisions at the state and local level.
IMPLEMENTATION
----------------------------------------------------- Chapter 20:2.3.3
Partially Implemented. DOT selected two intermodal projects to
demonstrate the applicability of a consensus-building approach in
transportation decisionmaking. Completion of this initiative is
expected by the end of calendar year 1996.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 20:2.3.4
Highway Planning: Agencies Are Attempting to Expedite Environmental
Reviews, but Barriers Remain (GAO/RCED-94-211, Aug. 2, 1994).
Transportation Infrastructure: Urban Transportation Planning Can
Better Address Modal Trade-offs (GAO/RCED-92-112, Apr. 2, 1992).
DOT04: ESTABLISH A
CORPORATION TO PROVIDE AIR
TRAFFIC CONTROL SERVICES
------------------------------------------------------- Chapter 20:2.4
NPR recommends development of a detailed action plan and statutory
language for changes in air traffic control management to make it
more businesslike.
ACTION ITEMS
----------------------------------------------------- Chapter 20:2.4.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 20:2.4.2
Insufficient Information. On May 3, 1994, the administration
proposed to establish a government-owned corporation to operate,
maintain, and modernize the nation's air traffic control (ATC)
system. This proposal links problems in FAA's modernization program,
such as schedule delays and cost increases, to FAA's structure as a
federal agency subject to procurement, personnel, and budget rules
and regulations. Hence, the proposed corporation would be exempt
from many of these regulations and the appropriations process. The
administration has not presented implementing legislation.
Therefore, the proposal and accompanying financial information, which
serve as a framework for the debate, leave many questions unanswered,
especially in the areas of financing and safety oversight.
At a May 12, 1994, hearing on the administration's proposal, we
testified that our work over the past decade does not show that
exemption from procurement regulations would necessarily accelerate
the installation of equipment in the field. We found that delays in
modernization were caused by other factors, such as underestimating
the technical complexity of developing advanced systems. We also
noted that the creation of a corporation would change the financing
and safety oversight of the ATC system in fundamental ways. In the
absence of implementing legislation detailing the proposal, we have
questions about the actions proposed to accelerate investments, the
assumptions made about revenues and expenditures, and the extent of
the government's potential liability for the corporation's losses and
debt. We also noted that building an effective safety oversight
function is an extremely formidable task, as evidenced by the
difficulty that FAA has had in overseeing the airline industry. We
suggested that an effective oversight function should be in place
before a corporation is established.
IMPLEMENTATION
----------------------------------------------------- Chapter 20:2.4.3
Not Implemented--Action Taken. On May 3, 1994, the Vice President,
the Secretary of Transportation, and the FAA Administrator unveiled a
report entitled Air Traffic Control: Corporation Study, which
recommended the creation of a wholly owned government
corporation--U.S. Air Traffic Services Corporation. The proposed
corporation would be a self-sufficient entity managed by a board of
directors and would be exempt from many procurement and personnel
rules. FAA would oversee the safety of its operations.
On May 12, 1994, the Senate Committee on Appropriations, Subcommittee
on Transportation and Related Agencies, held a hearing on the
proposed corporation. The Secretary of Transportation, former DOT
Secretaries, organized labor, general aviation, and GAO testified.
Support for the proposal was mixed. After the hearing, the
administration began drafting legislation and continued discussing
the proposal with Congress, user groups, and the public.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 20:2.4.4
Air Traffic Control: Observations on Proposed Corporation
(GAO/T-RCED-94-210, May 12, 1994).
Advanced Automation System: Implications of Problems and Recent
Changes (GAO/T-RCED-94-188, Apr. 13, 1994).
Air Traffic Control: Improvements Needed in FAA's Management of
Acquisitions (GAO/T-RCED-93-36, May 5, 1993).
Air Traffic Control: Advanced Automation System Problems Need to Be
Addressed (GAO/T-RCED-93-15, Mar. 10, 1993).
Air Traffic Control: Justifications for Capital Investments Need
Strengthening (GAO/RCED-93-55, Jan. 14, 1993).
DOT05: PERMIT STATES TO USE
FEDERAL AID AS A CAPITAL
RESERVE
------------------------------------------------------- Chapter 20:2.5
This recommendation would allow federal transportation grant
recipients to use grant funds capital reserve to back debt financing
to construct eligible transportation projects.
ACTION ITEMS
----------------------------------------------------- Chapter 20:2.5.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 20:2.5.2
Generally Agree. Section 1012 of the Intermodal Surface
Transportation Efficiency Act already provides for the use of federal
funds as a capital reserve to back debt financing for one category of
transportation projects: toll roads. The experience gained in
financing toll roads should be considered in determining the broader
applicability of this recommendation.
IMPLEMENTATION
----------------------------------------------------- Chapter 20:2.5.3
Not Implemented--Action Taken. DOT has started an innovative
financing initiative to promote needed investments in infrastructure
within its various modal administrations. In particular, FHWA
published a notice in the Federal Register on April 8, 1994, to
ensure wide dissemination of information about the FHWA innovative
financing test and evaluation project. Twenty-three states responded
to the Federal Register inquiry, and FHWA recently finished
evaluating their responses and project proposals. A number of the
proposals include capitalization concepts in various forms. Although
DOT may not have general authority to permit states to capitalize
(leverage) the flow of funds for transportation projects or programs,
it has more limited legislative authority that allows the Secretary
of Transportation to engage in research projects on highway
financing. DOT plans to use this authority to select several highway
projects as pilots for testing capitalization and other financing
proposals. In addition, DOT may decide to seek broader legislative
authority to advance innovative financing tools for transportation
projects beyond the pilot stage.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 20:2.5.4
None.
DOT06: ENCOURAGE
INNOVATIONS IN AUTOMOTIVE
SAFETY
------------------------------------------------------- Chapter 20:2.6
NPR recommends allowing the National Highway Traffic Safety
Administration to grant more exemptions from highway safety standards
to develop new safety systems.
ACTION ITEMS
----------------------------------------------------- Chapter 20:2.6.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 20:2.6.2
Insufficient Information. We have no basis for agreeing or
disagreeing with this recommendation without more specific data on
what safety standards would be exempted and what new safety systems
would replace the exempted standards. We think that as a part of
implementing this recommendation, an effective process for evaluating
the expected benefits of the new safety systems needs to be in place
before existing safety standards are waived. We would, of course,
support alternative safety systems to the extent that they provide
the same or greater safety and are as effective and efficient as the
current ones.
IMPLEMENTATION
----------------------------------------------------- Chapter 20:2.6.3
Not Implemented--Action Taken. On August 23, 1994, DOT published a
notice in the Federal Register requesting comments from vehicle
manufacturers and other interested parties on nine issues, including
the minimum number of vehicles required to provide statistically
significant data for safety evaluations, the concerns about liability
and other issues that discourage manufacturers from seeking
exemptions, and the validity of the assumptions underlying the NPR's
analysis and conclusions. The closing date for comments was October
24, 1994. DOT plans to request legislative changes by January 1995
if comments indicate that such changes are desirable.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 20:2.6.4
None.
DOT07: EXAMINE USER FEES
FOR INTERNATIONAL
OVERFLIGHTS
------------------------------------------------------- Chapter 20:2.7
DOT should conduct a cost allocation study to determine whether
foreign air carriers passing over U.S. airspace are paying their
fair share and whether direct user fees should be imposed.
ACTION ITEMS
----------------------------------------------------- Chapter 20:2.7.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 20:2.7.2
Generally Agree. We agree that commercial users of the nation's
airspace should, to the maximum extent practical, pay their fair
share of the burden that they impose on the system, as U.S.
commercial aviation already does. At present, foreign airlines do
not pay any fee when passing through our nation's airspace. The
situation is much different overseas. For example, U.S. carriers
flying through European airspace pay user fees that many airlines,
both American and European, believe are excessive. If the current
funding system (i.e., the trust fund) continues, DOT should conduct a
cost allocation study to determine the feasibility of imposing direct
user fees on foreign carriers for international overflights.
IMPLEMENTATION
----------------------------------------------------- Chapter 20:2.7.3
Not Implemented--Action Taken. The cost allocation study has not
been done, but a contractor employed by DOT has completed a report
that provides information on foreign air carriers flying over U.S.
airspace and suggests a framework for charging user fees for
international overflights. This report contains data on the
incidence of foreign carriers' overflights, proposes a methodology
for identifying and measuring the costs of providing air traffic
control services for international overflights, and presents a list
of alternative charges for air traffic control services for
international flights. After reviewing the report's information and
recommendations for a user fee framework, DOT and FAA will decide how
to proceed regarding a cost allocation study.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 20:2.7.4
None.
DOT08: INCREASE FAA FEES
FOR INSPECTION OF FOREIGN
REPAIR FACILITIES
------------------------------------------------------- Chapter 20:2.8
To ensure full cost recovery, increase the fees charged for
certification and surveillance of foreign aircraft repair stations.
ACTION ITEMS
----------------------------------------------------- Chapter 20:2.8.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 20:2.8.2
Generally Agree. We agree with the concept of full cost recovery of
FAA's expenses for foreign repair stations. FAA already charges a
fee to certify foreign repair stations. Consideration should also be
given to the fact that some countries may not have the financial
means to pay for continued FAA surveillance of the repair stations.
IMPLEMENTATION
----------------------------------------------------- Chapter 20:2.8.3
Not Implemented--Action Taken. On June 30, 1994, FAA published a
notice of proposed rulemaking in the Federal Register. Under the
proposed rule, FAA would increase its charges for certifying and
inspecting foreign repair stations to recover the full costs it
incurs in providing these services. FAA has considered the comments
it received on the notice and expects to issue a final rule by the
end of calendar year 1994. In addition, the FAA Authorization Act of
1994 (P.L. 103-305, section 209) requires FAA to establish and
collect fees to recover its full costs of certifying and inspecting
foreign repair stations.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 20:2.8.4
Aviation Safety: Unresolved Issues Involving U.S.-Registered
Aircraft (GAO/RCED-93-135, June 18, 1993).
Aviation Safety: Increased Oversight of Foreign Carriers Needed
(GAO/RCED-93-42, Nov. 20, 1992).
Aviation Certification: Limited Progress on Developing International
Design Standards (GAO/RCED-92-179, Aug. 20, 1992).
Aircraft Maintenance: Additional FAA Oversight Needed of Aging
Aircraft Repairs (Vols. I and II) (GAO/RCED-91-91A and B, May 24,
1991).
DOT09: CONTRACT FOR LEVEL I
AIR TRAFFIC CONTROL TOWERS
------------------------------------------------------- Chapter 20:2.9
NPR recommends converting 99 Level I (low-use) air control towers to
contract operation and reviewing the remaining Level I towers for
possible decommissioning.
ACTION ITEMS
----------------------------------------------------- Chapter 20:2.9.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 20:2.9.2
Agree. In 1993, the House and Senate Appropriations Committees'
reports specify funding for FAA to (1) close towers that do not meet
its benefit/cost criteria, (2) contract out the operations of 25
Level I towers by the end of fiscal year 1994, and (3) relocate
controllers to other facilities. FAA estimated that it could save as
much as $120 million (in constant 1994 dollars) if it contracted out
the operation of the remaining Level I towers by fiscal year 1997.
However, FAA will not realize immediate savings primarily because it
will incur short-term costs to relocate controllers to other
facilities.
IMPLEMENTATION
----------------------------------------------------- Chapter 20:2.9.3
Partially Implemented. On March 8, 1994, FAA announced its plan for
contracting out the operation of 99 Level I towers; about 90
companies or individuals expressed an interest. FAA made its request
for technical proposal available to them on May 2, 1994. FAA formed
a committee to review the responses and identify the respondents that
it would invite to bid on the contracts. FAA awarded multiyear
contracts for 24 Level I towers and has an agreement with the
National Guard to operate 1 other tower. FAA hopes to award
contracts on the remaining 74 towers by fiscal year 1997.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 20:2.9.4
Air Traffic Control: Status of FAA's Plans to Close and Contract Out
Low-Activity Towers (GAO/RCED-94-265, Sept. 12, 1994).
FAA Budget: Important Challenges Affecting Aviation Safety,
Capacity, and Efficiency (GAO/T-RCED-93-33, Apr. 26, 1993).
DOT10: ESTABLISH A
PUBLIC-PRIVATE CONSORTIUM TO
DEVELOP AN AERONAUTICAL
TELECOMMUNICATIONS NETWORK
------------------------------------------------------ Chapter 20:2.10
FAA should pursue the creation of a public-private consortium under a
cooperative agreement with industry to develop an Aeronautical
Telecommunications Network (ATN).
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.10.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.10.2
Generally Agree. We generally agree with the notion of creating a
public-private consortium to develop the Aeronautical
Telecommunications Network. A public-private partnership has the
potential to accelerate the development of the data communication
system and, thus, shorten the procurement cycle.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.10.3
Partially Implemented. During initial discussions of the consortium,
questions arose as to whether FAA had the legal authority to enter
into a cooperative agreement with the airlines, which planned to form
a for-profit corporation. FAA received authority through Public Law
103-305, section 307, to enter into cooperative agreements, on a
cost-shared basis, with nonfederal entities to conduct and promote
aviation research and development. FAA and the airlines are
reviewing a consortium agreement. In anticipation of formalizing the
agreement, FAA has held workshops for vendors and briefed trade
associations and others on the consortium. The airlines have taken
steps to incorporate as ATN Systems, Inc., which would then enter
into a cooperative agreement with FAA to develop the Aeronautical
Telecommunications Network.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.10.4
None.
DOT11: IMPROVE INTERMODAL
TRANSPORTATION POLICY
COORDINATION AND MANAGEMENT
------------------------------------------------------ Chapter 20:2.11
DOT should institute a strategic planning process to promulgate
national, integrated transportation policies.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.11.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.11.2
Agree. As we have previously noted in our reports and testimonies,
we support establishing a strategic planning process as a first step
towards ensuring a total systems approach to selecting among
transportation alternatives. For example, we have recommended that
DOT develop common measures to compare different transportation
alternatives. Such measures would help states and localities
identify the mix of projects--regardless of mode--needed to address
their transportation priorities and problems. Furthermore, models of
the demand for travel could be improved to better analyze, among
other things, the impacts of transportation projects on air quality.
However, a planning process alone may not be sufficient. DOT may
need to consider organizational changes that coordinate the planning
and financing arms of the separate modal administrations. One such
change, suggested by the National Academy of Public Administration
several years ago, would create a Surface Transportation
Administration to encompass the missions currently performed by
separate rail, highway, and transit agencies.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.11.3
Partially Implemented. DOT published its Strategic Plan in January
1994. The plan identifies 7 goals and 43 action items. DOT issued
instructions in August 1994 for its offices and operating
administrations to develop performance plans for addressing the
plan's goals and action items. These instructions also directed the
offices and operating administrations to identify performance
measures that support the plan's action items.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.11.4
Transportation Infrastructure: Implementation of Funding Under ISTEA
and Use of Transportation Control Measures (GAO/T-RCED-94-50, Oct.
14, 1993).
Transportation Infrastructure: Better Tools Needed for Funding
Decisions on Using ISTEA Funds Flexibly (GAO/RCED-94-25, Oct. 13,
1993).
Surface Transportation: Funding Limitations and Barriers to
Cross-Modal Decisionmaking (GAO/T-RCED-93-25, Mar. 31, 1993).
DOT12: DEVELOP AN
INTEGRATED NATIONAL
TRANSPORTATION RESEARCH AND
DEVELOPMENT PLAN
------------------------------------------------------ Chapter 20:2.12
DOT should examine the nation's transportation-related research and
development portfolio and develop an integrated national
transportation plan that considers specific transportation research
needs as well as intermodal transportation plans.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.12.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.12.2
Agree. We support such an effort. On the basis of our
recommendations on the intelligent vehicle highway systems, Congress
enacted into law a requirement that DOT develop a program of
operational field tests in accordance with a strategic research plan.
DOT needs to develop such a plan because it would be a necessary step
towards enabling this family of technologies to fulfill its promise.
Regarding FAA's Research, Engineering, and Development Program, we
have reported that FAA's success in meeting current and future
challenges will depend on several factors. These factors include
integrating research goals into other program areas, leveraging
research conducted by other federal agencies, and integrating various
technologies to meet specific safety and capacity problems.
In addition, in 1994 we reported that DOT did not have complete or
accurate information on all research grant awards made to
universities, colleges, and other institutions of higher education
and did not have an integrated plan to manage its diverse university
research activities. We recommended that DOT complete the
development of a database to track the purpose and costs of each
university research award and reinstitute a process to ensure that
the operating administrations have adequate policies and procedures
for monitoring grants and indirect costs.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.12.3
Not Implemented--Action Taken. In January 1994, DOT issued an
internal order establishing the Department's Research and Technology
Steering Committee to act as a board of directors and develop and
maintain a strategic plan for DOT's research and technology program.
In April 1994, DOT issued another internal order establishing a
Research and Technology Coordinating Council to direct the agency's
research and technology program within the guidance established by
the steering committee. DOT does not expect to complete an
integrated research and technology plan until 1995.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.12.4
Department of Transportation: University Research Activities Need
Greater Oversight (GAO/RCED-94-175, May 13, 1994).
Aviation Research: Actions to Enhance the Effectiveness of FAA's
Research Activities (GAO/T-RCED-93-40, May 20, 1993).
DOT13: CREATE AND EVALUATE
TELECOMMUTING PROGRAMS
------------------------------------------------------ Chapter 20:2.13
DOT should implement a telecommuting plan within the agency and
should evaluate transportation-related behavior and other topics
requiring research in this area.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.13.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.13.2
Agree. This proposal has merit and should be explored. We have
recommended additional evaluation of telecommuting and
transportation-related behavior. Any research efforts undertaken in
this area should be explicitly linked to DOT's research and
development plan and budget.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.13.3
Partially Implemented. DOT has acted on this recommendation by
issuing a policy endorsing telecommuting and directing each operating
administration within DOT to establish and evaluate a telecommuting
program. The operating administrations are developing their
telecommuting policies and programs, and some of their employees are
already telecommuting from home or from General Services
Administration (GSA) telecommuting centers. DOT has begun to develop
procedures with GSA for evaluating each telecommuting program
undertaken.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.13.4
Transportation Issues (GAO/OCG-93-14TR, Dec. 1992).
Urban Transportation: Reducing Vehicle Emissions With Transportation
Control Measures (GAO/RCED-93-169, Aug. 3, 1993).
DOT14: IMPROVE DOT
INFORMATION TECHNOLOGY
MANAGEMENT
------------------------------------------------------ Chapter 20:2.14
The Department should develop an information management strategy
which will enable the sharing of data among its component agencies
and reduce costs.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.14.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.14.2
Agree. We agree with this recommendation and have previously
recommended that the Secretary of Transportation report the lack of a
complete departmental strategic information resources management
(IRM) plan as a material weakness under the Federal Managers'
Financial Integrity Act. Additionally, we have made recommendations
to improve IRM management at the Coast Guard and FAA.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.14.3
Not Implemented--Action Taken. In January 1994, DOT published its
Strategic Plan. Goal 7.2 of the plan is to "promote increased use of
technologies that will create a more effective and productive
internal organization." DOT plans to respond to this goal by
developing a new infrastructure for the Department's technologies
(hardware and telecommunications architecture, data standards,
standard departmental applications, consolidation of voice and data
networks, and fee-for-service financing). DOT has established the
IRM Advisory Council as the steering group to oversee this NPR
recommendation. DOT has also established seven intermodal task
groups, whose assignments are to present scoping papers for use in
developing an implementation plan that includes milestones and
capital investment funding requirements. The recommendation for an
implementation plan is scheduled for approval in early calendar year
1995.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.14.4
Aviation Safety: Progress on FAA Safety Indicators Program Slow and
Challenges Remain (GAO/IMTEC-92-57, Aug. 31, 1992).
Transportation Safety: Information Strategy Needed for Hazardous
Materials (GAO/IMTEC-91-50, Sept. 25, 1991).
FAA Information Resources: Agency Needs to Correct Widespread
Deficiencies (GAO/IMTEC-91-43, June 18, 1991).
Coast Guard: Strategic Focus Needed to Improve Information Resources
Management (GAO/IMTEC-90-32, Apr. 24, 1990).
DOT15: PROVIDE REEMPLOYMENT
RIGHTS FOR MERCHANT MARINERS
------------------------------------------------------ Chapter 20:2.15
Guarantee reemployment rights to U.S. seafarers at their private
sector jobs if called to serve during a war or national emergency.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.15.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.15.2
Agree. We support this recommendation. Bills have been introduced
to secure reemployment rights for merchant seamen equivalent to those
provided for other members of any reserve component of the Armed
Forces. The measure seems to be fair and equitable.
Support for this recommendation appears to be widespread in the
maritime community. In April 1994, we hosted a maritime workshop
that focused on staffing the Ready Reserve Force--vessels in the
National Defense Reserve Fleet that are maintained in a high state of
readiness in case of war or other urgent national need, such as the
humanitarian mission in Somalia. The participants included
government agencies, commercial ship managers, and organized maritime
labor. The attendees agreed that the current state of the U.S.
merchant marine industry demands passage of reemployment rights for
mariners who volunteer for the Ready Reserve Force duty during a
crisis.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.15.3
Not Implemented--Action Taken. The 103rd Congress considered
proposed legislation that would implement this NPR recommendation.
The House passed three bills (H.R. 1109, H.R. 3400, and H.R. 4003)
that would grant reemployment rights to mariners that are
substantially equivalent to those held by members of reserve units in
the Armed Forces that are ordered to active duty. No action on this
proposed legislation was taken in the Senate.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.15.4
Strategic Sealift: Summary of Workshop on Crewing the Ready Reserve
Force (GAO/NSIAD-94-177, June 6, 1994).
DOT16: ESTABLISH AN
INDEPENDENT COMMISSION TO
REVIEW THE U.S. MARITIME
INDUSTRY
------------------------------------------------------ Chapter 20:2.16
NPR recommends a detailed examination of the future of the maritime
industry in the United States and the benefits derived by the
taxpayers from maritime industry subsidies and related issues.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.16.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.16.2
Generally Agree. At the heart of this issue are fundamental
questions about the role the maritime industry is expected to play
during both times of peace and times of conflict. Maritime reform
has been proposed repeatedly over the years by both the executive and
legislative branches without resolution. For example, during the
closing months of the Bush administration, the Secretary of
Transportation proposed major maritime reforms that were not adopted.
If an independent commission, as suggested by NPR, would facilitate
resolution of the issues surrounding the current vague and uncertain
U.S. maritime policy, it would be welcome.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.16.3
Other. An independent commission to review the maritime industry has
not been established, and no actions toward this end appear to have
been taken. However, the need for such a commission could have
diminished if an administration-proposed maritime reform bill had
passed. According to a Maritime Administration official responsible
for tracking this recommendation, the driving force behind the
recommendation was a need to develop new legislation to revitalize
the maritime industry and halt the decline of the U.S. merchant
fleet. If such legislation had passed, a commission would no longer
be needed, this official believed.
In March 1994, the administration presented its maritime reform
proposal (contained in H.R. 4003 and S. 1945) to Congress, where it
remains under review. The proposal contained many provisions to help
ensure that the United States will continue to have a fleet of
merchant ships owned, controlled, and staffed by American citizens.
For example, assistance would be provided for eligible ships to help
owners compete in the global marketplace and be available to meet
national security needs. The total cost of the new assistance plan,
however, would be less than under the current policy, according to
the Maritime Administration official. In August 1994, the House
passed a version of H.R. 4003 containing maritime reform provisions.
The Senate failed to pass any comparable legislation.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.16.4
None.
DOT17: ELIMINATE FUNDING
FOR HIGHWAY DEMONSTRATION
PROJECTS
------------------------------------------------------ Chapter 20:2.17
Rescind funding for existing highway demonstration projects. These
demonstration projects should compete at the state level for the
limited highway resources available and not be singled out for
special treatment at the federal level.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.17.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.17.2
Generally Agree. As stated in our report and testimony
(GAO/RCED-91-146 and GAO/T-RCED-93-29), highway demonstration
projects frequently face impediments, such as citizen opposition or
failure to satisfy key state transportation priorities, that can
cause projects to languish in the early development stages or never
get started at all. We support rescinding unobligated balances for
those projects that are clearly inactive as well as for those
projects that are complete but still carry an unobligated balance.
Criteria for defining inactive projects should provide a basis for
the rescissions. One option would be to require that funds be
obligated within 4 years of their allocation. This approach is in
keeping with the rules that govern most other federal-aid highway
program categories. At the 4-year point, the funds could be
rescinded, redistributed to other projects within the affected state,
or distributed under other arrangements Congress directs.
While we agree that most highway projects should compete at the state
level for limited resources, it should be noted that in limited
instances, targeting federal funds for a special project may be
appropriate. Projects that demonstrate new technology that is widely
applicable could be one such instance. To help ensure that such
demonstration projects are sound investments, both the House
appropriating and authorizing committees have recently developed
screening mechanisms for considering the merits of individual
projects.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.17.3
Partially Implemented. The Emergency Supplemental Appropriations Act
of 1994 (P.L. 103-211, Feb. 12, 1994) rescinded approximately $32
million from various highway demonstration projects. However, this
sum is only a small part of the billions of dollars in funding for
existing highway demonstration projects. The administration's fiscal
year 1995 budget request for FHWA assumed that almost all highway
demonstration project funding would be rescinded. However, the
administration did not send forward documents needed to propose such
rescissions. No further action is anticipated in the 103rd Congress
on rescinding funding for existing highway demonstration projects.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.17.4
Surface Transportation: Tight Budget Environment Requires Sound
Investment Strategy (GAO/T-RCED-94-146, Mar. 8, 1994).
Surface Transportation: Budget Issues and Optimizing Investment
Returns (GAO/T-RCED-93-29, Apr. 22, 1993).
Highway Demonstration Projects: Improved Selection and Funding
Controls Are Needed (GAO/RCED-91-146, May 28, 1991).
DOT18: REDUCE SPENDING FOR
THE U.S. MERCHANT MARINE
ACADEMY
------------------------------------------------------ Chapter 20:2.18
As an economy measure, federal funding for the U.S. Merchant Marine
Academy should be cut by half. The Academy should be given the
ability to charge tuition to cover a portion of its operations.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.18.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.18.2
Insufficient Information. While implementing this recommendation
might lead to budget savings, we do not have sufficient information
to evaluate the impact that requiring students to pay part of their
tuition would have on enrollment. The administration has proposed
legislation to revitalize the maritime industry. Since the need for
the Academy could depend on the outcome of that proposal and of its
impact on the industry, evaluation of the appropriate level of
federal funding for the Academy may be premature at this time.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.18.3
Not Implemented--Action Taken. Although some early actions were
taken to implement this recommendation, Congress recently passed
legislation to prevent its implementation. As originally introduced
in October 1993, section 11001 of the Government Reform and Savings
Act of 1993 (H.R. 3400) would have implemented the NPR
recommendation. The Secretary of Transportation would have been
required to establish a system of tuition and fees for individuals
attending the Academy that, in total, would equal up to one-half of
its operating cost. However, the House Committee on Merchant Marine
and Fisheries eliminated the tuition provisions from the act. The
Committee reported that charging tuition would be a major policy
change and said that it planned to hold hearings before recommending
changes. Strong congressional opposition developed, and several
bills were introduced in the House and Senate that included
provisions to prohibit charging tuition. A conference committee's
version of S. 2182, which authorized appropriations for military
activities for fiscal year 1995, contained provisions that prohibited
charging for tuition at the U.S. Merchant Marine Academy as well as
at certain military academies. This version of the bill was enacted
on October 5, 1994 (P.L. 103-337).
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.18.4
None.
DOT19: RESCIND UNOBLIGATED
EARMARKS FOR THE FTA NEW
STARTS AND BUS PROGRAM
------------------------------------------------------ Chapter 20:2.19
Rescind unobligated balances for fiscal year 1992 and prior earmarked
funding under this Federal Transit Administration (FTA) program that
remain unobligated after 3 years.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.19.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.19.2
Generally Agree. We agree with the recommendation to rescind
unobligated balances but only for inactive or completed projects
funded by FTA. We urge caution in blanket rescissions because there
may be acceptable reasons for a project's inability to obligate funds
over time. Criteria to define inactive projects need to be
developed.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.19.3
Partially Implemented. Unobligated funds typically occur when
earmarks are made prematurely. To address this problem, the fiscal
year 1993 Department of Transportation appropriations act provided
that funds not obligated by September 30, 1995, be made available for
other transit projects. A similar legislative provision has been
continued in subsequent appropriations acts. For earlier years,
however, some of the funds earmarked for transit projects remained
unobligated. FTA determined that, as of September 30, 1993, about
$50.5 million in transit funds remained unobligated and proposed them
for rescission. However, the actual rescission was reduced to only a
portion of this, $808,935, by the Emergency Supplemental
Appropriations Act of 1994 (P.L. 103-211, Chapter 10). FTA expects
the balance of approximately $49.7 million in transit funds to be
obligated in fiscal year 1994.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.19.4
High-Risk Series: Federal Transit Administration Grant Management
(GAO/HR-93-16, Dec. 1992).
DOT20: REDUCE THE ANNUAL
ESSENTIAL AIR SERVICE
SUBSIDIES
------------------------------------------------------ Chapter 20:2.20
This recommendation would set new, more restrictive criteria for
small airports to qualify for essential air service subsidies.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.20.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.20.2
Generally Agree. The Essential Air Service (EAS) Program currently
affects roughly 300 smaller communities in the United States. This
program is relatively small, accounting for less than $40 million in
1992. The EAS Program is often described by critics as uneconomical
and as an unwarranted subsidy to small communities. However, when
the airline industry was deregulated in 1978, Congress guaranteed
that small communities would continue to be connected to the nation's
air system through direct service to a medium or large airport for a
period of 10 years. Congress later extended the program for an
additional 10 years and has made other adjustments to this policy
over the years. The communities that benefit maintain that they
would be adversely affected if the assistance were terminated and
direct access to the nation's air transport network were lost.
In March 1994, we responded to a congressional request for
information on the availability of air travel between small airports
in the Midwest and Chicago's O'Hare International Airport under the
EAS Program. We found that, on average, the number of flights
available between the 41 midwestern EAS communities and O'Hare had
declined since the start of the program. Of the 41 communities, 17
have actually gained service, while 24 have lost service or receive
the same service. We also found that commuter slot holdings have
become increasingly concentrated among a few airlines, but average
yields (revenues per passenger mile) for operating between the small
airports and O'Hare are roughly in the middle of the distribution of
yields at other major airports. Airport operators and airline
representatives told us that O'Hare could accommodate more traffic by
allocating slots more efficiently. In addition, improvements
undertaken as part of the O'Hare Airport Redevelopment Plan have
increased the airport's overall capacity.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.20.3
Fully Implemented. DOT's fiscal year 1994 appropriation reduced EAS
airport subsidies from $38.6 million to $33.4 million, a reduction of
$5.2 million, which eliminated subsidies to commuter air carriers
serving four communities through more restrictive criteria. No
subsidy was permitted for a small airport located less than 70
highway miles from a medium or large hub airport; for a small airport
located less than 210 miles from a hub airport, the per-passenger
subsidy was limited to $200 or less. The administration's fiscal
year 1995 budget request calls for reducing EAS subsidies by an
additional $7.8 million, to $25.6 million. Although the House
version of the DOT appropriation bill adopted this reduction, the
Senate version restored the funding to $33.4 million. The DOT
appropriation act, Public Law 103-331 (September 30, 1994), sets the
EAS appropriation at the Senate level of $33.4 million.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.20.4
Airport Competition: Essential Air Service Slots at O'Hare
International Airport (GAO/RCED-94-118FS, Mar. 4, 1994).
Airport Improvement Program: Opportunity to Consider FAA's Role in
Meeting Airport System Needs (GAO/T-RCED-93-43, May 26, 1993).
DOT21: TERMINATE GRANT
FUNDING FOR FEDERAL AVIATION
ADMINISTRATION HIGHER
EDUCATION PROGRAMS
------------------------------------------------------ Chapter 20:2.21
To reduce costs, eliminate federal grant funding of two FAA
post-secondary education programs.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.21.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.21.2
Insufficient Information. We have not evaluated either the
Collegiate Training Initiative Program or the Airways Science
Curriculum and Grant Program, but we do have several observations to
make on the basis of the body of work we have performed concerning
FAA's work force. We have testified that the Office of Personnel
Management's register includes over 25,000 people qualified to seek
employment as air traffic controllers. This large backlog, and the
administration's decision to allow controllers fired during the
strike to compete for employment, should be considered in determining
whether the Collegiate Training Initiative Program for air traffic
controllers should be retained. If Congress decides to terminate
this program, it should consider using a phased approach to minimize
the impact on the students involved.
The stated purpose of the Airways Science Curriculum and Grant
Program is to develop a base of aviation technicians and managers for
FAA and for the aviation industry. While a recent report by DOT's
Inspector General found that the program offered little benefit to
FAA, we have not conducted a review to determine whether there is a
continuing need for this program or how the program affects the
aviation industry.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.21.3
Not Implemented--Action Taken. FAA has no immediate plans to
terminate its two higher education programs. It will, however,
consider whether to continue the Collegiate Training Initiative
Program at the end of 1995.
In November 1993, FAA proposed the rescission of $40.3 million in
grant funds for the Airways Science Curriculum and Grant Program, but
Congress rescinded only $5.1 million. Subsequently, FAA obligated
the remaining $35.2 million. FAA must continue to administer this
program until every grant is closed. FAA is planning to shift some
of its responsibilities for identifying and developing curricula for
this program to industry and academia, beginning in January 1995.
Congress has not added funds for either of these two programs to
FAA's fiscal year 1995 appropriations bill, as it has done to
appropriations bills in prior years.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.21.4
Air Traffic Control: Status of FAA's Plans to Close and Contract Out
Low-Activity Towers (GAO/RCED-94-265, Sept. 12, 1994).
FAA Reauthorization: Opportunity Exists to Address Safety, Capacity,
and Efficiency Issues (GAO/T-RCED-93-75, Sept. 28, 1993).
FAA Budget: Important Challenges Affecting Aviation Safety,
Capacity, and Efficiency (GAO/T-RCED-93-33, Apr. 26, 1993).
DOT22: ASSIGN OFFICE OF
MOTOR CARRIERS (OMC) FIELD
STAFF TO IMPROVE PROGRAM
EFFECTIVENESS AND REDUCE
COSTS
------------------------------------------------------ Chapter 20:2.22
The Office of Motors Carriers (OMC) should develop a resource
allocation model so that regional managers will be able to optimize
geographic assignment of staff, schedule carrier reviews in an
efficient manner, and eliminate unnecessary travel requirements.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.22.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.22.2
Agree. We concur that OMC field staff should be located in the
geographic areas where the greatest safety risks occur. FHWA should
coordinate its efforts with those of FRA, FAA, and the Research and
Special Programs Administration, which have been working to develop
and implement risk assessment models.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.22.3
Not Implemented--Action Taken. DOT's Volpe National Transportation
Systems Center is attempting to develop software to allocate staff
and travel budgets to the areas of greatest need. However, the
models developed to date have not enabled DOT to allocate its
resources more effectively. Although work is continuing, DOT does
not know at this time whether the recommendation can be successfully
implemented.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.22.4
Railroad Safety: Continued Emphasis Needed for an Effective Track
Safety Inspection Program (GAO/RCED-94-56, Apr. 22, 1994).
FAA Budget: Important Challenges Affecting Aviation Safety,
Capacity, and Efficiency (GAO/T-RCED-93-33, Apr. 26, 1993).
Aviation Safety: Problems Persist in FAA's Inspection Program
(GAO/RCED-92-14, Nov. 20, 1991).
Railroad Safety: New Approach Needed for Effective FRA Safety
Inspection Program (GAO/RCED-90-194, July 31, 1990).
Pipeline Safety: New Risk Assessment Program Could Help Evaluate
Inspection Cycle (GAO/RCED-89-107, Mar. 7, 1989).
DOT23: AUTOMATE
ADMINISTRATIVE REQUIREMENTS
FOR FEDERAL-AID HIGHWAY
PROJECTS
------------------------------------------------------ Chapter 20:2.23
NPR recommends improvements in the flow of information on federal-aid
highway projects that will reduce paperwork and reduce staff time in
completing certain forms and other current requirements.
ACTION ITEMS
---------------------------------------------------- Chapter 20:2.23.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 20:2.23.2
Agree. We endorse the call for improvements, including automation,
in the flow of information. In the course of our work, we have
recognized the need for better information to gauge the condition of,
and any progress made in improving, the transportation network. For
instance, in 1991, we reported that while FHWA was collecting data on
state expenditures for interstate highway maintenance, the data were
not reliable because information from many states was missing or
incomplete.
IMPLEMENTATION
---------------------------------------------------- Chapter 20:2.23.3
Partially Implemented. FHWA has identified a number of tasks that
can be automated for federal-aid highway projects. The work includes
an examination of the feasibility of automating project
authorizations, project agreements, materials usage data, and billing
processes. FHWA completed a small portion of this work before
September 1993, and additional work was completed during the
remainder of calendar year 1993 and in 1994.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 20:2.23.4
Transportation Infrastructure: Preserving the Nation's Investment in
the Interstate Highway System (GAO/RCED-91-147, Aug. 2, 1991).
DEPARTMENT OF THE
TREASURY/RESOLUTION TRUST
CORPORATION (TRE)
=========================================================== Chapter 21
OVERALL SUMMARY
--------------------------------------------------------- Chapter 21:1
The NPR recommendations for Treasury span a wide range of government
activities, including the coordination on federal law enforcement
agencies, organizational modernization for IRS and Customs, and
improvement of governmentwide financial management systems. Treasury
officials have been cooperating with the Justice Department in
efforts to improve law enforcement coordination. The creation of the
Office of Investigative Agency Policies within Justice appears to be
a positive step toward better coordination of law enforcement
efforts. This office, however, does not have authority over, and
generally does not affect, either Treasury investigative agencies or
other federal investigative agencies outside of Justice. Overall,
though, Treasury has taken some type of action regarding all of the
NPR recommendations related to its law enforcement activities.
Treasury has also taken action on other NPR recommendations. IRS is
working with other federal agencies and states to simplify tax and
wage reporting, and it is drafting legislation to allow greater
cooperation between the federal government and state governments on
tax administration. IRS and Customs are beginning to modernize their
operations, but full implementation of these efforts will not be
complete for several years. Also, reports we have recently issued on
IRS and Customs showed that these agencies continue to have
significant problems with their financial management.
GAO CONTACT
------------------------------------------------------- Chapter 21:1.1
Jennie Stathis, Issue Area Director, Tax Policy and Administration,
(202) 512-5407.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 21:2
TRE01: IMPROVE THE
COORDINATION AND STRUCTURE
OF FEDERAL LAW ENFORCEMENT
AGENCIES
------------------------------------------------------- Chapter 21:2.1
NPR recommends the designation of the Attorney General as the
Director of Law Enforcement to coordinate federal law enforcement
efforts. It also recommends changes in the alignment of federal law
enforcement responsibilities.
ACTION ITEMS
----------------------------------------------------- Chapter 21:2.1.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 21:2.1.2
Generally Agree. We support the need for greater coordination of the
numerous agencies involved in federal law enforcement. The
decentralized operations, including the 94 U.S. Attorneys and the
various investigative agencies within Justice and Treasury,
complicate efforts by the Department of Justice to coordinate and
direct a wide variety of initiatives and programs to fight crime. We
have not taken a position as to whether the various law enforcement
agencies should be consolidated into one or more agencies.
IMPLEMENTATION
----------------------------------------------------- Chapter 21:2.1.3
Other. According to information obtained from Treasury officials, to
improve coordination among investigative agencies within the
Department as well as with Justice agencies, Treasury (1) recently
established an under secretary position to coordinate its law
enforcement activities, (2) is reorganizing its enforcement bureaus
to be more mission specific, (3) has developed some interagency
memorandums of understanding regarding coordination of
responsibilities, and (4) is participating in task forces with the
FBI.
In a related action, in November 1993 the Attorney General
established the Office of Investigative Agency Policies (OIAP) to
improve coordination among its law enforcement agencies, reduce
duplication, and better utilize investigative resources. OIAP is
headed by a Director (currently the FBI Director), appointed by the
Attorney General from among the heads of the affected investigative
agencies--FBI, Drug Enforcement Administration, U.S. Marshals
Service, and Immigration Naturalization Service--and Justice's
Criminal Division. OIAP is responsible for resolving operational
issues among the Justice's investigative agencies where there is
overlapping jurisdiction and for advising the Attorney General
regarding administrative, budgetary, and personnel matters involving
these agencies. Among other things, OIAP has issued resolutions and
begun taking actions to improve within Justice the (1) use and
sharing of federal drug intelligence, (2) coordination of violent
crime activities, (3) coordination of the budget requests of the
various investigative agencies, and (4) location and use of Justice
field offices and resources.
Although Treasury apparently has taken some actions intended to
improve coordination among its investigative agencies and with
Justice agencies, at the time of our follow-up inquiry, we were
unable to obtain sufficiently detailed information to assess those
actions. Moreover, while the creation of the OIAP within Justice
appears to be consistent with the underlying intent of the
recommendation and a positive step toward improving coordination of
law enforcement activities within the Department, OIAP does not have
authority over and generally does not affect Treasury investigative
agencies or other non-Justice federal investigative agencies.
Furthermore, according to Justice, there have been no further actions
on this recommendation pending NPR's issuance of the accompanying
report.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 21:2.1.4
Bank and Thrift Failures: The Government Could Do More to Pursue
Fraud and Wrongdoing (GAO/T-GGD-93-1, Jan. 28, 1993).
Bank and Thrift Criminal Fraud: The Federal Commitment Could Be
Broadened (GAO/GGD-93-48, Jan. 8, 1993).
Justice Issues (GAO/OCG-93-23TR, Dec. 1992).
Bank and Thrift Fraud: Overview of the Federal Government's Response
(GAO/T-GGD-92-12, Feb. 6, 1992).
War on Drugs: Information Management Poses Formidable Challenges
(GAO//IMTEC-91-40, May 31, 1991).
Justice Department: Coordination Between DEA and the FBI
(GAO/GGD-90-59, Mar. 21, 1990).
TRE02: IMPROVE BORDER
MANAGEMENT
------------------------------------------------------- Chapter 21:2.2
Federal border management should be significantly improved. NPR
recommends a series of actions to be taken by Customs and INS to make
these improvements.
ACTION ITEMS
----------------------------------------------------- Chapter 21:2.2.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 21:2.2.2
Agree. Customs and INS have a long history of interagency rivalry,
poor coordination, and ineffective cooperation despite sharing
responsibility for primary inspections at land border ports of entry.
We have recommended that OMB, working with Treasury and Justice,
develop a proposal for ending the dual management of border
inspections.
IMPLEMENTATION
----------------------------------------------------- Chapter 21:2.2.3
Not Implemented--Action Taken. INS and Customs are working on five
cooperative areas: coordinated shift scheduling; special operations;
cross training; joint performance standards; and development of port
quality improvement committees. However, at this time there is no
indication from INS or Customs that they are working on a strategic
improvement plan or that the actions they are taking will
comprehensively address previously identified problems.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 21:2.2.4
Customs Service and INS: Dual Management Structure for Border
Inspections Should Be Ended (GAO/GGD-93-111, June 30, 1993).
TRE03: REDIRECT AND BETTER
COORDINATE RESOURCES
DEDICATED TO THE
INTERDICTION OF DRUGS
------------------------------------------------------- Chapter 21:2.3
This recommendation outlines changes that can be made to better
coordinate federal programs directed at the air interdiction of
drugs.
ACTION ITEMS
----------------------------------------------------- Chapter 21:2.3.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 21:2.3.2
Agree. Given worldwide drug production capacity, domestic demand,
and the resourcefulness of drug smugglers to adapt to U.S.
enforcement initiatives, the overall availability of drugs in this
country has not been diminished despite substantial increases in air
interdiction efforts and related drug seizures. The commitment of
resources should not be made without considering the potential
effectiveness of alternative efforts, both supply and demand, and
should be based on achieving measurable goals. Also, to better
coordinate agency efforts, improvements in information system
interoperability, data integrity, security, and overall intelligence
information management are needed.
IMPLEMENTATION
----------------------------------------------------- Chapter 21:2.3.3
Not Implemented--Action Taken. The recommended changes have not been
implemented, but several agency actions have been taken. Treasury
and Justice have enhanced their communication and coordination on
interdiction matters. An example of the enhanced cooperation is the
regular communication on interdiction matters between the Treasury's
Under Secretary for Enforcement and the Deputy Attorney General.
Treasury has reviewed existing drug interdiction programs to
determine benefits to the national strategy and has taken steps to
streamline the programs. For example, the Agency is reducing funding
for the P-3 aircraft program and there will be fewer flight hours in
fiscal year 1995.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 21:2.3.4
Drug Control: Reauthorization of the Office of National Drug Control
Policy (GAO/GGD-93-144, Sept. 29, 1993).
Drug Control: Heavy Investment in Military Surveillance Is Not
Paying Off (GAO/NSIAD-93-220, Sept. 1, 1993).
War on Drugs: Information Management Poses Formidable Challenges
(GAO/IMTEC-91-40, May 31, 1991).
Drug Interdiction: Funding Continues to Increase but Program
Effectiveness Is Unknown (GAO/GGD-91-10, Dec. 11, 1990).
Drug Control: Anti-Drug Efforts in the Bahamas (GAO/GGD-90-42, Mar.
8, 1990).
Drug Smuggling: Capabilities for Interdicting Private Aircraft Are
Limited and Costly (GAO/GGD-89-93, June 9, 1989).
TRE04: FOSTER FEDERAL-STATE
COOPERATIVE INITIATIVES BY
THE IRS
------------------------------------------------------- Chapter 21:2.4
Cooperative relationships between the IRS and state tax
administrations, including joint filing of data, should improve
taxpayer service as well as collection activity while reducing costs.
ACTION ITEMS
----------------------------------------------------- Chapter 21:2.4.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 21:2.4.2
Agree. We fully support such relationships and have recommended that
IRS identify and implement ways to increase cooperation with state
governments in collecting delinquent taxes. We have also noted the
growing cooperation between IRS and states in the joint electronic
filing of income tax returns.
IMPLEMENTATION
----------------------------------------------------- Chapter 21:2.4.3
Not Implemented--Action Taken. In the 103rd Congress, H.R. 3419
contained provisions for IRS and state tax authorities to enter into
cooperative agreements for the purpose of enhancing joint tax
administration such as the filing of income tax returns, single
processing of such returns, and the joint collection of taxes (other
than federal income). The Internal Revenue Service has not fully
supported H.R. 3419 because it does not go far enough to allow full
joint federal-state cooperative activities. IRS is drafting
legislation which (1) would be far broader in concept than H.R. 3419
and (2) would allow IRS and states greater flexibility to meet future
federal-state cooperative needs that are not necessarily evident at
this time. Unlike H.R. 3419, IRS' proposal includes joint
collection of federal income taxes.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 21:2.4.4
Tax Administration: New Delinquent Tax Collection Methods for IRS
(GAO/GGD-93-67, May 11, 1993).
Tax Administration: Opportunities to Increase the Use of Electronic
Filing (GAO/GGD-93-40, Jan. 22, 1993).
TRE05: SIMPLIFY EMPLOYER
WAGE REPORTING
------------------------------------------------------- Chapter 21:2.5
The administrative burden caused by current employer wage-reporting
requirements could be reduced while maintaining or improving the
effectiveness of government operations by developing and implementing
a simplified wage-reporting system.
ACTION ITEMS
----------------------------------------------------- Chapter 21:2.5.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 21:2.5.2
Generally Agree. We agree that there are burdens associated with the
current tax- and wage-reporting requirements and fully support
attempts to simplify them. In 1989, we reported on our assessment of
three possible alternatives to the current system, including one that
involved establishing a single point to receive and process tax and
wage data for IRS, the Social Security Administration, and the
states. We concluded that although there were advantages to each
alternative, none were compelling enough to warrant a change to the
existing process in the near term.
IMPLEMENTATION
----------------------------------------------------- Chapter 21:2.5.3
Partially Implemented. A December 1993 study co-sponsored by IRS,
the Social Security Administration (SSA), the Department of Labor,
and the Office of Management and Budget (OMB), concluded that the
Wage Report Simplification Project is technically feasible and
provides economic benefits. In January 1994, IRS and SSA began a
demonstration project in 12 states to eliminate the need for
employers to send Form W-2s to state tax agencies. The project is
expected to be expanded in 1995. Based on discussions with program
officials, at least 23 states will be participating in the expanded
project. According to IRS officials, the W-2 demonstration project
should be fully implemented by January 1997.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 21:2.5.4
Social Security: Reconciliation Improved SSA Earnings Records, but
Efforts Were Incomplete (GAO/HRD-92-81, Sept. 1, 1992).
Social Security: Alternative Wage-Reporting Processes
(GAO/HRD-90-35, Nov. 8, 1989).
TRE06: ESTABLISH FEDERAL
FIREARMS LICENSE USER FEES
TO COVER COSTS
------------------------------------------------------- Chapter 21:2.6
The current fee for a retail dealer's firearms license (authorized in
1968) does not cover the cost of license processing and is low enough
to encourage applications from individuals wishing to occasionally
purchase firearms at reduced cost. Increased fees would recover the
cost of operating the firearms program.
ACTION ITEMS
----------------------------------------------------- Chapter 21:2.6.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 21:2.6.2
Generally Agree. GAO suggested in March 1994 that Treasury propose
legislation to establish a Federal Firearms License User Fee Program
for all categories of licensees. The licensing fees should be set
(and periodically adjusted) to recover the costs of related
government services.
IMPLEMENTATION
----------------------------------------------------- Chapter 21:2.6.3
Not Implemented--Action Taken. Although the Brady Handgun Violence
Prevention Law (P.L. 103-159) raised license fees, it did not raise
them enough to recover the cost of operating the firearms program.
Implementation of this recommendation is dependent on legislative
action by Congress to increase these fees even further. A number of
bills have been introduced that would accomplish this goal, but none
have been enacted.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 21:2.6.4
User Fees for Firearms Licenses (GAO/GGD-94-111R, Mar. 14, 1994).
TRE07: IMPROVE THE
MANAGEMENT OF FEDERAL ASSETS
TARGETED FOR DISPOSITION
------------------------------------------------------- Chapter 21:2.7
Improvements are needed in the methods by which the federal
government disposes of various assets.
ACTION ITEMS
----------------------------------------------------- Chapter 21:2.7.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 21:2.7.2
Generally Agree. We have identified the need for improvements in
asset management and disposition activities by several agencies. We
are continuing to assess asset management and disposition activities
of selected agencies. We have work in progress to address possible
duplication of resources within the Department of Justice and
Treasury asset forfeiture programs. Also, we are studying the
feasibility of a single federal agency for disposing real property
from four agencies: Housing and Urban Development, Farmers Home
Administration, Federal Deposit Insurance Corporation, and Resolution
Trust Corporation (RTC). We will also identify recent federal
government efforts to improve coordination among asset disposition
entities.
IMPLEMENTATION
----------------------------------------------------- Chapter 21:2.7.3
Partially Implemented. Some actions have been taken to implement the
NPR recommendation. For example, the Departments of Justice and
Treasury have agreed to jointly develop and implement a seized
property tracking system to be used by all Justice and Treasury
agencies as well as several other agencies.
RTC has taken actions to improve asset disposition by acting on the
21 management reforms mandated by the RTC Completion Act of December
1993. Three of these reforms specifically address asset disposition.
Another significant action to improve asset disposition is being
taken by the Department of Treasury and the General Services
Administration. They are leading a pilot project designed to improve
coordination between 11 federal agencies responsible for disposing of
real property. The project has included multi-agency sales and
marketing events, and development of standards for program
performance.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 21:2.7.4
RTC: Interim Report on the Management Reforms in the RTC Completion
Act (GAO/GGD-94-114, June 30, 1994).
Asset Forfeiture Programs (GAO/HR-93-17, Dec. 1992).
Resolution Trust Corporation (GAO/HR-93-4, Dec. 1992).
Tax Administration: IRS' Management of Seized Assets
(GAO/T-GGD-92-65, Sept. 24, 1992).
Real Property Dispositions: Flexibility Afforded Agencies to Meet
Disposition Objectives Varies (GAO/GGD-92-144FS, Sept. 18, 1992).
Asset Management: Governmentwide Asset Disposition Activities
(GAO/GGD-91-139FS, Sept. 27, 1991).
TRE08: REDUCE THE
DUPLICATION OF DRUG
INTELLIGENCE SYSTEMS AND
IMPROVE COMPUTER SECURITY
------------------------------------------------------- Chapter 21:2.8
NPR recommends several changes to eliminate duplication in the
federal drug intelligence system.
ACTION ITEMS
----------------------------------------------------- Chapter 21:2.8.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 21:2.8.2
Generally Agree. We generally agree with the recommendation's
objectives of eliminating duplication and improving coordination in
federal drug intelligence. While NPR has recommended the position of
Director of Law Enforcement to manage the national counternarcotics
program, such a position has not yet been established. Therefore,
there is little detail provided on the roles and responsibilities of
the office and how it will manage such an effort. Overlapping
responsibilities among the numerous law enforcement and defense
agencies result in fragmentation and duplication. NPR may want to
further describe how the Director of Law Enforcement will improve
coordination among such agencies as Treasury, Justice, and Defense.
IMPLEMENTATION
----------------------------------------------------- Chapter 21:2.8.3
Not Implemented--Action Taken. The Attorney General has created the
OIAP within the Department of Justice (28 C.F.R. O.17). This office
was created to increase efficiency within the Department by
coordinating specified activities of Justice's criminal investigative
components. The Director of the FBI serves as the Director of OIAP.
OIAP, in a February 1994 resolution, acknowledged that law
enforcement agencies have not maximized the sharing of information
and coordination of activities in the drug intelligence arena. To
address this concern, three actions were recommended. First, the FBI
and DEA are to create a common drug database to consist of
information contained in those agencies' existing databases. Second,
the DEA/Customs El Paso Intelligence Center (EPIC) Advisory Board is
to consider the FBI's request for appointment of an FBI
representative as a Deputy Director of EPIC. Third, the National
Drug Intelligence Center (NDIC) Director is to coordinate strategic
drug intelligence initiatives with all appropriate Justice law
enforcement agencies. None of these recommended actions have taken
place.
Treasury officials said they have been cooperating with Justice in
these efforts. In addition, Treasury has enhanced the capabilities
of the Financial Crimes Enforcement Network (FINCEN) by bringing more
Treasury and non-Treasury agencies to participate in its financial
information and anti-money laundering services. They have also been
"selling" the advantages of the Treasury Enforcement Communications
System (TEC System) to other law enforcement agencies. FINCEN and
the TEC System can provide substantial support to law enforcement
agencies and thereby reduce duplication by eliminating the need for
agencies to independently develop such services/information.
In addition, Treasury has consolidated drug intelligence personnel
from two of its centers to one center. The Treasury operations
center is being consolidated with an FBI center. Treasury is phasing
in its planned computer security controls for safeguarding the
integrity and privacy of information. These changes are covered by a
December 1993 manual directive Automated Information Systems and
Network Security.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 21:2.8.4
Drug Control: Reauthorization of the Office of National Drug Control
Policy (GAO/T-GGD-94-7, Oct. 5, 1993).
Drug Control: Reauthorization of the Office of National Drug Control
Policy (GAO/GGD-93-144, Sept. 29, 1993).
Drug Control: Coordination of Intelligence Activities
(GAO/GGD-93-83BR, Apr. 2, 1993).
Computer Security: DEA's Handling of Sensitive Drug Enforcement on
National Security Information is Inadequate (GAO/T-IMTEC-92-24, Sept.
30, 1992).
Drug Control: Inadequate Guidance Results in Duplicate Intelligence
Production Efforts (GAO/NSIAD-92-153, Apr. 14, 1992).
War on Drugs: Information Management Poses Formidable Challenges
(GAO/IMTEC-91-40, May 31, 1991).
TRE09: MODERNIZE THE IRS
------------------------------------------------------- Chapter 21:2.9
The IRS Tax Systems Modernization (TSM) initiative, currently in its
initial stages, would ease taxpayer burdens due to manual return
processing and inaccessible information, and enable IRS to provide a
level of service comparable to private sector financial institutions.
ACTION ITEMS
----------------------------------------------------- Chapter 21:2.9.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 21:2.9.2
Agree. We fully support the need to modernize IRS and have been
active in monitoring IRS' efforts to ensure that appropriate steps
are taken to bring this major effort to fruition and to take full
advantage of the opportunities afforded by the new technology.
IMPLEMENTATION
----------------------------------------------------- Chapter 21:2.9.3
Partially Implemented. IRS has (1) awarded contracts for and/or
begun piloting key TSM systems; (2) announced significant
organizational changes that, among other things, will consolidate its
computing and customer service operations; and (3) issued a business
master plan that links IRS' strategic objectives and business vision
with the tactical actions needed to implement them and identifies
performance measures to be used in assessing progress. Full
implementation of TSM will take several years; IRS' target date is
after 2001.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 21:2.9.4
Tax Systems Modernization: Status of Planning and Technical
Foundation (GAO/T-AIMD-GGD-94-104, Mar. 2, 1994).
Tax Systems Modernization: Status of Planning and Technical
Foundation (GAO/T-AIMD-GGD-94-104, Nov. 17, 1993).
Tax Administration: IRS' New Business Vision (GAO/T-GGD-94-58, Nov.
17, 1993).
Tax Systems Modernization: Timetable for Critical Planning Documents
(GAO/AIMD-93-81FS, Sept. 30, 1993).
Tax Administration: Achieving Business and Technical Goals in Tax
Systems Modernization (GAO/T-GGD-93-24, Apr. 27, 1993).
Internal Revenue Service Issues (GAO/OCG-93-24TR, Dec. 1992).
Tax Systems Modernization: Progress Mixed in Addressing Critical
Success Factors (GAO/T-IMTEC-92-13, Apr. 2, 1992).
Tax Systems Modernization: Issues Facing IRS (GAO/T-IMTEC-91-18,
July 9, 1991).
Tax Systems Modernization: Attention to Critical Issues Can Bring
Success (GAO/T-IMTEC-91-8, June 25, 1991).
TRE10: MODERNIZE THE U.S.
CUSTOMS SERVICE
------------------------------------------------------ Chapter 21:2.10
NPR recommends a number of changes in Customs' organization and
management processes to provide an improved management structure and
strategic vision.
ACTION ITEMS
---------------------------------------------------- Chapter 21:2.10.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 21:2.10.2
Agree. In our past work, we have found serious program weaknesses
that affected Customs' ability to reasonably ensure that it was
meeting its responsibilities for combating unfair foreign trade
practices or protecting the public from unsafe goods. We have
recommended that Customs institute a strategic management process
that defines a clear trade enforcement strategy, sets mission
priorities, establishes performance objectives, and monitors progress
toward achieving them. We also recommended the adoption of an
organizational structure that more adequately supports the
achievement of Customs' trade enforcement mission. Customs is taking
action on these recommendations.
IMPLEMENTATION
---------------------------------------------------- Chapter 21:2.10.3
Not Implemented--Action Taken. Customs has a number of projects
ongoing that could change the way in which it operates. For example,
Customs has established a comprehensive trade enforcement strategic
planning and monitoring system, redesigned its organizational and
management structure, redesigned its targeting system for ensuring
compliance with trade laws, and redesigned its automated systems
needed to support operations. On completion of these efforts,
Customs expects to achieve significant improvement in the effective
enforcement of trade laws and more efficient administration of
Customs' services to the public. Given the scope of its planned
actions, Customs does not expect this transformation to take place
quickly. For example, the Customs' established milestone for fully
implementing its reorganization plans (including the realignment of
personnel) is late 1997.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 21:2.10.4
Financial Management: Examination of Customs' Fiscal Year 1993
Financial Statements (GAO/AIMD-94-119, June 15, 1994).
Financial Management: Control Weaknesses Limited Customs' Ability to
Ensure That Duties Were Properly Assessed (GAO/AIMD-94-38, Mar. 7,
1994).
Financial Management: Customs' Self-Assessment of Its Internal
Control and Accounting Systems Is Inadequate (GAO/AIMD-94-8, Oct.
27, 1993).
Customs Service: Trade Enforcement Activities Impaired by Management
Problems (GAO/GGD-92-123, Sept. 24, 1992).
Financial Management: Customs Needs to Establish Adequate
Accountability and Control Over Its Resources (GAO/AFMD-92-30, Aug.
25, 1992).
TRE11: ENSURE THE EFFICIENT
MERGER OF RESOLUTION TRUST
CORPORATION INTO THE FDIC
------------------------------------------------------ Chapter 21:2.11
The merger of the RTC and the FDIC should ensure the transfer of RTC
expertise not currently held by the FDIC in order to provide the most
efficient administration of these asset-disposition functions.
ACTION ITEMS
---------------------------------------------------- Chapter 21:2.11.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 21:2.11.2
Agree. We agree with this recommendation. The merger of RTC with
FDIC offers the opportunity to combine the expertise of these
organizations and improve the efficiency of asset management and
disposition activities. We believe that FDIC can benefit from RTC's
experiences--both positive and negative--in developing systems and
procedures for asset marketing and disposition, information
management, contracting, and affordable housing. As the transition
progresses, RTC and FDIC should keep Congress informed so that
changes in operations are responsive to congressional concerns. Key
decisions about strategies, staffing, and organization should be
objective and based on careful analysis.
IMPLEMENTATION
---------------------------------------------------- Chapter 21:2.11.3
Not Implemented--Action Taken. RTC and FDIC have taken action to
implement the NPR recommendation. The FDIC/RTC Transition Task Force
was established on February 22, 1994, and is in the process of
developing detailed plans to guide the merger of RTC into FDIC.
Several working groups have been established, and some have developed
reports on issues that need to be considered to ensure the efficient
merger of several RTC and FDIC programs and functions. These reports
are intended to provide a basis for the task force to plan for the
efficient trasfer of RTC staff and responsibilities. While some
action on the NPR recommendation has occurred, the recommendation
cannot be fully implemented until RTC closes in December 1995 and all
RTC staff and responsibilities have been transferred to FDIC.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 21:2.11.4
Financial Audit Resolution Trust Corporation: 1993 and 1992
Financial Statements (GAO-AIMD-94-148, June 30, 1994).
RTC Performance Assessment (GAO/T-GGD-93-13, Mar. 18, 1993).
Resolution Trust Corporation (GAO/HR-93-4, Dec. 1992).
TRE12: REDUCE THE
DUPLICATION OF LAW
ENFORCEMENT TRAINING
FACILITIES
------------------------------------------------------ Chapter 21:2.12
Overlap and duplication in the provision of federal law enforcement
training facilities should be examined. Multi-agency training needs
should be accommodated through existing facilities in lieu of the
construction of new facilities by individual agencies.
ACTION ITEMS
---------------------------------------------------- Chapter 21:2.12.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 21:2.12.2
Insufficient Information. Although we have not studied this issue,
this is an area where we would agree that further examination could
prove worthwhile. Law enforcement agencies, while having unique
missions that require individualized training, frequently have
overlapping jurisdictions and perform functions that require similar
or identical knowledge and skills.
IMPLEMENTATION
---------------------------------------------------- Chapter 21:2.12.3
Other. Treasury officials believe a mechanism is already in place
which is dedicated to accomplishing this recommendation. The Federal
Law Enforcement Training Center, or FLETC, was established in 1970 to
accomplish common training of law enforcement investigators while
allowing individual participating agencies to do specialized
training. Although Treasury supervises administrative and financial
activities, FLETC is governed by an eight member board of directors
representing participating agencies, including the Departments of
Justice, Treasury, Interior and the General Services Administration.
In all, over 70 law enforcement agencies participate in FLETC.
However, several agencies are not participants, including U.S.
Postal Inspection Service, Drug Enforcement Administration, and the
Army Criminal Investigation Division; in addition, the FBI maintains
its own training facilities. The Department of Justice has not as
yet addressed this issue.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 21:2.12.4
None.
TRE13: STREAMLINE
BACKGROUND INVESTIGATIONS
FOR FEDERAL EMPLOYEES
------------------------------------------------------ Chapter 21:2.13
The current method of completing background examinations of federal
employees is time-consuming and inefficient. This recommendation
outlines improvements to streamline the process without sacrificing
thoroughness.
ACTION ITEMS
---------------------------------------------------- Chapter 21:2.13.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 21:2.13.2
Generally Agree. We have not specifically reviewed this issue with
respect to Treasury employees. But, given our past work at other
agencies, we endorse the concept of streamlining background
investigations provided that thoroughness is not jeopardized,
particularly with respect to the investigation of employees for
sensitive positions such as those in law enforcement.
IMPLEMENTATION
---------------------------------------------------- Chapter 21:2.13.3
Partially Implemented. Treasury is in the process of implementing or
evaluating actions it can take in response to the NPR recommendation.
Specifically, the implementation of a Treasury Security Manual will
replace OPM's Federal Personnel Manual and will address both
personnel security and security investigation matters. It is
anticipated that the manual will be released in early fiscal year
1995. The manual will specify minimum requirements for employment at
Treasury but will allow stricter ones for Bureaus which request them.
Moreover, the manual will allow the Bureaus to investigate applicants
or secure investigation by other means.
In the area of periodic reinvestigations, Treasury is pilot testing a
streamlined investigation procedure focusing on criminal background
and credit checks. Treasury is also discussing with Intelligence
agencies ways to modify or reduce requirements for obtaining Top
Secret/Sensitive Compartmentalized Information clearance. Finally,
Treasury is in the process of implementing an on-line system for
tracking employees' clearance status and need for periodic
reinvestigation. For certain Treasury components this system went
on-line May 23, 1994 and the remaining components are expected
on-line by the end of 1994. The Department of Justice has not yet
addressed this issue.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 21:2.13.4
Employee Background Checks (GAO/GGD-93-62R, Sept. 2, 1993).
Nuclear Security: DOE's Progress on Reducing Its Security Clearance
Work Load (GAO/RCED-93-183, Aug. 12, 1993).
Personnel Security: Efforts by DOD and DOE to Eliminate Duplicate
Background Investigations (GAO/RCED-93-23, May 10, 1993).
OPM Revolving Fund: Benchmarking Could Aid OPM's Efforts to Improve
Customer Service (GAO/GGD-92-18, Jan. 21, 1992).
TRE14: ADJUST CIVIL
MONETARY PENALTIES TO THE
INFLATION INDEX
------------------------------------------------------ Chapter 21:2.14
Civil monetary penalties have not been adjusted to keep up with
inflation. Under this recommendation, a "catch-up" adjustment would
be made and the need for additional inflation adjustments would be
automatically reassessed by the government every 4 years.
ACTION ITEMS
---------------------------------------------------- Chapter 21:2.14.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 21:2.14.2
Generally Agree. In principle, we agree that civil penalties should
be periodically adjusted so that they do not lose relevancy.
Although we have not made a detailed examination of the specifics of
this recommendation (the final NPR accompanying report has not been
issued), we recognize that such adjustments could be based on
inflation as well as other factors such as deterrence. Our prior
work on civil debt and criminal fines has shown that much of the
currently imposed criminal and civil fines and penalties remain
uncollected. As of the end of fiscal year 1993, the Department of
Justice estimated the total amount of unpaid criminal debt exceeded
$3.5 billion, and civil debt exceeded $1.9 billion; the balances owed
continue to grow.
IMPLEMENTATION
---------------------------------------------------- Chapter 21:2.14.3
Not Implemented--Action Taken. To implement an inflation adjustment
for civil monetary penalties requires statutory authority. H.R.
3400, as passed by the House of Representatives in November 1993,
included provisions to use an inflation index to revise all monetary
penalties every 4 years, and to provide for an immediate one-time
catch-up adjustment. The provision was deleted from the bill in the
Senate (S. 2170). Subsequently, S. 2170 was enacted as Public Law
103-356 on October 13, 1994, and did not contain the provision in
question.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 21:2.14.4
Restitution, Fines, and Forfeiture: Issues for Further Review and
Oversight (GAO/T-GGD-94-178, June 28, 1994).
National Fine Center: Expectations High, but Development Behind
Schedule (GAO/GGD-93-95, Aug. 10, 1993).
Program Fraud: Implementation of the Program Fraud Civil Remedies
Act of 1986 (GAO/AFMD-91-73, Sept. 16, 1991).
U.S. Department of Justice: Overview of Civil and Criminal Debt
Collection Efforts (GAO/T-GGD-90-62, July 31, 1990).
TRE15: INCREASE IRS
COLLECTIONS THROUGH BETTER
COMPLIANCE EFFORTS
------------------------------------------------------ Chapter 21:2.15
NPR supports the current efforts of the IRS under Compliance 2000 to
improve voluntary compliance and other efforts to collect taxes
already owed to the federal government.
ACTION ITEMS
---------------------------------------------------- Chapter 21:2.15.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 21:2.15.2
Generally Agree. We have long been on record as supporting the need
for improved compliance efforts. While supporting Compliance 2000 in
concept, we have not fully endorsed IRS' implementation of that
concept. It is also not clear what, if anything, NPR is recommending
beyond what IRS is already doing.
IMPLEMENTATION
---------------------------------------------------- Chapter 21:2.15.3
Partially Implemented. The IRS has several ongoing compliance
efforts which are included under the umbrella of IRS' major
initiative, Compliance 2000. Changes that IRS made to its
Installment Agreements and Offer-in-Compromise Programs occurred
before this NPR recommendation was made. The Market Specialization
Program, which is an effort to organize audits of taxpayers by
industry or issue, is ongoing. Of 85 to 90 market segments currently
identified, there are final audit guidelines for 9 segments and draft
audit guidelines for 27 segments.
Reallocating staff at IRS collection field offices has been an
ongoing effort. Staffing imbalances among collection field staff are
expected to be resolved by normal staff attrition and hiring directed
to understaffed field offices. IRS' collection procedures have been
changed to allow case workers to close cases at the earliest point in
the collection process, thereby reducing collection inventories.
Part of the changing procedures is to make telephone calls earlier in
the collection process. This effort, known as the Early Intervention
Contact Project, is scheduled to start in January 1995.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 21:2.15.4
Tax Administration: Improved Staffing of IRS' Collection Function
Would Increase Productivity (GAO/GGD-93-97, May 5, 1993).
Internal Revenue Service Issues (GAO/OCG-93-24TR, Dec. 1992).
Internal Revenue Service Receivables (GAO/HR-93-13, Dec. 1992).
Tax Administration: Compliance 2000--A Worthy Idea That Needs
Effective Implementation (GAO/T-GGD-92-48, June 3, 1992).
TRE16: IMPROVE AGENCY
COMPLIANCE WITH EMPLOYMENT
TAX REPORTING REQUIREMENTS
------------------------------------------------------ Chapter 21:2.16
Many federal agencies do not fully comply with federal tax reporting
requirements. Responsibilities for compliance should be more fully
communicated and enforced.
ACTION ITEMS
---------------------------------------------------- Chapter 21:2.16.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 21:2.16.2
Agree. We agree that attention needs to be given to federal agency
compliance with federal contractor tax reporting requirements. We
first reported on this problem in April 1991 and followed with a
February 1992 update that showed compliance problems continuing.
IMPLEMENTATION
---------------------------------------------------- Chapter 21:2.16.3
Not Implemented--Action Taken. An OMB report to Congress dated April
1, 1994, identified the problems related to this issue and the steps
necessary to overcome them. IRS has held meetings to determine how
it will implement the OMB recommendations. IRS has several efforts
under way to strengthen regulations concerning contractors, to audit
federal agency compliance with the regulations, and to expand agency
compliance with reporting requirements. IRS is moving ahead, but
much remains to be done. IRS' actions are in accordance with its
plans. However, it will be 1996 before the OMB recommendations are
fully implemented. IRS has taken over the lead from the Financial
Management Service on delivering training to the agencies.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 21:2.16.4
Tax Administration: Federal Agencies Should Report Service Payments
Made to Corporations (GAO/GGD-92-130, Sept. 22, 1992).
Tax Administration: Federal Contractor Tax Delinquencies and Status
of the 1992 Tax Return Filing Season (GAO/T-GGD-92-23, Mar. 17,
1992).
Tax Administration: Federal Agency Tax Compliance Problems Remain
Improvements Are Planned (GAO/GGD-92-29, Feb. 18, 1992).
Tax Administration: Changes Are Needed to Improve Federal Agency Tax
Compliance (GAO/GGD-91-45, Apr. 16, 1991).
TRE17: AUTHORIZE FEDERAL
TAX PAYMENT BY CREDIT CARD
------------------------------------------------------ Chapter 21:2.17
Legislation should be enacted to allow certain taxpayers to make tax
payments with a credit card.
ACTION ITEMS
---------------------------------------------------- Chapter 21:2.17.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 21:2.17.2
Generally Agree. We support the general recommendation of payment of
taxes by credit card. We also support language in the Bankruptcy
Reform Act of 1994 (P.L. 103-394, Oct. 1994) that clarifies that
debtors may not discharge credit card debt incurred to pay federal
income taxes.
IMPLEMENTATION
---------------------------------------------------- Chapter 21:2.17.3
Not Implemented--Action Taken. In the 103rd Congress, H.R. 3419
contained provisions for IRS to accept tax payments by credit cards.
IRS and the Financial Management Service have been working on
procedures to allow credit card tax payments pending passage of
authorizing legislation. Current plans would incorporate credit card
payments into TAXLink, a new system being designed to accept
electronic federal tax deposits. Such a system was a requirement of
the North American Free Trade Agreement (NAFTA) and IRS believes that
it would be easy to incorporate a credit card tax payment component
within the electronic payment system. TAXLink is scheduled to be
implemented in March 1995 at which time virtually all federal tax
deposits would be made electronically.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 21:2.17.4
U.S. Credit Card Industry: Competitive Developments Need to Be
Closely Monitored (GAO/GGD-94-23, Apr. 28, 1994).
Tax Administration: New Delinquent Tax Collection Methods for IRS
(GAO/GGD-93-67, May 11, 1993).
TRE18: MODERNIZE THE
FINANCIAL MANAGEMENT SYSTEMS
------------------------------------------------------ Chapter 21:2.18
NPR recommends several changes to improve financial management with
Treasury, including consolidation of some operations, the improved
use of technology, and other actions.
ACTION ITEMS
---------------------------------------------------- Chapter 21:2.18.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 21:2.18.2
Insufficient Information. We do not know what specific changes the
NPR is recommending for Treasury. However, during our July 13, 1994,
testimony on the Department of Treasury's efforts to implement the
Chief Financial Officer (CFO) Act, we stated that several of its
bureaus continue to have significant problems with their financial
management systems. At the crux of these problems are antiquated and
nonintegrated core financial management systems and nonstandardized
subsystems. For instance, our audit report on IRS' fiscal year 1993
fiscal statements showed significant weaknesses in IRS' basic
systems, some of which are antiquated, not designed to provide
necessary financial information, and lack internal controls. In
addition, during our audit of Customs' fiscal year 1993 financial
statements, we found that serious and pervasive weaknesses in key
internal controls and systems have diminished Customs' ability to
report reliable financial information and effectively carry out its
mission. These weaknesses have resulted in lost revenue to the
federal government, errors in taxpayer accounts, and lack of proper
accountability for operating funds and seized assets. At both
bureaus we noted significant steps being taken to address these
problems. However, many of their efforts are in the early stages of
development and are not likely to be implemented for several years.
IMPLEMENTATION
---------------------------------------------------- Chapter 21:2.18.3
Not Implemented--Action Taken. Treasury reported in its 5-Year Plan
that it has made sustantial progress in the area of financial systems
and is in the process of developing an integrated, departmentwide
financial management system which will provide relevant and reliable
financial statements with the necessary performance and program
measures. Many of these planned improvements are expected to be
completed over the next few years, but none have been implemented.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 21:2.18.4
Financial Management: Status of CFO Act Implementation at the
Department of the Treasury (GAO/T-AIMD-94-157, July 13, 1994).
Financial Audit: Examination of Customs' Fiscal Year 1993 Financial
Statements (GAO/AIMD-94-119, June 15, 1994).
Financial Audit: Examination of IRS' Fiscal Year 1993 Financial
Statements (GAO/AIMD-94-120, June 15, 1994).
Financial Management: Additional Actions Needed to Improve Federal
Financial Management Systems (GAO/AFMD-90-14, Apr. 27, 1990).
TRE19: REPEAL SECTION 5010
OF THE INTERNAL REVENUE CODE
TO ELIMINATE TAX CREDITS FOR
WINE AND FLAVORS
------------------------------------------------------ Chapter 21:2.19
The wine and flavors tax credit should be repealed.
ACTION ITEMS
---------------------------------------------------- Chapter 21:2.19.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 21:2.19.2
Generally Agree. Alcohol excise tax rates vary considerably by type
of product, with distilled spirits being taxed at a much higher rate
per ounce of alcohol than beer or table wine. The section 5010 tax
credit was designed to compensate distilled spirits producers who
used lower-tax ingredients (wine and flavors) in their products by
lowering their effective tax rates. The credit thus provides
producers with an incentive to use wine and flavors in distilled
spirits products. As we reported in 1990, these ingredients are
sometimes added to obtain the tax benefits, rather than in response
to product requirements, market demand, or cost. Significantly more
tax revenues are being lost through use of this credit than Congress
originally estimated, and the credit is difficult to administer and
enforce. We recommended in September 1990 that section 5010 be
repealed. Our recommendation was predicated on Congress
standardizing alcohol excise tax rates across products on the basis
of the percentage of alcohol in a beverage regardless of the mix of
ingredients it contains. It is unclear whether NPR's recommendation
also anticipated rate standardization. However, a draft legislative
proposal prepared by the Bureau of Alcohol, Tobacco and Firearms
(BATF) in response to the NPR recommendation would eliminate the
credit without any reference to standardizing rates.
IMPLEMENTATION
---------------------------------------------------- Chapter 21:2.19.3
Not Implemented--Action Taken. ATF drafted legislation to repeal
Section 5010 of the Internal Revenue Code. It sent the draft
proposal to the Treasury Reinvention Team on August 2, 1994.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 21:2.19.4
Alcohol Excise Taxes: Simplifying Rates Can Enhance Economic and
Administrative Efficiency (GAO/GGD-90-123, Sept. 27, 1990).
TRE20: AMEND OR REPEAL
SECTION 5121 OF THE INTERNAL
REVENUE CODE REQUIRING
SPECIAL OCCUPATIONAL TAXES
ON RETAIL ALCOHOL DEALERS
------------------------------------------------------ Chapter 21:2.20
This recommendation would increase federal income from alcohol
dealers.
ACTION ITEMS
---------------------------------------------------- Chapter 21:2.20.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
---------------------------------------------------- Chapter 21:2.20.2
Generally Agree. We agree that Congress needs to consider changing
the special occupational tax provisions. As we reported in September
1990, those taxes, primarily paid by alcohol retailers, are difficult
to collect and administer. We suggested two alternatives: (1)
eliminating the special occupational taxes and offsetting the revenue
loss through a slight increase in existing excise taxes or (2)
keeping the special occupational taxes but collecting them only from
alcohol producers and importers and varying the tax on the basis of
the size of the facility. It is our understanding that one of the
alternatives being considered would continue the tax on retailers but
would require wholesalers to get proof of tax payment before selling
to the retailer. On its surface, this alternative would seem to
generally meet the intent of our recommendation--to reduce ATF's
administrative burden.
IMPLEMENTATION
---------------------------------------------------- Chapter 21:2.20.3
Not Implemented--Action Taken. ATF has drafted legislation for two
alternatives: (1) to repeal Section 5121 of the Internal Revenue
Code, and (2) to amend the same law to require wholesalers to
ascertain that retailers have paid the federal special occupational
tax prior to making sales to these retailers. It sent its two drafts
to the Treasury Reinvention Team on August 2, 1994.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 21:2.20.4
Alcohol Excise Taxes: Simplifying Rates Can Enhance Economic and
Administrative Efficiency (GAO/GGD-90-123, Sept. 27, 1990).
DEPARTMENT OF VETERANS AFFAIRS
(DVA)
=========================================================== Chapter 22
OVERALL SUMMARY
--------------------------------------------------------- Chapter 22:1
The Department of Veterans Affairs has partially implemented 4 of its
16 recommendations and has not implemented, but has taken some action
on, the remaining 12. Actions taken have included issuing internal
policies, establishing implementing committees, testing new
procedures, installing new equipment in various regional offices,
conducting customer satisfaction surveys, installing bedside
telephones in many VA hospitals, and reducing its pharmaceutical
inventories in centralized warehouses. Full implementation of 9 of
the 16 recommendations requires legislative actions that have either
been eliminated in congressional debate or are unlikely to pass this
year.
Although VA has been taking actions in response to the NPR
recommendations, we have expressed concern regarding the direction
some of the legislative proposals would have taken the VA. For
example, some of the legislative proposals to reform VA's health care
system would have, we testified in June, 1994, created significant
risks of increased fraud, waste, and abuse because they would have
essentially eliminated most internal controls under the personnel and
contracting laws and regulations. VA did not appear to be developing
adequate administrative controls to replace the personnel and
contracting requirements that would have been eliminated.
GAO CONTACT
------------------------------------------------------- Chapter 22:1.1
David P. Baine, Director, Federal Health Care Delivery Issues,
Health, Education, and Human Services Division, (202) 512-7101.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 22:2
DVA01: DEVELOP THE MASTER
VETERANS RECORD AND
MODERNIZE THE DEPARTMENT'S
INFORMATION INFRASTRUCTURE
------------------------------------------------------- Chapter 22:2.1
Creation of a master veterans record (MVR) for all VA programs and
improvements in the Department's information technology will improve
services to veterans and their families.
ACTION ITEM
----------------------------------------------------- Chapter 22:2.1.1
The Department of Veterans Affairs should move expeditiously to
strengthen and modernize its information infrastructure, with an
emphasis on establishing the scope of the MVR.
GAO COMMENTS
----------------------------------------------------- Chapter 22:2.1.2
Agree. We strongly support this recommendation and were instrumental
in getting OMB and VA to establish a formal agreement articulating
specific service improvement goals in part through the use of
automation. The agreement included the creation of a master veterans
record.
IMPLEMENTATION
----------------------------------------------------- Chapter 22:2.1.3
Not Implemented--Action Taken. In February 1994 VA's Master Veterans
Record (MVR) Working Group issued a MVR requirements study. The
study outlines both VA's current business environment and the
cooperative environment that the MVR will create. The study
recommended that MVR information requirements be a departmental
priority, that short term changes within VA's current technical
capability be made, and that the MVR Working Group's proposal be used
as a starting point toward the completion of the technical approach
to sharing information across the various VA administrations.
An MVR Technical Design Team was established to determine
alternatives and costs, design the long term solutions, and oversee
implementation of the MVR. Pilot testing of information exchange is
scheduled to begin soon and short term improvements are scheduled to
be completed by October 1994.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 22:2.1.4
Veterans Benefits: Acquisition of Information Resources for
Modernization is Premature (GAO/IMTEC-93-6, Nov. 4, 1992).
Veterans Affairs IRM: Stronger Role Needed for Chief Information
Resources Officer (GAO/IMTEC-91-51BR, July 24, 1991).
DVA02: MODERNIZE BENEFITS
CLAIMS PROCESSING
------------------------------------------------------- Chapter 22:2.2
Modernization of the VA benefits claims processing system will
improve the quality of service and save taxpayer dollars over time.
ACTION ITEMS
----------------------------------------------------- Chapter 22:2.2.1
1. The Secretary of Veterans Affairs should continue to ensure that
the Veterans Benefits Administration (VBA) modernization plan is
implemented on schedule and within budget.
2. The Secretary should expeditiously resolve issues of concern
raised by other executive agencies and congressional oversight
committees.
GAO COMMENTS
----------------------------------------------------- Chapter 22:2.2.2
Agree. We fully support efforts to modernize benefits claims
processing. VA, based on our recommendations, is currently analyzing
its business practices as one of the initial steps in reengineering
benefits claims processing.
IMPLEMENTATION
----------------------------------------------------- Chapter 22:2.2.3
Not Implemented--Action Taken. VA has installed Phase I equipment at
49 of its 58 regional offices and the installation is continuing.
The Phase II contract is expected to be awarded by the end of this
fiscal year, if funded. Currently funding has not been authorized.
Obligation authority for Phase III has been delayed until September
1995 and VA is currently revising its implementation schedule.
Conversion and redesign of information support is expected to be
completed by fiscal year 2000. Twelve interim support projects which
should provide moderate improvements are expected to be deployed
during fiscal years 1994 and 1995.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 22:2.2.4
Veterans Benefits: Redirected Modernization Shows Promise
(GAO/AIMD-94-26, Dec. 9, 1994).
Veterans Benefits: Lack of Timeliness, Poor Communication Cause
Customer Dissatisfaction (GAO/HEHS-94-179, Sept. 20, 1994).
Veterans Benefits: Acquisition of Information Resources for
Modernization is Premature (GAO/IMTEC-93-6, Nov. 4, 1992).
DVA03: ELIMINATE
LEGISLATIVE BUDGET
CONSTRAINTS TO PROMOTE
MANAGEMENT EFFECTIVENESS
------------------------------------------------------- Chapter 22:2.3
VA is covered by a number of special legislative requirements,
including employment "floors" for certain programs.
Reducing or eliminating some of these controls can reduce costs and
improve service without sacrificing accountability.
ACTION ITEM
----------------------------------------------------- Chapter 22:2.3.1
Eliminate travel, training, and personnel restrictions (including
floors and ceilings) in the Department of Veterans Affairs budget and
authorizing legislation, and give flexibility to field managers to
(a) transfer funds between programs and object classes, and (b)
obtain multiyear funding when requested.
GAO COMMENTS
----------------------------------------------------- Chapter 22:2.3.2
Generally Agree. We generally agree with the thrust of this
recommendation and are currently assessing some of the legislative
barriers that could hinder VA's ability to compete with private
sector health plans under the President's health reform proposal. In
addition, our office and OMB have, for years, been required to
certify, each time an appropriation bill or continuing resolution is
enacted, that funds and personnel have been properly released to VA.
IMPLEMENTATION
----------------------------------------------------- Chapter 22:2.3.3
Not Implemented--Action Taken. The Government Reform and Savings Act
of 1993 (H.R. 3400) would have addressed many of the legislative
budget constraints by (1) eliminating the hospital and nursing home
bed capacity requirements, (2) allowing a reduction in the number of
positions in the Office of Inspector General after notifying the
appropriate congressional committees and giving them 45 days to act,
(3) giving VA greater flexibility for administrative reorganizations,
and (4) eliminating the requirement that VA provide certain health
care services, leaving the determination to the discretion of the
Secretary.
The House passed H.R. 3400 on November 22, 1993. The bill was
referred to the Senate Governmental Affairs Committee, which reported
out a new bill, the Government Management Reform Act of 1994 (S.
2170), on June 9, 1994. The Senate bill did not include the VA
provisions and was enacted into law as Public Law 103-356 on October
13, 1994. The language VA included in its fiscal year 1995 budget
request was not included in the final appropriation bill.
The Health Security Act (H.R. 3600), as introduced, would have gone
even further, allowing VA to establish its own personnel system and
exempting it from most current federal personnel laws and
regulations, allowing VA to complete administrative reorganizations
without notifying Congress, and establishing a series of new revenue
sources to decrease VA's reliance on appropriations. H.R. 3600, as
amended by the House Veterans Affairs Committee, would have provided
guaranteed payments for VA health plans, further reducing VA's
dependence on annual appropriations.
Further action is not anticipated in the 103rd Congress on either the
original Health Security Act or the proposals that replaced it.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 22:2.3.4
Health Security Act: Analysis of Veterans' Health Care Provisions
(GAO/HEHS-94-205FS, July 15, 1994).
Veterans' Health Care: Efforts To Make VA Competitive May Create
Significant Risks (GAO/T-HEHS-94-197, June 29, 1994).
VA and the Health Security Act (GAO/HEHS-94-159R, May 9, 1994).
DVA04: STREAMLINE BENEFITS
CLAIMS PROCESSING
------------------------------------------------------- Chapter 22:2.4
VA should examine the usefulness of a New York Regional Office
approach to benefits claims processing that promises to streamline
the process. It should also examine regional staffing.
ACTION ITEMS
----------------------------------------------------- Chapter 22:2.4.1
1. The Department of Veterans Affairs should assess the performance
of the prototype Self-Directed Work Teams established in the VBA's
New York Regional Office. It should closely monitor the progress of
similar, ongoing reinvention initiatives in other VBA regional
offices. Improved business practices identified through these
initiatives should be implemented, where appropriate, throughout
VBA's 58 regional offices.
2. The VA should ensure that staffing and other resources allocated
to the adjudication process are commensurate with the quantity and
complexity of the workload in each of VBA's regional offices. 3.
The Veterans' Appeals Improvement Act of 1993 should be enacted into
law.
GAO COMMENTS
----------------------------------------------------- Chapter 22:2.4.2
Generally Agree. We agree that benefit claims processing should be
streamlined and are currently examining VA's efforts to streamline
the process in all regions. As part of that review, we assessed the
New York Regional Office project.
IMPLEMENTATION
----------------------------------------------------- Chapter 22:2.4.3
Not Implemented--Action Taken. VA plans to expand the experimental
claims processing concept used in the New York Regional Office and
other regional offices by the end of the fiscal year. Experiments in
other regional offices are under evaluation. VA has received a
contractor's study on its resource allocation model, and will test
this model during fiscal year 1995 before implementing it during the
fiscal year 1996 budget cycle.
Although the provisions for improving the operations of the Board of
Veterans' Appeals were contained in H.R. 3400, they were removed and
introduced in the Board of Veterans' Appeals Administrative
Procedures Improvement Act of 1994 (S. 1904) to expedite
consideration. Both houses passed separate versions of the
legislation which was enacted as Public Law 103-271 and signed by the
President on July 1, 1994.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 22:2.4.4
Veterans Benefits: Lack of Timeliness, Poor Communication Cause
Customer Dissatisfaction (GAO/HEHS-94-179, Sept. 20, 1994).
Veterans' Benefits: Status of Claims Processing Initiative in VA's
New York Regional Office (GAO/HEHS-94-183BR, June 17, 1994).
DVA05: CONSOLIDATE
DEPARTMENT OF DEFENSE AND
DEPARTMENT OF VETERANS
AFFAIRS COMPENSATION AND
RETIRED PAY PROGRAMS
------------------------------------------------------- Chapter 22:2.5
DOD and VA should create a task force to jointly examine their
disability compensation adjudication and disbursement processes.
ACTION ITEMS
----------------------------------------------------- Chapter 22:2.5.1
1. The Department of Veterans Affairs and the Department of Defense
Task Forces should jointly examine their disability compensation
adjudication and disbursement processes, identify potential areas
that can be streamlined or consolidated, and expeditiously implement
the resulting recommendations.
2. VA and DOD should also identify other overlapping benefit
programs (e.g. education, life insurance, and burial) that could
offer similar restructuring opportunities.
GAO COMMENTS
----------------------------------------------------- Chapter 22:2.5.2
Insufficient Information. It is not clear from NPR's recommendation
what efficiencies would be attained by combining these two apparently
disparate programs. For example, is NPR suggesting that the DOD
program governing disability retirement be combined with the VA
compensation program or that the broader DOD program covering all DOD
retirement pay be combined with the VA compensation program?
IMPLEMENTATION
----------------------------------------------------- Chapter 22:2.5.3
Not Implemented--Action Taken. VA, DOD, and Treasury are jointly
studying the feasibility, cost-effectiveness, and customer service
implications of combining that part of the VA compensation and DOD
retirement systems that relate to those who would receive a payment
from both VA and DOD. Site visits have been conducted at VA, DOD,
and Treasury facilities, and meetings have been held with
representatives of veterans service organizations and military
associations. The final report and recommendations are expected
before the end of calendar year 1994.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 22:2.5.4
None.
DVA06: ENHANCE VA COST
RECOVERY CAPABILITIES
------------------------------------------------------- Chapter 22:2.6
Revise VA policy to use a portion of cost recovery funds to defray
debt collection costs and expand recoveries to save money.
ACTION ITEMS
----------------------------------------------------- Chapter 22:2.6.1
1. The Department of Veterans Affairs should revise its policy to
allow Medical Care Cost Recovery (MCCR) funds to be used to defray
all collection costs for all categories of Veterans Health
Administration (VHA) receivables.
2. VA should seek legislative authority to enable the MCCR Program
to retain and distribute to medical facilities 25 percent of prior
year revenues that exceed projected total collections, as a
gain-sharing incentive to optimize cost recoveries.
3. VA should seek legislative authority to establish a debt
collection revolving fund based on the MCCR model.
GAO COMMENTS
----------------------------------------------------- Chapter 22:2.6.2
Agree. We support actions to allow VA to use a portion of recovery
funds to defray debt collection costs; such action, however, has
already been taken and no further revisions are needed. NPR's
recommendation does not address many other important aspects of cost
recovery, such as income verification and establishing billing rates.
Improvements in these functions could result in millions of dollars
in additional billings and collections.
IMPLEMENTATION
----------------------------------------------------- Chapter 22:2.6.3
Partially Implemented. VA revised its policy to include all
authorized health care collections under its Medical Care Cost
Recovery Program in Veterans Health Administrative Directive
10-94-056 dated June 29, 1994.
H.R. 3400 expands VA's authorized uses of funds recovered from third
parties for medical care provided by VA and contains an incentive
provision to directors of VA medical centers to increase recoveries.
H.R. 3400 has been passed by the House of Representatives.
In addition, VA is developing a legislative proposal to establish a
fund known as the Department of Veterans Affairs Benefits Cost
Recovery Fund.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 22:2.6.4
VA Health Care: Medical Care Cost Recovery Activities Improperly
Funded (GAO/HRD-94-2, Oct. 12, 1993).
Veterans Affairs Issues (GAO/OCG-93-21TR, Dec. 1992).
VA Health Care: Verifying Veterans' Reported Income Could Generate
Millions in Copayment Revenues (GAO/HRD-92-141, Sept. 15, 1992).
VA Health Care: Offsetting Long-Term Care Costs By Adopting State
Copayment Practices (GAO/HRD-92-96, Aug. 12, 1992).
VA Health Care: Copayment Exemption Procedures Should Be Improved
(GAO/HRD-92-77, June 24, 1992).
VA Health Care Cost Recoveries (GAO/T-HRD-90-40, June 20, 1990).
VA Health Care: Better Procedures Needed to Maximize Collections
From Health Insurers (GAO/HRD-90-64, Apr. 6, 1990).
VA Health Care: Medical Centers Need to Improve Collection of
Veterans' Copayments (GAO/HRD-90-77, Mar. 28, 1990).
DVA07: ESTABLISH A WORKING
CAPITAL FUND
------------------------------------------------------- Chapter 22:2.7
This recommendation would allow creation of a working capital fund
using existing resources in the Department to be used for certain
selected needs.
ACTION ITEM
----------------------------------------------------- Chapter 22:2.7.1
Legislation should be enacted to amend title 38 of the U.S. Code to
permit VA to establish a working capital fund.
GAO COMMENTS
----------------------------------------------------- Chapter 22:2.7.2
Generally Agree. We generally agree with the recommendation's
objectives of enabling selected needs, common to more than one VA
component, to be provided more efficiently than would otherwise be
possible. Specifically, VA proposes to use the fund to support four
service activities: personnel security, data processing training,
records management, and office supplies. This approach should
provide VA the opportunity to improve the planning and coordination
of these activities.
IMPLEMENTATION
----------------------------------------------------- Chapter 22:2.7.3
Not Implemented--Action Taken. The Government Management Reform Act
of 1994 (P.L. 103-356, Oct. 13, 1994) authorized the establishment
of six working capital fund pilot programs. The Director of OMB,
after consultation with the Senate and House Committees on
Appropriations, the Senate Committees on Governmental Affairs, and
the House Committee on Government Operations, is to designate the
agencies that will participate in the pilot program. VA is in the
process of developing plans to establish a fund, should it be one of
the designated agencies.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 22:2.7.4
Working Capital Funds: Three Agency Perspectives (GAO/AIMD-94-121,
May 20, 1994).
Improving Government: GAO's Views on H.R. 3400 Management
Initiatives (GAO/T-AIMD/GGD-94-97, Feb. 23, 1994).
DVA08: DECENTRALIZE
DECISIONMAKING AUTHORITY TO
PROMOTE MANAGEMENT
EFFECTIVENESS
------------------------------------------------------- Chapter 22:2.8
NPR recommends that VA headquarters and field management work
together to improve agency decisionmaking, including the delegation
of some decisionmaking to field activity directors.
ACTION ITEMS
----------------------------------------------------- Chapter 22:2.8.1
1. The Department of Veterans Affairs Central Office and field
managers should jointly develop a management policy framework for all
departmental management policy directives.
2. VA should review and update its policy directives within the new
management policy framework.
GAO COMMENTS
----------------------------------------------------- Chapter 22:2.8.2
Generally Agree. We agree that decisionmaking can often be
decentralized, but have repeatedly found problems in VA's efforts to
implement legislative and administrative policies because too much
autonomy was given to medical centers. VA currently operates a
decentralized medical care system and the VA Central Office is
reluctant to direct field facilities to take action to correct
operational problems. While we agree, in theory, with delegating
decisionmaking to field staff, our transition series report documents
repeated problems in correcting operational problems and implementing
legislative initiatives because field facilities were given too much
autonomy and were not held accountable for taking corrective actions.
There needs to be a balance between giving field facilities increased
flexibility in designing corrective actions and implementing policies
and retaining central office oversight to ensure that those actions
are adequate and consistent with overall VA policies.
IMPLEMENTATION
----------------------------------------------------- Chapter 22:2.8.3
Not Implemented--Action Taken. VA anticipates announcing a new
framework for decentralizing decisionmaking authority by the end of
the calendar year. VA believes this framework will help improve its
responsiveness and timeliness in serving veterans. Subsequently, VA
will provide guidance which field managers will be expected to follow
when implementing the new policy.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 22:2.8.4
VA Health Care: Problems in Implementing Locality Pay for Nurses Not
Fully Addressed (GAO/HRD-93-54, May 21, 1993).
VA Health Care: Medical Centers Are Not Correcting Identified
Quality Assurance Problems (GAO/HRD-93-20, Dec. 30, 1992).
Veterans Affairs Issues (GAO/OCG-93-21TR, Dec. 1992).
VA Health Care: Role of the Chief of Nursing Service Should Be
Elevated (GAO/HRD-92-74, Aug. 4, 1992).
VA Health Care: Efforts to Improve Pharmacies' Controls Over
Addictive Drugs (GAO/T-HRD-92-38, June 10, 1992).
VA Health Care for Women: Despite Progress, Improvements Needed
(GAO/HRD-92-23, Jan. 23, 1992).
VA Health Care: Inadequate Controls Over Addictive Drugs
(GAO/HRD-91-101, June 19, 1991).
Veterans Benefits: Improved Management Needed to Reduce Waiting Time
for Appeal Decisions (GAO/HRD-90-62, May 25, 1990).
DVA09: ESTABLISH A
COMPREHENSIVE RESOURCE
ALLOCATION PROGRAM
------------------------------------------------------- Chapter 22:2.9
VA should design and develop a comprehensive, departmentwide,
performance- and needs-based resource allocation program to replace
current approaches.
ACTION ITEM
----------------------------------------------------- Chapter 22:2.9.1
The Department of Veterans Affairs should design and develop a
comprehensive, departmentwide, performance- and needs-based resource
allocation program.
GAO COMMENTS
----------------------------------------------------- Chapter 22:2.9.2
Generally Agree. We agree with the need for a comprehensive resource
allocation program, particularly for the health care system. We have
issued several reports on problems in VA's former resource allocation
method for its medical centers and on the inequities in access to VA
medical benefits that result from the lack of an effective resource
allocation method.
IMPLEMENTATION
----------------------------------------------------- Chapter 22:2.9.3
Partially Implemented. As of June 1994, VA started to implement this
recommendation for its hospital system. VA has established both
performance- and needs-based allocation programs which are being used
during the fiscal year 1995 budget allocation process and fiscal year
1996 budget formulation process.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 22:2.9.4
Veterans Affairs: Service Delays at VA Outpatient Facilities
(GAO/T-HRD-94-5, Oct. 27, 1993).
Veterans Affairs: Accessibility of Outpatient Care at VA Medical
Centers (GAO/T-HRD-93-29, July 21, 1993).
VA Health Care: Variabilities in Outpatient Care Eligibility and
Rationing Decisions (GAO-HRD-93-106, July 16, 1993).
VA Health Care: Resource Allocation Methodology Has Had Little
Impact on Medical Center Budgets (GAO/HRD-89-93, Aug. 18, 1989).
DVA10: SERVE VETERANS AND
THEIR FAMILIES AS CUSTOMERS
------------------------------------------------------ Chapter 22:2.10
This recommendation outlines several approaches for VA to improve its
focus on veterans and their families as customers.
ACTION ITEMS
---------------------------------------------------- Chapter 22:2.10.1
1. The Department of Veterans Affairs (VA) should implement a
courtesy and caring initiative throughout VA.
2. VA should develop a departmentwide policy for collecting and
responding to veterans' suggestions and concerns.
3. VA should develop a comprehensive approach for improving its
capacity to respond to its customers' concerns, inquiries, and
complaints.
4. VA should develop a comprehensive approach for providing the
veterans service organizations (VSO) with a stronger consultative
role in policymaking and decisionmaking.
5. VA should provide patient bedside telephone access at its medical
centers as soon as possible.
GAO COMMENTS
---------------------------------------------------- Chapter 22:2.10.2
Agree. We strongly support actions to implement this recommendation.
NPR mentions plans to outline suggested approaches, but details on
those approaches are not available at this time. We have issued
numerous reports detailing problems in service delivery and quality
assurance both for the health and benefits programs and have
recommended specific actions to improve services, including
restructuring VA's ambulatory care delivery system.
IMPLEMENTATION
---------------------------------------------------- Chapter 22:2.10.3
Partially Implemented. VA completed surveys to identify areas where
improved customer service is needed and, in August 1994, issued a
customer service plan. Improvements appear to have occurred under
VA's claims processing initiative in its New York Regional Office
benefits program in New York but the limited data available do not
yet indicate improved timeliness. According to the VA, it has also
placed an increased emphasis on involving veterans service
organizations in key decisions.
Bedside telephones have been installed in 40 of VA's 172 hospitals
through a joint effort between VA and PT Phone Home, a volunteer,
charitable organization that includes many of the largest
communications companies in the United States and donated skilled
labor from the Communication Workers of America and the International
Brotherhood of Electrical Workers. VA estimates that this
arrangement will result in installation of bedside telephones in all
VA hospitals by 1996 at a savings to the government of $189 million.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 22:2.10.4
Veterans' Benefits: Lack of Timeliness, Poor Communication, Cause
Customer Dissatisfaction (GAO/HEHS-94-179, Sept. 20, 1994).
Veterans' Benefits: Status of Claims Processing Initiative in New
York Regional Office (GAO/HEHS-94-183BR, June 17, 1994).
Veterans' Health Care: Veterans' Perceptions of VA Services and Its
Role in Health Care Reform (GAO-T-HEHS-94-150, Apr. 20, 1994).
VA Health Care For Women: In Need of Continued VA Attention
(GAO/T-HEHS-94-114, Mar. 9,1994).
Homelessness: Demand for Services to Homeless Veterans Exceeds VA
Program Capacity (GAO/HEHS-94-98, Feb. 23, 1994).
Military Downsizing: Persons Returning to Civilian Life Need More
Help From DOD (GAO/HEHS-94-39, Jan. 21, 1994).
Veterans Benefits: Redirected Modernization Shows Promise
(GAO/AIMD-94-26, Dec. 9, 1993).
Veterans Affairs: Service Delays at VA Outpatient Facilities
(GAO/T-HRD-94-5, Oct. 27, 1993).
VA Health Care: Restructuring Ambulatory Care System Would Improve
Services to Veterans (GAO/HRD-94-4, Oct. 15, 1993).
VA Health Care: Variabilities in Outpatient Care Eligibility and
Rationing Decisions (GAO/HRD-93-106, July 16, 1993).
VA Health Care: Veterans' Efforts to Obtain Outpatient Care From
Alternative Sources (GAO/HRD-93-123, July 14, 1993).
Veterans' Affairs: Establishing Patient Smoking Areas at VA Medical
Centers (GAO/HRD-93-104, May 3, 1993).
Veterans Disability: Information From Military May Help VA Assess
Claims Related to Secret Tests (GAO/NSIAD-93-89, Feb. 18, 1993).
VA Health Care: Closure and Replacement of the Medical Center in
Martinez, California (GAO/HRD-93-15, Dec. 1, 1992).
Veterans Affairs Issues (GAO/OCG-93-21TR, Dec. 1992).
Veterans' Benefits: Availability of Benefits in American Samoa
(GAO/HRD-93-16, Nov. 18, 1992).
Veterans Benefits: Acquisition of Information Resources for
Modernization is Premature (GAO/IMTEC-93-6, Nov. 4, 1992).
VA Health Care: The Quality of Health Care Provided By Some VA
Psychiatric Hospitals Is Inadequate (GAO/HRD-92-17, Apr. 22, 1992).
VA Health Care: VA Plans Will Delay Establishment of Hawaii Medical
Center (GAO/HRD-92-41, Feb. 25, 1992).
VA Health Care for Women: Despite Progress, Improvements Needed
(GAO/HRD-92-23, Jan. 23, 1992).
VA Health Care: Telephone Service Should Be More Accessible to
Patients (GAO/HRD-91-110, July 31, 1991).
DVA11: PHASE OUT AND CLOSE
SUPPLY DEPOTS
------------------------------------------------------ Chapter 22:2.11
VA should convert its existing centralized depot storage and
distribution program to a commercial just-in-time delivery system and
close unneeded supply depots.
ACTION ITEM
---------------------------------------------------- Chapter 22:2.11.1
The Department of Veterans Affairs should convert its existing
centralized depot storage and distribution program to a commercial
just-in-time delivery system.
GAO COMMENTS
---------------------------------------------------- Chapter 22:2.11.2
Insufficient Information. We have not done any work specifically
addressing this recommendation.
IMPLEMENTATION
---------------------------------------------------- Chapter 22:2.11.3
Partially Implemented. VA is about three-quarters through
implementing this recommendation. The pharmaceutical inventory in
VA's depots has decreased from about $40 million to about $500,000.
VA now contracts with prime vendors to provide pharmaceuticals. VA
has not yet awarded prime vendor contracts for its medical surgical
supplies, but is in the process of awarding prime vendors contracts
for its hospital food supplies.
Although VA is converting to a just-in-time delivery system, some of
the functions at the depots will still remain and, therefore, the
depots will not be completely closed down. For example, VA's
distribution of American flags to the families of deceased veterans
will be retained at the Hines depot and the quality assurance
functions (installing and testing radiology and laundry equipment,
processing precious metals, etc.) will be retained at the Sommerville
depot. VA is currently using about 25,000 to 30,000 square feet of
the approximately 1 million square feet of space at the Sommerville
depot.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 22:2.11.4
DOD Medical Inventory: Reductions Can be Made Through Use of
Commercial Practices (GAO/NSIAD-92-58, Dec. 5, 1991).
DVA12: IMPROVE BUSINESS
PRACTICES THROUGH ELECTRONIC
COMMERCE
------------------------------------------------------ Chapter 22:2.12
VA should expand its use of electronic media to reduce paperwork and
save money. It should seek to make greater use of electronic funds
transfer of compensation and pension benefits.
ACTION ITEMS
---------------------------------------------------- Chapter 22:2.12.1
1. The Department of Veterans Affairs should expand its use of
electronic data interchange (EDI) for invoicing, government bills of
lading (GBL), and purchase orders, and analyze the cost-effectiveness
of EDI applications in VHA and VBA programs.
2. VA should seek to implement electronic funds transfer (EFT) for
compensation and pension beneficiaries who do not now use it.
3. VA should work with the Department of the Treasury to develop a
cost-effective, governmentwide approach to electronic benefits
transfer (EBT) for beneficiaries who cannot use EFT.
4. VA should seek to increase the level of employee participation in
the direct deposit program.
GAO COMMENTS
---------------------------------------------------- Chapter 22:2.12.2
Agree. We strongly agree that electronic fund transfers can improve
the accuracy of payments and cut administrative costs, even though we
have not done any work looking specifically at electronic fund
transfers for payment of VA compensation and pension benefits. We
have long supported the use of electronic funds transfers to pay
Social Security benefits and use such transfers for our own payroll.
IMPLEMENTATION
---------------------------------------------------- Chapter 22:2.12.3
Not Implemented--Action Taken. VA has formed an interdisciplinary
work group to formulate a short term plan to enhance its existing
Electronic Commerce/Electronic Data Exchange Program and to meet the
initial requirements of the Federal Electronic Commerce Acquisition
Team. Development plans, which include detailed tasks and
organizational responsibilities, indicate VA should complete work on
this recommendation in late 1994.
The Department of Veterans Affairs and the Treasury signed a
Memorandum of Agreement on September 9, 1994, to complete a series of
NPR "electronic commerce" initiatives. These initiatives will be
implemented over the next several months to improve existing
financial operations, and may enhance many systems maintained by VA
for benefit, administrative, and vendor payments.
Finally, VA and Treasury are conducting a test of electronic benefits
transfer for beneficiaries in the Dallas and Houston, Texas areas.
This test will be completed in December 1994 and the results will be
evaluated at that time.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 22:2.12.4
Veterans Benefits: Redirected Modernization Shows Promise
(GAO/AIMD-94-26, Dec. 9, 1993).
Veterans Benefits: Acquisition of Information Resources for
Modernization is Premature (GAO/IMTEC-93-6, Nov. 4, 1992).
DVA13: ELIMINATE SUNSET
DATES IN THE OMNIBUS BUDGET
RECONCILIATION ACT OF 1990
------------------------------------------------------ Chapter 22:2.13
To achieve cost savings, extend certain cost savings measures that
are due to expire in 1998.
ACTION ITEM
---------------------------------------------------- Chapter 22:2.13.1
Congress should eliminate the statutory sunset dates in the Omnibus
Budget Reconciliation Act relating to programs administered by VA.
GAO COMMENTS
---------------------------------------------------- Chapter 22:2.13.2
Agree. We strongly support the elimination of sunset dates.
Establishing sunset dates gives the illusion of additional cost
savings when the measures are reauthorized. Our prior work has been
instrumental in getting sunset provisions extended with respect to
using VA, IRS, and SSA records to verify veterans' reported incomes
for VA health care and pension benefits determinations.
Equally important, however, is prompt implementation of cost saving
measures once they are enacted. As we point out in our 1992
transition series report, slow implementation of legislative
initiatives cost VA an estimated $120 million in copayment revenues
from veterans who underreported their incomes to VA. Although the
Omnibus Budget Reconciliation Act of 1990 extended the sunset date
another 5 years, no savings will occur unless VA implements the
policies for using tax records to verify veterans' reported incomes.
IMPLEMENTATION
---------------------------------------------------- Chapter 22:2.13.3
Not Implemented--Action Taken. The recommendation requires changes
in legislation. While VA has submitted a legislative proposal to
OMB, OMB has not yet acted on it.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 22:2.13.4
Veterans Affairs Issues (GAO/OCG-93-21TR, Dec. 1992).
VA Health Care: Verifying Veterans' Reported Income Could Generate
Millions in Copayment Revenues (GAO/HRD-92-141, Sept. 15, 1992).
VA Health Care: Copayment Exemption Procedures Should Be Improved
(GAO/HRD-92-77, June 24, 1992).
Veterans' Benefits: Savings Possible From Reducing Pensions to
Medicaid-Supported Nursing Home Residents (GAO/HRD-92-32, Dec. 27,
1991).
Veterans' Benefits: Millions in Savings Possible From VA's Matching
Program With IRS and SSA (GAO/HRD-92-37, Dec. 23, 1991).
VA Health Care: Better Procedures Needed to Maximize Collections
From Health Insurers (GAO/HRD-90-64, Apr. 6, 1990).
VA Health Care: Medical Centers Need to Improve Collection of
Veterans' Copayments (GAO/HRD-90-77, Mar. 28, 1990).
DVA14: RAISE THE FEES FOR
VETERANS AFFAIRS' GUARANTEED
HOME LOANS
------------------------------------------------------ Chapter 22:2.14
As a cost savings measure, loan fees on veterans loans should be
raised above the levels set in the Omnibus Budget Reconciliation Act
of 1993.
ACTION ITEM
---------------------------------------------------- Chapter 22:2.14.1
The Department of Veterans Affairs should work with Congress to amend
section 3729 of title 38 of the U.S. Code to conform to the
Congressional Budget Office option of increasing VA home loan funding
fees.
GAO COMMENTS
---------------------------------------------------- Chapter 22:2.14.2
Insufficient Information. We have not done work directly relevant to
this recommendation but have generally supported user fees. It
should be noted, however, that increasing loan fees is a policy
option not a performance improvement action.
IMPLEMENTATION
---------------------------------------------------- Chapter 22:2.14.3
Not Implemented--Action Taken. VA's General Counsel submitted a
legislative proposal increasing fees for VA home loans to OMB. The
proposal is pending with OMB.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 22:2.14.4
Homeownership: Appropriations Made To Finance VA's Housing Programs
May Be Overestimated (GAO/RCED-93-173, Sept. 8, 1993).
DVA15: RESTRUCTURE THE
VETERANS AFFAIRS' HEALTH
CARE SYSTEM
------------------------------------------------------ Chapter 22:2.15
VA should reexamine its role and delivery structure after the
issuance of the report of the President's National Health Care Reform
Task Force and take actions to restructure the VA health care system.
ACTION ITEM
---------------------------------------------------- Chapter 22:2.15.1
The Department of Veterans Affairs should reexamine its role and
delivery structure in the wake of health care reform.
GAO COMMENTS
---------------------------------------------------- Chapter 22:2.15.2
Agree. We strongly agree that restructuring of the veterans' health
care system is needed with or without national health reform. NPR's
recommendation, however, lacks specificity and VA is already
reexamining its role. Through a series of completed and ongoing
assignments, we are assessing the reasonableness of VA's plans. As
discussed in our transition series report, we believe Congress should
consider limiting construction of additional VA acute care capacity
until the reformed health care system takes shape and VA's role in
that system is defined.
IMPLEMENTATION
---------------------------------------------------- Chapter 22:2.15.3
Not Implemented--Action Taken. There is little prospect for major
health reform, either nationally or in many of the states considering
comprehensive reforms, this year. In addition, both the
administration's proposals and the minority party's health reform
proposal
(S. 2374) focused primarily on preserving the acute care system.
Only
H.R. 3600 would have made significant changes in nursing home
coverage and eligibility for VA services not included in the standard
benefit package. Regardless of whether there is health reform this
year, there will continue to be a need to restructure the VA health
care system to better meet the health care needs of veterans.
In the fall of 1993, VA established a National Health Care Reform
Office to develop plans for transforming VA health care facilities
into a series of managed care plans in anticipation that some
elements of the veterans' health care provisions of the
administration's Health Security Act would be included in any final
health reform legislation. The reform office held a series of
working group sessions in January 1994 to identify and address
barriers to VA managed care and, in May 1994, issued a report
containing a framework for reform.
The reform office is also monitoring other reform proposals and
legislation enacted or proposed in the states. VA is currently
evaluating proposals to establish pilot projects in up to five states
that have enacted comprehensive health care reform legislation. The
pilot projects would test certain recommendations to allow VA to
better compete in a health care reform environment. VA believes the
pilot programs can be implemented without enactment of specific
legislation.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 22:2.15.4
Health Security Act: Analysis of Veterans' Health Care Provisions
(GAO/HEHS-94-205FS, July 15, 1994).
VA Health Care: Efforts to Make VA Competitive May Create
Significant Risks (GAO/T-HEHS-94-197, June 29, 1994).
VA Health Care: VA and the Health Security Act (GAO/HEHS-94-159R,
May 9, 1994).
VA Health Care Reform: Financial Implications of the Proposed Health
Security Act (GAO/T-HEHS-94-148, May 5, 1994).
VA Health Care: Most Care Provided Through Non-VA Programs
(GAO/HEHS-94-104BR, Apr. 25, 1994).
VA Health Care: Veterans' Perceptions of VA Services and Its Role in
Health Care Reform (GAO/T-HEHS-94-150, Apr. 20, 1994).
VA Health Care: A Profile of Veterans Using VA Medical Centers in
1991 (GAO/HEHS-94-113FS, Mar. 29, 1994).
VA Health Care: Comparison of VA Benefits With Other Public and
Private Programs (GAO/HRD-93-94, July 29, 1993).
VA Health Care: Potential for Offsetting Long-Term Care Costs
Through Estate Recovery (GAO/HRD-93-68, July 27, 1993).
Veterans Affairs: Accessibility of Outpatient Care at VA Medical
Centers (GAO/T-HRD-93-29, July 21, 1993).
VA Health Care: Variabilities in Outpatient Care Eligibility and
Rationing Decisions (GAO/HRD-93-106, July 14, 1993).
VA Health Care: Potential Effects of Health Care Reforms on VA's
Major Construction Program (GAO/T-HRD-93-19, May 6, 1993).
Veterans' Health Care: Potential Effects of Health Financing Reforms
on Demand for VA Services (GAO/T-HRD-93-12, Mar. 31, 1993).
Veterans' Health Care: Potential Effects of Health Reforms on VA
Construction (GAO/T-HRD-93-7, Mar. 3, 1993).
Veterans Affairs Issues (GAO/OCG-93-21TR, Dec. 1992).
VA Health Care: Offsetting Long-Term Care Costs by Adopting State
Copayment Practices (GAO/HRD-92-96, Aug. 12, 1992).
VA Health Care: Demonstration Project Concerning Future Structure of
Veterans' Health Program (GAO/T-HRD-92-53, Aug. 11, 1992).
VA Health Care: Alternative Health Insurance Reduces Demand For VA
Health Care (GAO/HRD-92-79, June 30, 1992).
VA Health Care: VA Plans Will Delay Establishment of Hawaii Medical
Center (GAO/HRD-92-41, Feb. 25, 1992).
DVA16: RECOVER
ADMINISTRATIVE COSTS OF
VETERANS' INSURANCE PROGRAM
FROM PREMIUMS AND DIVIDENDS
------------------------------------------------------ Chapter 22:2.16
VA should be permitted to recover certain insurance program costs
from insurance trust fund surpluses.
ACTION ITEM
---------------------------------------------------- Chapter 22:2.16.1
The Department of Veterans Affairs should work with Congress to amend
title 38 of the U.S. Code to permit the payment of administrative
expenses of the United States Government Life Insurance (USGLI),
National Service Life Insurance (NSLI), and Veterans Special Life
Insurance (VSLI) programs from their trust fund surpluses.
GAO COMMENTS
---------------------------------------------------- Chapter 22:2.16.2
Agree. We strongly support this position and recommended such action
in a March 1992 report. VA has proposed legislation to amend title
38 of the U.S. Code to allow administrative costs for three programs
to be paid from insurance trust fund earnings. At that time, GAO
estimated that 5-year savings would be about $150 million and would
cost the average policyholder about $11 a year in reduced dividends.
IMPLEMENTATION
---------------------------------------------------- Chapter 22:2.16.3
Not Implemented--Action Taken. To implement this recommendation, VA
proposed using excess program income to fund the administrative
expenses of its insurance programs. VA included this provision in
its fiscal year 1995 budget proposal to Congress. VA estimates that
this provision would save about $30 million in fiscal year 1995 and
$113 million over 5 years. This provision was removed by the House
Committee on Veterans Affairs when it considered VA's submission.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 22:2.16.4
VA Life Insurance: Administrative Costs for Three Programs Should Be
Paid From Excess Funds (GAO/HRD-92-42, Mar. 10, 1992).
CREATING QUALITY LEADERSHIP AND
MANAGEMENT (QUAL)
=========================================================== Chapter 23
OVERALL SUMMARY
--------------------------------------------------------- Chapter 23:1
It will take a long-term effort to bring all executive departments
and agencies to full speed in managing in accordance with quality
principles. While many of the recommendations and action items under
Creating Quality Leadership and Management seem to be under way to
full implementation, some are on hold pending action from government
officials. For example, the Federal Quality Institute is working
with agencies to provide the training and support needed. However,
the White House has not worked with executive departments and
agencies to create qualification guidance for certain senior
political appointee positions. Without coordinated action in the
executive branch, managing in accordance with quality principles will
be difficult to implement. No action has been taken to implement the
recommendation to improve legislative-executive branch relationships
by forming a bipartisan, bicameral workgroup.
GAO CONTACT
------------------------------------------------------- Chapter 23:1.1
William M. Hunt, Director, Federal Management Issues, General
Government Division, (202) 512-8676.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 23:2
QUAL01: PROVIDE IMPROVED
LEADERSHIP AND MANAGEMENT OF
THE EXECUTIVE BRANCH
------------------------------------------------------- Chapter 23:2.1
The President should define a vision for the management of the
government in the 21st century. To act on this vision, he should
direct department and agency heads to designate chief operating
officers and he should establish a President's Management Council
(PMC), comprised of the chief operating officers, to oversee the
implementation of NPR's recommendations.
ACTION ITEMS
----------------------------------------------------- Chapter 23:2.1.1
1. Provide governmentwide leadership, direction, and commitment for
effective management of the executive branch.
2. Direct department and agency heads to designate chief operating
officers.
3. Establish a President's Management Council.
4. Update and refocus the executive order establishing the
President's Council on Management Improvement.
5. Conduct periodic performance reviews to provide ongoing
improvement and renewal in the executive branch.
6. Redefine the Federal Quality Institute as an organization to
support the President, Vice President, Cabinet, and PMC in the
implementation of strategic and quality management throughout the
federal government.
GAO COMMENTS
----------------------------------------------------- Chapter 23:2.1.2
Generally Agree. We have emphasized that achieving quality results
in the federal government must begin with a strategic vision of the
future. Further, we have endorsed the roles played by the
President's Council on Management Improvement and the President's
Council on Integrity and Efficiency in helping implement management
reform. However, it is unclear how the PMC's role differs from those
of the councils already established.
IMPLEMENTATION
----------------------------------------------------- Chapter 23:2.1.3
Partially Implemented. According to officials from NPR and the
Office of Management and Budget (OMB), two of the six action items
under this recommendation, have been fully implemented, three have
been partially implemented, and one has not been implemented. The
President, the Vice President, OMB, and agency heads have regularly
expressed support for NPR's implementation and mananaging for
results, but a presidential memorandum expressing NPR principles has
not been issued (action 1). On October 1, 1993, the President issued
a memo that directed agencies to designate chief operating officers,
and established a President's Management Council (PMC) (action 2 and
3). The executive order establishing the President's Council on
Management Improvement has not been updated (action 4). NPR issued
an update report on the NPR recommendations and has plans for issuing
a future report on reengineering efforts on September 1995 (action
5). The Federal Quality Institute (FQI) has continually supported
the PMC and cabinet agencies by providing guidance and training, but
the FQI has not been redefined (action 6).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 23:2.1.4
Managing the Government: Revised Approach Could Improve OMB's
Effectiveness (GAO/GGD-89-65, May 4, 1989).
QUAL02: IMPROVE GOVERNMENT
PERFORMANCE THROUGH
STRATEGIC AND QUALITY
MANAGEMENT
------------------------------------------------------- Chapter 23:2.2
Encourage all department and agency heads to lead and manage in
accordance with the criteria in the Presidential Award for Quality.
To begin this culture change, all executive branch
employees--starting with the President and Cabinet--should attend
appropriate educational sessions on strategic and quality management.
ACTION ITEMS
----------------------------------------------------- Chapter 23:2.2.1
1. All department and agency heads should lead and manage in
accordance with the criteria in the Presidential Award for Quality.
2. All executive branch employees should attend appropriate
educational sessions on strategic and quality management, to include
the criteria for the Presidential Award for Quality.
3. Each department and agency head should establish a top-level
"quality council" to lead that organization's culture change.
4. Create a category within the Malcolm Baldrige Award for quality
in the federal government.
GAO COMMENTS
----------------------------------------------------- Chapter 23:2.2.2
Generally Agree. We fully support the need for federal managers to
lead and manage for quality. A key legislative action prompting a
greater focus on improving management in the federal government was
the Civil Service Reform Act of 1978. This act recognized the need
for performance measures and emphasized that, where feasible,
organizational and individual performance be appraised in terms of
timeliness, quality, and efficiency. More broadly, the Government
Performance and Results Act of 1993 emphasizes strategic planning as
one of the critical elements for instilling a results-oriented
management focus throughout the federal government. We believe,
however, that establishing this focus will also require that federal
managers have available to them the tools and incentives necessary
for achieving results.
We support the use of the Presidential Award for Quality criteria to
assess program performance. However, this should be revised, as
necessary, to ensure it recognizes other criteria that exist on
quality management, and lessons learned from using these criteria.
Finally, we have found that training is one of the critical elements
in perpetuating cultural change.
IMPLEMENTATION
----------------------------------------------------- Chapter 23:2.2.3
Partially Implemented. According to an NPR official, 3 federal
agencies have reported that they have established procedures
comparable to the Presidential Award for Quality, and 13 departments
and agencies have established a top level quality council. According
to an FQI official, they have completed their training materials and
are currently marketing their services to federal agencies. However,
all executive branch employees have not attended such training. The
inclusion of a category for federal organizations in the Malcolm
Baldrige Award is currently under discussion, but has not been
finalized.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 23:2.2.4
Quality Management: Survey of Federal Organizations (GAO/GGD-93-9BR,
Oct. 1, 1992).
Organizational Culture: Techniques Companies Use to Perpetuate or
Change Beliefs and Values (GAO/NSIAD-92-105, Feb. 27, 1992).
Management Practices: U.S. Companies Improve Performance Through
Quality Efforts (GAO/NSIAD-91-190, May 2, 1991).
Office of Personnel Management: Better Performance Information
Needed (GAO/GGD-90-44, Feb. 7, 1990).
QUAL03: STRENGTHEN THE
CORPS OF SENIOR LEADERS
------------------------------------------------------- Chapter 23:2.3
Develop guidance to be used to determine the qualifications needed
for selected senior political appointee positions, and provide
adequate orientations for individuals upon their appointment.
ACTION ITEMS
----------------------------------------------------- Chapter 23:2.3.1
1. Establish qualification guidance for selected senior political
appointee positions.
2. Provide adequate orientation and ongoing management training to
all political appointees and their career senior executive service
counterparts.
GAO COMMENTS
----------------------------------------------------- Chapter 23:2.3.2
Generally Agree. We agree that political appointees should be
qualified for their jobs and support orientation sessions for new
appointees. Moreover, we have emphasized the need to establish
strong financial management leadership at both OMB and the agencies,
and support the Chief Financial Officers (CFO) Act requirement that
OMB develop qualification standards for agency CFOs and their
deputies. Agency CFO and deputy leadership positions, which must be
key figures in top management teams, should be filled by highly
qualified people with extensive financial management experience.
IMPLEMENTATION
----------------------------------------------------- Chapter 23:2.3.3
Partially Implemented. The qualification guidance for senior
political appointee positions has not been established. Political
appointees and career SES officials have long been provided with
orientation and management training. We did not determine whether
this training was "adequate."
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 23:2.3.4
Financial Management Issues: First Financial Audits of IRS and
Customs Revealed Serious Problems (GAO/T-AIMD-93-3, Aug. 4, 1993).
Financial Management Issues (GAO/OCG-93-4TR, Dec. 1992).
The Qualifications for and Role of Agency Chief Financial Officers
(GAO/T-AFMD-91-7, June 7, 1991).
Senior Executive Service: Training and Development of Senior
Executives (GAO/GGD-89-127, Sept. 29, 1989).
Report of the National Commission on the Public Service
(GAO/T-GGD-89-19, Apr. 27, 1989).
QUAL04: IMPROVE
LEGISLATIVE-EXECUTIVE BRANCH
RELATIONSHIP
------------------------------------------------------- Chapter 23:2.4
Improve communications between the executive branch, members of
Congress, and congressional staff on key issues during and after
program and policy development and implementation. Develop an
agreed-upon approach for dealing with management failures, crises,
and chronic program difficulties.
ACTION ITEM
----------------------------------------------------- Chapter 23:2.4.1
Establish a bipartisan, bicameral workgroup, including executive and
legislative branch representatives, to serve as a forum for
identifying and resolving issues of mutual concern.
GAO COMMENTS
----------------------------------------------------- Chapter 23:2.4.2
Agree. We agree with the need to develop an approach for improving
communications between executive branch, members of Congress, and
congressional staff on program management issues. On several
occasions, we have reported on how improved communication is needed
in setting agency and program goals and priorities as well as in
conducting oversight of agencies to ensure goals and priorities are
being met. While we have not done any work evaluating specific
approaches for improving communications, we agree that any approach
chosen should be based on the agreement of all relevant parties.
IMPLEMENTATION
----------------------------------------------------- Chapter 23:2.4.3
Not Implemented--No Action Taken. According to an official from the
Office of the Vice President, there have been discussions to form
this workgroup, but the process has been on hold so far.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 23:2.4.4
Major Issues Facing a New Congress and a New Administration
(GAO/T-OCG-93-1, Jan. 8, 1993).
Financial Services Industry Issues (GAO/OCG-93-10TR, Dec. 1992).
Environmental Protection Issues (GAO/OCG-93-16TR, Dec. 1992).
Social Security Administration: Stable Leadership and Better
Management Needed to Improve Effectiveness (GAO/HRD-87-39, Mar. 18,
1987).
Strong Leadership Needed to Improve Management at the Department of
Labor (GAO/HRD-86-12, Oct. 21, 1985).
STREAMLINING MANAGEMENT CONTROL
(SMC)
=========================================================== Chapter 24
OVERALL SUMMARY
--------------------------------------------------------- Chapter 24:1
Federal management control systems are intended to help ensure the
economical and effective operation of federal programs, activities,
and organizations. As a result of breakdowns in these systems,
federal programs have not achieved their intended outcomes and
billions of dollars have been lost due to fraud, waste, abuse, and
mismanagement. The NPR recommendations in this area have highlighted
the critical need for greater coordination and cooperation among
agency management, legal counsel, auditors, and Congress. They also
create the opportunity for greater efficiency and effectiveness
through the reduction of reports and regulations that, while
requiring significant resources, provide little added value to
programs.
Implementation efforts are under way on seven of the eight
recommendations. Completion of these actions will be an important
step in the correction of the problems that exist in the management
controls area. However, because these actions will involve efforts
at departments and organizations throughout the government, effective
implementation will require a sustained effort and it will likely
take several years before the intended benefits will be realized. No
action has been taken to implement a systems design approach to
management control.
GAO CONTACT
------------------------------------------------------- Chapter 24:1.1
William M. Hunt, Director, Federal Management Issues, General
Government Division, (202) 512-8676.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 24:2
SMC01: IMPLEMENT A SYSTEMS
DESIGN APPROACH TO
MANAGEMENT CONTROL
------------------------------------------------------- Chapter 24:2.1
Redesign the existing collection of management control mechanisms for
the executive branch, using a systems design approach, in order to
create a well-managed and cost-effective system.
ACTION ITEM
----------------------------------------------------- Chapter 24:2.1.1
Redesign the existing set of control mechanisms for the executive
branch, using a systems design approach.
GAO COMMENTS
----------------------------------------------------- Chapter 24:2.1.2
Generally Agree. We fully support agency and governmentwide efforts
to strengthen internal control systems. For example, systems should
be cost-effective and managers should manage for risks. We also
agree that the management control system should include preventative
actions and results-oriented measures.
IMPLEMENTATION
----------------------------------------------------- Chapter 24:2.1.3
Not Implemented--No Action Taken. The President's Management Council
(PMC), which serves as the President's chief instrument to retool
management systems throughout the executive branch, has been
designated responsibility for implementing this recommendation. The
PMC has not taken action on this recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 24:2.1.4
Financial Management: DOD Has Not Responded Effectively to Serious,
Long-Standing Problems (GAO/T-AIMD-93-1, July 1, 1993).
Government Management: Report on 17 High-Risk Areas (GAO/T-OCG-93-2,
Jan. 8, 1993).
Federal Internal Control and Financial Management Systems: Major
Reform Efforts Are Needed (GAO/T-AFMD-90-14, Apr. 18, 1990).
Financial Integrity Act: Inadequate Controls Result in Ineffective
Federal Programs and Billions in Losses (GAO/AFMD-90-10, Nov. 28,
1989).
SMC02: STREAMLINE THE
INTERNAL CONTROLS PROGRAM TO
MAKE IT AN EFFICIENT AND
EFFECTIVE MANAGEMENT TOOL
------------------------------------------------------- Chapter 24:2.2
Rescind the current set of Internal Control Guidelines and replace
them with a broader handbook on management controls.
ACTION ITEMS
----------------------------------------------------- Chapter 24:2.2.1
1. Rewrite OMB Circular A-123, "Internal Control Systems," to be a
succinct document that defines the policy for establishing and
reviewing management controls.
2. Replace OMB's existing Internal Control Guidelines with a
handbook on management controls.
3. Revise government-sponsored management training to teach
management control as an integral function of management, not as a
reporting requirement.
GAO COMMENTS
----------------------------------------------------- Chapter 24:2.2.2
Generally Agree. Clearly, changes are needed in the government's
internal control program. Agencies must fix the long-standing
control weaknesses that limit the efficiency and effectiveness of
their programs and undermine public confidence in government. Over a
decade after the Federal Managers' Financial Integrity Act (FMFIA)
became law, we see the same kinds of internal control problems
emerging in our current audits as existed prior to the act's passage.
Moreover, our audits of the Air Force, Army, NASA, Internal Revenue
Service, and the Customs Service have identified a lack of adequate
reporting of those problems as required by FMFIA. GAO and OMB
efforts have shown that serious problems, when they are properly
identified, are deep-rooted and require major efforts to correct.
A broader handbook on management controls could be a part of the
solution. But, ways must be found to shift the focus from a
process-oriented activity to an identification of the root causes of
the problems and the correction of those problems. Senior managers
must be held accountable for fixing the internal control problems
that are identified. A start should be made on those that pose the
highest risk. Of course, in designing control systems, a
cost-benefit analysis is required and agencies' operations must not
be impeded.
IMPLEMENTATION
----------------------------------------------------- Chapter 24:2.2.3
Not Implemented--Action Taken. OMB is considering options for
changes to the FMFIA program which are necessary for a governmentwide
effort to improve each federal agency's implementation of FMFIA. OMB
is drafting a revised Circular A-123, "Internal Control Systems,"
which will represent the OMB-prepared guidelines required by FMFIA.
In addition, once the circular is issued, OMB plans to work with
representatives of other agencies in the development of internal
control training for governmentwide use. Some agencies and the CFO
Council also recognize the need for change, and their efforts should
both complement those of OMB and result in improvements independent
of OMB's actions.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 24:2.2.4
Improving Government: Actions Needed to Sustain and Enhance
Management Reforms (GAO/T-OCG-94-1, Jan. 27, 1994).
SMC03: CHANGE THE FOCUS OF
THE INSPECTORS GENERAL
------------------------------------------------------- Chapter 24:2.3
Change the focus of inspectors general (IG) from compliance auditing
to evaluating management control systems. In addition, recast the
IG's method of operation to be more collaborative and less
adversarial.
ACTION ITEMS
----------------------------------------------------- Chapter 24:2.3.1
1. Change the emphasis of IGs from compliance auditing to evaluating
management control systems.
2. Change the IG's method of operation to be more collaborative and
less adversarial.
3. Establish performance criteria for IGs.
4. Do not offer bonuses to IGs.
GAO COMMENTS
----------------------------------------------------- Chapter 24:2.3.2
Generally Agree. We support inspectors general broadening their role
to evaluate management control systems and, when circumstances
warrant it, to be more collaborative and less adversarial. The key
is to appoint inspectors general with the competence and interest in
taking on this broader role. In that regard, financial audits under
the CFO Act, for which inspectors general now have responsibility,
provide much of the needed incentive and opportunity. We would
caution, however, that inspectors general not lose sight of their
independence and other legislative responsibilities to conduct audits
and investigations.
IMPLEMENTATION
----------------------------------------------------- Chapter 24:2.3.3
Not Implemented--Action Taken. The "Inspectors General Vision
Statement," adopted by the IGs at meetings of the President's Council
on Integrity and Efficiency (PCIE) and the Executive Council on
Integrity and Efficiency (ECIE) in January 1994, is an important
first step in defining their broader role while reaffirming their
statutory mission. The vision statement addresses ways for the IGs
to work with agency heads and managers to improve program management,
maximize the positive impact of the IG's reviews, and provide
recommendations to prevent problems before they occur.
In addition, the Government Management Reform Act of 1994 (P.L.
103-356) requires that executive agencies prepare annual audited
financial statements covering all accounts and associated activities.
These audits are the responsibililty of the IGs and provide
opportunities for the IGs and management to work together to make
improvements to management control systems. However, auditing
management's compliance with applicable laws and regulations
continues to be a significant part of these audits and other work
required of the IGs.
The PCIE and ECIE are developing guidance on performance measurement
criteria for all the IGs, but have not addressed the acceptance of
bonuses.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 24:2.3.4
Inspectors General: Action Needed to Strengthen OIGs at Designated
Federal Entities (GAO/AIMD-94-39, Nov. 30, 1993).
Ten-Year Perspective on Federal Inspectors General (GAO/T-AFMD-88-16,
Aug. 4, 1988).
SMC04: INCREASE THE
EFFECTIVENESS OF OFFICES OF
GENERAL COUNSEL
------------------------------------------------------- Chapter 24:2.4
Define clearly the clients of agency general counsel offices as
agency line managers. Train staff attorneys to understand the
cultural changes they will need to undertake to operate in an
environment where program results are important. Develop performance
measures and "feedback loops" to ensure close cooperation with line
managers.
ACTION ITEMS
----------------------------------------------------- Chapter 24:2.4.1
1. Define clearly the clients of the Offices of General Counsel
(OGC).
2. Use franchising and other market mechanisms to encourage OGC
staffs to respond appropriately to their clients.
3. Develop performance measures and feedback loops for general
counsels to encourage close cooperation with clients.
GAO COMMENTS
----------------------------------------------------- Chapter 24:2.4.2
Insufficient Information. We agree that agency general counsel
offices should understand their program environment using any
applicable management tools necessary. However, we have not
performed any work in this area.
IMPLEMENTATION
----------------------------------------------------- Chapter 24:2.4.3
Not Implemented--Action Taken. In June 1994, the Project Director of
the National Performance Review requested assistance from the
Administrative Conference of the United States (ACUS) to redevelop
the roles of the federal agencies' OGCs. ACUS was requested to
assist the OGCs in defining who their clients are within their
agencies. This assistance would include developing a policy which
states that OGCs should help identify alternative approaches whenever
they consider a proposed management initiative to be not legally
acceptable. In addition, ACUS was requested to evaluate and
recommend whether it is desirable to reestablish the now-defunct
Federal Legal Council to address common legal issues related to
implementing other NPR recommendations, and the training needed.
ACUS is currently establishing an interagency committee to address
the objectives of this recommendation.
Some agencies, such as the United States Information Agency (USIA),
are beginning to develop performance measures and feedback loops
through the creation of a questionnaire to survey for customer
satisfaction among their agency program managers. Prior to NPR, USIA
has encouraged franchising by emphasizing a strong client-orientation
among their attorneys.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 24:2.4.4
None.
SMC05: IMPROVE THE
EFFECTIVENESS OF THE GENERAL
ACCOUNTING OFFICE THROUGH
INCREASED CUSTOMER FEEDBACK
------------------------------------------------------- Chapter 24:2.5
Improve GAO's documentation of best practices and the use of feedback
loops on its performance.
ACTION ITEM
----------------------------------------------------- Chapter 24:2.5.1
Improve GAO documentation of best practices and use of feedback
loops.
GAO COMMENTS
----------------------------------------------------- Chapter 24:2.5.2
Agree. We have long recognized the importance of being attuned to
our customers' needs. In 1992, we surveyed key congressional staff,
representing our primary customers, in an effort to find ways to
improve our services. We are also looking at ways to get feedback
from agencies so we can be assured that our work is as helpful as
possible to them as well. We fully recognize that, like everyone
else, we need to continuously seek ways to better serve our customers
if we are to improve our effectiveness.
In our reports, it has always been our policy to recognize noteworthy
management accomplishments identified during our work. Government
auditing standards note that such information is necessary to fairly
present, and provide balance to, the issues covered. Including such
information could stimulate improved performance by other government
organizations that read the report. Overall, we are increasingly
seeking opportunities to report on the best practices that we
identify as part of our work.
IMPLEMENTATION
----------------------------------------------------- Chapter 24:2.5.3
Partially Implemented. We have pilot tested a congressional feedback
questionnaire to obtain information on our performance on individual
jobs. Feedback was solicited from congressional requesters and other
committee members on all GAO produced testimonies and selected GAO
reports. We are now evaluating the results of the pilot to decide
how best to institutionalize a system of obtaining feedback from
congressional customers. Additionally, managers of GAO's issue areas
regularly meet with members and their staffs to obtain feedback on
our performance and to understand how to better serve Congress.
We have always had a policy of recognizing noteworthy management
accomplishments within our products. Including such information
could stimulate improved performance by other government
organizations that read the report. For example, we issued,
Executive Guide: Improving Mission Performance Through Strategic
Information Management and Technology, in May 1994, which presented
the best practices of a range of public and private sector firms that
were very successful in integrating modern computer technology into
their operations. Overall, we have increasingly highlighted best
practices identified during the course of our audit work.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 24:2.5.4
Executive Guide: Improving Mission Performance Through Strategic
Information Management and Technology (GAO/AIMD-94-115, May 1994).
Continuous Improvement: The Quality Challenge (GAO/QMG-93-1, Mar.
1993).
Continuous Improvement: The Quality Challenge (GAO/QMG-92-1, Nov.
1991).
SMC06: REDUCE THE BURDEN OF
CONGRESSIONALLY MANDATED
REPORTS
------------------------------------------------------- Chapter 24:2.6
Eliminate at least 50 percent of all congressionally mandated
reports. Review new reporting requirements for management impact,
and include a sunset provision.
ACTION ITEMS
----------------------------------------------------- Chapter 24:2.6.1
1. Eliminate at least half of all congressionally mandated reports.
2. Review new reporting requirements for management impact, and
include a sunset provision.
GAO COMMENTS
----------------------------------------------------- Chapter 24:2.6.2
Insufficient Information. We fully support congressional efforts to
streamline reporting requirements. We have issued at least 15
products on this topic dating back to 1973. Based on this work, we
believe there are opportunities to streamline reporting requirements
and decrease duplication. For example, there are opportunities for
combining Federal Managers' Financial Integrity Act and Chief
Financial Officers Act reporting requirements. However, we do not
know the overall percentage of reports that should be eliminated. We
believe that any effort to streamline reporting requirements should
be done as part of a focused strategy that considers Congress'
information needs and how those needs can best be met.
IMPLEMENTATION
----------------------------------------------------- Chapter 24:2.6.3
Not Implemented--Action Taken. Several legislative initiatives have
been taken to reduce the reporting burden on agencies. The
Government Management Reform Act of 1994 (P.L. 103-356) authorizes
OMB to publish recommendations annually in the budget for
consolidating, eliminating, or adjusting the due dates and frequency
of statutorily required periodic reports to Congress or committees of
Congress.
Two other relevant pieces of draft legislation have been awaiting
Senate or House action in the 103rd Congress. The Federal Report
Elimination and Modification Act of 1994 (S. 2156) would provide for
the elimination and modification of reports by federal departments
and agencies to Congress. It identifies, by agency, reports that
could be eliminated or modified to achieve the bill's intent.
The Legislative Reorganization Act of 1994 (H.R. 3801, sec. 371)
calls for a comprehensive survey of all statutory reporting
requirements and legislation, on or before December 31, 1996, to
eliminate obsolete, nonessential, or duplicative reports. It also
calls for legislation, by December 31, 1996, that will establish a
uniform and appropriate procedure for requiring agency reports to
Congress to expire after 5 years.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 24:2.6.4
Improving Government: GAO's Views on H.R. 3400 Management
Initiatives (GAO/T-AIMD/GGD-94-97, Feb. 23, 1994).
Congressional Reports: OMB and Other Agency Reporting Requirements
(GAO/GGD-92-90FS, Aug. 31, 1992).
SMC07: REDUCE INTERNAL
REGULATIONS BY MORE THAN 50
PERCENT
------------------------------------------------------- Chapter 24:2.7
Direct department secretaries and agency heads to reduce by at least
50 percent the number of internal regulations, and the number of
pages of regulations, within 3 years.
ACTION ITEM
----------------------------------------------------- Chapter 24:2.7.1
Reduce internal regulations by at least 50 percent over the next 3
years.
GAO COMMENTS
----------------------------------------------------- Chapter 24:2.7.2
Insufficient Information. We agree that agencies should pursue
initiatives to eliminate and consolidate unnecessary or duplicative
internal regulations. However, we have not examined the potential
regulations that could be eliminated governmentwide nor do we have a
basis for identifying a percentage of internal regulation that should
be eliminated.
IMPLEMENTATION
----------------------------------------------------- Chapter 24:2.7.3
Partially Implemented. President Clinton completed part of this
recommendation on September 11, 1993 when he signed Executive Order
12861 instructing each executive department and agency to eliminate
not less than 50 percent of its civilian internal management
regulations that are not required by law. This elimination of
internal regulations, scheduled to occur within 3 years, is designed
to streamline operations as well as improve productivity and customer
service.
We did not determine the overall extent to which internal regulation
have been reduced. However, some regulations have been reduced, as
demonstrated by the revision of the Federal Personnel Manual.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 24:2.7.4
None.
SMC08: EXPAND THE USE OF
WAIVERS TO ENCOURAGE
INNOVATION
------------------------------------------------------- Chapter 24:2.8
Establish a process for obtaining waivers from federal regulations
and identifying those regulations for which this process should
apply.
ACTION ITEM
----------------------------------------------------- Chapter 24:2.8.1
Establish a process for obtaining waivers from federal regulations
and identify the regulations for which this process applies.
GAO COMMENTS
----------------------------------------------------- Chapter 24:2.8.2
Generally Agree. GAO's ongoing work on the Government Performance
and Results Act of 1993 (GPRA) and executive agencies' reinvention
labs indicates that waivers from federal regulations may provide
agencies opportunities to streamline and deregulate their internal
operations. GPRA established a framework for holding agencies
accountable for results while granting managers the tools and
incentives to achieve desired outcomes. Agency labs and other
efforts seek to improve customer service and productivity through the
reinvention of processes and organizations.
IMPLEMENTATION
----------------------------------------------------- Chapter 24:2.8.3
Partially Implemented. Vice President Gore has encouraged federal
executives to achieve the administration's goals by concentrating on
performance and carefully measured results rather than relying on
processes and the extensive use of rules and regulations. The Office
of Management and Budget (OMB), the Office of Personnel Management
(OPM), and the General Services Administration (GSA) have said that
they are receptive to considering waivers, although none of these
central management agencies have established a coordinated process to
apply for waivers. For example, OMB will consider waivers on an
agency-by-agency basis. GSA has no specific process to consider
waivers but instead, according to a GSA official, has given executive
agencies a list of GSA contacts who will aid in preparing a written
application for waivers. Some executive agencies' officials are
frustrated by the complexity and time-consuming nature of applying
for waivers. These agencies have had difficulties determining which
regulations require a waiver from the central management agencies,
which regulations are imposed by law and which regulations were
created by the agencies themselves. Some executive agencies have
been granted waivers. For instance, the State Department and
Bonneville Power Administration have requested and received waivers
from selected GSA regulations.
In addition, OMB has been authorized, through GPRA, to designate
several pilot projects within a variety of executive agencies to test
managerial accountability and flexibility. OMB will be granting
these pilot projects waivers from certain nonstatutory administrative
requirements to give managers greater flexibility in managing their
programs and organizations in return for greater accountability for
program results and performance.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 24:2.8.4
None.
TRANSFORMING ORGANIZATIONAL
STRUCTURES (ORG)
=========================================================== Chapter 25
OVERALL SUMMARY
--------------------------------------------------------- Chapter 25:1
All of the recommendations in this section have been acted upon
except the recommendation that the President request authority to
reorganize executive agencies. The President's Management Council
(PMC) has fully implemented one recommendation by sponsoring several
initiatives that cut across individual agencies and departments. The
PMC also has taken action on another recommendation by forming a
working group on field office structure that is compiling a list of
agency field offices recommended for closure. The PMC is expected to
review the closure recommendations and then forward a list of
recommended closures to Congress.
The two recommendations that address targeting the federal workforce
downsizing efforts have been partially implemented. Legislation was
enacted in March 1994 calling for the executive branch to be reduced
by 272,900 full-time equivalent (FTE) positions during fiscal years
1994 through 1999 and authorizing separation incentive payments of up
to $25,000 to employees who resign or retire. While the NPR
recommended that the number of management control positions be cut by
half in agency downsizings, the statute did not limit the separation
incentives to employees in management control positions. However,
OMB asked that agencies' plans for complying with the FTE reductions
include streamlining actions such as doubling the managerial span of
control, eliminating organizational and oversight layers, and
reducing unnecessary controls and micromanagement. The plans are now
being reviewed by OMB. Implementation of this NPR recommendation
depends on the extent to which the plans ultimately approved by OMB
include elimination of management control positions. Thus, it is too
soon to determine whether the costs and the number of positions
associated with these management functions will be reduced by half by
fiscal year 1999.
A small amount of progress has been achieved in the use of
performance agreements to guide downsizing. Three executive agency
heads have signed performance agreements that refer to downsizing in
a way that could serve as guide for agency downsizing, either by
specifying specific downsizing goals or by committing to comply with
goals as specified in the President's memorandum on streamlining the
bureaucracy.
GAO CONTACT
------------------------------------------------------- Chapter 25:1.1
William M. Hunt, Director, Federal Management Issues, General
Government Division, (202) 512-8676.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 25:2
ORG01: REDUCE THE COSTS AND
NUMBERS OF POSITIONS
ASSOCIATED WITH MANAGEMENT
CONTROL STRUCTURES BY HALF
------------------------------------------------------- Chapter 25:2.1
Cut management control positions over the next 5 years. Reinvest
some of the savings in benchmarking, training, and investments in new
technology. In addition to separation incentives (see HRM14),
provide outplacement services to affected staff.
ACTION ITEM
----------------------------------------------------- Chapter 25:2.1.1
Reduce the costs associated with management control structures by one
half over a 5-year period.
GAO COMMENTS
----------------------------------------------------- Chapter 25:2.1.2
Insufficient Information. While we do not oppose reductions in
management control positions where appropriate, we recognize that
management control systems were put in place to create particular
desired effects. As agencies reduce or eliminate these systems, they
should be able to demonstrate that (1) other mechanisms will take
their place, (2) the particular effect is no longer needed or
relevant in the current environment, or (3) the current system is not
serving a useful purpose. We agree that some of the savings
resulting from such cuts should be reinvested in benchmarking,
training, and investments in new technology. We also support the use
of separation incentives to assist in employment reductions, and
agree the government should provide outplacement services to affected
employees.
IMPLEMENTATION
----------------------------------------------------- Chapter 25:2.1.3
Partially Implemented. The Federal Workforce Restructuring Act of
1994 reduced authorized full-time-equivalent (FTE) employment levels
in the executive branch by 272,900 during fiscal years 1994 through
1999, and authorized separation incentive payments of up to $25,000
to employees who resign or retire. The legislation did not limit
payment of separation incentives to employees in management control
positions but allowed payments to any employee separating from any
position in any location.
A presidential memorandum of September 11, 1993, directed agencies to
submit streamlining plans by December 1, 1993. On April 21, 1994,
OMB asked agencies to submit updated plans, by June 30, 1994,
describing how they would meet FTE employment levels specified by
OMB. Among the streamlining actions suggested by OMB were doubling
the managerial span of control, eliminating organizational and
oversight layers, and reducing unnecessary controls and
micromanagement.
According to OMB, all agencies submitted updated plans, and further
plan updates were required to be submitted by September 30, 1994.
These plans are being reviewed by OMB. An OMB official stressed
that, while the reduction of management control positions is an
important element OMB expects to see in agency streamlining plans, it
is only one of many factors OMB takes into account in determining and
revising agency FTE allocations. He said decisions on individual
agency restructuring and workforce size are subject to continuing
revision as presidential priorities, agency appropriations, and world
events dictate. Of overriding importance to OMB is the
governmentwide employment reduction requirement imposed by the
Federal Workforce Restructuring Act of 1994. The official added that
the agencies' plans must demonstrate how mission requirements will be
met in the restructured and streamlined organizations.
Until agency streamlining plans are finalized and implemented, it is
unknown to what extent the NPR's objective of reducing management
control structures might be achieved. OMB is targeting completion of
its review of agency plans and allocation of FTEs by agency in time
to use in preparing the fiscal year 1996 budget proposal.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 25:2.1.4
Social Security Downsizing: Significant Savings But Some Service
Quality and Operational Problems (GAO/HRD-91-63, Mar. 19, 1991).
ORG02: USE MULTIYEAR
PERFORMANCE AGREEMENTS
BETWEEN THE PRESIDENT AND
AGENCY HEADS TO GUIDE
DOWNSIZING STRATEGIES
------------------------------------------------------- Chapter 25:2.2
Performance agreements with agency heads (see NPR recommendation
BGT01) should be used to identify progress toward agreed-upon
downsizing goals--not central management agency controls such as
across-the-board cuts or ceilings on employment. In exchange,
agencies will be supported with increased management flexibilities.
ACTION ITEM
----------------------------------------------------- Chapter 25:2.2.1
Use multiyear performance agreements between the President and agency
heads as a tool or guide for downsizing; reengineering; partnering
across established boundaries; and empowering teams with authority,
skill, and accountability.
GAO COMMENTS
----------------------------------------------------- Chapter 25:2.2.2
Generally Agree. We generally agree with the implicit intent of this
recommendation to ensure that downsizing is carried out with regard
for the management context and particular necessities of individual
agencies. Developing performance agreements that address such goals
as downsizing, reengineering, and other priorities can help focus
efforts in each agency. However, it remains to be seen how effective
such performance agreements will be in providing that focus. Other
mechanisms, such as agency strategic plans, could also be used to
focus action on these priority efforts, including tailoring the
downsizing to individual agency needs.
IMPLEMENTATION
----------------------------------------------------- Chapter 25:2.2.3
Partially Implemented. Eight of the 24 executive department and
agency heads have signed performance agreements with the President,
and other agreements are in the process of being drafted. Only three
of eight signed agreements, however, refer to downsizing in a way
that can serve as a guide for agency downsizing efforts. One of the
three agreements (the Secretary of the Department of
Transportation's) mentions specific downsizing goals that could be
used as a guide. Two of the three agreements (Secretaries of the
Departments of Labor's and Housing and Urban Development's) refer to
complying with the President's September 11, 1993, memorandum on
streamlining the bureaucracy. The memorandum requires streamlining
plans to (1) address how agencies will reduce the ratio of managers
and supervisors to other personnel; (2) be characterized by
delegations of authority, decentralization, empowerment, and
accountability; (3) address ways to reduce "red tape"; and (4) seek
to realize cost savings. Also, several of the agreements address the
issues of reengineering, partnering across established boundaries,
and empowering work teams.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 25:2.2.4
Government Management Issues (GAO/OCG-93-3TR, Dec. 1992).
ORG03: ESTABLISH A LIST OF
SPECIFIC FIELD OFFICES TO BE
CLOSED
------------------------------------------------------- Chapter 25:2.3
Within 18 months, the President's Management Council should submit a
list to Congress of civilian field offices that should be closed.
ACTION ITEM
----------------------------------------------------- Chapter 25:2.3.1
Within 18 months, establish a list of specific field offices to be
closed and submit this list to Congress for approval.
GAO COMMENTS
----------------------------------------------------- Chapter 25:2.3.2
Generally Agree. We generally support a review of civilian agencies'
field offices to determine which offices might be closed or
consolidated with other offices to achieve economy and efficiency.
The accompanying report indicates that the restructuring is required
because the current field office structure does not reflect changes
in government services required. Our work at the Departments of
Agriculture and Housing and Urban Development supports this view but
we have not examined the field office structures in all federal
agencies.
IMPLEMENTATION
----------------------------------------------------- Chapter 25:2.3.3
Not Implemented--Action Taken. The PMC has established a working
group that includes representatives from agencies with major domestic
field office structures. Agencies have been asked to provide the
working group with a list of the field offices in their agencies that
could be closed. The working group is expected to forward a
consolidated list to the PMC so that the PMC can submit a list to
Congress by March 1995 (as called for by the NPR recommendation).
The PMC Working Group is also working on recommendations for
alternative approaches to the present field structure that would
reduce organizational barriers across agencies.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 25:2.3.4
Government Management Issues (GAO/OCG-93-3TR, Dec. 1992).
U.S. Department of Agriculture: Overhauling the Farm Agencies'
Field Structure (GAO/T-RCED-92-87, July 30, 1992).
Department of Agriculture: Restructuring Will Impact Farm Service
Agencies' Automation Plans and Programs (GAO/T-IMTEC-92-22, July 30,
1992).
HUD Reforms: Progress Made Since the HUD Scandals but Much Work
Remains (GAO/RCED-92-46, Jan. 31, 1992).
U.S. Department of Agriculture: Revitalizing Structure, Systems,
and Strategies (GAO/RCED-91-168, Sept. 3, 1991).
U.S. Department of Agriculture: Farm Agencies' Field Structure
Needs Major Overhaul (GAO/RCED-91-9, Jan. 29, 1991).
Increasing the Department of Housing and Urban Development's
Effectiveness Through Improved Management (GAO/RCED-84-9, Jan. 10,
1984).
ORG04: THE PRESIDENT SHOULD
REQUEST AUTHORITY TO
REORGANIZE AGENCIES
------------------------------------------------------- Chapter 25:2.4
Congress should restore to the President the authority to restructure
the executive branch.
ACTION ITEM
----------------------------------------------------- Chapter 25:2.4.1
Legislation should be enacted to grant the President reorganization
authority.
GAO COMMENTS
----------------------------------------------------- Chapter 25:2.4.2
Insufficient Information. There are a number of different ways in
which the authority to restructure could be granted to the President.
In the past, Congress has usually had a significant role in the
review and approval of executive branch reorganization proposals,
even within the context of the type of presidential authority
suggested here. We can offer more detailed commentary when a
definition of these reorganization powers and a proposed
reorganization plan are made available.
IMPLEMENTATION
----------------------------------------------------- Chapter 25:2.4.3
Not Implemented--No Action Taken. The President has not requested
authority to restructure the executive branch.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 25:2.4.4
None.
ORG05: SPONSOR THREE OR
MORE CROSS-DEPARTMENTAL
INITIATIVES ADDRESSING
COMMON ISSUES OR CUSTOMERS
------------------------------------------------------- Chapter 25:2.5
The President's Management Council should identify and sponsor three
or more cross-departmental initiatives in areas such as illegal
immigration, debt collection, and the problems of the homeless.
ACTION ITEM
----------------------------------------------------- Chapter 25:2.5.1
Initiate three or more cross-agency efforts to improve service
delivery or policies addressing common issues or customers.
GAO COMMENTS
----------------------------------------------------- Chapter 25:2.5.2
Generally Agree. The use of the President's Management Council (PMC)
to address problems or objectives that cut across departments should
be a useful mechanism to obtain multi-agency agreement on difficult
issues. This would be especially desirable in those areas where
interagency cooperation has proven difficult in the past.
IMPLEMENTATION
----------------------------------------------------- Chapter 25:2.5.3
Fully Implemented. The PMC has sponsored several ongoing initiatives
to examine issues and take actions that cut across individual
departments or agencies. According to an OMB official, these include
electronic commerce, civil service reform, streamlining the
government, and field office restructuring. The PMC also helped in
the passage of the buy-out legislation affecting most executive
departments.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 25:2.5.4
Government Management Issues (GAO/OCG-93-3TR, Dec. 1992).
ORG06: IDENTIFY AND CHANGE
LEGISLATIVE BARRIERS TO
CROSS-ORGANIZATIONAL
COOPERATION
------------------------------------------------------- Chapter 25:2.6
As cross-organizational collaborations become an integral part of
government operations, barriers to ready collaboration and funding
should be removed.
ACTION ITEM
----------------------------------------------------- Chapter 25:2.6.1
Identify restrictive regulations and laws that are barriers to
cross-organizational cooperation and develop legislative proposals to
eliminate them.
GAO COMMENTS
----------------------------------------------------- Chapter 25:2.6.2
Generally Agree. We generally agree that legislative barriers should
be removed whenever appropriate to facilitate cross-organizational
cooperation. However, elimination of some of the specific statutes
NPR cited in their accompanying report could have consequences other
than the elimination of barriers to cooperation. For example, a
long-standing restriction contained in the Treasury, Postal Service,
and General Government Appropriations Acts (the "anti-pass-the-hat"
provisions) prevents interagency financing of boards, commissions,
councils, or other similar groups without specific statutory
approval. Removal of this type of prohibition would significantly
alter Congress' ability to control the use of appropriated funds.
Before removing statutory barriers to cross-organizational
cooperation, the intended purposes of the restrictions should be
considered to determine if the negative consequences of removing them
would outweigh the benefits that would be achieved. Also, it is
unclear why the Intergovernmental Personnel Act of 1970, which was
intended to improve federal-state-local government cooperation, was
viewed by NPR in the accompanying report as a barrier to
cross-organizational cooperation.
IMPLEMENTATION
----------------------------------------------------- Chapter 25:2.6.3
Not Implemented--Action Taken. In its accompanying report, NPR
identified four provisions that it believed inhibit
interorganizational cooperation and customer focus. In the fiscal
year 1995 budget, the President proposed the removal of one of these
provisions (in the annual Treasury, Postal Service, and General
Government Appropriations Act) that prohibits the funding of
interagency organizations without congressional action. However,
this provision was included in the fiscal year 1995 Treasury/Postal
appropriation bill as passed by Congress and signed by the President
on September 30, 1994. No bills have been introduced to change the
other provisions NPR identified as barriers to interorganizational
cooperation and we are not aware of any other actions taken to change
them.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 25:2.6.4
None.
IMPROVING CUSTOMER SERVICES (ICS)
=========================================================== Chapter 26
OVERALL SUMMARY
--------------------------------------------------------- Chapter 26:1
The administration substantially implemented the NPR's recommendation
to establish an overall policy for providing quality services to the
public by issuing Executive Order 12862 "Setting Customer Service
Standards" (September 1993). The order required all agencies that
provided services directly to the public to, among other things,
survey customers, establish service quality standards, measure
performance against the standards, and address customer complaints.
According to an NPR official and the NPR report Putting Customers
First: Standards for Serving the American People, many agencies had
surveyed their customers about their service needs and established
standards for service delivery. The NPR official said that the next
step for agencies will be to measure their performance against the
standards and report the results to the public. The official could
not verify that all agencies that provided services directly to the
public had initiated customer service programs. However, the
official said that NPR had coordinated with OMB to identify agencies
with major service delivery programs.
In response to the NPR's agency-specific recommendations, the Social
Security Administration (SSA), the Internal Revenue Service (IRS),
and the Postal Service each had made progress. SSA surveyed its
customers and posted service standards in each of its field offices.
The SSA had plans to update its strategic plan based on its customer
survey results. The IRS published customer service standards and
planned to post these standards in field locations and include the
standards in its January 1995 mailing to taxpayers. The IRS also
worked to increase the electronic transmission of refund data to the
Financial Management Service (FMS) to speed up the payment of tax
refunds. Postal Service officials said that 75 percent of its post
offices had posted the 5-minute wait standard. They also said that
they encouraged post offices to display and promote the local
telephone number for the 24-hour information line using brochures or
other means. They said they were still planning how to display their
first-class mail delivery standards. However, it should be noted
that these recommendations involve publishing or displaying
performance standards, not taking action to meet those standards.
Officials in OMB's Office of Information and Regulatory Affairs
(OIRA) said they streamlined the approval process for over 20
agencies that sought to conduct voluntary surveys of their customers.
OIRA officials said that under the streamlined process, OIRA reviewed
and acted on agencies' applications for generic classes of voluntary
customer surveys within 2 weeks compared to up to 90 days under the
old process.
GAO CONTACT
------------------------------------------------------- Chapter 26:1.1
William M. Hunt, Director, Federal Management Issues, General
Government Division, (202) 512-8676.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 26:2
ICS01: CREATE
CUSTOMER-DRIVEN PROGRAMS IN
ALL DEPARTMENTS AND AGENCIES
THAT PROVIDE SERVICES
DIRECTLY TO THE PUBLIC
------------------------------------------------------- Chapter 26:2.1
Establish an overall policy for quality of federal services delivered
to the public and initiate customer service programs in all agencies
that provide services directly to the public.
ACTION ITEM
----------------------------------------------------- Chapter 26:2.1.1
Establish an overall policy for the quality of federal services
delivered to the public, and initiate customer service programs in
all agencies that provide services directly to the public.
GAO COMMENTS
----------------------------------------------------- Chapter 26:2.1.2
Agree. We strongly advocate the creation of such a policy, which
could foster good public relations and timely service to citizens.
We have recommended that a governmentwide focus on citizen's needs be
the foundation for the government's management and reorganization.
Further, we have supported a customer-oriented approach in individual
federal agencies. Also, we have suggested incorporating the needs of
the American public in developing information technology strategies.
It should be noted that many government services are provided to the
public through third parties, such as housing administrations or
medical insurance providers. Our ongoing work suggests that it may
be appropriate to include requirements for ensuring or measuring
customer service in the contracts or agreements with such third
parties. A pertinent consideration in this regard is whether
additional government funds would be needed if this were done.
IMPLEMENTATION
----------------------------------------------------- Chapter 26:2.1.3
Partially Implemented. Executive Order 12862 established an overall
policy for the quality of federal services to the public. The
executive order required that all agencies that provided significant
services directly to the public should strive to provide customer
service equal to "the best in the business."
Many federal agencies that provide services directly to the public
have initiated customer service programs. According to an NPR
official, 152 federal agencies published more than 1,500 customer
service standards. NPR published these standards in the report
Putting Customers First: Standards for Serving the American People.
These agencies also published short, easy-to-read brochures that
described the service standards customers could expect. The official
said that nearly all of the customer service standards resulted from
customer input obtained through surveys, focus groups, discussion
groups, or complaint systems. The official could not verify that all
agencies that provided services directly to the public had initiated
customer service programs. However, the official said that NPR staff
had worked with agencies and with OMB to ensure that most major
programs had been covered.
The NPR official said that meeting all the requirements of Executive
Order 12682 will take time but that agencies had made a good start by
publishing their standards. The official said that the next step
will be for agencies to measure their performance against these
standards and to align their management systems to support a customer
focus.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 26:2.1.4
Partnerships: Customer-Supplier Relationships Can Be Improved
Through Partnering (GAO/NSIAD-94-173, July 19, 1994).
National Archives: A More Systematic Customer Focus Needed
(GAO/GGD-94-3, Oct. 14, 1993).
Improving Government: Need to Reexamine Organization and Performance
(GAO/T-GGD-93-9, Mar. 11, 1993).
U.S. Postal Service: Tracking Customer Satisfaction in a
Competitive Environment (GAO/GGD-93-4, Nov. 12, 1992).
OPM Revolving Fund: Benchmarking Could Aid OPM's Efforts to Improve
Customer Service (GAO/GGD-92-18, Jan. 21, 1992).
Office of Personnel Management: Better Performance Information
Needed (GAO/GGD-90-44, Feb. 7, 1990).
Meeting the Government's Technology Challenge: Results of a GAO
Symposium (GAO/IMTEC-90-23, Feb. 1990).
ICS02: CUSTOMER SERVICE
PERFORMANCE
STANDARDS--INTERNAL REVENUE
SERVICE
------------------------------------------------------- Chapter 26:2.2
As part of its participation in NPR, the Internal Revenue Service is
publishing customer service performance standards. To speed the
delivery of taxpayer refunds, the Secretary of the Treasury should
delegate disbursing authority to IRS in 1993 and future tax seasons.
ACTION ITEMS
----------------------------------------------------- Chapter 26:2.2.1
1. As part of its participation in the National Performance Review,
IRS should publish customer service performance standards, to include
the following examples.
-- 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.
-- Our goal is to resolve your account inquires 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.
-- When you provide sufficient and correct information to an IRS
tax assistor and get an incorrect answer, we will cancel related
penalties.
-- 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.
2. The Secretary of the Treasury should delegate disbursing
authority to IRS for refunds made using electronic funds transfer and
should, for all other disbursements, expedite efforts to transmit
refund information electronically between IRS and FMS.
GAO COMMENTS
----------------------------------------------------- Chapter 26:2.2.2
Insufficient Information. While we agree with the intent of
publishing customer performance standards and of getting refunds to
taxpayers in a timely manner, we are unsure whether delegation of
disbursing authority to IRS is an appropriate means to that end. We
would have to know more about the costs and implications of such a
change.
IMPLEMENTATION
----------------------------------------------------- Chapter 26:2.2.3
Partially Implemented. According to IRS officials, IRS has expanded
the customer service standards listed in the NPR accompanying report
on improving customer service from four to eight, and will publish
the standards in the tax packages mailed to taxpayers in January
1995. The eight standards were included in the IRS Customer Service
Plan, published in September 1994, and were to be displayed on a
poster wherever possible in IRS offices and volunteer assistance
sites. A communications strategy is being developed to provide news
releases and fact sheets publicizing and explaining the standards.
Treasury Department officials said the IRS and the Treasury
Department have agreed that the Treasury Department should not
delegate disbursing authority to the IRS for refunds made using
electronic funds transfer. The FMS within the Treasury Department
currently provides the service of issuing both electronic and paper
refunds to taxpayers on behalf of the IRS because the IRS does not
have the resources to provide this service. FMS officials said that
because they provide the service of obtaining funds from the Federal
Reserve Bank and issuing payments to individuals for many federal
agencies, they can provide this service more efficiently than could
any individual agency. Beyond efficiency concerns, FMS officials
said that individual agencies do not want the responsibility of
certifying that the correct amount of money is issued to the correct
recipient. FMS officials also said that the Federal Reserve Bank
prefers to do business with one intermediary, such as the FMS, rather
than with many individual agencies.
The IRS and the FMS have taken steps to speed up the electronic
transmission of refund information from the IRS to the FMS to replace
the practice of transmitting this data on tapes that have to be
physically delivered. IRS and FMS officials said that this is an
ongoing effort and could not provide a precise timeline as to when it
would be completed.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 26:2.2.4
None.
ICS03: CUSTOMER SERVICE
PERFORMANCE
STANDARDS--SOCIAL SECURITY
ADMINISTRATION
------------------------------------------------------- Chapter 26:2.3
As part of its participation in NPR, the Social Security
Administration is publishing customer service performance standards.
SSA will also obtain customer opinions on all the goals and
objectives of their strategic plan, using that input to revise the
goals and objectives as needed, set priorities, and establish interim
objectives.
ACTION ITEMS
----------------------------------------------------- Chapter 26:2.3.1
1. As part of its participation in the National Performance Review,
SSA should publish nationally and post in each of its offices
performance standards for customer service.
-- You will be treated with courtesy every time you contact us.
-- We will provide you with all the information you need in order
to understand SSA programs, including your own potential for
benefits.
-- We will also provide you with information about other social
service programs that may help you.
-- When you call our 1-800 service for information or help, you
will reach us on the first call.
2. In addition, SSA should obtain customer opinions on all the goals
and objectives of the strategic plan, using that input to revise the
goals and objectives as needed, set priorities, and establish interim
objectives.
GAO COMMENTS
----------------------------------------------------- Chapter 26:2.3.2
Agree. We endorse SSA's efforts to improve its customer service
performance. We have recently completed audit work suggesting that
SSA put forth sustained effort to improve management and future
plans.
IMPLEMENTATION
----------------------------------------------------- Chapter 26:2.3.3
Partially Implemented. In February 1994, SSA instructed all of its
field offices to post the recommended customer service standards on
signs in both English and Spanish in a prominent, visible location.
In September 1994, SSA published updated customer service standards.
These standards were based on the results of SSA's customer survey
activities, including focus groups, direct surveys, and comment
cards.
SSA officials said that SSA used 26,000 customer comment cards as the
primary means to survey its customers' opinions on the goals and
objectives in its strategic plan. By July 1994, SSA had received
11,355 responses. The questions on the comment cards asked the
respondent to fill in blanks with the amount of time that would
represent good service for different types of SSA services, such as
receiving a decision after applying for retirement benefits. SSA
officials said the results of the survey were to be used to update
SSA's strategic plan by the end of 1995.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 26:2.3.4
Social Security: Sustained Effort Needed to Improve Management and
Prepare for the Future (GAO/HRD-94-22, Oct. 27, 1993).
Social Security: Need to Improve Post-Entitlement Service to the
Public (GAO/HRD-93-21, May 7, 1993).
Social Security: Telephone Busy Signal Rates at Local SSA Field
Offices (GAO/HRD-93-49, Mar. 4, 1993).
Social Security: Measure of Telephone Service Accuracy Can Be
Improved (GAO/HRD-91-69, Aug. 30, 1991).
Social Security Downsizing: Significant Savings But Some Service
Quality and Operational Problems (GAO/HRD-91-63, Mar. 19, 1991).
Social Security: Little Overall Change in Telephone Accessibility
Between 1985 and 1988 (GAO/HRD-88-129, Sept. 15, 1988).
Social Security: Staff Reductions and Service Quality
(GAO/HRD-88-97, May 13, 1988).
ICS04: CUSTOMER SERVICE
PERFORMANCE
STANDARDS--POSTAL SERVICE
------------------------------------------------------- Chapter 26:2.4
As part of its participation in NPR, the U.S. Postal Service will
expand its plans to display customer service standards in post office
retail lobbies.
ACTION ITEM
----------------------------------------------------- Chapter 26:2.4.1
As part of its participation in the National Performance Review, the
U.S. Postal Service should expand its plans to display the following
standards in post office lobbies:
You can expect first-class mail delivered anywhere in the U.S. in
3 days, your local mail overnight;
you will receive counter service within 5 minutes;
and you can get postal information 24 hours a day by calling the
following local number: (appropriate local numbers will be
used).
GAO COMMENTS
----------------------------------------------------- Chapter 26:2.4.2
Agree. We fully support the Postal Service's current initiative to
develop standards to govern the provision of customer services and
agree that those standards should be fully disclosed to the public.
IMPLEMENTATION
----------------------------------------------------- Chapter 26:2.4.3
Partially Implemented. The Postal Service has made progress in
displaying the three service standards.
According to Postal Service officials, although The Postal Service
has had internal service targets for the delivery of first class mail
for over 20 years, these standards had not been prominently displayed
to postal customers. An initiative to put large geographic maps
depicting overnight, 2, and 3-day service areas is in the
developmental stage. The Postal Service is planning initially to
display these maps in the post offices, stations, and branches of the
96 cities currently covered by the External First-Class Measurement
System--an independent customer satisfaction survey.
Officials told us that the Postal Service also is in the process of
displaying the standard that customers will receive service at post
office counters within 5 minutes. Postmasters are working toward
achieving this standard and are posting the standard in each office
where it has been attained. Postal Service officials said that to
date 75 percent of main offices, stations, and branches had posted
this standard.
Officials told us that the Postal Answer Line (PAL), an automated
24-hour information source, is available in 81 major metropolitan
areas, serving over 110 million postal customers. The Postal Service
is planning to expand this system to include customers with rotary
telephones and customers who are hearing impaired. Postal Service
officials said that current policies call for post offices to
publicize the PAL number where it is available in the telephone book
and in brochures placed in lobbies.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 26:2.4.4
U.S. Postal Service: Tracking Customer Satisfaction in a
Competitive Environment (GAO/GGD-93-4, Nov. 12, 1992).
ICS05: STREAMLINE WAYS TO
COLLECT CUSTOMER
SATISFACTION AND OTHER
INFORMATION FROM THE PUBLIC
------------------------------------------------------- Chapter 26:2.5
For voluntary information collection requests directed at customers,
OMB will delegate authority to approve such requests if departments
certify that they will fully comply with Paperwork Reduction Act
(PRA) requirements. OMB will also clarify rules on the use of focus
groups and streamline renewals of previously approved survey
requests.
ACTION ITEMS
----------------------------------------------------- Chapter 26:2.5.1
1. For voluntary customer surveys, the Office of Management and
Budget will delegate its survey approval authority under the
Paperwork Reduction Act to departments that are able to comply with
the act.
2. The Administrator of OIRA should issue guidance on focus groups,
specifically establishing under what circumstances group discussion
activities would be excluded from OIRA review.
3. The Administrator of OIRA should greatly simplify and speed
renewal of previously approved information collection requests (ICR)
when the questions asked and the recipients of the ICR are unchanged.
GAO COMMENTS
----------------------------------------------------- Chapter 26:2.5.2
Generally Agree. We agree with the thrust of this recommendation to
streamline the collection of customer satisfaction information.
However, OMB will need to continue to coordinate agency voluntary
customer surveys to minimize duplicate requests for information from
citizens.
IMPLEMENTATION
----------------------------------------------------- Chapter 26:2.5.3
Partially Implemented. The directors of OMB and OIRA issued
memoranda to department and agency heads and to OIRA Branch Chiefs
and Desk Officers outlining initiatives to facilitate the clearance
of customer surveys.
1. According to OIRA officials and memoranda, OIRA has not delegated
its survey approval authority under the Paperwork Reduction Act to
departments that are able to comply with the act. Instead, OIRA has
implemented a streamlined process for providing "generic clearances"
to classes of voluntary customer survey instruments proposed by
agencies. For a survey to be voluntary it must be perceived as
voluntary by the recipients. To obtain the generic clearance,
agencies must provide OIRA with general details about the surveys it
plans to do and certify that the surveys will comply with the
requirements of the Paperwork Reduction Act. OIRA has committed to
review agency requests for generic clearances within 2 weeks. OIRA
grants the clearances for a 3 year period. However, as an agency
issues a survey covered by the generic clearance, it must provide to
OMB a copy of the survey, a description of how the survey will be
used, and an estimate of the total hours recipients will spend
completing the survey. OIRA officials said that during the past year
more than 20 departments and agencies received generic clearances
within two weeks compared to up to 90 days under the old process.
Although OIRA initially excluded regulatory agencies from the new
process, OIRA nevertheless has attempted to streamline the approval
of customer surveys by regulatory agencies.
2. OMB issued guidance stating that focus groups fall within the
coverage of PRA and require OMB clearance, but that a program of
focus groups designed to elicit customer concerns would be a prime
candidate for a generic clearance.
3. OIRA officials said that they are working to simplify and speed
the renewal of ICRs when the questions asked and the recipients of
the ICR are unchanged. For example, OIRA has expressed a willingness
to shorten the time it reserves for public comment on ICR renewals
because they are generally uncontroversial.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 26:2.5.4
Paperwork Reduction: Mixed Results on Agency Decision Processes and
Data Availability (GAO/PEMD 89-20, Sept. 7, 1989).
MISSION-DRIVEN, RESULTS-ORIENTED
BUDGETING (BGT)
=========================================================== Chapter 27
OVERALL SUMMARY
--------------------------------------------------------- Chapter 27:1
Although management reform efforts (e.g., GPRA and performance
agreements) have been partially implemented, action on
recommendations specific to the budget process have been mixed.
Congress has in several cases already addressed recommendations
through specific agency appropriations requests, (e.g., multiyear and
no-year appropriations, budget account restructuring, and roll over
of unobligated balances). However, recommendations that call for
governmentwide authorities or seek to change the nature or extent of
legislative oversight have not been accepted, (e.g., biennial
appropriations and elimination of earmarkings). Other
recommendations, such as expedited rescission authority, biennial
budget resolution, and biennial appropriations processes have been
made and are awaiting final congressional action. Actions to revise
executive branch internal processes have been taken, notably the
executive budget formulation, although some pre-date NPR, (e.g.,
simplification of the apportionment process). Finally, some
recommendations lack a strategy for implementation, (e.g., eliminate
FTE controls and manage on the basis of operating costs).
GAO CONTACT
------------------------------------------------------- Chapter 27:1.1
Susan J. Irving, Associate Director, Budget Issues, Accounting and
Information Management Division, (202) 512-9142.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 27:2
BGT01: DEVELOP PERFORMANCE
AGREEMENTS WITH SENIOR
POLITICAL LEADERSHIP THAT
REFLECT ORGANIZATIONAL AND
POLICY GOALS
------------------------------------------------------- Chapter 27:2.1
The President should develop performance agreements with agency
heads, starting with the top two dozen. Agency heads should also use
performance agreements within their agency to forge an effective team
committed to achieving organizational goals and objectives.
ACTION ITEMS
----------------------------------------------------- Chapter 27:2.1.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 27:2.1.2
Agree. Developing such agreements can help focus efforts on key
priorities in each agency and help achieve the results-oriented
environment that we believe is needed to improve effective delivery
of government programs. It remains unclear, however, on how these
agreements would operate or what Congress' role would be. Some
members of Congress have expressed concern about agreements struck
without congressional input.
IMPLEMENTATION
----------------------------------------------------- Chapter 27:2.1.3
Partially Implemented. Eight agency heads had signed agreements with
the President. These agencies were HHS, HUD, Interior, Labor, SBA,
GSA, VA, and Transportation. According to an NPR official, all other
cabinet level departments had prepared draft agreements.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 27:2.1.4
Government Management Issues (GAO/OCG-93-3TR, Dec. 1992).
BGT02: EFFECTIVELY
IMPLEMENT THE GOVERNMENT
PERFORMANCE AND RESULTS ACT
OF 1993
------------------------------------------------------- Chapter 27:2.2
Accelerate planning and measurement efforts to improve performance in
every federal program and agency. Designate as pilots under the act
several multi-agency efforts that have related programs and
functions. Develop common measures and data collection efforts for
crosscutting issues. Clarify the goals and objectives of federal
programs. Incorporate performance objectives and results as key
elements in budget and management reviews.
ACTION ITEMS
----------------------------------------------------- Chapter 27:2.2.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 27:2.2.2
Agree. We endorse the importance of agencies and Congress reaching
agreement on (1) agency mission and realistic, outcome-oriented
goals, (2) developing measures of performance in terms of those
goals, and (3) publicly reporting results. We believe that this
management framework--which is set forth in GPRA--could serve as the
foundation for a broad range of efforts to improve federal
management. Providing managers with the tools and incentives they
need to achieve their missions will be critical if results-oriented
management is to increase the effectiveness of federal programs.
However, coming to agreement on outcome-oriented goals and objectives
and indicators of performance will be difficult and take time. We
strongly endorse the need for agencies to begin preparing now for
implementation of GPRA by defining mission statements, developing
strategic plans, and identifying and developing performance measures.
The success of GPRA will depend in part, however, on achieving the
goals of the CFO legislation for generating reliable financial
information and accurate operating cost data.
We also endorse designating as pilots several multi-agency efforts
with related programs and functions, and development of common
measures and data collection efforts for crosscutting issues. In
this way, various implementation strategies can be explored and
lessons can be learned about best practices in forging critical
crosscutting linkages across the federal government and with state
and local governments as well.
IMPLEMENTATION
----------------------------------------------------- Chapter 27:2.2.3
Partially Implemented. GPRA requires that the Office of Management
and Budget (OMB) designate at least 10 agencies as pilot projects in
performance measurement for fiscal years 1994, 1995, and 1996.
However, as an indication of the widespread interest in
results-oriented management, more than 70 pilots in 27 departments
and agencies were designated for the 3-year performance measurement
pilots. These pilot projects range in size from small programs to
entire agencies, including the Internal Revenue Service, the Social
Security Administration, and the Defense Logistics Agency.
OMB reviewed more than 50 performance plans prepared by designated
GPRA pilots for fiscal year 1994 and provided feedback to agencies to
improve the fiscal year 1995 plans. OMB, however, has not
aggressively sought to develop common measures, a position we
generally endorse as appropriate during a pilot phase. With agencies
in the leadership role, OMB gives the agencies substantial discretion
in defining goals and performance indicators and in carrying out
their responsibilities under the act.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 27:2.2.4
Tax Policy: Tax Expenditures Deserve More Scrutiny
(GAO/GGD/AIMD-94-122, June 3, 1994).
Management Reforms: Examples of Public and Private Innovations to
Improve Service Delivery (GAO/AIMD/GGD-94-90BR, Feb. 11, 1994).
Improving Government: Measuring Performance and Acting on Proposals
for Change (GAO/T-GGD-93-14, Mar. 23, 1993).
Budget Issues: Financial Reporting to Better Support Decision-making
(GAO/AFMD-93-22, June 1993).
Improving Government: Need to Reexamine Organization and Performance
(GAO/T-GGD-93-9, Mar. 11, 1993).
Performance Budgeting: State Experiences and Implications for the
Federal Government (GAO/AFMD-93-41, Feb. 17, 1993).
BGT03: EMPOWER MANAGERS TO
PERFORM
------------------------------------------------------- Chapter 27:2.3
Restructure appropriations accounts to reduce overitemization and to
align them with programs. Ensure that direct operating costs can be
identified. Reduce overly detailed restrictions and earmarks in
appropriations and report language. Simplify the apportionment
process. Reduce the excessive administrative subdivision of funds in
financial operating plans.
ACTION ITEMS
----------------------------------------------------- Chapter 27:2.3.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 27:2.3.2
Insufficient Information. The degree of overitemization is a matter
of interpretation and political judgment, potentially affecting the
balance of power between the legislative and executive branches.
Changing the account structure is not simply a matter of management
flexibility. An examination of the structure and number of
appropriation accounts, however, could provide useful information for
consideration of changes in the current structure and how such
changes would affect oversight. It also will be necessary--although
conceptually difficult--to identify direct operating costs if the
focus of government management is to be on cost-effective
performance. Harmonizing this approach with existing program
definitions and budgetary account structures will present difficult
problems, which the administration and Congress will need to resolve.
IMPLEMENTATION
----------------------------------------------------- Chapter 27:2.3.3
Insufficient Information. OMB has established a working group to
study better ways to align program inputs with outputs through budget
account restructuring. According to OMB, however, defining or
identifying operating costs is not part of its task. As a result of
its work, OMB's Circular A-11 requires agencies in their
justification materials to show the relationship between major
programs and budget account structures where they do not coincide.
The agency may also describe in narrative statements the total costs
and sources of funding for programs when the total financing needed
to conduct a major program is not contained within a single budget
account.
The NPR's September 1994 Status Report did not provide details on the
approximately one-third of the agencies that reported that they had
(1) restructured their budget accounts to reduce over-itemization and
(2) identified direct operating costs. An NPR official said that the
NPR relied on what agencies reported and did not verify the
information or how it was derived.
OMB staff have been advised to work with the agencies to respond to
concerns about the apportionment process. While no formal guidance
has been issued, OMB for several years has offered some agencies a
simplified apportionment approval process--letter apportioning--which
reduces paperwork and gives agencies increased control over the rate
in which they obligate funds.
According to OMB, agencies have the lead in (1) identifying and
proposing changes to earmarks and restrictions in appropriations
language and (2) reducing the complexity of their financial operating
plans. OMB officials did not provide any evidence or examples of
agency action.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 27:2.3.4
Budget Issues: Assessing Executive Order 12837 on Reducing
Administrative Expenses (GAO/AIMD-94-15, Nov. 17, 1993).
Budget Issues: Financial Reporting to Better Support Decision-making
(GAO/AFMD-93-22, June 1993).
BGT04: ELIMINATE EMPLOYMENT
CEILINGS AND FLOORS BY
MANAGING WITHIN BUDGET
------------------------------------------------------- Chapter 27:2.4
Budget and manage on the basis of operating costs rather than
full-time equivalents or employment ceilings. Request Congress to
remove FTE floors.
ACTION ITEMS
----------------------------------------------------- Chapter 27:2.4.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 27:2.4.2
Insufficient Information. This recommendation seeks to change the
nature--and perhaps the extent--of legislative oversight. Pending
development of alternatives, employment ceilings and floors are both
means by which Congress expresses its intentions on priorities.
Ceilings seek to affect total personnel resources whereas floors are
directed at the allocation of resources. As NPR recognizes,
implementation of this proposal is currently not possible because the
Federal Workforce Restructuring Act of 1994 mandates reductions in
the size of the federal workforce using FTEs as the measure.
Additionally, there are conceptual and practical difficulties
involved in defining operating costs. The Federal Accounting
Standards Advisory Board is planning to issue an exposure draft on
management cost standards in the fall of 1994, with final recommended
standards planned to be released in Spring 1995.
It has consistently been GAO's position that workforce requirements
and personnel management decisions should be based on appropriate and
credible workforce planning systems and procedures. During times of
increasing fiscal constraints, it is even more important that
agencies develop well conceived implementation plans to achieve the
agreed upon reductions in federal workforce levels to minimize the
impact on agency and program effectiveness. However, until a tenable
alternative is developed, monitoring by FTEs will continue to be
necessary.
IMPLEMENTATION
----------------------------------------------------- Chapter 27:2.4.3
Not Implemented--No Action Taken. No action has been taken to
develop an alternative to FTEs for management of and budgeting for
the federal workforce.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 27:2.4.4
Improving Government: GAO's Views on H.R. 3400 Management
Initiatives (GAO/T-AIMD/GGD-94-97, Feb. 23, 1994).
BGT05: PROVIDE LINE
MANAGERS WITH GREATER
FLEXIBILITY TO ACHIEVE
RESULTS
------------------------------------------------------- Chapter 27:2.5
Identify those appropriations that should be converted to multi- or
no-year status. Permit agencies to roll over 50 percent of their
unobligated year-end balances in annual operating costs to the next
year. Expedite reprogramming of funds within agencies.
ACTION ITEMS
----------------------------------------------------- Chapter 27:2.5.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 27:2.5.2
Insufficient Information. Multiyear availability of funds, where
appropriate, makes sense. The impact of various proposed changes in
the treatment of unobligated funds should be explored.
IMPLEMENTATION
----------------------------------------------------- Chapter 27:2.5.3
Not Implemented--Action Taken. OMB has not identified those
appropriations that should be converted to multi- or no-year status.
Instead, OMB has included guidance in OMB Circular A-11 asking
agencies to consider requesting appropriations with multiyear
availability, particularly for fixed capital assets with long
acquisition cycles.
A general provision in the fiscal year 1995 Treasury, Postal Service,
and General Government Appropriations Act allows agencies covered by
this act to roll over up to 50 percent of unobligated balances for
salaries and expenses accounts to the next fiscal year. However,
pre-approval by the House and Senate Committees on Appropriations is
required prior to expending these funds. A proposal to make this
provision governmentwide was deleted from H.R. 3400--the Government
Reform and Savings Act of 1993--and omitted from the Senate bill, S.
2170.
An OMB official stated that while the agencies are responsible for
expediting reprogramming actions within their agency, there has been
no change in the OMB notification guidance on expediting
reprogramming reviews. OMB Circular A-11, section 12.9 (b), states
that OMB review of reprogrammings may take 5 days or longer depending
on whether the reprogramming was coordinated in advance with OMB.
Agencies may request oral clearance under exceptional circumstances.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 27:2.5.4
Budget Process: Biennial Budgeting for the Federal Government
(GAO/T-AIMD-94-112, Apr. 28, 1994).
Budget Process: Some Reforms Offer Promise (GAO/T-AIMD-94-86, Mar.
2, 1994).
Budget Policy: Biennial Budgeting for the Federal Government
(GAO/T-AIMD-94-4, Oct. 7, 1993).
BGT06: STREAMLINE BUDGET
DEVELOPMENT
------------------------------------------------------- Chapter 27:2.6
Begin the President's budget formulation process with a
mission-driven Executive Budget Resolution process that will replace
hierarchial budget development, delegate more decision making to
agency heads, and promote a collaborative approach to crosscutting
issues. In the process, eliminate multiple requirements for detailed
budget justification materials. Negotiate a reduction in the
detailed budget justification provided to Congress.
ACTION ITEMS
----------------------------------------------------- Chapter 27:2.6.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 27:2.6.2
Insufficient Information. This recommendation addresses the way the
President develops his budget. To the extent that agency budget
preparation is seen to be duplicative, provision of targets to each
agency at the beginning of the process may help.
IMPLEMENTATION
----------------------------------------------------- Chapter 27:2.6.3
Partially Implemented. According to OMB, fiscal year 1995 budget
formulation was a more collaborative process between OMB and the
agencies than in prior years. An OMB official cited meetings with
the President attended by the agency head and OMB to discuss funding
decisions as evidence of this more collaborative process.
Guidance issued in April for the fiscal year 1996 budget set overall
agency levels for discretionary budget authority and FTEs, which OMB
characterized as offering substantial flexibility to agencies within
Budget Enforcement Act limits. OMB Circular A-11, section 10.1,
describes an expanded set of discussions between agencies and OMB for
fiscal year 1996, including identifying major options for the fall
budget review process.
Circular A-11, section 10.4, shows some revision to and elimination
of budget justification requirements. According to OMB, more
comprehensive changes will be considered next year.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 27:2.6.4
None.
BGT07: INSTITUTE BIENNIAL
BUDGETS AND APPROPRIATIONS
------------------------------------------------------- Chapter 27:2.7
Submit a legislative proposal to move from an annual to a biennial
budget submission by the President. Establish biennial budget
resolution and biennial appropriation processes. Evaluate program
effectiveness and refine performance measures in the off-year.
ACTION ITEMS
----------------------------------------------------- Chapter 27:2.7.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 27:2.7.2
Insufficient Information. We support those portions of the biennial
budgeting proposal in the Legislative Reorganization Act of 1994
(H.R. 3801) that relate to multiyear authorizations and biennial
budget resolutions. We have noted that a shift to a biennial
appropriations process is not necessary to provide multiyear funds to
those programs where Congress deems it appropriate, and that Congress
routinely provides such multiyear monies. A shift from an annual to
a biennial appropriations cycle would be a change in the nature--and
perhaps in the degree--of congressional oversight.
IMPLEMENTATION
----------------------------------------------------- Chapter 27:2.7.3
Not Implemented--Action Taken. Legislation to move from annual to
biennial budgeting is pending before Congress. The Committee on
House Administration held hearings July 14, 1994 on H.R. 3801, and
the House Committee on Rules began mark-up of the bill on August 4,
1994. Its companion bill, S. 1824, was reported out by the Senate
Committee on Rules and administration on July 1, 1994. This
legislation provides for biennial budget resolutions but retains the
annual appropriations cycle.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 27:2.7.4
Budget Process: Biennial Budgeting for the Federal Government
(GAO/T-AIMD-94-112, Apr. 28, 1994). Budget Process: Some Reforms
Offer Promise (GAO/T-AIMD-94-86, Mar. 2, 1994).
Budget Policy: Biennial Budgeting for the Federal Government
(GAO/T-AIMD-94-4, Oct. 7, 1993).
BGT08: SEEK ENACTMENT OF
EXPEDITED RESCISSION
PROCEDURES
------------------------------------------------------- Chapter 27:2.8
Pursue negotiations with the leadership of the House and Senate to
gain enactment of expedited rescission authority.
ACTION ITEMS
----------------------------------------------------- Chapter 27:2.8.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 27:2.8.2
Insufficient Information. In two recent testimonies we concluded
that current rescission procedures were working as originally
intended by Congress. Rescissions can only have a relatively small
influence on budgetary totals and deficits of today's magnitude.
Therefore, in our testimonies we concluded that any change in the
current rescission procedure should be viewed as a question of the
relative balance of power between the President and Congress.
IMPLEMENTATION
----------------------------------------------------- Chapter 27:2.8.3
Not Implemented--Action Taken. H.R. 1578, the Expedited Rescissions
Act of 1993, passed the House on April 29, 1993. H.R. 4600, the
Expedited Rescissions Act of 1994, passed the House on July 14, 1994.
The Senate Budget Committee completed hearings on H.R. 4600 on Oct.
5, 1994.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 27:2.8.4
Budget Process: Use and Impact of Rescission Procedures
(GAO/T-OCG-93-5, Mar. 10, 1993).
Budget Process: Use and Impact of Rescission Procedures
(GAO/T-OCG-92-5, Sept. 25, 1992).
IMPROVING FINANCIAL MANAGEMENT
(FM)
=========================================================== Chapter 28
OVERALL SUMMARY
--------------------------------------------------------- Chapter 28:1
Of the 13 NPR financial management recommendations, 5 have been
partially implemented and action has been taken on the remaining 8.
Overall, these recommendations are in line with the thrust of the
financial systems and information improvement actions our reports and
testimonies have outlined and, if properly implemented, could result
in strengthened government accountability.
Reliable financial reports that are easy to understand can help
establish desperately needed accountability and provide the
high-level credible information needed to help restore public
confidence in government. The enactment of the Government Management
Reform Act of 1994, Public Law 103-356, underscores the government's
efforts to (1) establish accountability within federal agencies, (2)
provide decisionmakers the tools to better understand the issues
government faces as well as the implications of the decisions it
makes, and (3) better manage scarce resources once those decisions
are made. The financial statements of all executive agencies and
activities required by this act will provide a wealth of critical
information to Congress and the executive branch in assessing the
government's financial status and making informed decisions.
GAO CONTACT
------------------------------------------------------- Chapter 28:1.1
Jeffrey C. Steinhoff, Director, Planning and Reporting, Accounting
and Information Management Division, (202) 512-9454.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 28:2
FM01: ACCELERATE THE
ISSUANCE OF FEDERAL
ACCOUNTING STANDARDS
------------------------------------------------------- Chapter 28:2.1
Issue a comprehensive set of federal financial accounting standards
within 18 months. If all standards are not issued under the present
advisory board structure, create an independent federal financial
accounting standards board.
ACTION ITEMS
----------------------------------------------------- Chapter 28:2.1.1
1. Issue a comprehensive set of federal financial accounting
standards within 18 months.
2. Create an independent federal financial accounting standards
board with the power to develop, publish, and interpret accounting
principles and standards for the federal government, if a
comprehensive set of accounting standards is not issued within 18
months.
3. Dedicate staff to the Federal Accounting Standards Advisory Board
(FASAB) to develop a high-level set of cost accounting standards.
GAO COMMENTS
----------------------------------------------------- Chapter 28:2.1.2
Generally Agree. We fully support the accelerated issuance of
federal agency accounting standards. We would not, at this time,
though, endorse the creation of an independent standards setting
board. We have dedicated staff to FASAB to develop a high-level set
of cost accounting standards.
IMPLEMENTATION
----------------------------------------------------- Chapter 28:2.1.3
Partially Implemented. FASAB has recently made significant strides
to accelerate its standard setting process and plans to have a
substantially complete set of federal financial standards by the
March 1995 deadline that NPR established. It has completed one
concept statement and three statements on accounting. It has
published an exposure draft on entity and display (August 1994),
managerial cost accounting (October 1994), and liabilities (November
1994). Other projects are under way to complete a comprehensive set
of accounting standards.
The amount of progress achieved during the next several months will
be telling. The question is not only how quickly FASAB can come to
agreement on the many controversial matters inherent in these
difficult issues, but also what the reactions will be to the exposure
drafts on these issues, which will be circulated widely for comment
after the board has reached agreement.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 28:2.1.4
Financial Management Issues (GAO/OCG-93-4TR, Dec. 1992).
FM02: CLARIFY AND
STRENGTHEN THE FINANCIAL
MANAGEMENT ROLES OF OMB AND
TREASURY
------------------------------------------------------- Chapter 28:2.2
Develop a memorandum of understanding (MOU) to clarify the roles of
OMB and Treasury in financial management. Create a governmentwide
budget and financial information steering group to develop and
provide guidance in implementing an integrated budget and financial
information strategic plan. Shift review of the Financial Management
Service's budget to the OMB Deputy Director for Management.
ACTION ITEMS
----------------------------------------------------- Chapter 28:2.2.1
1. Develop an MOU to clarify central agency roles and
responsibilities for financial management.
2. Develop and publish a strategic plan for improving financial
management.
3. Create a governmentwide budget and financial information steering
group.
4. Develop and publish a definition of an integrated budget and
financial system.
5. Develop an integrated budget and financial information strategic
plan.
GAO COMMENTS
----------------------------------------------------- Chapter 28:2.2.2
Generally Agree. OMB's and Treasury's roles are pivotal to federal
financial management reform; thus, it is essential that their
responsibilities be clearly delineated and they be provided
commensurate resources. Also, we fully support the use of steering
groups, such as the CFO Council and the Joint Financial Management
Improvement Program (JFMIP), to improve financial management
governmentwide. We have not, though, specifically addressed the
issue of shifting the review of Treasury's Financial Management
Service's budget to OMB's Deputy Director for Management.
Since the formulation of this recommendation, OMB has implemented OMB
2000 which will shift some of the financial oversight
responsibilities within OMB. GAO has been requested to review OMB
2000 to determine its impact on, among other things, the oversight of
federal financial management.
IMPLEMENTATION
----------------------------------------------------- Chapter 28:2.2.3
Partially Implemented. While this recommendation has not been fully
implemented, OMB, the CFO Council, and the JFMIP have taken steps
towards achieving it.
We reviewed an April 18, 1994, draft of the MOU and found it does not
include specifics for the roles and functions of Treasury and OMB.
However, according to OMB, they are developing specific examples of
OMB's and Treasury's functions that will be included as attachments.
OMB issued its third Federal Financial Management Status Report and
5-Year Plan in August 1994. The current status report details
milestones for accomplishment of various areas needing attention as
detailed in the CFO Act. Additionally, the CFO Council drafted and
published a financial management vision with goals and strategies for
governmentwide implementation. These strategies, once developed,
should cascade to agency level plans and be supported by specific
agency operating strategies and performance measures that will show
how they are progressing annually toward meeting their goals. It is
important that the next status report address the progress made in
achieving the goals included with the vision statement.
OMB has prepared a draft charter for the governmentwide budget and
financial information steering group and the OMB Deputy Director for
Management has been briefed. Steering group members, however, have
not been named.
The JFMIP issued a Framework for Federal Financial Management Systems
exposure draft document in September 1994. The document sets up a
framework for integrating budget, financial and program information.
A definition of an integrated financial system is included.
High level tasks and major initiatives of the governmentwide
integrated budget and financial information strategic plan are
contained in OMB's latest Federal Financial Management Status Report
and 5-Year Plan, according to OMB. They plan to coordinate those
initiatives with the CFO Council and specific agency initiatives are
to be identified during the upcoming fiscal year 1996 budget process.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 28:2.2.4
Improving Government: Actions Needed to Sustain and Enhance
Management Reforms (GAO/T-OCG-94-1, Jan. 1994).
Financial Management Issues (GAO/OCG-93-4TR, Dec. 1992).
FM03: FULLY INTEGRATE
BUDGET, FINANCIAL AND
PROGRAM INFORMATION
------------------------------------------------------- Chapter 28:2.3
Ensure that agency financial systems are in compliance with a revised
OMB Circular A-127, "Financial Management Systems," by September
1996. Provide interagency funding for the joint development of
financial systems.
ACTION ITEMS
----------------------------------------------------- Chapter 28:2.3.1
1. Ensure that agency financial systems are in compliance with the
revised OMB Circular A-127.
2. Establish an innovation fund for financial systems development.
3. Provide interagency funding mechanisms for joint development
financial systems projects.
4. Establish a clearinghouse of financial systems applications,
cross-servicing, and best practices.
5. Dedicate a core of financial systems personnel to develop cost
accounting systems requirements.
GAO COMMENTS
----------------------------------------------------- Chapter 28:2.3.2
Generally Agree. We strongly endorse the concept of fully
integrating budget, financial, and program information as mandated by
the CFO Act and urge that agency financial systems be in compliance
with OMB Circular A-127. While we have not specifically recommended
that agencies jointly develop financial systems through interagency
funding, we support the concept and have also suggested the
possibility of agencies having standard systems and expanding the use
of cross-servicing arrangements. Wise investments in sorely needed
modern financial systems are critical to the federal government's
improving financial program management.
We believe that existing working capital funds or other types of
revolving funds could be used to fund agency efforts to promote
innovations. Congress has already provided statutory authority to
create budget accounts in all executive departments with the
essential features of the franchise fund proposals contained in
Public Law 103-356. These budget mechanisms are already being used,
in select cases, to upgrade systems, including financial management
systems.
Public Law 103-356 calls for the establishment of a franchise fund
pilot program in six executive agencies. The funds can be used for,
among other things, to acquire automated data processing systems, and
financial management and management information systems. (See FM06
for more on franchise funds. See also FM07 for more on innovation
funds.)
IMPLEMENTATION
----------------------------------------------------- Chapter 28:2.3.3
Not Implemented--Action Taken. While the 24 CFO agencies have
improvements under way, they will not be completed for quite a while.
The need to upgrade the systems is a major point of emphasis in the
CFO Act and has been a major point of concern on our audits.
OMB believes that the franchising fund proposals in Public Law
103-356 will provide an effective interagency funding mechanism for
joint development of financial systems. However, these franchise
funds will not be adequate to cover all of the needed system
development costs. Therefore, OMB is pursuing other initiatives to
set up funding for systems which will also include provisions for
joint agency systems development.
JFMIP is working with the NPR FinanceNet Team to develop and
implement an electronic clearinghouse via Internet. The
clearinghouse will include key financial management laws, standards,
policies, practices, and other guidance from the central agencies
represented on JFMIP as well as content from program agencies.
Current developments and "best practices," when identified, will be
featured. A calendar of scheduled events and activities will be
included. Implementation, which started in September 1994, is taking
place on a phased-in basis as documents are received and placed in
FinanceNet. Some documents are already in the library and others
will be added and updated on a continuing basis. Training on the use
of FinanceNet is under development with training sessions slated to
begin in the fall of 1994.
FASAB has issued the Exposure Draft for cost accounting standards.
Funding for a dedicated core of systems personnel is not available,
according to JFMIP. Therefore, a task force has been formed which
will utilize existing GAO work on cost accounting system
requirements. This work is sufficiently advanced that an exposure
draft for systems requirements to implement the cost accounting
standards is expected to be issued by March 1995.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 28:2.3.4
Financial Audit: Examination of Custom's Fiscal Year 1993 Financial
Statements (GAO/AIMD-94-119, June 15, 1994).
Financial Audit: Examination of IRS' Fiscal Year 1993 Financial
Statements (GAO/AIMD-94-120, June 15, 1994).
Working Capital Funds: Three Agency Perspectives (GAO/AIMD-94-121,
May 20, 1994).
Improving Mission Performance Through Strategic Information
Management and Technology (GAO/AIMD-94-115, May 1994).
Improving Government: GAO's Views on H.R. 3400 Management
Initiatives (GAO/AIMD-94-97T, Feb. 23, 1994).
Budget Issues: A Comparison of Fiscal Year 1992 Budget Estimates and
Actual Results (GAO/AIMD-94-68, Feb. 4, 1994).
Financial Management: Strong Leadership Needed to Improve Army's
Financial Accountability (GAO/AIMD-94-12, Dec. 22, 1993).
Financial Management: Army Industrial Fund Did Not Recover Costs
(GAO/AIMD-94-16, Nov. 26, 1993).
Financial Management: Army Real Property Accounting and Reporting
Weaknesses Impede Management Decision-Making (GAO/AMID-94-9, Nov. 2,
1993).
Financial Management: Army Budgeting, Accounting, and Financial
Management Reporting are Inconsistent (GAO/AIMD-94-10, Oct. 28,
1993).
Financial Management: First Financial Audits of IRS and Customs
Revealed Serious Problems (GAO/T-AIMD-93-3, Aug. 4, 1993).
Budget Issues: Financial Reporting to Better Support Decision-Making
(GAO/AFMD-93-22, June 1993).
Financial Audit: Examination of the Army's Financial Statements for
Fiscal Years 1992 and 1991 (GAO/AIMD-93-1, June 30, 1993).
Financial Management Issues (GAO/OCG-93-4TR, Dec. 1992).
FM04: INCREASE THE USE OF
TECHNOLOGY TO STREAMLINE
FINANCIAL SERVICES
------------------------------------------------------- Chapter 28:2.4
Use electronic funds transfer to pay and reimburse expenses for all
federal employees, to handle all interagency payments, to make
payments to state and local governments, and to pay for purchases
from the private sector. Similarly, all payments to individuals
should be done electronically.
ACTION ITEMS
----------------------------------------------------- Chapter 28:2.4.1
1. Issue all federal employee pay and expense reimbursement through
EFT.
2. Handle all interagency payments through the On-Line Payment and
Collection (OPAC) System.
3. Handle all payments to state or local governments through EFT.
4. Include the EFT payment clause from the Federal Acquisition
Regulations in all contracts.
5. Issue all payments to individuals through EFT or EBT.
6. Simplify, redirect, and reengineer agency financial processes to
make them fully electronic and reduce the paperwork burden.
GAO COMMENTS
----------------------------------------------------- Chapter 28:2.4.2
Generally Agree. Although we support electronic funds transfer, we
have found that there are some barriers in the agencies' ability to
fully implement electronic commerce. For example, GSA has
encountered some limitations in its piloting of electronic data
interchange (EDI). Through Vendor Express, GSA can electronically
transfer funds to vendors, however some vendors who agreed to use
Vendor Express have requested to be taken off Vendor Express because
of the system's inability to match payments with invoices. Also,
some of the smaller vendors with which the government is required to
conduct business are not set up to handle Vendor Express.
Additionally, although a substantial amount of GSA's services are
provided to DOD, DOD does not use the OPAC system which allows
agencies to electronically transfer funds between Treasury accounts.
Lastly, employee unions have worked to preserve employee rights to
receive pay checks. For example, GSA has two separate employee
unions that have voted against employee mandated EFT for payroll
checks.
IMPLEMENTATION
----------------------------------------------------- Chapter 28:2.4.3
Not Implemented--Action Taken. While this recommendation has not
been implemented, OMB in conjunction with Treasury and other agencies
has taken steps toward achieving it. For example, on August 16,
1994, OMB issued a policy (OMB Bulletin 94-09) that establishes and
requires electronic funds transfer (EFT) as the federal government's
standard method of payment. The bulletin directs federal agencies to
use EFT to (1) pay its employees; (2) make interagency payments; (3)
pay vendors; (4) make payments to state and local governments,
educational institutions, and other not-for-profit organizations; and
(5) disburse benefits and assistance to individuals, including
military and civilian retirees, disabled veterans, social security
recipients, and public assistance beneficiaries. The bulletin also
encourages agencies to work with state and local governments to make
EFT, along with electronic benefit transfer, an option for federal
assistance programs administered by such nonfederal organizations.
According to OMB, the next step is for Treasury--the lead agency for
implementation of this initiative--to work with the other agencies to
ensure these requirements are implemented to the greatest extent
practicable. The Government Management Reform Act of 1994 (P.L.
103-356) requires recipients of federal wage, salary, or retirement
payments, who begin to receive such payments on or after January 1,
1995, to be paid such amounts by EFT, unless another method has been
determined by the Secretary of the Treasury to be appropriate.
Many agencies had fully electronic processes or plans in place for
fully electronic processes prior to NPR's recommendation and have
used the recommendation as an avenue to solicit cooperation from
outside parties. As required by the Electronic Commerce Application
Team schedule, OPM purchased software to accommodate the electronic
commerce program. OPM plans to complete Vendor Express for accounts
payable and Mainstreet for procurement by the end of fiscal year
1995.
About 95 percent of Commerce's interagency payments are being made
through Treasury's OPAC System; and about 95 percent of Commerce's
payments to state and local governments are being made by EFT.
Commerce's plan calls for optimizing these two forms of payments
through the CAMS, which is currently under development. CAMS is
being designed to make these payments automatically, when
appropriate.
GSA and OPM have electronic payroll systems. GSA's system includes
electronic approval whereas OPM's does not. DOJ, GSA, and OPM
encourage EFT for employee payroll checks. GSA's payroll system is
designed to have funds deposited in the employees' account to
coincide with the date when funds are available to employees who
receive checks. National Finance Center's payroll system, which
services numerous federal agencies, followed GSA's example and has
changed the date of when funds are to be deposited in employee
accounts. GSA is currently working with DOD to use the OPAC system
on a limited basis.
Treasury modified the Treasury Financial Manual to encourage all
agencies to use EFT. According to Treasury, it currently pays almost
90 percent of its employees via EFTs and all of its interagency
payments are made via OPAC.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 28:2.4.4
Tax Administration: Electronic Filing Fraud (GAO/T-GGD-94-89, Feb.
10, 1994).
Food Assistance: Reducing Fraud and Abuse in the Food Stamp Program
with Electronic Benefit Transfer Technologies (GAO/T-RCED-94-125,
Feb. 2, 1994).
Defense IRM: Business Strategy Needed for Electronic Data
Interchange Program (GAO/NSIAD-94-17, Dec. 9, 1993).
FM05: USE THE CHIEF
FINANCIAL OFFICERS (CFO) ACT
TO IMPROVE FINANCIAL
SERVICES
------------------------------------------------------- Chapter 28:2.5
Identify the set of financial management functions which should
report to agency CFOs, and ensure that all financial management
personnel are fully qualified when hired. Ensure that information
being collected, disseminated, and reported on is useful, objective,
timely, and accurate for the benefit of program managers.
ACTION ITEMS
----------------------------------------------------- Chapter 28:2.5.1
1. Ensure that all financial management personnel are fully
qualified.
2. Coordinate efforts to provide low-cost, effective training for
financial management personnel.
3. Ensure that the information being collected, disseminated, and
reported on is useful, objective, timely, and accurate for the
benefit of program managers.
4. The OMB Deputy Director for Management should meet periodically
with departmental deputy secretaries to discuss financial management
issues.
5. Identify the set of financial management functions that should
report to agency CFOs.
GAO COMMENTS
----------------------------------------------------- Chapter 28:2.5.2
Agree. We strongly advocate these types of actions, which are
critically needed to strengthen financial management leadership,
attract and retain qualified financial management personnel, and
develop useful and relevant financial reports that emphasize
accountability and operating performance.
The CFO Act's objectives are integral to establishing accountability.
We will begin to review CFO Act implementation at all 24 agencies in
the act. Our reviews will focus on assessing each agency's progress
towards implementing the act's requirements, the status of
implementing the NPR recommendations, and progress in achieving the
goals as outlined in the Vision for Financial Management contained in
the OMB Status Report and 5-Year Plan.
The passage of Public Law 103-356, which requires audited agencywide
financial statements for executive agencies, will provide a
foundation for ensuring that the information being collected,
disseminated, and reported on is useful, objective, timely, and
accurate for the benefit of program managers.
IMPLEMENTATION
----------------------------------------------------- Chapter 28:2.5.3
Partially Implemented. Some progress has been made on most of the
action items, but work remains to be done. Qualification Standards
established pursuant to the CFO Act for Chief Financial Officers and
their Deputies were developed by OMB and distributed to all agencies
in 1991. OMB considers the group of CFOs in place to be
well-qualified.
We have been encouraged by the quality of the current appointments to
many of the agency CFO positions. Strong CFO leadership is urgently
needed to deal with the serious personnel and system weaknesses that
are at the heart of the government's financial management problems.
While OMB considers the current cadre of CFOs to be well qualified,
it is also important that the agencies have qualified Deputy CFOs in
place and that these officers have appropriate responsibilities as
envisioned by the act. Because this area is so critical, our
assessments of CFO implementation will review in detail the
qualifications of financial management personnel (action item 1) and
whether financial management functions, as identified by OMB, are
reporting to agency CFOs (action item 5).
The CFO Council has begun identifying steps to ensure that all
financial management personnel are fully qualified. In a recently
published document they have defined the CFO's role in strengthening
financial management at the component organization level. This
document contains appendices with examples of position descriptions,
critical job elements, and technical qualifications used for
component CFOs. It also details selected actions taken or planned by
CFOs to strengthen organizational and personnel activities.
JFMIP is working with the CFO Council Human Resources Committee on
CPE and training issues. A jointly sponsored training symposium is
scheduled to be held in November 1994. The Association of Government
Accountants is developing a Certified Government Financial Manager
Program with specified CPE requirements for certificate holders. It
could have potential to provide a base for CPE/training for
government financial managers, according to JFMIP. There has been
cross-agency training given by OMB, GAO and the Inspector General
Auditor Training Institute on various topics during the past year,
and this will be ongoing.
The new OMB Deputy Director for Management has met individually with
departmental deputy secretaries to discuss financial management
issues according to OMB. It is important that he and the recently
appointed Controller have a continuing dialogue with departmental
deputy secretaries on key financial management issues (action item
4).
On February 9 and June 10, 1993, memorandums to agency heads were
issued by OMB outlining the requirements of the CFO Act. Emphasis
was placed on the set of financial management functions that should
report to agency CFO's in the June 10, 1993 memo from the OMB
Director to agency heads. The functions reporting to the CFOs are
detailed by agency in the Status Report and 5-Year Plan along with an
indication of those agencies planning to reorganize to meet the OMB
recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 28:2.5.4
Financial Audit: CFO Implementation at IRS and Customs
(GAO/T-AIMD-94-164, July 29, 1994).
Financial Management: Status of CFO Act Implementation at the
Department of Treasury (GAO/T-AIMD-94-157, July 13, 1994).
Financial Management: Status of CFO Act Implementation at the
Department of Commerce (GAO-T-AIMD-94-150, June 28, 1994).
Examination of the Internal Revenue Service Fiscal Year 1993
Financial Statements (GAO/AIMD-94-120, June 15, 1994).
Examination of the U.S. Customs Service Fiscal Year 1993 Financial
Statements (GAO/AIMD-94-119, June 15, 1994).
Coast Guard Issues Related to the Fiscal Year 1995 Budget Request
(GAO/T-RCED-94-140, Mar. 22, 1994).
Improving Government: GAO's Views on H.R. 3400 Management
Initiatives (GAO-T/AIMD/GGD-94-97, Feb. 23, 1994).
Financial Management: First Financial Audits of IRS and Customs
Revealed Serious Problems (GAO/T-AIMD-93-3, Aug. 4, 1993).
Budget Issues: Financial Reporting to Better Support Decision-making
(GAO/AFMD-93-22, June 1993).
Financial Audit: Examination of the Army's Financial Statements for
Fiscal Years 1992 and 1991 (GAO/AIMD-93-1, June 30, 1993).
Financial Management Issues (GAO/OCG-93-4TR, Dec. 1992).
Financial Management: Immediate Actions Needed to Improve Army
Financial Operations and Controls (GAO/AFMD-92-82, Aug. 7, 1992).
Financial Audit: Aggressive Actions Needed for Air Force to Meet
Objectives of the CFO Act (GAO/AFMD-92-12, Feb. 19, 1992).
Government Management: Major Issues Facing the Congress
(GAO/T-AFMD-92-4, Feb. 6, 1992).
The Qualifications for and Role of Agency Chief Financial Officers
(GAO/T-AFMD-91-7, June 7, 1991).
Financial Audit: Air Force Does Not Effectively Account for Billions
of Dollars of Resources (GAO/AFMD-90-23, Feb. 23, 1990).
FM06: "FRANCHISE" INTERNAL
SERVICES
------------------------------------------------------- Chapter 28:2.6
The President's Management Council should encourage agencies to
purchase common administrative services, such as payroll, computer
support, or procurement, competitively from other federal agencies
that may be more responsive or offer better prices.
ACTION ITEMS
----------------------------------------------------- Chapter 28:2.6.1
1. Implement franchising for service functions at the agency head's
discretion.
2. Establish an implementation team under the President's Management
Council (PMC).
GAO COMMENTS
----------------------------------------------------- Chapter 28:2.6.2
Generally Agree. Congress has already provided statutory authority
to create budget accounts in all executive departments to support
centralized administrative services on a reimbursable basis. These
accounts have the essential features of the franchise fund proposals
contained in Public Law 103-356, the Government Management Reform Act
of 1994. Absent a specific account, the Economy Act provides broad
authority to all agencies to seek the most cost-effective means of
procuring administrative services through interagency agreements.
IMPLEMENTATION
----------------------------------------------------- Chapter 28:2.6.3
Not Implemented--Action Taken. The Government Management Reform Act
(P.L. 103-356), signed into law on October 13, 1994, allows
franchise funds to be tested through pilot projects. In addition, a
separate agency proposal to expand GSA's existing working capital
fund was included in the Treasury, Postal Service, and General
Government Appropriations Act for fiscal year 1995 (P.L. 103-329).
No action has been taken on the recommendation to establish a
franchise implementation team under the President's Management
Council. However, the CFO Council has established a franchise
planning committee to discuss issues related to cross servicing
operations.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 28:2.6.4
Working Capital Funds: Three Agency Perspectives (GAO/AIMD-94-121,
May 20, 1994).
Improving Government: GAO's Views on H.R. 3400 Management
Initiatives (GAO/T-AIMD/GGD-94-97, Feb. 23, 1994).
Financial Management: First Financial Audits of IRS and Customs
Revealed Serious Problems (GAO/T-AIMD-93-3, Aug. 4, 1993).
Financial Management Issues (GAO/OCG-93-4TR, Dec. 1992).
Financial Management: Immediate Actions Needed to Improve Army
Financial Operations and Controls (GAO/AFMD-92-82, Aug. 7, 1992).
Government Management: Major Issues Facing the Congress
(GAO/T-AFMD-92-4, Feb. 6, 1992).
FM07: CREATE INNOVATION
FUNDS
------------------------------------------------------- Chapter 28:2.7
Allow agencies to create innovation capital funds from retained
savings to invest in innovations that can improve service and provide
a return on investment.
ACTION ITEMS
----------------------------------------------------- Chapter 28:2.7.1
1. Allow agencies to create innovation capital funds.
2. Establish working capital funds (WCFs) for all federal agencies.
3. Convene a working capital fund (WCF) forum.
4. Allow agencies to match funds.
GAO COMMENTS
----------------------------------------------------- Chapter 28:2.7.2
Insufficient Information. While making capital available for
innovation could help the government strengthen and modernize its
support services, it is not clear how this recommendation would be
implemented. Various budgetary mechanisms (working capital funds,
business operating funds, etc.) are already available, and have been
for many years, that allow accumulation of retained earnings. These
mechanisms could be used to fund agency efforts to promote
innovations. We did have concerns over the innovation fund proposal
that the administration made as part of H.R. 3400. That proposal
would have been a significant departure from current
legislative-executive relationships, and it is not clear whether the
budget mechanism, as proposed, would have been self-sustaining.
IMPLEMENTATION
----------------------------------------------------- Chapter 28:2.7.3
Not Implemented--Action Taken. The House-passed version of the
Government Reform and Savings Act of 1993 (H.R. 3400) would have
allowed innovation funds to be created at the discretion of agency
heads, with the concurrence of OMB. This provision was deleted from
the Senate bill (S. 2170) and was not included in the Government
Management Reform Act (P.L. 103-356). The fiscal year 1995
President's Budget proposed to establish a Reinvention Investment
Fund--which would serve a similar purpose as an innovation
fund--within the Department of Labor's working capital fund account.
This proposal was deleted from the fiscal year 1995 appropriations
act for the departments of Labor, Health and Human Services, and
Education, and related agencies.
According to OMB officials, there were three legislative proposals
that would have allowed agencies to match funds: (1) the franchise
fund proposal in H.R. 3400, which was sharply curtailed in Public
Law 103-356; (2) the innovation fund proposal in H.R. 3400, which
was deleted in Public Law 103-356; and (3) section 527 of the
Treasury, Postal Service, and General Government Appropriations Act
for fiscal year 1995, a general provision to roll over 50 percent of
unobligated balances in salary and expense accounts contained in the
act, which was restricted by requiring pre-approval by the House and
Senate Committees on Appropriations prior to expending these funds.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 28:2.7.4
Working Capital Funds: Three Agency Perspectives (GAO/AIMD-94-121,
May 20, 1994).
Improving Government: GAO's Views on H.R. 3400 Management
Initiatives (GAO/T-AIMD/GGD-94-97, Feb. 23, 1994).
FM08: REDUCE FINANCIAL
REGULATIONS AND REQUIREMENTS
------------------------------------------------------- Chapter 28:2.8
Eliminate timesheets and timecards and use technology to enter
payroll data only on an exception basis. Allow use of commercial
checking accounts instead of third-party accounts. Create a
threshold below which it is not cost-effective to resolve audit
findings.
ACTION ITEMS
----------------------------------------------------- Chapter 28:2.8.1
1. Allow the use of commercial checking accounts.
2. Give agency heads the flexibility to determine when to do
alternative pay and work out any problems with the vendor.
3. Revise Circular A-50 to incorporate an audit resolution
threshold. CFOs should establish these thresholds with their
inspectors general or heads of audit.
4. Eliminate time sheets and time cards and use technology to enter
payroll data on an exception basis.
GAO COMMENTS
----------------------------------------------------- Chapter 28:2.8.2
Generally Agree. In principle, GAO supports actions to improve
federal cash management practices regarding small payments and the
use of alternative pay, prompt pay, and other practices wherever
appropriate, as long as these practice and procedures are accompanied
by strong internal control systems.
GAO has recommended that OMB Circular A-50, "Audit Followup," be
revised to indicate when audit recommendations should be closed and
what kind of documentation is sufficient to support closure of audit
recommendations. We believe that much of the benefit from audit work
is in the effective resolution of audit recommendations and that
successful implementation should be the primary reason for closing
them. We also believe that while all recommendations need to be
followed up on, follow up efforts should be concentrated on those
recommendations which have substantial potential impact in terms of
improved government operations. Thresholds can provide a useful
measure for determining, on a cost effective basis, the extent of
follow-up and documentation required to close audit recommendations.
While we have not studied the elimination of time and attendance
records, title 6 of GAO's Policy and Procedures Manual for Guidance
of Federal Agencies allows employees' time to be recorded on an
exception basis, which is consistent with NPR's recommendation.
IMPLEMENTATION
----------------------------------------------------- Chapter 28:2.8.3
Not Implemented--Action Taken. Treasury representatives told us that
the Department is against letting agencies establish commercial
checking accounts because it would lose interest revenue and control
over the funds held by agencies. It is, however, evaluating other
options that would help agencies in making payments involving small
amounts of money. These options include the Fed Select Program and
the use of electronic fund transfers.
A Treasury/Financial Management Service-led task force is examining
ways to fold together alternative pay, prompt pay, and electronic
commerce payment practices for payments of small amounts due vendors.
The task force plans to develop options and distribute them to
agencies for comment in early 1995.
OMB had planned to have a revision of Circular A-50, "Audit
Follow-up", ready sometime during fall 1994. However, work on
Circular A-50 has not been completed and OMB is considering combining
Circular A-50 with Circular A-123, "Internal Control Systems".
Twenty-five agencies attended a June 6, 1994 meeting to discuss the
status of agency implementation of automated time and attendance
systems. A little more than half of these agencies (14) already use
some kind of automated time and attendance system; 10 of the
remaining agencies plan to develop or obtain such automated systems.
We independently contacted four federal departments (Justice,
Commerce, Labor, and Agriculture) and two independent agencies (GSA
and OMB). These departments/agencies are at various stages of
addressing the recommendations on the use of timesheets, although
several have already eliminated timesheets and enter time and
attendance data on an exception basis. GSA and OMB appear to be
fairly far along. OMB already enters time and attendance data on an
exception basis to an automated system and approves the data
electronically. GSA is in the process of phasing in such a system.
On September 28, 1994, GAO sent a letter to the NPR in response to
its request on timesheets and the use of the exception basis of
recording payroll data, as it relates to GAO's title 6, Policies and
Procedures Manual for Guidance of Federal Agencies. Each of the
applications proposed involved eliminating use of timesheets for
full-time employees in a certain situation. The letter expresses our
support for efforts to gain efficiencies by streamlining payroll
operations, as long as such changes are made within a framework of
adequate controls to insure that payroll related transactions are
properly authorized and sufficient records of these transactions are
maintained.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 28:2.8.4
Audit Resolution: Strengthened Guidance Needed to Ensure Effective
Action (GAO/AFMD-92-16, Mar. 24, 1992).
NPR Recommendations on T&A Data (GAO/AIMD-94-193R, Sept. 28, 1994).
FM09: SIMPLIFY THE
FINANCIAL REPORTING PROCESS
------------------------------------------------------- Chapter 28:2.9
Grant OMB the flexibility to consolidate and simplify over a dozen
related statutory reports to Congress and the President. Require
agency heads to provide two reports annually, a planning report and
an accountability report. Ensure that any future financial
management reporting requirements can be addressed in either the
planning or accountability reports.
ACTION ITEMS
----------------------------------------------------- Chapter 28:2.9.1
1. Propose legislation to permit OMB, in consultation with
appropriate congressional committees, to have the flexibility to
consolidate and simplify statutory reports to Congress and the
President.
2. Require agency heads to provide two reports annually, a planning
report and an accountability report.
3. Ensure that any future financial management reporting
requirements be addressed in either the planning or accountability
reports.
GAO COMMENTS
----------------------------------------------------- Chapter 28:2.9.2
Generally Agree. We strongly support financial planning and
accountability reporting as the cornerstone of improved federal
financial reporting. We also fully support efforts to consolidate
and streamline reporting, where needed, with the goal of more useful
and meaningful reporting. However, the potential impact of this
recommendation on specific reports to Congress and the President
which agencies are required by law to prepare cannot be determined
from the information provided. Accordingly, it would be essential
that any changes be fully coordinated with and agreed to by cognizant
congressional committees.
IMPLEMENTATION
----------------------------------------------------- Chapter 28:2.9.3
Partially Implemented. The first action item has been completed with
the passage of the Government Management Reform Act of 1994 (P.L.
103-356). The act allows OMB to adjust the frequency and due dates
of or consolidate any statutorily required reports of agencies to OMB
or the President and of agencies or OMB to Congress under any laws
for which OMB has financial management responsibility. The act also
has provisions for audited agency and governmentwide financial
statements which will provide a foundation for the accountability
report mentioned in the second and third action items. The agency
planning report referred to in action item two is required for
agencies beginning in 1997 under the Government Performance and
Results Act of 1993. More action may be needed to ensure that any
future financial management reporting requirements be addressed in
either the planning or the accountability reports, as recommended in
action item three.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 28:2.9.4
Financial Management: First Financial Audits of IRS and Customs
Revealed Serious Problems (GAO/T-AIMD-93-3, Aug. 4, 1993).
Financial Audit: Examination of the Army's Financial Statements for
Fiscal Years 1992 and 1991 (GAO/AIMD-93-1, June 30, 1993).
Financial Management Issues (GAO/OCG-93-4TR, Dec. 1992).
Financial Management: Immediate Actions Needed to Improve Army
Financial Operations and Controls (GAO/AFMD-92-82, Aug. 7, 1992).
Financial Audit: Aggressive Actions Needed for Air Force to Meet
Objectives of the CFO Act (GAO/AFMD-92-12, Feb. 19, 1992)
Financial Audit: Air Force Does Not Effectively Account for Billions
of Dollars of Resources (GAO/AFMD-90-23, Feb. 23, 1990).
FM10: PROVIDE AN ANNUAL
FINANCIAL REPORT TO THE
PUBLIC
------------------------------------------------------ Chapter 28:2.10
Provide a simplified version of a consolidated report on the finances
of the federal government for distribution to the taxpayers by June
1995. Develop a method of identifying and budgeting for the expected
costs of contingent liabilities of the federal government.
ACTION ITEMS
---------------------------------------------------- Chapter 28:2.10.1
1. Provide a consolidated annual report on the finances of the
federal government, including contingent liabilities.
2. Issue an annual financial report to the taxpayers.
3. Develop a method of identifying and budgeting for the expected
costs of contingent liabilities of the federal government.
GAO COMMENTS
---------------------------------------------------- Chapter 28:2.10.2
Generally Agree. We strongly believe that the public is entitled to
be provided financial reports annually on the government's
stewardship of taxpayer monies and that such financial statement
information should be subjected to audit. Thus, we believe the
Annual Financial Report to the Public should be derived from the
proposed audited governmentwide financial statements to make this
report more useful and credible. Also, we have generally advocated
the inclusion in the budget of the expected costs of contingent
liabilities, such as is done for credit programs under the Credit
Reform Act. The nature of the specific contingent liabilities to
which NPR refers, though, is unclear.
IMPLEMENTATION
---------------------------------------------------- Chapter 28:2.10.3
Not Implemented--Action Taken. The Government Management Reform Act,
enacted in October 1994 (P.L. 103-356), requires consolidated
governmentwide financial statements for all executive agencies and
activities starting in fiscal year 1997. Treasury and OMB are
working together to develop statements, and we plan to audit them as
required by the act.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 28:2.10.4
Financial Audit: Examination of Customs' Fiscal Year 1993 Financial
Statements (GAO/AIMD-94-119, June 15, 1994).
Financial Audit: Examination of IRS' Fiscal Year 1993 Financial
Statements (GAO/AIMD-94-120, June 15, 1994).
Financial Management: First Financial Audits of IRS and Customs
Revealed Serious Problems (GAO/T-AIMD-93-3, Aug. 4, 1993).
Financial Audit: Examination of the Army's Financial Statements for
Fiscal Years 1992 and 1991 (GAO/AIMD-93-1, June 30, 1993).
Financial Management: Immediate Actions Needed to Improve Army
Financial Operations and Controls (GAO/AFMD-92-82, Aug. 7, 1992).
Financial Audit: Aggressive Actions Needed for Air Force to Meet
Objectives of the CFO Act (GAO/AFMD-92-12, Feb. 19, 1992).
Financial Audit: Air Force Does Not Effectively Account for Billions
of Dollars of Resources (GAO/AFMD-90-23, Feb. 23, 1990).
FM11: STRENGTHEN DEBT
COLLECTION PROGRAM
------------------------------------------------------ Chapter 28:2.11
Propose legislation to allow debt collection activities to be funded
by the revenues generated from collections and to allow the agencies
to keep a certain percentage of any increased collection amounts.
Propose legislation to lift restrictions on the use of private
collection, and expand agency litigation authority for debt
collection through the designation of special assistant U.S.
Attorneys.
ACTION ITEMS
---------------------------------------------------- Chapter 28:2.11.1
1. Enact legislation to allow (a) debt collection activities to be
funded by the revenues generated from collections and (b) the
agencies to keep a certain percentage of any increased collection
amounts, primarily for improvements in debt collection as well as
other agency priorities.
2. Enact legislation to increase agencies' access to private
collection contractors by eliminating any restrictions.
3. Expand agency litigation for debt collection through the special
assistant U.S. attorney process.
4. Establish a credit management function.
5. Expand the Credit Alert Interactive Voice Response System
(CAIVRS).
6. Improve estimates for the allowance for doubtful accounts.
7. Establish performance agreements on each major loan and debt
collection program.
GAO COMMENTS
---------------------------------------------------- Chapter 28:2.11.2
Generally Agree. While we have not examined all aspects of the
impact these recommendations may have on individual agencies'
operations, our work has shown the need for stronger governmentwide
credit management and debt collection programs. We have specifically
reported on the need for legislation to lift restrictions on the use
of private collection agencies by the Customs Service. Also, we have
proposed that agencies keep a portion of any increased collections to
improve debt collection systems and practices. Further, we have
supported the increased use of private sector attorneys to assist in
collecting delinquent debt, which relates to the NPR recommendation
involving expanded use of U.S. Attorneys.
IMPLEMENTATION
---------------------------------------------------- Chapter 28:2.11.3
Not Implemented--Action Taken. S. 1843, the Government Downsizing,
Performance, and Accountability Act of 1994 (Sec. 1107), would have
authorized the appropriation of funds--based on the amount of
delinquent debts collected--for improving agencies' debt collection
activities. Also, regarding the special use of U.S. Attorneys, the
Departments of Justice and Agriculture recently signed a memorandum
of understanding whereby special U.S. Attorneys would be used to
collect delinquent debts for the USDA.
While some progress has been made on other actions, these actions
have not been fully implemented. Progress has been made, for
example, on the expansion of CAIVRS to other agencies. As of June
1994, in addition to HUD, three other agencies (the Departments of
Veterans Affairs, the Small Business Administration, and the
Department of Agriculture) are using CAIVRS. Also, the Department of
Education provides delinquent debt information to CAIVRS, and Justice
will participate in CAIVRS by providing HUD with data on judgments.
However, the recommendation to establish a credit management function
in the Chief Financial Organization has not yet been completed. OMB
is developing a standard policy on how this will be implemented.
Also, agencies still need to improve their estimates of the allowance
for doubtful accounts. While our audit of Customs' and IRS' fiscal
year 1993 financial statements noted that these agencies developed
reliable methodologies for determining the collectibility of their
receivables, we found that their accounting systems do not routinely
produce reliable information about valid and collectible accounts
receivable.
Further, SBA and HUD have established performance agreements with OMB
for their loan and collection programs and USDA and VA are in the
process of developing agreements.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 28:2.11.4
Financial Audit: Examination of Customs' Fiscal Year 1993 Financial
Statements (GAO/AIMD-94-119, June 15, 1994).
Financial Audit: Examination of IRS' Fiscal Year 1993 Financial
Statements (GAO/AIMD-94-120, June 15, 1994).
Financial Audit: Examination of the Army's Financial Statements for
Fiscal Years 1992 and 1991 (GAO/AIMD-93-1, June 30, 1993).
Financial Audit: Examination of Customs' Fiscal Year 1992 Financial
Statements (GAO/AIMD-93-3, June 30, 1993).
Financial Management: Customs Needs to Establish Adequate
Accountability and Control Over Its Resources (GAO/AFMD-92-30, Aug.
25, 1992).
Credit Management: Deteriorating Credit Picture Emphasizes
Importance of OMB's Nine-Point Program (GAO/AFMD-90-12, Apr. 16,
1990).
Debt Collection: Billions Are Owed While Collection and Accounting
Problems Are Unresolved (GAO/AFMD-86-39, May 23, 1986).
FM12: MANAGE FIXED ASSET
INVESTMENTS FOR THE LONG
TERM
------------------------------------------------------ Chapter 28:2.12
Establish a long-term fixed asset planning and analysis process, and
incorporate it into the federal budget process. Ensure there is no
bias in the budget against long-term investments.
ACTION ITEMS
---------------------------------------------------- Chapter 28:2.12.1
1. Establish a long-term fixed asset planning and analysis process.
2. Incorporate fixed asset long-term planning into the federal
budget process.
3. Ensure that there is no budget bias against long-term
investments.
4. Provide more flexible funding mechanisms for the acquisition of
fixed assets.
5. Consider revisions to budget scoring.
GAO COMMENTS
---------------------------------------------------- Chapter 28:2.12.2
Generally Agree. We support a neutral treatment of long-term
investments in the budget consistent with budget scorekeeping
principles that are meant to reflect the actual commitments made by
the federal government.
IMPLEMENTATION
---------------------------------------------------- Chapter 28:2.12.3
Partially Implemented. Action has occurred in some respect on all of
the action items and some have been implemented. On July 27, 1994,
OMB issued Bulletin No. 94-08, which established a long-term fixed
asset planning and analysis process for the fiscal year 1996 budget,
including guidance identifying potential budget biases. H.R. 2680,
which was introduced on July 20, 1993, and reported out by the House
Committee on Public Works and Transportation on June 14, 1994,
proposed to revise budget scoring on public building transactions.
The revision permits spreading budget authority and outlays for lease
purchases over the period of the lease instead of up front in the
budget in terms of their current economic costs. We understand that
OMB is considering different funding mechanisms for capital assets.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 28:2.12.4
Budget Issues: Incorporating an Investment Component in the Federal
Budget (GAO/AIMD-94-40, Nov. 9, 1993).
Public Buildings: Budget Scorekeeping Prompts Difficult Decisions
(GAO/T-AIMD-GGD-94-43, Oct. 28, 1993).
Federal Budget: Choosing Public Investment Programs (GAO/AIMD-93-25,
July 23, 1993).
Budget Policy: Federal Capital Budgeting (GAO/T-AFMD-93-7, May 26,
1993).
Budget Policy: Investment Budgeting for the Federal Government
(GAO/T-AIMD-94-54, Nov. 9, 1993).
Budget Policy: Budgetary Treatment of Investment Programs
(GAO/T-AFMD-92-15, July 23, 1992).
Budget Policy: Prompt Action Necessary to Avert Long-Term Damage to
the Economy (GAO/OCG-92-2, June 5, 1992).
Financial Audit: Aggressive Actions Needed for Air Force to Meet
Objectives of the CFO Act (GAO/AFMD-92-12, Feb. 19, 1992).
Financial Audit: Air Force Does Not Effectively Account for Billions
of Dollars of Resources (GAO/AFMD-90-23, Feb. 23, 1990).
FM13: CHARGE AGENCIES FOR
THE FULL COST OF EMPLOYEE
BENEFITS
------------------------------------------------------ Chapter 28:2.13
Require all agencies to pay the full accruing cost of Civil Service
Retirement and Pensions. OMB and the Office of Personnel Management
should also research the possibility of charging agencies for
civilian retiree health benefits.
ACTION ITEMS
---------------------------------------------------- Chapter 28:2.13.1
1. Require all agencies to pay the full accruing cost of Civil
Service Retirement System (CSRS) pensions.
2. Research the possibility of charging agencies the full accruing
cost for civilian and military retiree health benefits.
GAO COMMENTS
---------------------------------------------------- Chapter 28:2.13.2
Generally Agree. We have reported that budget reporting of the cost
of most civilian personnel programs can be improved by including data
on liabilities incurred, rather than on the cash basis. While we
have not addressed all facets of charging agencies for civilian
retiree health benefits, we have reported on payments for retiree
health benefits that the Postal Service is required to make to the
Civil Service Fund. Also, the accounting standards prescribed for
use by the private sector require employers to recognize the cost of
retiree health benefits when liable for making such payments.
IMPLEMENTATION
---------------------------------------------------- Chapter 28:2.13.3
Not Implemented--Action Taken. OMB has initiated actions to require
all agencies to pay and report the full accruing costs of Civil
Service Retirement System Pensions but they are not near completion.
OMB recommended that Congress require all agencies to pay the full
accruing cost of Civil Service Retirement System Pensions in the 1995
Budget. OMB is currently working with relevant agencies to draft
legislation.
OPM is currently involved in framing legislation that would require
agencies to pay the full cost of benefits without having major
budgetary implications for the contributing agencies. In addition,
OPM has been researching the possibility of charging agencies for the
full accruing cost of civilian and retiree health benefits. This
research involves studying how these calculations would be made and
how the costs should be reported, both by OPM and the contributing
agencies. According to OPM, no formal proposals have been developed
but there are plans to have one developed by January 1995.
A Financial Accounting Standards Advisory Board (FASAB) exposure
draft on accounting for liabilities of the federal government would
require that agencies report the full normal cost of Civil Service
Retirement System Pensions in their accounting systems, and require
that they be reported in the annual financial statements.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 28:2.13.4
Financial Reporting: Accounting for the Postal Service's
Postretirement Health Care Costs (GAO/AFMD-92-32, May 20, 1992).
Managing the Cost of Government: Proposals for Reforming Federal
Budgeting Practices (GAO/AFMD-90-1, Oct. 1989).
REINVENTING HUMAN RESOURCE
MANAGEMENT (HRM)
=========================================================== Chapter 29
OVERALL SUMMARY
--------------------------------------------------------- Chapter 29:1
Many of the NPR recommendations aimed at fundamental reforms of
federal human resource management will require statutory changes,
particularly in areas such as the hiring system, position
classification, the labor-management relations program, and
performance management. Responsibility for determining the specific
changes needed to accomplish these recommendations' objectives was
assigned to the National Partnership Council, established by
Executive Order 12871 on October 1, 1993. The Council includes
representatives of federal agencies, employee unions, and neutral
organizations. Formation of the Council itself fully implemented the
NPR recommendation to form labor-management partnerships for success.
The Council issued its report on January 31, 1994, but as yet no
legislative proposals have been prepared.
Legislation was enacted that partially implemented NPR's
recommendation that the number of federal employees be reduced. The
Federal Workforce Restructuring Act of 1994 required a reduction of
272,900 full-time equivalent positions during fiscal years 1994
through 1999 and authorized lump-sum payments of up to $25,000 to
employees who resign or retire (subject to OPM approval of agency
early retirement authorization requests). The legislation also
adopted the NPR's recommendation calling for broadening agencies'
authority to pay for employee training, but regulations to implement
this part of the statute have not been completed.
Progress is being made in many areas where recommended changes can be
accomplished administratively. For example, the Office of Personnel
Management (OPM) has actions under way to abolish the Federal
Personnel Manual and the federal job application form, and a
presidential memorandum was issued in July 1994 directing agencies to
establish programs to encourage and support the expansion of
family-friendly work arrangements for their employees. OPM is also
continuing its efforts to institute governmentwide employment
information and job application systems accessible by computer and
telephone. Working groups have been formed to determine how best to
proceed in a number of other areas. However, for various reasons,
consideration of some issues, such as allowing agencies to hire
candidates directly when recruiting shortages exist and establishing
agency productivity gainsharing initiatives with employees, have been
deferred. No action has occurred to implement the NPR recommendation
to improve accountability for equal opportunity goals and
accomplishments.
GAO CONTACT
------------------------------------------------------- Chapter 29:1.1
Nancy R. Kingsbury, Director, Federal Human Resource Management
Issues, General Government Division, (202) 512-5074.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 29:2
HRM01: CREATE A FLEXIBLE
AND RESPONSIVE HIRING SYSTEM
------------------------------------------------------- Chapter 29:2.1
Authorize agencies to establish their own recruitment and examining
programs. Abolish centralized registers and standard application
forms. Allow federal departments and agencies to determine that
recruitment shortages exist and directly hire candidates without
ranking. Reduce the types of competitive service appointments to
three. Abolish the time-in-grade requirement.
ACTION ITEMS
----------------------------------------------------- Chapter 29:2.1.1
1. Authorize agencies to establish their own recruitment and
examining programs. Abolish central registers and standard
application forms.
2. Allow federal departments and agencies to determine that
recruitment shortages exist and directly hire candidates without
ranking.
3. Reduce the number of competitive service appointment types to
three.
4. Permit nonpermanent employees to compete for permanent positions
under agency procedures for internal placement.
5. Abolish the time-in-grade requirement. Create a general
qualifications framework that permits agencies to augment or modify
qualification standards for both internal and external placement
actions.
6. Eliminate all statutory rules on detailing employees to temporary
assignments.
7. Create a governmentwide employment information system to inform
the public of job opportunities. Coordinate the development and
operation of common automated systems to facilitate agency staffing
policies and operations.
GAO COMMENTS
----------------------------------------------------- Chapter 29:2.1.2
Generally Agree. We agree that reforms are needed to bring the
federal hiring process more into line with the needs of agencies and
job applicants, and we see merit in allowing agencies greater
latitude in determining which job candidates they wish to hire.
However, the specific NPR proposals represent significant departures
from the traditional hiring process, and we have completed no work on
which to base a determination of whether they are the best way to
improve the hiring process. More importantly, the report gave no
indication of how agencies would be held accountable for ensuring
that merit system principles and other statutory requirements, such
as veterans' preference in hiring, are followed under a complete
decentralization of the hiring process.
IMPLEMENTATION
----------------------------------------------------- Chapter 29:2.1.3
Not Implemented--Action Taken. Executive Order 12871, dated October
1, 1993, created the National Partnership Council (NPC) and charged
it with proposing statutory changes consistent with this NPR
recommendation. In its January 31, 1994, report, the NPC endorsed
the NPR recommendation and outlined a framework for how a
decentralized hiring system should work. However, no statutory
language to change the federal hiring system has been proposed.
According to NPR staff, action has been deferred on the issue of
allowing agencies to directly hire candidates when recruiting
shortages exist because of uncertainty about the criteria to be used
in determining such shortages.
OPM has initiated two regulatory changes related to this
recommendation. On June 15, 1994, it proposed in the Federal
Register to eliminate the regulatory time-in-grade restriction on
promotion eligibility. On June 22, 1994, it proposed to abolish the
SF-171 standard job application form effective December 31, 1994.
OPM is continuing efforts begun before the NPR report was issued to
institute governmentwide employment information and job application
systems accessible by computer and telephone. In May 1994, OPM
discontinued its central registers for entry level professional and
administrative positions. Agencies, with OPM assistance, now rate
and rank candidates for their own vacancies in these positions.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 29:2.1.4
Federal Employment: How Government Jobs Are Viewed on Some College
Campuses (GAO/GGD-94-181, Sept. 9, 1994).
Federal Hiring: Testing for Entry-Level Administrative Positions
Falls Short of Expectations (GAO/GGD-94-103, Mar. 30, 1994).
Federal Personnel Management: OPM Reliance on Agency Oversight of
Personnel System Not Fully Justified (GAO/GGD-93-24, Dec. 8, 1992).
Personnel Practices: Schedule C and Other Details to the Executive
Office of the President (GAO/GGD-93-14, Nov. 6, 1992).
Federal Employment: Poor Service Found at Federal Job Information
Centers (GAO/GGD-92-116, July 28, 1992).
Federal Hiring: Does Veterans' Preference Need Updating?
(GAO/GGD-92-52, Mar. 20, 1992).
Personnel Practices: Propriety of Career Appointments Granted Former
Political Appointees (GAO/GGD-92-51, Feb. 12, 1992).
Federal Recruiting: College Placement Officials' Views of the
Government's Campus Outreach Efforts (GAO/GGD-92-48BR, Jan. 31,
1992).
Federal Recruiting and Hiring: Authority for Higher Starting Pay
Useful but Guidance Needs Improvement (GAO/GGD-91-22, Sept. 10,
1991).
Federal Workforce: Inappropriate Use of Experts and Consultants at
Selected Civilian Agencies (GAO/GGD-91-99, July 17, 1991).
Federal Workforce: Selected Sites Cannot Show Fair and Open
Competition for Temporary Jobs (GAO/GGD-90-106, Sept. 5, 1990).
Federal Recruiting and Hiring: Making Government Jobs Attractive to
Prospective Employees (GAO/GGD-90-105, Aug. 22, 1990).
Personnel Practices: Questionable Personnel Practices at the U.S.
Fish and Wildlife Service (GAO/GGD-90-43, Jan. 23, 1990).
Managing Human Resources: Greater OPM Leadership Needed to Address
Critical Challenges (GAO/GGD-89-19, Jan. 19, 1989).
HRM02: REFORM THE GENERAL
SCHEDULE CLASSIFICATION AND
BASIC PAY SYSTEM
------------------------------------------------------- Chapter 29:2.2
Remove all grade-level classification criteria from the law. Provide
agencies with flexibility to establish broadbanding systems built
upon the General Schedule framework.
ACTION ITEMS
----------------------------------------------------- Chapter 29:2.2.1
1. Remove all grade-level classification criteria from the law while
retaining the 15-grade structure.
2. Provide agencies with flexibility to establish broadbanding
systems built upon the General Schedule framework.
3. Modify the standard 15-grade classification system that applies
to those employees not covered by a broadbanding system.
4. Provide agencies under the standard 15-grade system with
additional flexibilities in setting base pay rates.
5. Establish reporting requirements that apply to both the modified
standard system and any broadbanding system.
GAO COMMENTS
----------------------------------------------------- Chapter 29:2.2.2
Generally Agree. Similar to our position on the previous
recommendation, we generally favor granting agencies increased
prerogatives in managing their human resources, but are concerned
about how they would be held accountable for their actions. The
current job classification system evolved to implement the principle
that there be equal pay for substantially equal work for all
employees in each local pay area. The report gave no indication of
how the integrity of the job classification and pay systems would be
maintained if each agency were allowed to establish its own systems
without central guidance and controls. Our examinations of the
broadbanding approach to position classification have shown it was
generally successful in the few instances in which it was used, but
the tests were too limited for a conclusion that it would be
appropriate in other locations. Salary costs also tended to be
higher under a broadbanding system. Legislation to allow
broadbanding in all agencies has been proposed in the past, but was
not enacted because of congressional concerns that it had not been
sufficiently tested.
IMPLEMENTATION
----------------------------------------------------- Chapter 29:2.2.3
Not Implemented--Action Taken. No determination has yet been made on
what changes will be proposed to the legislation governing the
General Schedule classification and pay systems. Assignments to
draft the necessary legislative changes have not been made.
In its January 31, 1994, report, the NPC endorsed classification
reform and said labor-management partnerships should guide changes in
classification and pay structures. It also suggested delaying
legislative recommendations for changes to the General Schedule pay
system until experience is gained with the pay flexibilities allowed
under the Federal Employees Pay Comparability Act of 1990.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 29:2.2.4
Federal Personnel: Special Authorities Under the Demonstration
Project at Commerce (GAO/GGD-92-124BR, July 13, 1992).
Federal Personnel: Review of Evaluation of Personnel Demonstration
Project at Commerce (GAO/GGD-91-93, May 14, 1991).
Federal Pay: Special Rates Effect on Recruitment and Retention for
Selected Clerical Occupations (GAO/GGD-90-118, Sept. 24, 1990).
Report of the National Advisory Commission on Law Enforcement
(GAO/OCG-90-2, Apr. 25, 1990).
Federal Personnel: Observations on the Navy's Managing to Payroll
Program (GAO/GGD-90-47, Mar. 27, 1990).
Federal Personnel: Observations on the Navy's Personnel Management
Demonstration Project (GAO/GGD-88-79, May 3, 1988).
Description of Selected Systems for Classifying Federal Civilian
Positions and Personnel (GAO/GGD-84-90, July 13, 1984).
Federal White-Collar Special Rate Program (GAO/GGD-84-54, Mar. 30,
1984).
Quality of Government-wide Classification and Position Management
Practices (GAO/FPCD-78-41, Apr. 26, 1978).
Management of Civilian Personnel in the Federal Government: The
Present Situation and Proposals for Improvement (GAO/FPCD-77-36, June
6, 1977).
Classification of Federal White-Collar Jobs Should Be Better
Controlled (GAO/FPCD-75-173, Dec. 4, 1975).
HRM03: AUTHORIZE AGENCIES
TO DEVELOP PROGRAMS FOR
IMPROVEMENT OF INDIVIDUAL
AND ORGANIZATIONAL
PERFORMANCE
------------------------------------------------------- Chapter 29:2.3
Authorize agencies to design their own performance management
programs which define and measure success based on each agency's
unique needs.
ACTION ITEM
----------------------------------------------------- Chapter 29:2.3.1
Authorize agencies to design their own performance management
programs.
GAO COMMENTS
----------------------------------------------------- Chapter 29:2.3.2
Agree. Our reviews confirm that a prescribed "one size fits all"
approach to performance management is too restrictive and does not
allow agencies to use systems they find work best in their
situations.
IMPLEMENTATION
----------------------------------------------------- Chapter 29:2.3.3
Not Implemented--Action Taken. The September 30, 1993, enactment of
the Performance Management and Recognition System Termination Act of
1993 (P.L. 103-89) was an important step toward accomplishing the
objectives of this recommendation because it terminated the
governmentwide performance management system for federal managers and
supervisors. The act authorized agencies to include managers and
supervisors, in whatever manner they deemed appropriate, under their
performance management systems for employees in general. However,
this act did not authorize agencies to design their own programs
consistent with this recommendation. In its January 31, 1994,
report, the NPC called for the law to be changed to allow each agency
to design and implement its own performance management system and
outlined the broad principles a decentralized program should meet.
No legislative proposal to accomplish this change has been proposed.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 29:2.3.4
Performance Management: Comments on Reauthorization of the
Performance Management and Recognition System (GAO/T-93-37, June 24,
1993).
Federal Performance Management: Agencies Need Greater Flexibility in
Designing Their Systems (GAO/GGD-93-57, Feb. 24, 1993).
Federal Employment: How Federal Employees View the Government as a
Place to Work (GAO/GGD-92-91, June 18, 1992).
Pay for Performance: State and International Public Sector
Pay-for-Performance Systems (GAO/GGD-91-1, Oct. 12, 1990).
Performance Management: Appraisal and Promotion Results at the U.S.
Customs Service (GAO/GGD-90-40, May 18, 1990).
Office of Personnel Management: Better Performance Information
Needed (GAO/GGD-90-44, Feb. 7, 1990).
Pay for Performance: Agency Personnel Directors' Views
(GAO/GGD-89-126FS, Sept. 15, 1989).
Pay for Performance: Interim Report on the Performance Management
and Recognition System (GAO/GGD-89-69BR, May 18, 1989).
Blue Collar Workers: Appraisal Systems Are in Place, But Basic
Refinements Are Needed (GAO/GGD-87-72, June 18, 1987).
HRM04: AUTHORIZE AGENCIES
TO DEVELOP INCENTIVE AWARD
AND BONUS SYSTEMS TO IMPROVE
INDIVIDUAL AND
ORGANIZATIONAL PERFORMANCE
------------------------------------------------------- Chapter 29:2.4
Authorize agencies to develop their own incentive award and bonus
systems. Encourage agencies to establish productivity gainsharing
programs to support their reinvention and change efforts.
ACTION ITEMS
----------------------------------------------------- Chapter 29:2.4.1
1. Authorize agencies to develop their own incentive programs.
2. Encourage agencies to establish productivity gainsharing programs
called Federal Performance Sharing to support the reinvention and
change effort.
GAO COMMENTS
----------------------------------------------------- Chapter 29:2.4.2
Agree. Our reviews confirm that a prescribed "one size fits all"
approach to incentive award and bonus systems is too restrictive and
does not allow agencies to use systems they find work best in their
situations.
IMPLEMENTATION
----------------------------------------------------- Chapter 29:2.4.3
Not Implemented--Action Taken. In its January 31, 1994, report to
the President, the NPC endorsed the proposal that agencies be
authorized to develop their own incentive award and bonus systems and
endorsed adoption of productivity gainsharing programs. However, no
legislation has been submitted to authorize agencies to develop their
own incentive systems.
The Federal Quality Institute (FQI) was assigned responsibility for
helping agencies implement gainsharing initiatives. FQI has not
begun work on gainsharing, however, because it is concentrating on
designing and implementing training initiatives related to government
reinvention.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 29:2.4.4
Performance Management: Comments on Reauthorization of the
Performance Management and Recognition System (GAO/T-93-37, June 24,
1993).
Federal Performance Management: Agencies Need Greater Flexibility in
Designing Their Systems (GAO/GGD-93-57, Feb. 24, 1993).
Federal Employment: How Federal Employees View the Government as a
Place to Work (GAO/GGD-92-91, June 18, 1992).
Pay for Performance: State and International Public Sector
Pay-for-Performance Systems (GAO/GGD-91-1, Oct. 12, 1990).
Performance Management: Appraisal and Promotion Results at the U.S.
Customs Service (GAO/GGD-90-40, May 18, 1990).
Pay for Performance: Agency Personnel Directors' Views
(GAO/GGD-89-126FS, Sept. 15, 1989).
Pay for Performance: Interim Report on the Performance Management
and Recognition System (GAO/GGD-89-69BR, May 18, 1989).
Human Resource Management: Status of Agency Practices for Improving
Federal Productivity (GAO/GGD-87-61FS, June 16, 1987).
Gainsharing: DOD Efforts Highlight an Effective Tool for Enhancing
Federal Productivity (GAO/GGD-86-143BR, Sept. 26, 1986).
HRM05: STRENGTHEN SYSTEMS
TO SUPPORT MANAGEMENT IN
DEALING WITH POOR PERFORMERS
------------------------------------------------------- Chapter 29:2.5
Develop a culture of performance which provides supervisors with the
skills, knowledge, and support they need to deal with poor
performers, and holds supervisors accountable for effectively
managing their human resources. Reduce by half the time needed to
terminate federal employees for cause.
ACTION ITEMS
----------------------------------------------------- Chapter 29:2.5.1
1. Reduce by half the time required to terminate federal managers
and employees for cause. Make other improvements in the systems for
dealing with poor performers.
2. Develop a culture of performance that supports supervisors'
efforts to deal with poor performers.
3. Improve supervisors' knowledge and skills in dealing with poor
performers.
GAO COMMENTS
----------------------------------------------------- Chapter 29:2.5.2
Generally Agree. A 1990 study we conducted indicated a need for
agency management to focus on creating an environment within which
supervisors are encouraged and motivated to deal with poor performers
and are properly trained and supported when they attempt to deal with
them. Thus, we agree with the general thrust of the recommendation.
However, we have done no work on which to base an opinion on the
reasonableness of the goal to reduce by half the time required to
terminate employees for cause.
IMPLEMENTATION
----------------------------------------------------- Chapter 29:2.5.3
Not Implemented--Action Taken. In its January 31, 1994, report, the
NPC recommended that the required 30-day notice period for proposed
adverse actions be reduced to 15 days. This 30-day notice period
represents only a small part of the overall time it usually takes to
terminate employees for cause. No other recommendation was made on
how to cut the overall time needed to terminate federal employees for
cause. An NPR representative said the legislation to be developed
may call for agencies to look at other processes and review periods
to see if they, too, could be cut.
OPM has convened focus groups of federal managers and supervisors to
look at the relationship between performance and minority and
nonminority discharge rates, and is developing training courses for
managers and supervisors on dealing with poor performers scheduled to
begin in the second quarter of fiscal year 1995.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 29:2.5.4
Performance Management: How Well Is the Government Dealing with Poor
Performers? (GAO/GGD-91-7, Oct. 2, 1990).
Poor Performers: How Are They Identified and Dealt With in the
Social Security Administration? (GAO/GGD-89-28, Jan. 27, 1989).
HRM06: CLEARLY DEFINE THE
OBJECTIVE OF TRAINING AS THE
IMPROVEMENT OF INDIVIDUAL
AND ORGANIZATIONAL
PERFORMANCE; MAKE TRAINING
MORE MARKET-DRIVEN
------------------------------------------------------- Chapter 29:2.6
Reduce restrictions on training to allow managers to focus on
organizational mission and to take advantage of the available
training marketplace.
ACTION ITEMS
----------------------------------------------------- Chapter 29:2.6.1
1. Deregulate training and make it more responsive to market
sources.
2. Give agencies the flexibility to use savings realized from
reinvention to increase their investment in employee training and
development.
GAO COMMENTS
----------------------------------------------------- Chapter 29:2.6.2
Generally Agree. We agree completely that greater emphasis on
federal employee training is needed. Training expenditures are often
one of the first areas to be cut when agency budgets are reduced, and
our work indicates that many employees are not receiving all of the
training they believe they need. In a 1991 survey of federal
employees, we asked about their training experiences and needs.
Overall, the employees expressed fairly positive views about
training, but sizeable numbers felt their training experiences left
something to be desired.
Results of the survey illustrate the extent to which employees may
have unmet training needs. About one-quarter of the respondents said
they had no agency-paid training of any kind during the previous 2
years. When asked to what extent their agencies encouraged them to
participate in training, about 36 percent checked some or little to
no extent. About 20 percent said they needed a great deal to a very
great deal of additional job-related training. Almost a quarter said
they were treated fairly only some of the time or never when it came
to training relating to their current jobs.
IMPLEMENTATION
----------------------------------------------------- Chapter 29:2.6.3
Partially Implemented. On March 30, 1994, Congress passed Public Law
103-226, the Federal Workforce Restructuring Act of 1994, which
broadened agencies' authority to pay for employee training. An
agency may now pay for any training that assists it in achieving its
mission and performance goals if it determines that the training is
in the interest of the government. The act also removed the previous
restriction on degree training, and eliminated limitations on
training from nongovernment sources. Implementing regulations have
not yet been completed. However, in June 1994, OPM notified agencies
of the changes to the training law, and advised them to implement
those changes immediately.
Because the legislation expanded the circumstances in which employees
could receive agency-paid training, training costs could increase.
On August 4, 1994, OMB advised agency chief financial officers that
the law may allow agencies to transfer up to 2 percent of their
appropriations among accounts, and that up to 3 percent of their
fiscal year 1994 unobligated salary and expense funds could be used
for employee training programs in fiscal year 1995.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 29:2.6.4
OPM Revolving Fund: OPM Sets New Tuition Pricing Policy
(GAO/GGD-94-120, Apr. 6, 1994).
Federal Employment: How Federal Employees View the Government as a
Place to Work (GAO/GGD-92-91, June 18, 1992).
Senior Executive Service: Training Development of Senior Executives
(GAO/GGD-89-127, Sept. 29, 1989).
Report of the National Commission on the Public Service
(GAO/T-GGD-89-19, Apr. 27, 1989).
Federal Workforce: Data on Training Received by Agency Executives,
Managers, and Supervisors (GAO/GGD-88-18FS, Nov. 30, 1987).
Training Budgets: Agency Budget Reductions in Response to the
Balanced Budget Act (GAO/GGD-86-98BR, July 16, 1986).
HRM07: ENHANCE PROGRAMS TO
PROVIDE FAMILY-FRIENDLY
WORKPLACES
------------------------------------------------------- Chapter 29:2.7
Implement family-friendly workplace practices (flex-time, flexiplace,
job sharing, telecommuting) while ensuring accountability for
customer service. Provide telecommunications and administrative
support necessary for employees participating in flexiplace and
telecommuting work arrangements. Expand the authority to establish
and fund dependent care programs. Allow employees to use sick leave
to care for dependents. Allow employees who leave and then reenter
federal service to be given credit for prior sick leave balances.
ACTION ITEMS
----------------------------------------------------- Chapter 29:2.7.1
1. Implement family-friendly workplace practices while continuing to
ensure accountability for quality customer service.
2. Provide telecommunications and administrative support necessary
for employees participating in flexiplace and telecommuting work
arrangements.
3. Expand the authority to establish and fund dependent care
programs.
4. Allow employees to use sick leave to care for dependents.
5. Give returning employees credit for previously accrued unused
federal sick leave.
6. Expand the demonstration project authority to allow projects on
employee benefits and leave.
7. Reauthorize voluntary leave transfer/bank programs.
GAO COMMENTS
----------------------------------------------------- Chapter 29:2.7.2
Agree. The dramatic demographic changes occurring in the federal
workforce signify the need to modernize federal employment policies
to help employees balance their work and family responsibilities.
Leading nonfederal employers have found that well-conceived
work/family programs can improve employee recruitment, retention, and
productivity. Our work shows that the government has not kept pace
with these employers in the work/family area.
IMPLEMENTATION
----------------------------------------------------- Chapter 29:2.7.3
Partially Implemented. In October 1993, Congress passed the Federal
Employees Leave Sharing Amendments Act to provide continuing
authorization for leave transfer and leave bank programs. Although
such action was recommended by the NPR, action to reauthorize the
programs was under way before the NPR report was issued. Congress
also authorized agencies to provide telecommunications support for
flexiplace participants during fiscal year 1994. Legislation being
drafted by OPM and GSA would permanently authorize such support.
In an October 21, 1993, memorandum, OPM provided agencies with
information to help them set up alternative workplace arrangements.
A presidential memorandum was issued on July 11, 1994, directing
agencies to establish programs to encourage and support the expansion
of flexible family-friendly work arrangements, including job sharing,
career part-time employment, alternative work schedules,
telecommuting, and satellite work locations.
In May 1994, OPM proposed regulations to allow employees to use up to
5 days of sick leave a year to care for ill family members and for
bereavement upon a family member's death. The proposed regulations
also would remove the 3-year break-in-service limitation on the
recredit of sick leave for former employees returning to federal
service. The Federal Employees Family Friendly Leave Act of 1994,
enacted on October 22, 1994, allows up to 13 days of sick leave each
year to care for ill family members and for bereavement. Thus, OPM's
proposed regulation will have to be changed accordingly.
According to OPM, it is drafting a legislative proposal to broaden
agencies' authority to design flexible child care and dependent adult
care programs. According to NPR staff, action has been deferred on
the proposal to expand the demonstration project authority to allow
projects on employee benefits.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 29:2.7.4
Alternative Work Schedules: Many Agencies Do Not Allow Employees the
Full Flexibility Permitted by Law (GAO/GGD-94-55, Mar. 29, 1994).
Federal Employment: How Federal Employees View the Government as a
Place to Work (GAO/GGD-92-91, June 18, 1992).
The Changing Workforce: Comparison of Federal and Nonfederal
Work/Family Programs and Approaches (GAO/GGD-92-84, Apr. 23, 1992).
The Changing Workforce: Demographic Issues Facing the Federal
Government (GAO/GGD-92-38, Mar. 24, 1992).
Federal Personnel: Federal Agencies' Part-Time Employment Programs
(GAO/GGD-86-103BR, July 7, 1986).
HRM08: IMPROVE PROCESSES
AND PROCEDURES ESTABLISHED
TO PROVIDE WORKPLACE DUE
PROCESS FOR EMPLOYEES
------------------------------------------------------- Chapter 29:2.8
Eliminate jurisdictional overlaps. All agencies should establish
alternative dispute resolution (ADR) methods and options for the
informal disposition of employment disputes.
ACTION ITEMS
----------------------------------------------------- Chapter 29:2.8.1
1. Eliminate jurisdictional overlaps.
2. All agencies should establish alternative dispute resolution
(ADR) methods and options for the informal disposition of employment
disputes.
GAO COMMENTS
----------------------------------------------------- Chapter 29:2.8.2
Insufficient Information. Intuitively, the elements of this
recommendation appear reasonable. We agree that improvements in the
processes for resolving employment disputes should be sought, but we
have done no work to form an opinion on the extent to which
improvements are possible. In a 1983 report, we concluded there was
no strong evidence that consolidating existing appeal and grievance
systems would result in significant savings in time or money. We
found that the individual systems were established to serve specific
needs and that nothing had come to light to suggest that these needs
no longer existed.
IMPLEMENTATION
----------------------------------------------------- Chapter 29:2.8.3
Partially Implemented. OPM held a conference on ADR in May 1994,
issued an ADR resource guide, developed two training courses on
dispute resolution, and is preparing regulations to eliminate
governmentwide requirements for agency grievance and appeal
procedures. Agencies will then be responsible for establishing their
own procedures. According to an NPR representative, 20 agencies have
completed or are making progress in establishing ADR methods and
options.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 29:2.8.4
Federal Workforce: Agencies' Estimated Costs for Counseling and
Processing Discrimination Complaints (GAO/GGD-92FS, Mar. 26, 1992).
Equal Employment Opportunity: EEOC and State Agencies Did Not Fully
Investigate Employment Discrimination Charges (GAO/HRD-89-11, Oct.
11, 1988).
Survey of Appeal and Grievance Systems Available to Federal Employees
(GAO/GGD-84-17, Oct. 20, 1983).
HRM09: IMPROVE
ACCOUNTABILITY FOR EQUAL
OPPORTUNITY GOALS AND
ACCOMPLISHMENTS
------------------------------------------------------- Chapter 29:2.9
Charge all federal agency heads with the responsibility for ensuring
equal opportunity and increasing representation of qualified women,
minorities, and persons with disabilities into all levels and job
categories, including middle and senior management positions.
ACTION ITEM
----------------------------------------------------- Chapter 29:2.9.1
Charge all federal agency heads with the responsibility for ensuring
equal opportunity and increasing integration of qualified women,
minorities, and persons with disabilities into all levels and job
categories, including middle and senior management positions.
GAO COMMENTS
----------------------------------------------------- Chapter 29:2.9.2
Agree. Our work shows that progress is being made in making federal
employment and advancement opportunities available to persons
representative of all segments of society. However, some agencies
have made far greater progress than others. The changing composition
of the workforce in general means the government cannot relax its
efforts to accommodate and manage the increasing diversity of its own
workforce.
IMPLEMENTATION
----------------------------------------------------- Chapter 29:2.9.3
Not Implemented--No Action Taken. The NPR staff drafted an Executive
Order on Equal Employment Opportunity matters and forwarded it to the
Office of the Vice President. No action has occurred on the draft
order. According to an NPR representative, it is anticipated that
the order will reinforce the need for agency heads to carry out their
existing responsibilities rather than prescribe new responsibilities.
Until the order is issued, the extent to which it will address the
NPR recommendation or help achieve the NPR's objective is unknown.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 29:2.9.4
Federal Affirmative Employment: Better Guidance Needed for Small
Agencies (GAO/GGD-94-71, July 21, 1994).
Federal Personnel: The EEO Implications of Reductions-In-Force
(GAO/GGD-94-87, Feb. 1, 1994).
EEOC: Federal Affirmative Planning Responsibilities
(GAO/T-GGD-94-20, Oct. 13, 1993).
Federal Employment: Inquiry Into Sexual Harassment Issues at
Selected VA Medical Centers (GAO/GGD-93-119, June 30, 1993).
Affirmative Employment: Assessing Progress of EEO Groups in Key
Federal Jobs Can Be Improved (GAO/GGD-93-65, Mar. 8, 1993).
Health and Human Services: Update on Hispanic Representation in HHS
Region VIII (GAO/GGD-93-47FS, Dec. 30, 1992).
The Public Service (GAO/OCG-93-7TR, Dec. 1992).
Federal Affirmative Employment: Status of Women and Minority
Representation in Federal Law Enforcement Occupations
(GAO/T-GGD-93-2, Oct. 1, 1992).
The Changing Workforce: Demographic Issues Facing the Federal
Government (GAO/GGD-92-38, Mar. 24, 1992).
Federal Workforce: Continuing Need for Federal Affirmative
Employment (GAO/GGD-92-27BR, Nov. 27, 1991).
Federal Affirmative Employment: Status of Women and Minority
Representation in the Federal Workforce (GAO/T-GGD-91-32, May 16,
1991, and GAO/T-GGD-92-2, Oct. 23, 1991).
Federal Affirmative Action: Better EEOC Guidance and Agency Analysis
of Underrepresentation Needed (GAO/GGD-91-86, May 10, 1991).
Equal Employment: Minority Representation at USDA's National
Agricultural Statistics Service (GAO/GGD-91-31BR, Mar. 18, 1991).
EEO at Justice: Progress Made But Underrepresentation Remains
Widespread (GAO/GGD-91-8, Oct. 2, 1990).
Equal Employment Opportunity: Representation of Minorities and White
Women at Fort Lee Army Post, Virginia (GAO/GGD-90-27, Jan. 17,
1990).
Disabled Veterans' Employment: Performance Standards Needed to
Assess Program Results (GAO/GGD-89-45, Feb. 28, 1989).
Achieving Representation of Minorities and Women in the Federal Work
Force (GAO/FPCD-81-5, Dec. 3, 1980).
HRM10: IMPROVE INTERAGENCY
COLLABORATION AND CROSS
TRAINING FOR HUMAN RESOURCE
PROFESSIONALS
------------------------------------------------------ Chapter 29:2.10
Establish an Interagency Equal Employment Opportunity and Affirmative
Employment (EEO/AE) Steering Group under the joint chair of the Equal
Employment Opportunity Commission (EEOC) and the Office of Personnel
Management. Require appropriate cross training for human resource
management professionals.
ACTION ITEMS
---------------------------------------------------- Chapter 29:2.10.1
1. Establish an Interagency Equal Employment Opportunity and
Affirmative Employment Steering Group under the joint chair of EEOC
and OPM.
2. Require appropriate cross training for human resource management
professionals.
3. Combine all equal opportunity and affirmative employment reports
into one comprehensive assessment of the total workforce EEO/AE data.
4. Modify the Central Personnel Data File to enable total automation
of the EEO/AE data reporting requirements.
GAO COMMENTS
---------------------------------------------------- Chapter 29:2.10.2
Insufficient Information. This recommendation seems reasonable, but
it is not an issue we have examined.
IMPLEMENTATION
---------------------------------------------------- Chapter 29:2.10.3
Not Implemented--Action Taken. The preliminary steps taken toward
implementation of this recommendation appear to be consistent with
the recommendation's objectives. According to NPR staff, a draft
presidential memorandum has been prepared establishing an Interagency
Equal Employment Opportunity and Affirmative Employment Steering
Group under the joint chair of EEOC and OPM. If approved, the
steering group's objective would be to establish common goals for
personnel and EEO functions.
OPM is working with EEOC to modify the personnel management training
curriculum to incorporate a cross-training feature. According to
OPM, several agencies have strategically linked cross-training
initiatives with improved customer service and the changing role of
the human resource professional.
In December 1993, a joint OPM/EEOC process was begun to combine equal
employment and affirmative employment reports. OPM requested EEOC to
implement the process through a new EEOC Management Directive issued
for comment on May 19, 1994. An interagency group is also working to
automate the equal employment and affirmative employment data
reporting requirements for the Central Personnel Data File.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 29:2.10.4
None.
HRM11: STRENGTHEN THE
SENIOR EXECUTIVE SERVICE
(SES) SO THAT IT BECOMES A
KEY ELEMENT IN THE
GOVERNMENTWIDE CULTURE
CHANGE EFFORT
------------------------------------------------------ Chapter 29:2.11
Create and reinforce a corporate perspective within the SES that
supports governmentwide culture change. Promote a corporate
succession planning model to use to select and develop senior staff.
Enhance voluntary mobility within and between agencies for top senior
executive positions in government.
ACTION ITEMS
---------------------------------------------------- Chapter 29:2.11.1
1. Create and reinforce a corporate perspective within the Senior
Executive Service that supports governmentwide culture change.
2. Promote an agency corporate executive level succession planning
model.
3. Enhance voluntary mobility within and between agencies for top
senior executive positions in government.
GAO COMMENTS
---------------------------------------------------- Chapter 29:2.11.2
Generally Agree. Although this recommendation is not very specific,
it appears to be intended to achieve a more governmentwide approach
to SES matters. We believe this idea may have merit. The SES has
not been the highly mobile cadre of managers envisioned by the Civil
Service Reform Act. Our work has also shown that relatively few SES
appointees completed candidate development programs designed to
enhance their managerial skills.
IMPLEMENTATION
---------------------------------------------------- Chapter 29:2.11.3
Not Implemented--Action Taken. While many decisions remain to be
made on how the SES will be managed and structured, actions are being
taken toward implementing this recommendation. Among the actions OPM
has taken are (1) establishing an Executive Resources Management
Group as an interagency forum to share information and study
governmentwide SES issues, (2) preparing new executive core
qualifications, (3) delegating to agencies the authority to determine
the training experiences appropriate for their SES candidate
development programs using criteria established by OPM, (4)
distributing background material on successful succession planning to
agency personnel executives, (5) establishing a working group to
develop succession planning models for use by agencies, and (6)
preparing a draft brochure on executive mobility.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 29:2.11.4
Senior Executive Service: Opinions About the Federal Work
Environment (GAO/GGD-92-63, May 1, 1992).
Senior Executive Service: Training and Development of Senior
Executives (GAO/GGD-89-127, Sept. 29, 1989).
Senior Executive Service: The Extent to Which SES Members Have Used
the Sabbatical Program (GAO/GGD-88-90, Aug. 4, 1988).
Senior Executive Service: Executives' Perspectives on Their Federal
Service (GAO/GGD-88-109FS, July 20, 1988).
Senior Executive Service: Reasons the Candidate Development Program
Has Not Produced More SES Appointees (GAO/GGD-88-47, Apr. 20, 1988).
Federal Workforce: Data on Training Received by Agency Executives,
Managers, and Supervisors (GAO/GGD-88-18FS, Nov. 30, 1987).
Implementation of the Navy's Program to Rotate Career SES Members
(GAO/GGD-88-4, Oct. 5, 1987).
Agencies' Use of the Candidate Development Program (GAO/GGD-86-93,
July 14, 1986).
HRM12: ELIMINATE EXCESSIVE
RED TAPE AND AUTOMATE
FUNCTIONS AND INFORMATION
------------------------------------------------------ Chapter 29:2.12
Phase out the entire 10,000 page Federal Personnel Manual (FPM) and
all agency implementing directives by December 1994. Replace the FPM
and agency directives with automated personnel processes, electronic
decision support systems and "manuals" tailored to user needs.
ACTION ITEMS
---------------------------------------------------- Chapter 29:2.12.1
1. Phase out the entire Federal Personnel Manual and all agency
implementing directives.
2. Replace the Federal Personnel Manual and agency directives with
automated personnel processes, electronic decision support systems,
and manuals tailored to user needs.
3. Identify and develop useful accountability measures that can be
automated.
GAO COMMENTS
---------------------------------------------------- Chapter 29:2.12.2
Insufficient Information. In general, the FPM and agency directives
provide guidance to federal managers on how to interpret and apply
the statutes pertaining to federal employment. To the extent that
they can be simplified and automated, they could possibly better
accomplish their purposes. While we believe the recommendation's
objective is sound, we have no opinion on the amount of effort and
cost it would take to automate and reengineer the work processes.
Nor do we have an opinion on the prospects of developing and having
replacement processes, systems, and manuals in place by December
1994. We note, however, that major automation initiatives tend to be
costly.
IMPLEMENTATION
---------------------------------------------------- Chapter 29:2.12.3
Not Implemented--Action Taken. Working with agency representatives,
unions, the Interagency Advisory Group, and the National Partnership
Council, OPM abolished the FPM in January 1994. Of the total manual,
30 chapters were abolished outright, 6 chapters were provisionally
retained until December 1994, and 52 chapters were either retained in
part or may be retained in some other format. OPM also published a
notification in the Federal Register that it will be incorporating
certain guidance previously in the FPM into regulation. Thus, while
the FPM has been eliminated in form, it has not been completely
eliminated in substance. According to an NPR representative, 23
agencies had initiatives under way to significantly reduce the amount
of their internal regulations.
Under the leadership of OPM and the Department of Defense, a Human
Resources Automation Consortium was created to construct an automated
governmentwide personnel network. The consortium opened a "model
personnel office" incorporating currently available automated systems
in Crystal City, Virginia. In addition, OPM is developing new
electronic job application and applicant evaluation systems,
electronic bulletin boards, and live satellite broadcasts as means of
providing guidance and assistance to agencies. And, according to the
NPR representative, 24 agencies have initiated personnel system
automation projects.
OPM is working with an interagency advisory group to define
accountability in a customer context. According to OPM, the work
group will focus on customer service standards, benchmarks, and
measurement methods, and will distribute a governmentwide human
resources customer satisfaction survey.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 29:2.12.4
Federal Personnel Management: OPM Reliance on Agency Oversight of
Personnel System Not Fully Justified (GAO/GGD-93-24, Dec. 8, 1992).
HRM13: FORM
LABOR-MANAGEMENT
PARTNERSHIPS FOR SUCCESS
------------------------------------------------------ Chapter 29:2.13
Identify labor-management partnerships as a goal of the executive
branch and establish the National Partnership Council.
ACTION ITEM
---------------------------------------------------- Chapter 29:2.13.1
The President should issue an executive order that identifies
labor-management partnership as a goal of the executive branch and
establishes the National Partnership Council.
GAO COMMENTS
---------------------------------------------------- Chapter 29:2.13.2
Agree. Based on our evaluation of the state of the federal
labor-management relations program, we concluded that the program is
not accomplishing its objectives. We recommended that a panel of
nationally recognized experts in labor-management relations and
participants in the federal program be convened to develop a proposal
for comprehensive program reform. In our opinion, the National
Partnership Council is an appropriate body to serve that purpose. It
should be recognized that, depending on the matters made subject to
collective bargaining in a revised program, considerable training for
federal managers on bargaining strategies and methods could be
required since few matters are now subject to bargaining.
IMPLEMENTATION
---------------------------------------------------- Chapter 29:2.13.3
Fully Implemented. Executive Order 12871, signed by the President on
October 1, 1993, established the National Partnership Council. The
Council is composed of representatives of the three largest federal
employee unions, the Public Employee Department of the AFL-CIO, and
seven federal agencies. Among the Council's responsibilities are
advising the President on labor-management relations, supporting the
creation of labor-management partnerships and promoting partnership
efforts, and proposing legislative changes related to labor
relations. The executive order also required federal agencies to
create labor-management partnerships. The Council issued its report
to the President on January 31, 1994. According to the report, the
Council plans to pursue an active program of information gathering,
guidance, and training related to partnership activities.
A number of agencies have formed national and local councils and
signed partnership agreements with their employee unions. Some of
the partnership agreements were the result of Quality Management and
related initiatives that preceded Executive Order 12871.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 29:2.13.4
The Federal Labor-Management Relations Program (GAO/T-GGD-92-8, Nov.
19, 1991).
Federal Labor Relations: A Program in Need of Reform
(GAO/GGD-91-101, July 30, 1991).
HRM14: PROVIDE INCENTIVES
TO ENCOURAGE VOLUNTARY
SEPARATIONS
------------------------------------------------------ Chapter 29:2.14
Provide departments and agencies with the authority to offer
separation pay. Decentralize the authority to approve early
retirement. Authorize departments and agencies to fund job search
activities and retraining of employees scheduled to be displaced.
Limit annual leave accumulation by senior executives to 240 hours.
ACTION ITEMS
---------------------------------------------------- Chapter 29:2.14.1
1. Provide departments and agencies with the authority to offer
separation pay.
2. Decentralize the authority to approve early retirement.
3. Authorize departments and agencies to fund job search activities
and retraining of employees scheduled to be displaced.
4. Expand outplacement services.
5. Limit annual leave accumulation by senior executives to 240
hours.
GAO COMMENTS
---------------------------------------------------- Chapter 29:2.14.2
Insufficient Information. This recommendation is based on the
premise that the government has too many employees and should be
reduced by offering employees opportunities and incentives to leave.
The NPR report does not clearly indicate how many employees, if any,
are excess or how the determination was made that agencies have more
employees than they need to accomplish their missions. We have long
maintained that the numbers and types of employees needed should be
determined through sound workforce planning procedures. We see no
apparent relationship between the downsizing issue and the
accumulation of annual leave by senior executives.
IMPLEMENTATION
---------------------------------------------------- Chapter 29:2.14.3
Partially Implemented. The Federal Workforce Restructuring Act of
1994 required a reduction of 272,900 full-time equivalent positions
during fiscal years 1994 through 1999, and authorized payments of up
to $25,000 to employees who take early or regular retirement or
resign during periods specified by the employing agencies.
Accordingly, the part of the recommendation calling for payments to
separating employees has been adopted. The act also provided that
agencies may train any employee for placement in another agency if
the head of the losing agency determined that the training would be
in the interest of the government. OPM also established a work group
to examine job search issues.
While OPM retained the responsibility for approving agency early
retirement authorization requests, it implemented procedures to
approve them quickly and increased agency prerogatives on how early
retirements could be administered. Legislation to implement the part
of the recommendation calling for agencies to fund job search
activities and retraining of employees scheduled to be displaced has
not been approved.
OPM implemented the Interagency Placement Program (IPP) on December
1, 1993, to find jobs in other agencies for employees displaced by
downsizing. When filling vacancies from competitive registers or
through the use of direct hire authorities, agencies must consult the
IPP before hiring applicants with no prior federal service.
The Government Management Reform Act, enacted on October 13, 1994,
limits SES members' annual leave accumulation to 720 hours. Thus, it
did not accomplish the NPR recommendation that the accumulation limit
be 240 hours. We were advised that neither OPM nor NPR would push
for further limitations.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 29:2.14.4
Federal Employment: The Results to Date of the Fiscal Year 1994
Buyouts at Non-Defense Agencies (GAO/T- GGD-94-214, Sept. 22, 1994).
Federal Employment: Displaced Federal Workers Can Be Helped by
Expanding Existing Programs (GAO/GGD-92-86, May 5, 1992).
The Changing Workforce: Demographic Issues Facing the Federal
Government (GAO/GGD-92-38, Mar. 24, 1992).
Federal Employees: Early Retirements in the Department of Defense
(GAO/GGD-89-53FS, Feb. 23, 1989).
Federal Workforce: How Certain Agencies Are Implementing the Grade
Reduction Program (GAO/GGD-86-33, Jan. 3, 1986).
Information on the Administration's Program to Reduce Grade 11-15
Positions (GAO/GGD-85-48, Mar. 28, 1985).
REINVENTING FEDERAL PROCUREMENT
(PROC)
=========================================================== Chapter 30
OVERALL SUMMARY
--------------------------------------------------------- Chapter 30:1
Enactment of comprehensive procurement reform legislation in October
1994, coupled with notable executive agency initiatives in several
areas, resulted in actions that we believe "fully implemented" 2 NPR
recommendations and "partially implemented" 15 of the remaining 18
recommendations. Actions have been taken to implement the remaining
three NPR recommendations in this section. To implement NPR's
recommendation to incorporate such principles as customer focus in
procurement, the administration issued Executive Order 12931 in
October 1994. The Federal Acquisition Streamlining Act of 1994 fully
implements the NPR recommendation to authorize multiyear contracts
and allow contracts for severable services to cross fiscal years.
The act made other legislative changes NPR recommended, which should
improve procurement system operations, workforce, and culture.
Specifically, the act will permit procurement officials to build an
innovative workforce, test new procurement methods, use simplified
acquisition procedures more frequently, amend certain protest rules,
enhance programs for small and small disadvantaged businesses,
increase use of purchase cards and federal supply schedules, make it
easier to buy commercial items, establish a governmentwide electronic
commerce program, encourage best value procurement, promote
excellence in vendor performance, and conform requirements for
civilian and defense agencies' procurements. The act did not include
provisions to authorize use of a two-phase competitive source
selection process for certain types of contracts, as recommended by
NPR.
Executive agencies and departments addressed several NPR action items
through various initiatives, particularly in the areas of simplified
acquisition procedures, use of purchase cards, acquisition labor laws
and regulations, information technology procurements, electronic
commerce, commercial item procurements, best value buying, and buying
for the environment. We strongly support procurement reform, the
reform legislation, and agencies' reform actions. To sustain this
noteworthy progress and translate the NPR and legislative reform
goals into day-to-day operating realities will require government
procurement officials to develop and implement long-term strategies
and programs.
GAO CONTACT
------------------------------------------------------- Chapter 30:1.1
David E. Cooper, Director, Acquisition Policy, Technology and
Competitiveness Issues, National Security and International Affairs
Division, (202) 512-4587.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 30:2
PROC01: REFRAME ACQUISITION
POLICY
------------------------------------------------------- Chapter 30:2.1
Convert the 1,600 pages of the Federal Acquisition Regulation (FAR)
from a set of rigid rules to a set of guiding principles.
ACTION ITEMS
----------------------------------------------------- Chapter 30:2.1.1
1. Convert the Federal Acquisition Regulation from rigid rules to
guiding principles.
2. Implement the procurement reform plan.
GAO COMMENTS
----------------------------------------------------- Chapter 30:2.1.2
Insufficient Information. The Office of Federal Procurement Policy
(OFPP), within the Office of Management and Budget (OMB), is
reviewing several possible approaches to rewriting the FAR.
Information on specific changes is not yet available.
IMPLEMENTATION
----------------------------------------------------- Chapter 30:2.1.3
Not Implemented--Action Taken. OFPP established an interagency group
of senior officials to implement this recommendation. OFPP published
(1) proposed guiding principles to define and guide the government's
general vision for the acquisition process and (2) alternative
approaches for rewriting the FAR. OFPP requested written comments
and also held a public meeting to receive ideas and suggestions.
OFPP is reviewing these comments, ideas, and suggestions. OFPP
officials told us that a plan to rewrite the FAR has not yet been
developed.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 30:2.1.4
None.
PROC02: BUILD AN INNOVATIVE
PROCUREMENT WORKFORCE
------------------------------------------------------- Chapter 30:2.2
Establish an interagency program to improve the governmentwide
procurement workforce. Provide civilian agencies with authority for
improving the acquisition workforce similar to that of the Defense
Department's.
ACTION ITEMS
----------------------------------------------------- Chapter 30:2.2.1
1. Establish an interagency program to improve the federal
government's procurement workforce.
2. Provide civilian agencies with authority similar to DOD's for
improving the acquisition workforce.
GAO COMMENTS
----------------------------------------------------- Chapter 30:2.2.2
Agree. We strongly support efforts to improve the management,
training, and career development of the procurement workforce
governmentwide. We believe all agencies, civilian as well as
military, should have the authority needed to improve acquisition
workforce management and training. However, we have not specifically
addressed the applicability to civilian agencies of the Defense
Department's authority and initiatives in acquisition workforce
issues.
IMPLEMENTATION
----------------------------------------------------- Chapter 30:2.2.3
Partially Implemented. The NPR Accompanying Report calls for the
Administrator, General Services Administration (GSA), to develop a
plan to fund Federal Acquisition Institute (FAI) programs to improve
the governmentwide procurement workforce. The OFPP Administrator is
responsible for recommending a sufficient budget for the FAI to the
GSA. OFPP recommended that the fiscal year 1996 GSA budget include a
one-time increment of $950,000 to enable FAI to (1) complete the
courses in the competency-based skills development program for
contract specialists, and (2) develop and pilot test instruction in
procurement to be delivered via desktop computers so that contracting
personnel can receive training and instruction on an interactive
basis in their office environment. GSA forwarded the OFPP
recommended FAI initiatives to OMB, but not as part of the GSA
appropriations budget request. The FAI initiatives will not be
funded unless OMB includes additional resources in the fiscal year
1996 GSA budget for them.
The Federal Acquisition Streamlining Act of 1994 provides civilian
agencies with authority similar to DOD's for improving the
acquisition workforce. Among other things, the act requires the
Deputy Director for Management of OMB to: (1) establish policies and
procedures for designating acquisition positions and managing
employees (including the accession, education, training, and career
development of employees) in the designated acquisition positions,
and (2) review the incentives and personnel actions available for
encouraging excellence in the federal acquisition workforce. In
addition, Executive Order 12931, dated October 13, 1994, requires
heads of executive agencies to establish career education programs
and enhance development of the procurement workforce.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 30:2.2.4
Department of Energy: Challenges to Implementing Contract Reform
(GAO/RCED-94-150, Mar. 21, 1994).
Acquisition Management: Implementation of the Defense Acquisition
Workforce Improvement Act (GAO/NSIAD-93-129, Apr. 26, 1993).
Acquisition Management: Waivers to Acquisition Work Force Training,
Education, and Experience Requirements (GAO/NSIAD-93-128, Mar. 30,
1993).
Weapons Acquisition: A Rare Opportunity for Lasting Change
(GAO/NSIAD-93-15, Dec. 1992).
Defense Management: Implementation of the Defense Acquisition
Workforce Improvement Act (GAO/NSIAD-92-97, Jan. 31, 1992).
Acquisition Reform: DOD's Efforts to Streamline Its Acquisition
System and Reduce Personnel (GAO/NSIAD-90-21, Nov. 1, 1989).
Procurement Personnel: Information on the Procurement Workforce
(GAO/GGD-88-7, Nov. 5, 1987).
PROC03: ENCOURAGE MORE
PROCUREMENT INNOVATION
------------------------------------------------------- Chapter 30:2.3
Provide new legislative authority to test innovative procurement
methods. Establish a mechanism to disseminate information
governmentwide on innovative procurement ideas.
ACTION ITEMS
----------------------------------------------------- Chapter 30:2.3.1
1. Provide new legislative authority to test innovative procurement
methods.
2. Provide resources to the Federal Acquisition Institute to support
innovative, new ideas and procurement techniques.
3. Identify a steering group for the Federal Acquisition Institute's
research.
GAO COMMENTS
----------------------------------------------------- Chapter 30:2.3.2
Generally Agree. We support agency testing of innovative procurement
methods and believe that establishing means to publicize innovative
ideas could be beneficial. Adequate controls and oversight over
testing should be maintained, however.
IMPLEMENTATION
----------------------------------------------------- Chapter 30:2.3.3
Partially Implemented. The Federal Acquisition Streamlining Act of
1994 authorizes the OFPP Administrator to test alternative and
innovative procurement procedures. The act further stipulates that
OFPP not take action to use the test authority at an agency before
the date on which the agency head certifies to Congress that it has
implemented full electronic commerce capability. In February 1994,
the former Associate Administrator for Acquisition Policy, GSA,
recommended funding Federal Acquisition Institute (FAI) initiatives
to (1) develop and pilot test an electronic acquisition curriculum,
and (2) determine the feasibility, costs, and benefits of
establishing a research consortium, including both public and private
sector research activities. There is no funding in the GSA fiscal
year 1996 appropriations budget request for either of these
initiatives. OFPP officials said the recommendation to establish a
steering group to oversee and set strategy for FAI research has
merit; however, OFPP has not yet identified the group.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 30:2.3.4
Department of Energy: Challenges to Implementing Contract Reform
(GAO/RCED-94-150, Mar. 21, 1994).
Procurement Reform: Comments on Proposed Federal Acquisition
Streamlining Act (GAO/T-OGC-94-1, Mar. 10, 1994).
Acquisition Reform: DOD Acquisition Law Advisory Panel's Operations
and Report (GAO/NSIAD-94-5, Dec. 1, 1993).
Defense Inventory: Applying Commercial Purchasing Practices Should
Help Reduce Supply Costs (GAO/NSIAD-93-112, Aug. 6, 1993).
Commercial Practices: DOD Could Save Millions by Reducing
Maintenance and Repair Inventories (GAO/NSIAD-93-155, June 7, 1993).
Food Inventory: Using Private Sector Practices Can Reduce Costs and
Eliminate Problems (GAO/NSIAD-93-110, June 4, 1993).
Procurement Reform: Comments on Proposed Acquisition Improvement Act
of 1993 (GAO/T-OGC-93-1, May 25, 1993).
Government Management Issues (GAO/OCG-93-3TR, Dec. 1992).
Multiple Award Schedule Purchases: Improvements Needed Regarding
Publicizing Agencies' Orders (GAO/NSIAD-92-88, May 12, 1992).
Procurement: DOD Efforts Relating to Nondevelopmental Items
(GAO/NSIAD-89-51, Feb. 7, 1989).
PROC04: ESTABLISH NEW
SIMPLIFIED ACQUISITION
THRESHOLD AND PROCEDURES
------------------------------------------------------- Chapter 30:2.4
Enact legislation to simplify small purchases by raising the
threshold for the use of simplified acquisition procedures from
$25,000 to $100,000 and raise the various thresholds for the
application of over a dozen other statutory requirements that
similarly complicate the process. To ensure small business
participation, establish a single electronic bulletin board
capability to provide access to information on contracting
opportunities.
ACTION ITEMS
----------------------------------------------------- Chapter 30:2.4.1
1. Enact legislation simplifying procurement.
2. Enact legislation simplifying Department of Defense unique
procurement requirements.
3. Establish a single electronic bulletin board capability to
provide access to information on contracting opportunities.
4. Revise agency acquisition-related regulations to eliminate
internal barriers.
5. Develop a pamphlet on statutory acquisition requirements for
distribution to small businesses.
GAO COMMENTS
----------------------------------------------------- Chapter 30:2.4.2
Generally Agree. We support recommendations such as these which, if
effectively implemented, can (1) increase the productivity of a
shrinking federal workforce, (2) reduce costs for both the government
and its suppliers, and (3) enhance federal contracting opportunities
for small businesses. We believe that an electronic commerce (EC)
capability that employs nationally accepted industry standards can
help to achieve these reform goals.
IMPLEMENTATION
----------------------------------------------------- Chapter 30:2.4.3
Partially Implemented. The Federal Acquisition Streamlining Act of
1994 establishes a new simplified acquisition threshold at $100,000,
and waives numerous laws for purchases below that amount. Simplified
acquisition procedures are initially authorized for all contracts
below $50,000, subject to the requirement that notice of solicitation
be published in the Commerce Business Daily for contracts above
$25,000. Waivers of notice and use of simplified procedures for
contracts up to $100,000 are permitted under the act for the next 5
years for agencies with an interim level of EC capability. After 5
years, however, the authorization for the use of simplified
procedures reverts to $50,000 for any agency that has not achieved
full electronic commerce capability.
On October 26, 1993, the President signed an executive memorandum on
"Streamlining Procurement through Electronic Commerce," which
requires, among other things, that electronic commerce be implemented
for appropriate federal purchases as quickly as possible. In a
September 21, 1994, memorandum, the OMB Acting Director provided
guidance to the heads of executive departments and agencies to assist
them in developing their long-range EC implementation plans. The
guidance requires agencies and departments to focus their plans on
small purchases, including milestones and estimated costs for
integrating existing electronic small purchase systems and bulletin
boards into the governmentwide EC program, to support a single face
to industry. OMB began reviewing the agencies' implementation plans
in October 1994.
The Federal Acquisition Regulatory Council has adopted an action plan
that establishes regulation writing teams and milestones for
developing the implementing regulations for the Federal Acquisition
Streamlining Act of 1994. In addition, federal agencies have
reported to the NPR that they are in the process of reviewing their
internal regulations to ensure that they (1) do not impede the
objectives of simplified purchasing, and (2) comply with the
statutory requirements of the act.
OMB and the Small Business Administration are coordinating outreach
and training activities to inform small businesses about changes in
government procurement policies, including new statutory requirements
applicable to purchases made using simplified acquisition procedures.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 30:2.4.4
Procurement Reform: Comments on Proposed Federal Acquisition
Streamlining Act (GAO/T-OGC-94-1, Mar. 10, 1994).
Defense IRM: Business Strategy Needed for Electronic Data
Interchange Program (GAO/AIMD-94-17, Dec. 9, 1993).
NASA Procurement: Planning for Pilot Test of New Procurement
Procedures Is Adequate (GAO/NSIAD-94-67, Nov. 4, 1993).
NASA: Major Challenges for Management (GAO/T-NSIAD-94-18, Oct. 6,
1993).
Procurement Reform: Comments on Proposed Acquisition Improvement Act
of 1993 (GAO/T-OGC-93-1, May 25, 1993).
Multiple Award Schedule Purchases: Improvements Needed Regarding
Publicizing Agencies' Orders (GAO/NSIAD-92-88, May 12, 1992).
PROC05: REFORM LABOR LAWS
AND TRANSFORM THE LABOR
DEPARTMENT INTO AN EFFICIENT
PARTNER FOR MEETING PUBLIC
POLICY GOALS
------------------------------------------------------- Chapter 30:2.5
Enact legislation to simplify acquisition labor laws such as the
Davis-Bacon Act, the Copeland Act, and the Service Contract Act.
Improve access to wage schedules through an on-line electronic
system.
ACTION ITEMS
----------------------------------------------------- Chapter 30:2.5.1
1. Enact legislation to simplify acquisition labor laws.
2. Amend Executive Order 11755 to incorporate convict labor
provisions upon repeal of the Walsh-Healey Public Contracts Act.
3. Provide on-line access to Davis-Bacon Act wage schedules through
an electronic system.
4. Revise labor regulations to improve service.
GAO COMMENTS
----------------------------------------------------- Chapter 30:2.5.2
Generally Agree. We believe that simplification of acquisition labor
laws is a step in the right direction. One step we support to
further this simplification is to consolidate Davis-Bacon functions,
now shared by the Department of Labor (DOL) and GAO, in DOL. While
we have not specifically addressed the issue of access to wage
schedules through on-line electronic systems, we believe it
represents good business practices.
IMPLEMENTATION
----------------------------------------------------- Chapter 30:2.5.3
Partially Implemented. In 1993, one bill to repeal the Davis-Bacon
Act and other bills to amend it and the Copeland Act were introduced
in Congress. A 1994 proposal (S. 2328) would have revised and
simplified these two laws, as well as the Contract Work Hours and
Safety Standards Act and the Service Contract Act.
A measure to repeal the Walsh-Healey Public Contracts Act (except for
certain definitional provisions) was included in S. 1587, as passed
by the Senate in June 1994. While this measure was not in the final
version of the Federal Acquisition Streamlining Act of 1994, the act
does amend Walsh-Healey to eliminate requirements that contractors
certify themselves as manufacturers or regular dealers of items
supplied to the federal government. Since the Walsh-Healey
provisions on convict labor have not been repealed, there is no need
to amend Executive Order 11755. In February 1994, Davis-Bacon Act
wage determinations became available on an electronic bulletin board
operated by the National Technical Information Service. To improve
service, DOL (1) proposed making preaward equal employment
opportunity compliance reviews optional and (2) is developing revised
labor regulations to require hearings be held on substantial variance
cases under the Service Contract Act and decisions rendered within 60
calendar days.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 30:2.5.4
Government Contractors: Measuring Costs of Service Contractors
Versus Federal Employees (GAO/GGD-94-95, Mar. 10, 1994).
Changes to Davis-Bacon Act Regulations and Administration
(GAO/HEHS-94-95R, Feb. 7, 1994).
The Congress Should Consider Repeal of the Service Contract Act
(GAO/HRD-83-4, Jan. 31, 1983).
The Davis-Bacon Act Should Be Repealed (GAO/HRD-79-18, Apr. 27,
1979).
PROC06: AMEND PROTEST RULES
------------------------------------------------------- Chapter 30:2.6
Change the standard of review at the General Services Board of
Contract Appeals (GSBCA) to conform to that used in the relevant
courts. Allow penalties for frivolous protests. Allow contract
negotiation to continue up to the point of contract award, even
though a protest has been filed with the General Services Board of
Contract Appeals.
ACTION ITEMS
----------------------------------------------------- Chapter 30:2.6.1
1. Establish a uniform standard of review for all protest forums by
changing the standard of review at the GSBCA to conform to that used
in the courts.
2. Allow penalties for frivolous protests.
3. Establish a single forum within the judicial branch to consider
protests.
4. Allow continued performance of contracting functions up to the
point of contract award as part of any preaward suspension of the
delegation of procurement authority when a protest is filed with the
GSBCA.
5. Identify costs to the government and contractors of responding to
protests.
6. Identify and eliminate causes of protests and improve agency
processes.
GAO COMMENTS
----------------------------------------------------- Chapter 30:2.6.2
Insufficient Information. While we support efforts to enhance the
fairness and efficiency of the protest process, we have no work
specifically on these action items that would provide an adequate
basis for comment.
IMPLEMENTATION
----------------------------------------------------- Chapter 30:2.6.3
Partially Implemented. The Federal Acquisition Streamlining Act of
1994 allows contract negotiation up to the point of award, with
certain limitations, even though a protest has been filed with the
GSBCA; clarifies the authority of the GSBCA to review contracting
officer decisions, but does not change the GSBCA standard of review;
and authorizes GSBCA to impose appropriate procedural sanctions,
including dismissal, for a frivolous protest. The act does not adopt
language from an earlier House bill that would have explicitly
authorized the GSBCA to impose on a protestor bringing a frivolous
protest liability for the government's costs in defending against it.
We are not aware of any efforts to identify costs to the government
and contractors of responding to protests. In March 1994, however,
OFPP issued a report, based on a survey of senior agency procurement
executives, addressing the effect of protest delay on the
government's ability to acquire current computer technology. OFPP's
survey results suggested that agencies are taking steps to ensure
that they are not receiving outmoded technology as a result of
protest delays. Also, OFPP's survey indicated that, at times,
agencies may experience a cost impact from continuing to use outmoded
technology while awaiting resolution of protests. The Federal Bar
Association has offered its assistance to OFPP to conduct an analysis
of economic costs, as well as economic benefits, of the current
protest process, if OFPP decides this information is needed.
With respect to identifying causes of protests, GSA officials told us
that GSA's Office of General Counsel identified the most common bases
of protests and is preparing multiple products. DOD officials told
us they routinely scrutinize available protest statistics; DOD has
not initiated a special study of the causes of protests.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 30:2.6.4
ADP Bid Protests: Better Disclosure and Accountability of
Settlements Needed (GAO/GGD-90-13, Mar. 30, 1990).
PROC07: ENHANCE PROGRAMS
FOR SMALL BUSINESS AND SMALL
DISADVANTAGED BUSINESS
CONCERNS
------------------------------------------------------- Chapter 30:2.7
Repeal statutory limitations on subcontracting and substitute
regulatory limitations to provide greater flexibility. Authorize
civilian agencies to establish small disadvantaged business
set-asides.
ACTION ITEMS
----------------------------------------------------- Chapter 30:2.7.1
1. Repeal statutory limitations on subcontracting and substitute
regulatory limitations to provide greater flexibility.
2. Authorize civilian agencies to conduct small disadvantaged
business set-asides.
3. Permit state and local governments to substitute descriptions of
their own programs for subcontracting and exempt monopolies regulated
by governmental bodies.
4. Demonstrate the continued commitment to small and small
disadvantaged businesses through issuance of a presidential
directive.
GAO COMMENTS
----------------------------------------------------- Chapter 30:2.7.2
Insufficient Information. Although we endorse efforts to improve
small and small disadvantaged business participation in the federal
marketplace, we have no work on these specific issues that would
provide an adequate basis for comment.
IMPLEMENTATION
----------------------------------------------------- Chapter 30:2.7.3
Partially Implemented. The Small Business Administration did not
include a proposal to repeal statutory limitations on subcontracting
in its 1994 legislative initiatives package. The Federal Acquisition
Streamlining Act of 1994 authorizes civilian agencies to conduct
small disadvantaged business set-aside competitions. The
administration submitted draft legislation to congressional
committees to (1) permit state and local governments to substitute
descriptions of their own programs for subcontracting and (2) exempt
utility monopolies regulated by governmental bodies from providing
subcontracting plans. However, these proposals were never introduced
as part of any acquisition reform bill. On September 16, 1994, the
President issued Executive Order 12928, "Promoting Procurement With
Small Businesses Owned and Controlled by Socially and Economically
Disadvantaged Individuals, Historically Black Colleges and
Universities, and Minority Institutions." Also, a presidential
memorandum, dated October 13, 1994, demonstrated the administration's
continued commitment to small, small disadvantaged, and small
women-owned businesses in federal procurement.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 30:2.7.4
Small Business: SBA Cannot Assess the Success of Its Minority
Business Development Program (GAO/T-RCED-94-278, July 27, 1994).
Small Business: Information on Participation in SBA's Bonding
Activities (GAO/RCED-94-134, Mar. 24, 1994).
Energy Management: DOE Can Improve Distribution of Dollars Awarded
Under SBA's 8(a) Program (GAO/RCED-94-28, Feb. 23, 1994).
Small Business: The Small Business Administration's Progress in
Restructuring Its Business Development Program (GAO/T-RCED-93-56,
Sept. 22, 1993).
Small Business: Problems Continue With SBA's Minority Business
Development Program (GAO/RCED-93-145, Sept. 17, 1993).
DOD's Surety Bond Waiver Program (GAO/NSIAD-93-255R, Aug. 24, 1993).
Minority Contracting: DOD's Reporting Does Not Address Legislative
Goal (GAO/NSIAD-93-167, July 27, 1993).
Small Business: The Small Business Administration's Progress in
Restructuring Its 8(a) Business Development Program
(GAO/T-RCED-92-35, Mar. 4, 1992).
Small Business: Problems in Restructuring SBA's Minority Business
Development Program (GAO/RCED-92-68, Jan. 31, 1992).
PROC08: REFORM INFORMATION
TECHNOLOGY PROCUREMENTS
------------------------------------------------------- Chapter 30:2.8
Increase the delegation of authority to agencies to purchase
information technology. For purchases less than $500,000 for
products, and $2.5 million for services over the life of a contract,
eliminate in-depth requirements for analyses of alternatives. Pilot
test alternative ways of buying commercially available information
technology items.
ACTION ITEMS
----------------------------------------------------- Chapter 30:2.8.1
1. Establish an interagency team to develop a plan for improving
federal information technology acquisitions.
2. Increase information technology delegation of authority to
agencies.
3. Eliminate requirements and alternatives analyses for commodity
information technology acquisitions.
4. Pilot test alternatives for commodity information technology
acquisitions.
5. Identify and test innovative procurement strategies that reduce
the costs for information technology items.
GAO COMMENTS
----------------------------------------------------- Chapter 30:2.8.2
Generally Agree. We support increasing delegations of procurement
authority to those agencies that have a good information technology
acquisition track record. Given the history of widespread problems
in government information technology acquisitions, however, we do not
support increased delegations or relief from planning requirements
for agencies that do not have proven track records. Proper
evaluation of alternatives lessens the risk that agencies will select
alternatives that do not fully meet user requirements or are
unnecessarily complex and expensive. We believe the recommendation
to "eliminate in-depth requirements for analyses of alternatives" for
smaller acquisitions is unnecessary because the government's current
policy states that agencies should vary the depth of their analyses
based upon the size and complexity of their requirements. We support
pilot-testing of alternative methods of acquisition.
IMPLEMENTATION
----------------------------------------------------- Chapter 30:2.8.3
Partially Implemented. An interagency team to improve the federal
information technology acquisition process delivered a final report
to the GSA Administrator in May 1994. The report contains 42
comprehensive recommendations for improving and streamlining the
information technology acquisition process. GSA drafted amendments
to the Federal Information Resources Management Regulation to (1)
increase delegation of authority to agencies to purchase information
technology and (2) adjust the requirements and alternatives analysis
thresholds to an $100,000 level. According to a GSA official, both
rules could be published in late 1994.
GSA (1) identified two pilot-test alternatives for commodity
information technology acquisitions and (2) plans to publish
information about innovative operational procurement strategies in
the federal government. In an ongoing pilot, NASA uses an electronic
bulletin board to disseminate advance procurement and solicitation
information and receive vendor offers electronically for acquisitions
between $25,000 and $500,000. In the other pilot, DOL plans to award
personal computer and support service contracts with options for
vendors to offer upgrades and repricing at 6-month intervals. To
reduce information technology acquisition costs, GSA now requires
software vendors to offer their complete line of software under
right-to-copy licensing arrangements. GSA officials estimate that
buying right-to-copy licensing will result in a minimum of 25 percent
savings.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 30:2.8.4
Paperwork Reduction Act: Opportunity to Strengthen Government's
Management of Information and Technology (GAO/T-AIMD/GGD-94-126, May
19, 1994).
Executive Guide: Improving Mission Performance Through Strategic
Information Management and Technology (GAO/AIMD-94-115, May 1994).
Defense ADP Consolidation (GAO/AIMD-94-85R, Apr. 26, 1994).
Government Printing: Legal and Regulatory Framework Is Outdated for
New Technological Environment (GAO/NSIAD-94-157, Apr. 15, 1994).
Federal Research: Interim Report on the Pilot Technology Access
Program (GAO/RCED-94-75, Mar. 7, 1994).
DOD Computer Contracting: Inadequate Management Wasted Millions of
Dollars (GAO/IMTEC-93-31, June 25, 1993).
Information Technology: An Audit Guide for Assessing Acquisition
Risks (GAO/IMTEC-8.1.4, Dec. 1992).
Information Management and Technology Issues (GAO/OCG-93-5TR, Dec.
1992).
Perceived Barriers to Effective Information Resources
Management--Results of GAO Panel Discussions (GAO/IMTEC-92-67, Sept.
1992).
Information Resources: Summary of Federal Agencies' Information
Resources Management Problems (GAO/IMTEC-92-13FS, Feb. 13, 1992).
Major NIH Computer System: Poor Management Resulted in Unmet
Scientists' Needs and Wasted Millions (GAO/IMTEC-92-5, Nov. 4,
1991).
ADP Procurements: GSA Needs to Improve Its Review Process to Enhance
Its ADP Oversight (GAO/IMTEC-92-7, Oct. 28, 1991).
PROC09: LOWER COSTS AND
REDUCE BUREAUCRACY IN SMALL
PURCHASES THROUGH THE USE OF
PURCHASE CARDS
------------------------------------------------------- Chapter 30:2.9
Provide managers with the ability to authorize employees to purchase
small dollar value items directly using a government purchase card.
Require internal government supply sources to accept this card.
ACTION ITEMS
----------------------------------------------------- Chapter 30:2.9.1
1. Provide managers with the ability to authorize employees who have
a bona fide need to buy small dollar items directly using a purchase
card.
2. Require all government supply sources to accept the purchase
card.
3. Amend the Federal Acquisition Regulation to promote use of the
purchase card.
4. Amend Department of Treasury regulations to authorize the use of
the purchase card for cash advances.
GAO COMMENTS
----------------------------------------------------- Chapter 30:2.9.2
Agree. We have reported that, with adequate internal controls, the
small purchases credit card program can help agencies improve the
efficiency of their purchasing and payment processes when used for
purchases of $25,000 or less from both commercial and government
sources. The credit card program offers several benefits, such as
reduced paperwork, prompt receipt of items, improved management
information and audit capability, and a reduction in the number of
invoices and inquiries about payments.
IMPLEMENTATION
----------------------------------------------------- Chapter 30:2.9.3
Partially Implemented. The government's commercial purchase card
program began as a procurement reform initiative under Executive
Order 12352. In most cases, the card may be used to pay for all
commercially available goods and services under the small purchase
limit. Since October 1993, an Interagency Purchase Card Council has
been working to increase use of the card throughout the federal
government. As of September 1994, GSA statistics show that over
82,800 cards have been issued to employees of over 60 federal
agencies.
As of September 1994, Treasury authorized the following federal
supply sources to process purchase card transactions: GSA,
Government Printing Office, Federal Prison Industries, and Office of
Personnel Management. The Federal Acquisition Streamlining Act of
1994 simplifies procurement procedures for purchases of $2,500 or
less, including exemptions from certain statutory provisions.
Executive Order 12931, dated October 13, 1994, encourages executive
agencies to take maximum advantage of this micro-purchase authority
and to expand the use of government purchase cards. The current
contract for purchase card services prohibits card use for cash
advances. Treasury has deferred proposing regulations that would
authorize purchase card use for cash advances by imprest fund
cashiers because the need for such cashiers could be eliminated with
electronic commerce.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 30:2.9.4
Cash Management: Benefits and Limitations of the Small Purchases
Credit Card Program (GAO/AFMD-90-89BR, Sept. 11, 1990).
Cash Management: Diners Club Business Travel Management Program
Needs Improvement (GAO/AFMD-90-66, Apr. 30, 1990).
PROC10: ENSURE CUSTOMER
FOCUS IN PROCUREMENT
------------------------------------------------------ Chapter 30:2.10
Revise Procurement Management Reviews to incorporate NPR principles
such as "focusing on results" for the line managers.
ACTION ITEM
---------------------------------------------------- Chapter 30:2.10.1
Revise Executive Order 12352 to conform to the new vision for federal
procurement.
GAO COMMENTS
---------------------------------------------------- Chapter 30:2.10.2
Agree. We advocate the use of procurement management reviews as an
important tool in procurement planning, management, and oversight.
Our work shows that procurement management reviews can provide useful
information to improve agencies' procurement organizations and
operations. These reviews can incorporate principles advocated by
the NPR for greater effectiveness.
IMPLEMENTATION
---------------------------------------------------- Chapter 30:2.10.3
Fully Implemented. On October 13, 1994, the President revoked
Executive Order 12352 and issued Executive Order 12931, "Federal
Procurement Reform." The new order directs heads of executive
agencies to implement various principles advocated by the NPR,
including ensuring that their procurement organizations focus on
measurable results and give increased attention to understanding and
meeting customer needs.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 30:2.10.4
Air Traffic Control: Observations on Proposed Corporation
(GAO/T-RCED-94-210, May 12, 1994).
Air Traffic Control: Status of FAA's Modernization Program
(GAO/RCED-94-167FS, Apr. 15, 1994).
Advanced Automation System: Implications of Problems and Recent
Changes (GAO/T-RCED-94-188, Apr. 13, 1994).
Department of Energy: Challenges to Implementing Contract Reform
(GAO/RCED-94-150, Mar. 21, 1994).
Government Management Issues (GAO/OCG-93-3TR, Dec. 1992).
NASA Contract Management (GAO/HR-93-11, Dec. 1992).
ADP Procurements: GSA Needs to Improve Its Review Process to Enhance
Its ADP Oversight (GAO/IMTEC-92-7, Oct. 28, 1991).
PROC11: IMPROVE PROCUREMENT
ETHICS LAWS
------------------------------------------------------ Chapter 30:2.11
Create consistency across the government in the application of
procurement ethics laws.
ACTION ITEM
---------------------------------------------------- Chapter 30:2.11.1
Strengthen and simplify procurement ethics laws.
GAO COMMENTS
---------------------------------------------------- Chapter 30:2.11.2
Generally Agree. We support the reasoned and equitable application
of procurement ethics laws. Ethical conduct in the procurement area
is governed by several statutes, some of which contain overlapping
provisions. Some agencies, such as DOD, are subject to additional
statutory restrictions or requirements not applicable elsewhere in
the government. We have previously reported that agencies had
difficulty implementing some of these provisions.
IMPLEMENTATION
---------------------------------------------------- Chapter 30:2.11.3
Not Implemented--Action Taken. The Federal Acquisition Streamlining
Act of 1994 makes very few changes in procurement ethics laws. The
conference report accompanying the act states that the conferees
anticipated "a thorough review and reform of the procurement
integrity statutes in the next Congress." In the meantime, the act
suspends one post-employment, or "revolving door," law that places
special restrictions on retired military officers (18 U.S.C. 281)
through December 31, 1996. The act repeals another post-employment
law that restricted military officers (37 U.S.C. 801). The act
contains some exemptions. Government officials authorized to make
purchases of $2,500 or less, and totalling $20,000 or less annually,
are not considered "procurement officials" and are exempted from
certain controls which would otherwise have applied to them. In
addition, contractors for commercial item procurements are exempted
from some procurement integrity certification requirements.
OFPP officials told us that one of their current projects includes
identifying and encouraging the use of best practices that are needed
to balance (1) protecting the integrity of the acquisition process
and (2) allowing communications between government agencies and
industry that would improve procurements.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 30:2.11.4
Intelligence Programs: Inquiry Into Contracting Practices for a
Classified Program (GAO/NSIAD-94-109, Feb. 28, 1994).
VA Health Care: Enforcement of Federal Ethics Requirements at VA
Medical Centers (GAO/T-HRD-93-22, May 19, 1993).
VA Health Care: Inadequate Enforcement of Federal Ethics
Requirements at VA Medical Centers (GAO/HRD-93-39, Apr. 30, 1993).
Postal Procurement: Ethics Violations Did Not Invalidate an
Automation Contract (GAO/GGD-92-119, Aug. 13, 1992).
Superfund: EPA Has Not Corrected Long-Standing Contract Management
Problems (GAO/RCED-92-45, Oct. 24, 1991).
Implementation of the Certification Requirements of the Procurement
Integrity Law (GAO/T-NSIAD-91-05, Feb. 21, 1991).
PROC12: ALLOW FOR EXPANDED
CHOICE AND COOPERATION IN
THE USE OF SUPPLY SCHEDULES
------------------------------------------------------ Chapter 30:2.12
Allow state and local governments, grantees, and certain nonprofit
agencies to use federal supply sources. Similarly, allow federal
agencies to enter into cooperative agreements to share state and
local government supply sources.
ACTION ITEMS
---------------------------------------------------- Chapter 30:2.12.1
1. Allow state and local governments, grantees, and certain
nonprofit agencies to use federal supply contracts.
2. Allow federal agencies to enter into agreements to share state
and local government supply sources.
GAO COMMENTS
---------------------------------------------------- Chapter 30:2.12.2
Insufficient Information. While we have not specifically analyzed
this issue, we believe that allowing federal, state, and local
governments to share supply sources may offer opportunities to
increase the government supplier base and decrease costs of common
supplies and services at all levels of government.
IMPLEMENTATION
---------------------------------------------------- Chapter 30:2.12.3
Partially Implemented. The Federal Acquisition Streamlining Act of
1994 amended the Federal Property and Administrative Services Act to
permit use of GSA's federal supply schedules by state or local
governments, Puerto Rico, or Indian tribal governments. The entity
using the federal supply schedule may be required to reimburse GSA
for any administrative costs of using the schedule. There is no
provision in the act to allow federal agencies to enter into
cooperative agreements to share state and local government supply
sources.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 30:2.12.4
Farm Credit System: Costs for Office Space, Equipment, and Furniture
Compared to GSA's Costs (GAO/GGD-94-57, Jan. 7, 1994).
Multiple Award Schedule Contracting: Changes Needed in Negotiation
Objectives and Data Requirements (GAO/GGD-93-123, Aug. 25, 1993).
PROC13: FOSTER RELIANCE ON
THE COMMERCIAL MARKETPLACE
------------------------------------------------------ Chapter 30:2.13
Change laws to make it easier to buy commercial items. For example,
revise the definition of commercial item. Revise governmentwide and
agency regulations and procedures which preclude the use of
commercial specifications.
ACTION ITEM
---------------------------------------------------- Chapter 30:2.13.1
Make it easier to buy commercial items.
GAO COMMENTS
---------------------------------------------------- Chapter 30:2.13.2
Agree. We strongly support efforts to promote and simplify
commercial item acquisitions. We also fully support the use of
commercial product descriptions, whenever they best satisfy the
government's legitimate needs.
IMPLEMENTATION
---------------------------------------------------- Chapter 30:2.13.3
Partially Implemented. The Federal Acquisition Streamlining Act of
1994 defines "commercial item" and "nondevelopmental item" and
requires government buyers to conduct market research and give
preference to commercial items. The act requires agencies to revise
procurement policies, practices, and procedures to reduce impediments
to the acquisition of commercial items.
For commercial items that are not acquired competitively, the act
requires the contracting officer to seek information on prices at
which the same or similar items have been sold in the commercial
market. If the information is adequate to evaluate price
reasonableness, the contracting officer must exempt the procurement
from cost and pricing data requirements.
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council agreed on a final rule to amend the Federal
Acquisition Regulation to clearly reflect the preference for use of
voluntary standards, commercial item descriptions, and functional or
performance specifications over design-type specifications. As a
result, an interim rule was amended and finalized in March 1994.
The Secretary of Defense issued a memorandum in June 1994 directing
DOD to use performance and commercial specifications and standards in
lieu of military specifications and standards, unless no practical
alternative exists to meet the user's needs. The Secretary's
memorandum directed that regulatory language be developed within 60
days and made effective in 180 days.
GSA is implementing a Federal Specification Conversion Project with a
targeted completion date of December 1996. GSA officials told us
that of 869 federal specifications prepared by GSA, GSA expects to
cancel about 24 percent, convert about 34 percent to commercial item
descriptions, and retain 42 percent that cannot be converted because
they are too complex or no similar commercial item is available.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 30:2.13.4
Army Acquisition: Commercial Components Used Extensively in Tactical
Trucks (GAO/NSIAD-94-240, Sept. 26, 1994).
Commercial Practices: Leading-Edge Practices Can Help DOD Better
Manage Clothing and Textile Stocks (GAO/NSIAD-94-64, Apr. 13, 1994).
Procurement Reform: Comments on Proposed Federal Acquisition
Streamlining Act (GAO/T-OGC-94-1, Mar. 10, 1994).
Defense Transportation: Commercial Practices Offer Improvement
Opportunities (GAO/NSIAD-94-26, Nov. 26, 1993).
Defense Inventory: Applying Commercial Purchasing Practices Should
Help Reduce Supply Costs (GAO/NSIAD-93-112, Aug. 6, 1993).
Commercial Practices: DOD Could Save Millions by Reducing
Maintenance and Repair Inventories (GAO/NSIAD-93-155, June 7, 1993).
DOD Food Inventory: Using Private Sector Practices Can Reduce Costs
and Eliminate Problems (GAO/NSIAD-93-110, June 4, 1993).
Defense Inventory Management (GAO/HR-93-12, Dec. 1992).
DOD Medical Inventory: Reductions Can Be Made Through the Use of
Commercial Practices (GAO/NSIAD-92-58, Dec. 5, 1991).
Commercial Practices: Opportunities Exist to Reduce Aircraft Engine
Support Costs (GAO/NSIAD-91-240, June 28, 1991).
Procurement: DOD Efforts Relating to Nondevelopmental Items
(GAO/NSIAD-89-51, Feb. 7, 1989).
PROC14: EXPAND ELECTRONIC
COMMERCE FOR FEDERAL
ACQUISITION
------------------------------------------------------ Chapter 30:2.14
Establish a governmentwide program to use electronic commerce (EC)
for federal procurements.
ACTION ITEMS
---------------------------------------------------- Chapter 30:2.14.1
1. Establish a governmentwide acquisition program for engaging in
electronic commerce.
2. Amend the Federal Acquisition Regulation (FAR) to facilitate
electronic commerce.
GAO COMMENTS
---------------------------------------------------- Chapter 30:2.14.2
Agree. We agree that automated technologies can be used to
facilitate computer-to-computer exchange of routine information and
that such a capability could play a key role in greatly improving the
federal government's business operations and processes, including
procurement of products and services. Effective implementation of
electronic data interchange (EDI) systems would help reduce the
burdens of the paper-based processes now imposed on business and
government and could increase small business participation in
government procurements. Experience implementing EDI within large
private sector companies and the Department of Defense shows that
effective EDI implementation requires (1) business plans that clearly
define how the technology will benefit the targeted business areas,
(2) using a standard approach that concentrates on consistent
electronic business forms for each business area and employs
nationally accepted industry standards, and (3) a corporatewide
telecommunications infrastructure to support electronic business
within the agency and with external trading partners (other agencies,
vendors, etc.).
IMPLEMENTATION
---------------------------------------------------- Chapter 30:2.14.3
Partially Implemented. An October 26, 1993, presidential memorandum
requires that the government implement an EC system that includes
electronic payments and document interchange by July 1995, and
complete governmentwide implementation, to the maximum extent
possible, by January 1997. An interagency Electronic Commerce for
Acquisition Program Management Office (ECA-PMO) is coordinating,
monitoring, and reporting on EC implementation throughout the
government. In September 1994, OMB tasked agencies to submit their
long-range EC implementation plans covering fiscal years 1995 through
1997. These plans are to focus on small purchases and should include
milestones and estimated costs for an outreach program, an internal
training program, automated systems that support EC implementation of
small purchases, integrating existing electronic small purchase
systems and bulletin boards into the govenmentwide program, and
streamlining and reengineering the small purchase process. OMB began
reviewing the agencies' implementation plans in October 1994.
The Federal Acquisition Streamlining Act of 1994 provides for
implementation of electronic commerce procedures in two phases over a
5-year period. Ongoing implementation actions coordinated by the
ECA-PMO incorporate the EC capability and timeframes required in the
act. OFPP officials said (1) FAR revisions are now being drafted to
implement the act, and (2) these revisions will support full
implementation of EDI and EC by the federal acquisition community.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 30:2.14.4
Procurement Reform: Comments on Proposed Federal Acquisition
Streamlining Act (GAO/T-OGC-94-1, Mar. 10, 1994).
Defense IRM: Business Strategy Needed for Electronic Data
Interchange Program (GAO/AIMD-94-17, Dec. 9, 1993).
NASA Procurement: Planning for Pilot Test of New Procurement
Procedures is Adequate (GAO/NSIAD-94-67, Nov. 4, 1993).
Defense Business Operations Fund (GAO/AIMD-94-7R, Oct. 12, 1993).
NASA: Major Challenges for Management (GAO/T-NSIAD-94-18, Oct. 6,
1993).
Procurement Reform: Comments on Proposed Acquisition Improvement Act
of 1993 (GAO/T-OGC-93-1, May 25, 1993).
Information Management and Technology Issues (GAO/OCG-93-5TR, Dec.
1992).
Multiple Award Schedule Purchases: Changes Are Needed to Improve
Agencies' Ordering Practices (GAO/NSIAD-92-123, June 2, 1992).
National Institute of Standards and Technology: Use of Electronic
Data Interchange Technology to Create Valid Obligations (71 Comp.
Gen. 109, Dec. 13, 1991).
PROC15: ENCOURAGE BEST
VALUE PROCUREMENT
------------------------------------------------------ Chapter 30:2.15
To recognize other factors besides price, define "best value" and
provide regulatory guidance to implement a program for buying on a
"best value" basis. Issue guide on the use of "best practices"
source selection procedures.
ACTION ITEMS
---------------------------------------------------- Chapter 30:2.15.1
1. Define "best value" and provide regulatory guidance to implement
a program for buying on a best value basis.
2. Issue a guide on the use of "best practices" source selection
techniques.
3. Train procurement officials on source selection techniques.
GAO COMMENTS
---------------------------------------------------- Chapter 30:2.15.2
Generally Agree. We strongly support the use of best value
procurement principles in federal procurement. The government should
have the means to ensure that it gets the greatest value for the
dollar. We also support the proposed improvements. Best value
buying requires, however, that evaluation criteria be clear and that
procurement personnel be properly trained.
IMPLEMENTATION
---------------------------------------------------- Chapter 30:2.15.3
Partially Implemented. OFPP has several projects that focus on
implementing best value buying and involve formal commitments by
agencies to employ certain approaches and provide information to
OFPP. Experience obtained from these projects is to be used to
refine the concept of best value and develop governmentwide best
practices guides. Existing guidance is found in the Federal
Acquisition Regulation, OFPP Policy Letters, and agency guidance.
Federal agencies are offering training on source selection
techniques. The Federal Acquisition Institute has developed source
selection training for procurement officials.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 30:2.15.4
General Services Administration: Actions Needed to Stop Buying
Supplies From Poor-Performing Vendors (GAO/GGD-93-34, Jan. 11,
1993).
Army Acquisition: Contract for the Reserve Component Automation
System (GAO/NSIAD-93-5, Nov. 5, 1992).
Tax Systems Modernization: IRS' Use of Consultants to Do the TMAC
Price/Technical Tradeoff Analysis (GAO/IMTEC-93-4BR, Oct. 23, 1992).
Tax Systems Modernization: IRS Could Have Avoided Successful
Protests of Major Computer Procurement (GAO/IMTEC-92-27, Mar. 13,
1992).
PROC16: PROMOTE EXCELLENCE
IN VENDOR PERFORMANCE
------------------------------------------------------ Chapter 30:2.16
Establish an interagency Excellence in Vendor Performance Forum that
would develop policies and techniques to measure contractor
performance for use in contract decisions. Establish an award for
contractor and government acquisition excellence.
ACTION ITEMS
---------------------------------------------------- Chapter 30:2.16.1
1. Establish an interagency Excellence in Vendor Performance Forum.
2. Establish an award for contractor and government acquisition
excellence.
GAO COMMENTS
---------------------------------------------------- Chapter 30:2.16.2
Agree. We believe exceptional performance in the government
contractor and acquisition employee communities should be recognized
and promoted. We fully support programs that are designed to
recognize past performance in selecting contractors. We support
programs that emphasize quality and established performance, as well
as price, in awarding contracts. Also, we believe that increased
emphasis should be placed on product quality and on-time delivery in
assessing contractor performance.
IMPLEMENTATION
---------------------------------------------------- Chapter 30:2.16.3
Partially Implemented. The Federal Acquisition Streamlining Act of
1994 provides for governmentwide awards to recognize and promote
vendor excellence and excellence in officers and employees serving in
procurement-related positions. OFPP is developing the criteria and
procedures for these two award programs. OFPP has initiated two
pilot programs involving more than 20 agencies to develop techniques
to measure contractor performance and other information about past
performance and customer satisfaction with performance on existing
contracts. OFPP and the agencies will use the experience obtained
from these projects to define governmentwide policies to recognize
contractor performance in source selection decisions.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 30:2.16.4
Acquisition Reform: Role of Test and Evaluation in System
Acquisition Should Not Be Weakened (GAO/T-NSIAD-94-124, Mar. 22,
1994).
Defense Procurement: Programs for Considering Vendor's Past
Performance in Awarding Contracts (GAO/NSIAD-93-63, June 30, 1993).
General Services Administration: Actions Needed to Stop Buying
Supplies From Poor-Performing Vendors (GAO/GGD-93-34, Jan. 11,
1993).
General Services Issues (GAO/OCG-93-28TR, Dec. 1992).
PROC17: AUTHORIZE A
TWO-PHASE COMPETITIVE SOURCE
SELECTION PROCESS
------------------------------------------------------ Chapter 30:2.17
Authorize the use of a two-phase selection process for certain types
of contracts so that an offeror does not incur a substantial expense
in preparing a contract proposal.
ACTION ITEM
---------------------------------------------------- Chapter 30:2.17.1
Authorize the use of a two-phase selection process for certain types
of contracts.
GAO COMMENTS
---------------------------------------------------- Chapter 30:2.17.2
Insufficient Information. We have not reported on this issue.
However, we could support efforts to simplify the procurement process
to reduce the cost of competing for government contracts provided
that potential contractors are not rejected unreasonably.
IMPLEMENTATION
---------------------------------------------------- Chapter 30:2.17.3
Not Implemented--Action Taken. Provisions to authorize two-phase
source selection in defense and civilian procurements had been added
to S. 1587 when the Senate Committees on Governmental Affairs and
Armed Services reported out the bill. Two-phase source selection was
discussed during floor debate in June, and a related amendment was
offered. The Senate passed S. 1587 in June 1994 with provisions to
authorize two-phase selection procedures for the acquisition of
property or services (other than a construction contract). However,
these provisions were not included in the Federal Acquisition
Streamlining Act of 1994 as enacted.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 30:2.17.4
None.
PROC18: AUTHORIZE MULTIYEAR
CONTRACTS
------------------------------------------------------ Chapter 30:2.18
Authorize multiyear contracts and allow contracts for severable
services to cross fiscal years.
ACTION ITEMS
---------------------------------------------------- Chapter 30:2.18.1
1. Authorize multiyear contracts.
2. Allow contracts for severable services to cross fiscal years.
GAO COMMENTS
---------------------------------------------------- Chapter 30:2.18.2
Agree. For many years, we have favored proposals to provide civilian
agencies with statutory authority, similar to that of the Department
of Defense, to enter into multiyear contracts. Such legislation
could also include a provision enabling agencies to enter into
severable service contracts across fiscal years, financed by annual
appropriations.
IMPLEMENTATION
---------------------------------------------------- Chapter 30:2.18.3
Fully Implemented. The Federal Acquisition Streamlining Act of 1994
includes provisions authorizing multiyear contracts and contracts for
severable services to cross fiscal years. The act permits executive
agencies to enter into multiyear contracts if (1) sufficient funds
are available and obligated for the contract, and (2) the agency
determines that the need for the property or services is reasonably
firm and continuing over the period of the contract and serves the
best interests of the Government. The act defines a multiyear
contract as a contract not exceeding 5 years. It also requires a
notice to Congress for any multiyear contract containing a
cancellation ceiling in excess of $10,000,000. The act authorizes
agencies to enter into contracts for severable services which cross
fiscal years as long as the contract period does not exceed 1 year.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 30:2.18.4
Procurement: Assessment of DOD's Multiyear Contract Candidates for
Fiscal Year 1991 (GAO/NSIAD-90-270BR, Aug. 31, 1990).
Procurement: Assessment of DOD's Multiyear Contract Candidates
(GAO/NSIAD-89-224BR, Sept. 5, 1989).
Procurement: Assessment of DOD's Multiyear Contract Candidates
(GAO/NSIAD-88-233BR, Sept. 1, 1988).
Procurement: Multiyear Contracting and Its Impact on Investment
Decisions (GAO/NSIAD-88-125, May 10, 1988).
DOD Procurement: Multiyear and Annual Contract Costs
(GAO/NSIAD-88-5, Oct. 30, 1987).
Comments on S.678, 99th Cong., 1st Sess. (B-214545, Aug. 7, 1985).
PROC19: CONFORM CERTAIN
STATUTORY REQUIREMENTS FOR
CIVILIAN AGENCIES TO THOSE
OF DEFENSE AGENCIES
------------------------------------------------------ Chapter 30:2.19
Repeal requirements for commercial pricing certificates and authorize
contract awards without discussions, where appropriate. Maintain the
$500,000 threshold for cost and pricing data requirements for the
Defense Department and establish the same threshold for civilian
agencies.
ACTION ITEMS
---------------------------------------------------- Chapter 30:2.19.1
1. Repeal the requirement for commercial pricing certificates and
authorize contract awards without discussions.
2. Maintain the $500,000 threshold for cost and pricing data
requirements for DOD.
3. Establish a $500,000 threshold for cost and pricing data
requirements for civilian agencies.
4. Authorize civilian agencies to use cooperative agreements for
advanced research projects.
GAO COMMENTS
---------------------------------------------------- Chapter 30:2.19.2
Agree. We agree that the laws and regulations governing civilian and
defense agency acquisitions should be as consistent as possible,
including authority for awards without discussions. We support a
permanent $500,000 threshold for cost and pricing data. We have not
done work on commercial pricing certificates.
IMPLEMENTATION
---------------------------------------------------- Chapter 30:2.19.3
Partially Implemented. The Federal Acquisition Streamlining Act of
1994 implements this recommendation except for the action item to
authorize civilian agencies to use cooperative agreements for
advanced research projects. The act (1) repeals requirements in
section 303E of the Federal Property and Administrative Services Act
of 1949 for commercial pricing certificates in civilian procurements;
(2) clarifies authority to allow contract awards without discussions
similarly for civilian agencies and defense agencies; (3) maintains
and makes permanent the $500,000 threshold for cost or pricing data
requirements for DOD; and (4) establishes the same $500,000 threshold
for civilian agencies.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 30:2.19.4
Procurement Reform: Comments on Proposed Federal Acquisition
Streamlining Act (GAO/T-OGC-94-1, Mar. 10, 1994).
Procurement Reform: Comments on Proposed Acquisition Improvement Act
of 1993 (GAO/T-OGC-93-1, May 25, 1993).
PROC20: STREAMLINE BUYING
FOR THE ENVIRONMENT
------------------------------------------------------ Chapter 30:2.20
Develop "best practice" guides on buying for the environment.
Encourage multiple award schedule contractors to identify
environmentally preferable products. Provide energy efficiency
information in government catalogs and automated systems.
ACTION ITEMS
---------------------------------------------------- Chapter 30:2.20.1
1. Amend the Resource Conservation and Recovery Act (RCRA) to
clarify procurement issues that impede achievement of its procurement
objectives.
2. Develop best practice guides on buying for the environment.
3. Encourage multiple award schedule contractors to identify
environmentally preferable products.
4. Provide energy efficiency information in GSA and DLA catalogs and
automated systems.
5. Encourage multiple award schedule contractors to identify
equipment that meets the EPA Energy Star requirements.
6. Encourage federal agency use of areawide utility contracts for
energy audits.
7. Establish indefinite delivery contracts for energy retrofit
services.
GAO COMMENTS
---------------------------------------------------- Chapter 30:2.20.2
Agree. We support environmentally sound buying practices. Our work
has shown that agencies can improve their efforts in this regard.
NPR's recommendations have merit.
IMPLEMENTATION
---------------------------------------------------- Chapter 30:2.20.3
Partially Implemented. Although legislation to amend RCRA was not
introduced, Executive Order 12873, dated October 20, 1993,
accomplishes some of the same environmental procurement reforms that
NPR wanted and contains some additional requirements as well,
according to OFPP officials. In late October 1994, the OFPP
Administrator tasked the Department of Energy to develop "best
practice" guides on contracting for the environment. In the interim,
an OFPP memorandum encourages agencies' senior procurement executives
to seek out creative ways to create markets for new energy-efficient
products.
GSA provided energy efficiency and other information on
environmentally beneficial products in government supply catalogs.
In addition, a GSA and DLA combined effort produced a catalog listing
a wide variety of lighting products that minimize energy consumption.
A GSA rule, which OMB was reviewing in November 1994, would require
multiple award schedule vendors to identify products' environmental
attributes in their responses to GSA solicitations. GSA added
information in its automated supply system about stock items and
services with environmentally beneficial attributes. GSA accepts
participation in programs, such as EPA's Energy Star computer
program, to support vendor claims that items they manufacture are
energy efficient.
GSA has undertaken several initiatives to promote energy audits in
federal agencies including (1) encouraging agencies to request energy
audits from utility firms having areawide utility service contracts
with the federal government and (2) directing each of its 10 regional
offices to make energy audits available through indefinite quantity
contracts. In July 1994, GSA directed each of its regional offices
to either (1) award new indefinite quantity contracts for retrofit
services or (2) modify existing indefinite quantity repair and
alteration contracts to include retrofit services as nonscheduled
items.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 30:2.20.4
Energy Conservation: Contractors' Efforts at Federally Owned Sites
(GAO/RCED-94-96, Apr. 29, 1994).
Energy Conservation: Federal Agencies' Funding Sources and Reporting
Procedures (GAO/RCED-94-70, Mar. 30, 1994).
Department of Defense: Widespread Abuse in Recycling Program
Increases Funds for Recreation Activities (GAO/NSIAD-94-40, Dec. 10,
1993).
Solid Waste: Federal Program to Buy Products With Recovered
Materials Proceeds Slowly (GAO/RCED-93-58, May 17, 1993).
GSA's Energy Conservation Efforts (GAO/T-GGD-92-32, Apr. 8, 1992).
Solid Waste: Progress in Implementing the Federal Program to Buy
Products Containing Recovered Materials (GAO/T-RCED-92-42, Apr. 3,
1992).
Federal Services Administration: A Status Report on Energy
Conservation Efforts (GAO/GGD-92-22, Jan. 13, 1992).
Wastepaper Recycling: Programs of Civil Agencies Waned During the
1980s (GAO/GGD-90-3, Dec. 15, 1989).
Energy Conservation: Federal Shared Energy Savings Contracting
(GAO/RCED-89-99, Apr. 17, 1989).
REINVENTING SUPPORT SERVICES (SUP)
=========================================================== Chapter 31
OVERALL SUMMARY
--------------------------------------------------------- Chapter 31:1
Four of the 11 NPR recommendations in this section have been
partially implemented, and actions have been taken or are under way
on the other 7 recommendations. Also, NPR's one overall
recommendation in the General Services Administration (GSA) section
of this report, which has been acted upon but not implemented,
relates directly to several NPR recommendations in this support
services section; especially SUP03, SUP04, SUP08, SUP09, and SUP10.
In addition, NPR's recommendations in the Reengineering through
Information Technology, Reinventing Federal Procurement, and
Improving Financial Management sections relate to this section.
The four support services recommendations that have been partially
implemented are (1) SUP04--streamline and improve contracting
strategies for the Multiple Award Schedule Program; (2) SUP05--expand
agency authority and eliminate congressional control over federal
fleet vehicle management; (3) SUP06--give agencies authority and
incentive for personal property management and disposal; and (4)
SUP08--give customers choice and create real property enterprises
that promote sound real property asset management. On SUP04, one of
seven action items have been completed, and efforts have been made or
are under way to address the other six items. On SUP05, two of the
four action items have been completed, another action item has been
addressed, and one action item has not been addressed. On SUP06, one
of three action items has been completed, another action item has
been addressed, and one action item has not been addressed. SUP08
has been partially implemented in several respects, but 3 of the 11
action items have not been addressed. GSA has actions under way to
address most of NPR's action items on the other seven
recommendations. However several of these under way action items
require legislation or special emphasis by the Office of Management
and Budget, and little, if any, progress has been made in several of
these areas.
GAO CONTACT
------------------------------------------------------- Chapter 31:1.1
J. William Gadsby, Director, Government Business Operations Issues,
General Government Division, (202) 512-8387.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 31:2
SUP01: AUTHORIZE THE
EXECUTIVE BRANCH TO
ESTABLISH A PRINTING POLICY
THAT WILL ELIMINATE THE
CURRENT PRINTING MONOPOLY
------------------------------------------------------- Chapter 31:2.1
Give the executive branch authority to make its own printing policy
that will eliminate the mandatory printing source. Develop a new
executive branch printing policy for the 21st century.
ACTION ITEMS
----------------------------------------------------- Chapter 31:2.1.1
1. Give the executive branch the authority to make its own printing
policy that will eliminate the mandatary printing source.
2. Develop an executive branch printing policy for the 21st century.
GAO COMMENTS
----------------------------------------------------- Chapter 31:2.1.2
Generally Agree. We agree that the Government Printing Office's
(GPO) monopoly-like status contributes to inefficiencies and
ineffectiveness and that GPO's mandatory source status for executive
branch agencies should be eliminated. We also agree that a new
executive branch printing policy will be needed, but we have no basis
to say who, within the executive branch, should be responsible for
developing such a policy or what specific provisions should be
included to ensure agencies have sufficient flexibility in meeting
their printing needs.
IMPLEMENTATION
----------------------------------------------------- Chapter 31:2.1.3
Not Implemented--Action Taken. Because existing legislation
requires, with some exceptions, that agencies go through GPO to
procure printing services, this legislation would have to be changed
to alter GPO's role and implement this recommendation. The
administration proposed legislative language (H.R. 3400) to
accomplish this change, but the bill was not enacted. However,
Congress included language in the fiscal year 1995 Legislative
Appropriations Act that actually expanded GPO's role by amending the
definition of printing to include duplication. Subsequently, the
administration generally agreed to accept the amended printing and
duplicating policy for fiscal year 1995 and to work with Congress to
develop legislation to change the printing policy.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 31:2.1.4
Defense Management: Printing Operations at the Department of Defense
(GAO/T-NSIAD-93-19, July 15, 1993).
Government Printing Office: Monopoly-Like Status Contributes to
Inefficiency and Ineffectiveness (GAO/GGD-90-107, Sept. 26, 1990).
SUP02: ASSURE PUBLIC ACCESS
TO FEDERAL INFORMATION
------------------------------------------------------- Chapter 31:2.2
Give the executive branch agencies responsibility for distributing
printed federal information to depository libraries. Require
agencies to inventory the federal information they hold, and make it
accessible to the public.
ACTION ITEMS
----------------------------------------------------- Chapter 31:2.2.1
1. Give the executive branch responsibility for the distribution of
printed federal information to depository libraries.
2. Disseminate federal information effectively and efficiently to
depository libraries.
3. Develop agency locators for public access to federal information.
4. Create one-stop shopping for the sale of federal documents.
GAO COMMENTS
----------------------------------------------------- Chapter 31:2.2.2
Generally Agree. We agree with this recommendation's intent to
assure public access to federal information. However, we have no
basis to comment on how or who in the executive branch should
implement it or bear the associated costs.
IMPLEMENTATION
----------------------------------------------------- Chapter 31:2.2.3
Not Implemented--Action Taken. Under existing legislation, GPO is
responsible for disseminating copies of new and revised government
publications designated for distribution to libraries that are
required to receive all or some of these materials. Thus,
legislation transferring this role to the executive branch is
required before this recommendation can be implemented. The
administration proposed legislative language in (H.R. 3400) to
implement this recommendation, but this bill was not enacted. The
version that passed the House on November 22, 1993, did not authorize
the executive branch to disseminate publications. The executive and
congressional branches agreed in September 1994 to work together over
the next fiscal year to resolve differences and draft needed
legislation. An interagency effort is under way to establish an
automated system that the public can use to access federal
information. A standard for how this should be accomplished and an
OMB Bulletin spelling out the responsibilities of federal agencies
have been developed; the OMB Bulletin is with agencies for review and
comment. No efforts have been made to implement the one-stop
shopping part of the recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 31:2.2.4
Federal Information: Users' Current and Future Technology Needs
(GAO/GGD-89-20FS, Nov. 30, 1988).
Federal Information: Agency Needs and Practices (GAO/GGD-88-115FS,
Sept. 20, 1988).
SUP03: IMPROVE DISTRIBUTION
SYSTEMS TO REDUCE COSTLY
INVENTORIES
------------------------------------------------------- Chapter 31:2.3
Permit customer choice in sources of supply. Compare depot
distribution costs with commercial distribution systems. Take away
the Federal Prison Industries' (FPI) status as a mandatory source of
federal supplies and require it to compete commercially for federal
agencies' business. Increase the use of electronic commerce for
ordering from depot systems.
ACTION ITEMS
----------------------------------------------------- Chapter 31:2.3.1
1. Permit customer choice in sources of supply.
2. Compare depot distribution costs with commercial distribution
systems.
3. Allow the Federal Prison Industries to compete commercially.
4. Eliminate the Federal Prison Industries as a mandatory source.
5. Increase the use of electronic commerce for ordering from depot
systems.
6. Increase the use of commercial item descriptions.
7. Provide agencies with parallel contracting authority.
8. Identify innovative logistics models.
GAO COMMENTS
----------------------------------------------------- Chapter 31:2.3.2
Agree. We agree that the federal distribution systems need to be
improved. Federal agencies should be allowed to choose the most
cost-effective supply sources. This means that centralized federal
supply entities like GSA and Federal Prison Industries, which now
have mandatory source status, will have to compete directly with the
private sector and others for federal agencies' business. Equipment
and supply inventories in federally owned depots can and should be
reduced under current operating procedures, and opportunities for
reductions could increase if their mandatory source status is
removed. While we support improving supply operations, existing
barriers and obstacles likely would inhibit federal supply agencies'
ability to compete because the playing field would not be level.
These impediments need to be identified, examined, and resolved.
IMPLEMENTATION
----------------------------------------------------- Chapter 31:2.3.3
Not Implemented--Action Taken. Although not implemented, GSA,
Department of Veterans Affairs (VA), Department of Defense (DOD), and
FPI have taken actions and have efforts under way to respond to this
recommendation. GSA (1) has drafted regulations to eliminate its
mandatory supply source requirements and already begun converting its
new Multiple Awards Schedules to nonmandatory use; (2) has outside
experts trying to identify ways of improving the distribution
system's cost-effectiveness; (3) has increased its use of commercial
product descriptions and is trying to increase the availability of
automated ordering and billing; and (4) is using reinvention labs and
two collaborative efforts with other agencies and private sector
organizations to test other logistic models. DOD is considering a
change in its regulations that would allow components greater
flexibility to use sources other than the central supply system and
has developed a plan to increase the use of electronic commerce.
DOD's Defense Logistics Agency is comparing DOD and commercial
distribution costs. VA plans to close its depots and has
commercialized most item descriptions. The executive branch drafted
legislation to end the FPI's mandatory source status and force it to
compete commercially for federal agencies' business. However, the
Department of Justice and Bureau of Prisons objected to this change,
and this proposed legislation has not been introduced in Congress.
FPI is adding an electronic commerce capability to its operations.
Finally, the House passed a bill authorizing parallel contracting,
(H.R. 2238) but this provision was removed from the legislation that
was eventually enacted (P.L. 103-355).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 31:2.3.4
General Services Administration: Increased Direct Delivery of
Supplies Could Save Millions (GAO/GGD-93-32, Dec. 28, 1993).
Defense Inventory: Applying Commercial Practices Should Help Reduce
Supply Costs (GAO/NSIAD-93-112, Aug. 6, 1993).
FPI Systems Furniture (GAO/GGD-93-51R, July 7, 1993).
Commercial Practices: DOD Could Save Millions by Reducing
Maintenance and Repair Inventories (GAO/NSIAD-93-155, June 7, 1993).
General Services Issues (GAO/OCG-93-28TR, Dec. 1992).
General Services Administration: Actions Needed to Improve
Protection Against Fraud, Waste, and Mismanagement (GAO/GGD-92-98,
Sept. 30, 1992).
DOD Medical Inventory: Reductions Can Be Made Through the Use of
Commercial Practices (GAO/NSIAD-92-58, Dec. 5, 1991).
Commercial Practices: Opportunities Exist to Reduce Aircraft Engine
Costs (GAO/NSIAD-91-240, June 28, 1991).
SUP04: STREAMLINE AND
IMPROVE CONTRACTING
STRATEGIES FOR THE MULTIPLE
AWARD SCHEDULE PROGRAM
------------------------------------------------------- Chapter 31:2.4
Eliminate the use of mandatory supply schedules. Make the supply
schedule system easier to use by reducing the administrative burden
for acquisitions under $10,000. In addition, eliminate the
announcement requirements and raise the maximum order limitations for
the purchase of information technology items listed in supply
schedules.
ACTION ITEMS
----------------------------------------------------- Chapter 31:2.4.1
1. Eliminate mandatory supply schedules.
2. Eliminate the announcement requirements for information
technology acquisitions from supply schedules.
3. Raise the maximum order limitations for information technology
acquisitions from supply schedules.
4. Reduce the administrative burden for acquisitions under $10,000
from supply schedules.
5. Accelerate the improvements to the automated Multiple Award
Schedule (MAS) system.
6. Identify and test innovative procurement strategies that reduce
costs for goods under the Multiple Award Schedule program.
7. Pilot test innovative approaches under the Multiple Award
Schedule program.
GAO COMMENTS
----------------------------------------------------- Chapter 31:2.4.2
Generally Agree. We support efforts to improve the Multiple Award
Schedule Program, including streamlining the solicitation, selection,
and related requirements under the schedules. We have supported
proposals to revise the dollar threshold for announcement
requirements, but have not supported elimination of those
requirements. Our work to date has not addressed eliminating the use
of mandatory supply schedules.
IMPLEMENTATION
----------------------------------------------------- Chapter 31:2.4.3
Partially Implemented. This recommendation has been partially
implemented because one of the seven action items--raise the maximum
order limitations for information technology acquisitions--has been
completed. Beginning in January 1994, the GSA increased the maximum
dollar amount for MAS information technology acquisitions from
$300,000 to $500,000. According to a responsible GSA official,
however, this change will not result in any significant improvements
because the order limit was not really a problem. Rather, he stated
that the problem is the time-consuming nature of the existing
requirement to advertise any purchases over $50,000. GSA has taken
or is taking actions to address the other six action items under this
recommendation, but these action items are still open. GSA (1) has
drafted or proposed regulatory changes to remove mandatory source
requirements and reduce cases requiring advertising and has already
begun converting its new schedules to nonmandatory use; (2) is
testing a new computer solicitation, revising MAS order instructions,
trying to automate its MAS schedule for information technology
systems, and working with a private sector association to identify
the best design for an electronic bulletin board; (3) has two
reinvention efforts under way looking for innovative and
cost-effective MAS procurement strategies that will remove or
simplify some agency and vendor paperwork requirements and decrease
delivery time; and (4) has revised its solicitation for computer
software to require that vendors allow the government to copy
software that is purchased, which GSA estimates could save 25 percent
over the previous arrangement. GSA planned to reduce the
administrative burden for MAS purchases under $10,000, but the
Department of Defense (DOD) disagreed with the idea because it
removed MAS from Federal Acquisition Regulation coverage. GSA agreed
to defer this change until all agency comments were received and
considered.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 31:2.4.4
Multiple Award Schedule Contracting: Changes Needed in Negotiation
Objectives and Data Requirements (GAO/GGD-93-123, Aug. 25, 1993).
Multiple Award Schedule Purchases: Changes Are Needed to Improve
Agencies' Ordering Practices (GAO/NSIAD-92-123, June 2, 1992).
Multiple Award Schedule Purchases: Improvements Needed Regarding
Publicizing Agencies' Orders (GAO/NSIAD-92-88, May 12, 1992).
SUP05: EXPAND AGENCY
AUTHORITY AND ELIMINATE
CONGRESSIONAL CONTROL OVER
FEDERAL VEHICLE FLEET
MANAGEMENT
------------------------------------------------------- Chapter 31:2.5
Update vehicle replacement standards. Increase emergency repair
limits to $150. Eliminate the monopoly on disposing of agency-owned
vehicles.
ACTION ITEMS
----------------------------------------------------- Chapter 31:2.5.1
1. Update vehicle replacement standards.
2. Eliminate appropriation language limitations on government
vehicles.
3. Increase emergency repair limits.
4. Provide incentives and authorize agencies to dispose of
agency-owned vehicles.
GAO COMMENTS
----------------------------------------------------- Chapter 31:2.5.2
Generally Agree. Our ongoing work in this area indicates that this
NPR recommendation has merit. This recommendation was originally
proposed by the President's Management Improvement Council in 1992
and has been accepted by GSA, the Office of Management and Budget,
and other agencies with motor vehicle fleets. However, actions
should not be restricted to these operational matters. State
governments and private firms have made additional strategic
improvements to their fleets through benchmarking and improved
information systems that might also be applicable to the federal
vehicle fleet.
IMPLEMENTATION
----------------------------------------------------- Chapter 31:2.5.3
Partially Implemented. Two of the four action items--update vehicle
replacement standards and increase emergency repair limits--have been
implemented. The General Services Administration (GSA) revised the
Federal Property Management Regulations (FPMR) to (1) allow vehicle
replacement on a 3-year instead of a 6-year basis and (2) increase
emergency repair limits to $150. Completing the other two action
items will require legislative changes; the administration has
proposed one change, but taken no action on the other one. The
administration proposed eliminating appropriation language
limitations on the purchase price of new government vehicles in the
Treasury, Postal Service, and General Government Appropriations Act
of 1995, but both the Senate and House removed this language. The
administration has not proposed legislation to provide incentives to
agencies that dispose of their vehicles. However, GSA has solicited
and is considering agencies' comments on another FPMR change that
would allow agencies to dispose of personal property, including
vehicles.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 31:2.5.4
General Services Administration: Actions Needed to Improve
Protection Against Fraud, Waste, and Mismanagement (GAO/GGD-92-98,
Sept. 30, 1992).
SUP06: GIVE AGENCIES
AUTHORITY AND INCENTIVE FOR
PERSONAL PROPERTY MANAGEMENT
AND DISPOSAL
------------------------------------------------------- Chapter 31:2.6
Provide incentives to agencies to dispose of excess personal
property. Automate the process and eliminate the monopoly on
personal property disposal.
ACTION ITEMS
----------------------------------------------------- Chapter 31:2.6.1
1. Eliminate the monopoly on personal property disposal services.
2. Automate the personal property screening process.
3. Provide incentives to agencies to dispose of excess personal
property.
GAO COMMENTS
----------------------------------------------------- Chapter 31:2.6.2
Generally Agree. We agree that property management and disposal
policies and practices need improvement and that federal efforts to
identify, manage, and dispose of unneeded or underutilized property
have been largely ineffective. Most federal agencies have no
incentive to give up such property because they generally get nothing
for it. Thus, financial incentives could result in improvements.
However, most federal agencies do not know the market value of their
property and pay no penalty for using it inefficiently.
IMPLEMENTATION
----------------------------------------------------- Chapter 31:2.6.3
Partially Implemented. One of the three action items--automate the
personal property screening process--has been implemented. GSA
adapted the Multi-Use File for Interagency News (MUFFIN) so that
federal agencies can use it to screen available excess personal
property. In October 1994, GSA changed the FPMR to allow agencies to
dispose of their personal property. GSA has not drafted or proposed
legislation to provide incentives to agencies to dispose of excess
personal property.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 31:2.6.4
General Services Issues (GAO/OCG-93-28TR, Dec. 1992).
General Services Administration: Actions Needed to Improve
Protection Against Fraud, Waste, and Mismanagement (GAO/GGD-92-98,
Sept. 30, 1992).
NASA Property: Improving Management of Government Equipment Provided
to Contractors (GAO/NSIAD-93-191, Sept. 9, 1993).
SUP07: SIMPLIFY TRAVEL AND
INCREASE COMPETITION
------------------------------------------------------- Chapter 31:2.7
Increase choices for federal travelers and automate the travel
process. Pilot test a tender system for airfares.
ACTION ITEMS
----------------------------------------------------- Chapter 31:2.7.1
1. Streamline the travel regulations.
2. Increase choices for federal travelers.
3. Pilot test a tender system for airfares.
4. Automate the travel process.
GAO COMMENTS
----------------------------------------------------- Chapter 31:2.7.2
Insufficient Information. We have done no recent work in this area
and have no basis to comment on the merits of this recommendation.
IMPLEMENTATION
----------------------------------------------------- Chapter 31:2.7.3
Not Implemented--Action Taken. Actions have been taken or are under
way to address all four action items under this recommendation, but
these actions have not been completed. GSA has arranged to work with
the Joint Financial Management Improvement Project to improve federal
travel regulations. GSA said it had also changed its criteria for
awarding airline ticket contracts to provide more emphasis on
customer service and less on cost which should give travelers more
desirable options (e.g., nonstop flights at convenient times) while
still getting a good value for the government. GSA has plans to
begin experimenting, in December 1994 in seven domestic markets, with
letting airlines set and adjust government ticket rates in lieu of
the traditional contractually established rates. Under this pilot
test, agencies plan to scan the rates offered and select the rate
with the best combination of cost and services. GSA is developing a
method to monitor the rates offered and determine within a year if
this approach is benefiting the government. According to the NPR
staff, all federal agencies, except one, have taken or plan to take
action to automate their travel process.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 31:2.7.4
None.
SUP08: GIVE CUSTOMERS
CHOICES AND CREATE REAL
PROPERTY ENTERPRISES THAT
PROMOTE SOUND REAL PROPERTY
ASSET MANAGEMENT
------------------------------------------------------- Chapter 31:2.8
Give agencies greater authority to choose their sources of real
property services. Create competitive enterprises within the
government to provide real property services on a fee basis, and
encourage federal managers to seek the best available source. Create
an ownership enterprise for the sound management of federal real
property assets. Establish a governmentwide policy for real property
asset management. Manage the Federal Buildings Fund in a manner
comparable to the commercial sector.
ACTION ITEMS
----------------------------------------------------- Chapter 31:2.8.1
1. Give agencies greater authority to choose their sources of real
property services.
2. Create competitive enterprises to provide real property services
on a fee basis.
3. Create centers of expertise for real property services.
4. Create a customer service organization for real property services
in GSA.
5. Provide agencies with information about all possible real
property alternatives.
6. Create an enterprise for the sound management of federal real
property assets.
7. Establish governmentwide policy for real property asset
management.
8. Establish performance benchmarks for the real property
enterprises.
9. Commercialize the Federal Buildings Fund.
10. Promote competition between existing real property service
providers.
11. Eliminate statutory impediments to the ownership enterprises.
GAO COMMENTS
----------------------------------------------------- Chapter 31:2.8.2
Agree. We support the overall thrust of this recommendation. It
echoes our long-standing concerns about GSA's monopoly and
conflicting roles and the unbusinesslike way the federal government's
vast, valuable real estate assets are acquired and managed. While we
support the concepts of ending GSA's office space monopoly and
creating a new real property asset management enterprise to oversee
the federal real estate portfolio and help maximize its return on
investment, barriers inhibiting effective asset management and GSA's
ability to compete will need to be reexamined and resolved.
IMPLEMENTATION
----------------------------------------------------- Chapter 31:2.8.3
Partially Implemented. This recommendation has been partially
implemented in several respects. GSA has a new public buildings
information system that contains information on available GSA and
commercial space in the marketplace. Equipment and software needed
to make the system operational have been delivered to all
headquarters and most field users. GSA is completing system
installation and training staff to use the system. Also, GSA is
reorganizing its existing real estate activities now provided by the
Public Buildings Service and Federal Property Resources Service. GSA
has designated account officers for some agencies who will provide
agencies a single contact point. GSA has developed a conceptual
framework for a new organizational structure to perform its public
buildings activities. This framework encompasses general components
that are responsive to the concepts outlined in NPR's report and
includes a governmentwide real property policy office, an enterprise
for managing real property assets, and centers of expertise. The
details of how these entities will operate and interact is still
being developed. GSA's Denver Regional Office is conducting a 1-year
pilot test that involves delegating acquisition authority for leases
of 3,000 square feet or less to interested federal agencies, but no
agency has requested a delegation of authority. To date, no actions
have been initiated to commercialize the Federal Buildings Fund,
promote competition between existing real property providers, or
change the congressional prospectus authorization process.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 31:2.8.4
Budget Issues: Budget Scorekeeping for Acquisition of Federal
Buildings (GAO/T-AIMD-94-189, Sept. 20, 1994).
Federal Real Property: National Performance Review Recommendations
(GAO/T-GGD-93-47, Sept. 21, 1993).
Federal Real Property: Key Acquisition and Management Obstacles
(GAO/T-GGD-93-42, July 27, 1993).
Federal Buildings Fund Limitations (GAO/GGD-93-34R, Apr. 5, 1993).
General Services Issues (GAO/OCG-93-28TR, Dec. 1992).
General Management Issues (GAO/OCG-93-3TR, Dec. 1992).
Federal Office Space: Obstacles to Purchasing Commercial Properties
From RTC, FDIC, and Others (GAO/GGD-92-60, Mar. 31, 1992).
Real Property Management Issues Facing GSA and Congress
(GAO/T-GGD-92-4, Oct. 30, 1991).
Federal Buildings: Actions Needed to Prevent Further Deterioration
and Obsolescence (GAO/GGD-91-57, May 13, 1991).
Federal Office Space: Increased Ownership Would Result in
Significant Savings (GAO/GGD-90-11, Dec. 22, 1989).
SUP09: SIMPLIFY PROCEDURES
FOR ACQUIRING SMALL BLOCKS
OF SPACE TO HOUSE FEDERAL
AGENCIES
------------------------------------------------------- Chapter 31:2.9
Simplify the procedures for acquiring small amounts of leased space
under 10,000 square feet.
ACTION ITEM
----------------------------------------------------- Chapter 31:2.9.1
Simplify the procedures for acquiring small amounts of leased space.
GAO COMMENTS
----------------------------------------------------- Chapter 31:2.9.2
Generally Agree. Our work in the leasing area indicates that this
recommendation has merit and may be beneficial for the entire leased
space program. GSA now pays $2 billion annually for leased office
space and these costs are projected to increase to $3 billion
annually by 2002 unless the ratio of federally owned to leased space
is increaed. Some private sector real estate professionals believe
that the federal process may be contributing to higher federal lease
costs.
IMPLEMENTATION
----------------------------------------------------- Chapter 31:2.9.3
Not Implemented--Action Taken. The Federal Acquisition Streamlining
Act of 1994, enacted on October 13, 1994, authorizes simplified
acquisition procedures for leases having an average annual rent of
$100,000 or less. GSA's Denver Regional Office has a reinvention lab
under way to identify ways of simplifying the lease process. As a
part of this effort, it empowered its lease specialists to analyze
arising lease needs and identify ways of simplifying the process that
make sense, given the specific circumstances. GSA's Denver Regional
Office can delegate to interested federal agencies lease acquisition
authority for office space of 3,000 square feet or less. Agencies
will be encouraged to share successful strategies.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 31:2.9.4
Federal Real Property: National Performance Review Recommendations
(GAO/T-GGD-93-47, Sept. 21, 1993).
Federal Real Property: Key Acquisition and Management Obstacles
(GAO/T-GGD-93-42, July 27,1993).
Federal Buildings Fund Limitations (GAO/GGD-93-34R, Apr. 5, 1993).
SUP10: ESTABLISH NEW
CONTRACTING PROCEDURES FOR
THE CONTINUED OCCUPANCY OF
LEASED OFFICE SPACE
------------------------------------------------------ Chapter 31:2.10
Simplify the procedures for renewing leases.
ACTION ITEM
---------------------------------------------------- Chapter 31:2.10.1
Simplify the procedures for renewing leases.
GAO COMMENTS
---------------------------------------------------- Chapter 31:2.10.2
Generally Agree. Our ongoing work in the leasing area indicates that
GSA's leasing process has several inherent characteristics that seem
to make it inefficient and time-consuming, discourage competition,
and increase leasing costs. Since the same process is used for new
as well as existing leases, this recommendation could result in a
more efficient and effective process for renewing existing leases.
IMPLEMENTATION
---------------------------------------------------- Chapter 31:2.10.3
Not Implemented--Action Taken. According to NPR, this recommended
change requires legislation. The Federal Acquisition Streamlining
Act of 1994, as originally proposed, included language to accomplish
this recommendation, but the congressional conference committee
dropped this language. As part of GSA's reinvention laboratory
efforts, its regional offices in Denver, Colorado and Auburn,
Washington are experimenting with different leasing acquisition
procedures, including streamlined procedures for awarding succeeding
leases. GSA has negotiated at least three succeeding leases using
streamlined procedures.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 31:2.10.4
Federal Real Property: National Performance Review Recommendations
(GAO/T-GGD-93-47, Sept. 21, 1993).
SUP11: REDUCE POSTAGE COSTS
THROUGH IMPROVED MAIL
MANAGEMENT
------------------------------------------------------ Chapter 31:2.11
Encourage postage savings through the implementation of mail
management initiatives. Allow line managers to manage their own
postal budgets.
ACTION ITEMS
---------------------------------------------------- Chapter 31:2.11.1
1. Create workgroups to assist agencies with implementing postal
worksharing programs.
2. Identify agencies to lead cooperative mail management
initiatives.
3. Issue guidelines that encourage postage savings through the
implementation of mail management initiatives.
4. Allow line managers to manage their postal budgets.
GAO COMMENTS
---------------------------------------------------- Chapter 31:2.11.2
Agree. We support the pursuit of available postage discounts and
other initiatives that would reduce federal agencies' mail costs.
IMPLEMENTATION
---------------------------------------------------- Chapter 31:2.11.3
Not Implemented--Action Taken. GSA has developed plans to establish
an Interagency Committee on Mail Management to identify and push
needed mail management improvements. When it is established, this
committee is to bring together agency mail managers so they can share
cost-effective worksharing and mail management techniques. Also, GSA
has drafted a mail management policy that, among other things,
assigns line managers some responsibility for managing their mail
budget. According to NPR, some federal agencies already have efforts
under way to encourage mail management initiatives and allow line
managers to manage their postal budgets.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 31:2.11.4
General Services Issues (GAO/OCG-93-28TR, Dec. 1992).
Mail Management: GSA Needs to Improve Support of Agency Programs
(GAO/GGD-90-49, Aug. 7, 1990).
REENGINEER THROUGH THE USE OF
INFORMATION TECHNOLOGY (IT)
=========================================================== Chapter 32
OVERALL SUMMARY
--------------------------------------------------------- Chapter 32:1
The recommendations in this section, which comprise an ambitious set
of goals, are in their early stages of development. These
recommendations, designed to create an "electronic government," could
dramatically improve the type and level of service provided to
citizens while reducing the cost of these services. While action has
been taken on all of these recommendations, none has been fully
implemented and most are still in the planning stage. Fortunately,
the preliminary nature of these recommendations also creates an
opportunity for the administration to address development concerns
before plans are finalized and significant funding has been spent.
We believe three issues could adversely impact the successful
implementation of these recommendations:
-- The administration has created interagency groups to implement
many of these recommendations. These groups are a good
mechanism for creating quick and meaningful involvement by
diverse federal agencies. However, these groups rely upon the
current administration for their existence and do not have
independent funding sources. Thus, interagency cooperation may
have to be strengthened and institutionalized to ensure the
long-term success of these recommendations.
-- Effective information management is a significant challenge at
most agencies. For these recommendations to succeed over the
long term, agencies will need to improve their information
technology management skills and implementation practices. If
these skills and practices are not improved, the benefits
promised from these recommendations may never be realized.
-- Policy makers should be aware that trade-offs may have to be
made between different national policy goals to fully implement
these recommendations.
GAO CONTACT
------------------------------------------------------- Chapter 32:1.1
Christopher W. Hoenig, Director, Information Resources Management
Policies and Issues, Accounting and Information Management Division,
(202) 512-6406.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 32:2
IT01: PROVIDE CLEAR, STRONG
LEADERSHIP TO INTEGRATE
INFORMATION TECHNOLOGY INTO
THE BUSINESS OF GOVERNMENT
------------------------------------------------------- Chapter 32:2.1
Create a Government Information Technology Services (GITS) Working
Group to develop a strategic vision for the use of government
information technology and to implement NPR's information technology
recommendations.
ACTION ITEMS
----------------------------------------------------- Chapter 32:2.1.1
1. Plan for effective use of information technology throughout
government.
2. Coordinate and oversee implementation of information technology
plans.
GAO COMMENTS
----------------------------------------------------- Chapter 32:2.1.2
Generally Agree. We support the recommendation for developing a
strategic vision for the use of government information technology.
We have consistently cited poor management as a root cause of
agencies' shortcomings in using information technology to streamline
their operations and improve their service to the public.
Specifically, top federal managers continue to overlook the strategic
role of information technology in reengineering business practices.
The working group has published a strategic vision and an
implementation plan. Actual implementation of the NPR
recommendations, however, would likely require resources beyond the
working group.
IMPLEMENTATION
----------------------------------------------------- Chapter 32:2.1.3
Not Implemented--Action Taken. The charter for the GITS Working
Group was approved on Feb. 10, 1994. A draft statement of work has
been developed to use contracted assistance to develop a governmental
IRM enterprise model. In addition, a strategic vision document for
improving the use of IT in the federal government was published in
September 1994. GITS is continuing to meet with interagency teams to
identify common IT implementation problems and solutions. GITS also
provided input into OMB's revision of Circular A-130 that encourages
the integration of IRM plans with agency strategic plans and budgets.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 32:2.1.4
Improving Mission Performance Through Strategic Information
Management and Technology (GAO/AIMD-94-115, May 1994).
Defense Management: Stronger Support Needed for Corporate
Information Management Initiative To Succeed (GAO/AIMD/NSIAD-94-101,
Apr. 12, 1994).
Revision of OMB'S Circular A-130 (GAO/AIMD-94-60R, Dec. 12, 1993).
Veterans Benefits: Acquisition of Information Resources for
Modernization Is Premature (GAO/IMTEC-93-6, Nov. 4, 1992).
Perceived Barriers to Effective Information Management: Results of
GAO Panel Discussions (GAO/IMTEC-92-67, Sept. 1992).
Department of Energy: Better Information Resources Management Needed
to Accomplish Missions (GAO/IMTEC-92-53, Sept. 29, 1992).
Transportation Safety: Information Strategy Needed for Hazardous
Materials (GAO/IMTEC-91-50, Sept. 25, 1991).
Meeting the Government's Technology Challenge: Results of a GAO
Symposium (GAO/IMTEC-90-23, Feb. 1990).
Tax System Modernization: IRS' Challenge for the 21st Century
(GAO/IMTEC-90-13, Feb. 8, 1990).
IT02: IMPLEMENT NATIONWIDE,
INTEGRATED ELECTRONIC
BENEFIT TRANSFER
------------------------------------------------------- Chapter 32:2.2
Design an integrated implementation plan for the use of electronic
benefit transfer for programs such as food stamps and for direct
payments to individuals without bank accounts.
ACTION ITEMS
----------------------------------------------------- Chapter 32:2.2.1
1. Design an integrated EBT implementation plan.
2. Draft policies and/or legislation needed to facilitate nationwide
implementation of EBT.
GAO COMMENTS
----------------------------------------------------- Chapter 32:2.2.2
Generally Agree. We have not yet fully studied the issue of
electronic benefit transfers within the context of these particular
programs because such initiatives are relatively new. However, we
believe this recommendation has merit and warrants further
consideration because of its potential for simplifying the delivery
of benefit payments.
IMPLEMENTATION
----------------------------------------------------- Chapter 32:2.2.3
Partially Implemented. In November 1993, a federal EBT Task Force
was chartered to implement this recommendation. Chaired by OMB, the
task force primarily consists of officials from the Departments of
Agriculture, Treasury, Health and Human Services, and Education.
In May 1994, the task force issued an integrated EBT implementation
plan as required by the first action item. This plan lays out the
strategy, challenges, and milestones for nationwide implementation of
EBT for a wide range of federal and state benefit programs. Standard
EBT services are to be available to benefit recipients in all states
by 1999.
The EBT Task Force is working with state officials to finalize a
detailed implementation plan and to identify groups of states that
will participate in EBT prototypes. Work also continues to (1)
establish standard operating rules that govern the procedures, roles,
and responsibilities of federal and state agencies, networks, card
issuers/processors, and automated teller machine or point-of-sale
terminal acquirers; and (2) select financial agents to provide
standard settlement services including the transfer of funds from
federal and state governments and the reconciliation of transactions
and funds transfers. Further, the task force plans to work with
Congress on any legislation and regulatory changes needed to
implement the final plan.
Based on its cost assumptions, the EBT Task Force's plan estimates
annual federal savings of $195 million. Cost studies of operational
EBT projects do not show conclusively that EBT is cost-effective, and
the EBT Task Force acknowledges a range of issues that must be
resolved. The most significant of these issues is the Federal
Reserve Board's decision to make EBT subject to its Regulation E
which limits the liability of benefit recipients to $50 if they
notify the government within 2 business days of learning of the loss
or theft of their access card. The states may then have to replace
these benefits--some estimate hundreds of millions of dollars--with
no additional federal funding. Other cost issues include determining
the number of free transactions allowed a benefit recipient and who
will pay for providing point-of-sale terminals.
In February 1994, the Federal Reserve Board voted to apply the same
legal framework of rights and responsibilities to EBT transactions as
for other electronic funds transfers using debit or credit cards
(Regulation E). Although provisions limiting the liability of
cardholders for unauthorized transfers do not go into effect until
March 1997, states consider the application of Regulation E to be a
"show stopper" because requirements to reinstate benefits would
result in an unfunded liability that falls chiefly on states. During
the next 3 years, the federal government will evaluate the costs and
impacts of these liability provisions.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 32:2.2.4
Food Assistance: Reducing Fraud and Abuse in the Food Stamp Program
With Electronic Benefit Transfer Technologies (GAO/T-RCED-94-125,
Feb. 2, 1994).
Child Support Enforcement: Timely Action Needed to Correct System
Development Problems (GAO/IMTEC-92-46, Aug. 13, 1992).
Welfare Programs: Ineffective Federal Oversight Permits Costly
Automated System Problems (GAO/IMTEC-92-29, May 27, 1992).
IT03: DEVELOP INTEGRATED
ELECTRONIC ACCESS TO
GOVERNMENT INFORMATION AND
SERVICE
------------------------------------------------------- Chapter 32:2.3
Use information technology initiatives to improve customer service by
creating a one-stop "800" calling service, integrated one-stop
service "kiosks," and a governmentwide electronic bulletin board
system.
ACTION ITEMS
----------------------------------------------------- Chapter 32:2.3.1
1. Coordinate, recommend, and implement information technology
initiatives to improve customer service.
2. Implement an integrated governmentwide national 800-number
calling service.
3. Implement an integrated one-stop government services kiosk.
4. Implement an integrated governmentwide one-stop electronic
bulletin board system.
5. Work with private industry to advance the implementation of
technologies that provide citizens access to government information
and services.
GAO COMMENTS
----------------------------------------------------- Chapter 32:2.3.2
Insufficient Information. While wholeheartedly supporting the use of
information technology initiatives to improve customer service, we
cannot endorse these specific initiatives without knowing further
details about them.
IMPLEMENTATION
----------------------------------------------------- Chapter 32:2.3.3
Not Implemented--Action Taken. A draft implementation plan has been
completed and the General Services Administration's Information
Resources Management Service group has been designated as the lead
agency for creating a one-stop 800 calling service. The U.S. Postal
Service (USPS) has assumed the lead in defining a governmentwide
kiosk utility and other electronic means of access to the federal
government.
Work has also been done on integrated one-stop government services
kiosks. The Social Security Administration, USPS, and the Veterans
Administration have each had a prototype kiosk since September 1993.
These three groups are meeting weekly to discuss three aspects of the
kiosks--the type of applications that can be used, the technology to
be used, and business issues (i.e., whether the potential
applications will be cost beneficial). The group plans to submit a
combined implementation plan by late 1994. Also, the National
Technical Information Services has been designated as the lead agency
to coordinate an effort to implement an on-line service (electronic
bulletin board system). Finally, the National Communications System
has assumed the lead role in developing partnerships with industry to
assist the government in improving customer service through
integrated electronic access.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 32:2.3.4
Paperwork Reduction Act: Opportunity to Strengthen Government's
Management of Information and Technology (GAO/T-AIMD/GGD-94-126, May
19, 1994).
Improving Mission Performance Through Strategic Information
Management and Technology (GAO/AIMD-94-115, May 1994).
Tax Systems Modernization: Input Processing Strategy Is Risky and
Lacks a Sound Analytical Basis (GAO/T-IMTEC-92-15, Apr. 29, 1992).
Public Access: Two Case Studies of Federal Electronic Dissemination
(GAO/IMTEC-90-44BR, May 14, 1990).
IT04: ESTABLISH A NATIONAL
LAW ENFORCEMENT/PUBLIC
SAFETY NETWORK
------------------------------------------------------- Chapter 32:2.4
Establish a national law enforcement/public safety data network for
use by federal, state, and local law enforcement officials.
ACTION ITEMS
----------------------------------------------------- Chapter 32:2.4.1
1. Formalize the Federal Law Enforcement Wireless Users Group.
2. Establish a National Law Enforcement/Public Safety Wireless
Network for use by federal, state, and local governments.
GAO COMMENTS
----------------------------------------------------- Chapter 32:2.4.2
Insufficient Information. We support the concept of interoperability
among the federal, state, and local law enforcement, public safety,
and disaster response agencies. However, we cannot reasonably agree
or disagree with this recommendation without knowing more details,
such as the requirements of the federal, state, and local agencies
involved; the cost, feasibility, and security of the approach; the
type of data that would be carried across the network; and how the
data would be used.
IMPLEMENTATION
----------------------------------------------------- Chapter 32:2.4.3
Partially Implemented. Initial actions have been taken to begin
development of the National Law Enforcement/Public Safety Wireless
Network. On April 20, 1994, the Secretary of the Treasury and the
Attorney General co-signed a memorandum of understanding (MOU)
formalizing the Federal Law Enforcement Wireless Users Group. While
the charter and membership of the group are not defined in the MOU,
the users group subsequently took action to complete them. Also, the
Government Information Technology Services Working Group issued a
memorandum in July 1994 directing the users group to coordinate the
establishment of this intergovernmental wireless network. The users
group has begun coordination with federal, state, and local agencies
and funds have been requested to initiate this effort. However, the
group has not defined cost and benefits, established budget
strategies, or developed a plan for implementing the network over the
next 10 years.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 32:2.4.4
None.
IT05: PROVIDE
INTERGOVERNMENTAL TAX
FILING, REPORTING, AND
PAYMENTS PROCESSING
------------------------------------------------------- Chapter 32:2.5
Integrate government financial filings, reporting, and payments
processing, and determine ways to eliminate the need for filing
routine tax returns.
ACTION ITEMS
----------------------------------------------------- Chapter 32:2.5.1
1. Integrate government financial filings, reporting, and payments
processing.
2. Determine ways to eliminate the need for filing routine income
tax returns.
GAO COMMENTS
----------------------------------------------------- Chapter 32:2.5.2
Generally Agree. We fully support the use of information technology
to foster intergovernmental cooperation for processing tax returns
and simplifying tax reporting. However, the infrastructure that
would provide intergovernmental access to the system is a long-term
goal of IRS' modernization and may not be feasible in the short term.
We also believe that adequate protections to prevent tax filing fraud
must be an integral part of the system's design. Finally, we
testified in 1992 about a version of return-free filing called final
withholding. Final withholding has the potential to eliminate the
need for filing routine tax returns for many taxpayers and thereby
reduce the burden on both the taxpayer and tax agency. IRS studied a
different form of return-free filing in which IRS would use wage and
financial information in its possession to prepare a return for the
taxpayer.
IMPLEMENTATION
----------------------------------------------------- Chapter 32:2.5.3
Not Implemented--Action Taken. Most of the completed work has been
related to the first action item and has concentrated on underlying
business issues through the Wage Reporting Simplification Project
(WRSP). WRSP was begun in 1990, prior to the NPR inititative, and is
a multi-agency effort to reduce the employment wage and tax reporting
burden on employers. In December 1993, the MITRE Corporation
completed a feasibility study that concluded wage simplification was
feasible and recommended that IRS develop an automated wage reporting
system. In May 1994, a working group began to define and standardize
wage components for all states, and in June 1994, another working
group began a wage reporting information system development effort to
implement the WRSP concept.
Other actions completed to implement this recommendation include (1)
a W-2 demonstration project to reduce duplicative W-2 reporting by
employers and (2) approval of a digital signature standard to
facilitate electronic filing of tax information.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 32:2.5.4
Tax Administration: Opportunities to Reduce the Burden of Filing and
Processing Tax Returns (GAO/T-GGD-92-41, May 13, 1992).
Internal Revenue Service: Opportunities to Reduce Taxpayer Burden
Through Return-Free Filing (GAO/GGD-92-88BR, May 8, 1992).
IT06: ESTABLISH AN
INTERNATIONAL TRADE DATA
SYSTEM
------------------------------------------------------- Chapter 32:2.6
Develop and implement a U.S. Government International Trade Data
System in the Treasury Department.
ACTION ITEM
----------------------------------------------------- Chapter 32:2.6.1
Develop and implement a U.S. Government International Trade Data
System.
GAO COMMENTS
----------------------------------------------------- Chapter 32:2.6.2
Generally Agree. While the details for this system have not been
established, we believe it is important to streamline the collection
of data needed to support and facilitate trade, enforce trade laws,
and collect customs revenues.
IMPLEMENTATION
----------------------------------------------------- Chapter 32:2.6.3
Not Implemented--Action Taken. This recommendation has not been
implemented. Specific action has not been taken to conceptionally
design the International Trade Data System. However, in March 1994,
OMB requested the U.S. Customs Service to chair an interagency task
force whose mission will be to develop the data system in the
Department of the Treasury. In August 1994, Customs formally agreed
to lead the interagency task force. Customs has also established the
Office of International Trade Data Exchange (INTRADEX) within its
Office of Information Management to handle this project. INTRADEX
members held an initial planning meeting in September 1994 and
established a steering committee and working groups in a separate
Sepetember 1994 meeting.
Customs has also conducted meetings with Canada Customs and Mexico
Customs to implement a North American Free Trade Agreement (NAFTA)
prototype which will lay the groundwork for the international trade
data system development. The final agreement between the three
Customs authorities to build a prototype is expected in early fiscal
year 1995.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 32:2.6.4
Measuring U.S.-Canada Trade: Shifting Trade Winds May Threaten
Recent Progress, (GAO/GGD-94-4, Jan. 19, 1994).
IT07: CREATE A NATIONAL
ENVIRONMENTAL DATA INDEX
------------------------------------------------------- Chapter 32:2.7
Organize the implementation of a National Environmental Data Index in
the Commerce Department.
ACTION ITEM
----------------------------------------------------- Chapter 32:2.7.1
Organize the implementation of a National Environmental Data Index.
GAO COMMENTS
----------------------------------------------------- Chapter 32:2.7.2
Generally Agree. Our work has shown a need to effectively share
environmental data within and among agencies responsible for
maintaining and using these data. We do not have enough detail on
the proposed National Environmental Data Index to determine if it
could facilitate such information sharing.
IMPLEMENTATION
----------------------------------------------------- Chapter 32:2.7.3
Not Implemented--Action Taken. Initial steps have been taken and
planning work has begun. On August 30, 1994, the White House issued
a memorandum to the National Oceanic and Atmospheric Administration
(NOAA) concerning the Index. Additionally, NOAA has taken a number
of steps towards developing an implementation plan for the Index.
These steps include identification of (1) agencies with relevant data
and (2) efforts which will support the Index, or which the Index will
support. Planned steps that still need to be completed to implement
the Index include (1) completion of an implementation plan for the
Index that includes establishment of data standards, (2) review of
the plan by the White House Committee on Environment and Natural
Resources, and (3) submissions to NOAA from as many as 34 agencies on
standard descriptions of all relevant environmental databases.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 32:2.7.4
Environmental Protection: EPA's Plans to Improve Longstanding
Information Resources Management Problems (GAO/AIMD-93-8, Sept. 16,
1993).
National Water Quality Assessment: Geological Survey Faces
Formidable Data Management Challenges (GAO/IMTEC-93-30, June 30,
1993).
Creation of a Department of Environmental Protection
(GAO/T-RCED-93-39, May 6, 1993).
Environmental Enforcement: EPA Needs a Better Strategy to Manage Its
Cross-Media Information (GAO/IMTEC-92-14, Apr. 2, 1992).
Food Safety: USDA Data Program Not Supporting Critical Pesticide
Decisions (GAO/IMTEC-92-11, Jan. 31, 1992).
IT08: PLAN, DEMONSTRATE,
AND PROVIDE GOVERNMENTWIDE
ELECTRONIC MAIL
------------------------------------------------------- Chapter 32:2.8
Improve electronic mail and messaging among federal agencies.
ACTION ITEMS
----------------------------------------------------- Chapter 32:2.8.1
1. Improve electronic mail and messaging among federal agencies.
2. Issue a governmentwide E-mail records management policy.
GAO COMMENTS
----------------------------------------------------- Chapter 32:2.8.2
Generally Agree. We believe that electronic mail is rapidly becoming
a fundamental tool for communications in all organizations, in both
the private and public sectors. As a result, investment in this
technology seems warranted.
IMPLEMENTATION
----------------------------------------------------- Chapter 32:2.8.3
Not Implemented--Action Taken. The administration has begun planning
for government-wide E-mail and a program management office has been
established. The Electronic Mail Task Force published a report which
evaluated the current state of federal government E-mail activity,
outlined a program plan, selected four pilot projects, and identified
issues that need to be resolved to permit governmentwide E-mail. As
a result of this report, GSA established an E-mail Program Management
Office. Additionally, an interagency working group recommended and
OMB approved $3 million in initial funding for this initiative.
As for the second action item, the National Archives and Records
Administration issued proposed rules for the handling and storage of
E-mail records in March 1994.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 32:2.8.4
None.
IT09: ESTABLISH AN
INFORMATION INFRASTRUCTURE
------------------------------------------------------- Chapter 32:2.9
Develop a government information infrastructure (GII) to use
government information resources effectively and support electronic
government applications. Consolidate and modernize government data
processing centers.
ACTION ITEMS
----------------------------------------------------- Chapter 32:2.9.1
1. Develop a Government Information Infrastructure(GII) to
effectively use government information resources and support
electronic government applications.
2. Consolidate and modernize government data processing centers.
3. Reengineer basic systems for improved delivery of government
services.
4. Consolidate and integrate federal government private networks.
GAO COMMENTS
----------------------------------------------------- Chapter 32:2.9.2
Generally Agree. Within the context of specific government
functions, we have recommended that effective electronic
infrastructures be developed. For example, our report War On Drugs:
Information Management Poses Formidable Challenges recommended that
the agencies involved establish a proper electronic infrastructure to
carry out their coordinated drug interdiction efforts. Therefore,
while we support the development of critical electronic
infrastructures to support specific programs, we do not have enough
information about "a government information infrastructure" to
endorse it. However, it should be noted that an electronic
infrastructure would likely involve state and local governments that
have the primary delivery roles for computer-dependent welfare and
health programs. We also generally support the concept of
consolidating and modernizing government data processing centers.
IMPLEMENTATION
----------------------------------------------------- Chapter 32:2.9.3
Not Implemented--Action Taken. The Government Information Technology
Services Working Group has developed a draft plan/architecture for a
government information infrastructure. The working group has
established the Federal Data Center Consolidation Committee to
identify opportunities for consolidating federal data processing
centers. The committee expects to complete its action plan and
deliver its recommendations to OMB by December 1994.
The Integrated Services Panel has been established to identify
opportunities for consolidating and sharing the government's private
networks. The panel is currently working with the FTS 2000
Interagency Management Council to identify federal agencies'
networking resources and opportunities for consolidation. A list of
consolidation opportunities is expected in December 1994. An action
plan to reengineer basic government systems is expected in July 1995.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 32:2.9.4
Paperwork Reduction Act: Opportunity to Strengthen Government's
Management of Information and Technology (GAO/T-AIMD/GGD-94-126, May
19, 1994).
Executive Guide: Improving Mission Performance Through Strategic
Information Management and Technology (GAO/AIMD-94-115, May 1994).
Weather Forecasting: Systems Architecture Needed for National
Weather Service Modernization (GAO/AIMD-94-28, Mar. 11, 1994).
Tax Systems Modernization: Status of Planning and Technical
Foundation (GAO/T-AIMD-GGD-94-104, Mar. 2, 1994).
Perceived Barriers to Effective Information Management: Results of
GAO Panel Discussions (GAO/IMTEC-92-67, Sept. 1992).
Geographic Information System: Forest Service Has Resolved GAO
Concerns About Its Proposed Nationwide System (GAO/T-IMTEC-92-14,
Apr. 28, 1992).
War On Drugs: Information Management Poses Formidable Challenges
(GAO/IMTEC-91-40, May 31, 1991).
Meeting the Government's Technology Challenge: Results of a GAO
Symposium (GAO/IMTEC-90-23, Feb. 1990).
IT10: DEVELOP SYSTEMS AND
MECHANISMS TO ENSURE PRIVACY
AND SECURITY
------------------------------------------------------ Chapter 32:2.10
Establish a Privacy Protection Board. Establish uniform privacy
protection practices and generally acceptable implementation methods
for these practices. Develop a digital signature standard for
sensitive, unclassified data by December 1994.
ACTION ITEMS
---------------------------------------------------- Chapter 32:2.10.1
1. Establish a Privacy Protection Board.
2. Establish uniform privacy protection practices and generally
acceptable implementation methods for these practices.
3. Develop standard encryption capabilities and digital signatures
for sensitive unclassified data.
4. Develop generally accepted principles and practices for
information security.
5. Develop a national crisis response clearinghouse.
6. Emphasize the need for information security in sensitive
unclassified systems.
7. Reevaluate security practices related to national security data.
8. Foster the industry-government partnership for improving services
and security in public telecommunications.
9. Implement the National Industrial Security Program.
10. Develop comprehensive Internet security plan.
11. Coordinate security research and development.
GAO COMMENTS
---------------------------------------------------- Chapter 32:2.10.2
Generally Agree. We have identified agencies' inability to ensure
the security, integrity, or reliability of information systems as one
of the 10 managerial and operational problems most cited in our past
work. Indeed, the scope of these problems is so large that
establishment of such a board can only be regarded as a first step in
resolving these issues. Therefore, we strongly agree with the
fundamental principle that data used in federal systems must be
adequately protected. However, without more details about the
organization and functions of the proposed "Privacy Protection
Board," we cannot fully endorse the proposal. Also, the Comptroller
General has concluded that digital signatures can be used to meet the
requirements of 31 U.S.C. 1501 for recording an obligation (71 Comp.
Gen. 109, 1991). Further, the National Institute of Standards and
Technology has issued a digital signature standard. The effective
date for implementing this standard is December 1994.
IMPLEMENTATION
---------------------------------------------------- Chapter 32:2.10.3
Not Implemented--Action Taken. None of the action items have been
completed, but initial action has been taken on all of them. For
example, (1) on May 25, 1994, the Information Infrastructure Task
Force published for public comment its draft principles on uniform
privacy protection as called for in action item two; and (2) as part
of action item three, the National Institute of Standards and
Technology expects to make the final digital signature standard
effective in December 1994.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 32:2.10.4
Controlling Electronic Filing Fraud and Improper Access To Taxpayer
Data (GAO/T-AIMD/GGD-94-183, July 19, 1994).
Benefits and Barriers to Automated Medical Records
(GAO/T-AIMD-94-117, May 6, 1994).
Communications Privacy: Federal Policy and Actions (GAO/OSI-94-2,
Nov. 4, 1993).
Tax Systems Modernization: Concerns Over Security and Privacy
Elements of the Systems Architecture (GAO/IMTEC-92-63, Sept. 21,
1992).
Computers and Privacy: How the Government Obtains, Verifies, Uses,
and Protects Personal Data (GAO/IMTEC-90-70BR, Aug. 3, 1990).
IT11: IMPROVE METHODS OF
INFORMATION TECHNOLOGY
ACQUISITION
------------------------------------------------------ Chapter 32:2.11
(See PROC08, PROC09, PROC14, SUP04, and FM06.)
ACTION ITEMS
---------------------------------------------------- Chapter 32:2.11.1
1. Conduct a 2-year pilot test of a modernized IT acquisition
framework.
2. Increase delegation of authority to agencies.
3. Expand use of commercial credit cards.
4. Pilot test innovative approaches under the Multiple Award
Schedule Program.
5. Expand electronic commerce.
6. Provide incentives for improved IT acquisition service
efficiency.
GAO COMMENTS
---------------------------------------------------- Chapter 32:2.11.2
Generally Agree. As discussed in our December 1992 transition series
report on Information Management and Technology Issues, even
well-planned efforts to modernize the use of information technology
can be adversely affected by the federal acquisition management and
budget processes. A fundamental dichotomy is at work in large-scale
systems development projects: the acquisition management process
demands certainty and is risk-averse, yet systems development is
inherently uncertain and risk-intensive. The Federal Acquisition
Streamlining Act of 1994 takes steps to address this problem by
increasing the efficiency of the acquisition process. Recent GAO
work indicates that procurement risks can be reduced by managing
information technology as an investment, developing major projects in
increments, and maintaining senior management oversight.
IMPLEMENTATION
---------------------------------------------------- Chapter 32:2.11.3
Not Implemented--Action Taken. Some action has been taken on each of
the above support recommendations, but none has been fully
implemented. For example, (1) GSA is conducting pilot tests of
alternative IT acquisition methods at two agencies and other pilots
are being considered, (2) a Federal Information Resource Management
Regulation interim rule increasing delegation of procurement
authority thresholds was published in October 1994 in the Federal
Register, (3) senior officials from 10 federal agencies signed a
pledge to significantly expand the use of purchase cards with a
target of increasing the dollar volume and number of card holders 100
percent by October 1994, (4) two pilot tests of automated Multiple
Award Schedule systems under 70B/C have been initiated, (5) the
President issued a directive on October 26, 1993, requiring that the
government implement an electronic commerce system by January 1997
(the resultant federal EC Acquisition Team has issued a draft report
on streamlining procurement through electronic commerce), and (6) an
ad hoc planning committee representing several agencies has met to
discuss sharing resources through franchising issues that include
IT-related services.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 32:2.11.4
OMB and GSA: Federal Procurement Data System Improvements
(GAO/AIMD-94-178R, Aug. 19, 1994).
Executive Guide: Improving Mission Performance Through Strategic
Information Management and Technology (GAO/AIMD-94-115, May 1994).
Paperwork Reduction Act: Opportunity to Strengthen Government's
Management of Information and Technology (GAO/T-AIMD/GGD-94-126, May
19, 1994).
Information Management: Need for A Chief Information Officer for the
General Services Administration (GAO/T-AIMD-94-98, Mar. 24, 1994).
Information Management and Technology Issues (GAO/OCG-93-5TR, Dec.
1992).
Information Technology: An Audit Guide for Assessing Acquisition
Risks (GAO/IMTEC-8.1.4, Dec. 1992).
ADP Procurements: GSA Needs to Improve Its Review Process to Enhance
Its ADP Oversight (GAO/IMTEC-92-7, Oct. 28, 1991).
Information Technology: A Model to Help Managers Decrease
Acquisition Costs (GAO/IMTEC-8.1.6, Aug. 1990).
IT12: PROVIDE INCENTIVES
FOR INNOVATION
------------------------------------------------------ Chapter 32:2.12
Retain a portion of agency information technology savings to reinvest
in information technology. Promote performance-based contracting for
information technology. Establish a governmentwide venture capital
fund for innovative information technology projects.
ACTION ITEMS
---------------------------------------------------- Chapter 32:2.12.1
1. Retain a portion of agency information technology savings for
reinvestment.
2. Promote performance-based contacting for information technology.
3. Use multiyear funding for agency information technology projects.
4. Establish a governmentwide venture capital fund for innovative
information technology projects.
GAO COMMENTS
---------------------------------------------------- Chapter 32:2.12.2
Insufficient Information. GAO agrees that making capital available
for innovation could help the government use technology more
effectively and strengthen and modernize its support services.
However, it is not clear how this reinvestment would work. On the
basis of recent work, we believe that the H.R. 3400 proposal to
establish innovation funds raised serious questions about legislative
oversight and would be a significant departure from current
legislative/executive relationships. Furthermore, it is questionable
whether the budget mechanism as proposed would be self-sustaining.
Finally, we believe that existing working capital funds or other
types of revolving funds could be used to fund agency efforts to
promote innovation.
IMPLEMENTATION
---------------------------------------------------- Chapter 32:2.12.3
Not Implemented--Action Taken. The administration is engaged in
several activities designed to implement this recommendation. OMB's
current budget guidance includes an explanation about identifying
information technology derived savings for reinvestment in future
years. Also, OMB has asked agencies to identify major new IT
projects that require multiyear funding. Finally, a federal IT
Acquisition Team has developed an action plan that, if implemented,
would promote governmentwide, performance-based contracting for IT.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 32:2.12.4
Improving Government: GAO's Views on H.R. 3400 Management
Initiatives (GAO/T-AIMD/GGD-94-97, Feb. 23, 1994).
Working Capital Funds: Three Agency Perspectives (GAO/AIMD-94-121,
May 20, 1994).
IT13: PROVIDE TRAINING AND
TECHNICAL ASSISTANCE IN
INFORMATION TECHNOLOGY TO
FEDERAL EMPLOYEES
------------------------------------------------------ Chapter 32:2.13
Establish a program to train nontechnical senior executives and
political appointees in information technology. Require managers of
information resources to meet certification standards. Promote
collegial assistance in using information technology. Include
training costs as part of all information technology purchases.
ACTION ITEMS
---------------------------------------------------- Chapter 32:2.13.1
1. Establish a program to train nontechnical senior executives and
political appointees in information technology.
2. Require minimum competency in information technology for Senior
Executive Service candidates.
3. Require IRM managers to meet certification standards.
4. Promote collegial assistance for IT.
5. Include training as part of all information technology contracts
and acquisitions.
GAO COMMENTS
---------------------------------------------------- Chapter 32:2.13.2
Generally Agree. We agree and generally support effective efforts to
raise the level of knowledge of information resources management in
federal agencies. In 1991, participants in a GAO-sponsored
roundtable identified a lack of skills or information on how to
manage technology as a barrier to effective information management.
Specifically, they believed that staff at all levels of government
lacked the training, background, or education necessary to
successfully implement--or even understand--information resources
management.
IMPLEMENTATION
---------------------------------------------------- Chapter 32:2.13.3
Not Implemented--Action Taken. This recommendation is comprised of
five separate goals. No action has occurred on three of these goals.
These goals were to (1) establish a program to train senior federal
managers in information technology, (2) require managers of
information technology to meet certification standards, and (3)
promote collegial assistance for information technology. Limited
progress has been made on the other two goals. OPM has taken initial
steps to ensure that Senior Executive Service (SES) candidates have
minimum competency in information technology. For example, OPM is
reviewing SES vacancy announcements for IT competency requirements
and is drafting IT qualification guidance for SES candidates. GSA
and OPM are also developing guidelines for including training in
information technology contracts.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 32:2.13.4
Perceived Barriers to Effective Information Management: Results of
GAO Panel Discussions (GAO/IMTEC-92-67, Sept. 1992).
Management of HHS: Using the Office of the Secretary to Enhance
Departmental Effectiveness (GAO/HRD-90-54, Feb. 9, 1990).
Managing IRS: Actions Needed to Assure Quality Service in the Future
(GAO/GGD-89-1, Oct. 14, 1988).
RETHINKING PROGRAM DESIGN (DES)
=========================================================== Chapter 33
OVERALL SUMMARY
--------------------------------------------------------- Chapter 33:1
No progress has been made in implementing these four recommendations.
These are the only body of recommendations where no progress has been
made to date.
GAO CONTACT
------------------------------------------------------- Chapter 33:1.1
William M. Hunt, Director, Federal Management Issues, General
Government Division, (202) 512-8676.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 33:2
DES01: ACTIVATE PROGRAM
DESIGN AS A FORMAL
DISCIPLINE
------------------------------------------------------- Chapter 33:2.1
The President's Management Council should commission the development
of a handbook to help federal managers understand the strengths and
weaknesses of various forms of program design.
ACTION ITEMS
----------------------------------------------------- Chapter 33:2.1.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 33:2.1.2
Generally Agree. We agree that substantial benefits can be gained
through analysis of diverse program design methodologies as they
relate to specific program goals or objectives. We have not studied
the feasibility of a handbook as cited by NPR, but note that many
benefits may be derived from program design guidelines and resources
such as the handbook.
IMPLEMENTATION
----------------------------------------------------- Chapter 33:2.1.3
Not Implemented--No Action Taken. There has been no progress on this
recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 33:2.1.4
Partnership Projects: A Framework for Evaluating Public-Private
Housing and Development Efforts (GAO/PEMD-90-9, May 22, 1990).
Federal Budget: Choosing Public Investment Programs (GAO/AIMD-93-25,
Mar. 23, 1993).
DES02: ESTABLISH PILOT
PROGRAM DESIGN CAPABILITIES
IN ONE OR TWO AGENCIES
------------------------------------------------------- Chapter 33:2.2
Test the usefulness of the program design handbook and the value of
program design as a useful discipline.
ACTION ITEMS
----------------------------------------------------- Chapter 33:2.2.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 33:2.2.2
Generally Agree. As discussed in the comment for DES01, we have not
studied the feasibility of a handbook as cited by NPR. However, if a
handbook is developed, pilot testing it in a few agencies would be an
effective way to observe and analyze the feasibility of different
program design methodologies.
IMPLEMENTATION
----------------------------------------------------- Chapter 33:2.2.3
Not Implemented--No Action Taken. There has been no progress on this
recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 33:2.2.4
Groundwater Protection: Validity and Feasibility of EPA's
Differential Protection Strategy (GAO/PEMD-93-6, Dec. 9, 1992).
Rental Housing: Implementing the New Federal Incentives to Deter
Prepayments of HUD Mortgages (GAO/PEMD-91-2, Apr. 30, 1991).
DES03: ENCOURAGE THE
STRENGTHENING OF PROGRAM
DESIGN IN THE LEGISLATIVE
BRANCH
------------------------------------------------------- Chapter 33:2.3
The President's Management Council should work with congressional
support agencies to help them strengthen their program design
capacities.
ACTION ITEMS
----------------------------------------------------- Chapter 33:2.3.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 33:2.3.2
Generally Agree. Although we have not assessed specific mechanisms,
we agree that it is important for executive branch and congressional
support agencies to learn from one another to better assist
decisionmakers in designing federal programs.
IMPLEMENTATION
----------------------------------------------------- Chapter 33:2.3.3
Not Implemented--No Action Taken. There has been no progress on this
recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 33:2.3.4
Public Health Service: Evaluation Set-Aside Has Not Realized Its
Potential to Inform the Congress (GAO/PEMD-93-13, Apr. 8, 1993).
DES04: COMMISSION PROGRAM
DESIGN COURSES
------------------------------------------------------- Chapter 33:2.4
Develop training courses for managers and policymakers on various
program design approaches.
ACTION ITEMS
----------------------------------------------------- Chapter 33:2.4.1
No action items were published by NPR by September 7, 1994.
GAO COMMENTS
----------------------------------------------------- Chapter 33:2.4.2
Generally Agree. Although we have not identified the scope or
magnitude of specific training needs of managers and policymakers, we
strongly agree that program design training is necessary to ensure
that managers and policymakers fully understand the strengths and
weaknesses associated with program design methodologies.
IMPLEMENTATION
----------------------------------------------------- Chapter 33:2.4.3
Not Implemented--No Action Taken. There has been no progress on this
recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 33:2.4.4
None.
STRENGTHENING THE PARTNERSHIP IN
INTERGOVERNMENTAL SERVICE DELIVERY
(FSL)
=========================================================== Chapter 34
OVERALL SUMMARY
--------------------------------------------------------- Chapter 34:1
Legislation has been enacted in selected areas to develop a framework
for improved federal/state/local relations. Legislative actions such
as the Goals 2000: Educate America Act, the Human Service
Amendments, and the creation of the Empowerment Zones and Enterprise
Communities Program foster bottom-up strategies to address the
problem of grant proliferation and its accompanying red tape. While
these initiatives address a small portion of the federal grant
system, they could provide a body of knowledge about how the overall
system should be reformed.
There has been little or no progress in areas such as reducing red
tape through regulatory relief, simplifying reimbursement procedures
for administrative costs of federal grant disbursement, simplifying
the compliance certification process, and modifying the common grant
rule on small purchases. Efforts to implement these recommendations
will require modification of agency and governmentwide rules and
regulations which are in various stages of drafting and review.
Additionally, the administration and Congress need to agree on the
size and capacity of the Advisory Commission on Intergovernmental
Relations (ACIR) if it is to serve as a catalyst for strengthening
the intergovernmental service delivery partnership.
GAO CONTACT
------------------------------------------------------- Chapter 34:1.1
Jane L. Ross, Director, Income Security Issues, Health, Education,
and Human Services Division, (202) 512-7215.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 34:2
FSL01: IMPROVE THE DELIVERY
OF FEDERAL DOMESTIC GRANT
PROGRAMS
------------------------------------------------------- Chapter 34:2.1
Create flexibility and encourage innovation by designing a bottom-up
solution to the problem of grant proliferation and its accompanying
red tape. Also, support the pending proposal for Federal-State
Flexibility Grants that has been developed by the National Governors
Association and the National Conference of State Legislatures.
Establish a Cabinet-level Enterprise Board to oversee new initiatives
in community improvement.
ACTION ITEMS
----------------------------------------------------- Chapter 34:2.1.1
1. Create flexibility and encourage innovation by designing a
bottom-up solution to the problem of grant proliferation and its
accompanying red tape.
2. Support proposals for Federal-State Flexibility Grants.
3. Establish a Cabinet-level Enterprise Board to oversee new
initiatives in community empowerment.
GAO COMMENTS
----------------------------------------------------- Chapter 34:2.1.2
Agree. We agree that new federal strategies need to be explored to
assist state and local governments to develop solutions to improving
service delivery. However, as we have reported, because states
occupy an increasingly central place in the intergovernmental system,
the combination of reduced federal support and increased requirements
pose a special threat to states' leadership. We have also documented
the efficacy of seeking service delivery solutions at points nearest
to the client rather than through "top-down" efforts. While we have
not done work evaluating specific strategies to improve the overall
capacity of state and local governments to deliver domestic services,
we agree that the federal role should be one that supports "local
solutions for local problems."
IMPLEMENTATION
----------------------------------------------------- Chapter 34:2.1.3
Partially Implemented. Several laws have been enacted addressing
this recommendation. The Goals 2000: Educate America Act (P.L.
103-227) encourages state and local agencies to develop comprehensive
improvement plans, providing a framework for program integration, and
gives the Education Secretary the authority to waive federal
statutory and regulatory requirements. The Human Services Amendments
(P.L. 103-227) created the Community Based Family Resource Program,
which consolidated four HHS programs to assist states in developing
and implementing a comprehensive system of social service resources
for families. The Empowerment Zones and Enterprise Communities
Program was created by Public Law 103-66 to assist poverty-stricken
inner city and rural communities in identifying their assets and
problems and structuring plans to improve conditions. Further, an
executive order called for increased flexibility for state/local
waivers. Per this order, agencies are to review and streamline their
waiver application processes and consider waiver applications, where
applicable, with the goal of increasing opportunities for utilizing
regulatory approaches at the state/local levels. While these laws
and orders provide some framework for addressing this recommendation,
agencies still need to develop procedures and regulations to
implement the legislative initiatives.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 34:2.1.4
Single Audit: Refinements Can Improve Usefulness (GAO/AIMD-94-133,
June 21, 1994).
Long Term Care Forum (GAO/HRD-93-1-SP, July 13 & 14, 1993).
Integrating Human Services: Linking At-Risk Families with Services
More Successful than System Reform Efforts (GAO/HRD-92-108, Sept.
24, 1992).
Services for the Elderly: Transportation Problems Need More Federal
Attention (GAO/HRD-91-117, Aug. 29, 1991).
Effectiveness of Reporting Laws and Other Factors in Identifying,
Preventing, and Treating Elder Abuse (GAO/T-HRD-91-27, May 15, 1991).
Elder Abuse: Effectiveness of Reporting Laws and Other Factors
(GAO/HRD-91-74, Apr. 24, 1991).
Administration on Aging: More Federal Action Needed to Promote
Service Coordination of the Elderly (GAO/HRD-91-45, Apr. 23, 1991).
FSL02: REDUCE RED TAPE
THROUGH REGULATORY AND
MANDATE RELIEF
------------------------------------------------------- Chapter 34:2.2
Issue an executive order addressing the problems of unfunded federal
mandates and regulatory relief and authorize cabinet secretaries and
agency heads to obtain selective relief from regulations or mandates
in programs they oversee.
ACTION ITEMS
----------------------------------------------------- Chapter 34:2.2.1
1. Give cabinet secretaries and agency heads the flexibility to
authorize selective relief from regulations or mandates.
2. Issue a regulatory executive order addressing the problems of
unfunded federal mandates and regulatory relief.
GAO COMMENTS
----------------------------------------------------- Chapter 34:2.2.2
Agree. While regulation of states and localities is an important
tool for the federal government to attain its statutory objectives,
tensions among levels of government have mounted over the years as
regulatory requirements, preemptions, and mandates increased. The
cumulative effect of these increases could force state and local
governments to choose between meeting their service responsibilities
and fulfilling national regulatory objectives.
IMPLEMENTATION
----------------------------------------------------- Chapter 34:2.2.3
Partially Implemented. One law has been enacted related to this
recommendation. The Goals 2000: Educate America Act encourages
state and local agencies to develop comprehensive improvement plans,
providing a framework for program integration, and gives the
Education Secretary the authority to waive federal statutory and
regulatory requirements. Other legislation has been proposed to
address this recommendation, but most have not been passed. These
other bills (H.R. 820, the Regulatory Flexibility Amendments Act of
1993; H.R. 3421, the Federal Mandate Reduction, Reform, and Budget
Act of 1993; S. 165, Amendments to the Regulatory Flexibility Act;
S. 490, the Regulatory Flexibility Amendments Act of 1993; S. 648,
the Federal Mandates Relief Act of 1993, section 3; S. 993, the
Community Regulatory Relief Act) would provide for changes to the
federal regulatory rulemaking process. The proposed bills would
impose either more thorough analysis of the impact of federal
regulation or federal reimbursement to states and localities for the
direct costs of federal rules and regulations.
The administration issued Executive Order 12875 in October 1993,
which calls for increased flexibility for state/local waivers. The
order directs federal agencies to review and streamline their waiver
application processes with the goal of increasing opportunities for
utilizing regulatory approaches at the state and local levels. In
addition, OMB is convening quarterly meetings with intergovernmental
partners to identify actions to improve regulations affecting states
and localities.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 34:2.2.4
Regulatory Flexibility Act: Inherent Weaknesses May Limit Its
Usefulness for Small Governments (GAO/HRD-91-16, Jan. 11, 1991).
Federal-State-Local Relations: Trends of the Past Decade and
Emerging Issues (GAO/HRD-90-34, Mar. 22, 1990).
Legislative Mandates: State Experiences Offer Insights for Federal
Action (GAO/HRD-88-75, Sept. 24, 1988).
Discretionary Grants: Opportunities to Improve Federal Discretionary
Award Practices (GAO/HRD-86-108, Sept. 15, 1986).
FSL03: SIMPLIFY
REIMBURSEMENT PROCEDURES FOR
ADMINISTRATIVE COSTS OF
FEDERAL GRANT DISBURSEMENT
------------------------------------------------------- Chapter 34:2.3
Modify OMB Circular A-87, "Cost Principles for State and Local
Governments," to provide a fixed fee-for-service option in lieu of
costly reimbursement procedures covering actual administrative costs
of grant disbursement.
ACTION ITEM
----------------------------------------------------- Chapter 34:2.3.1
Modify OMB Circular A-87 to provide a fee-for-service option in lieu
of cost reimbursement.
GAO COMMENTS
----------------------------------------------------- Chapter 34:2.3.2
Insufficient Information. Simplifying administrative cost
reimbursement procedures could be less costly and burdensome for
state and local governments. We have not reviewed this issue to
determine the extent of the problem or the potential cost savings.
IMPLEMENTATION
----------------------------------------------------- Chapter 34:2.3.3
Not Implemented--No Action Taken. No action has been taken, to
implement this recommentation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 34:2.3.4
None.
FSL04: ELIMINATE NEEDLESS
PAPERWORK BY SIMPLIFYING THE
COMPLIANCE CERTIFICATION
PROCESS
------------------------------------------------------- Chapter 34:2.4
Simplify OMB's requirements to prepare multiple grant compliance
certifications by allowing state and local governments to submit a
single certification to a single point of contact in the federal
government.
ACTION ITEM
----------------------------------------------------- Chapter 34:2.4.1
Simplify grant compliance certifications by modifying OMB's
requirements.
GAO COMMENTS
----------------------------------------------------- Chapter 34:2.4.2
Generally Agree. We support efforts to reduce needless paperwork.
However, a single point of contact in the federal government must be
identified.
IMPLEMENTATION
----------------------------------------------------- Chapter 34:2.4.3
Not Implemented--Action Taken. OMB is in the process of developing
options to simplify state and local compliance certifications, which
will result in a draft proposed rule. According to an OMB official,
they have received comments and ideas from their meetings with key
agency officials.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 34:2.4.4
None.
FSL05: SIMPLIFY
ADMINISTRATION BY MODIFYING
THE COMMON GRANT RULES ON
SMALL PURCHASES
------------------------------------------------------- Chapter 34:2.5
Modify OMB Circular A-102, "Grants and Cooperative Agreements to
State and Local Governments," to increase the dollar threshold for
small purchases by local governments from $25,000 to $100,000.
ACTION ITEM
----------------------------------------------------- Chapter 34:2.5.1
Modify OMB Circular A-102 to require that the common grants
management rules increase the dollar threshold for small purchases by
local governments from $25,000 to $100,000.
GAO COMMENTS
----------------------------------------------------- Chapter 34:2.5.2
Generally Agree. While we have not recently studied the issue of
raising the thresholds with regard to small purchases by local
governments, we have taken the stance that thresholds for small
purchases for the federal government should be raised. Overall, we
believe that grant administration can be simplified. However, we
have no empirical evidence to suggest appropriate dollar thresholds
for small purchases by local governments.
IMPLEMENTATION
----------------------------------------------------- Chapter 34:2.5.3
Not Implemented--Action Taken. Draft regulations have been developed
by OMB and circulated among executive agencies. These regulations
would increase the dollar threshold for small purchases by local
governments from $25,000 to the lesser of either $100,000 or a
percentage of the purchase price.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 34:2.5.4
None.
FSL06: STRENGTHEN THE
INTERGOVERNMENTAL
PARTNERSHIP
------------------------------------------------------- Chapter 34:2.6
Reinvent the Advisory Commission on Intergovernmental Relations
(ACIR) and charge it with the responsibility for continuous
improvement in federal, state, and local partnership and
intergovernmental service delivery. Direct the ACIR to identify
opportunities to improve intergovernmental service delivery and
develop a set of benchmarks.
ACTION ITEMS
----------------------------------------------------- Chapter 34:2.6.1
1. Reinvent the ACIR and charge it with responsibility for
continuous improvement in federal, state, and local partnership and
intergovernmental service delivery.
2. Develop appropriate benchmarks and performance measures to
improve the understanding of public service delivery effectiveness.
3. Convene meetings which draw together leaders from federal, state,
and local governments to review, refine, and advance the
intergovernmental recommendations of the National Performance Review.
GAO COMMENTS
----------------------------------------------------- Chapter 34:2.6.2
Generally Agree. We fully support strengthening intergovernmental
partnerships to improve the delivery of services. Because state and
local governments are often the frontline providers of services,
their views on ways to improve program efficiency and effectiveness
should be given the utmost consideration. While a reinvigorated ACIR
could be the focal point for identifying opportunities to improve
intergovernmental partnerships, we have not done work to support this
expanded role and it is conceivable that other entities could also
perform this function. For example, individual federal agencies must
become more involved in pursuing opportunities for stronger
partnerships with state and local governments within existing
structures.
IMPLEMENTATION
----------------------------------------------------- Chapter 34:2.6.3
Partially Implemented. The Goals 2000: Educate America Act calls
for the establishment of benchmarks in state improvement plans.
Also, the Community Enterprise Board included benchmark requirements
in its application package to encourage communities to set real goals
and performance benchmarks for measuring revitalization progress. A
new ACIR executive director has been selected, members have been
selected from federal, state, and local governments, and they are
meeting on a quarterly basis to discuss the NPR recommendations.
However, due to ACIR's limited budget, the agency is looking for
outside sources to develop performance benchmark research. ACIR
noted that federal agencies will have to develop performance
benchmarks because of their Government Performance Act requirements.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 34:2.6.4
Federal-State-Local Relations: Trends of the Past Decade and
Emerging Issues (GAO/HRD-90-34, Mar. 22, 1990).
REINVENTING ENVIRONMENTAL
MANAGEMENT (ENV)
=========================================================== Chapter 35
OVERALL SUMMARY
--------------------------------------------------------- Chapter 35:1
The four recommendations for reinventing environmental management
have been implemented in varying degrees. The recommendation to
increase environmentally and economically beneficial landscaping has
been fully implemented through the issuance of an executive order
(ENV04). Two recommendations have been partially implemented: An
executive order has been issued, an interagency working group has
been established and legislation has been enacted to increase energy
and water efficiency (ENV03), and an interagency task force has begun
to develop cross-agency ecosystem planning and management (ENV02).
Although steps have been taken to improve federal decisionmaking
through environmental cost accounting, none of the action items for
implementing this recommendation has been addressed directly (ENV01).
Generally, action on the recommendations for reinventing
environmental management appears to be slowed by the need for
involvement across federal agencies.
GAO CONTACT
------------------------------------------------------- Chapter 35:1.1
Peter F. Guerrero, Director, Environmental Protection Issues,
Resources, Community, and Economic Development Division (RCED), (202)
512-6111 (for ENV01 and ENV04); James Duffus III, Director, Natural
Resources Management Issues, RCED, (202) 512-7756 (for ENV02); and
Victor S. Rezendes, Director, Energy and Science Issues, RCED (202)
512-3841 (for ENV03).
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 35:2
ENV01: IMPROVE FEDERAL
DECISIONMAKING THROUGH
ENVIRONMENTAL COST
ACCOUNTING
------------------------------------------------------- Chapter 35:2.1
Develop demonstration projects to test the applicability of
environmental cost accounting. Based on project results, develop
guidelines to implement environmental cost accounting throughout the
federal government. Issue an executive order to encourage the use of
environmental cost accounting by federal agencies.
ACTION ITEMS
----------------------------------------------------- Chapter 35:2.1.1
1. Develop pilot projects to demonstrate the use of environmental
cost accounting by the federal government.
2. Report on the demonstration projects and make recommendations on
the use of environmental cost accounting in the federal government.
3. Issue a directive to implement environmental cost accounting in
the federal government.
GAO COMMENTS
----------------------------------------------------- Chapter 35:2.1.2
Generally Agree. We concur that environmental cost accounting has
merit and could help federal agencies conduct their operations in a
more environmentally sound manner. We have related work on
environmental auditing at federal agencies under way.
IMPLEMENTATION
----------------------------------------------------- Chapter 35:2.1.3
Not Implemented--Action Taken. Without directly addressing the
action items under this recommendation, the Environmental Protection
Agency (EPA) and the Department of Defense (DOD) have taken a number
of steps to promote environmental cost accounting. For example, EPA
has initiated a Design for the Environment program that works closely
with private sector partners to incorporate environmental
considerations at the front end of products and processes. Through a
Management Accounting and Capital Budgeting for Environmental Costs
project, this program's officials are encouraging businesses to fully
account for environmental costs in their business decisions and
budgeting practices. EPA also convened a workshop of key
stakeholders, who developed an action agenda identifying steps that
the business community, professional associations, academia,
government, and small businesses can take to improve environmental
accounting and integrate environmental cost information into
decisionmaking. This agenda suggests, among other things, that EPA
continue to facilitate environmental accounting. Grant funding is
under way to support EPA's efforts to inform practitioners of
available cost accounting methods. DOD is asking its military
departments for volunteer pilot projects to test the applicability
and effectiveness of environmental cost accounting in the federal
government. DOD has also drafted a new standard for systems
engineering that will include environmental cost considerations for
acquisitions (action item 1). Efforts to address the second and
third action items under this recommendation will depend on the
lessons learned from the demonstration projects.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 35:2.1.4
None.
ENV02: DEVELOP CROSS-AGENCY
ECOSYSTEM PLANNING AND
MANAGEMENT
------------------------------------------------------- Chapter 35:2.2
Issue an executive order to encourage sustainable economic
development and ensure sustainable ecosystems through a cross-agency
ecosystem management process. Begin phased-in implementation of the
policy with selected ecosystem management demonstration projects.
Conduct management and budget reviews of the ecosystem management
projects as part of the fiscal year 1995 budget process.
ACTION ITEMS
----------------------------------------------------- Chapter 35:2.2.1
1. Issue an ecosystem management directive by September 1994.
2. Establish a high-level Interagency Ecosystem Management Task
Force to begin development of a number of cross-agency ecosystem
management demonstration projects.
3. Conduct management and budget reviews for the ecosystem
management projects as part of the fiscal year 1995 budget process.
4. Establish Regional Ecosystem Management Teams for each of the
cross-agency ecosystem management projects.
5. Develop initial ecosystem management plans for projects, report
on progress, and begin implementation.
GAO COMMENTS
----------------------------------------------------- Chapter 35:2.2.2
Agree. As we reported in August 1994, initiatives by the
administration and individual agencies to implement a governmentwide
approach to ecosystem management reflect a growing recognition that
the current practice of managing individual politically or
administratively established land units and individual natural
resources is not adequately addressing two basic legislative
mandates: (1) to sustain in perpetuity multiple uses of federal
lands and (2) to provide minimum levels of protection for individual
natural resources. Ecosystem management seeks to change the federal
government's approach to fulfilling these stewardship
responsibilities through a better scientific understanding of their
relationship to one another. We concluded that although the
administration's fiscal year 1995 budget proposes to fund the initial
stage of a governmentwide approach to ecosystem management,
additional actions are needed, including (1) clarifying the policy
goal for ecosystem management, (2) taking certain practical steps to
implement the principles set forth in the budget document, (3)
testing the approach in certain geographic areas to identify barriers
and options for resolving them, (4) establishing outcome-oriented and
measurable objectives and milestones, and (5) becoming more
accountable to Congress. The NPR recommendation's action items are
consistent with these conclusions.
IMPLEMENTATION
----------------------------------------------------- Chapter 35:2.2.3
Partially Implemented. In 1993, the White House Office on
Environmental Policy established an Interagency Ecosystem Management
Task Force to implement an ecosystem approach to environmental
management. The task force was charged with establishing overarching
goals for all federal agencies; removing barriers that frustrate more
effective, efficient interagency cooperation; and learning from
large-scale ecosystem-based management efforts. The task force is
chaired by the Director of the White House Office on Environmental
Policy and is composed of assistant secretaries from 12 departments
and agencies as well as representatives from OMB and the White House
Office of Science and Technology Policy (action item 2).
Progress has also been made toward implementing the other four action
items under this recommendation. For example, the task force
prepared and approved a draft "Ecosystem Management Initiative
Overview" that summarizes the efforts of the agencies to clarify
goals, translate principles, and derive lessons from ongoing
ecosystem management efforts that can be applied to other ecosystems
(action item 1). The task force also developed the administration's
fiscal year 1995 budget proposal to fund the initial stage of a
governmentwide approach to ecosystem management, including four pilot
projects. The task force formed an interagency work group to examine
major factors that influence the effectiveness of ecosystem
management--such as the budget process, legal authorities, and
information management--and to make recommendations to the task force
for improvements. During July and August, this group surveyed
ongoing activities in seven ecosystems. The task force expects to
issue a report on its findings and recommendations by the end of
November and to use this report to identify the next steps to be
taken in forging an ecosystem approach (action item 3). Regional
teams have been established (action item 4), management plans have
been developed, and implementation has begun (action item 5) in two
of the pilot project ecosystems--the old-growth forests of the
Pacific Northwest and south Florida, including the Everglades and
Florida Bay.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 35:2.2.4
Ecosystem Management: Additional Actions Needed to Adequately Test a
Promising Approach (GAO/T-RCED-94-308, Sept. 20, 1994).
Ecosystem Management: Additional Actions Needed to Adequately Test a
Promising Approach (GAO/RCED-94-111, Aug. 16, 1994).
Forest Service Management: Issues to Be Considered in Developing a
New Stewardship Strategy (GAO/T-RCED-94-116, Feb. 1, 1994).
ENV03: INCREASE ENERGY AND
WATER EFFICIENCY
------------------------------------------------------- Chapter 35:2.3
Issue an executive order to address energy efficiency and water
conservation issues at federal facilities. Propose legislation to
allow the Defense Department to retain savings from water efficiency
projects. Develop appropriate mechanisms to allow facilities to
retain rebates received from utility companies.
ACTION ITEMS
----------------------------------------------------- Chapter 35:2.3.1
1. Issue a directive on energy and water efficiency in federal
facilities.
2. Propose legislation to allow the Department of Defense (DOD) to
retain savings generated through water efficiency projects.
3. Develop appropriate rules, procedures, or proposed legislation to
allow rebates from utility companies to remain available beyond the
fiscal year and to be used to fund additional energy efficiency water
conservation projects or to reduce the facility's future utility
bill.
GAO COMMENTS
----------------------------------------------------- Chapter 35:2.3.2
Generally Agree. We generally support efforts to increase the
efficiency with which federal facilities use energy and water. Our
completed work shows that federal agencies should place greater
emphasis on these efforts. We see merit in the National Defense
Authorization Act for Fiscal Year 1994 that provides DOD with
incentives to pursue water efficiency projects--for example, allowing
the Department to retain the savings derived from such projects if
the funds are used for additional conservation projects. We would
also support efforts by all agencies to develop mechanisms that would
enable them to retain rebates from utilities, as required by a March
1994 executive order.
IMPLEMENTATION
----------------------------------------------------- Chapter 35:2.3.3
Partially Implemented. Several actions have been taken to partially
implement this recommendation. Executive Order 12902--Energy
Efficiency and Water Conservation at Federal Facilities--was issued
on March 8, 1994, directing agencies to develop and implement a
program to reduce energy consumption by 30 percent by the year 2005
and to implement cost-effective water conservation projects (action
item 1). Section 502 of this order requires the Director of OMB,
along with the Secretary of Energy, the Secretary of Defense, and the
Administrator of the General Services Admistration, to develop
guidelines and implement procedures that will allow an agency to
retain utility rebates and incentives received by the agency, as well
as savings from energy efficiency and water conservation efforts, as
provided in section 152 of the Energy Policy Act of 1992 and 10
U.S.C. 2865 and 2866. To address the requirements of this order, an
Interagency Energy Management Task Force's Retention of Savings
Working Group, located in the Department of Energy's Federal Energy
Management Program, was established. This working group has
identified barriers to the retention of utility rebates and developed
recommendations to address these barriers (action item 3). In
addition, Public Law 103-160 was approved on November 30, 1993,
allowing DOD to retain the savings generated through water efficiency
projects (action item 2).
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 35:2.3.4
Energy Conservation: Contractors' Efforts at Federally Owned Sites
(GAO/RCED-94-96, Apr. 29, 1994).
Energy Conservation: Federal Agencies' Funding Sources and Reporting
Procedures (GAO/RCED-94-70, Mar. 30, 1994).
Barriers to Installing Energy-Efficient Lighting in Federal Buildings
(GAO/T-GGD-90-54, July 11, 1990).
ENV04: INCREASE
ENVIRONMENTALLY AND
ECONOMICALLY BENEFICIAL
LANDSCAPING
------------------------------------------------------- Chapter 35:2.4
Issue an executive order to require the use of environmentally
beneficial landscaping techniques, including increased use of native
species and reduced use of water and chemicals, at federal facilities
and federally funded projects, where appropriate.
ACTION ITEM
----------------------------------------------------- Chapter 35:2.4.1
Issue a directive to require the use of environmentally beneficial
landscaping at federal facilities and federally funded projects,
where appropriate.
GAO COMMENTS
----------------------------------------------------- Chapter 35:2.4.2
Generally Agree. We support efforts to increase environmentally and
economically beneficial practices at federal facilities. The
increased use of native species and the reduced use of water and
chemicals at federal facilities should help meet this goal.
IMPLEMENTATION
----------------------------------------------------- Chapter 35:2.4.3
Fully Implemented. This recommendation was fully implemented by an
April 26, 1994, presidential memorandum--Environmentally and
Economically Beneficial Practices on Federal Landscaped
Grounds--directing the heads of executive departments and agencies to
implement landscape practices that will benefit the environment and
generate long-term cost savings for the federal government. These
practices include increasing the use of native species and reducing
the use of water and chemicals at federal facilities.
As directed by the presidential memorandum, an interagency working
group has been established, headed by the Federal Environmental
Executive. To date, the group has issued a notice and request for
public comment on recommended guidance for environmentally and
economically beneficial practices on federal landscaped grounds.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 35:2.4.4
None.
IMPROVING REGULATORY SYSTEMS (REG)
=========================================================== Chapter 36
OVERALL SUMMARY
--------------------------------------------------------- Chapter 36:1
Significant progress has been made during the past year to implement
a number of the NPR regulatory recommendations using executive and
agency action. Several of the recommendations were implemented or
facilitated by the issuance of Executive Order 12866, "Regulatory
Planning and Review," and several associated presidential memoranda
on September 30, 1993. Federal regulatory agencies and the Office of
Management and Budget (OMB) responded to the specific requirements of
the executive order and the memoranda by, for example, participating
in an interagency regulatory working group, developing plans to
streamline their rulemaking processes, and focusing on ways to
enhance public awareness and participation.
Gauging implementation of some of the NPR regulatory recommendations
is difficult due to the broad scope of the recommendations and/or the
lack of objective standards or baselines for measurement. For
example, we were not able to determine whether public awareness and
participation in the rulemaking process has been enhanced (REG04)
because no baseline information exists on the pre-NPR level of public
awareness or participation.
It is unclear whether one of the recommendations will be implemented,
and whether some recommendation action items prompted implementation
efforts in certain areas. One recommendation--that agencies formally
establish a technical drafting service for Congress (REG09)--is not
being implemented because agencies believe the current process of
providing informal drafting services is sufficient. Implementation
of some recommendation action items (e.g., the increased used of
electronic information technology in the rulemaking process) may be
the result of the normal process of using new tools when practical,
and would likely have occurred even if there had been no
recommendation.
GAO CONTACT
------------------------------------------------------- Chapter 36:1.1
William M. Hunt, Director, Federal Management Issues, General
Government Division, (202) 512-8676.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 36:2
REG01: CREATE AN
INTERAGENCY REGULATORY
COORDINATING GROUP
------------------------------------------------------- Chapter 36:2.1
Create an interagency Regulatory Coordinating Group (RCG) to share
information and coordinate approaches to regulatory issues.
ACTION ITEM
----------------------------------------------------- Chapter 36:2.1.1
Create an interagency Regulatory Coordinating Group to share
information and coordinate approaches to regulatory issues.
GAO COMMENTS
----------------------------------------------------- Chapter 36:2.1.2
Generally Agree. We generally agree with the creation of an
interagency RCG. While we have done no work on the need for such a
group, the RCG's purpose of sharing information and coordinating
regulatory approaches could help reduce regulatory overlap. Having
representatives from each federal regulatory agency with significant
domestic regulatory responsibility, presidential and
vice-presidential advisors on regulatory policy, and the
Vice-President as members underscores the importance attached to this
group's mission. The RCG's role as a forum for agencies to discuss
common regulatory concerns could encourage coordination among the
agencies within a more ordered and comprehensive environment.
IMPLEMENTATION
----------------------------------------------------- Chapter 36:2.1.3
Fully Implemented. Executive Order 12866 on "Regulatory Planning and
Review," issued September 30, 1993, established the Regulatory
Working Group (RWG). According to the executive order, the RWG is to
serve as a forum to assist agencies in identifying and analyzing
important regulatory issues. The RWG created four subgroups for
specific regulatory issues: (1) regulatory streamlining, (2) risk
assessment, (3) benefit cost analysis, and (4) electronic information
technology and rulemaking.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 36:2.1.4
None.
REG02: ENCOURAGE MORE
INNOVATIVE APPROACHES TO
REGULATION
------------------------------------------------------- Chapter 36:2.2
Use innovative regulatory approaches and develop a Deskbook on
Regulatory Design.
ACTION ITEMS
----------------------------------------------------- Chapter 36:2.2.1
1. Establish use of innovative regulatory approaches as
administration policy.
2. Develop a Deskbook on Regulatory Design.
GAO COMMENTS
----------------------------------------------------- Chapter 36:2.2.2
Generally Agree. We generally agree on the need for more innovation
in regulatory approaches. For example, states have used innovative
measures related to long-term care in an effort to provide services
within the constraints of regulatory burdens. Lessons learned from
states and other countries may help the government change from
process-oriented regulations to performance goals and outcomes, with
more state and local latitude for determining how best to serve
people requiring long-term care. A deskbook on regulatory design
could draw from the experiences of all regulatory agencies at the
federal and state levels and promote best practices.
IMPLEMENTATION
----------------------------------------------------- Chapter 36:2.2.3
Partially Implemented. Executive Order 12866 established the use of
innovative regulatory approaches as administration policy. A
"deskbook on regulatory design" has not been developed, but some
efforts are under way to address this part of the recommendation.
The RWG's subgroup on regulatory streamlining collected agency
guidebooks on regulatory issues. No decision has been made on how
the information collected from these guidebooks will be used to
develop the deskbook.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 36:2.2.4
Workplace Regulation: Information on Selected Employer and Union
Experiences (GAO/HEHS-94-138, Volumes I and II, June 30, 1994).
Long-Term Care Reform: Rethinking Service Delivery, Accountability,
and Cost Control (GAO/HRD-93-1-SP, July 13, 1993).
Thrift Examination Quality: OTS Examinations Do Not Fully Assess
Thrift Safety and Soundness (GAO/AFMD-93-11, Feb. 16, 1993).
Bank Examination Quality: FDIC Examinations Do Not Fully Assess Bank
Safety and Soundness (GAO/AFMD-93-12, Feb. 16, 1993).
Bank Examination Quality: FRB Examinations and Inspections Do Not
Fully Assess Bank Safety and Soundness (GAO/AFMD-93-13, Feb. 16,
1993).
Bank Examination Quality: OCC Examinations Do Not Fully Assess Bank
Safety and Soundness (GAO/AFMD-93-14, Feb. 16, 1993).
Bank and Thrift Regulation: Improvements Needed in Examination
Quality and Regulatory Structure (GAO/AFMD-93-15, Feb. 16, 1993).
Bank Insurance Fund (GAO/HR-93-3, Dec. 1992).
REG03: ENCOURAGE
CONSENSUS-BASED RULEMAKING
------------------------------------------------------- Chapter 36:2.3
Encourage agencies to use negotiated rulemaking more frequently in
developing new rules.
ACTION ITEM
----------------------------------------------------- Chapter 36:2.3.1
Increase the use of negotiated rulemaking.
GAO COMMENTS
----------------------------------------------------- Chapter 36:2.3.2
Generally Agree. We generally agree that a consensus-based approach
to drafting regulations can provide a useful alternative to the
traditional rulemaking process. It appears reasonable to require the
regulatory agencies, that have not used negotiated rulemaking since
the enactment of the Negotiated Rulemaking Act of 1990, to identify
at least one rulemaking to draft using this process, or explain why
using the process isn't feasible. The NPR accompanying report
recognizes that negotiated rulemaking is not appropriate for all
rules, and agencies are advised to consider advantages and
disadvantages before they embark on a negotiated regulatory effort.
IMPLEMENTATION
----------------------------------------------------- Chapter 36:2.3.3
Partially Implemented. Substantive efforts were made to implement
the recommendation, and consensus-based methods were being used in
some agencies to develop regulations. However, we were not able to
determine whether there was a general increase in the use of
negotiated rulemaking.
Section 6(a) of Executive Order 12866 (September 30, 1993) directed
each federal regulatory agency to consider the use of consensual
mechanisms, including negotiated rulemaking, when developing
regulations. The presidential memorandum on "Negotiated Rulemaking"
(September 30, 1993) directed each federal regulatory agency to
identify to OMB's Office of Information and Regulatory Affairs
(OIRA), within 90 days of Executive Order 12866, at least one
rulemaking in which it will use negotiated rulemaking in the upcoming
year, or to explain why it wouldn't be feasible to use this process.
Seventeen federal regulatory agencies responded to this directive,
and 16 identified specific rulemakings that will use, or be
considered for, a negotiated rulemaking. Early in calendar year
1994, the Department of Labor (DOL) combined information technology
and consensus-based methods by using electronic bulletin boards to
support the negotiated rulemaking it identified to OIRA.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 36:2.3.4
None.
REG04: ENHANCE PUBLIC
AWARENESS AND PARTICIPATION
------------------------------------------------------- Chapter 36:2.4
Use information technology and other techniques to increase
opportunities for early, frequent, and interactive public
participation during the rulemaking process and to increase program
evaluation efforts.
ACTION ITEMS
----------------------------------------------------- Chapter 36:2.4.1
1. Increase public participation during the rulemaking process.
2. Enhance public awareness and evaluation of programs.
3. Increase use of information technology.
GAO COMMENTS
----------------------------------------------------- Chapter 36:2.4.2
Generally Agree. We generally agree with the recommendation's
objectives of enhancing public awareness and participation during the
rulemaking process. The recommended actions to increase public
participation in the rulemaking process, enhance public awareness and
evaluation of programs, and increase the use of information
technology in rule development, hold great potential for improving
the quality and equity of regulations. However, these activities may
conflict with the goal of another NPR recommendation to streamline
agencies' rulemaking procedures (REG05). Therefore, efforts to make
the rulemaking process more inclusive and responsive must be
carefully coordinated with actions taken to streamline agencies'
rulemaking procedures.
IMPLEMENTATION
----------------------------------------------------- Chapter 36:2.4.3
Partially Implemented. Several federal regulatory agencies took
actions to increase and enhance public participation in the
rulemaking process and to increase the use of information technology.
However, we are not able to determine if public participation in the
rulemaking process did, in fact, increase or become enhanced by these
actions.
Section 6(a) of Executive Order 12866 (September 30, 1993) directed
each agency to provide the public with meaningful participation in
the regulatory process. According to OMB, OIRA's review of proposed
rules indicates that the federal regulatory agencies are more
sensitive to increasing and enhancing public participation since this
executive order was issued. For example, OMB said the Department of
Education has made an effort to enhance and increase public
participation in its rulemaking. According to OMB, the Department
(1) sent out to 400 affected parties and interest groups the draft of
a significant regulation; (2) published the draft rule in various
electronic bulletin boards; (3) sponsored several public conferences
to give the affected parties and interest groups an opportunity to
discuss the draft rule after allowing for a period of review; (4)
developed its proposed rule for publication in the Federal Register;
and (5) published a version of the proposed rule, showing deleted,
edited and final wording, on the electronic bulletin boards.
According to OIRA, the issue of increased and early consultation with
affected government entities during the development of regulations
was discussed in several meetings with state, local, and tribal
governments.
A RWG subgroup is exploring the use of information technology in the
regulatory process. The mission of the subgroup is to expand access
to the federal regulatory process at all stages using advanced
technology and to enhance public participation in the rulemaking
process. Several agencies, such as the Department of Agriculture's
Animal and Plant Health Inspection Service and the Nuclear Regulatory
Commission, are accepting comments on proposed rules through
electronic bulletin boards. The Department of Labor (DOL) used
electronic bulletin boards to support a negotiated regulatory process
developing rules to protect workers building steel structures.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 36:2.4.4
Workplace Regulation: Information on Selected Employer and Union
Experiences (GAO/HEHS-94-138, Volumes I and II, June 30, 1994).
Thrift Examination Quality: OTS Examinations Do Not Fully Assess
Thrift Safety and Soundness (GAO/AFMD-93-11, Feb. 16, 1993).
Bank Examination Quality: FDIC Examinations Do Not Fully Assess Bank
Safety and Soundness (GAO/AFMD-93-12, Feb. 16, 1993).
Bank Examination Quality: FRB Examinations and Inspections Do Not
Fully Assess Bank Safety and Soundness (GAO/AFMD-93-13, Feb. 16,
1993).
Bank Examination Quality: OCC Examinations Do Not Fully Assess Bank
Safety and Soundness (GAO/AFMD-93-14, Feb. 16, 1993).
Bank and Thrift Regulation: Improvements Needed in Examination
Quality and Regulatory Structure (GAO/AFMD-93-15, Feb. 16, 1993).
Bank Insurance Fund (GAO/HR-93-3, Dec. 1992).
Environmental Protection: Meeting Public Expectations With Limited
Resources (GAO/RCED-91-97, June 18, 1991).
REG05: STREAMLINE AGENCY
RULEMAKING PROCEDURES
------------------------------------------------------- Chapter 36:2.5
Streamline internal agency rulemaking procedures, use "direct final"
rulemaking for noncontroversial rules, and expedite treatment of
rulemaking petitions.
ACTION ITEMS
----------------------------------------------------- Chapter 36:2.5.1
1. Streamline internal agency rulemaking procedures.
2. Use direct final rulemaking to reduce needless double review of
noncontroversial rules.
3. Develop specifications for rulemaking petitions.
4. Evaluate and draft proposed legislative changes to speed the
rulemaking process.
GAO COMMENTS
----------------------------------------------------- Chapter 36:2.5.2
Generally Agree. We generally agree that streamlining agencies'
internal rulemaking processes is a useful and beneficial goal. The
timeliness of rule changes can be improved and unnecessary and
duplicative reviews can be reduced if agencies identify significant
and insignificant rules and then use a review track that is
appropriate for each type. However, these streamlining activities
may conflict with the goal of another NPR recommendation to enhance
public awareness and increase public participation in the rulemaking
process (REG04). Another concern is whether the decision process to
determine what are significant and insignificant rules will be
reasonable and applied consistently in all situations, within and
among agencies.
IMPLEMENTATION
----------------------------------------------------- Chapter 36:2.5.3
Partially Implemented. Some federal regulatory agencies, such as
DOL, the Department of Transportation (DOT), and the Environmental
Protection Agency (EPA), have streamlined their rulemaking process,
and some agencies are using direct final rulemaking. According to
the President's "Memorandum on Agency Rulemaking" (September 30,
1993), one of the main objectives of Executive Order 12866 (September
30, 1993) is to streamline the rulemaking process to reduce delay in
developing and promulgating rules. The memorandum required federal
regulatory agencies to examine their internal review procedures in
their rulemaking process to determine areas for streamlining. The
agencies were required to report the results of their examination to
the President and the Vice President by March 31, 1994 and 14
agencies responded to the requirement. As a result of their
examination, DOL developed a new rulemaking process and implemented
it in January 1994. DOT also used the examination to identify areas
in its rulemaking process to streamline, and described streamlining
changes made to rulemaking classifications and delegations of
authority in their report. EPA officially instituted a new
rulemaking process in June 1994 designed to streamline the agency's
regulatory development process, as called for in its report.
According to an official in the RWG, EPA regularly uses direct final
rulemaking in its regulatory process. DOT noted in its regulatory
streamlining report that it used direct final rulemaking in some
limited instances and planned to expand its use. We could not find
evidence of activity addressing the third and fourth action items of
this recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 36:2.5.4
None.
REG06: ENCOURAGE
ALTERNATIVE DISPUTE
RESOLUTION WHEN ENFORCING
REGULATIONS
------------------------------------------------------- Chapter 36:2.6
Increase the use of alternative means of dispute resolution.
ACTION ITEM
----------------------------------------------------- Chapter 36:2.6.1
Increase use of alternative means of dispute resolution.
GAO COMMENTS
----------------------------------------------------- Chapter 36:2.6.2
Generally Agree. We generally agree that an increase in the use of
alternative means of dispute resolution (ADR) might reduce
litigation, improve negotiated resolutions, and facilitate
implementation of regulations. We have not, however, examined ADR
use in all the federal regulatory agencies. Presidential support for
the ADR process alone probably does not assure an increase in its
usage, but if federal regulatory agencies determine that this process
could save them time and funds, they will be inclined to use it more
frequently.
IMPLEMENTATION
----------------------------------------------------- Chapter 36:2.6.3
Partially Implemented. On May 16, 1994, 24 federal agencies signed a
pledge to use ADR techniques rather than litigation to resolve or
avoid contract disputes. Six of the 24 agencies signed specific
pledges to use ADR in a total of 60 contracts, valued at a total of
$1.4 billion. OMB's Office of Federal Procurement Policy (OFPP) was
the coordinating agency for the pledge effort. Subsequently, the
Internal Revenue Service joined this ADR pledge effort with a
contract valued at $1.3 billion. The Administrative Conference of
the United States plans to form a project team with OFPP to assist
agencies in using ADR. The Office of Personnel Management (OPM) also
took steps to encourage ADR usage. It sponsored a conference on ADR,
issued an ADR Resource Guide, and developed two ADR training courses.
While ADR was used in some federal agencies prior to NPR, some new
efforts are under way. For example, after a pilot test use of ADR in
DOL's Philadelphia Region had positive results, DOL is planning to
expand ADR usage throughout the agency.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 36:2.6.4
EEOC's Expanding Workload: Increases in Age Discrimination and Other
Charges Call for New Approaches (GAO/HEHS-94-32, Feb. 9, 1994).
REG07: RANK RISKS AND
ENGAGE IN "ANTICIPATORY"
REGULATORY PLANNING
------------------------------------------------------- Chapter 36:2.7
Rank the seriousness of environmental, health, or safety risks and
develop anticipatory approaches to regulatory problems.
ACTION ITEMS
----------------------------------------------------- Chapter 36:2.7.1
1. Rank the seriousness of environmental, health, or safety risks.
2. Develop long-range future plans and anticipatory approaches to
regulatory problems.
GAO COMMENTS
----------------------------------------------------- Chapter 36:2.7.2
Generally Agree. We generally agree that regulatory agencies should
assess the extent of risks facing the public in determining their
regulatory agendas and anticipate future problems. For example, we
recommended that the EPA Administrator work with Congress to identify
opportunities to shift resources from problems of less severe risk to
problems with greater risks. We also recommended that Congress
consider incorporating the concept of relative risks to human health
and environment in authorizing and appropriating funds for EPA.
However, we are aware that the Office of Technology Assessment and
the National Academy of Science's National Research Council issued
reports in 1993 that discuss problems they have identified in the
current risk assessment process.
IMPLEMENTATION
----------------------------------------------------- Chapter 36:2.7.3
Partially Implemented. EPA published risk rankings for environmental
problems in its 1987 report Unfinished Business: A Comparative
Assessment of Environmental Problems and its Science Advisory Board
reviewed them in 1990. DOT's Research and Special Programs
Administration implemented a Risk Assessment Prioritization (RAP)
process to rank Office of Pipeline Safety (OPS) actions according to
their potential to reduce the risk of pipeline failures. OPS is
categorizing and prioritizing the risks identified by the RAP process
to develop a risk ranking. While these actions substantially address
part of this recommendation, they do not cover all the federal
regulatory agencies that have regulations incorporating
environmental, health, or safety risks.
Executive Order 12881 (November 23, 1993) established the National
Science and Technology Council (NSTC). The NSTC Subcommittee on Risk
Assessment reviews ongoing federal risk assessment research to
develop options for its enhancement.
The RWG is charged with exploring the methods, efficacy, and utility
of comparative risk assessment. The RWG created a subgroup on risk
assessment to examine issues and develop policy with respect to the
use of risk analysis in the federal regulatory decisionmaking
process. EPA has a Futures Studies Unit whose mission is to develop,
support, and promote an anticipatory, systemic approach to
environmental policymaking.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 36:2.7.4
Superfund: Improved Reviews and Guidance Could Reduce
Inconsistencies in Risk Assessments (GAO/RCED-94-220, Aug. 10,
1994).
Environmental Protection: Meeting Public Expectations With Limited
Resources (GAO/RCED-91-97, June 18, 1991).
REG08: IMPROVE REGULATORY
SCIENCE
------------------------------------------------------- Chapter 36:2.8
Create science advisory boards for those regulatory agencies that
depend heavily on scientific information and judgments.
ACTION ITEM
----------------------------------------------------- Chapter 36:2.8.1
Create science advisory boards.
GAO COMMENTS
----------------------------------------------------- Chapter 36:2.8.2
Generally Agree. We generally agree that regulatory decisionmaking
can be improved by ensuring that correct and current scientific
information is available to the federal regulatory agencies. Science
advisory boards could be the appropriate mechanism to provide the
necessary scientific expertise, but other means may be available to
achieve this goal.
IMPLEMENTATION
----------------------------------------------------- Chapter 36:2.8.3
Not Implemented--Action Taken. Executive Order 12881 (November 23,
1993) established the National Science and Technology Council.
Section 4 of the order states that one of the functions of the
council is to "ensure science and technology are considered in
development and implementation of Federal policies and programs." The
President has not required the heads of regulatory agencies to create
science advisory boards for their respective agencies. NPR noted
that EPA and the Food and Drug Administration have functioning
science boards that were established prior to the NPR report, but
said other agencies should consider establishing such boards. We
have no information that the other federal regulatory agencies have
created in-house science advisory boards.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 36:2.8.4
None.
REG09: IMPROVE AGENCY AND
CONGRESSIONAL RELATIONSHIPS
------------------------------------------------------- Chapter 36:2.9
Encourage agencies to establish technical drafting services for
congressional committees and subcommittees.
ACTION ITEM
----------------------------------------------------- Chapter 36:2.9.1
Establish technical drafting services for congressional committees
and subcommittees.
GAO COMMENTS
----------------------------------------------------- Chapter 36:2.9.2
Generally Agree. Although we have not examined the extent to which
Congress needs technical drafting services from agencies, we believe
that such services may be useful to Congress in certain circumstances
and that agencies should provide such services to Congress upon
request. It is not clear, however, that a formal system of technical
drafting services would work better than the current informal system
providing such services.
IMPLEMENTATION
----------------------------------------------------- Chapter 36:2.9.3
Not Implemented--No Action Taken. We did not find evidence of
federal regulatory agency action to formally establish technical
drafting services for congressional committees and subcommittees.
However, OMB said that agencies already provide technical drafting
services, on an informal basis, to congressional committees and
subcommittees. An official at EPA stated that the agency frequently
provides technical drafting services to Congress and has done so for
many years. According to this official, these drafting activities
are informally done and are not centrally planned within the agency
as suggested by the recommendation. DOT stated that DOT officials,
including DOT's General Counsel and Assistant Secretary for
Intergovernmental Affairs, recently discussed becoming more
responsive to Congress' need for technical drafting services and
encouraging better internal coordination within the department when
providing these services. There was no plan to install a formalized
system or process to implement these objectives. The Department of
Defense (DOD) provides technical drafting services on an informal
basis to Congress when requested by a committee or subcommittee. DOD
is not planning to formalize this arrangement.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 36:2.9.4
None.
REG10: PROVIDE BETTER
TRAINING AND INCENTIVES FOR
REGULATORS
------------------------------------------------------ Chapter 36:2.10
Establish a basic training program for presidential appointees
assigned to regulatory agencies and expand existing training programs
to cover career staff not currently being trained.
ACTION ITEMS
---------------------------------------------------- Chapter 36:2.10.1
1. Establish a basic training program for presidential appointees to
regulatory agencies.
2. Move training programs for agency regulatory lawyers back to
Washington, D.C., and expand to cover other career staff.
3. Establish an "honors" rotation program for select mid-level
career staffers.
4. Reward innovative regulators.
GAO COMMENTS
---------------------------------------------------- Chapter 36:2.10.2
Insufficient Information. We agree that training is an important
component of the performance of the federal workforce, including
presidential appointees assigned to regulatory agencies. However, we
cannot comment on this recommendation until we have more information
on the extent of this problem for federal regulatory agencies.
IMPLEMENTATION
---------------------------------------------------- Chapter 36:2.10.3
Not Implemented--Action Taken. No evidence exists that any of the
specific action items were implemented, but there was some activity
by OMB and the RWG that could facilitate implementation. The
President has not directed political appointees to attend a
comprehensive training program on regulatory development, or that a
training program be established which would provide this training.
However, the RWG asked the Administrative Conference of the United
States (ACUS) to propose a design for such a training program and
ACUS agreed to develop this proposal. We understand that no
legislation was proposed to move the Legal Education Institute back
to Washington, D.C. from Columbia, South Carolina. This year, the
Administrator of OMB's OIRA instituted a program to rotate staff
between OIRA and other federal agencies. An OMB official told us
that while this is not officially an honors rotation program, the
candidates selected for the OIRA program are accomplished,
high-quality employees. We found no evidence that heads of federal
regulatory agencies developed policies that recognize and reward
achievements in innovative, consensus-based, and effective
regulation.
RELATED GAO PRODUCTS
---------------------------------------------------- Chapter 36:2.10.4
None.
GENERAL SERVICES ADMINISTRATION
(GSA)
=========================================================== Chapter 37
OVERALL SUMMARY
--------------------------------------------------------- Chapter 37:1
Actions have been taken or are under way on all six NPR action items
under the one GSA recommendation. However, these actions have not
been completed and the recommendation has not been implemented.
Also, several of NPR's recommendations in the Reinventing Support
Services section, which have been either partially implemented or
acted upon but not implemented, relate directly to this GSA section;
especially SUP03, SUP04, SUP08, SUP09, and SUP10. In addition, NPR's
recommendations in the Reinventing Federal Procurement, Transforming
Organizational Structures, Mission-Driven Results- Oriented
Budgeting, and Improving Financial Management sections also relate to
this GSA section.
GSA has committed itself to and developed plans for ending its
longstanding support services monopolies, separating its policymaking
and oversight responsibilities from service delivery, revising its
organizational structure and improving how it interfaces with
customer agencies, and using private sector practices as benchmarks
to reengineer the way it does business. Also, GSA's "Time Out and
Review" of nearly 200 approved major building construction,
modernization, or leasing projects identified potential cost savings
opportunities of at least $1.2 billion.
GAO CONTACT
------------------------------------------------------- Chapter 37:1.1
J. William Gadsby, Director, Government Business Operations Issues,
General Government Division, (202) 512-8387.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 37:2
GSA01: SEPARATE
POLICYMAKING FROM SERVICE
DELIVERY AND MAKE THE
GENERAL SERVICES
ADMINISTRATION (GSA) A FULLY
COMPETITIVE, REVENUE-BASED
ORGANIZATION
------------------------------------------------------- Chapter 37:2.1
Fund GSA service delivery from customer revenues, transfer activities
not related to GSA's central mission to other agencies, and allow
agencies to choose whether to purchase GSA services.
ACTION ITEMS
----------------------------------------------------- Chapter 37:2.1.1
1. Separate policymaking and oversight from service delivery and
fund policymaking from direct appropriations.
2. Allow agencies to choose whether to purchase GSA services, and
fund GSA service delivery from customer revenues.
3. Transfer activities not related to GSA's central mission to other
agencies.
4. Suspend acquisition of net new office space and courthouses.
5. Reduce procurement spending.
6. Improve GSA service delivery.
GAO COMMENTS
----------------------------------------------------- Chapter 37:2.1.2
Agree. GAO supports these recommended reforms. To compete with
private industry for federal agencies' business, however, GSA must be
able to respond quickly and effectively to customer needs and market
conditions. In this regard, Congress and the administration need to
reexamine and resolve constraints and barriers, such as funding
limitations and the real estate prospectus authorization processes,
that would adversely affect GSA's ability to compete.
IMPLEMENTATION
----------------------------------------------------- Chapter 37:2.1.3
Not Implemented--Action Taken. Actions have been taken and
implementation is under way on all six NPR action items under this
recommendation, but these actions have not been completed and the
recommendation has not been implemented. GSA has developed plans to
separate governmentwide policymaking and oversight of public
buildings and federal supply activities from service delivery. GSA
also plans to fund policy activities from direct appropriations; this
proposal was included in the Treasury, Postal Service, and General
Government Appropriations Act of 1995 (P.L. 103-329). In addition,
GSA (1) has proposed eliminating mandatory service requirements in
the public buildings, information technology, and federal supply
areas so that agencies can choose where to acquire these services;
(2) is trying to transfer the Indian Trust Fund, a function not
related to its central mission, to the Interior or Justice
Departments; (3) is streamlining its organizational structure and
eliminating unneeded overhead positions; and (4) is studying ways to
decrease procurement spending and improve its relations with customer
agencies and service delivery. For example, GSA has established 14
reinvention laboratories aimed at reengineering organizational
processes, eliminating unnecessary rules and regulations, and
empowering employees to improve the services it provides to customer
agencies. According to GSA officials, the administration drafted
legislation to eliminate GSA's transportation audit function, another
activity not related to its central mission, in August 1994, but the
legislation was never introduced in Congress.
As early as July 1993, GSA committed itself to a "Time Out and
Review" study of approved major building construction, modernization,
and leasing projects to determine if the federal housing option
selected was the most appropriate, cost-effective alternative
available. GSA took about 6 months to review nearly 200 projects.
GSA reported in March 1994 that it had identified potential savings
opportunities of about $1.2 billion, including $230 million in new
federal courthouse projects. GSA expects to realize some of these
identified savings by eliminating or cutting back on some projects,
using value engineering to reduce costs, and reducing the size of
some leases. GSA is still working to reengineer existing design,
construction, and leasing projects and to renegotiate existing
leases. Also, GSA has developed a baseline of office space inventory
levels and plans to soon issue new space guidelines and policies to
federal agencies.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 37:2.1.4
Budget Issues: Budget Scorekeeping for Acquisition of Federal
Buildings (GAO/T-AIMD-94-189, Sept. 20, 1994).
Public Buildings: Budget Scorekeeping Prompts Difficult Decisions
(GAO/T-GGD/AIMD-94-43, Oct. 28, 1993).
Federal Real Property: National Performance Review Recommendations
(GAO/GGD-93-47, Sept. 21, 1993).
Federal Real Property: Key Acquisition and Management Obstacles
(GAO/T-GGD-93-42, July 27, 1993).
Federal Buildings Fund Limitations (GAO/GGD-93-34R, Apr. 5, 1993).
General Services Administration: Increased Direct Delivery of
Supplies Could Save Millions (GAO/GGD-93-32, Dec. 28, 1992).
General Services Issues (GAO/OCG-93-28TR, Dec. 1992).
Government Management Issues (GAO/OGC-93-3TR, Dec. 1992).
General Services Administration: Actions Needed to Improve
Protection Against Fraud, Waste, and Mismanagement (GAO/GGD-92-98,
Sept. 30, 1992).
FTS 2000 Overhead: GSA Should Reassess Contract Requirements and
Improve Efficiency (GAO/IMTEC-92-59, Aug. 3, 1992).
Federal Office Space: Obstacles to Purchasing Commercial Properties
From RTC, FDIC, and Others (GAO/GGD-92-60, Mar. 31, 1992).
Real Property Management Issues Facing GSA and Congress
(GAO/T-GGD-92-4, Oct. 30, 1991).
GSA: A Central Management Agency Needing Comprehensive Congressional
Oversight (GAO/T-GGD-92-3, Oct. 29, 1991).
ADP Procurements: GSA Needs to Improve Its Review Process to Enhance
Its ADP Oversight (GAO/IMTEC-92-7, Oct. 28, 1991).
Federal Buildings: Actions Needed to Prevent Further Deterioration
and Obsolescence (GAO/GGD-91-57, May 13, 1991).
General Services Administration: Status of Management Improvement
Efforts (GAO/GGD-91-59, Apr. 3, 1991).
Facilities Location Policy: GSA Should Propose a More Consistent and
Businesslike Approach (GAO/GGD-90-109, Sept. 28, 1990).
General Services Administration: Delegated Buildings Adequately
Operated But Better GSA Oversight Needed (GAO/GGD-90-76, May 15,
1990).
Federal Office Space: Increased Ownership Would Result in
Significant Savings (GAO/GGD-90-11, Dec. 22, 1989).
General Services Administration: Sustained Attention Required to
Improve Performance (GAO/GGD-90-14, Nov. 6, 1989).
OFFICE OF PERSONNEL MANAGEMENT
(OPM)
=========================================================== Chapter 38
OVERALL SUMMARY
--------------------------------------------------------- Chapter 38:1
OPM has completed a number of actions and has others under way to
implement the NPR recommendations calling for OPM to change its role
and functions in order to become a more effective leader of federal
human resource management. Consistent with the recommendations, OPM
announced that it has changed its role from that of a watchdog over
other agencies to that of a consultant, with a strong focus on
customer service. It is developing a plan for redesigning and
restructuring the agency. Through a program of separation
incentives, early retirements, and involuntary separations, OPM has
already reduced its employment level by nearly 20 percent. It has
delegated some operational work to the agencies, but believes
delegation of many of its functions can be accomplished only through
the legislative process.
OPM has developed a "good government framework" under which agencies
themselves will be responsible for ensuring that their human resource
management practices and monitoring systems are consistent with merit
principles. While OPM says it plans to monitor agencies' internal
accountability practices, the manner in which this will be done and
how effective it will be are unknown.
GAO CONTACT
------------------------------------------------------- Chapter 38:1.1
Nancy R. Kingsbury, Director, Federal Human Resource Management
Issues, General Government Division, (202) 512-5074.
RECOMMENDATION INFORMATION
--------------------------------------------------------- Chapter 38:2
OPM01: STRENGTHEN THE
OFFICE OF PERSONNEL
MANAGEMENT'S (OPM)
LEADERSHIP ROLE IN
TRANSFORMING FEDERAL HUMAN
RESOURCE MANAGEMENT SYSTEMS
------------------------------------------------------- Chapter 38:2.1
Clearly define OPM's policy, service, and leadership role in
addressing human resource problems and delegate operational work to
the agencies.
ACTION ITEMS
----------------------------------------------------- Chapter 38:2.1.1
1. Clearly define and publicize OPM's policy, service, and
leadership role in addressing critical human resource problems and
transforming human resource administrative systems.
2. Delegate operational work to the agencies.
3. Supplement agency accountability for policy and program
implementation with a reinvented program of oversight and assessment.
GAO COMMENTS
----------------------------------------------------- Chapter 38:2.1.2
Generally Agree. Our reports show the need for greater OPM
leadership on federal human resource issues. While we agree that
operational matters should be delegated to the agencies when
appropriate, we have found that many agencies' personnel management
evaluation programs are not sufficient to ensure that their personnel
programs operate effectively and in compliance with merit system
principles. OPM needs to exert greater leadership in strengthening
agency evaluation programs if they are to be relied upon to oversee
agency accountability for program management.
IMPLEMENTATION
----------------------------------------------------- Chapter 38:2.1.3
Not Implemented--Action Taken. OPM issued a "Mission, Vision, and
Values" statement in January 1994 outlining its new direction for
federal human resource management. OPM characterized the statement
as establishing OPM as the leading choice on all human resource
management systems in the federal government. OPM said its role has
changed from that of a watchdog over other agencies to that of a
consultant, with a strong focus on customer service. While
addressing the first action item, we do not believe this statement
defines OPM's complete role in federal human resource management.
In December 1993, OPM delegated to agencies the responsibility for
deciding who is entitled to coverage under the special retirement
provisions for law enforcement officers and firefighters under the
Civil Service Retirement System. In May 1994, OPM discontinued its
central registers for entry-level professional and administrative
positions; agencies, with OPM assistance, now rate and rank
candidates for their own vacancies in those positions. OPM could
cite no other operational work it has delegated to the agencies since
the NPR report was issued. It believes delegation of many of OPM's
functions can be accomplished only through the legislative process.
However, no such legislation has been introduced.
In June 1994, OPM introduced a new "Good Government Framework For
Merit System Accountability" that it said is intended to help
agencies ensure that their human resource management accountability
and monitoring systems are consistent with merit system principles.
According to OPM, the framework provides agencies the flexibility to
use any means they see fit to ensure effective accountability,
including internal controls, systems assessments, and inspector
general reviews. OPM is continuing to consult with agencies on the
oversight issue, and is focusing on developing new measures of
accountability. OPM said it will monitor agency success in using the
framework to improve internal accountability.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 38:2.1.4
Federal Personnel Management: OPM Reliance on Agency Oversight of
Personnel System Not Fully Justified (GAO/GGD-93-24, Dec. 8, 1992).
Office of Personnel Management: Better Performance Information
Needed (GAO/GGD-90-44, Feb. 7, 1990).
Managing Human Resources: Greater OPM Leadership Needed to Address
Critical Challenges (GAO/GGD-89-19, Jan. 19, 1989).
Retrenchment and Redirection at the Office of Personnel Management
(GAO/GGD-83-95, Aug. 22, 1983).
OPM02: REDEFINE AND
RESTRUCTURE OPM'S FUNCTIONAL
RESPONSIBILITIES TO FOSTER A
CUSTOMER ORIENTATION
------------------------------------------------------- Chapter 38:2.2
Restructure and rightsize OPM to enhance and reflect its commitment
to addressing its customers' needs.
ACTION ITEMS
----------------------------------------------------- Chapter 38:2.2.1
1. Restructure OPM to reflect its commitment to meeting its
customers' needs.
2. Downsize OPM to reflect its changed roles and functions.
GAO COMMENTS
----------------------------------------------------- Chapter 38:2.2.2
Insufficient Information. Neither the NPR report nor the
accompanying report gave a clear indication of the kind of
restructuring and rightsizing this recommendation envisions. Thus,
we cannot evaluate the recommendation. However, on the basis of a
long history of GAO work, we agree that this issue needs attention;
OPM needs to work with the agencies in preparing the government to
meet future challenges, attack performance improvement issues with
more vigor, and ensure more effective oversight of the government's
key personnel areas.
IMPLEMENTATION
----------------------------------------------------- Chapter 38:2.2.3
Not Implemented--Action Taken. OPM formed an Employee Task Force on
Agency Redesign to develop a plan for redesigning and restructuring
the agency. The task force reported its recommendations to the OPM
Director on September 1, 1994, but as of September 7, 1994, he had
not acted on them. OPM plans to reflect its new structure in its
fiscal year 1996 budget submission. Until the OPM restructuring is
in place, no judgment can be made on whether OPM has met this
recommendation or will be better able to serve its customers' needs.
OPM also gave itself early-out retirement authority and authorized
buyouts for employees GS-13 and above who resigned or retired between
March 25, 1994, and March 31, 1994. OPM reduced the number of
investigators and training personnel it employed by separating 656
employees through reduction-in-force procedures in fiscal year 1994.
Overall, since March 1994, OPM's staff has been reduced from 6,943 to
5,663. However, the majority of these reductions were not made in
response to this recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 38:2.2.4
OPM Revolving Fund: OPM Sets New Tuition Pricing Policy
(GAO/GGD-94-120, Apr. 6, 1994).
OPM Revolving Fund: Benchmarking Could Aid OPM's Efforts to Improve
Customer Service (GAO/GGD-92-18, Jan. 21, 1992).
Office of Personnel Management: Better Performance Information
Needed (GAO/GGD-90-44, Feb. 7, 1990).
Managing Human Resources: Greater OPM Leadership Needed to Address
Critical Challenges (GAO/GGD-89-19, Jan. 19, 1989).
Retrenchment and Redirection at the Office of Personnel Management
(GAO/GGD-83-95, Aug. 22, 1983).
OPM03: CHANGE THE CULTURE
OF OPM TO EMPOWER ITS STAFF
AND INCREASE ITS CUSTOMER
ORIENTATION
------------------------------------------------------- Chapter 38:2.3
Use interagency groups to involve OPM's external stakeholders in
changing federal human resource systems. Improve OPM's policy-making
process through experimental use of negotiated rulemaking ("reg-neg")
and broaden the customer focus of OPM and agency personnel
specialists.
ACTION ITEMS
----------------------------------------------------- Chapter 38:2.3.1
1. Use OPM's internal culture change effort as a model for the rest
of government.
2. Use a variety of interagency groups to involve OPM's external
stakeholders in changing federal human resource systems.
3. Improve OPM's policymaking process through experimental use of
negotiated rulemaking.
4. Develop programs to help OPM and agency personnel specialists
broaden their customer focus.
GAO COMMENTS
----------------------------------------------------- Chapter 38:2.3.2
Insufficient Information. We believe it is reasonable to expect OPM
to involve all stakeholders in determining how to better serve its
customers. However, since we have done no work to identify how this
could best be accomplished, we cannot comment further on this
recommendation.
IMPLEMENTATION
----------------------------------------------------- Chapter 38:2.3.3
Not Implemented--Action Taken. OPM began labor-management
partnership training for its staff in the fall of 1993, and has
signed partnership agreements with its two union locals. The
Director initiated sessions with employees and union representatives
to afford them the opportunity to provide input on the agency's
operations. OPM said it developed a 2-day training course entitled
"Partners in Change" which will be used to share partnership
experiences and offer assistance to agencies in setting up
partnership programs. OPM, unions, and an interagency group worked
to sunset the Federal Personnel Manual. In addition, OPM says a
major marketing effort is under way to inform potential customers
that OPM is the "One Stop Shop for Human Resources Management."
According to OPM, the need to find other positions for employees
displaced in OPM's downsizing efforts has limited its ability to
broaden personnel specialists' customer focus through rotational
assignments. OPM plans to use negotiated rulemaking to amend its
training regulations to reflect the changes required by the Federal
Workforce Restructuring Act of 1994.
Thus, although some action has taken place, it has not been enough to
complete implementation of this recommendation.
RELATED GAO PRODUCTS
----------------------------------------------------- Chapter 38:2.3.4
OPM Revolving Fund: Benchmarking Could Aid OPM's Efforts to Improve
Customer Service (GAO/GGD-92-18, Jan. 21, 1992).
Office of Personnel Management: Better Performance Information
Needed (GAO/GGD-90-44, Feb. 7, 1990).
Managing Human Resources: Greater OPM Leadership Needed to Address
Critical Challenges (GAO/GGD-89-19, Jan. 19, 1989).
Retrenchment and Redirection at the Office of Personnel Management
(GAO/GGD-83-95, Aug. 22, 1983).
NPR ACCOMPANYING REPORTS RELEASED
AS OF SEPTEMBER 7, 1994\1
=========================================================== Appendix I
Strengthening the Partnership in Intergovernmental Service Delivery
(FSL)
Department of Interior (DOI)
National Aeronautics and Space Administration (NASA)
National Science Foundation/ Office of Science and Technology Policy
(NSF)
Improving Regulatory Systems (REG)
Rethinking Program Design (DES)
Improving Customer Service (ICS)
Improving Financial Management (FM)
Reinventing Environmental Management (ENV)
Reengineering Through Information Technology (IT)
Federal Emergency Management Agency (FEMA)
Office of Personnel Management (OPM)
Reinventing Human Resource Management (HRM)
Creating Quality Leadership and Management (QUAL)
Streamlining Management Control (SMC)
Transforming Organizational Structures (ORG)
General Services Administration (GSA)
Environmental Protection Agency (EPA)
Department of Agriculture (USDA)
Agency for International Development (AID)
Department of State and U.S. Information Agency (DOS)
Department of Housing and Urban Development (HUD)
Department of Veterans Affairs (DVA)
Department of Education (ED)
Small Business Administration (SBA)
Intelligence Community (INTEL)
Reinventing Support Services (SUP)
Department of Energy (DOE)
Department of Labor (DOL)
--------------------
\1 We used these accompanying reports and their associated action
items to assess the NPR recommendations because they were issued by
September 7, 1994. We also used the "Reinventing Federal
Procurement" report even though it was not formally released until
released November 1994. Two other reports--"Department of Commerce"
and "Mission-Driven, Results-Oriented Budgeting"--were issued after
September 7 but were not used to assess the recommendations.
Which term defines downsizing the federal bureaucracy by delegating the implementation of programs to state and local governments quizlet?Which term defines downsizing the federal bureaucracy by delegating the implementation of programs to state and local governments? Devolution.
Which of the following refers to the practice of reducing the size of the federal bureaucracy by transferring the administrative responsibility to state or local governments?The next most effect way to reduce the federal bureaucracy is devolution—downsizing the federal bureaucracy by delegating the implementation of programs to state and local governments.
How can the government reduce bureaucracy?Here are some ideas to get to the action and cut out the bureaucracy:. Know what you want to get done. ... . Know your priorities. ... . Eliminate paperwork whenever possible. ... . Cut out processes. ... . Empower people. ... . Don't put off decisions. ... . Have the information you need ready. ... . Keep “Action” at your forefront.. What are the 4 types of bureaucracy?Yet, not all bureaucracies are alike. In the U.S. government, there are four general types: cabinet departments, independent executive agencies, regulatory agencies, and government corporations.
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Which term refers to downsizing the federal bureaucracy by delegating the implementation of programs to state and local governments?
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