**The President's Management Agenda at NASA**

The President's Management Agenda (PMA) calls for a bold agenda of
government management reform. By the end of his first term, President
Bush expects a government that will be entirely different from the one
he inherited. To further this goal, he has challenged all Federal
agencies to commit to goals (in terms of being Red, Yellow, or Green)
and milestones across the five PMA initiatives. He has charged OMB's
Deputy Director for Management, Clay Johnson, with leading this effort
government-wide.

Responding to Clay Johnson's request for agencies to identify where they
would be "Proud to Be" by July 1, 2004, NASA has committed to provide
specific deliverables in each of the next four quarters with the
expectation that, by this deadline, we will have achieved status
improvements in the scores on each of the five PMA initiatives.

This document is the more detailed synopsis referred to in the Deputy
Administrator's Infocom message on August 20, 2003. While these
commitments will drive NASA's efforts toward reaching its PMA goals, the
specific criteria may change as circumstances change. For example,
recent changes in the government-wide Competitive Sourcing criteria are
not reflected in this document, and the outcome of the Columbia Accident
Investigation Board may yet warrant further changes in the criteria on
any or all five of the initiatives.

If you have any further questions on the PMA and its requirements,
please contact Lloyd A. Blanchard at 202-358-1153, or email him at
[lloyd.a.blanchard@nasa.gov]{.underline}.

##  

# **Human Capital**

Owner: Vicki A. Novak (202- 358-0520)

**Goal:** [**√**]{.underline} **\_\_\_\_ \_\_\_\_**

Criterion #1: Human capital strategies are linked to agency mission and
goals (agency sample plan will be identified).

NASA has developed a comprehensive Strategic Human Capital Plan (SHCP)
and accompanying implementation plan, which OPM and OMB approved in
August 2002. NASA used the initial version of the Human Capital
Standards and OPM "dimensions" as an overarching architecture for the
SHCP. Once the architecture was in place, a team of senior NASA managers
did an assessment -- or "gap" analysis -- of the Agency's current human
capital management strengths and weaknesses with respect to the Agency's
mission, vision, and strategic objectives. This assessment highlighted
nine major focus areas -- or key "improvement initiatives" -- that have
been accepted and endorsed by NASA management and serve as the
foundation of the SHCP. NASA's Standards for Success and means to
measure them are contained in the SHC Implementation Plan: (1)
Continuous progress in closing gaps in NASA's critical competencies, and
(2) Alignment of NASA's human capital strategy with its mission, goals,
and organizational objectives. Both of these are expanded further in the
Implementation Plan and the Accountability System. The source of data is
surveys and the competency management system.

The NASA Senior Leadership has fostered an environment of HR
collaboration throughout the strategic human capital planning process.
This has ensured that human capital strategies are aligned to best
support mission accomplishment and incorporated into strategic and
performance planning. Further, senior leaders, including the Agency
Head, actively engage HR on a wide variety of HR issues. Examples are:
development of human capital legislative proposals; Agency competitive
sourcing plans; full cost management implementation, corporate
recruitment strategy, development and implementation of performance
criteria for Senior Executive Service (SES) hires, promotions, bonuses,
developmental assignments (which aligns performance with outcomes);
development and use of the competency management system. HR is also a
key participant in or leader of a variety of workforce studies/issues.
Examples of those are: studies of the International Space Station (use
of a non-government organization to perform work); future staffing
issues related to the Space Shuttle Program; feasibility, development,
and implementation of a NASA Shared Services Center (The Center would
consolidate operations work for HR, procurement, IT, budget.). The
Agency is implementing a One NASA approach, which assists in eliminating
stovepipe thinking. HR has incorporated that approach in HR policies,
tools, and guidance. Further, HR is launching a One NASA-One HR
initiative to further the reality of the entire HR community working
together to support the senior leadership in achieving Agency mission
success.

**[Criterion #1 Milestones:]{.underline}**

Q3/2003 • Verify that delegation of NEX authority to the Centers has
resulted in increased use of this flexibility

Q4/2003 • Incorporate the NASA Strategic Human Capital Plan into the
Agency's strategic and performance planning processes

> • Implement new positions subject to critical pay authority

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

• Implement an enhanced Agency-wide strategy to recruit and retain
critical competencies

**Criterion #2: Organization is restructured as appropriate to provide
optimal service at lowest cost and respond to changing business needs;
strategies include redeployment, delayering, competitive sourcing, and
E-Gov.**

A strategic workforce management process is under development. It will
tie in competency management and out year program and project staffing
requirements with corporate recruitment initiatives and educational
programs that enhance the quality, quantity, and diversity of the future
pipeline of graduates.

NASA has implemented Agency-wide a paperless hiring and competitive
promotion system -- NASA STARS -- to improve the speed of filling
vacancies. Since enhancing NASA STARS with new applicant services,
visitors to the web site have increased dramatically and the vast
majority of users have expressed satisfaction with the builder and
application submission process. In an on-line survey conducted
immediately after they submitted their applications, 98 percent of
applicants have expressed satisfaction with NASA STARS (about 50,000
responses). Generally, managers have indicated satisfaction with the
quality of candidates. A formal automated survey of managers'
satisfaction will be completed by September 30, 2003. With respect to
response time to an applicant's submittal of a resume or job application
with an acknowledgement of receipt, NASA went from a 75-day average
response time to less than 1 day because applicants now receive an
automatic e-mail response. In addition to internal Agency awards, NASA
STARS has received an OMB e-Gov award.

NASA has also completed rollout of an Agency-wide automated position
description management system. This system permits the rapid preparation
and classification of position descriptions (PD) and the automated
generation of associated documents. Managers are able to use a web site
to select PD\'s from a library or build PD\'s by identifying duties and
allowing the system to determine the series and grade.

NASA will restructure business processes and its service delivery
organization through deployment of the Integrated Financial Management
(IFM) System and e-Payroll and the establishment of a NASA Shared
Services Center (NSSC). The new technology and organization are
synergistic. The NSSC will have a mixed civil service and contractor
workforce and will result in civil service FTE savings as well as
overall FTE savings. Meanwhile, the HR community is working in
collaboration to provide personnel guidance and some personnel services
through an Agency-focused website, whereas historically, each personnel
office provided/established Center-specific information. This is an
example of NASA's approach to eliminate duplication of effort and to
provide a more effective and efficient way to provide consistent, top
quality information to all NASA employees in a timely way.

**[Criterion #2 Milestones:]{.underline}**

Q4/2003 • Assess satisfaction with the automated hiring system module of
IFMP

Q1/2004 • New strategic workforce management process directive in place

Q3/2004\` • Strategic workforce management has been integrated with
budget process

• Complete transition to Department of Interior E-Payroll

> • NASA will have a process in place to address future changes in
> business needs

**Criterion #3: Continuity of leadership and knowledge is assured
through succession planning and professional development.**

NASA has maintained a strong emphasis on focus on providing learning
opportunities for employees. NASA leadership training and development
programs are comprehensive, providing succession-planning tools to
prepare the workforce for future leadership opportunities and
requirements. Beginning with the development and implementation of the
NASA Leadership Model, the Agency has placed emphasis on leadership
evaluation and development through evaluation instruments, local and
distributed learning opportunities, workshops, seminars, conferences,
and resident classes. Further, NASA's Senior Executive Service (SES)
Candidate Development Program offers individuals a structured approach
to preparing for recurring openings in the SES. Designed to develop both
leadership and enhanced technical competency and meet NASA\'s projected
needs, this program provides a series of intensive developmental
experiences for people who are judged to have high potential for
assuming executive responsibilities. In addition, in FY 2003 an
Executive Potential Program was also initiated to respond to the need
for additional leadership development opportunities, providing greater
breadth of experience, developmental assignments, and shared
culture/collaboration for members of the workforce at the GS-13 and
GS-14 levels.

Ensuring continuing knowledge and expertise in the area of project
management is also vital to accomplishing NASA's vision and mission. As
a result, NASA has also initiated a knowledge sharing effort for the
express purpose of capturing and communicating project knowledge and
wisdom from the best project practitioners within the Agency. As part of
this effort, project management experts gather periodically to share
their stories of success to promote learning, mentoring and leadership
development. Over the last 12 months, NASA conducted a Project
Management Shared Experience session and two Masters Forums where NASA
participants, as well as participants from the aerospace and
non-aerospace communities, shared their project management experiences.
Many stories are captured in the Academy Sharing Knowledge (ASK)
magazine, available in hard copy and on line, which provides a further
mechanism for communicating these lessons. Initial outcomes of this
effort include practitioners adopting new management approaches based on
stories and lessons from their colleagues. The Agency also recently
developed a knowledge sharing and mentoring plan that will continue and
expand NASA's knowledge sharing efforts. In addition, a developmental
program for high potential project managers was initiated to provide
formal education and knowledge in project management, as well as on the
job development and experience, resulting in a succession planning
strategy and a pipeline for future project leaders.

**[Criterion #3 Milstones:]{.underline}**

Q1/2004 • Evaluate mobility study and pilot actions to expand
development activities

• Implement Agency programs and products related to mentoring and
transferring knowledge from critical project leader experts to future
project leaders

• Implement training and education program aligned with strategic
priorities based upon training needs

Q3/2004 • Sustain Leadership Development Program and Leadership
Fellowship opportunities

Criterion #4: Performance appraisals for SES and managers link to agency
mission and are cascaded appropriately throughout more than 60% of the
agency.

The Offices of Human Resources, Education, and Equal Opportunity formed
a partnership, which integrates and capitalizes on the best of each
office's programs. One initiative was to establish seven performance
criteria for SES positions; that effort was personally led by the
Administrator.

The seven performance criteria address the following areas: President's
Management Agenda, Health of NASA, Equal Opportunity and Diversity,
Collaboration, Professional Development, Program Objectives (i.e.,
mission success), Fair and Equitable Performance-Based Evaluation
System. These seven criteria have been applied to all SES members. The
next step is to cascade those (with slight modifications) seven criteria
to all supervisors and managers. The final step will be to tailor and
cascade the further-modified criteria to the remaining workforce with
the focus on achieving mission success. These criteria will be
incorporated into all NASA employees performance appraisals and used for
making a variety of personnel decisions including hiring, promoting,
rewarding, developing, etc.

An Agency team was established in FY 2002 to review the alignment
between recognition and awards and the Agency's performance expectations
as they relate to the Agency's mission and goals. After conducting focus
groups, benchmarking NASA against 13 private companies and visiting the
top five companies, and collecting data to assess the Agency's current
state, the team concluded that the alignment is satisfactory. However,
the team determined that as a strategic management tool the alignment
could be stronger. In October 2002, the team presented its findings and
recommendations to the Incentive Awards Board, chaired by the Associate
Deputy Administrator and comprised of senior management. The Board
endorsed the team's four management strategies to strengthen the
alignment between NASA's recognition and awards programs and the
Agency's performance expectations to attain mission success. The
management strategies are: 1) instill more accountability (e.g.,
leadership commitment and clear awards criteria); 2) create additional
flexibility for when and how employees are recognized; 3) educate the
workforce about the Agency's recognition and awards programs and their
relationship to individual employees' performance and attainment of
mission success; and 4) manage data for performance results (e.g., seek
employee feedback and utilize data to analyze the programs' impact on
performance). The Office of Human Resources is collaborating with NASA
Enterprises and Centers to develop an implementation plan that will
identify and prioritize improvement actions based on the perceived
impact on the workforce. The implementation plan will also require an
assessment of the improvements and a periodic sharing of lessons
learned.

**[Criterion #4 Milestones:]{.underline}**

Q3/2003 • Will verify or -- where FY 2002 assessment results indicate
its absence -- establish a link between employee rewards, recognition,
and performance and Agency key goals

Q4/2003 • Cascade seven performance criteria to 60 percent of the Agency
which links individuals' performance to outcomes

> Criterion #5: Workforce is diverse, including mission critical
> occupations and leadership; agency consistently measures and works to
> sustain diversity.

NASA continues to make gradual, steady progress in workforce diversity.
In the supervisory ranks, since the start of FY 2000, the proportion of
minorities and women has increased from 32 to 35 percent, and among
senior executives, from 28 to 32 percent. Within the mission critical
science and engineering segment of the workforce, minorities and women
increased from 31 to 33 percent of the total. Most segments of the
workforce show similar progress.

Diversity progress and diversity of new hires at Centers is shared with
senior management each quarter in a formal report. The information is
continually updated and available to all managers (and employees) via
the Web.

Management attention and initiatives for corporate recruiting and
educational programs affecting the pipeline will ensure continued
progress.

The Offices of Human Resources and Equal Opportunity are working
collaboratively to review the full spectrum of HR programs to ensure
that HR decisions are based in fairness, equity, merit, and performance.
Best practices are being developed to assist management in those HR
decisions.

**[Criterion #5 Milestone:]{.underline}**

Q1/2004 • Competency management system and workforce analysis tools
integrated in Agency strategies to ensure diverse workforce

> Criterion #6: Current and future skill gaps in mission critical
> occupations are identified and reduced.

NASA provides managers, analysts, Centers, and Enterprises with a unique
set of workforce analysis and planning tools on the Web. For each
organizational, occupational, and demographic segment of the workforce
NASA provides data on hiring, attrition, and on-board strength going
back five years. Additionally, forecasts of anticipated retirements and
other turnover for the coming five years for critical populations are
available to planners. Further, NASA is refining an Agency-wide
Competency Management System (CMS) that will be utilized to identify,
manage, and report workforce competencies, that is, the "know-how"
strength and needs of the Agency. The system will be capable of
capturing competencies for every employee, every position, and every
budgeted program/project. The system will integrate a variety of data in
order to perform targeted analysis for the purposes of workforce
planning.

When fully implemented in FY 2003, the NASA CMS will be able to compare
future competency demands imposed by NASA's mission with the current
knowledge base of its workforce to identify potential shortfalls and
surpluses. This gap information will then be used to help influence
other human capital business processes in order to align the capability
of the workforce with the strategic direction of the Agency. As an
example, in November of 2002, data analyses from CMS identified several
competency areas that were a potential risk of shortfall in
organizational capability due to forecasted attrition rates. This
competency "gap" information, along with other workforce planning data,
helped to set the priorities and targeted occupational areas for NASA's
participation in the national recruitment initiative.

NASA is well on its way to meeting its September 30, 2003, deliverable
of identifying skills gaps in mission critical areas via an Agency-wide
Competency Management System. Once identified it will tie in the
corporate recruitment, training and education initiatives that enhance
the quality, quantity, and diversity of the future pipeline of
graduates. We will be tracking the closing of the gaps through the
annual strategic workforce planning process.

An enhanced strategic workforce management process is under development.
It currently ties in competency management to corporate recruitment and
education initiatives that enhance the quality, quantity, and diversity
of the future pipeline of graduates.

**[Criterion #6 Milestones:]{.underline}**

Q4/2003 • Complete phase 2 data collection for workforce competencies
and projected mission competency requirements

• Complete 1st GAP Analysis between mission demand and workforce
capabilities with identification of mission critical competencies

Q3/2004 • Complete update of workforce competencies and projected
mission competency requirements in conjunction with Agency annual Budget
POP cycle

• NASA will have integrated competitive sourcing into its gap reduction
Strategy

> Criterion #7: Human capital program is guided by measurable outcomes
> (examples will be identified).

NASA has developed an Accountability System/Activity and has three
guiding principles: 1) to advance the Agency's agenda to align and
reinforce its values and expectations through cyclical fact-based
evaluation; 2) to strengthen the commitment to the strategic improvement
process across all levels and organizations; and 3) to ensure that
organizational learning leads to insights and action.

NASA's self-assessment system is the structured process for managing
what and how the Agency measures its human capital success as to
whether: 1) Agency human resources practices are linked to Agency
vision, mission, strategic objectives, and expectations; 2) targeted
investments for increasing individuals' organizational value result in
increased performance capacity of the organization; and 3) this level of
accountability for measuring for results is exercised across all levels
and organizations.

The human capital accountability measurement activity is closely linked
to the Agency's cycle for human capital planning process so that
accountability measurement activity informs, and is informed by, the
Agency strategic human capital planning.

That integration includes the four steps of the strategic human capital
planning, which includes "measure" and "respond" as two key pieces.
During those key steps, the Strategic Human Capital Implementation Plan
milestones are tracked, reports distributed on human capital measures,
human capital assessments are reviewed and course of action are weighed.
Action is then taken and impact assessed.

Further, all NASA Centers and Headquarters have achieved ISO 9001
registration. ISO 9001 certification means that an organization has a
quality management system in place that meets the minimum requirements
of the ISO 9001 international standard. Benefits are realized through
management continuously using and improving the system to improve
product and service quality, and maximize the effectiveness and
efficiency of the system processes. The goal is to ensure that the
quality of the organization's products and services meet or exceed
customer requirements. HQ and Center ISO 9001-certified management
systems are comprised of an inter-related set of policies and processes
for controlling the quality of each site's products and services. Each
management system was designed, developed, and implemented to conform to
the internationally recognized ISO 9001 standard. The scope of NASA
Center management systems varies from site to site, but at a minimum
incorporates processes that directly affect the quality of products and
services provided to meet all or many of their direct mission
requirements. Internal and third party audits are routinely conducted to
assess compliance with the ISO standard and effectiveness of the
management systems.

**[Criterion #7 Milestone:]{.underline}**

Q4/2003 • Measures in place and Enterprises/Centers able to use
information to guide human capital decisions

# **Competitive Sourcing**

Owner: Tom Luedtke (202- 358-2090)

**Overall: \_\_\_\_** [**√**]{.underline} **\_\_\_\_**

**Criterion #1: People, systems and resources are in place to conduct
scheduled public/private competitions.**

NASA has the following Competitive Sourcing infrastructure:

1.  The Senior Procurement Executive is NASA's champion aligning with
    the placement of Government-wide leadership at OFPP

2.  A dedicated Agency Competitive Sourcing Team has been established to
    provide leadership in A-76/Competitive Sourcing issues.

3.  A senior-level Competitive Sourcing Review Board has been
    established to ensure that the perspectives of all affected offices
    are considered in the implementation of competitive sourcing.

4.  An Agency-wide network of Competitive Sourcing Points of Contact has
    been established to facilitate communications and to ensure that
    local A-76/competitive sourcing expertise is available.

5.  Agency-wide policy implementing A-76 has been put in place.

> Detailed instructions for coding the FAIR Act inventory has been
> issued to ensure the development of a consistent and uniform inventory
> across NASA.

**[Criterion #1 Milestones:]{.underline}**

Q3/2003 • Determine additional staffing needs based on our approved plan

Q4/2003 • Submit staffing plan for fiscal year 2005 budget

Q1/2004 • Monitor implementation and provide feedback to Centers

**Criterion #2: Average time for competitions drops to 12 months (from
36 months).**

NASA concurs with this goal in principle and will strive to meet it.
However, NASA has not conducted a public/private competition and,
therefore, does not have experience upon which to base its concurrence.

**[Criterion #2 Milestones:]{.underline}**

Q3/2003 • Advise affected Centers of 12-month target

Q4/2003 • Establish schedule and milestones for planned FY04 competition

**Criterion #3: Competitions for 30% of commercial activities initiated
or completed.**

NASA exposed 16% of its commercial activities to competition through
direct conversions through FY 2002, exceeding the Government-wide FY
2003 goal of 15%. OMB approved NASA's interim competitive sourcing plan.
We fully expect to have initiated the balance of the 30% goal identified
above by July 1, 2004.

**[Criterion #3 Milestones:]{.underline}**

Q3/2003 • 3

Q4/2003 • 3

Q1/2004 • 3

Q2/2004 • 3

Q3/2004 • 

**Criterion #4: Completed competitions improve productivity and produce
annual savings.**

NASA fully expects that completed competitions will achieve productivity
improvements and produce annual savings.

**[Criterion #4 Milestones:]{.underline}**

Q3/2003 • While science competitions do not lend themselves to direct
quantification of savings, exposing scientific investigators to a
competitive environment ensures that they are not insulated from
competition. Also, that competitive environment drives a higher quality
of scientific research. Furthermore, NASA will participate in the OMB
cross-cutting improved R&D criteria initiative will sharpen the
competition.

Q4/2003 • same as above

Q1/2004 • same as above

Q2/2004 • same as above

Q3/2004 • same as above

**Criterion #5: Competitively sourced commercial activities completed
(Cumulative).**

**[Criterion #5 Milestones:]{.underline}**

Q4/2003 • 19%

Q4/2004 • 37%

Q4/2005 • 44%

# **Improved Financial Performance**

Owner: Gwendolyn Brown, (202-358-0978)

**Overall: \_\_\_\_** [**√**]{.underline} **\_\_\_\_**

**Criterion #1: Meet accelerated November 15^th^ deadline for audited
financial statements.**

NASA is on track for FY 2004 and will have met deadline in 2003, one
year ahead of schedule. Working with the Inspector General (I.G.) and
the external auditor to finalize the audit plan for Fiscal Year (FY)
2003.

**[Criterion #1 Milestones:]{.underline}**

Q3/2003 • Meeting with Office of Management and Budget (OMB) Inspector
General and auditor to present audit plan for FY 2003.

Q4/2003 • Begin weekly preparation/audit status meetings

Q1/2004 • Present Draft year-end statements to PWC (10/23/03)

Q3/2004 • Meeting with Office of Management and Budget (OMB) Inspector
General and auditor to present audit plan for FY 2004.

**Criterion #2: Receive clean opinion on audited financial statements.**

Yes.

**[Criterion #2 Milestone:]{.underline}**

Q1/2004 • Receive clean audit opinion (received clean opinion in the FY
2002 audit).

**Criterion #3: Resolve auditor-identified and Integrity Act material
weaknesses in internal control.**

NASA will have achieved a 70% reduction in auditor and Integrity Act
Sec. 2 weaknesses. NASA will have installed by FY 04 a single integrated
financial management system to address NASA's material weakness and
Federal Financial Management Improvement Act (FFMIA) non-compliance.

NASA will take corrective actions as identified in the FY 2002 Audit
report to ensure adequate compliance with required maintenance of
property and materials in the financial statements. To the extent
possible, NASA will continue to work with Inspector General and their
external auditors to address issues related to the material weakness.

**[Criterion #3 Milestones:]{.underline}**

Q3/2003 • Implement the core financial module of the IFMP

Q4/2003 • Contractors submit 3^rd^ quarter property data

Q1/2004 • Contractors submit year-end data

Q3/2004 • Demonstrated progress on IFMP asset management module

**Criterion #4: Agency funds are disbursed in strict compliance with
appropriations law.**

NASA will have no anti-deficiency act violations.

**[Criterion #4 Milestones:]{.underline}**

Q3/2003 • Continue to disburse funds in compliance with appropriation
law

• Implement the core financial module of IFMP

**Criterion #5: Financial systems are integrated and provide timely and
reliable financial information.**

NASA's systems will comply with FFMIA. Core financials will be completed
the 3^rd^ quarter FY 2003.

**[Criterion #5 Milestones:]{.underline}**

Q3/2003 • Complete implementation of Integrated Financial Management
Program (IFMP) core financial module

**Criterion #6: Financial and performance information is routinely
considered during operational evaluation and decision-making.**

Yes.

**[Criterion #6 Milestones:]{.underline}**

Q3/2003 • Complete implementation of Integrated Financial Management
Program (IFMP) core financial module

Q3/2004 • Implement budget formulation module of IFMP

**Criterion #7: Monthly financial performance metrics reported, tracked
vs. goals, and available on line at agency.**

Yes. Integrated Financial Management (IFM) provides Agency with data to
track goals and performance.

**[Criterion #7 Milestones:]{.underline}**

Q3/2003 • Complete implementation of Integrated Financial Management
Program (IFMP) core financial module

**Criterion #8: Substantially reduce erroneous payments**

NASA will have measured, determined causes, and taken remedial actions
to reduce erroneous payments. During FY04 NASA will contract with a
recovery audit firm to determine the extent of any erroneous payments.

During FY03 NASA has been installing a new single integrated financial
management system at all NASA Centers. NASA decided to direct its
limited resources to this effort before using the same resources to work
with the recovery auditors.

**[Criterion #8 Milestones:]{.underline}**

Q3/2003 • Complete implementation of Integrated Financial Management
Program (IFMP) core financial module

Q3/2004 • Contract with a recovery audit firm to determine the extent of
any erroneous payments.

**Criterion #9: Migrate to government-wide payroll providers**

NASA is on track for migration by August 2004. Business Plan has been
developed and on tract to migrate to the Department of Interior.

**[Criterion #9 Milestone:]{.underline}**

Q3/2004 • Complete transition to Department of Interior E-Payroll

# **Expanded Electronic Government** 

Owner: Patricia Dunnington (202- 358-1824)

**Overall:** [**√**]{.underline} **\_\_\_\_ \_\_\_\_**

**Criterion #1: Focus IT spending on high priority modernization
initiatives.**

-   Will have defined and begun implementation of a Modernization
    Blueprint (Enterprise Architecture)

-   Will have commenced implementation of at least one IT initiative
    that affects more than 1 million citizens

-   FY 2004 Administrative spending (salary and expenses accounts) will
    be less than FY 2003

NASA is taking a number of steps to ensure that the Agency's IT spending
is focused on high priority modernization initiatives, particularly
initiatives that support the goals of the five President's Management
Agenda (PMA) focus areas.

The cornerstone of NASA's activity in this area is the Agency's updated
Enterprise Architecture (EA), which will identify strategic IT focus
areas in support of the Agency's mission and goals. Using the EA, NASA
will continue to identify opportunities for the delivery of superior
information services to consumers, educators, students, researchers, and
the general public, as well as to Government agencies, NASA contractors
and suppliers, and other businesses. Additionally, NASA will ensure
alignment of the Agency EA with the Federal EA, particularly with
respect to identifying potential opportunities for participating in
Federal e-government initiatives, and will continue to participate
actively in Federal EA activities.

It is difficult to quantify the potential savings to be realized by the
full development and implementation of an Agency EA, but NASA will use
the EA and related activities to reduce administrative spending
throughout the Agency. Updates to NASA's EA will provide the Agency with
a mechanism for examining ways to increase the efficiency and
effectiveness of Agency product and service delivery. The EA will
document NASA's "as-is" and "to-be" architectures and provide a means to
map the transition between the two states. From an Agency perspective,
an end-to-end architecture will present significant opportunities for
consolidation, elimination of redundant functions, and other
improvements that could lead to considerable future savings. It will
give NASA an opportunity to look at different delivery models for the
provision of products and services across the Agency, with the ultimate
goal of achieving a reduction in the amount of capital investment
required.

The EA will also enable the Agency to move from individual,
Center-specific IT solutions to Federal E-Government initiative
solutions or NASA-wide systems. Specifically, the EA "to-be"
architecture will define NASA's future vision with respect to moving to
Federal e-government systems and solutions, where appropriate, to
replace redundant, inefficient, or costly Agency systems. For example,
the Agency's future state EA will show NASA's transition to the
Department of Interior E-Payroll solution, the utilization of Integrated
Acquisition tools and capabilities, and the adoption of other Federal
e-government solutions that will refocus spending.

The NASA EA will be closely linked to the development and implementation
of a revised capital planning and investment control (CPIC) process for
the Agency. Using the EA as a roadmap, the Agency will use the
disciplined CPIC processes to ensure the selection and control of
investments that are in line with the Agency's priorities as defined in
the EA and NASA's PMA plans. For example, because NASA has identified
education as one of the critical strategic enterprises, the Agency will
ensure IT investment related to delivery of services to students and
educators. The ultimate goal in revising NASA's CPIC processes is to
ensure that NASA's IT investments are selected and managed to maximize
efficient spending, reduce potential redundancy, and best meet the needs
of NASA's internal and external customers.

In keeping with NASA's emphasis on educating and inspiring the world
about the Agency's mission and goals, NASA will continue enhancements to
our main Web site. NASA's redesigned main web site provides the general
public with a cohesive view of the Agency's information. It was heavily
utilized following its launch on February 1, 2003, as a source of
information on the Columbia accident. Statistics indicate that over 6
million unique users have visited the site since February 1, and that
number promises to increase dramatically with the rollout of new portal
features, including personalization capabilities and an integrated
taxonomy, in June 2003.

In addition to serving citizens through continued improvements to the
NASA home page, the Agency is a key contributor to another E-Government
initiative that impacts a large number of citizens. NASA is a key
contributor to the Federal E-Authentication Initiative, providing
technical expertise to the E-Authentication managing partner and
committing Agency resources to the initiative. NASA is one of a few
agencies that has already cross-certified with the Federal PKI Bridge,
which is the cornerstone of the E-Authentication activity and the
platform upon which Americans will be able to communicate securely with
the Federal Government.

With the efforts described above, which are tightly integrated with
other Agency activities such as OneNASA, Freedom to Manage, and the
other President's Management Agenda focus areas, NASA will be better
structured to provide e-government services at the lowest possible cost
to citizens, while retaining flexibility in responding to changing
business needs.

**[Criterion #1 Milestones:]{.underline}**

Q3/2003 • Finalize and publish Agency Enterprise Architecture

Q4/2003 • Overlay planned agency IT investments against FEA

Q1/2004 • Begin EA review process for new FY cycle

**Criterion #2: Major IT projects are within 10% of
cost/schedule/performance objectives.**

NASA plans to define, document, and implement a process for monitoring
and evaluation of IT program performance, integrated with NASA's capital
planning and investment control activities, by June 2003.

**[Criterion #2 Milestones:]{.underline}**

Q3/2003 • Define, document, implement process for program evaluation

Q4/2003 • Establish process to assess IT program manager credentials

Q1/2004 • Lock in baseline cost, schedule and performance targets for FY
2004 Major IT Investments

**Criterion #3: IT systems have been certified and accredited, and
successfully meet OMB IT security performance measures.**

NASA is taking steps to strengthen the effectiveness of the Agency IT
Security Program and ensure that all IT systems are properly secured.
NASA recognizes the need to maintain system inventories to help track
progress made in life-cycle requirements. The NASA CIO is establishing a
reporting requirement so each Center submits their list of systems and
status in life-cycle requirements: certified, accredited, or otherwise
authorized as being properly secured. The ultimate goal is to ensure
that IT systems have been certified and accredited, and successfully
meet OMB IT security performance measures.

**[Criterion #3 Milestones:]{.underline}**

Ongoing • Demonstrate consistent progress in remediating IT security
weaknesses through POA&Ms.

Q3/2003 • Realign issue reporting accountability and guidance to improve
quality of IT security reporting

Q4/2003 • Centers submit reports in accordance with new guidance,
including updated list of systems and identification of deficiencies and
issues

• Submit FISMA report to OMB

• Inspector General verifies that there is an Agency-wide IT Security
Plan of Action and Milestone remediation process

Q1/2004 • Establishment of third party review team to examine IT
security processes and procedures

Q2/2004 • Align with Enterprise Architecture

Criterion #4: Agency contributes to, and participates in, 3 of the 4
categories of E-Gov initiatives rather than creating redundant, or
agency unique, IT projects.

NASA will continue its participation in a number of Federal e-government
initiatives, focusing on E-Grants, Geospatial One Stop, E-Training,
Integrated Acquisition Environment, E-Travel, E-Payroll, and
E-Authentication initiatives. The Agency will also begin participation
in Federal Asset Sales initiative.

The implementation of a new CPIC process within the Agency will help
NASA to ensure that its IT investments do not demonstrate redundancy
with any of the ongoing or planned Federal E-Government initiatives.

**[Criterion #4 Milestones:]{.underline}**

Q3/2003 • Finalize MOUs with initiative partners and transfer funds

Q3/2004 • Finalize plans for migration to the Department of Interior
E-Payroll solution

Q4/2004 • Complete Agency migration to Interior E-Payroll solution

**Budget and Performance Integration**

Owner: Steve Isakowitz (202- 358-2221)

**Overall:** [**√**]{.underline} **\_\_\_\_ \_\_\_\_**

**Criterion #1: Completion of PART ratings for all programs .**

All of NASA Themes will have a PART developed and reviewed by OMB by Jul
2004. NASA will begin applying the PART tool to all 18 Themes during the
FY2005 budget formulation process. OMB plans to publish 7 of these
Themes in the President's FY 2005 Budget. By Sep 03, all 18 Themes will
have been assessed, and possibly more than 7 will be published.

**[Criterion #1 Milestones:]{.underline}**

Q3/2003 • Submit PART inputs for at least 7 Themes to OMB for
publication in FY05 Budget.

Q4/2003 • Submit remaining 11 Themes to OMB for scoring.

Q2/2004 • OMB publishes at least 7 Themes in FY2005 Budget.

Q3/2004 • Submit updated PART inputs for all 18 Themes for FY 2006
Budget.

Criterion #2: Performance measures are more focused and useful to policy
makers. All measures meet the high standards of the PART.

NASA will not have reduced number of GPRA measures (goals, objectives,
indicators, etc.) by 25% or more, as compared to FY 2000. However, all
programs will have at least one efficiency measure.

Challenging to meet the high standards for measuring performance for
R&D, but will continue to make progress and achieve success. Currently
re-writing the FY2004 performance plan to improve measurability, and to
simplify the structure to reduce the number of measures tracked. We are
not in a position to commit to a goal reduction from 2000, since we grew
significantly in FY04, mostly due to adding the multi-year outcome.
Expect to reduce the measures 20% from the baseline FY04 performance
plan. Uniform efficiency measures are assigned to all development
projects for cost and schedule growth, to operations projects for system
usability and to research projects for peer review.

**[Criterion #2 Milestones:]{.underline}**

Q4/2003 • Re-write the performance objectives, outcomes, and annual
goals for FY2004 budget to improve measurability and reduce the numbers
of measures tracked.

• Incorporate uniform efficiency measures in all Themes in the 2004 and
2005 performance plans.

• Publish the updated FY2004 Performance Plan.

• Submit the FY2005 budget/performance plan to OMB for review.

Q1/2004 • Review comments received from OMB review of budget/performance
plan submittal and revise.

Q2/2004 • Update and publish final FY2005 performance plan/budget.

Q3/2004 • Submit updated PART inputs for scoring for all 18 Themes based
upon the final FY2005 budget/performance plan.

Criterion #3: Senior agency managers regularly use performance measure
information to inform management decisions

NASA's senior managers will meet at least quarterly to examine reports
that integrate financial and performance information and use it to make
decisions. Performance appraisal plans for 60% of agency positions will
link to agency mission, goals and outcomes, effectively differentiate
between various levels of performance, and provide consequences based on
performance.

The Agency Program Management Council will utilize performance measures
and financial information to evaluate the quarterly performance of all
NASA Themes and to make decisions regarding the management of agency
programs. NASA is re-structuring the Agency executive information system
to incorporate the Theme-based performance results into the dashboard.
Agency PMCs are being re-structured to incorporate performance
information into the standard review processes.

**[Criterion #3 Milestones:]{.underline}**

Q3/2003 • Draft requirements to incorporate Theme-based performance view
in Erasmus, the NASA executive information system for tracking program
and project performance.

• Collect performance data in addition to budget data as part of budget
formulation process for FY 2005 Budget.

Q4/2003 • Update the NASA Program Management Council (PMC) charter, NPG
1000.3, 6.6, to formalize the PMC role in reviewing quarterly Theme
performance, and making program decisions based upon demonstrated
performance.

• Complete delivery of the first round of Theme-based performance data
to Erasmus

• Draft the annual performance report from the Erasmus data set.

• Incorporate links to agency missions, goals and objectives into
individual appraisal plans, in accordance with the Human Capital action
plan.

• Incorporate performance data into budget presentations and
deliberations in the FY 2005 budget formulation process.

Q2/2004 • Issue improved guidance for collecting performance data with
budget data during the budget formulation process for the FY 2006
budget.

Q3/2004 • Collect performance data in addition to budget data as part of
budget formulation process for FY 2006 Budget.

**Criterion #4: The full cost of achieving performance goals is
accurately (+/- 10%) reported in the budget and performance documents
and the marginal cost of changing performance goals can be accurately
estimated (+/- 10%) .**

As of the FY04 budget submittal, the full cost of a Theme's activities
is reported with the specific objectives, long-term outcomes and annual
performance goals of the Theme. Additionally, NASA will report the full
cost of achieving the 10 strategic goals of the agency. NASA does not
budget or collect costs at the individual objective or outcome level.
All budgets, performance commitments and costs are managed at the Theme
portfolio level, which include multiple objectives and outcomes. Some
programs/projects map directly to specific performance measures, but
most typically support multiple measures. Moreover, the ability to
accurately (+/- 10%) predict the impact on performance of changes in
funding is very difficult for research and development activities.
Research activities have highly unpredictable outcomes, while most of
our non-research activities have highly complex, multi-variable
relationships. With sufficient time and funding, however, specific
marginal performance/marginal cost relationships can be modeled within
the requested accuracy.

**[Criterion #4 Milestones:]{.underline}**

Q4/2003 • Draft potential changes to the NASA accounting structure to
clearly and uniquely map all Theme work to the Agency's 10 strategic
goals.

• Update the FY 2004 performance plan to clearly align Theme content
with the Agency's 10 Strategic Goals.

**Criterion #5: Budget submissions to OMB and justifications to Congress
explain how PART ratings informed budget decisions for each program
assessed.**

39% of justifications for program resources for each agency will have
referenced the PART**.** At least 7 Themes will include references to
the PART in the Theme's "Status" section of the FY2005 integrated budget
and performance document. NASA testimony and correspondence with
Congress on FY 2005 Budget will reference the PART to justify funding
requests and legislative proposals. FY2006 budget decisions will build
on the FY05 process and routinely utilize performance measures and
financial information to evaluate the quarterly performance of all NASA
Themes and to make decisions regarding the management of agency
programs. NASA Integrated Budget and Performance Document for FY2006
will address all measures identified in the PART and reference
management decisions made based upon reported performance.

**[Criterion #5 Milestones:]{.underline}**

Q3/2003 • Draft requirements to incorporate Theme-based performance view
in Erasmus, the NASA executive information system for tracking program
and project performance.

Q4/2003 • Update the NASA Program Management Council charter, NPG
1000.3, 6.6, to formalize the PMC role in reviewing quarterly Theme
performance, and making program decisions based upon demonstrated
performance.

• Initiate tracking of management decisions based upon reported
performance data.

• Incorporate PART assessment results in the Theme status narrative for
the FY2005 budget submittals.

Q2/2004 • Incorporate performance and PART references for decisions,
legislative requests and funding proposals for the FY2005 budget.

• Incorporate direction to use PART and performance assessments as key
operating plan development tools in the Agency POP guidance.

Criterion #6: Agencies use PART evaluations to direct program
improvements and PART ratings are used consistently to justify funding
requests, management action and legislative proposals.

50% of programs that were rated Ineffective, Adequate, and Moderately
Effective in the previous year will have moved up to the next rating
level. Less than 50% of the programs assessed will have received a
Results Not Demonstrated rating.

No program that received a Results Not Demonstrated rating in 2002 will
still be rated as such in July 2004. NASA will assemble a list with at
least four examples of tangible performance improvements made in
programs stemming from PART process.

**[Criterion #6 Milestones:]{.underline}**

Q3/2003 • Submit PART inputs for at least 7 Themes to OMB for scoring.

Q4/2003 • Update the NASA Program Management Council charter, NPG
1000.3, 6.6, to formalize the PMC role in reviewing quarterly Theme
performance, and making program decisions based upon demonstrated
performance.

• Submit remaining 11 Themes to OMB for PART scoring.

• If any Theme (especially Space Station) is still rated as "Results Not
Demonstrated", develop a PMC action plan to achieve improvement prior to
the 2004 evaluation.

• Initiate tracking of management decisions based upon reported
performance data.