THE WHITE HOUSE
Office of the Vice President
For Immediate Release September 7, 1993
National Performance Review
Summary of Savings
The NPR recommendations yield $108 billion in savings for
the 5 year period, FY1995-1999. $36.4 billion result from the
specific changes in individual agencies that were detailed in
Appendix A. The remaining $71 billion result from governmentwide
changes explained here.
This appendix provides the estimates of the governmentwide
changes, and the assumptions underlying those estimates. Savings
by major issue area are shown in Table B-1.
These estimates assume:
personnel over 5 years.
b. Administrative and central control staffs and supervisors
will be the primary areas for downsizing.
c. Attrition, enhanced severance, reassignment, relocation,
outplacement and retraining will be the primary tools to
accomplish the reduction.
d. Agencies will use other tools as necessary to accomplish the
e. The 12% reduction includes and increases the
Administration's previously established 4% personnel
reduction goal for fiscal 1995.
f. Indirect costs associated with personnel, such as office
space and expenses, travel and supplies, are not included in
the dollar estimates.
2. Reinventing Federal Procurement
These estimates assume:
annual procurement costs equal $200 billion (GSA Federal
b. Savings can be generated by a variety of reforms in
procurement systems, including simplified acquisition
thresholds, labor law reforms, IT procurement reforms,
shifting from government specifications to commercial items,
expanded use of purchase cards, and electronic commerce.
c. Savings up to 12% of procurement spending may be achieved
through these reforms (study by Defense Systems Management
College). The NPR used 5% as a mid-range estimate.
d. To avoid double-counting, savings associated with reductions
in procurement personnel are excluded from this "reinventing
procurement" savings estimate.
3. Reeingeering Through Information Technology
These estimates assume:
spending, based on obligations reported through OMB circular
A-11 by executive branch agencies for acquisition,
operation, and use of IT systems.
b. 30% savings in IT systems may be achieved through
information infrastructure consolidation and standardization
Information Infrastructure Initiative" (December 1992,
Resource Summary). Since Defense IT spending constitutes
roughly one-half of total IT spending it is assumed that
equal savings can be obtained from the IT budgets of
c. Savings from electronic benefits transfer and from
consolidation and modernization of the federal information
infrastructure; offsetting costs result from consolidation
and modernization of the law enforcement and safety mobile
networks and a program to provide citizens with better
access to government information.
d. Savings for electronic benefits transfer nationally may be
extrapolated from pilot programs in the states of New Mexico
e. Savings recommended for the Department of Transportation IT
consolidation and modernization are subtracted to avoid
4. Intragovernmental Administrative Costs.
Simplifying and reducing the federal government's reporting
requirements will generate savings at the federal, state, and
local levels. The estimate assumes that over 75% of the state and
local governments will accept a fee-for-service option in place
of existing cost reimbursement procedures from FY1995-1999 in
return for greater administrative flexibility. Eliminating cost
reimbursement procedures slows cost growth by 3% per year at the
Table B-1. Estimates of Savings from NPR systems Teams
(dollars in billions)
FY95 FY96 FY97 FY98 FY99 Total
Reengineering 5.0 5.8 7.4 9.5 12.7 40.4
2. Reinventing Federal
Procurement 0.0 5.6 5.6 5.6 5.7 22.5
3. Reengineering Through
Technology 0.1 0.5 1.2 1.6 2.0 5.4
4. Reducing Inter-
Costs 0.5 0.7 0.7 0.7 0.7 3.3
5. Changes to Individual
(see Appendix A) 7.0* 6.2 7.0 7.3 8.9 36.4
Total NPR Savings 12.6 18.8 21.9 24.7 30.0 108.0
*Includes $0.5 billion in FY1994
The assumptions used to develop these savings estimates follow.
National Performance Review
Major Recommendations Affecting Governmental Systems
CREATING QUALITY LEADERSHIP AND MANAGEMENT
QUAL01: PROVIDE IMPROVED LEADERSHIP AND MANAGEMENT OF THE
EXECUTIVE BRANCH 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, comprised of the chief operating officers, to
oversee the implementation of NPR's recommendations.
QUAL02: IMPROVE GOVERNMENT PERFORMANCE THROUGH STRATEGIC AND
QUALITY MANAGEMENT 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.
QUAL03: STRENGTHEN THE CORPS OF SENIOR LEADERS 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.
QUAL04: IMPROVE LEGISLATIVE-EXECUTIVE BRANCH RELATIONSHIP 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.
STREAMLINING MANAGEMENT CONTROL
SMC01: IMPLEMENT A SYSTEMS DESIGN APPROACH TO MANAGEMENT CONTROL
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.
SMC02: STREAMLINE THE INTERNAL CONTROLS PROGRAM TO MAKE IT AN
EFFICIENT AND EFFECTIVE MANAGEMENT TOOL Rescind the current set
of Internal Control Guidelines and replace them with a broader
handbook on management controls.
SMC03: CHANGE THE FOCUS OF THE INSPECTORS GENERAL Change the
focus of Inspectors General from compliance auditing to
evaluating management control systems. In addition, recast the
IGs method of operation to be more collaborative and less
SMC04: INCREASE THE EFFECTIVENESS OF OFFICES OF GENERAL COUNSEL
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.
SMC05: IMPROVE THE EFFECTIVENESS OF THE GENERAL ACCOUNTING OFFICE
THROUGH INCREASED CUSTOMER FEEDBACK Improve GAO's
documentation of best practices and the use of feedback loops on
SMC06: REDUCE THE BURDEN OF CONGRESSIONALLY MANDATED REPORTS
Eliminate at least 50 percent of all congressionally mandated
reports. Review new reporting requirements for management impact,
and include a sunset provision.
SMC07: REDUCE INTERNAL REGULATIONS BY MORE THAN 50 PERCENT 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.
SMC08: EXPAND THE USE OF WAIVERS TO ENCOURAGE INNOVATION
Establish a process for obtaining waivers from federal
regulations and identifying those regulations for which this
process should apply.
TRANSFORMING ORGANIZATIONAL STRUCTURES
ORG01: REDUCE THE COSTS AND NUMBERS OF POSITIONS ASSOCIATED WITH
MANAGEMENT CONTROL STRUCTURES BY HALF 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.
ORG02: USE MULTI-YEAR PEFORMANCE AGREEMENTS BETWEEN THE PRESIDENT
AND AGENCY HEADS TO GUIDE DOWNSIZING STRATEGIES Performance
agreements with agency heads (see 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.
ORG03: ESTABLISH A LIST OF SPECIFIC FIELD OFFICES TO BE CLOSED
Within 18 months, the President's Management Council should
submit a list to Congress of civilian field offices that should
ORG04: THE PRESIDENT SHOULD REQUEST AUTHORITY TO REORGANIZE
AGENCIES Congress should restore to the President the authority
to restructure the executive branch.
ORG05: SPONSOR THREE OR MORE CROSS-DEPARTMENTAL INITIATIVES
ADDRESSING COMMON ISSUES OR CUSTOMERS 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.
ORG06: IDENTIFY AND CHANGE LEGISLATIVE BARRIERS TO
CROSS-ORGANIZATIONAL COOPERATION As cross-organizational
collaborations become an integral part of government operations,
barriers to ready collaboration and funding should be removed.
IMPROVING CUSTOMER SERVICES
ICS01: CREATE CUSTOMER-DRIVEN PROGRAMS IN ALL DEPARTMENTS AND
AGENCIES THAT PROVIDE SERVICES DIRECTLY TO THE PUBLIC 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.
ICS02: CUSTOMER SERVICE PERFORMANCE STANDARDS--INTERNAL REVENUE
SERVICE As part of its participation in the 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.
ICS03: CUSTOMER SERVICE PERFORMANCE STANDARDS--SOCIAL SECURITY
ADMINISTRATION As part of its participation in the 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.
ICS04: CUSTOMER SERVICE PERFORMANCE STANDARDS--POSTAL SERVICE As
part of its participation in the NPR, the U.S. Postal Service
will expand its plans to display customer service standards in
Post Office retail lobbies.
ICS05: STREAMLINE WAYS TO COLLECT CUSTOMER SATISFACTION AND OTHER
INFORMATION FROM THE PUBLIC For voluntary information collection
requests directed at customers, OMB will delegate authority to
approve such requests if departments certifiy that they will
fully comply with Paperwork Reduction Act requirements. OMB will
also clarify rules on the use of focus groups and streamline
renewals of previously approved survey requests.
MISSION-DRIVEN, RESULTS-ORIENTED BUDGETING
BGT01: DEVELOP PERFORMANCE AGREEMENTS WITH SENIOR POLITICAL
LEADERSHIP THAT REFLECT ORGANIZATIONAL AND POLICY GOALS 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
BGT02: EFFECTIVELY IMPLEMENT THE GOVERNMENT PERFORMANCE AND
RESULTS ACT OF 1993 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 cross-cutting issues. Clarify the
goals and objectives of federal programs. Incorporate performance
objectives and results as key elements in budget and management
BGT03: EMPOWER MANAGERS TO PERFORM 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.
BGT04: ELIMINATE EMPLOYMENT CEILINGS AND FLOORS BY MANAGING
WITHIN BUDGET Budget and manage on the basis of operating costs
rather than full-time equivalents or employment ceilings. Request
Congress to remove FTE floors.
BGT05: PROVIDE LINE MANAGERS WITH GREATER FLEXIBILITY TO ACHIEVE
RESULTS 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
BGT06: STREAMLINE BUDGET DEVELOPMENT 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.
BGT07: INSTITUTE BIENNIAL BUDGETS AND APPROPRIATIONS 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.
BGT08: SEEK ENACTMENT OF EXPEDITED RESCISSION PROCEDURES Pursue
negotiations with the leadership of the House and Senate to gain
enactment of expedited rescission authority.
IMPROVING FINANCIAL MANAGEMENT
FM01: ACCELERATE THE ISSUANCE OF FEDERAL ACCOUNTING STANDARDS
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.
FM02: CLARIFY AND STRENGTHEN THE FINANCIAL MANAGEMENT ROLES OF
OMB AND TREASURY Develop a Memorandum of Understanding 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
Financial Management Service budget to the OMB Deputy Director
FM03: FULLY INTEGRATE BUDGET, FINANCIAL AND PROGRAM INFORMATION
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.
FM04: INCREASE THE USE OF TECHNOLOGY TO STREAMLINE FINANCIAL
SERVICES 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.
FM05: USE THE CHIEF FINANCIAL OFFICERS (CFO) ACT TO IMPROVE
FINANCIAL SERVICES 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.
FM06: "FRANCHISE" INTERNAL SERVICES 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.
FM07: CREATE INNOVATION FUNDS Allow agencies to create innovation
capital funds from retained savings to invest in innovations that
can improve service and provide a return on investment.
FM08: REDUCE FINANCIAL REGULATIONS AND REQUIREMENTS 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.
FM09: SIMPLIFY THE FINANCIAL REPORTING PROCESS 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.
FM10: PROVIDE AN ANNUAL FINANCIAL REPORT TO THE PUBLIC 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
FM11: STRENGTHEN DEBT COLLECTION PROGRAMS 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.
FM12: MANAGE FIXED ASSET INVESTMENTS FOR THE LONG TERM 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. FM13 CHARGE
AGENCIES FOR THE FULL COST OF EMPLOYEE BENEFITS 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.
REINVENTING HUMAN RESOURCE MANAGEMENT
HRM01: CREATE A FLEXIBLE AND RESPONSIVE HIRING SYSTEM 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.
HRM02: REFORM THE GENERAL SCHEDULE CLASSIFICATION AND BASIC PAY
SYSTEM Remove all grade-level classification criteria from the
law. Provide agencies with flexibility to establish broadbanding
systems built upon the General Schedule framework.
HRM03: AUTHORIZE AGENCIES TO DEVELOP PROGRAMS FOR IMPROVEMENT OF
INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE Authorize agencies to
design their own performance management programs which define and
measure success based on each agency's unique needs.
HRM04: AUTHORIZE AGENCIES TO DEVELOP INCENTIVE AWARD AND BONUS
SYSTEMS TO IMPROVE INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE
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.
HRM05: STRENGTHEN SYSTEMS TO SUPPORT MANAGEMENT IN DEALING WITH
POOR PERFORMERS 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.
HRM06: CLEARLY DEFINE THE OBJECTIVE OF TRAINING AS THE
IMPROVEMENT OF INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE; MAKE
TRAINING MORE MARKET-DRIVEN Reduce restrictions on training to
allow managers to focus on organizational mission and to take
advantage of the available training marketplace.
HRM07: ENHANCE PROGRAMS TO PROVIDE FAMILY-FRIENDLY WORKPLACES
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 re-enter federal service to be given
credit for prior sick leave balances.
HRM08: IMPROVE PROCESSES AND PROCEDURES ESTABLISHED TO PROVIDE
WORKPLACE DUE PROCESS FOR EMPLOYEES Eliminate jurisdictional
overlaps. All agencies should establish alternative dispute
resolution methods and options for the informal disposition of
HRM09: IMPROVE ACCOUNTABILITY FOR EQUAL OPPORTUNITY GOALS AND
ACCOMPLISHMENTS 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.
HRM10: IMPROVE INTERAGENCY COLLABORATION AND CROSS TRAINING FOR
HUMAN RESOURCE PROFESSIONALS Establish an Interagency Equal
Employment Opportunity and Affirmative Employment Steering Group
under the joint chair of the Equal Employment Opportunity
Commission and the Office of Personnel Management. Require
appropriate cross training for human resource management
HRM11: STRENGTHEN THE SENIOR EXECUTIVE SERVICE SO THAT IT BECOMES
A KEY ELEMENT IN THE GOVERNMENTWIDE CULTURE CHANGE EFFORT Create
and reinforce a corporate perspective within the Senior Executive
Service 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.
HRM12: ELIMINATE EXCESSIVE RED TAPE AND AUTOMATE FUNCTIONS AND
INFORMATION 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.
HRM13: FORM LABOR-MANAGEMENT PARTNERSHIPS FOR SUCCESS Identify
labor-management partnerships as a goal of the executive branch
and establish the National Partnership Council.
HRM14: PROVIDE INCENTIVES TO ENCOURAGE VOLUNTARY SEPARATIONS
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
REINVENTING FEDERAL PROCUREMENT
PROC01: REFRAME ACQUISITION POLICY Convert the 1,600 pages of the
Federal Acquisition Regulation from a set of rigid rules to a set
of guiding principles.
PROC02: BUILD AN INNOVATIVE PROCUREMENT WORKFORCE 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
PROC03: ENCOURAGE MORE PROCUREMENT INNOVATION Provide new
legislative authority to test innovative procurement methods.
Establish a mechanism to disseminate information governmentwide
on innovative procurement ideas.
PROC04: ESTABLISH NEW SIMPLIFIED ACQUISITION THRESHOLD AND
PROCEDURES 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
PROC05: REFORM LABOR LAWS AND TRANSFORM THE LABOR DEPARTMENT INTO
AN EFFICIENT PARTNER FOR MEETING PUBLIC POLICY GOALS 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
PROC06: AMEND PROTEST RULES Change the standard of review at the
General Services Board of Contracts Appeals 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.
PROC07: ENHANCE PROGRAMS FOR SMALL BUSINESS AND SMALL
DISADVANTAGED BUSINESS CONCERNS Repeal statutory limitations on
subcontracting and substitute regulatory limitations to provide
greater flexibility. Authorize civilian agencies to establish
small disadvantaged business set-asides.
PROC08: REFORM INFORMATION TECHNOLOGY PROCUREMENTS 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
indepth requirements for analyses of alternatives. Pilot-test
alternative ways of buying commercially available information
PROC09: LOWER COSTS AND REDUCE BUREAUCRACY IN SMALL PURCHASES
THROUGH THE USE OF PURCHASE CARDS 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.
PROC10: ENSURE CUSTOMER FOCUS IN PROCUREMENT Revise Procurement
Management Reviews to incorporate NPR principles such as
"focusing on results" for the line managers.
PROC11: IMPROVE PROCUREMENT ETHICS LAWS Create consistency across
the government in the application of procurement ethics laws.
PROC12: ALLOW FOR EXPANDED CHOICE AND COOPERATION IN THE USE OF
SUPPLY SCHEDULES 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.
PROC13: FOSTER RELIANCE ON THE COMMERCIAL MARKETPLACE 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
PROC14: EXPAND ELECTRONIC COMMERCE FOR FEDERAL ACQUISITION
Establish a governmentwide program to use electronic commerce for
PROC15: ENCOURAGE BEST VALUE PROCUREMENT 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
PROC16: PROMOTE EXCELLENCE IN VENDOR PERFORMANCE 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.
PROC17: AUTHORIZE A TWO-PHASE COMPETITIVE SOURCE SELECTION
PROCESS 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.
PROC18: AUTHORIZE MULTIYEAR CONTRACTS Authorize multiyear
contracts and allow contracts for severable services to cross
PROC19: CONFORM CERTAIN STATUTORY REQUIREMENTS FOR CIVILIAN
AGENCIES TO THOSE OF DEFENSE AGENCIES 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
PROC20: STREAMLINE BUYING FOR THE ENVIRONMENT 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.
REINVENTING SUPPORT SERVICES
SUP01: AUTHORIZE THE EXECUTIVE BRANCH TO ESTABLISH A PRINTING
POLICY THAT WILL ELIMINATE THE CURRENT PRINTING MONOPOLY 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.
SUP02: ASSURE PUBLIC ACCESS TO FEDERAL INFORMATION 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.
SUP03: IMPROVE DISTRIBUTION SYSTEMS TO REDUCE COSTLY INVENTORIES
Permit customer choice in sources of supply. Compare depot
distribution costs with commercial distribution systems. Take
away the Federal Prison Industries' 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.
SUP04: STREAMLINE AND IMPROVE CONTRACTING STRATEGIES FOR THE
MULTIPLE AWARD SCHEDULE PROGRAM 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.
SUP05: EXPAND AGENCY AUTHORITY AND ELIMINATE
CONGRESSIONAL CONTROL OVER FEDERAL VEHICLE FLEET MANAGEMENT
Update vehicle replacement standards. Increase emergency repair
limits to $150. Eliminate the monopoly on disposing of
SUP06: GIVE AGENCIES AUTHORITY AND INCENTIVE FOR PERSONAL
PROPERTY MANAGEMENT AND DISPOSAL Provide incentives to agencies
to dispose of excess personal property. Automate the process and
eliminate the monopoly on personal property disposal.
SUP07: SIMPLIFY TRAVEL AND INCREASE COMPETITION Increase choices
for federal travelers and automate the travel process. Pilot-test
a tender system for airfares.
SUP08: GIVE CUSTOMERS CHOICES AND CREATE REAL PROPERTY
ENTERPRISES THAT PROMOTE SOUND REAL PROPERTY ASSET MANAGEMENT
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.
SUP09: SIMPLIFY PROCEDURES FOR ACQUIRING SMALL BLOCKS OF SPACE TO
HOUSE FEDERAL AGENCIES Simplify the procedures for acquiring
small amounts of leased space under 10,000 square feet.
SUP10: ESTABLISH NEW CONTRACTING PROCEDURES FOR THE CONTINUED
OCCUPANCY OF LEASED OFFICE SPACE Simplify the procedures for
SUP11: REDUCE POSTAGE COSTS THROUGH IMPROVED MAIL MANAGEMENT
Encourage postage savings through the implementation of mail
management initiatives. Allow line managers to manage their own
REENGINEER THROUGH THE USE OF INFORMATION TECHNOLOGY
IT01: PROVIDE CLEAR, STRONG LEADERSHIP TO INTEGRATE INFORMATION
TECHNOLOGY INTO THE BUSINESS OF GOVERNMENT Create a Government
Information Technology Services working group to develop a
strategic vision for the use of government information technology
and to implement NPR's information technology recommendations.
IT02: IMPLEMENT NATIONWIDE, INTEGRATED ELECTRONIC BENEFIT
TRANSFER 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.
IT03: DEVELOP INTEGRATED ELECTRONIC ACCESS TO GOVERNMENT
INFORMATION AND SERVICE 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.
IT04: ESTABLISH A NATIONAL LAW ENFORCEMENT/PUBLIC SAFETY NETWORK
Establish a national law enforcement/public safety data network
for use by federal, state, and local law enforcement officials.
IT05: PROVIDE INTERGOVERNMENTAL TAX FILING, REPORTING, AND
PAYMENTS PROCESSING Integrate government financial filings,
reporting, and payments processing, and determine ways to
eliminate the need for filing routine tax returns.
IT06: ESTABLISH AN INTERNATIONAL TRADE DATA SYSTEM Develop and
implement a U.S. Government International Trade Data System in
the Treasury Department.
IT07: CREATE A NATIONAL ENVIRONMENTAL DATA INDEX Organize the
implementation of a national environmental data index in the
IT08: PLAN, DEMONSTRATE, AND PROVIDE GOVERNMENTWIDE ELECTRONIC
MAIL Improve electronic mail and messaging among federal
IT09: ESTABLISH AN INFORMATION INFRASTRUCTURE Develop a
Government Information Infrastructure to use government
information resources effectively and support electronic
government applications. Consolidate and modernize government
data processing centers.
IT10: DEVELOP SYSTEMS AND MECHANISMS TO ENSURE PRIVACY AND
SECURITY 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 January
IT11: IMPROVE METHODS OF INFORMATION TECHNOLOGY ACQUISITION (see
PROC 09, PROC10, PROC15, SUP04, and FM06)
IT12: PROVIDE INCENTIVES FOR INNOVATION 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
IT13: PROVIDE TRAINING AND TECHNICAL ASSISTANCE IN INFORMATION
TECHNOLOGY TO FEDERAL EMPLOYEES Establish a program to train
non-technical 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.
RETHINKING PROGRAM DESIGN
DES01: ACTIVATE PROGRAM DESIGN AS A FORMAL DISCIPLINE 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.
DES02: ESTABLISH PILOT PROGRAM DESIGN CAPABILITIES IN ONE OR TWO
AGENCIES Test the usefulness of the program design handbook and
the value of program design as a useful discipline.
DES03: ENCOURAGE THE STRENGTHENING OF PROGRAM DESIGN IN THE
LEGISLATIVE BRANCH The President's Management Council should work
with congressional support agencies to help them strengthen their
program design capacities.
DES04: COMMISSION PROGRAM DESIGN COURSES Develop training courses
for managers and policymakers on various program design
STRENGTHENING THE PARTNERSHIP IN INTERGOVERNMENTAL SERVICE
FSL01: IMPROVE THE DELIVERY OF FEDERAL DOMESTIC GRANT PROGRAMS
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.
FSL02: REDUCE RED TAPE THROUGH REGULATORY AND MANDATE RELIEF
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.
FSL03: SIMPLIFY REIMBURSEMENT PROCEDURES FOR ADMINISTRATIVE COSTS
OF FEDERAL GRANT DISBURSEMENT 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.
FSL04: ELIMINATE NEEDLESS PAPERWORK BY SIMPLIFYING THE COMPLIANCE
CERTIFICATION PROCESS 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.
FSL05: SIMPLIFY ADMINISTRATION BY MODIFYING THE COMMON GRANT
RULES ON SMALL PURCHASES 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 (see also PROC04).
FSL06: STRENGTHEN THE INTERGOVERNMENTAL PARTNERSHIP Reinvent the
Advisory Commission on Intergovernmental Affairs (ACIR) and
charge it with the responsibility for continuous improvement in
federal, state and local partnership and intergovernmental
service delivery. Direct the AICR to identify opportunities to
improve intergovernmental service delivery and develop a set of
REINVENTING ENVIRONMENTAL MANAGEMENT
ENV01: IMPROVE FEDERAL DECISIONMAKING THROUGH ENVIRONMENTAL COST
ACCOUNTING 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
ENV02: DEVELOP CROSS-AGENCY ECOSYSTEM PLANNING AND MANAGEMENT
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 a part of the fiscal year
1995 budget process.
ENV03: INCREASE ENERGY AND WATER EFFICIENCY 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.
ENV04: INCREASE ENVIRONMENTALLY AND ECONOMICALLY BENEFICIAL
LANDSCAPING 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,
IMPROVING REGULATORY SYSTEMS
REG01: CREATE AN INTERAGENCY REGULATORY COORDINATING GROUP Create
an interagency Regulatory Coordinating Group to share information
and coordinate approaches to regulatory issues.
REG02: ENCOURAGE MORE INNOVATIVE APPROACHES TO REGULATION Use
innovative regulatory approaches and develop a Deskbook on
REG03: ENCOURAGE CONSENSUS-BASED RULEMAKING Encourage agencies to
use negotiated rulemaking more frequently in developing new
REG04: ENHANCE PUBLIC AWARENESS AND PARTICIPATION 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.
REG05: STREAMLINE AGENCY RULEMAKING PROCEDURES Streamline
internal agency rulemaking procedures, use "direct final"
rulemaking for noncontroversial rules and expedite treatment of
REG06: ENCOURAGE ALTERNATIVE DISPUTE RESOLUTION WHEN ENFORCING
REGULATIONS Increase the use of alternative means of dispute
REG07: RANK RISKS AND ENGAGE IN "ANTICIPATORY" REGULATORY
PLANNING Rank the seriousness of environmental, health or safety
risks and develop anticipatory approaches to regulatory problems.
REG08: IMPROVE REGULATORY SCIENCE Create science advisory boards
for those regulatory agencies that depend heavily on scientific
information and judgments.
REG09: IMPROVE AGENCY AND CONGRESSIONAL RELATIONSHIPS Encourage
agencies to establish technical drafting services for
congressional committees and subcommittees.
REG10: PROVIDE BETTER TRAINING AND INCENTIVES FOR REGULATORS
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.
GENERAL SERVICES ADMINISTRATION
GSA01: SEPARATE POLICYMAKING FROM SERVICE DELIVERY AND MAKE THE
GENERAL SERVICES ADMINISTRATION (GSA) A FULLY COMPETITIVE,
REVENUE-BASED ORGANIZATION 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.
OFFICE OF PERSONNEL MANAGEMENT
OPM01: STRENGTHEN THE OFFICE OF PERSONNEL MANAGEMENT'S (OPM)
LEADERSHIP ROLE IN TRANSFORMING FEDERAL HUMAN RESOURCE MANAGEMENT
SYSTEMS Clearly define OPM's policy, service and leadership role
in addressing human resource problems and delegate operational
work to the agencies.
OPM02: REDEFINE AND RESTRUCTURE OPM'S FUNCTIONAL RESPONSIBILITIES
TO FOSTER A CUSTOMER ORIENTATION Restructure and rightsize OPM to
enhance and reflect its commitment to addressing its customers'
OPM03: CHANGE THE CULTURE OF OPM TO EMPOWER ITS STAFF AND
INCREASE ITS CUSTOMER ORIENTATION 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.