## **PRESIDENT'S MANAGEMENT AGENDA** 

## 

## **ACTION PLANS FOR THE**

## 

## **NATIONAL AERONAUTICS AND SPACE ADMINISTRATION**

##### May 9, 2002

## 

## 

## 

## 

## 

## 

## **Initials of NASA Initials of OMB**

## **Representative: \_\_\_\_\_\_\_\_\_ Representative: \_\_\_\_\_\_\_\_\_**

## 

## 

## **TABLE OF CONTENTS**

# 

# 

[HUMAN CAPITAL 3](#human-capital)

[COMPETITIVE SOURCING 12](#competitive-sourcing)

[FINANCIAL MANAGEMENT 14](#financial-management)

[EXPANDING ELECTRONIC GOVERNMENT 16](#expanding-electronic-government)

[BUDGET/PERFORMANCE INTEGRATION 19](#budgetperformance-integration)

[PMA SCORECARD 21](#pma-scorecard)

#   {#section-12 .unnumbered}

# HUMAN CAPITAL

## **CURRENT STATUS**

OMB reports NASA\'s status as \"red\" for human capital. NASA is in the
process of developing an agency-wide human capital plan, has proposed
new authorities to improve management of its human capital, and has
committed to improving its workforce tracking. However, NASA has yet to
approve an agency-wide human capital plan, fully utilize its existing
human capital management authorities, or implement an improved workforce
tracking system. Also, NASA needs to complete and submit to OMB a
Transformation Workforce Restructuring Plan based on the Strategic
Resources Review. This will be critical, in conjunction with the
Strategic Human Capital Plan, to ensuring that no skill
gaps/deficiencies exist in mission critical occupations.

### NASA PLANS TO ACHIEVE YELLOW STATUS

**[Develop and Approve Agency Strategic Human Capital
Plan]{.underline}**

NASA will develop and approve an agency-level human capital plan and
associated implementation plans. NASA will submit its first full,
Strategic Human Capital Plan to OPM and OMB no later than June 30, 2002.
At a minimum, this plan will address three key areas.

**1) Strategic Management of Critical Workforce Needs**

> NASA's critical workforce competencies are not permanent or static,
> but are a portfolio of skills that changes over time as NASA's needs
> change, with new competencies coming in and competencies no longer
> needed transitioning out. To greatly improve the agility and
> flexibility of NASA\'s workforce, NASA\'s human capital plan will:

-   Define the critical workforce competencies NASA needs to execute its
    approved programs over the next ten years -- including permanent and
    non-permanent civil servants, and contracted workforce in industry
    and academia.

-   Develop an agency-wide capability to track, project, and analyze
    critical workforce competencies that enables strategic management

-   Identify imbalances in current and projected workforce of today,
    relative to what is needed for the future (oversupply/undersupply of
    key skills)

-   Identify those workforce competencies that can or could be supplied
    through academia, industry or other organizations and those
    competencies that can only be met through a civil servant workforce.

-   Identify the limited number of truly critical civil servant
    personnel needed for those competencies that NASA must retain
    in-house as well as those needed to oversee competencies supplied
    through academia, industry or other organizations.

-   Identify and plan out the reforms needed to enable the competitive
    sourcing of those competencies that can or could be supplied through
    academia, industry or other organizations, including a schedule for
    each reform and an estimated range of the number of civil servant
    positions that could be affected each year (to be outlined in the
    NASA Competitive Sourcing Plan).

-   Develop a lifecycle model for NASA's workforce competencies to aid
    in their strategic management that includes three distinct
    phases: 1) identifying the need for then establishing new
    competencies; 2) assessing and maintaining the health of mature
    competencies; and 3) determining whether NASA no longer needs to
    provide a competency (either with in-house personnel or at all), and
    the process for transitioning NASA away from that competency.

**2) Creating and Expanding Organizational Agility**

NASA must improve its agility as an organization, to adapt to the
changing needs of the future. This can be done with more institutional
flexibility, more flexibility in the ability to shape the workforce, and
more flexibility within the workforce itself at the individual employee
level.

> [Management Authorities and Flexibility]{.underline} \-- To improve
> the recruitment, retention, competency and flexibility of NASA\'s
> civil servant workforce, NASA\'s human capital plan will:

-   Identify new authorities necessary to implement the reforms
    contained in NASA\'s Competitive Sourcing Plan. These authorities
    could include (but proposals are not limited to): benefits
    portability, extended buyout authority, retraining expenses for
    involuntarily separated employees, and waiver of reduction of
    annuity when reemploying civil servants (a menu of options will be
    attached to the Strategic Human Capital Plan).

-   Identify new authorities that could improve the recruitment,
    retention, competency and flexibility of NASA\'s civil servant
    workforce. These authorities could include: excepted service and
    distinguished scholar hiring authorities, scholarship for service,
    expanded use of term appointments and IPAs, simplified candidate
    evaluation, pay broad-banding, critical pay authority, and industry
    and academic exchange programs (a menu of options will be attached
    to the Strategic Human Capital Plan).

> [Civil Service Mix -- Permanent and Non-Permanent]{.underline} \-- To
> improve agility of the workforce, NASA's plan will:

-   Develop a strategy -- tied to information from NASA capabilities in
    strategic management of human capital -- that will enable the
    identification of the appropriate mix, over time, between permanent
    and non-permanent civil servants.

-   Ensure that mechanisms and incentives are available for achieving
    the appropriate mix of non-permanent civil servants and IPAs (e.g.
    terms, temps, NEX, IPAs, etc.).

> [Employee Agility]{.underline} \-- To improve agility of the
> individual employee, NASA's human capital plan will:

-   Include a plan that ensures that the norm is for employees to
    broaden their experience and skill base, as part of career
    advancement at NASA.

-   Incorporate training and education activities to help make employees
    more agile.

## **3) Assuring Future Leadership, Management and Technical Expertise**

> [Recruitment and Retention]{.underline}

-   Define strategies for improving ability to recruit and retain

> [Training and Education]{.underline}

-   Define training and education priorities that assure NASA's future
    needs can be met

> [Mentoring and Succession Planning]{.underline} \-- To improve and
> ensure successful management of NASA\'s programs, NASA\'s plan will:

-   Provide methods for identifying NASA civil servant program/project
    leaders and experts that are most critical to NASA executing its
    approved programs.

-   Establish mentoring and knowledge sharing approaches and programs --
    driven by strategic needs \-- that enable current leaders to
    transfer their expertise to future project leaders.

-   Identify and use lessons learned from successes and failures to
    mentor and transfer critical knowledge and skills to future project
    leaders who need this development and knowledge.

> **Begin Implementation of Human Capital Plan:** To begin
> implementation of its Plan, NASA will complete the following actions.
>
> **1) Strategic Management of Critical Workforce Needs**

-   Provide a progress report and quarterly accomplishments relative to
    OPM's Human Capital scorecard by June 30, 2002

-   Complete Competency pilot at KSC by June 30, 2002

-   Develop an Agencywide competency dictionary by July 30, 2002

-   NASA has developed a phased approach to establishing and Agencywide
    workforce planning capability. The first phase will involve updating
    and integrating the existing SRR workforce competency database by
    September 30, 2002.

-   Identify critical competencies across the agency, those at risk, and
    potential skill mix adjustments between Centers by November 30,
    2002.

-   As a first step to assuring that employee rewards, recognition, and
    performance are linked to Agency key goals, the Agency will assess
    the current state of linkage using the OPM survey (December 2002).

> **2) Creating and Expanding Organizational Agility**

-   NASA will develop HR tools and strategies that support major Agency
    transformation implementation plans---including competitive sourcing
    goals\--and, as necessary, will offer legislative proposals to
    facilitate reforms (ongoing).

-   By December 31, 2002 complete a study to evaluate the need for
    expanded mobility and rotational assignments to expand knowledge and
    experience of the workforce.

-   By October 1, 2002 provide Enterprises/Centers mechanisms and
    incentives for hiring non-permanent employees.

-   To support increasing the utilization of HR flexibilities to
    recruit, hire and retain a highly productive workforce, NASA
    Headquarters will delegate NEX authority to Centers (June 2002) and
    will identify critical positions where incentives are required
    (September 2002).

-   NASA will roll out an automated classification system within the
    Integrated Financial Management Program (IFMP) (September 2002).

-   The Agency will establish a NASA Education program linkage system
    that tracks students in NASA Education programs in order to link
    students in these programs to NASA hiring efforts for future
    workforce needs (September 2002).

## **Assuring Future Leadership, Management and Technical Expertise**

-   By October 2002 develop a project leadership knowledge sharing and
    mentoring plan including strategic areas of priority, identification
    of critical leaders and experts who can share knowledge and mentor
    future project leaders, and begin pilot activities.

-   By June 3, 2002 identify positions requiring critical position pay
    authority.

-   Implement an enhanced agency-wide strategy to recruit and retain in
    critical competencies.

-   Establish by November 30, 2002, key strategic skill area targets to
    shape recruitment of college hires for the summer of 2003 (feeding
    pipeline through middle of decade).

## **NASA PLANS TO ACHIEVE GREEN STATUS**

The OMB Core Criteria for Achieving Success are to achieve all of the
following:

-   Agency human capital strategy is aligned with mission, goals, and
    organizational objectives: 1) integrated into Budget and Strategic
    Plans; 2) consistent with OPM's human capital balanced scorecard
    (issued by December 1, 2001); and 3) complies with standards for
    internal accountability systems to ensure effective merit-based HRM.

-   Agency has a citizen-centered organizational structure that is
    delayered and oriented toward performing the mission assigned to it.

-   Agency 1) sustains high-performing workforce that is continually
    improving in productivity; 2) strategically uses existing personnel
    flexibilities, tools, and technology; and 3) implements effective
    succession plans.

-   No skill gaps/deficiencies exist in mission critical occupations.

-   Agency differentiates between high and low performers through
    appropriate incentive and rewards.

-   Changes in agency workforce skill mix and organizational structure
    reflect increased emphasis on e-government and competitive sourcing.

## **[Fully Implement Human Capital Plan]{.underline}**

## To ensure full implementation of its Human Capital Plan and meet all criteria for achieving green status, NASA will undertake the following actions:

> **1) Strategic Management of Critical Workforce Needs**

-   Complete rollout of KSC competency model Agencywide and resolve gaps
    and surplus competencies in mission critical occupations by
    September 30, 2003.

> **2) Creating and Expanding Organizational Agility**

-   NASA will continue to incorporate human resources tools and
    strategies in major Agency transformation implementation plans,
    including legislative proposals, where necessary, to facilitate
    reforms (ongoing)

-   By October 2003 evaluate results of mobility/rotation study, and
    pilot/implement actions to expand development activities as
    indicated by study results

-   Identify strategically-derived goals for permanent/non-permanent
    mix, and implement a plan for achieving those goals.

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-   NASA will verify or -- where FY 2002 assessment results indicate its
    absence -- establish a linkage between employee rewards,
    recognition, and performance and Agency key goals (May 2003).

-   NASA Headquarters will verify that delegation of NEX authority to
    the Centers has resulted in increased use of this flexibility (June
    2003).

-   NASA Headquarters will survey Agency managers to assess satisfaction
    with the automated hiring system module of the IFMP (September
    2003).

## **3) Assuring Future Leadership, Management and Technical Expertise**

-   Implement by October 1, 2003 new positions subject to critical
    position pay authority

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-   By October 2003 implement agencywide program and products -- driven
    by strategic needs \-- related to mentoring and transferring
    knowledge from critical project leader experts to mentor future
    project leaders.

-   Implement by October 1, 2003 a training and education program that
    is aligned with strategic priorities based upon training needs

-   NASA will incorporate the Strategic Human Capital Plan into the
    Agency's strategic and performance planning processes (September
    2003).

**[BACKGROUND\
]{.underline}**

-   NASA reduced its overall civil service workforce by 26 percent
    between FY 1993 and FY 2000 and reduced the Headquarters staff by 50
    percent. Organizational restructuring and reductions resulted in a
    52 percent reduction in supervisory positions and a 15 percent
    reduction in SES. On an Agencywide basis, the supervisor to employee
    ratio went from 1:6 to 1:10.

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-   Less than 13 percent of Agency authorized funding is spent on civil
    service salaries and benefits. NASA accomplishes its work through
    the combined efforts of civil servants, contractors, and individuals
    from the academic world who contribute through post-doctoral
    fellowships, grants programs, Intergovernmental Personnel
    Assignments, and other partnerships.

-   NASA has transferred major and critically important functions, such
    as the transfer of space launch and operations to an industry
    partnership and a consolidated contract with an industry team to
    handle space communications. NASA established a contracting vehicle
    that outsources ownership and management of desktop computers, local
    servers, and other communications assets and services.

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-   Annual guidance for preparation of SES performance plans reflects
    ongoing requirement that all such plans be aligned with the NASA
    Strategic Plan.

-   Three NASA Centers have been involved in the pilot of an automated
    tool to link NASA Strategic Plan goals and objectives to the
    individual's performance plan.

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-   NASA has established partnerships with academia to provide
    fellowships in leadership and project management development,
    including partnership with the Massachusetts Institute of Technology
    in Project Management and with the University of Virginia's Darden
    Business School to develop a Business Education Program.

-   The Agency leadership model has been updated. It specifies the
    latest cutting edge skills and behaviors required for effective
    leadership, and is linked to NASA's Strategic Plan.

-   NASA is addressing the critical "pipeline" issue to ensure a future
    pool of talent in science, engineering, math, and technology
    disciplines. An Agency-wide Undergraduate Student Research Program
    pilot phase was initiated in FY 2001 with 107 students (55 male and
    52 female students with 41 percent minority participation from 29
    states and Puerto Rico, and represent 70 institutions).

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-   To enhance capability and reduce time away from work, NASA created
    and implemented additional on-line capabilities. In FY 2001, the
    Agency increased training *opportunities* in technology-based
    learning by 127 percent from the FY 1999 baseline and increased
    employee *use* of technology-based learning opportunities by 122
    percent.

**[NASA'S ACTIONS SINCE 9/30/01\
]{.underline}**

-   NASA began a Strategic Resources Review (SRR) in FY 2001 based on
    NASA's future vision and mission to ensure that resources are
    prioritized and directed at the most critical Agency requirements
    and to focus on the Agency's fundamental roles and missions. There
    are many activities/actions being studied/explored under the SRR,
    with three major ones being actively explored. They are Shuttle
    competitive sourcing, International Space Station (ISS)
    non-government organization (NGO), and Consolidated Business
    Services.

-   NASA has developed a "menu" of legislative proposals for civil
    service reforms that may be needed to accomplish SRR
    transformational activities and to ensure NASA can recruit and
    retain top science, engineering, and management talent.

-   NASA developed a human capital functional leadership plan to support
    the Agency Strategic Plan. This plan is being superseded by a
    comprehensive Agency Strategic Human Capital Plan that conforms to
    the OMB and OPM scorecard criteria. A team of senior NASA managers
    is currently developing a draft plan, to include goals, strategies,
    tactical plans, and success measures.

-   NASA utilizes recruitment bonuses and retention allowances -- a
    trend the Agency expects to continue because of an increasingly
    competitive job market and high cost of living in some areas.

-   The Agency is re-establishing its recruitment networks and
    rebuilding once extensive Co-operative Education Program. It
    continues to utilize the Presidential Management Intern Program and
    student employment programs as sources for entry-level hires.

-   NASA is one of the first Federal agencies to hire individuals under
    new Federal Career Intern Program -- a useful tool for hiring recent
    graduates in engineering and science.

-   NASA has implemented a paperless hiring and competitive promotion
    system -- greatly improving the speed of filling vacancies and
    improving the job-seeking experience for the public. It has been
    nominated for Agency and Government-wide awards.

-   The Agency established a National Recruitment Initiative to develop
    Agency-wide recruitment strategies to attract and hire a highly
    technical S&E workforce focusing on the candidate instead of the
    hiring process; leveraging partnerships and alliances with
    universities; and coordinating Agency-wide recruitment opportunities
    and outcomes. The report was issued in March 2002, with tools to
    facilitate achieving an agile, flexible hiring model identified.
    Three such tools are currently in the development stage.

-   NASA was the first agency to implement the new Federal-wide program
    to repay student loans to attract or retain employees in critical
    positions.

-   A variety of awards and performance recognition programs are in
    place. The Agency is currently conducting a study on how recognition
    programs foster behaviors that lead to mission success. Internal and
    external benchmarking is being used to identify critical factors for
    developing, using, communicating, and assessing recognition
    practices.

-   The Agency continues to emphasize quality of work-life initiatives
    such as alternative work schedules, family-friendly leave programs,
    and employee assistance programs.

-   NASA funds a minimum investment in learning of more than 3 percent
    of salary and plans continued investment at or above this
    percentage.

-   NASA has enhanced the system architecture of the Site for Online
    Learning Resources (SOLAR) to support 50,000 learners.

-   To improve project team competencies, emphasis has been placed on
    "just in time" training opportunities for project leaders and team
    members.

-   Learning through simulations, as well as coaching and mentoring
    opportunities, are being pursued.

-   The NASA Integrated Action Team (NIAT) identified actions to provide
    systems solutions to improve NASA's ability to effectively execute
    its mission, ensuring application of best practices across spectrum
    of Agency programs and projects. These actions are now underway.

-   The Agency redesigned its Fellowship Program, which now requires
    Center management to document a reentry strategy to ensure learning
    acquired is applied to Agency-mission needs. It includes a process
    to track related mission impacts resulting from the investment.

-   Programs have been added to provide knowledge sharing forums and
    deliver targeted development workshops geared at assisting intact
    project teams in performing quality project management,
    incorporating lessons learned on other projects.

-   NASA has long-term developmental processes in place that provide a
    critical tool for succession planning, including the Senior
    Executive Service Candidate Development Program and the Professional
    Development Program. With a goal toward ensuring a strong, diverse
    candidate pool of potential future leaders, increased emphasis is
    being placed on assuring the right people are nominated for such
    programs.

-   The Agency is developing program linkages/data system to link
    students supported by NASA Education Programs to Agency human
    capital requirements.

# COMPETITIVE SOURCING

#### CURRENT STATUS

OMB reports NASA's status as "red" for competitive sourcing. NASA has
not completed public-private or direct conversion competition on 15
percent of the FTEs listed on the approved FAIR act inventories of
commercial activities. NASA is in the process of developing a plan for
achieving competitive sourcing goals, and has agreed to undertake some
key competitive sourcing reforms. However, NASA has yet to complete its
strategic resources review that may identify competitive sourcing
opportunities, or lay out a concrete plan for meeting the
government-wide 50 percent competitive sourcing goal. NASA's FAIR Act
inventory may not reflect some of the FTEs that would be subject to
planned competitive sourcing activities, therefore it is critical to get
an updated FAIR Act inventory that accurately reflects commercial
activities as soon as possible.

**NASA PLANS TO ACHIEVE YELLOW STATUS**

Develop a Competitive Sourcing Plan to transform the 40-year old
national lab organizational model NASA uses to execute its programs and
greatly improve the agility and flexibility of NASA's workforce, NASA's
plan will:

-   Clearly articulate the reasons for pursuing competitive sourcing and
    make the case why competitive sourcing is in the best long-term
    interest of NASA.

-   Revise NASA's FAIR Act Inventory to be consistent with the workforce
    competencies and classifications provided in the Human Capital Plan
    (i.e., all positions not classified as inherently governmental will
    be classified as commercial on the Inventory) by June 30, 2002.

-   By June 30, 2002, provide an interim competitive sourcing plan that
    lays out NASA's specific competitive sourcing activities with the
    exception of Space Shuttle competitive sourcing and a non-government
    organization for managing Space Station research. This plan should
    provide an estimate of the specific FTE associated with and schedule
    for each activity.

    -   At a minimum, the interim plan for these reforms should include:
        a University Affiliated Research Center (UARC) at Ames Research
        Center, competitive sourcing for technicians at NASA's research
        centers, and, potentially, one consolidation effort with another
        government agency (e.g., DOD).

    -   Reforms can include (but are not limited to): traditional OMB
        Circular A-76 competitions, conversions excepted from A-76
        competition, consolidation with DOD or other federal agencies,
        and rehiring after attrition into new or existing contractor or
        partner organizations such as federally funded research and
        development centers (FFRDCs) or university affiliated research
        centers (UARCs).

-   By September, 2002, provide a complete, integrated, agency-wide
    competitive sourcing plan that includes Space Shuttle competitive
    sourcing and a non-government organization (NGO) for Space Station
    in addition to the reforms provided in the interim plan. This plan
    should, at a minimum, meet the long-term, government-wide 50-percent
    competitive sourcing goal and provide an estimate of the specific
    FTE associated with and schedule for each activity.

## **[Begin Implementation of Competitive Sourcing Plan]{.underline}**

To begin implementation of its plan, NASA will move beyond planning to
implementation of key activities including Shuttle competitive sourcing
and Station NGO. The plan should identify any necessary and appropriate
exceptions to full competition per OMB Circular A-76.

### Begin Extending Competitive Sourcing Reform to Contracted Activities

To begin ensuring that both civil servant and contracted activities are
subject to regular, recurring review and competition, NASA will initiate
the following actions.

-   Create a consolidated list of all Federally Funded Research and
    Development Centers (FFRDCs), University Affiliated Research Centers
    (UARCs), Commercial Centers for the Development of Space (CCDSs),
    University Research, Engineering and Technology Institutes (URETIs),
    and similar contracts and partnerships providing reimbursable
    support services by October 1, 2002.

-   Put in place plans for reviews and recompetition of these contracts
    and partnerships by September 30, 2003. At a minimum, plans will
    include mid-term review dates for any options to extend and a hard
    termination date of no greater than ten years with provisions for
    granting exceptions as appropriate.

**NASA PLANS TO ACHIEVE GREEN STATUS**

## **[Fully Implement Competitive Sourcing Plan]{.underline}**

To ensure full implementation of its plan, NASA will take the following
actions:

-   Achieve Phase I of NASA's competitive sourcing plan as approved by
    OMB (to be submitted on June 30, 2002) by September 30, 2003.

-   Be on schedule for achieving Phase II of NASA's approved competitive
    sourcing plan by September 30, 2003.

Final target commitments for Phase I and Phase II (e.g., 15% and 50%)
will be based on the 2000 FAIR Act Inventory baseline and analysis to be
completed by June 30, 2002.

### Fully Extend Competitive Sourcing Reform to Contracted Activities

To ensure that both civil servant and contracted activities are subject
to regular review and competition, NASA will complete or have underway
reviews and recompetitions for all contracts and partnerships that have
reached their mid-term review date or their mandatory re-compete date.

# FINANCIAL MANAGEMENT

**CURRENT STATUS**

OMB reports NASA's current status as "red" for financial management.
NASA had received a "clean" audit opinion for seven consecutive years
and the auditors concluded that NASA had no material financial
management weaknesses. PricewaterhouseCoopers (PWC), an independent
public accounting firm, audited NASA's FY 2001 financial statements, and
concluded that it could not express an opinion on the financial
statements because NASA did not provide sufficient evidence, on a timely
basis, to support certain amounts on the financial statements. PWC also
state that it identified a material weakness resulting from NASA's lack
of adequate controls to reasonably assure that property, plant, and
equipment and materials are presented fairly in financial statements.

NASA is implementing a new, Integrated Financial Management (IFM)
system. However, the most critical component, the Core Financial module
has not been fully implemented at the nine NASA field Centers and
Headquarters.

####### NASA PLANS TO ACHIEVE YELLOW STATUS

NASA's overall strategy to fully achieve the objectives of the financial
management initiative is to (1) successfully implement its new IFM
system and (2) resolve its material weakness and regain a "clean" audit
opinion on its financial statements.

[Implement IFM System]{.underline}

Due to the use of individual, non-integrated systems at Headquarters and
field Centers to meet statutory and regulatory reporting requirements,
NASA reports its financial systems as a significant area of management
concern in its annual report pursuant to the requirements of the Federal
Managers' Financial Integrity Act. The IFM program consists of a series
of projects such as core finance, including budget execution; travel,
and budget formulation. While all components of the IFM Program are
important, the successful completion of the Core Financial project is
particularly critical to achieving the objectives of the improved
financial management initiative and to implementation of full cost
budgeting and management. To continue progress towards full
implementation of NASA's IFM, NASA will achieve the following IFM
implementation milestone:

-   Successfully implement the IFMP Core Financial module at five field
    Centers and Headquarters (February 1, 2003)

**[Obtain "Clean" Opinion on FY 2002 Financial Statements]{.underline}**

A team consisting of CFO Office staff, Center finance staff, and
technical staff to address Station and Shuttle matters is addressing
each of the problems identified by PWC in its FY 2001 financial
statement audit. To achieve a "clean" opinion on its FY 2002 financial
statements, NASA will meet the following milestones:

-   Resolve all outstanding issues resulting from the audit of NASA's FY
    2001 financial statements (July 31, 2002);

-   Close FY 2002 financial records (November 15, 2002);

-   Obtain "clean" audit opinion on FY 2002 financial statements
    (February 1, 2003)

N**ASA PLANS TO ACHIEVE GREEN STATUS**

#### [Implement IFM System]{.underline}

NASA will complete full implementation of the IFM Core Financial module
by achieving the following milestone:

-   Successfully implement the IFMP Core Financial module at all nine
    field Centers and Headquarters (June 1, 2003) while continuing on
    schedule for implementing the remaining modules.

# EXPANDING ELECTRONIC GOVERNMENT

### CURRENT STATUS

OMB reports that NASA current status as "red" for e-government. NASA
has: completed all business cases for IT investment for FY 2002; made
progress on its Enterprise Architecture (EA); begun to transition to the
Information Technology Investment Portfolio System (I-TIPS); assessed IT
security program and developed an action plan for correcting weaknesses;
and is participating in seven E-gov initiatives (Geospatial Information
One Stop, Recruitment One Stop, Enterprise HR Integration,
E-authentication, Integrated Acquisition, and e-grants).

However, NASA's business cases have historically been delivered late,
NASA's EA is not yet adequately integrated with its Capital Planning and
Investment Control (CPIC) process, and NASA has weaknesses in some areas
of security including program management and implementation at both the
agency level and within Centers. Additionally, there is inconsistent
testing and evaluation of agency security effectiveness.

### NASA PLANS TO ACHIEVE YELLOW STATUS

-   Capital planning and investment control process must include the
    necessary provisions to submit business cases that are complete and
    on time -- September 2002.

-   Revise remaining unsatisfactory 2002 business cases as identified by
    OIRA.

-   Provide Exhibit 53 and IT business cases on time -- September 2002.

-   Create the FY 2004 President's budget Information Technology
    schedule using the Information Technology Investment Portfolio
    System (I-TIPS) -- September 2002.

-   Per updated corrective action plans, complete GISRA IT security
    actions for all systems with security weaknesses -- September 2002.

####### NASA PLANS TO ACHIEVE GREEN STATUS

#### [Ensuring the Strategic Value of IT Investments, justify IT investments and integrate planning into agency decision-making processes and strengthen capital planning and investment control process]{.underline}

-   Provide Exhibit 53 and IT business cases on time -- September 2002.

-   Complete updated corrective action plans for all systems with
    security weaknesses by September 2002.

-   For the baseline IT projects, conduct evaluation and monitor program
    performance. Metrics include; on average, operating within 90% of
    "OMB 300" cost, schedule, and performance targets by October 2002

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-   Plan and implement comprehensive Capital Planning and Investment
    Control (CPIC) process that integrates IT investments decisions with
    NASA's Enterprise Architecture for selecting, managing, and
    evaluating IT investments by December 2002

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-   Collaborate with US Dept of Education and NSF in establishing a
    Federal e-Partnership Plan for delivering theme-based educational
    web campaigns in support of the President's Education Agenda by
    July 2002. Deliver and evaluate pilot campaign by December 2002.

-   Establish an Agency level Enterprise Architecture office towards
    developing the next phase of NASA's Enterprise Architecture. Phase 1
    to include major business operations by September 2002; Phase 2 adds
    3 mission areas by July 2003. This agency-level framework will
    address managing all IT investments and greater centralization of IT
    security functions. Implement configuration management function by
    October 2002.

#### [Achieving Internal Efficiency and Effectiveness by Leveraging Technology]{.underline}

-   Transition and strengthen common IT infrastructure and shared
    services based on industry best practices to support "one NASA" - a
    move from distributed business processes to federated, shared
    services for accelerated IFMP deployment -- February 2003.

-   Ensure Agency participation as a partnering agency in implementing 3
    OMB E-Government Initiatives (e-training, Enterprise HR
    Integration) - Ongoing

-   For the eTraining initiative, provide support, technical assistance
    and advice to OPM. Assist in the development of OPM's initiative
    based on NASA's development and implementation efforts on the
    "Solar" electronic training site.

#### [Delivery of Information Services to the American Citizen]{.underline}

-   Become the managing partner for a government-wide e-education
    project. Submit e-education plan and business case for OMB approval
    by July 2002.

-   E-Authentication -- NASA has provided a full-time technical manager
    to GSA. Chair the CIO Council Committee to oversee the project.

#### [Improving Intergovernmental Efficiency through E-government]{.underline}

-   Geospatial Information -- NASA is partnering with Department of
    Interior to ensure our data products are compliant with the
    Geospatial Information One Stop initiative.

-   EGrants

    -   Coordinating the interagency activity under the initiative to
        expand previous efforts by NSF to pilot their electronic grant
        application system. Partners include
        NSF/NIH/Agriculture/NOAA/ONR. On going activity

    -   Initiated and led a pilot project to create an Internet portal
        to search across the Catalog of Federal Domestic Assistance and
        the FedBizOpps for grant programs and opportunities to be used
        in pre-populating the grant application. Pilot to be integrated
        with E-Grants project for coordination of user training and
        testing by April 30, 2002.

    -   NASA is also the lead on the group tasked by OMB to determine
        the best single identifier to be used across all Federal grant
        recipients by October 30, 2002.

######## [Reduce the burden on Business through E-Government]{.underline}

-   Integrated Acquisition -- provide technical guidance and support for
    the government-wide initiative. NASA led the technical development
    of FedBizOpps thru the early deployment of the NASA electronic
    posting system -- NAIS. Ongoing activity.

###### ACTIONS TO DATE

-   Developed an e-NASA strategy to provide a strategic framework for
    NASA e-government investments -- July 2001

-   Assessed IT security program and developed corrective action plan -
    November 2001

-   Completed an assessment of NASA-wide IT infrastructure to support
    core business and mission requirements -- January 31, 2002

-   Implementing an on-line Information Technology Investment Portfolio
    System (I-TIPS) and created an agency wide Information Technology
    call - March 15, 2002

-   Submitted to OMB all remaining "major" systems business cases for FY
    2002 President's budget submission -- March 15, 2002

-   Drafted Governance Paper for Agency discussion that incorporates
    strategic management of IT assets and robust implementation of CPIC
    -- April 30, 2002

-   Developing plan and business case as the Managing Partner for a new
    cross agency initiative on E-education.

-   Initiated a series of Pilot Projects in the Agency that support the
    use of technology to more efficiently performs missions. (Web-based
    collaboration tools, and internal and external portal pilots)

# BUDGET/PERFORMANCE INTEGRATION

####### CURRENT STATUS

OMB reports NASA's status as "red" for budget/performance integration.
NASA has made efforts in recent years to move forward towards full cost
budgeting and publish its budget justification and performance plan in a
single document. However, NASA has yet to implement full cost budgeting
and management. NASA's performance planning is also inadequate to
support performance budgeting. OMB's Spring Review will require all
agencies, in concurrence with OMB, to select programs for evaluation in
the President's FY 2004 Budget and the criteria that will be used to
evaluate those programs.

NASA has already taken the necessary steps to define its full cost
budgeting, management, and accounting approaches in a formal
Implementation Guide, which has been in use for planning purposes over
the past two years, is assembling a representative full cost recast of
its FY 2003 budget submission, and has initiated activities for
formulating its FY 2004 Budget in full cost. Also, NASA has been, for at
least the past two budget cycles, using an integrated Agencywide budget
formulation process with a single Agency-wide database to collect and
review budget recommendations from the project level through the Center,
Enterprise, and Agency management decision levels and ultimately produce
all budget submission information.

NASA PLANS TO ACHIEVE YELLOW STATUS

[Implement Full Cost Budgeting]{.underline}

-   NASA will submit to OMB a full cost recast of its FY 2003 budget
    submission, in order to identify the changes attributed to the
    transition to full cost and act as a baseline for identifying
    programmatic-driven changes in the FY 2004 budget request.

-   By September 2002, NASA will submit a five year, full cost budget
    for its FY 2004 budget request to OMB that distributes personnel,
    overhead, and related costs to the program level, for use by OMB in
    developing the FY 2004 President's Budget.

[Prepare for Performance Budgeting]{.underline}

-   By May 15, 2002, NASA will reach agreement with OMB on the outline
    for a Performance Budget Document that integrates theme area goals,
    funding estimates, schedule, and related performance plan material.
    This will be backed up by the appropriate Exhibit 300B's; along with
    a list of programs to be covered through the OMB Spring Review and
    criteria for evaluating those projects based on the
    Administration\'s R&D criteria.

-   By mid-June 2002, NASA will reach agreement with OMB on the formats
    to be used in the Performance Budget Document.

-   By August 2002, a shared data file will be established as to where
    all formally cleared budget-process related documents to be used by
    OMB and NASA will be kept.

-   By September 2002, NASA will submit to OMB an initial draft of its
    Performance Budget Document with

    -   100% of pre-defined Exhibit 300B's,

    -   at least the measures for 20% of the theme areas agreed to in
        the OMB Spring Review

NASA PLANS TO ACHIEVE GREEN STATUS

[Implement Full Cost Management]{.underline}

-   By December 2003 NASA will demonstrate that full cost budgeting,
    management, and accounting are routinely being used across the
    Agency and that program resources management decisions include the
    integrated consideration of personnel, overhead, and related
    programmatic costs and/or funding requirements.

[Implement Performance Budgeting]{.underline}

-   By February 2003, NASA will provide the completed Performance Budget
    Document for submission to Congress.

![](media/image1.jpeg){width="8.2in" height="5.781944444444444in"}

# PMA SCORECARD

Add line for \"Agreed OMB-NASA Plan\": all green

Replace \"OMB Plan Score\" with \"OMB Progress (as of 31 March 2002)\":
oval colors stay the same