July 11, 2001

Memorandum for the Heads of Executive Departments and Agencies

SUBJECT: Implementing Government Reform

Throughout the campaign and in my Budget, I have called for \"active,
but

limited\" Government: one that empowers States, cities, and citizens to
make decisions; ensures results through accountability; and promotes
innovation through competition. Thus, if reform is to help the Federal
Government adapt to a rapidly changing world, its primary objectives
must be a Government that is:

Citizen-centered \-- not bureaucracy centered;

Results-oriented \-- not process-oriented; and

Market-based \-- actively promoting, not stifling, innovation and
competition.

In order to establish and implement Government reform throughout the
executive branch, I hereby direct the following:

1\. Establish Chief Operating Officers.

Each agency head shall designate a Chief Operating Officer, who shall be
the senior official with agency-wide authority on behalf of the
Secretary or agency head. The Chief Operating Officer, the equivalent of
the Deputy Secretary, shall report directly to the agency head and shall
be responsible for:

\(a\) implementing the President\'s and agency head\'s goals and the
agency\'s mission;

\(b\) providing overall organization management to improve agency
performance;

\(c\) assisting the agency head in promoting Government reform,
developing strategic plans, and measuring results; and

\(d\) overseeing agency-specific efforts to integrate performance and
budgeting, expand competitive sourcing, strengthen their workforce,
improve financial management, advance e-government, apply information
policy and technology policies, and other Government-wide management
reforms.

2\. Implement Additional Agency Reforms. Each agency head shall identify
and implement additional changes within the agency that will promote the
principles of government reform.

3\. Establishment of President\'s Management Council. In order to advise
and assist the President in ensuring that Government reform is
implemented throughout the executive branch, I hereby establish the
President\'s Management Council (\"Council\"). The Council shall
comprise:

\(a\) The Deputy Director, Office of Management and Budget;

\(b\) The Chief Operating Officers from the following agencies:

> \(1\) Department of State;
>
> \(2\) Department of the Treasury;
>
> \(3\) Department of Defense;
>
> \(4\) Department of Justice;
>
> \(5\) Department of the Interior;
>
> \(6\) Department of Agriculture;
>
> \(7\) Department of Commerce;
>
> \(8\) Department of Labor;
>
> \(9\) Department of Health and Human Services;
>
> \(10\) Department of Housing and Urban Development;
>
> \(11\) Department of Transportation;
>
> \(12\) Department of Energy;
>
> \(13\) Department of Education; and
>
> \(14\) Department of Veterans Affairs.

\(c\) The following central management agency representatives:

\(1\) Director of the Office of Personnel Management;

\(2\) Administrator of General Services;

\(d\) Chief Operating Officers of the following agencies:

\(1\) Environmental Protection Agency;

\(2\) National Aeronautics and Space Administration;

\(3\) National Science Foundation;

\(4\) Social Security Administration; and

\(5\) Federal Emergency Management Agency.

\(e\) Chief Operating Officers of three other executive branch agencies
designated by the Chairperson, in his or her discretion;

\(f\) Assistant to the President and Cabinet Secretary;

\(g\) Deputy Assistant to the President for Management and
Administration; and

\(h\) Deputy Chief of Staff to the Vice President; and

\(i\) Such other officials of the executive departments and agencies as
the Director of the Office of Management and Budget or I may, from time
to time, designate. The Deputy Director of the Office of Management and
Budget shall serve as Chairperson of the Council. The Chairperson of the
Council may appoint a Vice-Chairperson from the

Council\'s membership to assist the Chairperson in conducting affairs of
the Council.

The functions of the Council shall include, among others:

\(a\) improving overall executive branch management, including
implementation of the President\'s Management Agenda;

\(b\) coordinating management-related efforts to improve Government
throughout the executive branch and, as necessary, resolving specific
interagency management issues;

\(c\) ensuring the adoption of new management practices in agencies
throughout the executive branch; and

\(d\) identifying examples of, and providing mechanisms for, interagency
exchange of information about best management practices. The Council
shall seek advice and information as appropriate from nonmember Federal
agencies, particularly smaller

agencies. The Council shall also consider the management reform
experience of corporations, nonprofit organizations, State and local
govern-ments, Government employees, public sector unions, and customers
of Government services. Agencies shall cooperate with the Council and
provide such assistance, information, and advice to the Council as the
Council may request, to the extent permitted by law. 4.

Independent Agencies. Independent agencies are requested to comply

with this memorandum.

5\. Revocation and Judicial Review.

\(a\) the memorandum of October 1, 1993, entitled \"Implementing
Management Reform in the Executive Branch\" is revoked.

\(b\) this memorandum is for the internal management of the executive
branch and does not create any right or benefit, substantive or
procedural, enforceable by a party against the United States, its
agencies or instrumentalities, its officers or employees, or any

other person. 6. Publication. The Director of the Office of Management
and Budget is authorized and directed to publish this memorandum in the
Federal Register.

GEORGE W. BUSH