# Presentation: 091230

## More Straight Talk

- Brig. Gen. John J. Kelly, Jr., USAF (Ret.)
- Deputy Under Secretary for Oceans and Atmosphere
- December 1, 2005

## Overview

- Organizational Assessment
- FY06 Secretary Priorities
- Funding Trends
- FY05 Audit
- Acquisitions and Grants
- Recapitalization
- Personnel Matters

- More Straight Talk

## Organizational AssessmentPresident’s Management Agenda

- HUMAN CAPITAL	Status		Progress	 
- _Needs to demonstrate results_ in implementing a comprehensive Human Capital Plan.
- Maintaining current rating is contingent upon beginning implementation of _multi-tier performance appraisal system_ during the 1st Quarter of FY06
- COMPETITIVE SOURCING	Status		Progress	 
- NOAA developed a comprehensive schedule for feasibility. During the 4th quarter, NOAA _pushed back_ the schedule.
- FINANCIAL PERFORMANCE 	Status		Progress	 
- Although NOAA has made _significant strides_ in correcting property deficiencies, its progress rating remains yellow pending the results of the FY 2005 audit; as of the Notice of Finding and Recommendation there were no significant or material findings.
- E-GOVERNMENT	Status		Progress	 
- NOAA achieved _substantial progress_ in IT Security Certification and Accreditations (C&A).  Yellow pending DOC OIG/CIO verification of C&A packages.  NOAA raised the OMB Enterprise Architecture score from 1.4 in FY04 to 3.0, or “effective” in FY05.
- BUDGET & PERFORMANCE	Status		Progress	 
- R&D INVESTMENT 	Status		Progress	 
- The 2005 Ecosystem Research PART evaluation resulted in an adequate rating.

- HUMAN CAPITAL	Status		Progress	 
- _Needs to demonstrate results_ in implementing a comprehensive Human Capital Plan.
- Maintaining current rating is contingent upon beginning implementation of _multi-tier performance appraisal system_ during the 1st Quarter of FY06
- COMPETITIVE SOURCING	Status		Progress	 
- NOAA developed a comprehensive schedule for feasibility. During the 4th quarter, NOAA _pushed back_ the schedule.
- FINANCIAL PERFORMANCE 	Status		Progress	 
- Although NOAA has made _significant strides_ in correcting property deficiencies, its progress rating remains yellow pending the results of the FY 2005 audit; as of the Notice of Finding and Recommendation there were no significant or material findings.
- E-GOVERNMENT	Status		Progress	 
- NOAA achieved _substantial progress_ in IT Security Certification and Accreditations (C&A).  Yellow pending DOC OIG/CIO verification of C&A packages.  NOAA raised the OMB Enterprise Architecture score from 1.4 in FY04 to 3.0, or “effective” in FY05.
- BUDGET & PERFORMANCE	Status		Progress	 
- R&D INVESTMENT 	Status		Progress	 
- The 2005 Ecosystem Research PART evaluation resulted in an adequate rating.

- HUMAN CAPITAL	Status		Progress	 
- _Needs to demonstrate results_ in implementing a comprehensive Human Capital Plan.
- Maintaining current rating is contingent upon beginning implementation of _multi-tier performance appraisal system_ during the 1st Quarter of FY06
- COMPETITIVE SOURCING	Status		Progress	 
- NOAA developed a comprehensive schedule for feasibility. During the 4th quarter, NOAA _pushed back_ the schedule.
- FINANCIAL PERFORMANCE 	Status		Progress	 
- Although NOAA has made _significant strides_ in correcting property deficiencies, its progress rating remains yellow pending the results of the FY 2005 audit; as of the Notice of Finding and Recommendation there were no significant or material findings.
- E-GOVERNMENT	Status		Progress	 
- NOAA achieved _substantial progress_ in IT Security Certification and Accreditations (C&A).  Yellow pending DOC OIG/CIO verification of C&A packages.  NOAA raised the OMB Enterprise Architecture score from 1.4 in FY04 to 3.0, or “effective” in FY05.
- BUDGET & PERFORMANCE	Status		Progress	 
- R&D INVESTMENT 	Status		Progress	 
- The 2005 Ecosystem Research PART evaluation resulted in an adequate rating.

- More Straight Talk

## Organizational AssessmentSecretarial FY 2005 Priorities

- Exercise Global Leadership in Ocean and Ecosystem Science, Policy, and Management
- Provide Global Leadership in Earth Observations
- Obtaining the Best Science through the Climate Change Science Program and NOAA Climate Program
- Ensuring the Public Safety and Economic Security through Improved Weather and Water Information
- Advancing the President’s Management Agenda

- More Straight Talk

## Organizational Assessment

| Program | Year | Score | Rating |
| --- | --- | --- | --- |
| Ecosystem Research | 2005 | 67 | Adequate |
| Weather & related services | 2005 | 76 | Moderately Effective |
| NOAA Protected Areas | 2004 | 68 | Adequate |
| Climate Research | 2004 | 78 | Moderately Effective |
| Coastal Zone Management Act | 2003 | 46  | Results Not Demonstrated |
| Navigation Service | 2003 | 83 | Moderately Effective |
| Small Business Innovative Research (NOAA/NIST) | 2003 | 27 | Results Not Demonstrated |
| National Weather Service | 2002 | 89 | Effective |
| Pacific Coastal Salmon Recovery Fund | 2002 | 45 | Results Not Demonstrated |
| National Marine Fisheries Service | 2002 | 55  | Adequate |

- Performance Measures

- PART Summary

- More Straight Talk

## Organizational AssessmentFunding Summary

|  | ($ thousands) |
| --- | --- |
| Total Funding | 4,082,476 |
| Estimated Spent | 3,933,127 |
| +/- Total | 149,349 |
| % of Total Spent | 96.3 |

- NOAA estimates 96.3% of total funding was spent in FY 2005.

- More Straight Talk

## Secretarial FY2006 Priorities

- Execute NOAA Elements of the Integrated Earth Observations System
- Exercise Global Leadership in Ocean and Ecosystem Science, Policy, and Management
- Complete the Planned 2006 US Climate Change Science Program Actions
- Ensure Public Safety and Economic Security through Improved Weather and Water Information
- Advance Navigation and Transportation
- Continue Implementation of President’s Management Agenda

- More Straight Talk

## NOAA Funding Trends(Constant Dollars in Billions)

- Data Source:  DOC Summary of enacted BA

- More Straight Talk

## Fiscal Year 2005 Audit Findings and Recommendations (NFRs)

- Major Conclusions:
- Unqualified audit opinion last seven years.
- Improvement in the number of NFRs.
- Personal property, Construction Work In Progress, reimbursable agreements and grants recurring issues.

- More Straight Talk

## Fiscal Year 2005 Audit Information Technology Security

- OIG Evaluation:
- Good:  Security Plans and Risk Assessments
- Not so Good: Testing
- FY06 Activities
- More Rigorous Testing
- Authorizing Official review all IT Security Plans

- More Straight Talk

**Notes:**
Authorizing official
    Ultimate and final responsible and accountable person of security of the system
    All Authorizing officials are SES
Doing penetration testing and vulnerability assessments 
Rigorous independently conducted test (requires resources!)
Not doing penetration testing
Would you, Ms or Mr Authorizing Official, pass the test of “ ... sitting in front of a Congressional subcommittee explaining your lack of testing of a system that was exploited via a known vulernability”?
Incidents in FY2005
We detected 3863 intrusion attempts.  We suffered 214 successful intrusions (130 in one event of a virus/worm infection).  Over 90% of the 214 intrusions were the result of unpatched or misconfigured systems being online and “discovered” by hackers or viruses/worms.
Integrate IT Security into planning and culture
Apply the same planning and intellectual investments as applied to the product/service being developed or provided.

## FY2005 Acquisitions and GrantsAcquisitions Completed

- Total = 18,827Completed Acquisitions in FY05

- More Straight Talk

**Notes:**
FY05  Workload – reflects a significant increase during the later part of the fiscal year, typically when Line Offices look to AGO to obligate their remaining funds.

Future Acquisition System Capabilities/Functionality:  I.E. PLANNING
Strategic Acquisition Management (SAM) SAM is a web based acquisition planning system.  SAM allows visibility into pending acquisitions for planning budgets and acquisition workload.  SAM tracks communication and collaboration with customers and helps leverage volume purchases.  SAM provides for analytical insights into costs and spending.   SAM helps to bring transparency to the acquisition process. 

## FY2005 Acquisitions and GrantsGrants Workload

- More Straight Talk

**Notes:**
FY05  Workload – reflects a significant increase during the later part of the fiscal year, typically when Line Offices look to AGO to obligate their remaining funds.

Future Acquisition System Capabilities/Functionality:  I.E. PLANNING
Strategic Acquisition Management (SAM) SAM is a web based acquisition planning system.  SAM allows visibility into pending acquisitions for planning budgets and acquisition workload.  SAM tracks communication and collaboration with customers and helps leverage volume purchases.  SAM provides for analytical insights into costs and spending.   SAM helps to bring transparency to the acquisition process. 

##    Personnel MattersPerformance Appraisals

| SES Ratings |  2005 * | 2004 | 2003 | 2002 |
| --- | --- | --- | --- | --- |
| Outstanding | 49% | 51% | 85% | 86% |
| Commendable | 43% | 35% | 13% | 12% |
| Fully Successful |  8% | 14% | 2% | 2% |

| ST/SL Ratings |  2005 * | 2004 | 2003 | 2002 |
| --- | --- | --- | --- | --- |
| Outstanding | 70% | 72% | 65% | 69% |
| Commendable | 15% | 7% | 21% | 15% |
| Eligible (DEMO) | 15% | 14% | 14% | 15% |
| Not Eligible (DEMO) | 0% | 0% | 0% | 0% |
| Fully Successful | 0% | 7% | 0% | 0% |

- * Proposed

- More Straight Talk

## Personnel Matters

| Executive Pay Rules | Agency Appraisal System |  |
| --- | --- | --- |
|  | Not Certified | Certified |
| Cap on base pay | $149,200 | $162,100 |
| Cap on pay, bonuses & awards | $180,100 | $208,100 |

| Cap Impact
Number within NOAA at or above Executive Level III |  |  |
| --- | --- | --- |
|  | 2005 | 2006 * |
| # of employees | 40  | 60 |

- * Proposed

- More Straight Talk

## Personnel MattersFive Level Performance Management System

- Component of the PMA— Human Capital Component
- Many DOC Organizations using the system.  Exceptions are NOAA, Census, EDA and Office of IG
- DOC-wide Oct. 1, 2006

- Timetable for Implementation:
- 11/05 – 03/06:  union briefings, negotiations
- 04/06 – 08/06:  training
- 09/30/06:  closeout of two-level system
- Challenges
- Employee Acceptance
- Impact and Implementation Negotiations
- Training
- Development of Measures
- Consistency

- More Straight Talk