The Department of Commerce

Annual Performance Plan

Fiscal Year 2001

(Revised)

William M. Daley

Secretary

Robert L. Mallett

Deputy Secretary

Secretary’s Foreword

The past seven years have witnessed a remarkable economic expansion -- now the longest in our Nation’s history.

This expansion has resulted in the lowest unemployment levels in 30 years, the creation of hundreds of thousands

of new, high-paying jobs, and the phenomenal growth of our Nation’s high technology firms. During the same

period, our way of conducting business has been undergoing a major transformation, with the increasing use of the

Internet and electronic commerce as the most visible and widely acknowledged hallmarks of this shift.

These achievements are intertwined with our Nation’s productivity growth. Huge productivity gains have freed

economic resources for other uses, accelerated the development and exploitation of new technologies and, in turn,

spurred further productivity gains. As a result, our Nation’s net worth has soared, increasing numbers of our

citizenry have achieved economic security, and we are faced with the prospect of budget surpluses as far into the

future as one may confidently predict.

The Department of Commerce is continuing to foster innovation and prosperity. We are promoting electronic

commerce and pursuing steps to close the digital divide so that all of our citizens, businesses, schools, and

communities may enjoy their share of our economic good fortune. We are taking special steps to help our

under-privileged citizenry, including initiatives to strengthen Historically Black Colleges and Universities, Hispanic

Serving Institutions, and Tribal Colleges and Universities; to provide resources to communities harmed by plant

closures and abrupt economic dislocations; to sustain the economic contributions of our oceans and rivers; to open

markets abroad; and to produce sound demographic and economic data that help business make wise decisions.

Our efforts build from a common cornerstone -- manage for results, improve our use of resources, and respond to

our country’s evolving needs. As Secretary and as a manager, I believe that each of our programs must justify

itself every day -- for without defensible performance, we can not fulfill our public trust.

This document, our third Annual Performance Plan, presents our operational plans for FY 2001 and was developed

in concert with our FY 2001 budget request to Congress. In this plan, we discuss what we will do with the

resources that we are asking to be entrusted to us. As a Department, we believe our Annual Performance Plan

provides the basis for Congress and all Americans to assess our performance. I take great pride in presenting this

plan as our commitment to America.

William M. Daley

Secretary of Commerce
FY 2001 Annual Performance Plan 1

Introduction

This document is the third Annual Performance Plan prepared by the Department of Commerce as required by the

Government Performance and Results Act (GPRA). It reflects continued progress in refining the Department’s

response to the challenges of moving to results-oriented performance management as a practical reality in the

fulfillment of the Department’s mission to serve the American people.

The Department’s first Annual Performance Plan (FY 1999) proved to be a difficult challenge for a department with

such a diverse range of responsibilities and programs. Like other departments and agencies mandated to comply

with GPRA, the Department of Commerce received valuable constructive criticism of that first Performance Plan

from Congress, the General Accounting Office, and many other stakeholders.

The Department’s second Annual Performance Plan (FY 2000) reflected a commitment by Commerce to respond to

constructive criticisms of the prior year Plan as well to incorporate the best ideas and practices in performance

management that were being developed within the entire public administration professional community. As a

consequence, the Department’s focus and commitment produced a gratifying result. The Department of

Commerce’s FY 2000 Annual Performance Plan received the highest score of any department or agency in the

review undertaken by the House of Representatives.

This year’s Plan again represents a dedicated commitment by the Department of Commerce to continue the

refinement and improvement of our response to GPRA requirements. Specifically, Commerce has focused its

attention on the following areas of improvement in this document:

• Increased specificity of performance goals, measures and targets where necessary;

• Improved presentation of budget data regarding budgetary resources associated with performance goals;

• Expanded discussion of coordination of crosscutting efforts;

• Elaboration of the linkages between strategies and resources with the achievement of annual goals and

performance targets;

• Presentation of mitigation strategies for the effects of identified external factors; and

• Description of efforts to verify and validate performance data and to assess the implications of known

performance data limitations.

Following the Executive Summary, the FY 2001 priorities and initiatives of the Department of Commerce will be

described in summary form. Details of these priorities and initiatives may be found in the FY 2001 President’s

Budget document and the Department’s Budget in Brief. After the Priorities and Initiatives section of the Plan,

bureau by bureau presentations will set forth all of the Performance Goals and measures for the Department of

Commerce for FY 2001. Finally, significant management challenges for the Department of Commerce in FY 2001

will be reviewed. The Appendices provide additional information for reference.

Executive Summary

Executive Summary
2 FY 2001 Annual Performance Plan

 Executive Summary

The Department of Commerce’s Service to America

Mission Statement

The Department of Commerce promotes job creation and improved living standards for

all Americans through economic growth, technological competitiveness and sustainable

development.

Organization

The Department of Commerce touches Americans’ lives every day. We make possible the weather reports that are

heard every morning; we facilitate the technology that is used in the workplace and in the home; we develop

statistics that are used by both the public and private sectors in making important policy and business decisions;

and we support the environmental and economic health of American communities.

The Department of Commerce provides leadership to the Nation in civilian technology, trade promotion, economic

development, sustainable development, and economic analysis. These programs serve our country’s businesses,

communities, and families, and we are dedicated to making Commerce programs and services as effective as

possible.

New challenges, however, demand new responses. In agencies throughout the Department, technological innovation is spurred by modernization programs that will probe deeper into the ocean, higher into the sky and bring world

markets closer together in the years ahead.

A product of the industrial revolution which propelled the United States into the 20th century, the Department of

Commerce is at the forefront of the technological revolution in electronic commerce ushering the 21st century. The

Department of Commerce will help make the United States the continuing leader in the world marketplace.
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FY 2001 Annual Performance Plan 3

Organizational Structure

The Department’s mission is carried out by nine major agencies depicted in the following organization chart:

In the spirit of Commerce being the digital department, more detailed information about the Department’s organization, programs and budget can be found conveniently at http://www.doc.gov.

Information Administration

National Telecommunications &

Office of Technology Policy

Information Service

National Technical

Standards and Technology

National Institute of

Technology Administration

Patent and Trademark Office

Atmospheric Administration

National Oceanic and 

Agency

Minority Business Development

Bureau of Export Administration

International Trade Administration

Bureau of Economic Analysis

Bureau of the Census

Administration

Economics and Statistics

Economic Development Administration

Office of the Inspector General

Office of the Secretary

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_.._ 

-

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4 FY 2001 Annual Performance Plan

 Executive Summary

The Department of Commerce undertakes its strategic planning and goal setting within the framework of the

Government Performance and Results Act (GPRA). With the publication of the first Annual Program Performance

Report in March 2000, the Department will have completed the first full cycle of GPRA-mandated activities involving

the Strategic Plan, the Annual Performance Plan and the Annual Program Performance Report. The next Commerce

Strategic Plan will be submitted to Congress in September 2000 and it will replace the first Strategic Plan (FY 1997-

2002) that was issued in September 1997.

Although the Department’s performance goals set forth in the FY 2001 Annual Performance Plan are sound, wellconceived commitments to advance Commerce’s service to America, the longer-term framework of strategic goals

is going through a transition that will culminate in the revised Strategic Plan later this year.

The emerging new strategic goals for the Department of Commerce are in three areas related to the core Departmental mission of economic growth. Each will be summarized briefly in terms of the planning context of the early 21st

century. Detailed objectives and strategies based upon these strategic goals will appear in the revised Strategic

Plan later this year after extensive review and consultation with Commerce stakeholders.

Strategic Goal: Expand Economic Growth, Trade and Prosperity

This goal focuses on the traditional Commerce efforts of promoting domestic and foreign commerce with particular

attention to the dynamics of the global marketplace taking place at the beginning of the 21st century. By February

2000, the American economy will have experienced the longest period of economic expansion in the Nation’s

history. The challenge of sustaining this remarkable expansion will be balanced with the need to increase the

prosperity of all Americans regardless of their geographic location or ethnic origin.

Strategic Goal: Stimulate Innovation for American Competitiveness

Among experts on the future trends of the economy, there is an emerging consensus that the major driver of economic expansion in the 21st century will be the acceleration of technological change. The Chairman of the Federal

Reserve Board estimates that approximately 70 percent of the current economic expansion is the result of technological advances. Nearly half of that has been spawned by information technology advances. Nurturing and channeling technological change in the economy is a primary Department of Commerce responsibility, and the challenge for

the Department will be to mount a comprehensive campaign to use technological advances to increase American

competitiveness in the global marketplace. The opportunities for the information industries and electronic commerce

are staggering.

Strategic Goal: Advance Sustainable Economic Development

Like accelerating technological change, the natural environment has been identified as a driver for economic change

in the 21st century. Unlike accelerating technological change, factors involving the natural environment may increasingly have negative or cost implications for the economy. While the late 20th century experienced a revolutionary

public awakening to the need to protect nature from pollution and despoilation of modern society, it has become

apparent that society must increasingly learn to protect itself from the natural environment. Traditional pollution

control and conservation strategies must be increasingly joined with parallel efforts to reduce social and economic

costs of hazards from the natural environment such as floods, droughts and hurricanes. To the world of the 21st

century, sustainable economic development will require society to learn new ways to balance and manage its

reciprocal relationship with the natural environment: what society does to nature and what nature does to society.

The Department of Commerce is uniquely positioned for leadership in this endeavor.

Our Goals
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FY 2001 Annual Performance Plan 5

Highlights of the FY 2001 Annual Performance Plan (APP)

The FY 2001 APP includes the Clinton-Gore Administration’s and Secretary William M. Daley’s priorities and

initiatives. The following priorities and initiatives serve as guideposts to gauge the performance of Commerce’s

most critical programs.

• Moving Our Economy Into the 21st Century by Accelerating the Transition to Electronic Commerce

• Ensuring All of America Benefits From Our Prosperity

• Building a New Consensus on Globalization

• Protecting Our Environment While Growing Our Economy by Strengthening Our Natural Resources Infrastructure

• Establishing Safeguards Against Unconventional National Security Threats

• Addressing Critical Construction Needs

• Enhancing the U.S. Statistical Infrastructure

• Assisting Public Broadcasting Digital Conversion

Linking the key programs of individual Commerce bureaus to the priorities and initiatives reinforces the Department’s

core mission and creates new opportunities for increased performance. This is especially important during periods

of increasingly rapid and frequent change in our society, in our economy, and in science and technology—placing

greater demand on the vital resources the Department manages. Each Commerce bureau is well-positioned to help

improve the quality of life, whether that entails producing more timely and accurate weather forecasts or weighing

commercial and national security interests in decisions about exporting new technologies.

Encompassing the Department’s many disparate functions, the priorities and initiatives represent significant actions

by the Secretary and his leadership team to move the Department in the direction of a more integrated organization.

The FY 2001 APP, developed pursuant to the Government Performance and Results Act and integrated with the

budget process, is the product of efforts to establish a more effective strategic planning and performance management process within the Department. The Commerce strategic planning and performance management approach,

which recognizes unique organizational cultures and the stakeholders of each of the Commerce bureaus, will drive a

Commerce-wide effort to continue to improve the integration of activities and enhance performance and accountability.

Commerce Bureaus, the Department’s Strategic Goals, and the Priorities and

Initiatives

In support of the Department’s goal to expand economic growth, the Economic Development Administration’s

(EDA) goals are to create jobs and private enterprise in distressed communities and to build local capacity to

achieve economic growth. Since its establishment under the Public Works Act of 1965, EDA has confronted and

responded to many challenges to the industrial and commercial growth of distressed communities in the United

States.

Today, rapidly changing production, trade patterns, and technology threaten certain communities. EDA’s highly

flexible programs for public infrastructure, planning, technical assistance, and research allow the Department of

Commerce to respond strategically to the specific conditions of disenfranchised areas in order to expand industrial

and commercial growth. EDA works through a nationwide network now comprising 320 Economic Development

Districts (EDDs), 64 Indian tribes, 69 University Centers, and 12 Trade Adjustment Assistance Centers (TAACs).

EDA focuses on supporting local planning and long-term partnerships with State and local organizations that can

assist distressed communities with strategic planning and investment activities.

For example, EDA helps mitigate the impact of natural disasters on communities by helping them to move businesses from disaster-prone areas to safe locations. EDA is able to go into communities struck by natural disaster

and begin assistance immediately rather than waiting until emergency supplemental funds are approved.
6 FY 2001 Annual Performance Plan

 Executive Summary

By maintaining a reliable Federal statistical system that readily monitors and measures economic activity and social

trends, the Economics and Statistics Administration (ESA) helps National, State, and local governments and

other institutions make smart decisions that can improve the American standard of living. Our Nation’s ability to

respond to domestic and international developments that affect our economic vitality depends on a world-class

information base and the cutting-edge technology that makes it accessible. In this capacity, ESA oversees the

Census Bureau and the Bureau of Economic Analysis (BEA). ESA also operates STAT-USA, a user-friendly

“one-stop shop” for the dissemination of business, economic, and trade statistics.

As the prime gatherer and purveyor of data on our population and our economy through surveys, censuses, and

special studies, the Census Bureau is committed to accuracy, timeliness, relevancy, and efficient service. The

Bureau’s strategy to improve data quality and timeliness includes the use of state-of-the-art digital capture technology, simplifying questionnaires, increasing the follow-up rate on nonrespondents, and working in partnership with the

U.S. Postal Service to improve address files. In FY 2001, electronic commerce will also ease the reporting burden

for businesses, contributing to the statistics available for planning purposes.

The Secretary intends Census 2000 to be the most complete and accurate decennial census ever—executed at the

lowest possible cost to the taxpayer. Supporting a successful Census 2000 is one of the elements of the

Secretary’s management strategy for the Department.

As the Nation’s accountant, BEA combines and transforms extensive data from government and private sources to

produce a consistent and comprehensive picture of economic activity, featuring the key summary measure known as

gross domestic product. In addition, BEA’s estimates of regional product and income are used in the allocation of

Federal grants to states.

In the area of the statistical infrastructure, BEA will work to resolve measurement discrepancies due to changes in

the economy and incomplete or obsolete data by expanding and updating the coverage of key areas, including

rapidly evolving industries.

In an increasingly global economy, the role of exports in sustaining a robust economic infrastructure continues to

grow. Exports support over eleven million American jobs, and in the past several years, generated over two million

new jobs. In recent years, export-related jobs grew about six times faster than total employment, paying wages

fifteen percent higher than the average U.S. wage. The competitive nature of the global marketplace raises the bar of

challenges for the International Trade Administration (ITA) in leveling the playing field for U.S. businesses abroad

and helping remove tariff and nontariff barriers to trade. Toward this end, ITA will carry out the Secretary’s Broadening Trade initiative by breaking into new and underserved international markets, while expanding the export support of

small- and medium-sized businesses. ITA’s goals are to enforce U.S. trade laws and agreements to promote free

and fair trade, increase the number of small business exporters, and open key emerging markets, especially Africa,

Latin America, and Asia.

Much of the success of the Commerce trade initiatives rests on the expansion of the U.S. and Foreign Commercial

Service’s (US&FCS) outreach efforts to small- and medium-sized enterprises (SMEs) to help them unleash their

export capacity. The U.S. Export Assistance Centers (USEACs) perform the valuable service of educating and

assisting SMEs and helping export-ready firms in need of technical assistance. Electronic commerce and the

Internet are other vehicles to increase export opportunities for SMEs.

Implementing an aggressive trade compliance program to aid U.S. companies in achieving the full benefits of trade

agreements is another key component of ITA’s strategy. The Trade Compliance Center (TCC) monitors approximately

250 trade agreements and helps identify possible violations. By compiling data on access problems and outcomes,

ITA can measure the dollar value of opening world markets to U.S. exports as a result of reducing or eliminating

trade barriers. ITA also improves the competitiveness of domestic firms by enforcing U.S. trade laws and agreements

regarding subsidies, unfair pricing, and other harmful foreign trade practices.

The Bureau of Export Administration (BXA) seeks to advance U.S. National security, foreign policy, and economic interests by regulating exports of critical goods and technologies that could be used to damage those inter-
Executive Summary

FY 2001 Annual Performance Plan 7

ests (while furthering the growth of legitimate U.S. exports to maintain our economic leadership); by enforcing

compliance with those regulations; by cooperating with like-minded nations to obtain global support for this effort; by

assisting nations that are key exporters or transit points for sensitive good and technologies to strengthen their own

transit and export controls; and by monitoring the U.S. defense industrial base to ensure it remains strong.

In housing the Critical Infrastructure Assurance Office (CIAO), established by Presidential Decision Directive 63, BXA

also helps safeguard the interconnected systems that are necessary to the operations of our government and

economy.

BXA is working to bring U.S. export controls in line with evolving U.S. national security and foreign policy objectives.

Restructuring export controls for the 21st century will result in a relatively shorter dual-use commodity control list.

Streamlining the application system for controlled items will help prevent illegal transactions and expedite the

license processing cycle for U.S. companies. In addition, by rendering prompt decisions, BXA will strengthen the

international competitive position of U.S. firms. BXA is also developing means to strengthen its law enforcement

program and its efficiency as a regulatory agency. BXA takes a preventive approach to deter high-risk transactions.

To reduce the number of potential license requests for unacceptable products, BXA will expand educational outreach

to its stakeholders through visits, conferences, and seminars to heighten their understanding of export controls and,

as a result, strengthen industry compliance. It will also conduct a greater number of on-site visits to end-users of

selected goods to ensure that products are being employed in the authorized manner.

BXA will also increase the number of bilateral and multilateral nonproliferation and export control technical, executive, and educational exchanges it conducts with the governments of nations where there is a significant risk of

export or transit of sensitive goods and technologies but which do not have fully competent export control systems.

BXA will work to the extent of its resources to assist these nations to attain competence in all five functional areas of

effective export control systems: legal and regulatory frameworks, licensing procedures and control lists, enforcement mechanisms, industry-government relations, and systems administration and automation.

Finally, BXA will facilitate the transition of defense industries to productive peacetime activities without compromising our technological leadership. At the same time, BXA will assist in promoting the continued viability of high-tech

firms through the development of innovative product lines and new commercial avenues for former defense products.

Minorities account for 28 percent of the American population, but only 11 percent of business owners. Because of

this fact, the central aim of the Minority Business Development Agency (MBDA) is to increase the participation of

minorities in our Nation’s commerce.

MBDA also advances the establishment and expansion of minority-owned businesses by identifying new domestic

and foreign business opportunities. MBDA informs minority-owned businesses of these opportunities and assists

these firms in taking advantage of such opportunities. This includes programs to increase access to the marketplace and capital through a number of vehicles. For example, MBDA provides management and technical assistance to over 8,000 firms annually via an electronic matching system over the Internet, Business Development

Centers, and other resources. It promotes minority business lending through arrangements with financial institutions

and mobilization of both private and public sector resources. MBDA also works to secure a fair share of representation for minority-owned businesses in all government-sponsored initiatives that promote U.S. business interests,

including international trade missions.

The functions of the National Oceanic and Atmospheric Administration (NOAA) encompass many Commerce

priorities. NOAA has the lead role in improving the means for detecting oncoming natural events with greater

precision in order to save lives and property and minimize business disruption. In skillfully managing and protecting

our Nation’s assets and resources, NOAA plays a key role in the Natural Resources initiative by overseeing programs that expand knowledge and understanding of our land, water, and air. Protecting coastal habitats from loss

and degradation, researching the effects of climate changes on the oceans and atmosphere, and promoting navigation are all objectives of this effort.

Programs within NOAA’s National Marine Fisheries Service (NMFS) are designed to help build a sustainable fisheries environment. Improving current fish stocks and restoring the long-term employment and growth potential of
8 FY 2001 Annual Performance Plan

 Executive Summary

maritime industries are essential to our Nation’s wealth and quality of life. The Natural Resources initiative also

includes recovering protected species, preventing extinction, and maintaining healthy species through conservation

programs that involve monitoring and research of species and the factors that affect their mortality. The success of

all of this effort will be more attainable by integrating activities across five of NOAA’s line and program offices.

NOAA also contributes to America’s preparation for natural disasters by providing weather warnings and forecasts to

the general public through the National Weather Service (NWS), conducting climate and weather research, and

making historical and environmental data available for the public and private sectors. NOAA’s products and services

include short-term warning services and forecasts to increase lead times; newer and better data sets on seasonal-tointerannual time scales to produce climate forecasts to predict El Niño events with more accuracy; and improved

decadal and centennial climate change assessments, especially for greenhouse warning, ozone layer depletion, and

air quality.

Finally, NOAA’s success in describing and predicting the changes in the earth’s environment, and conserving our

resources to ensure sustainable economic opportunity relies on cutting-edge research to develop new technologies,

improve operations, and supply the scientific basis for managing natural resources and solving environmental

problems.

In administering laws that grant and protect patents and trademarks, and in advising the Commerce Secretary, the

President, and the Administration on intellectual property rights, the Patent and Trademark Office (PTO) plays a

central role in America’s economic growth.

Through its stewardship of our Nation’s intellectual property, PTO influences investment, development and marketing

strategies, and the financial viability of American businesses. PTO plays a central role in increasing the competitiveness of our technology-based economy by providing more effective service delivery as product life cycles become

shorter. Timely issuance of patents and trademark registrations make all the difference for firms operating in fastpaced markets. Toward this end, PTO is committed to customer-oriented and results-driven performance through

reduced average processing time of patents and trademarks, the automation of various patent and trademark

activities, and the establishment of a fee schedule aligned with cost.

Through its provision of technical assistance and its expertise on trade-related property rights issues, PTO helps

support the Secretary’s trade initiatives. PTO contributes to the protection and expansion of intellectual property

rights systems worldwide, vital to the development of the commercial infrastructure of developing economies and to

promoting trade, through education and training on laws, regulations, and enforcement. It conducts international

outreach and partners with other nations to help support these objectives.

Finally, improving communications, as part of a customer service focus, is integral to the goal of promoting awareness of and providing effective access to patent and trademark information. This relies on an advanced information

dissemination base able to respond to users in a timely fashion, make information available, and transform the

majority of processes into electronic operations. It includes the increased use of the Internet to request the status of

applications and place orders, and to answer customer inquiries via e-mail.

PTO’s program operations are revenue-generating and PTO is a self-sustaining agency that relies on external

customer satisfaction. Similar to a private sector business, it conducts a number of transactions with the public

directly and must become efficient enough to respond to private sector needs and a potentially growing market for its

services. With this in mind, Congress approved legislation to transform PTO into a performance-based organization which will free PTO from certain federal restrictions and provide a clear mission, fiscal accountability, and

outcome measurements.

The Technology Administration (TA) works with U.S. industry to maximize technology’s contribution to U.S.

economic growth. TA develops and disseminates measurement techniques, reference data, test methods, standards, and other types of infrastructural technologies and services required by U.S. industry to compete in the 21st

century. TA also fosters the development, diffusion, and adoption of new technologies; assists small manufacturers;

and promotes a business environment conducive to innovation.
Executive Summary

FY 2001 Annual Performance Plan 9

TA includes the Office of the Under Secretary for Technology, which provides policy guidance to the Secretary of

Commerce and the Technology Administration’s component agencies and serves as an advocate for innovation and

industrial competitiveness within and outside of government. Pursuant to this role, the Under Secretary also oversees the Office of Technology Policy (OTP) and Office of Space Commercialization (OSC). TA also includes

the National Institute of Standards and Technology (NIST), which works with U.S. industry to address technology needs, delivering broadly useful results shared with U.S. industry to address technology needs, delivering

broadly useful results shared among companies, industries, and consumers. In addition to its core measurement,

testing, and standards functions, NIST also conducts three key extramural programs: the Advanced Technology

Program, to stimulate the development of high risk, broad impact technologies by U.S. firms; the Manufacturing

Extension Partnership, to help smaller businesses adopt new manufacturing and management technologies; and

the Baldrige National Quality Program, to help U.S. business and other organizations improve the performance and

quality of their operations by providing clear standards and benchmarks of quality.

TA plays a key role in several of the Secretary’s initiatives and priorities for FY 2001: accelerating the transition to

electronic commerce; expanding Commerce’s partnerships with Minority Serving Institutions; establishing safeguards against unconventional national security threats; and addressing critical construction and base program

needs.

The National Telecommunications and Information Administration (NTIA) maximizes the use of telecommunications and information resources in ways that create jobs, augment U.S. competitiveness, and raise the standard

of living. NTIA’s functions, increasingly complex in nature, include an important role in opening new markets and

broadening trade.

To promote greater awareness, understanding, and access to technology, NTIA will accelerate the development and

diffusion of public sector and nonprofit applications of Next Generation Internet (NGI) technologies and services. NGI

is the Administration’s multi-agency Federal research and development program to advance networking technologies. NTIA provides matching grants to non-profit organizations to build quality technological and information

systems in areas that benefit communities, such as in health care, education, and public safety. It also assists

public telecommunications facilities in converting to digital broadcasting.

NTIA manages the portion of the radio spectrum that is allocated for Federal use. It ensures that radio spectrum

assignments provide the greatest public benefit, by planning and implementing policies that affect both private and

public sectors; meeting the requirements of Federal agencies; and advancing the development of spectrally efficient

technologies.

Finally, as part of the Administration’s Critical Infrastructure Protection program, NTIA has assumed the lead agency

role for the information and communications (I&C) sector. It is focused on protecting critical infrastructure by

devising a plan that assesses the vulnerabilities of the I&C sector and identifying protection strategies.
10 FY 2001 Annual Performance Plan

 Executive Summary

The Department of Commerce prepared its first Strategic Plan as required by GPRA in September 1997 and its first

APP in February 1998. The three Commerce strategic themes expounded in the Commerce Strategic Plan represented the first effort with GPRA to develop “integrating themes” intended to recognize and foster crosscutting efforts

in the areas of economic infrastructure, science and technology, and Commerce’s management of the Nation’s

resources and assets.

The revised Commerce Strategic Plan (to be submitted to Congress by September 30, 2000) is refining the

Department’s focus on strategic goals targeting its core economic mission for America. The full expression of the

Department’s new strategic goals will be reflected in the FY 2002 Annual Performance Plan in February, 2001.

The strategic planning and performance management process has set in motion more active consideration and

exploration of potential crosscutting and partnership arrangements among the bureaus of the Department. While

this process is incremental, the FY 2001 priorities and initiatives further advance the commitment to conduct

effective Commerce crosscutting efforts in a more integrated fashion.

Commerce Strategic Plan Link to the Commerce Annual Performance Plan

Parts II and III of the Commerce Annual Performance Plan summarize the activities, performance, and resources for

(a) each of the priorities and initiatives; and (b) each of the nine Commerce bureaus. They provide detailed information about the activities proposed for each of the crosscutting priorities and initiatives and for each of the bureaus.

They also focus on the more “outcome-oriented” goals that the bureaus are trying to achieve. Included are brief

descriptions of why these activities are important to the American public, how each bureau is doing in terms of

performance trends, and the resources required to conduct these activities.

After the more detailed description of the Priorities and Initiatives, the bureau-by-bureau approach is organized in a

similar manner and contains the following information for each bureau:

Mission Statement

Goal and Performance Measure Information

Rationale

Performance Targets

Data Validation and Verification

Source

Frequency

Data Storage

Verification

Means and Strategies

Crosscutting Activities

External Factors

Resource Requirements

Funding

Skills Requirements/FTEs

IT Requirements

Part IV summarizes major management challenges facing the Department, and the planned responses to each of

them.

Finally, we have provided Appendices presenting background information about Commerce performance goals and

measures from FY 1999, FY 2000 and FY 2001. Other information to supplement the material in the main text of

this Annual Performance Plan is provided for reference.

Brief Description of Parts II, III and IV
FY 2001 Annual Performance Plan 11

Priorities and Initiatives

Given the Department’s mission, the following priorities and initiatives have been identified by the Secretary to focus

the Department’s energies on the particular opportunities to serve America better in FY 2001:

Each of these Priorities and Initiatives is summarized in the following section.

An Action Agenda for FY 2001

Priorities and Initiatives

Priorities & Initiatives Request ($ millions)

Moving Our Economy Into the 21st Century by Accelerating the Transition to

Electronic Commerce $175.4 M

Ensuring All of America Benefits from Our Prosperity $91.7 M

Building a New Consensus on Globalization $69.6 M

Protecting Our Environment While Growing Our Economy by Strengthening

Our Natural Resources Infrastructure $379.0 M

Establishing Safeguards Against Unconventional National Security Threats $88.8 M

Addressing Critical Construction Needs $37.0 M

Enhancing the U.S. Statistical Infrastructure $15.3 M

Assisting Public Broadcasting Digital Conversion $83.5 M

TOTAL $940.3 M
12 FY 2001 Annual Performance Plan

 Priorities and Initiatives

Rationale and Benefits

The Department has released two reports that show the opportunities and challenges of the New Economy. While

our Emerging Digital Economy II report showed that expansion in the information technology industry accounted for

more than one-third of our Nation’s economic growth since 1995, our Falling Through the Net III report provided

evidence that the gap between the technological “haves” and “have-nots” continues to grow for many parts of our

society. This $175.4 million e-commerce initiative focuses on ensuring that information technologies remain an

engine of economic growth and that we take more steps to close the digital divide in America.

Context

This initiative has six components:

Helping More People Benefit from E-commerce

• $50 million for the Home Internet Access Initiative. The Administration proposes $50 million for a new grants

program that would provide low-income individuals and families with the connections, training, and support

necessary for full participation in today’s increasingly online society. The Administration will work with

private industry, local organizations, and academia to develop a program description that will be announced

in the near term.

• Triple the Technology Opportunity Program to Help Close Digital Divide. To further close the gap between

information “haves” and “have nots,” the Department proposes to triple our investment in the Technology

Opportunity Program (TOP) -- formerly known as the Telecommunications Information Infrastructure

Assistance Program (TIIAP). The $29.5 million increase in funding for this successful program will support

additional community-based projects that demonstrate innovative uses of e-commerce tools and technologies that benefit the public. This increase will also allow a more equitable distribution of funds to rural and

low-income, urban areas across the country.

Helping More Places Benefit from E-commerce

• New Broadband Deployment Initiative. While high-speed Internet access is coming to more and more

American communities, too many areas still do not have it, meaning fewer jobs as businesses relocate to

areas with Broadband. The Department’s request of $23 million for EDA public works grants will encourage

the deployment of increased bandwidth in distressed urban and rural communities. This program will

provide States and local areas funds to plan for and install high-speed Internet access infrastructure to help

attract new business and job opportunities in our Nation’s under-served communities. NTIA’s $2.0 million

request will allow for research to find a widely acceptable and affordable method to integrate voice telephone and Broadband real-time services with additional Internet services. Research will help reduce the

geographical and economic barriers to Broadband availability, making its application more widespread,

especially in rural and disadvantaged areas.

Helping More Businesses Benefit from E-commerce

• Initiative to Help Manufacturing Firms with E-Commerce. This $19 million initiative will help empower small and

medium-sized manufacturers with the information and technical assistance they need to become e-businesses.

With more and more large manufacturers using the Internet for supply chains, small and medium-sized

manufacturers who are not connected will find themselves falling behind in the years ahead. The International

Trade Administration’s (ITA) Trade Development and US&FCS request a $10 million export initiative targeted at

small and medium sized manufacturers which would focus on the new business framework arising from

e-commerce, close the gap between manufacturer export potential and actual performance, and deploy a next

generation trade promotion strategy made possible by e-commerce. Building on the successful cooperative

Y2K outreach model, the National Institute of Standards and Technology (NIST) will request $9 million to work

with the Small Business Administration (SBA) and the United States Department of Agriculture (USDA) to

distribute 600,000 e-commerce tool kits to small and medium sized businesses.

Moving Our Economy Into the 21st Century by Accelerating the Transition

to Electronic Commerce
FY 2001 Annual Performance Plan 13

Priorities and Initiatives

• Initiative to Develop Interoperable E-Commerce Standards. The Department requests $4 million to increase

the utility of e-commerce applications by making them more interoperable and $1 million to provide measurements and standards to support advanced wireless technologies. Many applications designed to make

e-commerce more reliable, efficient, and secure simply do not work together; indeed, more than 100

e-commerce-related standards are currently under development, which will potentially fragment the

e-commerce marketplace. These funds will allow the Department to work with industry to develop

interoperable e-commerce standards, test methods, and procedures to enhance security and reliability at all

levels.

Helping More Businesses Grow Through E-Commerce

• The Department’s budget includes $0.5 million for the Minority Business Development Agency (MBDA) to

increase its e-commerce matching opportunities for minority enterprises, and $1.6 million for the International Trade Administration to expand its virtual trade missions to enable small and medium-sized enterprises that adopt e-commerce business models to increase exports to global markets.

Measuring the Digital Economy

• Initiative to Include E-Commerce Measurements in Economic Statistics. Decisions are only as good as

the information on which they are based. Traditional categories and measures used within our national

economic statistics are inconsistent and/or incompatible with e-commerce. Thus, unless its results are

captured in the national statistical measures, we face the possibility of seriously underestimating productivity and growth in our economy. The importance of accuracy in these data cannot be overstated; for

example, the Federal Reserve uses them to help determine whether to raise or lower interest rates, and

businesses use the information every day to make production decisions. Therefore, the Department

proposes $13 million for the Department’s Economics and Statistics Administration (ESA), including the

Census Bureau, to ensure that e-commerce is appropriately measured and that the measurements are

incorporated into national statistical measures. We also want to continue funding ($0.4 million) for the often

cited report, “Falling Through the Net,” which gauges the extent to which all Americans have access to the

“information age.”

Using E-Commerce Tools to Administer the Department into the 21st Century

• With $5.8 million, we will build a modern electronic infrastructure for the Department to fundamentally

improve the delivery of services to Commerce customers. And, with $25 million, we will increase efficiency

and improve Patent and Trademark Office (PTO) processes with e-commerce tools.

Moving Our Economy Into the 21st Century by Accelerating the Transition

to Electronic Commerce

Bureau Request ($ millions)

EDA $23.0

ESA $3.0

ITA $11.6

GA $5.8

MBDA $0.5

CENSUS $10.0

PTO $25.1

NIST $14.0

NTIA $81.9

Total $175.4

Components
14 FY 2001 Annual Performance Plan

 Priorities and Initiatives

Measures and Targets Summary

Measure Target

NTIA

Increase Internet accessibility and use 55% of households

EDA

Percent of public works and economic development facilities in areas of highest

distress 30%

ITA

New to export firms (small business) 36,949

NIST

Develop e-commerce Jump-Start kits, assessment tools and roadmap Complete Jump-Start

kits within first year

Conduct e-commerce training and distribute Jump-Start and Adoption kits

-- Distribute 600,000

toolkits within first

year

-- Train 600 IT field

personnel per year

Moving Our Economy Into the 21st Century by Accelerating the Transition

to Electronic Commerce
FY 2001 Annual Performance Plan 15

Priorities and Initiatives

Rationale and Benefits

The Department’s budget includes $28 million to help build the capacity of America’s minority serving institutions,

which will provide new opportunities for people to learn skills in science and engineering. The Department’s budget

also includes $53.7 million to help spur economic development on tribal lands and $10 million for the Mississippi

Delta region.

Context

Expanding Commerce’s Partnerships with Minority Serving Institutions -- The Administration is requesting

$28 million in new funding to be channeled through NOAA ($17 million) and NIST ($11 million) to address

well-known and long-standing problems of developing partnerships with Minority Serving Institutions (MSIs). This

will enable us to support the President’s Executive Orders to provide assistance to the Nation’s Historically Black

Colleges and Universities (HBCUs), Hispanic Serving Institutions, and Tribal Colleges and Universities. The

Department’s twin goals in support of these Executive Orders are to expand scientific capacity at these institutions

and to attract more minorities to critical science fields.

Statistics about minority graduates in science and engineering say one thing loud and clear: there are simply not

enough minority scientists and engineers to meet the demand of the American economy in the 21st century. The

Department of Commerce is approximately 75% science and technology-based in terms of programs, and

under-representation of minorities in these programs is severe, long-standing, and well-documented. According to

the Census Bureau, Blacks and Hispanics comprise some 12.8 percent and 11.6 percent of the population, respectively. However, according to the National Science Foundation, they account for only 2 percent of the scientific

workforce. MSIs are the only realistic way to increase minority representation in these fields because most of the

“best and the brightest” minority students matriculate at MSIs. The statistics bear this out. For example, 40% of

African-American students receive undergraduate degrees at HBCUs. But 85% of black physicians, 80% of black

Federal judges, 75% of black lawyers, 75% of black military officers, and 75% of black Americans who hold

doctoral degrees all received undergraduate degrees at HBCUs.

This is also a problem for the economy at large and requires a visible and substantial response. But, there are no

simple or quick solutions; we must invest in a sustained and strategic way. MSIs serve minority students very well.

MSIs graduate half of the minorities going into science or engineering. Any reasonable strategy to increase

minority graduates in science or engineering must include a central role for MSIs. With these conclusions in mind,

we must face the reality that few MSIs today have the capacity to offer state-of-the-art science and engineering

studies, particularly at the graduate degree level.

In NOAA, we are proposing to create three Cooperative Science Centers in oceanic, atmospheric, and environmental fields to form true partnerships with MSIs to strengthen their ability to participate in Federal grant and

contract research in a competitive way. In addition, NOAA will establish a Junior year scholarship/fellowship program to support training and eventual employment of MSI students and to implement a graduate scientist program to

bring graduates into NOAA. One of the most novel components of NOAA’s MSI effort is the Environmental Entrepreneurship Program. This component will allow NOAA to build the capacity for minority individuals as well as

minority-owned businesses to participate in contract work in environmental projects such as natural resources

restoration.

NIST also would invest in MSI partnerships using the Center of Excellence model to improve access to

state-of-the-art facilities and to create opportunities for minorities to produce technical publications and patents.

Through the Commerce Student Fellowship Program and the NIST/NRC Postdoctoral Associateship Program, NIST

will also offer an additional 49 fellowships over five years to undergraduate, graduate, doctoral, and post-doctoral

students. Finally, NIST will establish a collaborative metrology training center in at least one MSI and will develop

two new NIST metrology training courses.

Ensuring All of America Benefits from Our Prosperity
16 FY 2001 Annual Performance Plan

 Priorities and Initiatives

Promoting Native American Economic Development -- While the country continues to thrive during the longest

and strongest economic expansions in its history, Native Americans are one segment of the Nation’s population that

has been consistently left behind. This $53.7 million program will promote self-sufficient economic development

activities like tourism and will provide the capital to encourage more collaboration between the Native communities

and adjacent non-Native jurisdictions on economic development matters central to both communities.

Among the most distressed in the country, Native American communities suffer from a poverty rate twice the

National average, unemployment rates eight times higher than the National average, and a median income less than

two-thirds the National average. On July 7, 1999, President Clinton demonstrated his concern about this situation

by visiting the Pine Ridge Reservation, home of the Oglala Sioux nation. This was the first visit by a sitting American President to a reservation since Franklin Roosevelt.

In keeping with the Administration’s “New Markets” initiative, the Department of Commerce’s Economic Development Administration (EDA) will concentrate $49.2 million on the provision of both basic and advanced infrastructure

needs. EDA will give priority to projects that emphasize the attraction of outside capital to, and the location of basic

commercial business operations in, Native American communities. In addition, workforce development, including

distance learning facilities, will be given high priority. Such facilities are urgently needed for the attraction of new

businesses to these communities as well as for producing trained and knowledge-based Native American employees for nearby privately-owned, off-reservation businesses.

The FY 2001 request also includes $4.5 million for ITA to use in the following ways. First, under the Department’s

Global Diversity Initiative, ITA will engage in a rigorous outreach program to identify Native-American owned firms

with core attributes for successful international sales (management skills, sound products, and internal resources),

and to help provide them with sufficient capability to become successful exporters. Native American businesses are

a constituency which traditionally under-participates in the American economy, and this sector has not prospered

as much as the American economy as a whole. Second, the Native American culture and products have a continued fascination within the mainstream culture in this country, and certainly in many foreign nations. Increasing the

amount of tourism which focuses on Native American culture and products will bring needed jobs and income into

native American communities, which are among the most economically depressed in the Nation.

Promoting Lower Mississippi Delta Region Economic Development -- Commerce requests $10 million to join a

multi-agency effort that underscores the Administration’s commitment to revitalize this area of the country. As a

result of the longest peacetime economic expansion in American history, some areas of the delta region have

improved, but much work remains to be done. As part of this Federal effort, Commerce will work to revitalize local

economies by financing public works investments. We will build on our newly established EDA-US&FCS office in

East Arkansas to help Delta businesses export more of their goods and services.

Ensuring All of America Benefits from Our Prosperity
FY 2001 Annual Performance Plan 17

Priorities and Initiatives

Initiative Bureau Request ($ millions)

MSI

NOAA $17.0

NIST $11.0

The Cultural Heritage Community

Development Export Initiative

EDA $49.2

ITA $4.5

Promoting Lower Mississippi Delta

Region Economic Development EDA $10.0

TOTAL $91.7

Ensuring All of America Benefits from Our Prosperity

Measure Target

NOAA

# of students graduated with advanced degrees from the Collaborative Science

Centers funded at MSIs, AEOS

17 students graduated

in FY 2001

# of minority students and staff supported in the Graduate Scientist Program,

Student Fellowship Program, the Environmental Entrepreneurship Program and

through staff / faculty exchanges

102 students and staff

supported in these

programs during FY 2001

NIST

DoC Centers of Excellence - establishment of consortia with major research

 universities and MSIs 2

DoC Student Fellowship Program -fellowships awarded

27

Collaborative Metrology training -establishment of a metrology training center in an

MSI 1

NIST/NRC Postdoctoral Fellowship Program - additional postdoctoctoral fellows

hired annually 22

EDA

Amount of private sector dollars If EDA provides $12.5M in

Public Works grants in FY

2001, EDA expects that

the private sector will

invest about $8M

Measures and Targets Summary

Components
18 FY 2001 Annual Performance Plan

 Priorities and Initiatives

Building a New Consensus on Globalization

Rationale and Benefits

This initiative would help build a new consensus and addresses the concerns that while most of the country has

benefitted strongly from the new economy there are communities that have not yet experienced all the benefits of

increased trade. This initiative promotes trade and exports, addresses the impact on many communities of changing trade patterns, strengthens enforcement of our trade laws, and would help communities get back on their feet

after a sudden and severe economic dislocation.

Context

To help build a new consensus for global trade, we are requesting $69 million. The Administration’s FY 2001 budget

provides $21.2 million for stronger enforcement of our trading laws, including -- for the very first time -- the placement

of compliance officers overseas. EDA’s Economic Adjustment grants program will double from about $35 million to

$70 million to address in part the impacts of changing trade patterns and $10 million to help communities get back

on their feet after a sudden and severe economic dislocation.

Trade Law Compliance -- To help build a new consensus for global trade, the Administration’s FY 2001 budget

provides an additional $21.2 million for stronger enforcement of our trade laws, including a substantial increase in

staff addressing Asia trade compliance issues related to China, Japan and Taiwan. And, as mentioned above, this

initiative will also provide— for the very first time— the placement of compliance officers overseas.

The size of the global marketplace, coupled with the complexity of trade law issues that America faces in seeking to

succeed within it, argues for a comprehensive approach to these issues by the Commerce Department.

In FY 2001, the Department will devote a total of $6 million on monitoring and enforcing trade agreement compliance

with China and Japan, which combine to represent about half of the trade agreement monitoring issues facing

American business. An additional $2 million will be devoted to monitoring compliance with the EU and the rest of

the world, and $1.7 million will be used to establish a Trade Law Assistance Center.

Economic or related events in other nations may result in short- or long-term violations to trade agreements which

warrant special expertise to address. In FY 2001, we will use $6 million to establish two types of special teams: a

mobile group of compliance experts who can provide “on-the-ground” support to address compliance and market

access problems, and a resident group in countries which present long-term compliance challenges.

We face a number of surges in exports, and they warrant investigation, in order to determine if they derive from

legitimate origins, such as changes in product demand and availability, or if they are caused by acts which violate

trade agreements. To monitor these surges and to protect American business and consumers, an additional $3.7

million is required.

The growth of the WTO, the speed at which negotiations can be conducted under it, and the number of nations

participating in it, has created an increased number of negotiations which must be conducted and agreements

which must be enforced. In FY 2001, this increased workload will require an additional $1.8 million to manage.

Trade Promotion -- As one aspect of Trade Promotion, the Administration proposes to Stimulate Environmental

Exports. Increasing exports of environmental technologies is a classic win-win proposition: it helps grow our

economy, and it promotes a cleaner environment overseas, especially in countries with environmental threats, at the

same time. In addition to the $11.6 million increase for promoting exports discussed under “Moving our Economy

into the 21st Century by Accelerating the Transition to Electronic Commerce,” our request includes a $4 million

Environmental Technologies Export Initiative. ITA will work in partnership with NOAA and NIST in assisting American

firms to take advantage of a rapidly growing world market -- the global market for envirotech was about $470 billion in

1997, and is projected to reach $600 billion by 2010. Despite America’s vast experience and technology leadership

in this area, we are not realizing this market’s potential, and we currently export only 9% of the output of this sector,

proportionally far less than our competitors.
FY 2001 Annual Performance Plan 19

Priorities and Initiatives

Helping communities get back on their feet after an economic dislocation -- As the Administration continues

to build on its record of expanding American exports around the globe, it relies on the expertise at EDA to work with

communities which are adjusting to shifting international trade patterns. Under its Community Economic Adjustment program, EDA will provide $10 million in Economic Adjustment grants to enable communities to develop

long-term solutions to sudden and severe economic dislocation as a result of international trade. In addition, while

we have the strongest economy in our history, there still are communities suffering from plant closings and other

severe economic dislocations. As a result, EDA is requesting a doubling of its funding for the flexible Economic

Adjustment grants program, from $34.6 million in FY 2000 to $70 million (an increase of $35.4 million) with this FY

2001 budget. Portions of this increase will be crucial in assisting communities as they work to remain competitive in

the global marketplace.

Building a New Consensus on Globalization

Bureau Request ($ millions)

ITA $25.2

EDA $44.4

Total $69.6

Measure Target

ITA

New-to-Export firms 36,949

Increase in dollar value of Gross Exports $11,000 M

EDA

Percent of local technical assistance and economic adjustment

strategy grants awarded in areas of highest distress 20%

Certification processing time for trade impacted firms 4% decrease

Measures and Targets Summary

Components
20 FY 2001 Annual Performance Plan

Priorities and Initiatives

Protecting Our Environment While Growing Our Economy by Strengthening

Our Natural Resources Infrastructure

Rationale and Benefits

This initiative includes $379 million of new investments which would provide a vital boost to the Nation’s prosperity

and livability. The budget reflects the major priorities for Commerce’s role in the stewardship of the sustainable

development of America’s natural resources.

Context

The Department’s budget request for an additional $379 million seeks to integrate sound economic growth while

maintaining our mission of protecting and managing our ocean and coastal resources. This budget also builds on

productive partnerships with other Federal agencies to maintain and improve satellite coverage, coverage that

enables better long and short term weather and climate predictions.

This initiative proposes an additional $376 million for NOAA to build on the Administration’s strong support of

environmental issues - from building an impressive record of improving predictions for severe storms, to balancing

economics with the need to protect and sustain fish and marine mammals, to working with states to develop solid

coastal management programs. We are also requesting $3 million in grants for EDA to assist New England communities as fishery stocks in that region continue to recover.

The last century began with the establishment of the National Parks to conserve our lands. The Department starts

this new century with a budget that will expand the conservation of the oceans and coastal resources as part of the

Administration’s Lands Legacy Initiative. Commerce’s increase of $266 million for the Lands Legacy Initiative

includes increased support for the National Marine Sanctuaries and National Estuarine Research Reserves, and for

our ocean and coastal National parks. Our request also addresses the Nation’s coral reef crisis and seeks to

reverse the degradation of coral reefs by implementing priority recommendations of the U.S. Coral Reef Task

Force, including reducing the impacts of fishing on these sensitive and important habitats.

The Department’s Lands Legacy Initiative expands our work with tribes, States, communities, and the private sector

to improve protection and sustainable use of the Nation’s valuable ocean and coastal resources. Under its current

Coastal Zone Management program, Commerce is seeking to dramatically increase available funding for grants and

technical assistance available to coastal States to address the significant and costly impacts of rapid population

growth, polluted runoff, deteriorating waterfront areas, and loss of coastal habitats. Under Lands Legacy, Commerce will also establish a $100 million Coastal Impact Assistance Fund to provide coastal States currently involved

in offshore oil and gas production with additional resources needed to protect and sustainably use ocean and coastal

resources. This fund will help States and local communities develop the tools to minimize the risks from coastal

development including oil and gas activities.

Restoring the once-mighty Pacific salmon runs continues to be a priority, as does rebuilding Atlantic swordfish and

groundfish stocks on both coasts. The initiative includes a total of $100 million for its Pacific Coastal Salmon

Recovery Fund. These funds will enhance the recovery of threatened and endangered coastal salmon by sharing

the costs of the conservation actions of tribes, States, and local communities in Alaska, Washington, Oregon and

California. Our initiatives recognize that success requires creative approaches and putting a premium on working

with fishermen.

This budget also includes $60 million to continue the Administration’s commitment to honor the historic 1999 Pacific

Salmon Agreement reached with Canada. This request will provide $20 million each to capitalize a Northern and

Southern Fund. These endowment funds, administered by the Pacific Salmon Commission, will support habitat and

stock enhancement, science, and salmon management activities in both countries. The remaining $20 million will

be used to support a Vessel License Buyback program in Washington state. These investments, coupled with the

proposals for Lands Legacy, will ensure that communities from coastal California to Alaska can reap the rewards of

healthy fishery stocks.
FY 2001 Annual Performance Plan 21

Priorities and Initiatives

In addition to the increases sought for Lands Legacy and for honoring the Pacific Salmon Agreement, Commerce

is proposing increases that will enable NOAA to better manage fisheries through more and better data collection

while also conducting needed socio-economic analyses into the impacts of fishery regulation decisions. This

increase also funds more at-sea observers to monitor foreign vessels’ catch of both intended species and unwanted

bycatch like sea turtles and sea birds. We also seek to establish a program to alleviate strains on over-fished

fisheries. Our $10 million Fisheries Assistance Fund request will couple buyouts with cooperative management and

research activities, tailored to meet the needs of fishing communities that seek assistance. We are also requesting

funds to refurbish the ADVENTUROUS, a surplus Navy vessel, to enable it to conduct fishery and marine mammal

research in the Western Pacific.

Resources are requested to help stem the crisis of extinction of marine life and their habitat. The number of

species either listed by NOAA under the Endangered Species Act or under consideration for listing is growing.

NOAA is committed to preventing the extinction of at-risk marine species and restoring their habitat and ecosystems, and is requesting an increase of $12.3 million to continues its effort to protect and conserve these living

natural resources and their habitat. NOAA’s approach includes establishing greater public involvement in conservation planning, creating incentives for landowners and States to protect species and their habitat in order to prevent

the need to list, and entering into long-term conservation plans with landowners.

Finally, the request for safe navigation programs will enable NOAA to continue producing the first-class charts and

other navigational products that mariners use to safely navigate our Nation’s ports and sensitive coastal areas.

These activities will further the efforts begun as part of the Year of the Ocean Initiative to improve the safety and

efficiency of marine navigation within our Nation’s ocean and coastal waters, while protecting the environment.

Increases are requested to support the quality assurance mechanisms necessary to continue the Physical Oceanographic Real-Time Systems (PORTS), partnership of local port communities. PORTS continues to be a public

private partnership success story that benefits the public by helping to promote safe, efficient marine navigation.

The Department is also seeking funding to map the national shoreline, a third of which has never been accurately

mapped. Shoreline mapping is critical to support our increased effort to create modern, electronic navigation

charts (ENCs) and is used by States and localities to support coastal management. Finally, investing in the National Spatial Reference System will ensure the availability of the coordinate framework supporting all mapping,

surveying and Global Positioning System (GPS) activities.

NOAA is also seeking to establish a new $28 million Climate Observations and Services Initiative to provide resources critical to extending our ability to produce forecasts on a longer-time scale. This initiative will support

transitioning our current research efforts and knowledge into operational systems and products. To do this, NOAA

will address a number of key deficiencies in its observation and data management systems and will implement new

ocean observations. NOAA will develop a nationwide climate reference network over a period of three years which

will ensure NOAA’s capability to monitor changes of temperature and precipitation on a long-term and bias-free

basis. Resources will also be dedicated to develop and maintain adequate data management and dissemination

systems to assure public and private sector timely access to important environmental data sets. NOAA will develop

new forecast products which emphasize risks of high-impact weather events in the context of climate variability.

NOAA will expand operations at key remote baseline observatories which are critical to the world’s longest atmospheric time series, supplying the public and scientific community with information on the state and recovery of the

ozone layer, global carbon dioxide, and other trace gases affecting global climate. Finally, NOAA will establish and

maintain a set of core ocean observations (temperature, surface wind stress, salinity, and sea level) essential to

improving our understanding and prediction of climate variability.

The strength of our economy also depends on our ability to protect and predict the environment. The Department

will focus on new ways to protect the ocean -- and help those who depend on it for their livelihood and way of life --

as well as predict weather and climate.

The Natural Disaster Reduction Initiative (NDRI) is Commerce’s focused effort to provide and improve weather

warnings and forecasts. NOAA’s FY 2001 NDRI will maintain satellite continuity and enable NOAA to maintain and

upgrade systems we have in place to ensure that they keep pace with technological improvements. Our FY 2001

Protecting Our Environment While Growing Our Economy by Strengthening

Our Natural Resources Infrastructure
22 FY 2001 Annual Performance Plan

Priorities and Initiatives

request funds the second year of the three-year AWIPS Software Build 5.

Funds are also requested to upgrade existing major systems to avoid obsolescence. Even though NOAA is just

completing the modernization program, the technology employed originated in the 1980s. We need to continually

update these systems (NEXRAD, ASOS, AWIPS, and the supercomputers) to avoid wholesale replacements in the

future.

The increase to maintain satellite continuity is needed to support the next series of geostationary (GOES N-Q) and

both series of polar-orbiting satellites, NOAA K-N’ and NPOESS.

This budget will make sure that we provide decision-makers with the best possible science on global climate

change.

EDA will provide public works and planning grants to assist New England communities as fishery stocks in the

region continue to recover (3.0 million).

Protecting Our Environment While Growing Our Economy by Strengthening

Our Natural Resources Infrastructure

Measures and Targets Summary

Measure Target

Increase lead time (minutes) and accuracy (%) for severe

weather warnings for tornadoes 13 minutes

70% accuracy

Percent critical area survey backlog reduced

(43,000 SNM backlog) cumulative reduction 29%

By 2005, 25% fewer overfished fisheries.

Currently, 98 of 286 stocks are overfished;

this number would be reduced to 74.

By 2001, 1% fewer stocks

of fish will be overfished

# of acres of coastal habitats restored

(cumulative) 70,000 by 2001

Percent of local technical assistance and economic adjustment

strategy grants awarded to areas of highest distress 25%

Bureau Request ($ millions)

NOAA $376.0

EDA $3.0

Total $379.0

Components
FY 2001 Annual Performance Plan 23

Priorities and Initiatives

Establishing Safeguards Against Unconventional National Security

Threats

Rationale and Benefits

To address threats to the country’s national security and electronic infrastructure, the Commerce Department seeks

an increase of $89 million. Included in this amount are funds for Critical Infrastructure Protection Program and

Counter-terrorism. Combating terrorism is an essential part of the President’s overall defense strategy.

Context

Combating Terrorism and Weapons of Mass Destruction

To continue to combat terrorism and weapons of mass destruction, BXA requests $11.2 million. This amount will be

used to fully implement the Chemical Weapons Convention, provide staff for the international technical assistance

program, and strengthen export controls related to nuclear weapons and dual-use technology. The increase will

also support implementation of valid Cox report findings including re-authorizing the Export Authorization Act (EAA),

obtaining Department-level approvals for exports which are of high national security significance, streamlining

licensing procedures, and strengthening U.S. leadership on high performance computer export policies. In addition, the Department is also requesting $1.6 million to address security concerns and responsibilities as outlined by

current Executive Orders, Departmental regulations, and Inspector General recommendations.

Critical Infrastructure Protection (CIP) Program

In May 1998, the President signed Presidential Decision Directives (PDD) 62 and 63, establishing the interagency

Critical Infrastructure Protection (CIP) Program. The Commerce Department was directly assigned three functions

of CIP: the Critical Infrastructure Assurance Office, lead agency responsibility for the Information and Communications Sector and research and development responsibilities related to critical infrastructure. This program is an

essential part of the President’s overall defense strategy.

NIST is requesting $60.0 million for CIP, including $50 million to establish and operate an Institute for Information

Infrastructure Protection (IIIP) to support research and development of new tools to protect the Nation’s critical

information infrastructures by working directly with industry, universities and government through the provision of

research grants. The Institute will also assist with the coordination of agency-specific CIP research and development efforts. $5.0 million is requested for NIST to establish a team of computer security experts to help Federal

agencies protect their information systems in accordance with PDD #63. An additional $5.0 million is included for

research and development of new measurements and standards that identify and remedy vulnerabilities to natural

and intentional disruptions. Other areas with Critical Infrastructure Protection budget increase requests include,

BXA, $3.5 million; NOAA, $4.0 million; PTO, $2.2 million; and NTIA, $6.3 million.
24 FY 2001 Annual Performance Plan

Priorities and Initiatives

Establishing Safeguards Against Unconventional National Security

Threats

Bureau Request ($ millions)

Combatting Terrorism and Weapons of Mass Destruction

Departmental Management $1.6

BXA $11.2

 Subtotal $12.8

Critical Infrastructure Protection

BXA $3.5

NOAA $4.0

PTO $2.2

NIST $60.0

NTIA $6.3

 Subtotal $76.0

Total $88.8

Components
FY 2001 Annual Performance Plan 25

Priorities and Initiatives

Measures and Targets Summary

Measure Target

BXA

Restructure export controls for the 21st century

# of high risk transactions deterred 512

# of licensing decisions 12,000

Maintain a fully effective law enforcement program

# of enforcement outreach visits 900

# of investigations completed 1,300

PTO

Provide PTO's business areas with secure communications networkwide and reduce the threat of hacking and exploitation of captured

electronic data TBD

Reliable encryption and authentication services which will ultimately

reduce patent cycle time TBD

NTIA

Identification of threats to the Nation's infrastructure TBD

Enhancement of the U.S. War Plans Emergency database maintained

by the Office of Spectrum Management TBD

Assistance to Federal, State and local governments in protection of

their NS/EP communications TBD

Vulnerability awareness and education material for publication,

speeches presentations and demonstrations TBD

NIST

Activity metrics related to establishing the IIIP - operations plan, staffing,

oversight and advisory boards, etc. Successful establishment of the IIIP

Achieve Critical Infrastructure protection R&D project milestonesa and

disseminate findings in the areas of cryptography, security

management, best security practices, and security of supervisory control

systems.

Implement Public Key Infrastructure

prototype; publish one model security

management protection profile per

year; publish one technical guideline

and one technical report per year on

best security practices; expand

BACnet protocol; establish enhanced

Virtual Cybernetic Building testbed;

develop test methods to measure the

effectiveness of manufacturing

supervisory control system security

features

Successfully complete key activities for Critical Infrastructure Protection

Expert Review Team

Consult with Federal agencies on

sensitive and critical systems; review

agency CIP plans for key systems;

conduct vulnerability assessments of

Federal agency IT systems; assist in

reviewing implemented security

measures; issue best practice

technical guidelines; technical reports,

and other guidance; conduct computer

intrusion drills; provide technical

support for emergency security fixes.

Establishing Safeguards Against Unconventional National Security

Threats
26 FY 2001 Annual Performance Plan

Priorities and Initiatives

Rationale and Benefits

This $37 million initiative addresses critical construction needs at the Census Bureau, NOAA, and NIST.

Context

To help resolve the Census Bureau’s environmental and structural problems at its Suitland, Maryland facilities, we

are requesting $3.2 million for bureau-specific space planning requirements in support of the GSA-sponsored

renovation scheduled to begin in 2003.

While not included in the $37 million initiative, we are requesting advanced appropriations of $18.2 million, beginning in FY 2002, to address NOAA’s environmental and structural problems at its Suitland, Maryland facilities.

These facilities suffer from bacterial water contamination and asbestos, as well as outdated, almost 60-year old,

building designs. Since May of this year, and for the foreseeable future, bottled water has been provided at the

Suitland facilities because of the presence of fecal coliform bacteria and heavy metals. These funds will provide for

above-standard-cost items and move-in expenses at NOAA’s satellite operations facility that GSA will construct on

this campus, scheduled to begin in 2002.

In addition to Suitland, we are requesting: $4.6 million for the reinforcement of the bluffs under our fisheries

science center in La Jolla, California, $3 million to alleviate the overcrowding and obsolescence of the facility in

Norman, Oklahoma, $11 million for NOAA’s marine sanctuaries and estuaries reserves, $1 million for the Juneau,

Alaska laboratory, and $9.5 million for NWS’s Weather Forecast Offices and other construction needs. NIST is

requesting $4.5 million to design a new primary electrical service at the NIST Boulder, Colorado facility and to

address the backlog of safety, capacity, maintenance, and major repair projects at both the Gaithersburg, Maryland

and Boulder facilities.

Components

Bureau Request ($ millions)

CENSUS $3.2

NOAA $29.3

NIST $4.5

Total $37.0

Measures and Targets Summary

Addressing Critical Construction Needs

Measure Target

CENSUS TBD

NOAA TBD

NIST TBD
FY 2001 Annual Performance Plan 27

Priorities and Initiatives

Rationale and Benefits

Commerce is a premier statistical agency. This FY 2001 initiative, totaling $15.3 million, will improve the information

crucial to decision-making by businesses and policy makers. We must guarantee that our Federal statistics can

meet the demands policy makers have for data that accurately reflects the “real world.”

Context

In FY 2001, there are four statistical areas on which the Department will be focusing. The first area is the completion of an accurate Decennial Census. This is an integral part of the Nation’s Statistical Infrastructure. The second

area is e-commerce as described earlier. This initiative focuses on the other key demographic and economic data

that decision makers must have. The third area is the American Community survey where an increase of $3.4 million in FY 2001 will eventually allow for the elimination of the Decennial Census long-form. The fourth area is a $6.1

million request to measure the economic well-being of the Nation.

Other statistical improvements include:

• Demographic Survey Sample Redesign ($3.7 million) -- Demographic survey samples improves the quality,

accuracy and confidence in major Federal socioeconomic indicators by updating the methodology for

selecting survey samples and incorporating the results of the Decennial Census into major household

surveys.

• Improved Export Data -- Census will improve the capture of low level (less than $2,500) undeclared, exports

($1.4 million) and ITA will improve trade statistics at low levels of geographic detail (State, local and regional

levels) ($0.7 million)

Components

Bureau Request ($ millions)

CENSUS $14.6

ITA $0.7

Total $15.3

Enhancing the U.S. Statistical Infrastructure
28 FY 2001 Annual Performance Plan

Priorities and Initiatives

Measures and Targets Summary

Measure Target

CENSUS

Meet all principal economic indicator published release dates on time 100% on time

Percent of household surveys attaining 100 percent of reliability specifications 100%

Percent of household surveys with initial response rates greater than 90 percent 100%

Reduce time between data collection and data release for selected household surveys 5% annual decrease

ITA

Number of countries monitored 87

Reports analyzing impact on U.S. industry of changes in U.S. barriers 4,000

Enhancing the U.S. Statistical Infrastructure
FY 2001 Annual Performance Plan 29

Priorities and Initiatives

Rationale and Benefits

This initiative is part of the President’s program to ensure that the benefits of public broadcasting continue and that

the stations can meet the FY 2003 digital conversion target.

Context

Congressional mandates require Public Broadcasting Stations to convert from analog to digital transmission by

2003. NTIA is requesting an $84 million increase for competitive grants to assist public broadcasting stations

transitioning from analog to digital transmission. Special consideration will be given to stations in underserved

markets and to demonstration projects that address the special needs and service barriers encountered in the

underserved markets.

Components

Measures and Targets Summary

Bureau Request ($ millions)

NTIA $83.5

Total $83.5

Measure Target

Assist in maintaining and extending the services of public broadcasting and

telecommunications facilities, including digital broadcasting applications in the public

interest

TBD

Number of digital conversion projects awarded TBD

Percentage of public stations that have digital transmission capability TBD

Universal public television service will continue in rural and disadvantaged communities TBD

Assisting Public Broadcasting Digital Conversion
30 FY 2001 Annual Performance Plan

Priorities and Initiatives
FY 2001 Annual Performance Plan 31

Economic Development Administration

Brief Background

EDA helps distressed communities overcome barriers that inhibit the growth of their local economies and their ability

to effectively compete in regional, national, and global markets. EDA builds local capacity in the form of strategic

investment planning which helps local communities plan for new technologies, job creation opportunities, and

enterprise development.

Rapidly changing technology and trade patterns create new challenges and opportunities for local and regional

economies. The economic prosperity generated by these changes have not been evenly distributed throughout the

nation, or within regions. While some communities have benefited from the digital economy, others have been left

behind. A term coined the “Digital Divide” by the Commerce Department reflects the manifestations of the “have and

have-nots” in the digital economy. Just as proximity to the railroads was critical for the industrial economy, the

technology era is one of access to bandwidth, telecommunication networks, modern infrastructure, and advanced

research and training facilities.

Many communities lack the resources to keep pace with change, or to prepare for the technologies driving world

commerce. These impoverished communities do not have the resources to create jobs, nor the ability to respond

to innovations in technology and emerging world markets. These communities must first establish a foundation for

growth in the digital economy through strategic investments in physical, financial, and human capital.

EDA supports local, state and regional planning partnerships that target assistance to economically distressed

areas. These partnerships help communities plan and implement strategies for achieving and sustaining longterm economic growth. EDA’s focus on locally developed strategies allows EDA to make strategic investments in

modern infrastructure and local capital markets. EDA responds to local priorities and invests in projects that can

stabilize local economies and create new opportunities for employment and private enterprise in distressed

communities. EDA’s flexible approach encourages communities to develop innovative strategies and to form

strategic partnerships that will increase access to new technologies and emerging world markets.

Department-Wide

E-Commerce - EDA funds innovative proposals that support local, State and regional efforts to close the digital

divide. EDA’s highly flexible, streamlined programs can bring communities into the mainstream of the information

age. EDA will assist local, State and regional planning partners in acquiring information technology and the

training they will need to serve distressed communities and position them to compete globally in the new digital

economy.

Mission Statement

To create a climate conducive to the development of private enterprise in America’s

distressed communities.

Priorities

Economic Development Administration
32 FY 2001 Annual Performance Plan

Economic Development Administration

Native American Economic Development Assistance - This initiative supports planning and investment for sustainable

development programs that are needed to provide permanent jobs and income for Native American Communities,

including Alaskan Native Villages. EDA has had a long history of funding critically needed infrastructure and

economic development facilities in Native American communities.

Assisting Distressed Communities - EDA helps economically distressed communities participate in growth generated by advanced technologies and emerging world markets. EDA programs create opportunities for better jobs

and new business enterprise in communities experiencing substantial unemployment, low per capita income, or

other special needs such as major job losses due to plant closings or military/energy facility closures, disasters, or

the depletion of natural resources.

Bureau

Planning Partnerships - EDA fosters involvement with local, State and national entities to strengthen and expand

regional networks of development organizations. Strategic partnerships provide critical support for coordinating

federal, State, and local initiatives in economically distressed rural and urban communities.

Encouraging Innovation - EDA encourages communities to become more innovative in their approach to economic

development. This initiative focuses on the use of technology, environment, and regional economic development

for economic programs for distressed communities. EDA will recognize innovative approaches through awards for

excellence in economic development.

Leveraging Investment - EDA plays a critical role in helping bridge the financing gap in distressed communities,

and its investments serve as the seed funds for local development throughout the country. Often EDA’s investments are what attracts and leverages capital from the private sector. EDA will aggressively act as a catalyst for

private sector investment by funding a limited, innovative financing initiative within the defense adjustment program. It is based on the completed study Defense Adjustment Infrastructure Bonds: Credit Enhancement Grants

Make Affordable Capital Available. Distressed communities usually lack adequate resoources for planning and

infrastructure development and albeit private sector investment. EDA plays a critical role in helping these communities attract and leverage capital investment from the private sector.
FY 2001 Annual Performance Plan 33

Economic Development Administration

Office of the Assistant

Secretary

Office of the

Chief Counsel

Office of Finance

and Administration

Office of Program

Operations

Office of

Congressional Liaison

& Program Research

& Evaluation

Accounting

Information Systems

and Administration

Liquidation

Budget

Compliance Review

Planning & Development

Assistance

Public Works

Research & National

Technical Assitance

Operations Review and

Analysis

Communications &

Congressional Liaison

Regional Offices

U.S. Department of Commerce

Economic Development Administration

Economic Adjustment

Organizational Structure
34 FY 2001 Annual Performance Plan

Economic Development Administration

Highlights of EDA FY2001 Annual Performance Plan

FY 2001 Proposed E-Commerce Initiative:

In FY 2001, as a part of a Departmental E-commerce Initiative, EDA will help expedite the deployment of advanced

broadband Internet access to communities in areas of high distress. EDA’s foremost objective for this initiative is to

help distressed communities compete effectively in a global technology-dominated marketplace.

FY 2001 Proposed Indian Economic Development Program Initiative:

For FY 2001, EDA will implement an Indian Economic Development Program Initiative (IEDP). EDA will use existing

program tools to initiate a set-aside for Native American applicants to fund a variety of economic development

projects, including telecommunication projects. The proposed IEDP Initiative is designed specifically to close

infrastructure gaps and encourage sustainable and diversified economies in Native American communities.

A recent EDA-funded study, Assessment of Technology Infrastructure in Native Communities (June 1999), identified a considerable gap in both basic infrastructure such as roads, utilities, and housing, and more advanced

technology infrastructure such as Internet access, cellular phone service, and cable television compared to nonNative communities. The study further points out, that a weak economic base for Native communities has made it

difficult to support infrastructure investment, which in turn, undermines these communities’ ability to implement

successful economic development initiatives. Please see Appendix 5 for further information regarding this initiative.

FY 2001 Proposed Community Economic Adjustment Initiative:

Consistent with the Administration’s support of efforts to open international markets to US firms and to promote

free trade, EDA will continue to assist those communities that experience a disproportionate share of the negative

impacts associated with trade opening agreements or changing trade patterns. This funding will be used to

support a variety of projects including preparation of economic development strategies, infrastructure improvements to remove impediments to economic development, and capitalization of revolving loan funds to help create

new firms or expand existing ones.

FY 2001 Proposed Mississippi Delta Initiative:

In 1998, Congress recognized the Mississippi Delta region with the creation of the Lower Mississippi Delta

Commision (LMDC). The geographical area is composed of 219 counties and parishes in the States of Arkansas,

Illinois, Kentucky, Louisiana, Mississippi, Missouri and Tennessee. Despite the economic progress throughout the

United States, the Delta region lags behind the rest of the country in employment, income, housing, transportation,

access to capital, education levels, health care and economic development.

The Mississippi Delta: Beyond 2000 report is the result of Department of Transportation organized effort involving ten

Federal agencies pledging to work together to coordinate government efforts in the Delta. The report presents four

key themes: 1) revitalizing the regional economy; 2) improving the quality of life; 3) protecting and enhancing the

region’s natural resources, environment and tourism; and 4) developing and implementing regional planning. The

requested funds will be used to provide construction, revolving loan fund, and technical assistance grants. Please

see Appendix 5 for further information regarding this initiative.
FY 2001 Annual Performance Plan 35

Economic Development Administration

Targets and Performance Summary

This performance goal is supported by budget activities for Planning and Technical Assistance as authorized by PWEDA under Section

203 and 206 (District and other planning grants); Section 207 and 208 (university centers, local technical assistance, and national

technical assistance, research and evaluation grants); and Section 209 (strategic planning grants); and by the Trade Act of 1974, as

amended.

Performance Goal 2: Build community capacity to achieve and sustain economic growth

Long-term Outcome Measures FY 00 Target FY 01 Target

Percent of sub-state jurisdiction members actively participating in the Economic

Development District Program 75% 75%

Percent of Economic Development Districts and Indian tribes' grantees whose

Comprehensive Economic Development Strategy (CEDS) is on time and acceptable 75% 75%

Percent of University Center clients rating technical assistance received as a 7 on a

1 to 10 scale (10 is best) 75% 75%

Percent of Trade Adjustment Assistance Center clients rating technical assistance

received as a 7 on a 1 to 10 scale (10 is best) 75% 75%

Long-Term Outcome Measure FY 99 Actual FY 00 Target FY 01 Target

Number of research and national technical assistance results

published or presented nationally each year 6 annually 5 annually 5 annually

Interim & Process Measures FY 99 Actual FY 00 Target FY 01 Target

Percent of local technical assistance and economic adjustment

strategy grants awarded in areas of highest distress 31% 25% 25%

Certification processing time for trade impacted firms 18% decrease 4% decrease 4% decrease

This performance goal is supported by budget activities for Public Works and Capital Access as authorized by PWEDA under Section

201 (public works and development facilities), and Section 209 (economic adjustment infrastructure and revolving loan grants).

Performance Goal 1: Support job creation and enterprise in distressed communities

Long-term Outcome

Measures FY 99 Funds FY 00 Funds FY 01 Funds

Number of permanent jobs created or

retained in distressed communities as

a result of EDA grants

5,698 by FY 2002

28,492 by FY 2005

56,983 by FY 2008

5,651 by FY 2003

28,254 by FY 2006

56,509 by FY 2009

5,902 by FY 2004

29,508 by FY 2007

59,016 by FY 2010

Private sector dollars invested in

distressed communities as a result of

EDA grants

$0.21 billion by FY 2002

$1.04 billion by FY 2005

$2.08 billion by FY 2008

$0.20 billion by FY 2003

$1.02 billion by FY 2006

$2.04 billion by FY 2009

$0.20 billion by FY 2004

$0.99 billion by FY 2007

$1.99 billion by FY 2010

Interim & Process Measures FY 99 Actual FY 00 Target FY 01 Target

State and local dollars committed to

EDA-funded projects $383 Million $197 million $211 million

Percent of public works and economic

adjustment facilities and revolving loan

fund grants awarded in areas of

highest distress

36% 30% 30%

Application processing time for public

works and economic adjustment

construction, and revolving loan fund

grants

38% decrease 6% decrease 6% decrease
36 FY 2001 Annual Performance Plan

Economic Development Administration

Total Bureau Dollars: $437 M

Total Bureau FTEs: 265

Skill Summary1: Economic development, planning, legal, engineering, technology, environmental (includes all EDA FTE – direct, reimbursables2

)

Total Bureau IT Dollars: $1.96 M

IT Requirements: Upgrade database management systems, develop new grantee performance

management system3

1 Total FTE is a combination of direct EDA human resources dedicated to the programs under each goal and non-direct human resources

allocated to each goal. The allocation of indirect human is based on the share of direct human resources dedicated to each goal.

2 FY 1999 is based on actual obligations; FY 2000 is based on the appropriated program dollars and salaries and expenses; FY 2001 is

based on the Presidential request.

3 IT dollars for each goal are derived from total FTE allocations for each goal.

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Support job creation and private

enterprise in economically distressed

communities

$313 M $312 M $353 M

Build community capacity to achieve and

sustain economic growth $78 M $74 M $84 M

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Support job creation and private

enterprise in economically distressed

communities

171 174 174

Build community capacity to achieve

and sustain economic growth 92 90 91

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Support job creation and private

enterprise in economically distressed

communities

 $1.7 M $1.2 M $1.27 M

Build community capacity to achieve

and sustain economic growth $1.0 M $0.7 M $0.69 M

Resource Requirements Summary
FY 2001 Annual Performance Plan 37

Economic Development Administration

Data Validation and Verification:

Target: 59,016 by FY 2010

Data collection: Grantee performance reports

Frequency: Three, six and nine years after grant

award

Data storage: EDA database under development

Verification: To test performance projections, provide

training and improve reporting, EDA conducts pilot

reviews of past investments. The EDA GPRA Pilot I

and II Reports (November 1999) review the

performance of 58 construction projects completed in

FY 1993 and 44 revolving loan funds approved in FY

1993. The findings are consistent with the two prior

evaluations, which include in-depth examinations of

construction and revolving loan fund projects funded

by EDA, and their impacts on the local economy.

Projections for FY2001 performance are based on

direct jobs only. Additional discounting of job

projections is the result of external factors, producing

conservative numbers (projections) for direct

permanent jobs and private dollar invested. For

further information regarding outcome projections and

GPRA pilots, please see Appendix 5.

Rationale for Performance Goal

EDA helps communities respond to severe changes in local economic conditions resulting from a wide range of

factors, including the loss of major employers, defense downsizing and base closures, trade impacts, and natural

disasters. Strategic investments in public infrastructure and local capital markets can help distressed communities

create and retain jobs, stabilize and diversify local economies, and generate future growth. EDA public works and

economic adjustment grants, including revolving loan funds, implement comprehensive economic development

strategies to address problems of substantial unemployment, low per capita income, or other special needs as

authorized by the Public Works and Economic Development Act of 1965 (PWEDA). Long-term program objectives

are to stabilize local economies, stimulate permanent employment and private investment, and improve incomes in

economically distressed areas. EDA long-term investments are expected to generate results that increase over

time, and can be measured over a period of years. Recent evaluations conducted by Rutgers University indicate that

EDA public works and revolving loan fund projects (RLF) generate significant results within three years of grant

approval, these results typically double over the next six years. Based on these findings, for construction and RLF

long-term outcome measures, EDA requires grantees to report results at three, six and nine years following the

grant award. Performance projections for direct permanent jobs created or retained, and for private dollars invested,

are developed for each reporting interval, based on quantifiable program evaluations conducted by Rutgers University,

et al. These include: Public Works Program Performance Evaluation (May 1997) and the Defense Adjustment

Program Performance Evaluation (November 1997).

Measure 1.a:

Number of permanent jobs created or retained in distressed communities as a result of EDA

grants

Performance Goal 1:

Support Job Creation and Private Enterprise in Economically

Distressed Communities

5,902

29,508

59,016

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2004 2007 2010

Number

Target
38 FY 2001 Annual Performance Plan

Economic Development Administration

Data Validation and Verification:

Target: $1.99 Billion by FY 2010

Data collection: Grantee performance

reports

Frequency: Three, six, and nine years after

grant award

Data storage: EDA database under development

Verification: To test performance projections,

provide training and improve reporting, EDA

conducts pilot reviews of past investments.

The EDA GPRA Pilot I and II Reports (November 1999) review the performance of 58

construction projects completed in FY 1993

and 44 revolving loan funds approved in FY

1993. The findings are consistent with the two

prior evaluations. The findings include in-depth

examinations of construction and revolving

loan fund projects funded by EDA, and their

impacts on the local economy. Projections for

FY2001 performance are based on direct jobs

only. Additional discounting for external

factors produce conservative numbers

(projections) for direct permanent jobs and

private dollar invested. For further information

regarding outcome projections and GPRA

pilots, please see Appendix 5.

Data Validation and Verification:

Target: $211 million for FY 2001

Data collection: Grantee applications and

progress reports

Frequency: At the time of grant award and

project completion

Baseline: FY1998 grants

Data storage: EDA database

Verification: EDA verifies non-federal funds

committed to projects prior to disbursement of

grant funds.

Comment: New EDA legislation requires

increased State and local matching funds.

Measure 1.b: Private sector dollars invested in EDA projects

Measure 1.c: State and local dollars committed to EDA-funded projects

Performance Goal 1:

Create Jobs and Private Enterprise in Economically Distressed

Communities

0.20

0.99

1.99

0.00

0.50

1.00

1.50

2.00

2.50

2004 2007 2010

Dollars (in billions)

Target

383

199 197 211

0.00

100.00

200.00

300.00

400.00

500.00

1999 2000 2001

Dollars (in millions)

Actual Target

~ 

17 I I 

I• □ 
FY 2001 Annual Performance Plan 39

Economic Development Administration

Measure 1.d: Percent of public works and economic adjustment facilities and revolving loan

fund grants awarded in areas of highest distress

Data Validation and Verification:

Target: 30% of FY2001 grants

Data collection: Project locations entered by

Regions

Frequency: Ongoing

Baseline: FY1998 grants

Data storage: EDA database

Verification: EDA samples projects periodically to

ensure accurate project location codes. Statistical

data is based on Bureau of Labor Statistics current

24-month unemployment data and most current

Bureau of Economic Analysis per capita income

data. EDA will sample projects, periodically, to

ensure accurate reporting.

Comment: The highest distress criteria, for a 70%

grant rate, are defined by new EDA regulations.

These criterua are reserved for projects located in

areas where the 24-month unemployment rate is at

least 180% of national average, or the per capita

income is not more than 60% of national average.

Projects located in disaster areas and Indian tribes

are also included in definition.

Measure 1.e: Application processing time for public works and economic adjustment

construction, and revolving loan fund grants

Data Validation and Verification:

Target: Reduce the application process by 6%

Data collection: Regional Offices enter dates

when completed applications are received and

numbered; Headquarters enters final decision

dates.

Frequency: Ongoing

Baseline: FY1998 grants – 98 Median Days

Data storage: EDA database

Verification: EDA will sample projects, periodically, to ensure accurate reporting

Comment: In FY1999, new EDA legislation was

introduced that resulted in late fiscal year project

invitations and unusually compressed project

development and processing. EDA shifted

resources to achieve this level of performance

under extraordinary circumstance, and cannot

sustain project processing at this level without

affecting other critical program and administrative

functions. The baseline for FY2000 has been

revised to address the significant variance

between target and actual decrease in processing

for FY1999. The new baseline (an average of

FY1998 and FY1999) is 79.5 median days. The

target will remain at 6% decrease. The baseline

in FY2000 will be re-examined.

Performance Goal 1:

Create Jobs and Private Enterprise in Economically Distressed

Communities 36%

20%

30%30%

0%

10%

20%

30%

40%

50%

1999 2000 2001

Percentage

Actual Target

62%

94%

78%

74%

70%

66%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999 2000 2001 2002 2003

Percentage

Actual Target

I• □ 

I• □ 
40 FY 2001 Annual Performance Plan

Economic Development Administration

Strategies and Activities

To complement its performance measurement system, EDA conducts systematic evaluations of all program

activities to develop, test, and refine performance measures and benchmarks. EDA is making significant investments in program evaluation, and research to improve programs, and to provide useful information to local economic development practitioners. EDA’s goal is to evaluate programs on a regular basis (i.e., every five years).

EDA-sponsored evaluations under this goal include the following:

• Public Works Program Performance Evaluation (Rutgers University et al., March 1997)

• Defense Adjustment Program Performance Evaluation (Rutgers University, et al. November 1997)

• Public Works Program: Multiplier and Employment-Generating Effects (Rutgers University et al, 1998)

• EDA’s Response to the Midwest Flood of 1993: An Evaluation (Aguiree International, 1998)

EDA will continue its strategy of evaluating its programs in order to serve its customers more efficiently and

effectively and to develop facts and data that will help the agency focus on program direction. In addition, EDA

sponsors research and national technical assistance projects to explore policy and program issues affecting

distressed communities. For FY2000, EDA is currently evaluating its Revolving Loan Fund Program.

Strategies Activities

Provide construction grants for economic

development projects in distressed communities

· Build or rebuild public infrastructure (roads, water,

sewer, and other infrastructure) to support the

establishment or expansion of commercial and industrial

facilities in distressed communities

· Help communities upgrade technology infrastructure and

training facilities to prepare for a technology-based

economy

· Redevelop abandoned or under-utilized industrial sites

and facilities, including "brownfields" to restore

employment and private investment in distressed areas

· Support resource recovery and sustainable

development initiatives

Provide construction and revolving loan fund grants to

implement economic adjustment strategies in

response to sudden job loss and severe economic

distress

Revolving loan fund grants will be used to:

· Provide flexible financing to modernize aging plant and

equipment, introduce new technologies, products and

markets, and increase productivity

· Invest in stabilizing and diversifying the local economy

· Target flexible financing and modern infrastructure of

growth industries and new enterprise in distressed

communities.

· Provide for defense adjustment and disaster recovery

Program Evaluation Efforts

Performance Goal 1:

Create Jobs and Private Enterprise in Economically Distressed

Communities
FY 2001 Annual Performance Plan 41

Economic Development Administration

Total Dollars: $353 million

FTEs: 174

IT Dollars: $1.3 million

Intra-DOC

• TA/NIST: Technology policy and Manufacturing Extension Partnership (MEP)

• NTIA: Telecommunications and information infrastructure grants

• MBDA: Business assistance services

• NOAA: Natural disaster reduction, sustainable development and recovery from natural resource depletion.

Economic Development

• US Department of Agriculture (USDA) Rural Development/Rural Utilities Service (RD/RUS) - community

facilities and intermediary lending programs; supplemental funding for projects in distressed rural areas.

• US Department of Transportation Federal Highways Administration (FHA) and Federal Aviation Administration (FAA) – coordinate development projects in close proximity to federal highways and FAA controlled

airports.

• Appalachian Regional Commission (ARC) – community economic development in the 13 state ARC service

area

Environmental Issues

• Environmental Protection Agency (EPA) – brownfields redevelopment and air quality; EDA was the first agency

to partner with EPA on brownfields redevelopment

FY 99 Actual FY 00 Enacted FY 01 Request

$313 M $312 M $353 M

FY 99 Actual FY 00 Enacted FY 01 Request

171 174 174

FY 99 Appropriations FY 00 Enacted FY 01 Request

1.72 M 1.16 M 1.27 M

Resource Requirements Summary

Crosscutting Issues

Other Government Agencies

Performance Goal 1:

Create Jobs and Private Enterprise in Economically Distressed

Communities
42 FY 2001 Annual Performance Plan

Economic Development Administration

Community Adjustment

• Department of Defense Office of Economic Adjustment (OEA) – defense adjustment

• Department of Energy (DOE) – community adjustment to energy facility closures

Disaster Mitigation

• Federal Emergency Management Agency (FEMA) - disaster mitigation, recovery, and training

Note: EDA has established interagency agreements with most of these agencies to define roles for coordinating

special initiatives or funding related project activities. EDA began a systematic review of interagency agreements

and performance measures for crosscutting programs/initiatives in FY 1999, and will update agreements in FY

2000 consistent with EDA’s new legislation and Departmental requirements. Adjustments will be reflected in future

updates to this report.

• Changes in national or regional economic conditions that impact business growth and investment decisions in

communities receiving EDA assistance affect program outcomes.

• Natural disasters and other major events can create a special need or unanticipated demand for EDA assistance, and can alter the mix of projects funded each year.

EDA’s focus on strategic planning at the local level provides flexibility to fund many different types of project

activities and innovative approaches to economic development. To preserve this flexibility, EDA does not predetermine funding for particular types of projects at the national level. Instead, EDA develops regional investment

strategies to target assistance to distressed communities within each region. This allows EDA to respond quickly

to regional variations in economic conditions and to the specific needs, opportunities and constraints that affect

local economic development efforts within each region.

External Factors and Mitigation Strategies

Performance Goal 1:

Create Jobs and Private Enterprise in Economically Distressed

Communities
FY 2001 Annual Performance Plan 43

Economic Development Administration

Data Validation and Verification:

Target: 75% by FY 2001

Data collection: EDA Grantee Performance

Evaluations

Frequency: 1/3 of EDDs to be evaluated

annually

Data storage: EDA database

Baseline: FY2000 grants

Verification: EDA will conduct periodic

performance reviews and site visits including

interviews with clients.

Data Limitations: See below.

Comments: During FY 1999, EDA began

testing a plan for evaluating the performance of

EDDs, which receive EDA funding for ongoing

planning activities. This evaluation cycle will

provide annual program for one-third of EDAfunded Districts each year. OPCS procedures

will require EDA regional offices to enter data

within 30 days of a District evaluation.

Rationale for Performance Goal

Although economic development is a local process, EDA plays an important role in this process by helping distressed communities build capacity to identify and overcome barriers that inhibit economic growth. EDA’s approach

is to support local planning and long-term partnerships with state and regional organizations that assist distressed

communities with strategic planning and investment activities. This process helps local communities set priorities,

determine the viability of projects, and leverage outside resources to improve the local economy and sustain longterm growth.

 EDA planning funds support the development of Comprehensive Economic Development Strategies (CEDS),

which guide EDA investment decisions for public works and economic adjustment implementation grants, including

revolving loan funds. Sound local planning also attracts other federal, State and local funds to implement longterm investment strategies. Evaluations of EDA’s public works and defense adjustment programs show that EDA

planning and technical assistance programs play a significant role in the successful completion and outcomes of

its infrastructure and revolving loan fund projects.

Performance Goal 2:

Build Local Capacity to Achieve and Sustain Economic Growth

Measure 2.a:

Percent of sub-state political jurisdiction

members actively participating in the

Economic Development District (EDD)

program

Measure 2.b:

Percent of Economic Development District

and Indian Tribe planning grantees whose

Comprehensive Economic Development

Strategy (CEDS) is on time and acceptable

Data Validation and Verification:

Target: 75% by FY 2001

Data collection: CEDS reports

Frequency: Annual

Baseline: FY 2000 grants

Data storage: EDA database

Verification: EDA HQ will review OPCS data.

Data Limitations: See below.

Comments: During FY 1999, EDA developed

new guidelines consistent with EDA’s new

reauthorization legislation for the preparation of

CEDS by District and Indian planning grantees.

These guidelines received final OMB clearance

in December of 1999. OPCS procedures will

require EDA regional offices to enter appropriate

data within 30 days of receipt of CEDS reports.
44 FY 2001 Annual Performance Plan

Economic Development Administration

Note: Graph includes actual result for FY1999 funding.

Measure 2.d:

Percent of clients satisfied with assistance

provided for trade adjustment

Measure 2.e:

Number of research and national technical assistance results published or presented nationally

each year

Data Validation and Verification:

Target: 5 annually

Data collection: Grantee Reports

Frequency: Annual Review

Data storage: EDA project files.

Verification: EDA will verify by reviewing

publications and national presentations.

Data limitations: None

Comments: EDA’s research and national

technical assistance continues to improve

EDA’s website as a resource for economic

development professionals and practitioners serving economically distressed rural

and urban communities.

Measure 2.c:

Percent of University Center clients satisfied

with technical assistance provided for local

economic and business development

Performance Goal 2:

Build Local Capacity to Achieve and Sustain Economic Growth

Data Validation and Verification:

Target: 75% by FY 2001

Data collection: Grantee client survey / reports

Frequency: Annual

Baseline: FY2000 grants

Verification: Performance data will be verified

for 1/3 of the University Centers. EDA HQ will

annually review OPCS data.

Data limitations: See below.

Comments: During FY 1999, EDA developed a

plan for evaluating 1/3 University Centers each

year. GBeginning in FY 2000, client satisfaction

ratings will be included in University Center

Annual Reports. New OPCS procedures will

require EDA regional offices to enter data within

30 days of receipt of reports.

Data Validation and Verification:

Target: 75% for FY 2001

Data collection: Grantee client survey/reports.

Frequency: Annual

Baseline: FY 2000 grants

Data storage: EDA OPCS database

Verification: EDA will conduct periodic

performance reviews and site visits to review

and verify survey forms.

Data limitations: See below.

Comments: During FY 1999, EDA developed

client satisfaction reports as part of each Trade

Adjustment Assistance Center’s annual report to

EDA. These reports are due at the end of the

second quarter of FY 2000.

6

5 5 5

0

1

2

3

4

5

6

7

8

1999 2000 2001

Number

Actual Target I• □ 
FY 2001 Annual Performance Plan 45

Economic Development Administration

Performance Goal 2:

Build Local Capacity to Achieve and Sustain Economic Growth

Measure 2.f:

Percent of local technical assistance and economic adjustment strategy grants awarded in

areas of highest distress

 Measure 2.g:

Certification processing time for trade-impacted firm

Data Validation and Verification:

Target: 25% of FY 2001 grants

Data collection: Project locations entered by

Regions

Frequency: Ongoing

Baseline: FY1998 grants

Data storage: EDA database

Verification: EDA samples projects periodically to ensure accurate project location codes.

Statistical data is based on Bureau of Labor

Statistics current 24-month unemployment data

and most current Bureau of Economic Analysis

per capita income data. EDA will sample

projects, periodically, to ensure accurate

reporting.

Comment: The highest distress criteria, for a

70% grant rate, are defined by new EDA

regulations. These criterua are reserved for

projects located in areas where the 24-month

unemployment rate is at least 180% of national

average, or the per capita income is not more

than 60% of national average. Projects located

in disaster areas and Indian tribes are also

included in definition.

Data Validation and Verification:

Target: Reduce the application processing

time by 4% annually.

Data collection: Planning and Development

Assistance Division Database

Baseline: FY 1998 was 56 Mean Days

Frequency: Quarterly

Data storage: Project Officer in charge of

database

Verification: EDA will sample projects

periodically to ensure accurate reporting.

Comments: In FY 1999, an 18 percent

reduction in certification processing time was

achieved while a 4 percent reduction was

targeted. The greater reduction in processing

time, than the stated target, is due to the

extraordinary efforts by EDA staff to certify firms

before the lapsed of authorization, which took

place on June 30,1999. The TAA program was

not re-authorized until FY 2000. The data

collected and used for this measure ended on

June 30, 1999. Due to this reauthorization

anomaly, EDA will continue to use the stated

target and FY 1998 baseline results in FY 2000.

31%

20%

25%25%

0%

10%

20%

30%

40%

50%

1999 2000 2001

Percentage

Actual Target

82%

96%

93%

89%

85%

81%

0%

20%

40%

60%

80%

100%

120%

1999 2000 2001 2002 2003

Percentage

Actual Target

I• □ 

I• □ 
46 FY 2001 Annual Performance Plan

Economic Development Administration

To complement its performance measurement system, EDA conducts systematic evaluations of all program

activities to develop, test and refine performance measures and benchmarks. EDA is making significant

investments in program evaluation and research to improve programs and provide useful information to local

economic development practitioners. EDA’s goal is to evaluate programs on a regular basis (i.e., every five

years). The following is a listing of EDA- sponsored program evaluations:

• Select Practices for Economic Development: EDA University Centers (National Association of Manufacturing & Technical Assistance Centers, 1998)

• Effective Aid to Trade-Impacted Manufacturers (Urban Institute, 1998)

EDA will continue its strategy of evaluating its programs in order to serve its customers more efficiently and

effectively and to develop facts and data that will help the agency focus on program direction. In addition, EDA

sponsors research and national technical assistance projects to explore policy and program issues affecting

distressed communities. For FY2000, EDA is currently evaluating its University Center Program, which is

being conducted by Mt. Auburn Associates. EDA has also planned the following evaluations for FY2000:

• Evaluation of EDA’s Planning Program (planned for FY 2000)– EDA will sponsor an evaluation of the

effectiveness of EDA’s Planning Program and the network of local partnerships that have provided assistance for economic development efforts at the local and regional level over the past 30 years. In 1998 EDA

commissioned an independent evaluation of its regional planning process in order to increase the benefits

of the process and enhance economic development capacity at the local level. That evaluation was

completed in 1999 (see above). The current evaluation will complement this earlier evaluation by measuring the impact of EDA’s assistance under the Planning Program.

• Evaluation of EDA’s Local Technical Assistance Program (planned for FY 2000) – EDA will sponsor an

evaluation of this program, which provides funding for feasibility studies, consultants, technical advisors,

professional services or similar activities required to solve specific development problems, assess development options, or increase local capacity to implement effective development strategies. In recent years

funding for the program has been approximately $1.5 million per year with an average grant amount of

approximately $25,000. The program was last evaluated in 1989.

Program Evaluation Efforts

Performance Goal 2:

Build Local Capacity to Achieve and Sustain Economic Growth
FY 2001 Annual Performance Plan 47

Economic Development Administration

Strategies Activities

Build capacity for strategic planning and investment activities through a

national network of: 320 Economic Development Districts (EDDs); 64

Indian tribes; 69 University Centers; and 12 Trade Adjustment

Assistance Centers (TAACs). These programs work in unison to:

enhance local capacity; Remove barriers to economic growth.

· Provide professional staff and

technical expertise required to support

the effective planning of economic

development programs through a

network of regional planning

organizations and technical assistance

centers

· Award grants to support strategic

planning and technical assistance

providers

· Develop an EDA web page to

disseminate national research and

other pertinent materials dealing with

economic development

Disseminate information about research, best practices, and new

knowledge about economic development issues and problems affecting

distressed communities and diverse local economies to institutions,

communities and entities engaged in enhancing America's economic

competitiveness

· Provide research and national

technical assistance grants for cutting

edge research

· Perform evaluations that provide

practical, up-to-date information on the

effectiveness of tools for economic

competitiveness

· Sponsor new research

· Encourage state and local

practitioners to share information

· Use EDA's website to share

information and research findings

Strategies and Activities

Performance Goal 2:

Build Local Capacity to Achieve and Sustain Economic Growth
48 FY 2001 Annual Performance Plan

Economic Development Administration

Intra-DOC

• TA/NIST: Work on the Manufacturing Extension Partnership (MEP)

• National Oceanic and Atmosphere Administration (NOAA): coordination and planning for natural disaster reduction; sustainable development and recovery from natural resource depletion.

• MBDA: Business Assistance Centers; minority serving institutions.

Economic Development

• Appalachian Regional Commission (ARC) – economic development planning in the 13 state ARC service area

• Indian and Alaskan Native Village Economic Development, White House Conference on Building Economic

Self-Determination in Indian Communities – EDA will work with other departments to study the technology

infrastructure needs of Indian communities and to develop a strategic plan for coordinating economic development activities for Native American and Alaska Native communities

FY 99 Actual FY 00 Enacted FY 01 Request

92 90 91

FY 99 Actual FY 00 Enacted FY 01 Request

$1.0 M $0.65 M $0.69 M

FY 99 Actual FY 00 Enacted FY 01 Request

$78 M $74 M $84 M

Total Dollars: $84 million

FTEs: 91

Skill Requirements: Economic development policy, project management, legal,

engineering,environmental

IT Dollars: $0.7 million

IT Requirements: Upgrade database for project management and performance measures

Resource Requirements Summary

Crosscutting Activities

Other Government Agencies

Performance Goal 2:

Build Local Capacity to Achieve and Sustain Economic Growth
FY 2001 Annual Performance Plan 49

Economic Development Administration

• Federal Emergency Management Agency (FEMA) - disaster mitigation planning, recovery, and training

Note: EDA has established interagency agreements with most of these and other agencies to define roles in funding related project

activities or initiatives. EDA began a systematic review of interagency agreements and performance measures for crosscutting programs/initiatives in FY 1999 and will update agreements in FY 2000 consistent with new legislation and Departmental requirements.

Adjustments will be reflected in the update to this report.

• Changes in national or regional economic conditions, natural disasters, or other major events can affect resources available for planning and technical assistance activities, as well as the types of activities funded.

Opportunities to implement plans and strategies may be limited by economic and other constraints at the local,

regional or national level.

External Factors and Mitigation Strategies

Environmental Issues

• Environmental Protection Agency (EPA) – environmental planning; assessments for the redevelopment of

brownfields; research on economic impact of air quality standards;

• American Heritage Rivers Initiative – EDA partners with the Council on Environmental Quality and the Department of the Interior on economic revitalization of our Nation’s rivers

Disaster Mitigation

Performance Goal 2:

Build Local Capacity to Achieve and Sustain Economic Growth
50 FY 2001 Annual Performance Plan

Economic Development Administration
FY 2001 Annual Performance Plan 51

Economics and Statistics Administration

Economics and Statistics Administration

The United States enjoys the reputation of being the world’s unrivaled economic information leader, due in part to the

timely and accurate analysis produced by the Economics and Statistics Administration (ESA). Producing such vital

measures as the decennial census, the gross domestic product, and the balance of payments, ESA provides

economic and demographic information that dramatically impacts the decision making of the President, Congress

and businesses, and affects the lives of all Americans.

 Mission Statement

The Economics and Statistics Administration’s (ESA’s) mission is to chronicle,

understand and explain economic and societal change. Our goals are to:

· Help maintain a sound Federal statistical system that monitors and measures

America’s rapidly changing economic and social arrangements;

· Improve understanding of the key forces at work in the economy and the

opportunities they create for improving the well-being of Americans;

· Develop new ways to disseminate information using the most advanced

technologies; and

· Support the information and analytic needs of the Commerce Department, the

Executive Branch, and the Congress.

Organizational Structure

ESA includes: ESA Headquarters, The Bureau of Economic Analysis, and The Bureau of the Census.

ESA headquarters (comprised of The Office of the Under Secretary, the Policy Support staff, and STAT-USA) has

three main roles: to provide management, financial analysis, and administrative support to all ESA agencies; to

provide economic policy analysis; and to provide data dissemination services. The Office of the Under Secretary and

the Office of Administration provide management, financial, and administrative services to ESA. Policy Support’s

staff economists conduct research on the factors contributing to US industrial strength and the relationship between

industry performance and economic growth, including recent major studies on the scope and economic impacts of

electronic commerce. Data dissemination services are provided by STAT-USA, an easy to use, “one-stop shop” that

provides a focal point for business, economic, and trade statistics. STAT-USA is a revolving fund account that

requires no government funding. (STAT-USA is discussed in detail in this section)

STAT-USA

As part of ESA headquarters, STAT-USA provides the public with access to key business, economic, and

international trade information. STAT-USA’s mission is to: “produce, distribute, and assist other

government agencies in producing world-class business, economic, and government information

products that American businesses and the public can use to make intelligent and informed

decisions.” It accomplishes this through its three primary products and services: the National Trade Data

Bank (NTDB) CD-ROM, the USA Trade CD-ROM, and STAT-USA /Internet.

STAT-USA also performs services for other Commerce agencies, primarily in the area of information technology. Projects include LAN support and website development.

The organization obtains financial support for its activities through sales of its information products and

•••• 
52 FY 2001 Annual Performance Plan

Economics and Statistics Administration

services. It receives no appropriated funds, but rather operates on a revolving fund. STAT-USA is organized

into four functioning units including the Office of the Director, Customer Outreach, Operations, and ADP

Support. All units are located in Commerce’s H.C. Hoover Building except for the Customer Outreach

functions, which are located within the USA Trade Center at the Ronald Reagan International Trade Center

Building.

Priorities and Initiatives

This fiscal year is an important and challenging one for STAT-USA. The office’s business operating plan is

focused on the implementation of its STAT-USA/Internet “value-added” initiatives. In addition to its normal

business activities, STAT-USA, through its employees, is expected to complete fifteen value-added initiatives, spanning all STAT-USA functional areas. The initiatives include key projects to update and improve

the appearance of our website, and expand the services available on the web to include online help, online

registration, and online questions and answers. The initiatives also address specific marketing and advertising campaigns, and customer service plans. These initiatives, compiled by a team of STAT-USA employees

and reviewed and ranked by the entire staff, make up the core projects that will enable STAT-USA to improve

its products and services and lead to a new, higher level of customer service. The initiatives are a key part

of our measures of performance listed below.

The Bureau of Economic Analysis serves as the Nation’s accountant, developing measures and systems for

collecting and interpreting vast amounts of diverse data from government and private sources. BEA produces such

widely used statistical measures as gross domestic product (GDP), corporate profits, and balance of payments.

(See the following section on the Bureau of Economic Analysis)

The Bureau of the Census chronicles societal and demographic change. The Bureau fulfills the constitutionally

mandated requirement to conduct a decennial census, and the Bureau collects a wide range of economic and

demographic data. The data provided by the Bureau of the Census shape important policy decisions that help

improve our Nation’s social and economic conditions. (See the following section on The Bureau of the Census)

Summary

ESA’s staff and programs provide vital information, analysis, and advice to Commerce and other Executive Branch

Departments, agencies, and officials. Many of the Nation’s decisions are based upon the economic and demographic information the agency produces.
FY 2001 Annual Performance Plan 53

Economics and Statistics Administration

UNDER SECRETARY

Deputy Under

Secretary

Bureau of

Economic

Analysis

Policy

Support

STAT-USA

Bureau of

the Census

ESA Headquarters includes the Office of the Under Secretary and policy

support staff, and STAT-USA, which is funded through ESA’s revolving fund

Organizational Structure
54 FY 2001 Annual Performance Plan

Economics and Statistics Administration

Targets and Performance Summary

Performance Goal 1: Provide accurate, timely, and relevant economic data

Measures FY 99 FY 00 FY 01

Percent of scheduled releases issued on time **** 100% 100% 100%

Performance Goal 2: Provide accurate, timely, and relevant statistical data

Measures FY 99 FY 00 FY 01

Percent of household surveys attaining 100% of specified reliability

specifications ** 100% 100% 100%

Percent of household surveys with initial response rates >90% *** 100% 100% 100%

Annual reduction from time of data collection and data release for

selected household surveys 9% decrease Maintaindecrease

Maintain

decrease

Performance Goal 3: Conduct an accurate, timely, relevant and cost-effective Decennial Census

Measures FY 99 FY 00 FY 01

Produce apportionment counts using traditional census taking

methods N/A N/A 100% on time

Adjust net population counts using the Accuracy and Coverage

Evaluation Survey in all states * N/A N/A 100% on time

Meet all Census 2000 published data release milestones on time N/A N/A 100% on time

* The Accuracy and Coverage Evaluation Survey is intended to evaluate the census counts produced for the apportionment of Congressional

Representatives among the states. It will be conducted subsequent to exhaustive efforts to enumerate everyone as accurately as possible

using traditional census taking methods. The adjusted counts will be available in a form that allows states to use them for redistricting

purposes. The more accurate adjusted counts can also be used for determining the allocation of Federal funds, and for ongoing statistical and

programmatic purposes.

** Reliability: A series of statistical measurements that define the precision of a survey; e.g., standard error, coefficient of variation, and sample

design effect.

*** Excludes Household Expenditures Survey

  A Bureau of Economic Analysis measure that is affected by Census survey programs.
FY 2001 Annual Performance Plan 55

Economics and Statistics Administration

Total Bureau Dollars: $3.4 billion

Performance Goal FY 99 Actual FY 00 Enacted FY 01

Request

Provide accurate, timely, and relevant economic

data $43.1M $43.8M $48.9M

Provide accurate, timely, and relevant statistical

data $485.0M $498.0M $535.0M

Conduct an accurate, timely, relevant, and costeffective Decennial $1,079.0M $4,468.0M $393.0M

Total Bureau FTEs: 13,386

Total Bureau IT Dollars: $315.3M

Resource Requirements Summary

Performance Goal FY 99 Actual FY 00 Enacted FY 01

Request

Provide accurate, timely, and relevant economic

data 414 432 451

Provide accurate, timely, and relevant statistical

data 5,753 6,456 6,799

Conduct an accurate, timely, relevant, and costeffective Decennial 14,886 98,460 6,112

Performance Goal FY 99 Actual FY 00 Enacted FY 01

Request

Provide accurate, timely, and relevant economic

data $6.0M $6.1M $9.3M

Provide accurate, timely, and relevant statistical

data $205.0M $211.0M $200.0M

Conduct an accurate, timely, relevant, and costeffective Decennial $214.0M $407.0M $106.0M
56 FY 2001 Annual Performance Plan

Economics and Statistics Administration

Mission Statement

To produce and disseminate accurate, timely, relevant, and cost-effective economic

accounts statistics that provide government, businesses, households, and individuals with a comprehensive, up-to-date picture of economic activity.

Reliable and consistent measures of economic activity are essential to the decision-making of business people and

policymakers, and to the efficient operation of financial markets. The mission of BEA is to produce and disseminate

accurate, timely, relevant, and cost-effective economic accounts statistics that provide government, businesses,

households, and individuals with a comprehensive, up-to-date picture of economic activity.

As the Nation’s accountant, BEA develops measures and systems for collecting and interpreting vast amounts of

diverse data from government and private sources. BEA combines and transforms those data into a consistent and

comprehensive picture of economic activity, which is summarized by the estimates of gross domestic product

(GDP). BEA’s national, regional, and international economic accounts form much of the core of the federal statistical system, which in turn is critical to sound economic decisions by businesses, individuals, state and local governments, and federal institutions, such as the Treasury Department and the Federal Reserve. These data provide

many of the yardsticks by which the health and potential of the economy are judged. They affect every American

who runs a business, saves for retirement, or takes out a mortgage. BEA data are also essential to the Federal

government, providing information for policy development.

Priorities

Bureau

The major issue confronting BEA is the need to improve the accuracy and reliability of its economic accounts

estimates. For example, there has been growing concern in the economic community over the “statistical discrepancy,” i.e., the difference between GDP, as measured by final expenditures for the goods and services produced by

the U.S. economy, and gross domestic income (GDI), an alternative measure that is derived by totaling the costs

Bureau of Economic Analysis

incurred and the incomes earned in the production of those goods and services. In theory, these measures should

be equal, but the persistent discrepancy between them calls into question the accuracy of BEA’s estimates. BEA

is pursuing many initiatives to improve the accuracy and reliability of its estimates, including working with the Bureau

of the Census, the Bureau of Labor Statistics, and other source data agencies to provide comprehensive coverage of

services and other new and rapidly expanding sectors of the U.S. economy.

Department-Wide

• Electronic Commerce: BEA supports the Department’s electronic commerce initiative. If its economic

accounts are to keep pace with the relentless growth and increasing complexity of the American economy,

BEA must develop the capacity to capture and accurately measure all aspects of economic activity – from

the traditional smoke-stack industries to the latest high-tech products and services, such as E-Business.
FY 2001 Annual Performance Plan 57

Economics and Statistics Administration

However, E-Business creates such fundamental changes in the nature of economic transactions that new

data sources and methodologies are needed to measure it. Through coordination with its major source data

suppliers, the Bureau of Census and the Bureau of Labor Statistics, BEA will provide the first detailed and

consistent accounting of E-Business, including data on its volume, its impact on GDP and the U.S. economy,

its regional and cross-industry impact, and its impact on incomes and prices. Incorporating coverage of EBusiness into BEA’s national, international, and regional accounts will provide a more comprehensive picture

of today’s economy.

• Critical Infrastructure Protection: BEA supports the Department’s effort to ensure the security of critical

infrastructure. The experiences of other agencies, both government and private, with actual and threatened

acts of terrorism and destruction of electronic data systems dictate the need to increase our awareness of

any vulnerabilities that may exist. By identifying and assessing those vulnerabilities, we will be able to take

corrective and preventative actions to protect our critical systems. In addition, BEA has proposed an initiative

that will enhance the security of BEA’s data by undertaking a number of positive steps, such as procuring

additional firewall protection and router hardware and software, installing automatic intrusion monitoring

software, and upgrading authentication technology for remote access. These steps will help ensure that BEA

is able to disseminate data promptly to its users via the BEA web site with confidence that the integrity of the

data has not been compromised.

BEA
58 FY 2001 Annual Performance Plan

Economics and Statistics Administration

International

Investment Division

Regional Economic

Measurement

Division

Associate Director

for Industry

Accounts

Inter-industry

Economics Division

Director

Associate Director

for International

Economics

Balance of

Payments Division

Associate Director

for Regional

Economics

Regional Economic

Analysis Division

Associate Director

for National

Income,

Expenditure, and

Wealth Accounts

National Income

and Wealth

Division

Government

Division

Deputy Director

Chief

Statistician

Chief

Economist

Organizational Structure

BEA

~ 

~ 

- ~ 

i I - ~ 
FY 2001 Annual Performance Plan 59

Economics and Statistics Administration

Highlights of BEA’s FY 2001 Performance Plan

Total Bureau Dollars: $48.9 M

FTEs: 451

Skills Summary: Economists, Accountants, Statisticians, Computer Specialists

Performance Goal 1: Provide accurate, timely, and relevant economic data

Measures FY 99 Actual FY 00 Target FY 01 Target

Percent of scheduled releases issued on time 100% 100% 100%

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Provide economic data $43.1 M $43.8 M $48.9 M

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Provide economic data 414 432 451

IT Dollars: $9.3 M

IT Requirements: Optimum performance of LAN system requires:

- Re-engineering of critical applications

- Construction of comprehensive database architectures

- Implementation of secure electronic bridges to data suppliers & customers

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Provide economic data $6.0 M $6.1 M $9.3 M

Targets and Performance Summary

Resource Requirements Summary

BEA

I I I 

I I I 
60 FY 2001 Annual Performance Plan

 Percent of scheduled releases issued on time

Measure 1.a:

0%

20%

40%

60%

80%

100%

120%

1997 1998 1999 2000 2001

TARGET ACTUAL

of the success of BEA’s programs.

of the broad range of data users. Therefore, achieving a high level of customer satisfaction is an important measure

tently meet that schedule. In addition, the usefulness of BEA’s estimates depends on how well they meet the needs

release its estimates as soon as reasonably possible, to publish a schedule of future release dates, and to consisthe quality of the estimate is, the data are of no use until they are available to the data users. Thus, BEA strives to

To meet the needs of its users, BEA must produce and disseminate timely and relevant data. No matter how high

dence and thus play a key role in consumers’ expectations and buying plans.

variables as GDP, inflation, and personal income have an important influence on the formulation of consumer confiIn large part, the success of BEA is measured by public trust in its data. For example, economic reports on such

financial markets.

quarterly advance GDP data was named as one of the three most important statistical releases for its effect on

states are directly linked to BEA’s estimates of regional income and product. In a recent private study, BEA’s

growth can result in a difference of $150 billion in 5-year budget projections. Over $115 billion in Federal grants to

pjpy yp

Data collection:

Data Validation and Verification:

 Annual schedule of BEA release dates as published in the Survey of Current Business and BEA records of actual

Frequency:

release dates.

 Measure will be compiled annually; however, because

Data storage:

ated at any time.

releases are issued throughout the year, the measure can be evalu-

 BEA’s Current Business Analysis Division maintains

Verification:

site.

dates. Both sets of information are publicly available on BEA’s Internet

a schedule of upcoming release dates and records of actual release

 Records of scheduled and actual release dates are a

Data Limitations:

matter of public record.

 None.

Actions to be taken: Continue with no changes.

100% 100% 

51 j 1100% 

100% 100% 

·1 ~ 100% 

100% 100% 
FY 2001 Annual Performance Plan 61

Economics and Statistics Administration

BEA

Performance Goal 1:

Provide Accurate, Timely and Relevant Economic Data

Strategies and Activities

Strategies Activities

BEA: Data Quality

Develop new and improved measures of output

(real GDP) and prices

Extend quality adjustments to more products.

Develop new concepts and methods for measuring difficult-to-measure and

rapidly-growing goods and services, including E-Business.

Develop new and updated source data for key components.

Improve real GDP-by-industry and real gross state product estimates.

Expand implementation of NAICS classification system.

Develop independent estimates for not-for-profit sector.

Provide updated measures of the Nation's

investment, saving, and wealth

Develop integrated saving and financial wealth estimates.

Develop estimates of investment in E-Business related equipment.

Improve treatment of employee stock options and pension plan

contributions in estimates of employee compensation.

Provide improved measures of U.S.

international trade and finance

Publish more detailed data on trade in services between U.S. companies

and their foreign affiliates.

Incorporate NAICS in survey results.

Conduct quarterly selected services surveys .

Collect data on E-Business-related international trade and investment.

Eliminate gaps and overlaps between direct and portfolio investment.

Develop means for collecting data on derivatives and new financial

instruments.

Develop estimates of understated exports and imports of goods.

BEA: Statistical Measures

Reduce respondent burden Develop electronic filing of BEA's surveys of direct investment and

international services.

Increase efficiency of data transfers

Develop standardized data transfer and on-line interactive editing and

processing systems for source data across national, regional, and

international programs.

ESA: Data Dissemination

Increase customer accessibility (with BEA) Deliver data products to a wide range of customers through Internet and

other electronic gateways, such as STAT-USA.

Provide information on economic events and

the workings of the economy

Provide information, analyses, and guidance on pending economic policy

decisions.

Use STAT-USA as a focal point for business, economic, and trade data

dissemination.
62 FY 2001 Annual Performance Plan

Economics and Statistics Administration

Resource Requirements Summary

Total Bureau Dollars: $48.9 M

FTEs: 451

Total IT Dollars: $9.3 M

Cross-Cutting Activities

Other Government Agencies

• BEA, the Bureau of the Census, the Bureau of Labor Statistics (BLS), and the Internal Revenue Service

(IRS): BEA works closely with its source data agencies, including Census, BLS, and the IRS, to make them

aware of BEA’s data needs and to encourage their cooperation in meeting those needs. In addition, BEA

obtains source data from most government agencies that produce statistics.

• Interagency Council on Statistical Policy: Under the auspices of the Office of Management and Budget, BEA

is a major participant in the Interagency Council on Statistical Policy, which works to improve collaborative

activities of federal statistical agencies. Activities of the council have led to standardization of data and

concepts, transfers of technology, methodology exchange, collaborative research, process improvement,

improved customer service, reduced respondent burden, and infrastructure sharing.

• The Bureau of the Census and the Bureau of Labor Statistics (BLS): Scheduling of BEA’s releases is based

on the availability of source data provided by other agencies, including the Bureau of the Census and BLS.

• Economic and Export Agencies: STAT-USA originates few of the many thousands of files in its information

base. Rather, it obtains files from major economic agencies in the government (BEA, Census, BLS, and the

Federal Reserve) and agencies providing export information (Census, ITA, State Department, and others).

STAT-USA also provides information technology (IT) solutions to other Commerce agencies to help them

meet their IT needs.

FY 99 Actual FY 00 Enacted FY 01 Request

$43.1M $43.8M $48.9M

FY 99 Actual FY 00 Enacted FY 01 Request

414 432 451

FY 99 Actual FY 00 Enacted FY 01 Request

$6.0M $6.1M $9.3M

BEA

Performance Goal 1:

Provide Accurate, Timely and Relevant Economic Data
FY 2001 Annual Performance Plan 63

Economics and Statistics Administration

External Factors and Mitigation Strategies

BEA is highly dependent on other government agencies and private organizations for the source data it uses to

produce its economic accounts statistics. Thus, BEA’s ability to provide accurate, timely, and relevant economic data and to move forward with improvements in its economic accounts is constrained by the quality and

availability of that source data. BEA works closely with its data sources to obtain the best and most complete

data possible and continually refines its estimation methods to improve its measures, especially in areas with

source data deficiencies.

BEA

Performance Goal 1:

Provide Accurate, Timely and Relevant Economic Data
64 FY 2001 Annual Performance Plan

Economics and Statistics Administration

Mission Statement

To be the preeminent collector and provider of data about the people and economy

of the United States

The Bureau of Census’ goal is to provide the best mix of timeliness, relevancy, quality, and cost for the data collected and services provided. The data provided by the Bureau of the Census shape important policy decisions that

help improve our nation’s social and economic conditions:

Bureau of the Census data provide the basis for estimating gross domestic product and leading economic indicators:

• They determine the apportionment of Congressional seats, as mandated in the Constitution.

• They inform us about education, income, and health care coverage.

• They are used by national, state, and local governments to formulate policy.

• They are used by large corporations and local businesses to devise their domestic and global strategies.

The credibility, expertise, and high statistical standards of the Bureau of the Census routinely elicit response rates of

90-95 percent for household surveys and 80 percent for business surveys. This allows the Bureau of the Census to

provide the most accurate and reliable information available.

The Bureau of the Census has developed four bureau-wide strategies to achieve its mission. All goal-level strategies

fall within one, or a combination, of these bureau-wide strategies:

• Valuing our employees

• Innovating in our work

• Responding to our customers

Bureau of the Census

• Improving public cooperation

Priorities

Department-Wide

Decennial Census - To enable Congressional apportionment and distribute $180 billion in federal grants, the Bureau

of the Census will plan for and conduct the Decennial Census in the year 2000.

Statistical Infrastructure - With ESA and BEA, the Bureau of the Census is leading the initiative to enhance the

Nation’s statistical infrastructure.
FY 2001 Annual Performance Plan 65

Economics and Statistics Administration

Bureau

How big is the Census?

• 275 million residents, 118 million housing units in the United States alone, 1.5 million housing units in Puerto

Rico and the U. S. Island Areas

• 3 million applicants recruited, 860,000 jobs at peak, 520 Local Census Offices, 12 Regional Census Centers

and 4 Data Processing Centers, 520 local area networks, 7,800 personal computers and 2,600 printers

• 20 million maps needed for field work, covering 8 to 9 million blocks, and 70 million questionnaires returned

within a two week period

Major Milestones of the Census

• Beginning mid-March 2000 : Census questionnaires delivered/mailed

• April 1, 2000: CENSUS DAY

• March-May 2000: Census takers visit housing units in rural and remote areas to drop off and/or pick up forms

• April-August 2000: Census takers visit housing units that did not return census forms. This is referred to as

“non-response follow-up” and coverage improvement.

• October-November 2000: All field work completed

• December 31, 2000: Apportionment counts delivered to the President

• April 1, 2001: All states receive redistricting counts

The Bureau of the Census

Highlights of Census’ FY 2001 Performance Plan

Performance Goal 2: Provide accurate, timely, and relevant demographic data

Measures FY 99 Actual FY 00 Target FY 01 Target

Percentage of household surveys attaining 100% of specified

reliability specifications **  100% 100% 100%

Percentage of household surveys with initial response rates

>90% *** 100% 100% 100%

Percentage reduction from time of data collection to data

release for selected household surveys 9% decrease Maintain

decrease

Maintain

decrease

Performance Goal 3: Conduct Decennial Census

Measures FY 99 Actual FY 00 Target FY 01 Target

Produce apportionment counts using traditional census taking

methods N/A N/A 100% on time

Adjust net population counts using the Accuracy and Coverage

Evaluation Survey in all states * N/A N/A 100% on time

Meet all Census 2000 published data release milestones on

time N/A N/A 100% on time

Targets and Performance Summary

* The Accuracy and Coverage Evaluation Survey is intended to evaluate the census counts produced for the apportionment of Congressional

Representatives among the states. It will be conducted subsequent to exhaustive efforts to enumerate everyone as accurately as possible

using traditional census taking methods. The adjusted counts will be available in a form that allows states to use them for redistricting

purposes. The more accurate adjusted counts can also be used for determining the allocation of Federal funds, and for ongoing statistical and

programmatic purposes.

** Reliability: A series of statistical measurements that define the precision of a survey; e.g., standard error, coefficient of variation, and sample

design effect.

*** Excludes Household Expenditures Survey
66 FY 2001 Annual Performance Plan

Economics and Statistics Administration

The Bureau of the Census

FTEs: 12,911

Skills Summary: Statistics, Computers, HR/Financial/Facilities/Clerical, Data Processing

Performance Goal FY 99 Actual FY 00

Enacted

FY 01

Request

Provide statistical data 5,753 6,456 6,799

Conduct Decennial Census 14,886 98,460 6,112

IT Dollars: $306 M

IT Requirements: $306 million for mission critical infrastructure and architecture

Performance Goal FY 99 Actual FY 00 Actual FY 01

Request

Provide statistical data $205 M $211 M $200 M

Conduct Decennial Census $214 M $407 M $106 M

Resource Requirements Summary

Total Bureau Dollars: $928 million ($719 million discretionary; $20 million mandatory; $188

million working capital fund)

Performance Goal FY 99 Actual FY 00

Enacted

FY 01

Request

Provide statistical data $485 M $498 M $535 M

Conduct Decennial Census $1,079 M $4,468 M $393 M
FY 2001 Annual Performance Plan 67

Economics and Statistics Administration

The Bureau of the Census

DIRECTOR

DEPUTY

DIRECTOR

Policy Office

Principal

Associate

Director and

Chief

Financial

Equal

Employment

Opportunity

Officer

Chief

Economist

Principal

Associate

Director for

Programs

Marketing

Services

Associate Director

for Finance and

Administration

Associate Director

for Information

Technology

Associate Director

for Field Operations

Associate Director

for Communications

Associate Director

for Decennial

Associate Director

for Economic

Associate Director

for Methodology

and Standards

Associate Director

for Demographic

Programs

Organizational Structure

I I 

~ 

- - .. 

I ~ 

-

-
68 FY 2001 Annual Performance Plan

Economics and Statistics Administration

The Bureau of the Census

Performance Goal 2:

Provide accurate, timely, and relevant demographic data

Rationale for Performance Goal

The Demographic Programs at the Census Bureau provide the data used to allocate over $180 billion in federal

funds each year (population estimates and projections), analyses underlying the statistical definitions and standards used by the entire federal government in policy decisions, and the baseline sample units that underlie virtually

every survey conducted in the United States by both private and public sectors.

Billions of government dollars are divided among states and communities, and businesses make decisions such as

where to locate, based on demographic, social, economic, and housing profiles. The federal government needs

such information to manage programs. Communities use it for economic development, for decisions about their

future such as locating schools and expanding roads, and to see how they are doing compared with others.

Accurate measures of the country’s demographic composition are critical to the efficient allocation of resources

through both governmental appropriations and private markets. Improving data quality is fundamental to the Secretarial objective of enhancing our Nation’s statistical infrastructure. Providing relevant demographic data in a timely

manner supports the Secretary’s initiative to enhance the country’s statistical infrastructure. It is vital that the most

meaningful demographic data be promptly available to policymakers at the federal, state, and local level and to

stakeholders and data users who depend on that information to make important and critical decisions.

Demographic programs develop plans and programs to collect, process, and disseminate information from surveys

and censuses on the population and its characteristics, and on the size and characteristics of the housing inventory. Official population estimates and projections for the Nation are prepared, and reports on socioeconomic,

demographic and housing topics are published. Also, analytical research on emerging issues and trends such as

the condition of children and the elderly, the employment of disabled individuals, and the characteristics of immigrants is undertaken.

Directing and coordinating technical and developmental work on the collection and analysis of data by race,

Hispanic origin, and ancestry is a major responsibility. This work results in reports on the characteristics of special

population groups, and for American Indian and Alaskan Native areas. An important aspect is examining reporting

issues such as error or bias in these data.

Official statistics on income and poverty, as well as longitudinal data on income and program participation that

federal agencies use to develop, modify, and monitor transfer programs originate from Demographic Programs.

Especially important are data necessary to determine the impact of welfare provisions of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, often called “welfare reform.”

Much of the foundational analysis and research underlying the Office of Management and Budget’s decisions on

national statistical standards on topics such as occupational classifications, metropolitan areas, and race and

ethnicity are conducted by Demographic Programs.

The Demographic Programs also plan and conduct surveys and special censuses, funded by other government

agencies, that focus on topics of national importance, such as unemployment, crime, health, education, and

consumer expenditures. Also, we process, analyze, and disseminate data from the Decennial Census. The

demographic area is able to provide accurate, timely, and relevant data in an exemplary manner because of the

excellent work done by the four divisions that comprise the directorate, Population; Housing and Household Economic Statistics; Demographic Surveys; and Demographic Statistical Methods.
FY 2001 Annual Performance Plan 69

Economics and Statistics Administration

The Bureau of the Census

Performance Goal 2:

Provide accurate, timely, and relevant demographic data

Measure 2.a:

Percentage of household surveys attaining 100% of specified reliability measurements

Data Validation and Verification:

Data collection: Performance measure data on reliability is collected, calculated, and assessed as the surveys are tabulated.

Frequency: Performance measures are available at the time of a

survey’s public data release.

Data storage: Survey performance data are in Census Bureau

databases and are published in public press releases and data

reports (Source and Reliability Statements in every release)

Verification: The Bureau maintains and adheres to methodological

standards that are documented and reported publicly.

Data limitations: N/A

Actions to be taken: N/A

Measure 2.b:

Percentage of household surveys with initial response rates >90%

0%

20%

40%

60%

80%

100%

120%

1997 1998 1999 2000 2001

TARGET

ACTUAL

Data Validation and Verification:

Data collection: Response rates are monitored as the responses

are collected in the field.

Frequency: Performance measures are available at the time of a

survey’s public data release.

Data storage: Survey performance data are in Census Bureau

databases and are published in public press releases and data

reports (Source and Reliability Statements in every release)

Verification: The Bureau maintains and adheres to methodological

standards that are documented and reported publicly.

Data limitations: N/A

Actions to be taken: N/A

0%

20%

40%

60%

80%

100%

120%

1997 1998 1999 2000 2001

TARGET

ACTUAL

- - - - -

D -

- .... - .... .... 

- D -

-~ -
70 FY 2001 Annual Performance Plan

Economics and Statistics Administration

The Bureau of the Census

Performance Goal 2:

Provide accurate, timely, and relevant demographic data

Measure 2.c:

Percentage reduction from time of data collection to data release for selected household

surveys

Data Validation and Verification:

Data collection: Data collection dates are published in advance.

These set the baseline for release dates.

Frequency: As scheduled.

Data storage: Census Bureau databases and public data releases.

Verification: By comparison with past release dates. Official responses to customers will verify customer satisfaction.

Data limitations: N/A

Actions to be taken: N/A

0%

20%

40%

60%

80%

100%

1998 1999 2000 2001

TARGET

ACTUAL

Strategies Activities

Develop innovative methods to reduce nonresponse Investigate the use of incentives to increase response rates

Test alternative questionnaire designs to improve

response rates

Use acceptable questionnaire testing methods to introduce

new questions and to improve existing survey instruments

Improve employee/respondent contact to increase

response rates

Participate in new employee "goal sharing" to determine

better performance incentives for field interviewer staffl

develop better respondent outreach materials

Improve data accessibility Provide data in easily accessible forms, focusing on the

Internet for immediate user access

Increase value to respondents Distribute "give back" information brochures about local

communities

Determine ways to reduce report preparation and

review process

Implement recommendations of report review process

team

Study post-collection process to determine how to

release data earlier

Extend the results of the post-collection process

improvement for CPS supplements to other surveys

Strategies and Activities

- ~ 

-- ~ 
FY 2001 Annual Performance Plan 71

Economics and Statistics Administration

The Bureau of the Census

Performance Goal 2:

Provide accurate, timely, and relevant statistical data

Resource Requirements

Total Bureau Dollars: $535 million

FY 99 Actual FY 00 Enacted FY 01 Request

$485 M $ 498 M $535 M

FTEs: 6,799

Skills Summary: Statistics, Computers, HR/Financial/Facilities/Clerical, Data Processing

IT Dollars: $200 million

IT Requirements: $362 million for mission-critical infrastructure and architecture

FY 99 Actual FY 00 Enacted FY 01 Request

5,753 6,456 6,799

FY 99 Actual FY 00 Enacted FY 01 Request

$205 M $211 M $200 M

Crosscutting Issues

Other Government Agencies

BEA, the Census Bureau, the Bureau of Labor Statistics (BLS), and the Internal Revenue Service (IRS): BEA works

closely with source data agencies, including Census, BLS, and the IRS to make them aware of BEA’s data needs

and to encourage their cooperation in meeting those needs.

Interagency Council on Statistical Policy: Under the auspices of the Office of Management and Budget, both BEA

and the Census Bureau are major participants in the Interagency Council on Statistical Policy, which works to

improve collaborative activities of federal statistical agencies. Activities of the council have led to the standardization, improved customer service, reduced respondent burden, and infrastructure sharing.

Additionally, the Census Bureau participates in numerous non-statistical federal agency activities, such as being a

data supplier, a survey collection resource, and an advisory and research resource.

External Factors and Mitigation Strategies

Survey non-response rates continue to rise, perhaps affected by public perception. The Census Bureau’s strategies

address segments of this problem. Many aspects of public non-response are beyond the Census Bureau’s control.
72 FY 2001 Annual Performance Plan

Economics and Statistics Administration

Measure 3.a:

100% of legally mandated and published data releases made on schedule

Performance Goal 3:

Conduct Accurate, Timely, Relevant, and Cost-effective Decennial Census

Rationale for Performance Goal

Improving data quality is fundamental to the Secretarial objective of enhancing our Nation’s statistical infrastructure.

Census has been designated a High-Impact Agency by the National Partnership for Reinventing Government (NPR).

The Bureau of the Census’ NPR quality goal for Census 2000 will be achieved by executing the most complete and

accurate census possible. In January 1999, the Supreme Court ruled in Department of Commerce v. United States

House of Representatives that the Census Act prohibits the Census Bureau from using statistical sampling in the

decennial census to determine the population for congressional apportionments. In response, the Census Bureau

revised the plan for Census 2000 and will use traditional census taking methods to produce apportionment counts by

December 31, 2000. This resulted in a budget request for an additional $1.7 billion for FY 2000. This includes

funding for increased coverage improvement programs and extensive quality assurance to ensure that the data

collected are accurate. These plans were developed taking into account past experience with the effectiveness of

various programs. Programs with demonstrated effectiveness were included. Ineffective or error prone methodologies were not. In their decision, however, the Supreme Court went on to say that the use of statistical sampling is

lawful for purposes other than apportionment. The Census Bureau will therefore conduct an Accuracy and Coverage

Evaluation Survey at the conclusion of the first phase of the census using modern statistical sampling techniques in

order to produce more accurate and complete numbers. The Census Bureau expects to have these statistically

corrected numbers ready by April 1, 2001, and plans to make the more accurate census counts available in a form

that allows states to use them for redistricting purposes. The more accurate counts can also be used for determining the allocation of Federal funds, and for ongoing statistical and programmatic purposes.

The Bureau of the Census

Census 2000 Milestones

2000 2001

CENSUS DAY

Accuracy and Coverage Evaluation (A.C.E.)

Conduct Data Capture Operations

Conduct Matching and Unduplication of Responses

Tabulate Data for Apportionment

Tabulate Data for Redistricting

Telephone / In -Person Interviews

Person Match / Follow-up

J F M A M J J A S O N D J F M A M J

Task Started Task Finished

Marketing / Advertising Campaign

Deliver / Mail Out Census Questionnaires

Conduct Non-Response and Coverage 

 Improvement Follow-up

PRODUCE REDISTRICTING COUNTS

Conduct Estimation

PRODUCE APPORTIONMENT COUNTS

I I • 
FY 2001 Annual Performance Plan 73

Economics and Statistics Administration

Performance Goal 3:

Conduct Accurate, Timely, Relevant, and Cost-effective Decennial Census

The Bureau of the Census

Data Validation and Verification:

Data collection The Census Bureau will use exhaustive traditional census taking methods to produce the most accurate apportionment

counts possible by December 31, 2000. The Census Bureau will then conduct an Accuracy and Coverage Evaluation (ACE) Survey at

the conclusion of the first phase of the census. People counted in the ACE will be compared with those enumerated in the census. After

the matching is completed, a field interview will reconcile selected cases. Following that, the Bureau will use modern statistical methods

to produce more accurate census counts statistically corrected numbers ready by April 1, 2001, and plans to make the more accurate

census counts available in a form that allows states to use them for redistricting purposes. The more accurate counts can also be used

for determining the allocation of Federal funds, and for ongoing statistical and programmatic purposes.

Frequency The measure will be obtained when legally mandated data are relased on schedule.

Data storage Internal Census databases

Verification The Bureau will adhere to a statistical methodology that is well documented and reported publicly.
74 FY 2001 Annual Performance Plan

Economics and Statistics Administration

Strategies and Activities

Performance Goal 3:

Conduct Accurate, Timely, Relevant, and Cost-effective Decennial Census

BUDGET

FRAMEWORK ACTIONS BUDGETREQUEST

Program

Development and

Management

This category reflects the many activities associated with

headquarters management, administrative, integration, and

reporting requirements for Census 2000. As a result of the

Supreme Court ruling, Census 2000 has become a considerably

larger and more complex program requiring extended

headquarters management capacity.

$35M

Data Content and

Products

In FY 2001, work will focus on disseminating Census 2000

products. The Bureau will review, certify and deliver the Census

2000 data tabulations. The data to apportion Congressional

seats will be delivered to the President by December 31, 2000

and redistricting data as required by P.L. 94-171 will be delivered

to the States. We will begin to disseminate Census 2000 data via

the American Factfinder system for the full range of Census users.

The Bureau will also prepare and disseminate geographic

products such as county, block maps, census tract outlines maps,

county subdivision outline maps and many summary and profile

products.

$63M

Field Data

Collection and

Support Systems

The Bureau will maintain the support systems needed for final

Census 2000 data collection, evaluation programs and orderly

closing of census offices, disposition of assets and resolution of

any personnel and operational issues. This includes the field work

associated with Accuracy and Coverage Evaluation (A.C.E.)

survey person follow-up and final housing unit follow-up operations.

A.C.E. is the coverage measurement methodology that enables

the Bureau to assess the effectiveness of Census 2000 and to

publish final census data below the state-level for use in

redistricting activities, distribution of Federal funds and many other

purposes.

$156M

Address List

Development

The Bureau must begin to update the basic software environment

in which the TIGER database functions. In FY 2001, the Bureau

will evaluate commercially available software for the conversion.

$5M

Data Processing

and

Telecommunications Support

The Bureau will process the Coverage Improvement Follow-up

and Accuracy Coverage Evaluations operations data. The Bureau

will archive census questionaires, data capture information

collected for evaluating census operations, data key census long

form questions that fail edit checks, conduct computer and clerical

coding of write-in responses, perform A.C.E. computer and

clerical matching operations, and create a central repository for

metadata.

$123M

Testing, Evaluations

and Dress

Rehearsal

The Bureau will implement the evaluation program designed to

obtain information about the quality of Census 2000 data to

provide for future census planning. The evaluations will be

released in the form of a Report Card on Census 2000.

$81M

Puerto Rico, Virgin

Islands and Pacific

Areas

The Bureau will complete data collection and processing activities

including questionaire check-in, data capture and processing.

Creation of Census 2000 data products and final close-out of

offices will also occur in this activity.

$6M

Marketing,

Communications

and Partnerships

The effectiveness of field outreach and promotion programs and

the Census in Schools program will be evaluated. $10M
FY 2001 Annual Performance Plan 75

Economics and Statistics Administration

Resource Requirements Summary

Total Bureau Dollars: $393 million

FY 99 Actual FY 00 Enacted FY 01 Request

$1,079 M $4,468 M $393 M

Performance Goal 3:

Conduct Accurate, Timely, Relevant, and Cost-effective Decennial Census

The Bureau of the Census

FTEs: 6,112

Skills Summary: Statistics, Computers, HR/Financial/Facilities/Clerical, Data Processing

FY 99 Actual FY 00 Enacted FY 01 Request

14,886 98,460 6,112

IT Dollars: $106 million

IT Requirements: $362 million for mission-critical infrastructure and architecture

FY 99 Actual FY 00 Enacted FY 01 Request

$214 M $407 M $106 M

Cross-Cutting Issues

Other Government Agencies

BEA, the Bureau of the Census, Bureau of Labor Statistics (BLS), and the Internal Revenue Service (IRS): BEA

works closely with source data agencies, including Census, BLS, and the IRS, to make them aware of BEA’s data

needs and to encourage their cooperation in meeting those needs.

Interagency Council on Statistical Policy: Under the auspices of the Office of Management and Budget, both BEA

and the Bureau of the Census are major participants in the Interagency Council on Statistical Policy, which works to

improve collaborative activities of federal statistical agencies. Activities of the council have led to standardization of

data and concepts, transfers of technology, methodology exchange, collaborative research, process improvement,

improved customer service, reduced respondent burden, and infrastructure sharing.

Additionally, the Bureau of the Census participates in numerous non-statistical federal agency activities, such as

being a data supplier, a survey collection resource, and an advisory and research resource. In conducting Census

2000, the Bureau is working closely with the U.S. Post Office to develop and update the census address list, and

the Office of Management and Budget has established the Census Address List Appeals Office, which allows local

and tribal governments to appeal final determinations made by the Census Bureau regarding suggested housing unit

additions.

External Factors and Mitigation Strategies

Survey non-response rates continue to rise, perhaps affected by public perception. The Census 2000 Partnership and

Marketing Program is a multi-faceted effort to remind the general population about the census, educate those members

of the public who do not understand the purpose of the census and its significance to their communities, and motivate

them to complete their census questionnaires. The Census Bureau recognizes that different segments of the population

respond in different ways with different levels of trust and willingness to participate in the census. The Partnership and
76 FY 2001 Annual Performance Plan

Economics and Statistics Administration

Performance Goal 3:

Conduct Accurate, Timely, Relevant, and Cost-effective Decennial Census

The Bureau of the Census

Marketing Program incorporates five components designed to reach these populations in the manner most appropriate to

each. Together, these components provide many vehicles to reach people many times in the places where they live,

work, go to school, and play.

The components of the Partnership and Marketing Program include:

1. The establishment of partnerships with state, local, and tribal governments; community-based organizations;

media and the private sector. Just as corporations have been developing partnerships with their suppliers and

customers to improve their operations, the Census Bureau recognizes the value of local knowledge and has

developed partnerships with stakeholders to improve the census. The goal of the partnership program is to

increase the mail response among people who historically have not been persuaded by direct mail, advertising or

other methods.

2. A direct mail campaign designed to draw attention to the census questionnaire when it arrives in people’s

mailboxes.

3. A paid advertising campaign to generate awareness about Census 2000 via print, broadcast and outdoor advertising. For the first time ever, the Census Bureau is using paid advertising to increase participation in the census.

There is a concerted effort in the advertising campaign to reach out to every person living in the United States,

Puerto Rico and the island areas. The ads for television, radio and print have been created in 17 different

languages to reach the many non-English speaking communities.

4. A media relations campaign to encourage positive, informative coverage emphasizing the importance of responding to the census.

5. Promotions and special events to provide non-threatening, fun, educational activities in communities and schools,

particularly in hard-to-enumerate areas.

In addition, the Census Bureau will also implement the Census 2000 language program, which is designed to help raise

the response rate among foreign- language-speaking households. Census forms will be available in five languages other

than English: Spanish, Chinese, Korean, Tagalog, and Vietnamese. In addition, language guides will be available in

nearly 50 languages, including Spanish. Respondents can use these guides to assist them in answering the questionnaire that is mailed to them. The mailing strategy for Census 2000 is composed of three phases: households will

receive an advance letter, then the questionnaire, and finally a reminder card. Upon receipt of the advance letter, the

respondent has the option to request a questionnaire in Spanish or one of four other languages, which they can complete in place of the English questionnaire. The advance letter will include instructions in each of the languages mentioned above. By checking the appropriate box and returning the advance letter to the National Processing Center in the

enclosed self addressed envelope, respondents can expect to receive a questionnaire in the selected language approximately one week later.

If the respondent does not care to return the advance letter requesting a specific language questionnaire within a week of

receipt, they can contact a local Questionnaire Assistance Center for a translation guide to assist them in completing

the English form. These guides will be distributed to our local and regional census offices and will be provided to local

community groups and organizations by our local partnership specialist. They also will be available upon request by

calling a toll free 1-800 number, which will include Spanish instructions on the automated voice mail menu system. In

addition, the Questionnaire Assistance Centers will include bilingual staff familiar with the communities they serve, and a

Census 2000 Language Identification Flashcard will be available to assist these staff members and respondents with

identifying which language is spoken in the respondent’s household. The Census Bureau is confident that its language

program is the most effective way to ensure that linguistically isolated households receive the assistance they need to

be enumerated in Census 2000.
FY 2001 Annual Performance Plan 77

International Trade Administration

International Trade Administration

The Department of Commerce’s International Trade Administration (ITA) works within the Federal government to

build the American economy by promoting U.S. foreign trade. ITA supports the business community by helping

U.S. companies to export, partnering with industry, opening markets, and leveling the playing field for the international exchange of goods and services. ITA’s four operational areas span both exports and imports, enabling ITA to

serve as a complete source of international trade information and assistance for businesses. ITA’s Trade Information Center and the Trade Compliance Center provide critical information to businesses to help in their export trade

activities. ITA also plays a significant role in ensuring fair competition from imports.

In addition to maintaining a close relationship with U.S. businesses, ITA works with other government agencies and

multilateral organizations to formulate trade policies and monitor market access and compliance with U.S. international trade agreements. These organizations include the Department of State, the Department of Treasury, the

U.S. International Trade Commission, and the U.S. Trade Representative, as well as the World Trade Organization,

the Organization for Economic Cooperation and Development, and the United Nations.

An ITA task force is currently formulating a new vision statement for incorporation in the Strategic Plan. Once the

task force has completed its work, the accepted vision statement will be available for all GPRA-related documents.

In an increasingly global economy, the role of exports in sustaining a robust economic infrastructure continues

to grow. Exports support over 11 million U.S. jobs, including one in five manufacturing jobs. In recent years,

export-related jobs are paying wages fifteen percent higher than the average U.S. wage. The competitive nature

of the global marketplace raises challenges for ITA in leveling the playing field for U.S. businesses abroad and

helping to remove tariff and non-tariff barriers to trade. Toward this end, ITA will carry out the Secretary’s

Broadening Trade initiative by breaking into new and under served international markets, while expanding the

export support of small and medium-sized businesses.

ITA’s priorities are derived directly from the Departmental priorities. These priorities guide the development of ITA

program initiatives, which are listed below.

• Increasing Manufacturers Exports Through E-Exporting initiative

This initiative launches a comprehensive e-commerce program to close the gap between manufacturers’

export potential and actual performance.

Mission Statement

An ITA task force is currently formulating a new mission statement for incorporation in

the Strategic Plan. Once the task force has completed its work, the accepted mission

statement will be available for all GPRA-related documents.

Priorities
78 FY 2001 Annual Performance Plan

International Trade Administration

• E-Commerce initiative

This initiative is designed to bring small- and medium-sized businesses into exporting via virtual trade

missions and trade shows.

• Clean Energy and Environmental Exports initiative

This initiative focuses attention on one of the most critical aspects of environmental need – clean energy and

energy efficiency. It will be closely coordinated with the technology development and commercialization

programs of the Technology Administration and the National Oceanic and Atmospheric Administration.

• Exporter Data Base Enhancement initiative

This initiative develops an array of statistics that measure the involvement of U.S. firms in export markets

and the impact of exports on states, metropolitan and rural areas.

• Expand Trade Compliance, Including Import Surge Monitoring, Expedited Investigations and Subsidies

Enforcement

This initiative enhances the vigorous enforcement of the antidumping (AD) and countervailing duty (CVD)

laws by enabling Import Administration to implement critical U.S. trade policy initiatives and new requirements set forth in the Uruguay Round Agreements Act. It also expands the Market Access and Compliance unit’s efforts to ensure foreign compliance with the trade agreements we have negotiated.

• Cultural Heritage Community Development Export initiative

ITA is proposing an initiative in response to the President’s 1998 call for a renewed effort to promote economic prosperity in Native American and other communities through stimulation of increased American

cultural heritage tourism. Our Native American project, to be conducted in conjunction with the Department

of the Interior, is aimed at assisting Native Americans to benefit from the economic activities travel and

tourism can bring as part of their overall economic development plans. In this regard, ITA will also continue

to aid Native Americans to become exporters, enter new markets, and increase exports in established

markets.

Management Challenges

The most significant challenge facing ITA is in the area of financial management.

ITA has not been able to comply with the requirements of the CFO Act of 1990. A number of material weaknesses

in ITA’s financial management systems and procedures have been identified. The ITA CFO is currently overseeing

efforts to correct material weaknesses and obtain an unqualified (clean) audit opinion. Specifically, ITA expects to

obtain a clean opinion on the Balance Sheet for FY 1999. We also expect to obtain a clean opinion on the remainder of our financial statements for FY 2000.

During FY 1999, ITA took a number of significant steps toward eliminating material weaknesses in financial management including:

• Appointed a Chief Financial Officer in September 1999 and Deputy Chief Financial Officer in January 1999.

These individuals provided the proper financial management control over ITA financial operations. This

includes all aspects of accounting operations, financial management, financial systems, and budget formulation and execution process.

• Transferred the accounting operations and financial support services to the Department of Interior’s National

Business Center. This action provided ITA with the unification of transaction processing into one accounting

application under one organization ensuring the integrity of its financial accounting process.
FY 2001 Annual Performance Plan 79

International Trade Administration

• Transferred responsibility for domestic payments to the Department of Interior’s National Business Center.

This action allowed ITA to process payments from a single location improving management and internal

controls over the quality of the payment functions.

• Implemented standardized financial policies and procedures for overseas posts in support of the CFO Act

requirements. In conjunction with the dissemination of these new policies and procedures, ITA conducted

the necessary training in headquarters and overseas to ensure the proper application of these procedures is

followed. Also, ITA introduced, deployed, and installed the new Overseas Transaction Database providing a

uniform, standard bookkeeping record that the overseas posts can use to monitor remaining budgets, open

obligations, and receivables. This new system has been very useful in closing accounting records and

ensuring ITA has the proper obligations recorded for year-end closing of its financial statements.

• Established a credit card network for domestic and overseas allowing ITA to make collections online by

credit card. This process will provide the best combination of control, functionality, information reporting,

and funds availability for ITA’s collections program.

• Developed a new coding structure to track ITA’s financial activities within the Federal Financial System

administered by the National Business Center. This new coding structure, based on “smart-code” concept,

captures multiple items including performance measure activity. Moreover, each disbursement and expense

document has a unique number that can be traced back to the appropriate project through the new coding

structure.

• Established detailed procedures for achieving a financial year-end close efficiently and accurately. These

procedures ensured that financial records accurately reflect ITA’s use of resources and utilization of budget

authority.

External Challenges

ITA will face significant external challenges as it embarks on its path in the new millennium. Among these challenges

will be the impact of the fast-paced trend toward globalization. As the world becomes increasingly interconnected,

ITA will be forced to work harder to monitor, promote, and ensure equal access to international trade for U.S.

businesses. Complicating this matter is the heated political environment stemming from the World Trade Organization negotiations in Seattle this past December. The argument around protectionism versus free trade will continue

to be a source of both domestic and international contention throughout the coming years. In addition, weak economics abroad and the rising value of the U.S. dollar could limit the growth of U.S. exports in the near term.
80 FY 2001 Annual Performance Plan

International Trade Administration

Trade Promotion

Coordinating

Committee Secretariat

Under Secretary for

International Trade

Deputy Under Secretary for

International Trade

Office of Legislative

and Intergovernmental

Affairs

Chief Financial Officer

and Director of

Administration

Chief Counsel for

International

Commerce

Chief Counsel for

Import Administration

Office of Public

Affairs

Assistant Secretary

for Market Access

and Compliance

Assistant Secretary

and Director General

of the U.S. and

Foreign Commercial

Service

Assistant Secretary

for Trade

Development

Assistant Secretary

for Import

Administration

Counselor to the

Department

Organizational Structure

I I 

I I 
FY 2001 Annual Performance Plan 81

International Trade Administration

Highlights of the International Trade Administration FY 2001 Performance Plan

Performance Goal 1: Enforce U.S. trade laws and agreements to promote free and fair trade

Measure FY 99 Actual FY 00 Target FY 01 Target

Dollar Value of Market Openings $2.3 B $2.0 B $2.4 B

Performance Goal 2: Increase the number of small business exporters

Measure FY 99 Actual FY 00 Target FY 01 Target

New-to-Export Firms 42,351 36,066 36,949

Performance Goal 3: Implement the President's National Export Strategy in conjunction with

the Trade Promotion Coordinating Committee (TPCC)

Measure FY 99 Actual FY 00 Target FY 01 Target

New-to-Market Firms 67,835 64,914 66,187

Counseling Sessions 296,769 292,822 288,479

Performance Goal 4: Strengthen and institutionalize ITA's trade promotion and trade

advocacy efforts

Measure FY 99 Actual FY 00 Target FY 01 Target

Dollar Value of Gross Exports Supported $9.8 B 10.5 B $11.0 B

Targets and Performance Summary
82 FY 2001 Annual Performance Plan

International Trade Administration

Total FY 1999 Dollars: $357.1 Million

Total FY 1999FTEs: 2,422

Skill Summary: In-depth knowledge of international and domestic trade laws and regulations, in addition to country/industry-sector expertise; specialized knowledge of and experience in export marketing

and promotion, foreign trade practices, and foreign government trade programs and policies.

Total IT Dollars: 21.9 Million

IT Requirements: Infrastructure and related mission systems

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Enforce U.S. trade laws and agreements to

promote free and fair trade $56.3 M $52.0 M $60.2 M

Increase the number of small business exporters $155.2 M $143.4 M $166.1 M

Implement the President's National Export Strategy

in conjunction with the Trade Promotion

Coordinating Committee (TPCC)

$65.5 M $60.6 M $70.1M

Strengthen and institutionalize ITA's trade

promotion and trade advocacy efforts $56.8 M $52.5 M $60.7 M

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Enforce U.S. trade laws and agreements to

promote free and fair trade 390 394 408

Increase the number of small business exporters 1,076 1,086 1,126

Implement the President's National Export Strategy

in conjunction with the Trade Promotion

Coordinating Committee (TPCC)

454 459 476

Strengthen and institutionalize ITA's trade

promotion and trade advocacy efforts 393 397 412

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Enforce U.S. trade laws and agreements to

promote free and fair trade $3.9 M $3.7 M $3.7 M

Increase the number of small business

exporters $10.8 M $10.1 M $10.2 M

Implement the President's National Export Strategy

in conjunction with the Trade Promotion

Coordinating Committee (TPCC)

$4.6 M $4.3 M $4.3M

Strengthen and institutionalize ITA's trade

promotion and trade advocacy efforts $4.0 M $3.7 M $3.7 M

Resource Requirements Summary
FY 2001 Annual Performance Plan 83

International Trade Administration

Rationale for Performance Goal

This goal supports the Broadening Trade initiative as follows:

• Import Administration (IA) unit impartially enforces U.S. antidumping and countervailing duty (AD/

CVD) laws to ensure that American businesses and workers face a level playing field in the

domestic market versus foreign competitors.

• Subsidy Enforcement Office coordinates the Administration’s subsidies enforcement efforts to

ensure that U.S. exporters are not harmed by subsidized foreign competition.

• Market Access and Compliance (MAC) unit identifies existing and potential market access problems. MAC also initiates U.S. government action to overcome market access obstacles within

different countries and regions.

• A key element in these efforts is ITA’s Trade Compliance Center (TCC) , which monitors foreign

compliance with over 250 trade agreements the U.S. has in force.

• Trade Development (TD) unit monitors international trade agreements, governing imports of essential items, such as steel, rubber, coal, computers, supercomputers, autos and auto parts, textiles

and a broad range of consumer goods. TD also articulates U.S. industries’ needs and concerns to

American negotiators of international trade agreements and provides support for negotiating

strategies.

Measure 1.a:

Value of Market Openings 350500

2,300

2,000

2,400

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1997 1998 1999 2000 2001

Millions

Actual Target

Explanation

This measure reflects the dollar value of opening world markets to U.S. exports by reducing and eliminating

barriers to trade. Companies experiencing difficulty in accessing a foreign market engage MAC’s help to gain

entry. The Trade Compliance Center (TCC) works in conjunction with MAC’s regional units in solving compliance problems. Dollar Value of Opening World Markets is one measure of MAC and ITA’s efforts to help

promote fair trade in global markets. MAC’s two major activities; identify and combat market access barriers

and monitor foreign compliance with U.S. trade agreements, to expand market opportunities for U.S. firms and

workers. By monitoring and enforcing existing trade agreements, companies can receive the full benefit of

these agreements and are able to export fairly in markets that were previously closed or put U.S. firms at a

competitive disadvantage.

Performance Goal 1:

Enforce U.S. Trade Laws and Agreements to Promote Free and Fair Trade

Data Validation and Verification:

Data collection: Companies benefiting from

market access sessions

Frequency: Annually, by fiscal year

Data storage: TCC will store and publish data

Verification: Each case handled by MAC is

supported by varying degrees of economic

analysis. The data in these analyses is usually a

projection of potential growth in the U.S. share of

the foreign market for both the company involved

and for U.S. industry as a whole. Collaboration

with the Commercial Service and the industry

specialists in Trade Development is critical in the

market analysis and serve as a “double check”

on the data. Data from each case is maintained

by both the country/regional desk and the Trade

Compliance center. Since the data in these

cases are usually estimates of future growth, a

number of factors, including global trade trends

and political developments would impact the

actuals.

I• □ 
84 FY 2001 Annual Performance Plan

International Trade Administration

Resource Requirements Summary

Total Dollars: $60.2 Million

FY 99 Actual FY 00 Enacted FY 01 Target

$56.3 M $52.0 M $60.2 M

No program evaluation studies were conducted in FY 1999 which supported the subject performance goal.

Strategies Activities

MAC has two general strategies; institute

careful monitoring of U.S. bilateral and

multilateral trade agreements, and constant

efforts to educate the business community on

their rights under existing trade laws

In support of monitoring, MAC will continue to

participate actively in bilateral and multilateral

meetings, negotiations and consultations and

address all relevant disputes. In support of

efforts to educate, MAC will continue to counsel

clients on how to receive the full benefits of

existing trade agreements

IA's strategy focuses on the effective

administration of the U.S. Antidumping (AD)

and Countervailing Duty (CVD) laws (Tariff Act

of 1930, as amended) and agreements

negotiated to address sector-specific trade

distorting practices

Pursuant to the Tariff Act of 1930, as amended,

IA conducts the following AD/CVD case

activities: investigations, administrative

reviews, sunset reviews and suspension

agreements. In further support of this strategy,

IA has implemented and will continue to

support the following measures to enhance

AD/CVD program effectiveness: monitoring of

significant import surges, expediting of

investigations under certain circumstances and

enhanced subsidy enforcement activities.

TD's strategy will focus on providing the

analytical support for the new round of global

trade negotiations and secure feedback from

U.S. industry on foreign compliance with

international trade agreements.

Expand ITA's analytical infrastructure to support

timely and accurate assessments of (1) the

impact on U.S. industries of the

removal or reduction of U.S. tariffs and other

barriers and (2) the impact of foreign trade

barriers on exports by U.S. industry sectors.

Develop strategies to support trade

negotiations and strengthen the positions of

U.S. trade negotiators. Enhance the role of the

Industry Sector Advisory Committees in

providing feedback on trade policy and trade

agreement compliance.

Program Evaluation Efforts

Strategies and Activities
FY 2001 Annual Performance Plan 85

International Trade Administration

Total FTEs: 408

Skill Summary: In-depth knowledge of international and domestic trade laws / regulations in

addition to country / industry-sector expertise

Total IT Dollars: 3.7 Million

FY 99 Actual FY 00 Enacted FY 01 Target

390 394 408

FY 99 Actual FY 00 Enacted FY 01 Target

$3.9 M $3.7 M $3.7 M

Crosscutting Issues

Intra-DOC

• Office of General Counsel: Work together on guidance for interpreting existing agreements, defining the

rights of U.S. firms and workers under U.S. and international trade law, and in negotiations for future bilateral/multilateral agreements.

Other Government Agencies

• U.S. Trade Representative (USTR): ITA works with the USTR to develop strategies for solving market

access disputes and participates with USTR in major trade negotiations. ITA and the USTR jointly administer the Industry Consultations program, consisting of 20 trade advisory committees, which provide input to

the Government on trade policy issues. IA works closely with U.S. industry to analyze potential subsidy

practices that might violate the subsidies agreement of the Uruguay Round Agreement Act of 1994 (URAA)

and cause harm to U.S. industry. Based upon this analysis, IA will prepare a recommendation that USTR

take action before the World Trade Organization (WTO). IA and the USTR issue a joint annual report to

Congress on both agencies’ subsidies enforcement activities. MAC also supports trade policy initiatives

initiated by USTR, frequently providing the bulk of the analysis, expertise, and staff support needed to

achieve negotiating objectives.

• International Trade Commission: In an antidumping (AD) or countervailing duty (CVD) case, IA conducts

the investigation and ITC concurrently conducts the industry injury investigation. If both IA’s and ITC’s

investigations result in affirmative determinations, then IA issues an AD/CVD order to the U.S. Customs

Service which results in a tariff rate adjustment.

• U.S. Customs Service: Because the AD/CVD law requires collection of offsetting duties at the time

merchandise enters the country, IA communicates regularly with Customs to ensure the prompt and

accurate implementation of IA’s decisions. Customs then collects cash deposits and final duty assessments. IA responds to inquires from Customs’ headquarters and port offices regarding the scope and

potential evasion of AD/CVD orders, as well as other enforcement concerns.

• Department of Treasury: IA works closely with Treasury to monitor subsidy-related commitments contained

in the IMF stabilization packages.
86 FY 2001 Annual Performance Plan

International Trade Administration

All trade is subject to sharp changes in economic performance in markets around the world, national/ international

politics, technological advances and large scale, unexpected capital movement. MAC staff has and will continue to

identify these changes and adapt policies which continue to promote expanding overseas markets for U.S. firms and

workers. The recent explosion of e-commerce provides an example of how interagency collaboration has helped

shape a level playing field for U.S. exporters in this dynamic field.

External Factors and Mitigation Strategies

• Department of State: In AD/CVD proceedings, IA verifies information provided by foreign governments and

companies in those countries. IA works closely with the Department of State to obtain country clearances,

arrange meetings, and make necessary trip arrangements. In addition, IA works with State to obtain

pertinent information on subsidy enforcement issues. MAC works on a daily basis with the State Department, U.S. embassies abroad — including State Department Economic Officers as well as U.S. and

Foreign Commercial officers—to implement strategies for removal of foreign trade barriers to U.S. exports.

• Department of Justice: IA, in conjunction with the Office of the General Counsel, works with Justice’s

attorneys on pending AD/CVD litigation before the Court of International Trade and the Court of Appeals for

the Federal Circuit.

Government/Private Sector

The President’s Export Council, chaired by the Secretary of Commerce, advises the President on trade policy

issues. Its membership includes 28 CEOs of private-sector companies, senior officials of eight Federal agencies

(Commerce, State, Treasury, Labor, Agriculture, SBA, Export-Import Bank and USTR) and 10 Congressional representatives.
FY 2001 Annual Performance Plan 87

International Trade Administration

Rationale for Performance Goal

Recently released data indicate that U.S. export assistance efforts are paying off. The number of SME exporters

increased from 108,000 in 1992 to 238,000 in 1998, an average annual increase of 13.4 percent. But more work

needs to be done. About 63 percent of SMEs export to only one market; and 87 percent export to four countries, or

less.

US&FCS targets its products and services to the unique needs of small- and medium-sized enterprises (SMEs).

US&FCS provides the types and levels of assistance that smaller companies need to begin exporting for the first

time, or to enter new export markets or regions. Export assistance products and services are offered on a costrecovery basis, providing SMEs with the services of a sophisticated international network, at a price they can afford.

ITA’s Trade Development unit sponsors export financing workshops to address the resource needs of SMEs. TD’s

Trade Information Center operates a trade “hotline” that provides information, referrals and country counseling to a

mostly SME clientele. TD’s Market Development Cooperator Program provides funds to support innovative export

marketing by trade and nonprofit associations, with largely SME memberships. TD co-chairs (with USTR) the

Federal Government’s only Trade Advisory Committee for SMEs.

Increasing the number of SME exporters is a more specific aspect of broadening trade. Generic “broadening of

trade” refers to providing export assistance and advocacy to all U.S. businesses - small and large - with the

overarching goal of increasing the raw amount of U.S. exports. Increasing the number of SME exporters refers to

getting small companies into the business of exporting, which has overarching goal of increasing the numbers of

firms selling in export markets (regardless of the value of the transaction). The two goals have the same general

focus, but approach it from different angels - increasing the dollar value of exports versus increasing the number of

exporters.

Collecting statistics on NTE firms shows whether or not US&FCS is achieving its goal of increasing the number of

SME exporters. The measure refers to the number of firms that use or participate in ITA activities that facilitate

exports.

Performance Goal 2:

Increase the Number of Small Business Exporters
88 FY 2001 Annual Performance Plan

International Trade Administration

Measure: Number of New-to-Export Firms

A number of program evaluation studies were conducted which indirectly supported the subject performance goal.

Specifically: Management and Program Reviews (MPRs) of day-to-day operations were completed. These covered

systems, procedures, and practices at three of ITA’s foreign posts – Malaysia, Nigeria, and the Dominican Republic. 10,02125,43042,351 36,066 36,940

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1997 1998 1999 2000 2001

Actual Target

Program Evaluation Efforts

Data Validation and Verification:

Data collection: US&FCS’ Client Management System (CMS) and

the Office of Trade Events Management (OTEM) Also, TD’s

Office of Export Promotion Coordination, Promotion Planning and

Support Division (PPSD) collects data that is provided by

participants in overseas trade events and reported by project

managers of trade events.

Frequency: Statistics harvested and reported quarterly and

annually

Data storage: US&FCS’ custom-designed Client Management

System software operating on a Lotus Notes platform and OTEM.

Consolidated figures collected and stored by US&FCS Office of

Planning. Data is maintained in PPSD database operating on

Lotus Notes platform.

Verification: Client contacts and office activity are recorded and

entered into CMS and OTEM upon occurrence. Each office

compiles a quarterly Export Action Report, which details numbers

of NTE and NTM export actions, client counseling sessions (both

in-office visits and out of office visits), and other activities. Each

office manager reviews, verifies, and signs the reports. Data is

verified by project managers and PPDS.

Data Limitations: Although US&FCS assists thousands of small

businesses that are new to exporting each year, it can be

difficult to quantify our successes. US&FCS’ collection of data to

measure numbers of clients who successfully export for the first

time as a result of US&FCS assistance is wholly dependent on a

client’s willingness to provide such information. Many clients

elect not to provide information to US&FCS due to business

proprietary concerns. Additionally, because actual exports occur

subsequent to the delivery of US&FCS services (frequently 12 to

18 months later), it is difficult to match outputs with outcomes in a

12-month period. Additionally, it is extremely difficult to track the

actual dollar value of exports supported by US&FCS services

because businesses are reluctant to reveal their business

proprietary information to the federal government or to have their

success stories published for competitors to read. Because of

the difficulty in reliably measuring outcome performance, US&FCS

instead tracks numbers of firms new to the export market as

circumstantial evidence of overall export growth and exportfueled job creation. Data from NTEs/NTMs participating in some

domestic trade events many not be included, resulting in the

underreporting of the actual numbers of NTEs/NTMs firms

assisted by ITA.

Performance Goal 2:

Increase the Number of Small Business Exporters

I• □ 
FY 2001 Annual Performance Plan 89

International Trade Administration

Total Dollars: $166.1 Million

Total FTEs: 1,126

Skill Summary: In-depth knowledge of export marketing and promotion, foreign trade practices,

and foreign government trade programs and polices

Strategies Activities

Achievable activities for E-commerce:

US&FCS plans to use virtual trade shows,

webcasting, "push" technologies, and enhanced

website applications to support the goal.

Actionable items for targeted assistance:

US&FCS is undertaking an internal initiative to

improve its existing products and services to

meet the needs of its SME clients. US&FCS is

also creating and testing new products explicitly

designed to meet the specialized needs of

SMEs and minority-owned firms.

Build public/private sector partnerships to

energize SMEs to begin conducting business

on the Internet and the World Wide Web.

Develop an Executive Export Management

Certificate Program for SMEs.

Implement an intra-agency tourism development

effort, in coordination with the Bureau of Indian

Affairs, utilizing cultural heritage tourism as a

tool for economic development and export

growth.

· Organize trade education outreach conferences to

educate SMEs on the benefits of exporting and the

services provided by the U.S. government

· Conduct a multi-media instruction program for SMEs,

using video-conferencing and educational video tools, to

provide knowledge of foreign markets and broaden

awareness of opportunities in specific emerging markets

· Provide commercial intelligence reports and marketproduct matching services to guide SMEs in selecting

and promoting their products to specific targeted

markets

· Develop an Internet-Based Market Penetration

Program, enabling SMEs to participate in low-cost

export marketing vehicles, such as virtual trade shows

· Provide advocacy support tailored to SMEs through

creation of Internet-based matching service that will bring

together prime international contractors on major foreign

projects and SMEs who can serve as their

subcontractors, suppliers and consultants.

· Implement aggressive Information Technology (IT)

outreach effort, matching IT firms with relevant

technologies to developing countries' special needs;

working with NIST, conduct seminars to educate targeted

developing markets on how to use IT to improve their

economies.

· Expand Market Development Cooperator Program to

include special E-Exporting Awards Competition,

showcasing innovative SME efforts to conduct business

via the Internet and World Wide Web.

· Develop and operate Internet -based tariff and trade

information system covering import assessments, tariffs

and other regulatory data to help U.S. manufacturers

deliver products to their foreign clients.

FY 99 Actual FY 00 Enacted FY 01 Target

$155.2 M $143.4 M $166.1 M

FY 99 Actual FY 00 Enacted FY 01 Target

1,075 1,086 1,126

Strategies and Activities

Resource Requirements Summary

Performance Goal 2:

Increase the Number of Small Business Exporters
90 FY 2001 Annual Performance Plan

International Trade Administration

Total IT Dollars: $10.2 Million

IT Requirements: IT infrastructure and related mission systems

Intra-DOC

· National Institute of Standards and Technology: Coordinate technology commercialization efforts with

Manufacturing Extension Program

· Minority Business Development Administration: Work together to craft and implement Urban Export Initiative

for minority-owned businesses.

· Office of General Counsel: Work together on guidance for interpreting existing agreements, defining the

rights of U.S. firms and workers under U.S. and international trade law, and in negotiations for future bilateral/multilateral agreements.

Other Government Agencies

· Small Business Administration (SBA): Share clients to provide complementary counseling services

· Ex-Im Bank: Share clients and provide complementary counseling services

· State/Local Government Agencies: Share clients and proved complementary counseling services

· Local Chambers of Commerce: Share clients and provide complementary counseling services

· Department of Energy : DOE provides industry expertise for US&FCS trade events

· Department of Defense/USAF: The Air Force provides industry expertise for ITA trade events involving

aircraft sales (e.g., the Paris Air Show)

· Department of Transportation: DOT provides industry expertise for US&FCS trade events

· Department of Education: Education provides industry expertise for US&FCS trade events

· Department of State: State’s Economic Officers assist with market research projects in countries where

US&FCS does not maintain staff

· Department of Agriculture (USDA): USDA provides grant assistance for US&FCS export counseling in rural

areas

· Bureau of Indian Affairs (BIA): BIA provides industry expertise for ITA tourism development efforts

· USAID: Provides grant assistance for various overseas projects (e.g., American Business Centers in

Russia)

ITA’s success in achieving this goal is dependent upon domestic and international economic conditions. A weak

domestic economy or a weak dollar abroad tends to make overseas markets more financially attractive to U.S.

firms. Conversely, a strong dollar or a weak overseas economy can cause export-ready firms to delay their

exporting efforts. US&FCS trade specialists use their expertise to help SMEs develop trade strategies that take into

account adverse economic conditions.

Tracking the achievements and problems of new small business exporters is dependent on clients’ provision of this

information. Trade specialists communicate to their clients the relationship between US&FCS’ ability to provide

services to clients (especially business facilitation services with no charge) and US&FCS’ ability to demonstrate

measurable results. While trade specialists in the field urge firms to provide this data, there is no obligation on the

part of the firm to do so.

FY 99 Actual FY 00 Enacted FY 01 Target

$10.8 M $10.0 M $10.2 M

Crosscutting Issues

External Factors and Mitigation Strategies

Performance Goal 2:

Increase the Number of Small Business Exporters
FY 2001 Annual Performance Plan 91

International Trade Administration

Rationale for Performance Goal

This goal supports the Broadening Trade initiative. One of President Clinton’s highest priorities has been to provide

greater economic opportunities for all Americans. In pursuit of this goal, the Administration developed this country’s

first-ever National Export Strategy to ensure that U.S. workers and businesses are able to profit from export opportunities in markets throughout the world. The Export Enhancement Act of 1992 mandates that the Secretary of

Commerce, as chairperson of the Trade Promotion Coordinating Committee (TPCC), submit an annual report to

Congress describing the status of the strategic plan developed by the TPCC. The TPCC has since submitted a

National Export Strategy Report to Congress each year. The Strategy focuses on streamlining and strengthening

government trade promotion and finance programs, regional trade promotion strategies, responses to foreign competitive practices that threaten fair and competitive market access, and initiatives that give exporters access to the

tools they need to compete in the global marketplace.

The Trade Promotion Coordinating Committee (TPCC) was established by Congress under the Export Enhancement

Act of 1992. In 1993, President Clinton issued an Executive Order formally establishing the TPCC and setting out

its terms: it would be composed of 20 government agencies, chaired by the Secretary of Commerce, and would

issue an annual Report to Congress articulating our National Export Strategy. In November 1993, the TPCC established a Secretariat in the Office of the Under Secretary for International Trade to provide a permanent point of

contact for U.S. government agencies or private sector representatives seeking information on TPCC activities or who

wish to rapidly place an issue on the TPCC’s agenda. The TPCC agencies meet throughout the year at the principal

(agency heads), deputy, and staff levels. As the Deputy Chair of the TPCC, the Under Secretary for ITA plays an

active role in shaping the TPCC agenda. The Secretariat is also responsible for coordinating the development and

monitoring of the implementation of the National Export Strategy.

Measure 3.a:

Number of New-to-Market Firms 33,95749,04267,835 64,914

66,187

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

1997 1998 1999 2000 2001

Actual Target

Performance Goal 3:

Implement the President’s National Export Strategy in Conjunction with the

Trade Promotion Coordinating Committee (TPCC)

Data Validation and Verification:

Data collection: US&FCS’ Client Management System (CMS) and the

Office of Trade Event Management (OTEM). TD’s Office of Export

Promotion Coordination, Promotion Planning and Support Division

(PPSD) collects data that is provided by participants in overseas trade

events and reported by project managers of trade events.

Frequency: Statistics harvested and reported quarterly and annually

Data storage: US&FCS’ custom-designed Client Management System

software operating on a Lotus Notes platform and OTEM. Consolidated figures collected and stored by US&FCS’ Office of Planning.

Data is maintained in PPSD database operating on Lotus Notes

platform.

Verification: Client contacts and office activity are recorded and

entered into CMS and OTEM upon occurrence. Each office compiles a

quarterly Export Action Report, which details numbers of NTE and

NTM export actions, client counseling sessions (both in-office visits

and out-of-office visits), and other activities. Each office manager

reviews, verifies, and signs the reports. Data are verified by project

managers and PPDS.

Data Limitations: It is extremely difficult to track the actual dollar

value of exports supported by US&FCS services because businesses

are reluctant to reveal their proprietary information to the federal

government as well as to have their success stories published for

competitors to read. Because of the difficulties in reliably measuring

outcome performance, US&FCS instead tracks numbers of NTMs as

circumstantial evidence of overall export growth and job creation.

Data from NTEs/NTMs participating in some domestic trade events may

not be included, resulting in underreporting of the actual numbers of

NTEs/NTMs firms assisted by ITA.

I• □ 
92 FY 2001 Annual Performance Plan

International Trade Administration

Performance Goal 3:

Implement the President’s National Export Strategy in Conjunction with the

Trade Promotion Coordinating Committee (TPCC)

Measure 3.b:

Number of counseling sessions 534,903 335,532 296,769

292,822

288,479

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1997 1998 1999 2000 2001

Actual Target

Explanation

Of the five ITA performance measures in the FY 2001 Annual Performance Plan, four are outcome measures, and

one is an output measure, i.e., “number of counseling sessions.” ITA selected this output measure because of the

substantial number of staff years it devotes to this activity; specifically, in FY 1999, ITA conducted 296,769 counseling sessions. ITA defines a counseling session as a telephone conversation (in excess of 15 minutes) or personal

visit in which an ITA representative provides useful information to a U.S. firm or organization regarding export of its

goods and services and/or relevant U.S. trade law.

The main thrust of the National Export Strategy is to ensure that U.S. workers and businesses are able to profit

from export opportunities in markets throughout the world. ITA provides in-depth, value added counseling to U.S.

firms seeking to expand their international market activities, as well as to companies that are just beginning to

venture overseas. ITA employees help firms identify the best markets for their products, develop an effective market

entry strategy, facilitate the implementation of these plans by advising clients on distribution channels, key factors to

consider in pricing, and relevant trade shows and missions, and assist clients with locating appropriate public and

private trade finance programs.

A number of program evaluation studies were conducted which indirectly supported the subject performance goal.

Specifically: Management and Program Reviews (MPRs) of day-to-day operations were completed. These covered

systems, procedures, and practices at three of ITA’s domestic sites – Indianapolis, Portland (OR), and St. Louis.

Explanation

Collecting statistics on NTM firms shows whether or not ITA is achieving its goal of increasing the overall dollar value

of U.S. exports. The measure refers to the number of firms ITA successfully assists with expanding their international efforts into new markets. Entering new export markets increases the overall value of U.S. exports. Because it

is often impossible for US&FCS to obtain statistics on the gross dollar value of exports our programs support (due to

the voluntary nature of reporting such information, and the non-contemporaneous nature of information we do get),

this measure captures the outcome in a different, definable way.

Data Validation and Verification:

Data collection: US&FCS’ Client Management

System (CMS) and the Office of Trade Event

Management (OTEM).

Frequency: Statistics harvested and reported

quarterly and annually

Data storage: US&FCS’ custom-designed Client

Management System software operating on a Lotus

Notes platform and OTEM. Consolidated figures

collected and stored by US&FCS’ Office of Planning.

Verification: Client contacts and office activity are

recorded and entered into CMS and OTEM upon

occurrence. Each office compiles a quarterly Export

Action Report, which details numbers of NTE and NTM

export actions, client counseling sessions (both inoffice visits and out of office visits), and other

activities. Each office manager reviews, verifies, and

signs the reports.

Program Evaluation Efforts

I• □ 
FY 2001 Annual Performance Plan 93

International Trade Administration

Strategies Activities

Provide a "seamless web" of government

services

US&FCS offers a seamless web of export

counseling and assistance services delivered

through a world wide network of 98 domestic

export assistance centers and office locations

in 72 countries. US&FCS services range from

trade finance to trade complaints to

specialized assistance for SMEs and minorityowned businesses

Develop more comprehensive trade statistics

to measure the impact of exports on state and

local economies and provide timely analyses in

response to critical global events

-- Expand merchandise trade data program to

cover the mining sector to assist state and

local governments in measuring the jobs

impact of exports

-- Develop methodologies to generate data on

services exports - fastest growing segment of

the U.S. economy - at state and local levels

-- Implement quarterly monitoring of impact on

states of major international events (e.g., Asian

crisis)

-- Expand analysis of subnational exports to

support key U.S. trade initiatives (e.g., China

MFN, Fast-Track)

Improve environmental conditions and increase

U.S. environmental technologies exports to

emerging markets in Latin America, the Middle

East, Eastern Europe and Asia. Focus on

clean, efficient and renewable energy, as well

as drinking water and wastewater treatment

-- Conduct training seminars and

demonstration projects focused on specific

technologies related to clean energy, energy

efficiency, renewables and sustainable

development

-- Organize reverse missions to bring foreign

officials in contact with U.S. environmental

firms and expose them to U.S. environmental

technologies

-- Sponsor internships in the United States for

foreign environmental specialists

Strategies and Activities

Performance Goal 3:

Implement the President’s National Export Strategy in Conjunction with the

Trade Promotion Coordinating Committee (TPCC)
94 FY 2001 Annual Performance Plan

International Trade Administration

Total IT Dollars: $4.3 Million

IT Requirements: IT infrastructure and related mission systems

Total Dollars: $70.1 Million

Total FTEs: 476

Skill Summary: In-depth knowledge of export marketing and promotion, foreign trade practices,

and foreign government trade programs and policies

FY 99 Actual FY 00 Enacted FY 01 Target

$65.5 M $60.6 M $70.1 M

FY 99 Actual FY 00 Enacted FY 01 Target

454 459 476

FY 99 Actual FY 00 Enacted FY 01 Target

$4.6 M $4.3 M $4.3 M

Intra-DOC

• National Institute of Standards and Technology (NIST): Coordinate our efforts to help Small Business

Exporters (SBEs) export new technology; execute a cooperative agreement to provide Standards attaches.

• Census: Fund reimbursable agreements to produce customized statistics and collaborate on development

of methodologies to generate data on Services exports;

• NIST: Coordinate elements of the environmental technologies export initiative with NIST’s technology

development and commercialization programs.

• NOAA: Coordinate elements of the Environmental Technologies Initiative with NOAA’s environmental

programs.

• Office of General Counsel: Work together on guidance for interpreting existing agreements, defining the

rights of U.S. firms and workers under U.S. and international trade law, and in negotiations for future bilateral/multilateral agreements.

Other Government Agencies

• Small Business Administration (SBA): Share clients to provide complementary counseling services

• Ex-Im Bank: Share clients and provide complementary counseling services

• State/Local Government Agencies: Share clients and proved complementary counseling services

• Local Chambers of Commerce: Share clients and provide complementary counseling services

• Department of Energy : DOE provides industry expertise for US&FCS trade events

Resource Requirements Summary

Crosscutting Issues

Performance Goal 3:

Implement the President’s National Export Strategy in Conjunction with the

Trade Promotion Coordinating Committee (TPCC)
FY 2001 Annual Performance Plan 95

International Trade Administration

• Department of Defense/USAF: The Air Force provides industry expertise for ITA trade events involving

aircraft sales (e.g., the Paris Air Show)

• Department of Transportation: DOT provides industry expertise for US&FCS trade events

• Department of Education: Education provides industry expertise for US&FCS trade events

• Department of State: State’s Economic Officers assist with market research projects in countries where

US&FCS does not maintain staff

• Department of Agriculture (USDA): USDA provides grant assistance for US&FCS export counseling in rural

areas

• USAID: Provides grant assistance for various overseas projects (e.g., American Business Centers in

Russia)Cross.

• TPCC : Coordinate implementation of Environmental Technologies Initiative with the Environmental Trade

Working Group of the TPCC

Growth in the number of U.S. firms that export is closely tied to domestic and international economic conditions. A

strong dollar or a weak overseas economy can cause export-ready firms to delay their exporting efforts. ITA trade

specialists use their expertise to help firms develop trade strategies that take into account adverse economic

conditions.

Our challenge is to continue our export expansion in the face of increasing global economic uncertainty. Financial

turmoil, though subsiding, is still buffeting a number of economies around the world, including Russia, Asia, and

Latin America. President Clinton has underscored to Russian and Asian leaders that they must take tough steps to

reform their economies and restore economic confidence. The TPCC agencies’ export promotion programs and

activities counterbalance the increasing global economic uncertainty by including technical assistance (financial,

legal, measurement and standards, and intellectual property rights) to support economic reforms in Asia and

emerging economies, increasing trade finance resources for U.S. exporters, engaging China at high-level

negotiations and joining Africa in a real partnership that benefit economies on both sides of the Atlantic.

External Factors and Mitigation Strategies

Performance Goal 3:

Implement the President’s National Export Strategy in Conjunction with the

Trade Promotion Coordinating Committee (TPCC)
96 FY 2001 Annual Performance Plan

International Trade Administration

Rationale for Performance Goal

This goal supports the Broadening Trade initiative. In slightly more than six years, ITA’s Advocacy Center has

helped over 270 U.S. companies win foreign contracts worth potentially $67 billion in U.S. exports over the life of the

contracts.

This goal also supports the Digital Department initiative through its efforts to use the technology of electronic

commerce to help firms use the Internet both to receive ITA’s services and to promote their own products abroad.

6.8

7.8

9.8 10.5 11

0

2

4

6

8

10

12

14

16

1997 1998 1999 2000 2001

Billions of Dollars

Actual Target

Explanation

This measure tallies the estimated dollar value of exports generated by U.S. firms and organizations, with the

assistance of ITA advocacy efforts. According to the latest figures available, in FY 1999 USG advocacy assisted

U.S. firms in obtaining 77 foreign contracts, worth $9.8 billion, and having U.S. content of $5.3 billion over the life of

the contracts. Of these 77 successes, 23 were small and medium-sized businesses. Increased focus on advocacy

efforts in FY 2001 are expected to yield even greater successes for U.S. firms, especially SMEs, in the international

arena

The Advocacy Center conducts an annual survey of a sample of its customers to get feedback on the effectiveness

of its services. The annual survey of FY 1999 was undertaken during January 2000, with the Advocacy Center

contacting 18 companies regarding claimed “successes” in 19 separate competitions in which the USG provided

advocacy. (The 19 competitions were selected out of 78 successful projects for FY 1999.) Survey responses will be

tallied and analyzed during the second quarter of FY 2000.

Performance Goal 4:

Strengthen and Institutionalize ITA’s Trade Promotion &Trade Advocacy Efforts

Measure 4.a:

 Dollar value of gross exports supported through advocacy efforts

Data Validation and Verification:

Data collection: Companies that benefited from

USG advocacy

Frequency: Annually (fiscal year)

Data storage: Advocacy Center maintains a

database that tracks advocacy projects, efforts

undertaken, and results.

Verification: Advocacy Center staff conducts

follow-up calls annually to a significant sample of

customers to verify the dollar value of exports

generated through the support of USG efforts.

The validation process covers: current status of

each project, material changes regarding total

project value, U.S. export content, and satisfaction with Advocacy Center or U.S. Embassy/

Consulate services. In addition, the Advocacy

Center posts cleared company “advocacy”

success stories on its website.

Program Evaluation Efforts

- -

-

I• □ 
FY 2001 Annual Performance Plan 97

International Trade Administration

Strategies Activities

ITA will strengthen trade promotion efforts by

increasing and enhancing its field presence and

service delivery network; and through

pioneering efforts to move electronic

commerce into the mainstream of trade; and

by enhancing and improving existing products

and services, and creating new product lines to

meet changing needs

ITA will enhance its field presence by placing

specialists in selected locations (e.g.,

NIST-trained Standards Experts in overseas

locations). ITA will test and deliver new

e-commerce services, e.g., virtual trade

shows, webcasting, "push" technologies, and

enhanced website applications. ITA will

continue its Innovation 2003 effort to

enhance/improve products and services. New

products will be piloted and introduced

world-wide when successful.

Enhance advocacy efforts for SMEs (as part of

the Presidential Manufacturing Initiative)

-- Create a new program, within ITA's

Advocacy Center, to match SMEs to major

international firms as subcontractors, suppliers

and consultants.

-- Develop and implement a coordinated

advertising campaign (encompassing videos,

promotional brochures) to reach out to the

large number of SMEs currently unaware of

the USG's advocacy program.

-- Develop partnership agreements with

MBDA, minority business multiplier

organizations and Manufacturing Extension

Partnerships to broaden the advocacy center's

customer base.

Total Dollars: $60.7 Million

FY 99 Actual FY 00 Enacted FY 01 Target

$56.8 M $52.5 M $60.7 M

Total FTEs: 412

Skill Summary: Ability to interact with high-level business, USG, and foreign government officials

as an official representative of the U.S. Government

FY 99 Actual FY 00 Enacted FY 01 Target

393 397 412

Strategies and Activities

Resource Requirements Summary

Performance Goal 4:

Strengthen and Institutionalize ITA’s Trade Promotion &Trade Advocacy Efforts
98 FY 2001 Annual Performance Plan

International Trade Administration

Total IT Dollars: $3.7 Million

IT Requirements: IT infrastructure and related mission systems

FY 99 Actual FY 00 Enacted FY 01 Target

$4.0 M $3.7 M $3.7 M

Intra-DOC

• Office of General Counsel: Work together on guidance for interpreting existing agreements, defining the

rights of U.S. firms and workers under U.S. and international trade law, and in negotiations for future bilateral/multilateral agreements.

Other Government Agencies

• Trade Promotion Coordinating Committee (TPCC) Agencies: Coordinate advocacy strategies and responses

• Offices of the President and Vice President: Work with these executive offices to coordinate advocacy

strategies and responses

The overall strength of the global economy influences the Advocacy Center’s fiscal year numbers. To counter the

effects of global macroeconomic trends that may lower U.S. exports, the Advocacy Center will increase efforts to

promote U.S. companies’ bids in regions with higher export potential.

Mitigation Strategies: To counter the effects of global macroeconomic trends that may lower U.S. exports, the

Advocacy Center will increase efforts to promote U.S. companies’ bids to regions with higher export potential. ITA

will closely monitor and provide foreign market research to assist companies gain greater awareness of difficult or

challenging markets

Crosscutting Issues

External Factors and Mitigation Strategies

Performance Goal 4:

Strengthen and Institutionalize ITA’s Trade Promotion &Trade Advocacy Efforts
FY 2001 Annual Performance Plan 99

Bureau of Export Administration

BXA seeks to control the spread of weapons of mass destruction (WMD), maintain a strong U.S. defense

industrial base and promote higher quality manufacturing processes in the U.S. The bureau’s continuing major

challenge is combating the proliferation of WMD while furthering the growth of U.S. exports, which are critical to

maintaining America’s leadership in an increasingly competitive global economy. Within this framework, BXA

serves U.S. businesses engaged in international trade by processing applications for export of controlled

commodities in accordance with the Export Administration Regulations (EAR). The Bureau also serves this

clientele by expediting the export licensing process and by providing various educational initiatives and guidance

on how to conform to applicable laws and regulations. The bureau is particularly vigilant in evaluating transactions involving advanced technologies and dual use products (i.e., those subject to diversion to, and use in

chemical, biological, nuclear and missile weapons programs).

The bureau enforces antiboycott law; it also performs research and analysis in support of U.S. industries

pursuant to mandatory legal authorities. Recent legal mandates placed on BXA include: controlling exports of

encryption products, overseeing U.S. industry compliance with the Chemical Weapons Convention (CWC)

treaty, enforcing industrial fastener quality legislation, and protecting critical infrastructures in the U.S.

Even if the United States and its close allies have the most effective export control conceivable, weapons of mass

destruction or the commodities and technologies to make and deliver them are finding their ways from or through

other nations to rogue nations or terrorists who would make use of them. The U. S. and other nations and their

citizens are at risk just as if we did not have effective export controls. In recognition of this fact, BXA works closely

with other relevant agencies of the U. S. government to assist key exporting and transit countries to develop and

strengthen export control systems.

BXA seeks an international order that is free from both the destabilizing effects of weapons of mass destruction and

unnecessary regulatory burdens associated with trade in controlled commodities.

Bureau of Export Administration

Mission Statement

BXA is a regulatory agency that promotes U.S. national and economic security, public safety, and foreign

policy interests by managing and enforcing the Department’s security-related trade and competitiveness

program

Initiatives and Priorities

Expand Economic Growth, Trade and Prosperity - BXA supports this goal by assisting small and medium sized

businesses to increase their participation in export markets. It does this by helping them to understand export

control requirements through outreach visits, conferences, and seminars. With increased concern about the proliferation of WMD, BXA has brought U.S. export controls in line with the new international political environment by

reforming the dual-use export control system. At the same time, BXA seeks to enhance its export regulatory

effectiveness by educating stakeholders in the export licensing process -- i.e., exporting businesses -- thereby

improving industry compliance with export control regulations and strengthening international export control efforts.

Combined, these two efforts will result in a streamlined dual-use commodity control list, and an improved license

application cycle for controlled items without compromising our national security and public safety interests. These

efficiencies will allow U.S. exporters to be more competitive in world markets, benefiting both the exporters and the

U.S. economy.
100 FY 2001 Annual Performance Plan

Bureau of Export Administration

CWC Inspection Program: Export Administration is seeking additional resources to ensure that United States

industry complies with all treaty reporting and facility inspection requirements, and that confidential business

information (CBI) of U.S. chemical and pharmaceutical firms is protected from unauthorized release during CWC

inspections. This role contributes to the national security and economic strength of the United States and helps to

keep the U.S. competitive by ensuring that its cutting edge technology is protected. As lead agency, Commerce will

(1) collect, process, and report U.S. companies’ CWC data declarations and (2) host on-site CWC inspections at

commercial facilities. New resources contained in this request, when added to resources previously approved by

Congress or pending in the President’s FY 2000 budget, will fully staff BXA’s CWC operations, and provide for the

full-year costs of Department of Defense participation in these inspections. Because of the delay in enactment of

CWC implementing legislation by the Congress, the commencement of required inspections of U.S. facilities has

been delayed. The CWC’s international administrative agency, the Organization for the Prohibition of Chemical

Weapons, has indicated it wants to conduct 61 inspections of U.S. facilities in calendar year 2000. The currently

budgeted BXA/EA CWC inspection group will be stretched to conduct 43 such inspections, and additional personnel

are desperately needed.

Enforcing Laws to Combat Terrorism and Proliferation: Combating terrorism is an essential part of the President’s

overall defense strategy. Additional resources are being requested to enable Export Enforcement (EE) personnel to

use their expertise in targeting outbound shipments for investigation to assist the Customs Service in targeting

inbound shipments (a cross-cutting initiative responsive to Presidential Decision Directive 62). Increasing effective

inspections of cargo inbound into U.S. ports is essential to protect our nation from terrorism. EE is also requesting

additional resources to enhance its counter-terrorism program that was started in 1997. This will include increasing

outreach at the Department of Energy’s national high technology laboratories to address Inspector General (IG)

concerns about the laboratories’ lack of understanding about export control issues; and enhance visa application

reviews. In addition, this initiative will fully fund enforcement costs associated with obtaining administrative warrants

for inspections of U.S. facilities required by the Chemical Weapons Convention (CWC); enforcing data declaration

and inspection requirements, and enforcing export controls and import restrictions on scheduled chemicals (which

was a new responsibility for EE in 1999). These increases are part of the departmental-crosscutting initiative to

Combat Terrorism and Weapons of Mass Destruction.

Stregthening Export Controls of Key Nations: Management and Policy Coordination is seeking additional resources

to establish the Nonproliferation and Export Control (NEC) Cooperation initiative as a Department of Commercefunded program. Since FY 1993, BXA has been using limited base resources to deliver technical assistance on

establishing and strengthening export control and enforcement to the republics of the former Soviet Union and former

Warsaw Pact. If these nations are leaking weapons of mass destruction and the means to make more, no matter

how good our export controls are, our security is jeopardized. For seven years, without direct funding, BXA has

used funds from other Departments to pay the non-personnel costs of its program (those funds cannot be used to

pay BXA personnel costs). Because of BXA’s prior successes in this program, and the pressing security interests

involved, there is increasing demand in Congress and other federal Departments for BXA to provide more assistance

to the same set of nations and expand activities to include China, India, Pakistan, and other countries considered

prime proliferation risks. The Departments of Defense (DoD) and State, among others, have said they need to

expand their support to BXA for this purpose, but BXA has reached the limit of what its current staff complement for

this activity can do and must start refusing the requests and funding. This initiative will enable BXA to play the vital

expanded role that sister departments acknowledge can only be played by BXA.

Critical Infrastructure Program – In support of the Department’s comprehensive e-commerce initiative, protection of

the Nation’s basic information systems must be one of the highest priorities. A Presidential directive in 1998

created the Critical Infrastructure Assurance Office (CIAO) and placed it in the Commerce Department to coordinate

actions within both the Federal government and private sector to protect critical infrastructures. The National Plan for

Information Systems Protection, Version 1.0, issued in January 2000, is the first attempt by any national government

to develop ways to protect electric systems, communications, and transportation networks, all of which are computer controlled, from deliberate attack and sabotage. The first step of the plan focuses on efforts being undertaken

within the Federal government to protect the nation’s critical cyber-based infrastructure. The second step will focus

on efforts of infrastructure owners and operators as well as the perspectives of the broader business community and

the general public.

In addition to coordinating the development of the National Plan, Commerce is helping to foster the Partnership for
FY 2001 Annual Performance Plan 101

Bureau of Export Administration

Critical Infrastruture Security. For the national plan to succeed, the government and private sector must work

together in a partnership that raises awareness and, when appropriate, serves as a catalyst for action. A strategy of

cooperation and partnership between the private sector and the U.S. government to protect the nation’s infrastructure

is the linchpin of this effort.

For FY 2000, the CIAO’s funding was reduced from the President’s Budget (PB) request of $6.4M ($6.0M was

appropriated for FY 99) to $3.0 M, resulting in staff reductions and reduced program activity. For FY 2001, the

additional $3.5M above FY 2000 appropriations will (1) restore the CIAO’s base to $6.0M and (2) provide $0.5M for

the State pilot Information Sharing Analysis Centers (ISACs). The restoration will still fall short of the FY 2000 PB

request, but will permit the CIAO to perform its coordination and facilitation role in support of PDD-63 during the final

year of its projected existence.

Management Challenges

Export Control Automated Support System (ECASS) Redesign – The ECASS system is BXA’s principal computer

system for its licensing and enforcement activities. Because it is a fifteen-year-old design, its ability to expand and

to incorporate needed enhancements is severely limited, and it increasingly fails to provide necessary support for

BXA missions. ECASS redesign and replacement has been a priority for several years. BXA contracted with Booz,

Allen & Hamilton (Booz-Allen) to conduct a reengineering study of BXA business processes in advance of redesigning the information architecture that will support these processes. This is consistent with the Information Technology

Management Reform Act (the so-called Clinger-Cohen Act) that mandates that analysis and revision of missionrelated processes occur before making significant information technology investments. The redesigned processes

and the replacement for ECASS should improve fulfillment of critical portions of BXA’s mission of controlling exports

for national security, foreign policy, and short supply reasons. Specifically, the new ECASS will support the BXA

goal of restructuring export controls for the 21st century by facilitating more rapid processing of cases and the goal of

maintaining a fully effective law enforcement program by providing real time access to enforcement data.
102 FY 2001 Annual Performance Plan

Bureau of Export Administration

Organizational Structure

Critical

Infrastructure

Assurance Office

Assistant Secretary for

Export Enforcement

Deputy Assistant

Secretary for Export

Enforcement

Director of

Administration

Office of

Antiboycott

Compliance

Office of Strategic

Industries &

Economic Security Office of Export

Enforcement

Office of

Enforcement

Analysis

Assistant Secretary for

Export Administration

Deputy Assistant

Secretary for Export

Administration

Congressional and

Under Secretary Public Affairs

Deputy Under

Secretary

Office of Nuclear &

Missile Technology

Controls

Office of Exporter

Services

Office of Chemical

& Biological

Controls & Treaty

Compliance

Office of Strategic

Trade & Foreign

Policy Controls

Nonproliferation & Export

Control Cooperation (NEC)

Team

Chief Counsel

~ 

~ I 

- -1 I 
FY 2001 Annual Performance Plan 103

Bureau of Export Administration

Targets and Performance Summary

Highlights of the Bureau of Export Administration FY 2001 Performance Plan

Performance Goal 1: Restructure export controls for the 21st century

Measures FY 99 Actual FY 00 Target FY 01 Target

High risk transactions deterred (#) 1,160 508 512

Licensing decisions (#) 12,598 12,500 14,000

Average processing time for license applications (days) 40 33 32

Export assistance seminars/conferences(#) 136 115 120

Nonproliferation and export control international cooperative

exchanges (#)

46 30 37

Performance Goal 2: Maintain a fully effective law enforcement program to protect U.S. national

security and public safety, uphold U.S. foreign policy, and ensure the nonproliferation of dual-use

commodities and chemical weapons

Measures FY 99 Actual FY 00 Target FY 01 Target

Enforcement outreach visits (#) 1,142 900 1,010

Investigations completed (#) 1,069 1,300 1,225

Investigations accepted for criminal or administrative remedies

(#)

68 80 70

End-use visits conducted (#) 869 680 680

Performance Goal 3: Facilitate transition of defense industries

Measure FY 99 Actual FY 00 Target FY 01 Target

Strategic industry analyses completed (#) 352 295 300
104 FY 2001 Annual Performance Plan

Bureau of Export Administration

Resource Requirements Summary

Total Dollars: $64.9 Million

Total FTEs 447

Skill Summary: In-depth knowledge of the Export Administration Regulations, related policies,

and commodity-controlled items, as well as analytical skills

Total IT Dollars:$5.4 Million

IT Requirements: Operations, maintenance and reengineering

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Restructure export controls for the 21st century $24.2 M $24.9 M $35.2 M

Maintain a fully effective law enforcement program $25.9 M $25,.4 M $29.2 M

Facilitate transition of defense industries $0.5 M $0.5 M $0.5 M

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Restructure export controls for the 21st century 172 195.5 215

Maintain a fully effective law enforcement

program

188 207.5 224

Facilitate transition of defense industries 8 8 8

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Restructure export controls for the 21st century $1.6 M $2.0 M $2.6 M

Maintain a fully effective law enforcement

program

$1.7 M $2.1 M $2.7 M

Facilitate transition of defense industries $0.07 M $0.08 M $0.1 M
FY 2001 Annual Performance Plan 105

Bureau of Export Administration

Performance Goal 1:

Restructure Export Controls for the 21st Century

Rationale for Performance Goal

 for/Comments on Performance:

BXA strives to streamline the application processing system and educate the U.S. exporting community in

requirements of the Export Administration Act (EAA) and the Export Administration Regulations (EAR):

• To prevent illegal transactions by means of a more effective control system

• To improve U.S. exporter competitiveness in the global marketplace by helping exporters meet shipping

deadlines and reduce transaction costs

• To improve U.S. exporter competitiveness through prompt export licensing decisions

BXA also strives to strengthen foreign national export control systems to reduce proliferation of controlled

commodities that are produced locally or are being transshipped:

• To ensure that sensitive technologies are not inappropriately transferred outside the U.S.

• To provide a level playing field internationally through the development of export control systems meeting

international standards in all countries thought to be significant exporters or transshippers of sensitive

goods and technologies.

Measure 1.a:

Number of high risk transactions deterred 303504 508 512 256317 329 1160

0

200

400

600

800

1000

1200

1400

1996 1997 1998 1999 2000 2001

Number

Target Actual

Explanation

The number of high-risk transactions that BXA reviewed and subsequently denied is based upon a careful risk

assessment. There are several ways in which such assessments are conducted. License applications are

reviewed based on the control number, the reasons for the controls (national security; foreign policy; antiterrorism, etc.), the end-user, and the end-use. Control lists are cross checked to determine if any of the parties to

the transaction are denied or listed entities. In most cases the case is referred to the interagency community

for its review as well. This includes input from the intelligence community to help determine the likelihood that

the export will be used for purposes other than intended or contrary to U.S. policies. Also considered are

factors such as the likelihood of diversion, the practices of the end-user, and the inability or unwillingness of an

exporter to agree to certain conditions which we may require if a transaction is to be approved. U.S. security is

enhanced through the judicious implementation of controls on transfers of materials, equipment, technology, and

software that could be used for weapons applications.

FY 2000, FY 2001 Targets: No revisions, however the targets are too high unless ECASS is modified to include

data on applications that were Returned Without Action (RWA). A key assumption is that the India sanctions

will be lifted.

Data Issues: See Data limitations.

Discontinued Measures: Not applicable.

Data Validation and Verification

Data collection: Export Control Automated Support

Systems (ECASS)

Frequency: Annual

Data storage: ECASS

Verification: ECASS contains appropriate systems edits.

ECASS is also open to audit by GAO and the IG. Data is

queried for retrieval through the Licensing Officer Access

subsystem or generated via hardcopy through the Reports

subsystem.

Data limitations: The inability to produce additional detail

on the reasons for Returned Without Action (RWA).

Actions to be taken: Add capability to ECASS to record

and report RWA reason code.

I• □ 
106 FY 2001 Annual Performance Plan

Bureau of Export Administration

Measure 1.b:

Number of licensing decisions 9100 10,137 10100 12000

12500

14000

8801

10554

11016

12598

-4,000

1,000

6,000

11,000

16,000

1996 1997 1998 1999 2000 2001

Number

Target Actual

Explanation

This measure counts the total number of applications that were approved, denied or RWA during the fiscal year.

Upon receipt, license applications are reviewed for completeness (front-end review) and entered into ECASS,

BXA’s electronic processing system. If the application is incomplete, additional information is requested from

the exporter before proceeding. If complete, the application is screened against an automated list of end-users

of concern and forwarded to the appropriate licensing and enforcement specialists for a complete analysis of the

application. This includes review against available intelligence information and required referrals to other export

control agencies, and subsequent policy reconsideration/determination. The number of export licensing

decisions is the best measurement for the scope of the dual-use export control system as it relates to trade in

advanced goods and technology.

Measure 1.c:

Average processing time for license applications

0

3434

3333

32

3535

33

40

0

10

20

30

40

50

199619971998199920002001

Number

Target Actual

Explanation

This measure reflects the average number of calendar days that elapsed between registration and final action for all

applications processed during the fiscal year, regardless of the date received. The less time it takes to process a

license application, the sooner an exporter can ship product. This enhances exporter finances by speeding revenue

production time and reducing storage costs, and enables the exporter to make timely shipment and thereby compete with foreign competitors. U.S. exporters lose sales if a foreign competitor can ship a product faster.

Performance Goal 1:

Restructure Export Controls for the 21st Century

Data Validation and Verification:

Data collection: ECASS

Frequency: Annual

Data storage: All license processing data are stored in

ECASS

Verification: ECASS contains appropriate systems edits.

ECASS is also open to audit by GAO and the IG. Data is

queried for retrieval through the Licensing Officer Access

subsystem or generated via hardcopy through the Reports

subsystem.

Data limitations: None.

Actions to be taken: None.

Data Validation and Verification:

Data collection: ECASS

Frequency: Annual

Data storage: All license processing data are stored in the

ECASS

Verification: ECASS contains appropriate systems edits.

ECASS is also open to audit by GAO and the IG. Data is

queried for retrieval through the Licensing Officer Access

subsystem or generated via hardcopy through the Reports

subsystem.

Data limitations: None.

Actions to be taken: None.

-

,__ - -

□ ■ 

□ ■ 
FY 2001 Annual Performance Plan 107

Bureau of Export Administration

Measure 1.d:

Number of export assistance seminars/conferences 150 150 204 115 120149 202 136

0

50

100

150

200

250

300

1997 1998 1999 2000 2001

Number

Target Actual

Explanation

This measure counts the number of training events in which BXA either is a sponsor or participant and reflects

the transfer of knowledge from the government to the private sector regarding export control requirements. The

BXA outreach program to the domestic and international business communities encourages compliance with

EAR. Seminars also heighten business awareness of Administration objectives and improve compliance with

regulatory requirements. In support of BXA’s goal to “Facilitate Transition of Defense Industries,” these seminars

also help identify market opportunities for firms in the U.S. defense industrial base, and identify those firms that

could benefit from BXA advocacy and defense industrial base programs.

Performance Goal 1:

Restructure Export Controls for the 21st Century

Data Validation and Verification:

Data collection: Counts of seminars and conferences

from the seminar schedule published each year.

Frequency: Annual

Data storage: The Office of Exporter Services collects

and stores the data.

Verification: None

Data limitations None.

Actions to be taken: None.

□ ■ 
108 FY 2001 Annual Performance Plan

Bureau of Export Administration

Measure 1.e:

Number of nonproliferation and export control international cooperative exchanges 4042 3036374146

0

10

20

30

40

50

60

1997 1998 1999 2000 2001

Number

Target Actual

Explanation

This measure includes technical exchanges, executive exchanges, symposia, fora, workshops, and training

courses, assessments, and other multilateral and bilateral activities in which BXA has the lead or a primary role.

These exchanges are the primary means by which BXA implements its nonproliferation and export control

cooperation programs with foreign governments. This measure records the number of exchanges and not the

number of countries participating. If one exchange involves multiple countries (e.g., the annual update event) the

exchange is counted as one item.

FY 2000, FY 2001 Targets: The FY 2000 targeted output of 30 exchanges reflects deletion from the FY 2000

budget of requested FTE and a forecast reduction in funding from the Departments of Defense and State. The

FY 2001 target is increased to 37 exchanges based on the increases in FTE contained in the President’s FY

2001 budget.

Program Evaluation Efforts

• BXA developed a performance management approach pursuant to the Government Performance and

Results Act (GPRA) of 1993, to determine success and failure of its international cooperative export

control activities. The approach links inputs (time, money and staff) and outputs (technical exchanges

in each of five substantive fields) to desired outcomes that increase the effectiveness of a national export

control system. Staff collects and analyzes evidence (legislation, procedures, control lists, etc.) to

determine achievement of desired outcomes, of which there are 39.

• BXA was credited with hard work and timely response in providing the export licenses for the encryption

items necessary for a U.S. consortium to win a bid on a major Public Key Infrastructure (PKI) project in

Hong Kong. This contract should help dispel the perception in the information technology industry that

the U.S. Government is reluctant to provide the licenses necessary for electronic commerce initiatives.

The five licenses submitted by U.S. firms for this project were approved with an average processing time

of 35 days. One of the licenses was approved in 23 days. The changed perceptions concerning U.S.

licensing policy for encryption resulting from this case should lead to more opportunities for U.S.

businesses in this important industry to make sales of encryption hardware and software.

• At the Missile Technology Control Regime (MTCR) annual meeting in Paris on June 3-4, 1999, the BXA

representative participated in the resolution of an impediment to the approval of several pending missilerelated export cases for Israel through discussions with Austria, a MTCR partner. If this issue had not

Performance Goal 1:

Restructure Export Controls for the 21st Century

Data Validation and Verification:

Data collection: NEC activity files, reporting cables, and

other files

Frequency: Annual

Data storage: NEC collects and stores the data.

Verification: Independent auditors verified the content of

NEC outputs.

Data limitations: An output rather than an outcome

measure is used because NEC activity has a greater ability to

affect the output (i.e., the number of technical exchanges)

than it has to affect the outcome (i.e., improvements in the

export control systems in the foreign countries). The latter is

substantially determined by the actions of foreign sovereign

governments, a factor clearly out of NEC control. lo ■ Actions to be taken: None.
FY 2001 Annual Performance Plan 109

Bureau of Export Administration

Performance Goal 1:

Restructure Export Controls for the 21st Century

been satisfactorily resolved, denial of the pending U.S. cases would have jeopardized longstanding

business relationships between Israeli and U.S. companies.

• Since the implementation of the Simplified Network Application Program (SNAP), up to 46 percent of

export license applications have been submitted to BXA via the Internet. SNAP reduces delays for the

exporter and is more cost-effective for BXA since it eliminates the expensive and error-prone process of

transferring data from paper applications. SNAP accepts most applications and notices that exporters

must submit to BXA. During the same period, 41 percent of requests for advisory opinions and commodity classifications came through SNAP.

• The Office of Management and Budget (OMB) approved BXA’s request for a streamlined process for

collecting national security information from the U.S. defense industrial base. BXA now has general,

multi-year OMB approval for BXA survey authority. BXA will therefore be able to reduce the time

required to obtain collection approval from five months to less than one month. This will enable BXA to

respond quickly to national security issues as they arise, and make policy recommendations in a more

timely manner. The streamlined process will also be less burdensome for BXA, as well as OMB,

consolidating multiple information collection activities under a single, perpetual authority.

• The Government Printing Office (GPO) has arranged a grant through the Federal Depository Library that

will allow GPO to provide the public free electronic access to the Export Administration Regulations, via

the Internet, at no cost to BXA or the public. The total annual savings to Commerce and the taxpayers

will be $70,000, in addition to the $126,000 savings to industry for free electronic access to the EAR.

Strategies and Activities

Strategies Activities

Achieve receipts, reviews, interagency consultations,

and decisions on export license applications that are

accurate, consistent, and timely

Use state-of-the-art information technology.

Provision of full range of information to the U.S.

exporting community

Create publications, seminars, and web sites, and

perform individual consultations.

Development of uniform control lists and licensing

practices with like-minded supplier nations.

Consult with representatives of supplier nations.

Develop and implement a model country plan that

addresses all five functional areas of effective export

control systems (legal and regulatory framework,

licensing procedures and control lists, enforcement

mechanisms, industry-government relations, and

systems administration and automation), and tailor it to

the specific needs of each participating countries.

-- Technical exchanges (bilateral or multilateral)

 for senior and mid-level export control officials that

 take place at headquarters or in the field

-- Modular training materials prepared and used by

 specialists in their functional areas and made

 available in two or more languages

-- Automated job tools that foreign officials can use in

 the execution of their work (e.g., classifying

 commodities, developing of performance for

 Licensing Officers)
110 FY 2001 Annual Performance Plan

Bureau of Export Administration

Cross-Cutting Activities

Other Government Agencies

• The international export control system represents the integration of the interests of several distinct

interest groups. Each makes a unique contribution to the system. The groups are:

• Governments of nations that administer and enforce internationally agreed-upon standards

• Industries of nations that produce items and technologies requiring control

• Multilateral control regimes that establish the standards and norms implemented by individual nations

• Various non-government and academic organizations of individual nations.

• Departments of State, Defense, Energy, Treasury, and Justice: BXA works with these agencies and

departments to develop and implement U.S. export control policy and programs, including developing

encryption policy, implementing sanctions, and participating in multilateral regimes such as the Missile

Technology Control Regime and the Wassenaar Arrangement. BXA also coordinates intelligence and

enforcement operations with these agencies.

• U.S. Customs Service and the Nonproliferation Center: BXA coordinates export control cooperation

technical exchanges and activities with other nationswith these agencies, in addition to those mentioned above.

• BXA works closely with the Departments of State, Defense, Energy , Justice, U.S. Customs, and the

FBI to coordinate asessment of the interntional export control system and to prioritize, design, and fund

programs in which interagency resources are focused on specific national and regional issues.

Total Dollars: $35.2 million

FY 99 Actual FY 00 Enacted FY 01 Request

$24.2 M $24.9 M $35.2 M

FY 99 Actual FY 00 Enacted FY 01 Request

172 195.5 215.0

FY 99 Actual FY 00 Enacted FY 01 Request

$1.5 M $2.0 M $2.6 M

Resource Requirements Summary

Total FTEs: 215

Skill Summary: Analytic skills, technical expertise, knowledge of commodity-controlled items

Total IT Budget: $2.6 million

Performance Goal 1:

Restructure Export Controls for the 21st Century
FY 2001 Annual Performance Plan 111

Bureau of Export Administration

Performance Goal 1:

Restructure Export Controls for the 21st Century

External Factors and Mitigation Strategies

External Factors:

• Changes in the world situation (e.g., nuclear tests, terrorist activity) requiring new export restrictions.

• Developments in technology requiring adjustments to control lists.

• New legislative requirements for additional controls or license application review.

Mitigating Strategy:

• All of the above factors can be mitigated through the design of well targeted, appropriate regulations and

through the timely education of the public.

External Factors:

• The press of other mandated priorities impedes prompt license processing.

Mitigating Strategy:

• Improve clarity of information provided to the Legislative branch to reduce the need for GAO and IG requests.

• Expedite implementation of the Government Paperwork Elimination Act to facilitate more rapid FOIA

processing.

• Work more closely with OGC to eliminate labor and time intensive computer runs in response to FOIA

requests when they are known to be protected under section 12 (c) of the Export Administration Act.

External Factors:

• Exporters violate export control laws and regulations because they are not aware of changes in requirements pertaining to them.

Mitigating Strategy:

• Ensure exporters have rapid access to regulatory and policy changes. Disseminate guidance via export

control seminars, individual counseling, and the Internet.

External Factors:

• BXA continues to rely on other agencies, most recently the Department of State, to fund the technical

exchanges and activities relating to international export control cooperation. The process of obtaining

earmarked funds from other agencies to support this work, and ensuring that all the detailed requirements of those agencies are satisfied, is extremely cumbersome and fraught with uncertainty and delay

and makes some inefficiencies unavoidable.

Mitigating Strategy:

• BXA works with a number of funding entities and may submit several proposals aimed at achieving the

same objective in order to make receipt of needed funding more likely.
112 FY 2001 Annual Performance Plan

Bureau of Export Administration

Performance Goal 1:

Restructure Export Controls for the 21st Century

External Factors:

• Scheduling of technical exchanges and activities is contingent on the interagency coordination process

and the other countries involved.

• The pace of efforts to assist other nations to strengthen their export control programs depends on the

intitiative of individual countries to make use of this cooperative assistance and on the willingness of

other U.S. agencies to provide for their experts to participate in the technical exchanges.

Mitigating Strategy:

• Close and frequent contact with other pertinent U.S. agencies and patient, continuing consultation with

foreign export control officials minimizes these problems.

External Factors:

• Unforeseeable shifts in U.S. policy (e.g., suspension of activity with Belarus) occasionally prevent

performance of scheduled, funded technical exchanges or preclude participation of some invited participants.

Mitigating Strategy:

• Rapid contact with service providers to minimize cancellation cost.

• Reduce the number of exchanges while focusing on reaching broader audiences.
FY 2001 Annual Performance Plan 113

Bureau of Export Administration

Performance Goal 2:

Maintain a Fully Effective Law Enforcement Program to protect U.S.

national security and public safety, uphold U.S. foreign policy, and ensure

the nonproliferation of dual-use commodities and chemical weapons

Rationale for Performance Goal

A number of aggressive investigation and verification activities are aimed at deterring export control violations,

and imposing criminal or administrative sanctions on violators.

BXA conducts outreach visits and conferences sponsored by trade and business associations and continuing

legal education institutions. These outreach efforts support the Expand Economic Growth, Trade and Prosperity

initiative while protecting important national security and foreign policy interests by helping exporters understand

export control regulations.

Measure 2.a:

Number of enforcement outreach visits 750 750900 900

1010

706

1285

1192

541

0

500

1000

1500

2000

1996 1997 1998 1999 2000 2001

Number

Target Actual

Explanation

As part of their preventive enforcement mission, BXA special agents visit U.S. firms under “Project Outreach.”

During each outreach visit, the agents educate the firm about BXA’s enforcement program and seek the firm’s

voluntary cooperation in detecting potential illegal transactions. Antiboycott outreach occurs in the form of presentations to organizations concerning compliance with the Antiboycott provisions of the EAA. These outreach efforts

focus on conferences sponsored by trade and business associations and continuing legal education institutions.

Data Validation and Verification:

Data collection: “Enforce” subsystem of ECASS and

paper files; agent monthly activity reports.

Frequency: Annual

Data storage: The Office of Export Enforcement (OEE)

collects and stores the data in Enforce and its case files.

Verification: Following an outreach visit, the agent enters

the data in ECASS. The Special Agent in Charge countersigns each entry. The Antiboycott-related data are verified

by a manual count of entries in OAC case files.

Data limitations: None

Actions to be taken: None.

□ ■ 
114 FY 2001 Annual Performance Plan

Bureau of Export Administration

Measure 2.b:

Number of investigations completed 1200 11001300 11171300

1225

1069

1232

998

0

500

1000

1500

2000

1996 1997 1998 1999 2000 2001

Number

Target Actual

Explanation

When there is reason to believe that the EAA and the EAR have been violated, BXA criminal investigators and

Compliance Officers initiate a formal investigation and open a case file. Investigations result in a criminal or

administrative penalty, a warning letter for minor infractions, or closing of the case if no violation is found. This

output measure covers one of the most important features of our law enforcement program, namely, the pursuit

of an investigation to a proper conclusion based on the facts and law.

Data Validation and Verification:

Data collection: “Enforce” subsystem of ECASS and case

management database

Frequency: Annual

Data storage: The OEE collects and stores the data. Cases are

also tracked in ECASS.

Verification: Data are obtained through a query of the Enforce

database using the investigative tracking system. This query

reflects the total number of cases completed during FY 1999.

The investigating Special Agent enters these data into Enforce

during and upon the completion of the investigation. Each entry

is countersigned by the Special Agent in Charge, thereby

providing a complete verification of the data entered. The data

for the annual report are developed via Enforce query verified by

a manual count of entries. The Antiboycott data are verified via

manual count of entries in OAC case files.

Data limitations: None.

Actions to be taken: None.

Performance Goal 2:

Maintain a Fully Effective Law Enforcement Program to protect U.S.

national security and public safety, uphold U.S. foreign policy, and ensure

the nonproliferation of dual-use commodities and chemical weapons

- - - - -

■ 
FY 2001 Annual Performance Plan 115

Bureau of Export Administration

Measure 2.c:

Number of investigations accepted for criminal or administrative remedies 60627380 7079 606668

0

20

40

60

80

100

1996 1997 1998 1999 2000 2001

Number

Target Actual

Explanation

This measure refers to investigations accepted by U.S.

Attorney offices for criminal prosecution and/or by the

Chief Counsel for Export Administration for administrative

sanctions.

Data Validation and Verification:

Data collection: “Enforce” subsystem of ECASS and case

management database

Frequency: Annual

Data storage: The OEE and the Chief Counsel for Export

Administration collect and store the data. Case status

information is reconciled quarterly.

Verification: Data are obtained through a query of the

Enforce database using the investigative tracking system. To

obtain the total number of cases accepted for criminal

prosecution, the case action query program is used which

reflects cases accepted by U.S. Attorneys’ offices. These

data are entered by the investigating case agent and

countersigned by the Special Agent in Charge. To obtain the

total number of cases accepted for administrative remedies,

the administrative action query is used which reflects cases

accepted by the Chief Counsel for Export Administration. The

Office enters these data. Validation is accomplished via

manual verification by counting the entries in the system. The

Antiboycott related data are obtained through a query of case

status information in OAC case files. This case status

information is reconciled/verified on a quarterly basis.

Data limitations: Prior to FY 1999, these data were

calculated by querying the total number of cases presented

for criminal prosecution and subtracting the number of cases

declined. In an effort to more accurately account for the data,

a new computer program was added in FY 1999 to reflect

cases accepted for criminal prosecution.

Actions to be taken: None.

Performance Goal 2:

Maintain a Fully Effective Law Enforcement Program to protect U.S.

national security and public safety, uphold U.S. foreign policy, and ensure

the nonproliferation of dual-use commodities and chemical weapons

- - -

- - - -

■ 
116 FY 2001 Annual Performance Plan

Bureau of Export Administration

Measure 2.d:

Number of end-use visits conducted 600725 680 680

680

566

680

674

869

0

200

400

600

800

1000

1996 1997 1998 1999 2000 2001

Number

Target Actual

Explanation

A key element of the BXA activity is conducting on-site visits to foreign end-users of selected goods and technologies exported under the EAR. End-use visits consist of pre-license checks and post-shipment verifications. Prelicense checks are performed prior to issuance of licenses by BXA and are generally performed by U.S. & Foreign

Commercial Service (US&FCS) personnel. US&FCS officials, and BXA Special Agents perform post-shipment

verifications to ensure that the products are being used by the authorized end-users for the authorized end-uses.

This output measure supports the following goals:

• Maintaining an effective law enforcement program, by determining the legitimacy of controlled export

transactions

• Improving public knowledge of and compliance with export regulations, by educating foreign consignees of U.S.-

origin items

• Increasing cooperation with domestic and international law enforcement, export control and policy organizations,

by sharing information with law enforcement counterparts located in countries where the visits are conducted

Program Evaluation Efforts

During Fiscal year 1999, BXA levied over $2 million in civil and criminal penalties on individuals and corporations in

11 cases.

BXA was recognized for leadership in negotiating and implementing the U.S.-China End-Use Visit Arrangement

(EUVA), a U.S. strategic objective for the past 15 years. Negotiated with senior Chinese officials, the EUVA is an

extraordinary breakthrough in U.S.-China export control relations and was one of the President’s most noted

accomplishments at the June 1998 U.S.-China Summit. The EUVA strengthens the U.S. dual-use licensing and

enforcement system and demonstrates the Department of Commerce’s commitment to U.S. export control/

nonproliferation goals.

Data Validation and Verification:

Data collection: Enforcement subsystem of ECASS, ad hoc

programs, and a PC database for high performance computer

(HPC) end-use checks.

Frequency: Annual.

Data storage: The OEE and the Office of Enforcement Analysis

collect and store the data. OEE and the U.S. & Foreign Commercial Service (US&FCS) personnel make and document visits.

OEA performs data entry into ECASS, and into a database of

HPC end-use checks.

Verification: Pre-license check (PLC) data are compiled

through ECASS data query programs that have built-in checks

that prevent duplicative counting. For post shipment verification

(PSV) data, cable requested PSVs are queried using ECASS or

by using a query with a PC database for HPC checks. OEA

personnel manually verify both of these queries. Safeguard

PSV checks are queried through ECASS as well. An ad hoc

database, maintained by OEE/Intel, is used for verification of that

data.

Data limitations: None.

Actions to be taken: None.

Performance Goal 2:

Maintain a Fully Effective Law Enforcement Program to protect U.S.

national security and public safety, uphold U.S. foreign policy, and ensure

the nonproliferation of dual-use commodities and chemical weapons

-

- -

-

-

■ 
FY 2001 Annual Performance Plan 117

Bureau of Export Administration

Strategies and Activities

Strategies Activities

Obtain tips and leads concerning possible violations,

while educating exporters about how to comply with the

export control laws and regulations

-- Target companies for outreach based on:

 leads and referrals, types of industry, types of

 exports, regions, and newness of exporters.

-- Conduct outreach visits to industry

Ensure that the products are being used by the

authorized end users for the authorized end-uses

-- Target end-use checks on shipments of greatest

diversion risk and proliferation concern.

Determine whether violations of the law have occurred -- Investigations are conducted in a timely and efficient

manner.

Insure that the export control system works effectively -- BXA presents cases to prosecutors for possible

initiation of criminal or administrative enforcement

proceedings in order to punish past and deter future

violators.

Determine the legitimacy of controlled export

transactions

-- BXA conducts visits overseas to educate foreign

consignees about U.S. export laws, and share

information with foreign export control officials.

Total Dollars: $29.2 million

FY 99 Actual FY 00 Enacted FY 01 Request

$25.9 M $25.4 M $29.2 M

FY 99 Actual FY 00 Enacted FY 01 Request

188 207.5 224

Resource Requirements Summary

Total FTE: 224

Skill Summary: Knowledge of Export Administration Regulations, investigative skills, the

ability to analyze export controls, and the ability to analyze intelligence information and data on

end-use visits

Performance Goal 2:

Maintain a Fully Effective Law Enforcement Program to protect U.S.

national security and public safety, uphold U.S. foreign policy, and ensure

the nonproliferation of dual-use commodities and chemical weapons
118 FY 2001 Annual Performance Plan

Bureau of Export Administration

FY 99 Actual FY 00 Enacted FY 01 Request

$1.7 M $2.1 M $2.7 M

Cross-Cutting Activities

Intra-DOC

• The Antiboycott Office works with OEE to share data on cases/companies. Enforcement works with the

Chief Counsel for Export Administration on administrative cases.

Other Government Agencies

• U.S. Customs Service, FBI, Postal Service, Departments of Justice and State, and the Intelligence Community: BXA works with these agencies on matters involving law enforcement cooperation, development of

leads, intelligence coordination, implementation of export control policy, and coordination regarding issues

such as export license investigations and fastener quality. The Bureau will continue to improve liaison with

law enforcement agencies. Field offices and headquarters participate in interagency working groups with the

FBI and the Postal Service. Data are shared with the Customs Service via the Treasury Enforcement

Computer System (TEC).

External Factors and Mitigation Strategies

Number of completed investigations and Number of investigations accepted for criminal or

administrative remedies:

External Factors:

• The priorities and resources of the Department of Justice and the Chief Counsel for Export Administration

directly influence the accomplishment of the measures.

• BXA may have to rely on other agencies to conduct investigative activities (including execution of search

warrants, surveillance, and undercover operations).

Mitigation Strategies:

• Targeting investigations effectively, conducting investigative activities professionally, and presenting cases to

prosecutors persuasively

• Communication with other agencies and monthly meetings to discuss new export control issues and the

possibility of working together on joint cases

Total IT Budget: $2.7 million

Performance Goal 2:

Maintain a Fully Effective Law Enforcement Program to protect U.S.

national security and public safety, uphold U.S. foreign policy, and ensure

the nonproliferation of dual-use commodities and chemical weapons
FY 2001 Annual Performance Plan 119

Bureau of Export Administration

Performance Goal 2:

Maintain a Fully Effective Law Enforcement Program to protect U.S.

national security and public safety, uphold U.S. foreign policy, and ensure

the nonproliferation of dual-use commodities and chemical weapons

Number of End-Use Visits Conducted:

External Factors:

• The number of pre-license checks will vary with the annual volume of license applications.

• The number of post-shipment verifications will vary in accordance with the volume of HPC exported to

certain countries annually. The NDAA mandates post-shipment verifications for all HPCs that are

exported to countries on a certain list. Thus, if more computers having performance capabilities in the

HPC range subject to inspection are manufactured in the future, the number of required post-shipment

checks will increase accordingly.

Mitigation Strategy:

• Increases in workload beyond the capability of established resource levels will be accommodated by

concentrating on areas of highest risk.
120 FY 2001 Annual Performance Plan

Bureau of Export Administration

Performance Goal 3:

Facilitate Transition of Defense Industries

Rationale for Performance Goal

A strong economic/industrial infrastructure is partly dependent upon the ability to transition our defense industries to peacetime activities and products while at the same time maintaining technological superiority to support

the next generation of defense systems. This is accomplished by:

• Ensuring the continued viability of U.S. firms: Develop new commercial avenues for former defense products.

• Maintaining the economic viability of high tech industries: Provide the research base from which new

innovations will appear.

• Keeping U.S. defense firms competitive domestically and internationally: Develop new and innovative

product lines.

Measure 3.a:

Number of strategic industry analyses completed 333 485 295 295 300 323 716 458 352

200

300

400

500

600

700

800

900

1000

1996 1997 1998 1999 2000 2001

Number

Target Actual

Explanation:

These are analyses undertaken as part of the broad responsibility to support the U.S. defense industrial and technology base. They include reviews of the economic/industrial base impacts of:

• International Defense Memoranda of Understanding

• Sales/disposal from the national Defense Stockpile and of Excess Defense Articles

• Defense downsizing and base closure

• The practice of offsets in defense trade

• Unilateral export controls and foreign availability.

Also included are assessments of the international competitiveness and production capabilities of strategic industries and technologies. Specific categories of analyses include the following:

• Defense Diversification and Needs Assessment Survey response referrals

• Defense Memoranda of Understanding impact reviews

• Impact of Excess Defense Article assessments

• Stockpile Disposal Market impact analyses

• Industrial Capabilities studies

• Impact of Offsets in Defense Trade analyses

• Impact of Unilateral Export Controls analyses.

There is a significant drop in the number of Defense Diversification and Needs Assessment Survey response referrals

in FY 1998 and beyond because this program was funded in prior years by the Economic Development Administration, which is no longer providing funding for its continuation.

Data Validation and Verification:

Data collection: The analytical products are written

reports, which are forwarded to the requester and are

available for review and assessment.

Frequency: Annual

Data storage: The Office of Strategic Industry and

Economic Security collects and stores the data. Several

databases are involved.

Verification: None.

Data limitations: None

Actions to be taken: None

■ 
FY 2001 Annual Performance Plan 121

Bureau of Export Administration

Program Evaluation Efforts

• BXA coordinated Defense Trade Advocacy efforts that were instrumental in garnering sales of more than

$4 billion in Greece and Singapore.

• BXA completed a research project, Statistical Handbook of the Ball and Roller Bearing Industry. The

handbook is the result of a partnership between BXA and the American Bearing Manufacturers

Association (ABMA). The project was initiated at a bearing forum held at the Department of Commerce

in June 1997, and was subsequently coordinated with ABMA’s Statistical Committee. The handbook

places into a single reference volume the most useful publicly available statistics about the industry and

answers a longstanding call for such information.

• Defense Priorities and Allocations System (DPAS) support for the NATO Operation Allied Force in the

Balkans continued with a successful effort to expedite the production and delivery of component parts

and materials for the U.S. Air Force Joint Direct Attack Munition (JDAM) produced by Boeing. BXA

staff worked closely with nine Boeing subcontractors to accelerate deliveries. In addition, two of these

subcontractors, Rockwell-Collins and Honeywell, requested BXA assistance with their suppliers.

Accordingly, five Rockwell-Collins suppliers and 14 lower-tier electronic parts vendors to Honeywell’s

supplier, General Dynamics, were contacted to obtain accelerated deliveries of production materials.

BXA efforts saved up to two months of delivery lead-time that enabled Boeing to meet USAF delivery

requirement for 1320 JDAMs.

• BXA was successful in blocking a proposed U.S. Navy transfer of 48 Mk 46 torpedoes from the Excess

Defense Articles (EDA) stockpile to Greece. The transfer would have had a serious impact on manufacturer Raytheon’s marketing of torpedoes and upgrades in Greece. As a result of BXA intervention, the

U.S. Navy will withdraw the EDA request and the torpedoes will be sold to Greece.

Strategies and Activities

Strategies Activities

Macro- and micro-economic research is used to

support critical industry analyses and export control

assessments

-- Affected industries are surveyed and resulting

information is provided to the public at large.

--Proposed government actions affecting the well being

of firms are assessed and the consequences for the

companies and economy at large are measured and

provided to decision-makers.

Resource Requirements

Total Dollars: $0.5 million

FY 99 Actual FY 00 Enacted FY 01 Request

$0.5 M $0.5 M $0.5 M

Performance Goal 3:

Facilitate Transition of Defense Industries
122 FY 2001 Annual Performance Plan

Bureau of Export Administration

Cross-Cutting Activities

Government Agencies

• Department of Energy: BXA participates in an interagency review of foreign participation in DOE-sponsored

Research and Development Agreements. DOE is partnered with BXA in promoting the reuse of surplus

manufacturing equipment at former U.S. military bases.

• Departments of Labor, State and Treasury; U.S. Trade Representative (USTR): Representatives from these

departments participate in an interagency group chaired by BXA which prepares the annual report, Offsets

in Defense Trade, for the U.S. Congress.

• Department of Defense (DOD): BXA works closely with DOD in providing support for U.S. industry competing for international defense procurement opportunities.

• Department of State: BXA participates in the State-chaired Conventional Arms Transfer Committee.

• U.S. Trade Representative: BXA is part of a USTR-led interagency team that is developing and implementing

the U.S.- E.U. Transatlantic Economic Partnership.

External Factors and Mitigation Strategies

External Factors:

• The biggest external factor affecting the overall volume of strategic industry analyses completed is the

environment for international defense trade and cooperation.

• Domestic and international economic conditions affecting the health of U.S. strategic industry influence the

need for strategic industry analyses. The overall health of the global economy also impacts the number of

export licenses submitted.

• Unanticipated global events may also affect such analyses by shifting the commodities and destinations

subject to exports control, thereby requiring new industry analyses. These events may also result in

changes to control requirements.

Mitigation Strategy:

• Target analyses to the most critical industrial sectors and work with other like-minded supplier nations

to develop comparable acquisition and sales practices.

FY 99 Actual FY 00 Enacted FY 01 Request

$0.07 M $0.08 M $0.1 M

Total IT Dollars: $0.1 million

FY 99 Actual FY 00 Enacted FY 01 Request

8 8 8

Total FTEs: 8

Skill Summary: Program-related analytic skills

Performance Goal 3:

Facilitate Transition of Defense Industries
FY 2001 Annual Performance Plan 123

Minority Business Development Agency

Minority Business Development

Agency

Mission Statement:

MBDA promotes the growth of minority-owned businesses through increased access

to the marketplace and financing.

The Minority Business Development Agency (MBDA) seeks to foster the growth, competitiveness, and full participation of minority businesses in the global economy in the new millennium.

MBDA is the only federal agency mandated to encourage the growth and development of minority-owned businesses

in America. MBDA provides assistance to socially or economically disadvantaged groups who own or wish to start

or expand their own businesses, including African Americans, Native Americans, Puerto Ricans, Spanish-speaking

Americans, Eskimos, Aleuts, Asian Indians, Asian Pacific Americans and Hasidic Jews. MBDA accomplishes this

assistance by providing these groups with access to the marketplace and financing, management and technical

assistance, education and training. Access to the marketplace and financing continue to be major factors affecting

minority-owned businesses. Information that provides this access is key. In recognizing this important need, MBDA

has developed a number of electronic commerce initiatives.

U.S. DE PARliM EiNli OF ,coMMIH?:CE 

Ml- OlmY l!ill:SI . ES:S D . HOIP l AGE.NCY 
124 FY 2001 Annual Performance Plan

Minority Business Development Agency

Minority Business Development Agency

Office of

Administration

and

Management

Office of

Support

Services

Office of

Information

Technology

Services

Office of

Market

Access

Regional Offices

 Atlanta

 Chicago

 Dallas

 New York

 San Francisco

Office of

Financial

Access

Associate Director for Management Associate Director for Programs

Office of the Director

Deputy Director

Organizational Structure

MBDA’s headquarters is in Washington, D.C., where all activities are planned, developed, coordinated and evaluated.

MBDA has five Regional Offices (Atlanta, Chicago, Dallas, New York and San Francisco) and four District Offices

(Boston, Los Angeles, Miami and Philadelphia) where staff oversee assistance and services in multi-state regions. In

these multi-state regions, MBDA funds 42 Minority and Native American Business Development Centers, 7 Minority

Business Opportunity Committees, and 7 Business Resource Centers. The following organization chart reflects

MBDA’s structure for promoting business and economic development for minority-owned businesses and

entrepreneurs.

I 

I 

I I 

I I 

I I I I I I 
FY 2001 Annual Performance Plan 125

Minority Business Development Agency

Department-Wide

MBDA’s e-commerce initiatives for minority-owned businesses directly support the Secretary’s initiative to make the

Commerce Department a “Digital Department” by the year 2002. These initiatives include online business development centers that provide valuable information on emerging markets and other topics of interest to minority businesses. Also, specific online systems have been developed that contain and provide the information and tools for

minority businesses in areas of contract and procurement opportunities, capital access, management and technical

assistance and e-commerce education.

Bureau

MBDA’s bureau-specific initiatives support the Commerce Department’s “Digital Department” initiative as well. These

include employee professional development in e-commerce; common desktop computer structure for employees;

integrated networks and standardized databases for employee use; and use of electronic forms.

Highlights of the Minority Business Development Agency FY 2001 Performance and Plan

During FY 2001, MBDA will assist minority firms in understanding the “New Realities” of the business environment in

issues such as: Supply-Chain Management, Just-in-Time Delivery, contract bundling, quality assurance, ISO 9000,

electronic commerce, and emerging consumer marketplaces; providing more services electronicially; and developing

strategic partnerships with programs such as the Export Assistance Centers, and the Manufacturing Extension

Program Centers to provide a more sophisticated level of management and technical assistance for larger and

growing firms.

Targets and Performance Summary

Priorities

Performance Goal 1: Improve opportunities for minority-owned businesses to have access to the

marketplace

Measure FY 99 Actual FY 00 Target FY 01 Target

Dollar value of contracts awarded to assisted minority-owned

businesses

 $616 M $620 M $650 M

Performance Goal 2: Improve the opportunities for minority-owned businesses to pursue financing

Measure FY 99 Actual FY 00 Target FY 01 Target

Number of financial packages received by assisted minorityowned businesses 755 760 775

Dollar value of financial packages to assisted minority-owned

businesses

 $ 709 M $730 M $750 M
126 FY 2001 Annual Performance Plan

Minority Business Development Agency

Resource Requirements Summary

Total Bureau Dollars: $28.3 Million

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Improve opportunities for minority-owned

businesses to have access to the marketplace $14 M $14.3 M $15.3 M

Improve the opportunities for minority-owned

businesses to pursue financing $13 M $13 M $13 M

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Improve opportunities for minority-owned

businesses to have access to the marketplace 61 72 72

Improve the opportunities for minority-owned

businesses to pursue financing 41 48 48

Total FTEs: 120

Skill Summary: Marketing, Finance, Research, IT/Internet

Total Bureau IT Dollars: $2.0 Million

IT Requirements: Operations, maintenance and reengineering

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Improve opportunities for minority-owned

businesses to have access to the marketplace $.9 M $.9 M $1.2 M

Improve the opportunities for minority-owned

businesses to pursue financing $.6 M $.6 M $.8 M
FY 2001 Annual Performance Plan 127

we move toward a digital economy in which firms must use e-commerce tools to survive and grow.

economy by providing a mechanism to generate wealth, income, and employment. This is particularly important as

underutilized. Increased access to growth markets by minority-owned firms will benefit all segments of the U.S.

firms and 6% of total business receipts. This is evidence that the minority business sector is significantly

g , pppy 

0

200

400

600

800

1000

1998 1999 2000 2001 2002

Target Actual

Data collection:

Data Validation and Verification:

 Direct secure (SSL) Extranet

Frequency: 

link from MBDA HQ to client service delivery sites.

 Collect real-time, report quarterly

Data storage: The Performance Database

Verification: 

platform.

Management System running on a clustered

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verification survey.

Follow-up notices to

unresponsive clients.

annually.

programs. The report mechanism of this system is set to generate these reports daily, monthly, quarterly as well as

Reports generated from MBDA’s Performance Database Management System will be used to evaluate efforts of the

Program Evaluation Efforts

businesses have a greater opportunity to enhance their contribution to total business receipts.

goods and services domestically and abroad. If the dollar value of contracts awarded is substantial, minority-owned

dollars, that minority-owned businesses, assisted by MBDA, were successful in getting contract awards to provide

The dollar value of contracts awarded is an important measure because it demonstrates the extent, in terms of

Explanation

Dollar value of contracts awarded

Measure 1.a: 533 

620 

I 1650 

650 
128 FY 2001 Annual Performance Plan

Minority Business Development Agency

Resource Requirements Summary

Strategies Activities Budget

Request

Promote the increased use of e-commerce by

minority-owned firms

-- Match firms and opportunities electronically

(Phoenix and Opportunity Database System)

-- Train business executives in e-commerce (ECommerce Course)

$3.1 M

Provide information and management and

technical assistance nationwide

-- Locate business development resources

online (Resource Locator)

-- Learn how to start and grow a business

online (Online Business Development Center).

-- Find information about growth industries

online (Virtual Business Centers)

$3.1 M

Provide direct management and technical

assistance through a network of business

organizations

-- Fund a network of organizations to provide

personalized management and technical

assistance (Business Development Centers)

-- Fund a network of organizations to identify

contracting opportunities (Minority Business

Opportunity Committees)

-- Provide sophisticated market research to

locate new customers and stores (Market

Analyst)

$7.6 M

Provide leadership and services that advocate

entry into growth markets

-- Provide information and electronic tools to

gain access to the nation's fastest growing

consumer segment (Emerging Minority

Marketplace)

-- Sponsor a major national event where

minority businesses, corporations and policy

makers can develop solutions to business

problems (Minority Enterprise Development

(MED) Week)

$1.5 M

Strategies and Activities

FY 99 Actual FY 00 Enacted FY 01 Target

$14 M $14.3 M $15.3 M

FY 99 Actual FY 00 Enacted FY 01 Target

61 72 72

Total Bureau Dollars: $15.3 Million

Total FTEs: 72

Skill Requirements: Marketing, IT/Internet
FY 2001 Annual Performance Plan 129

Minority Business Development Agency

FY 99 Actual FY 00 Enacted FY 01 Target

$ 0.9 M $ 0.9 M $ 1.2 M

Total Bureau IT Dollars: $1.2 Million

Crosscutting Issues

Intra-DOC

MBDA works with the International Trade Administration (ITA) to assure that minority-owned businesses are

included in Department trade missions and other international trade opportunities and have access to the M&TA

services of the Export Assistance Centers.

MBDA works with the National Institute of Standards and Technology (NIST) and the National Oceanic and Atmospheric Administration (NOAA) to include minority-owned businesses in programs involving new and emerging

technology such as aquaculture and manufacturing technology and have access to M&TA services of the Manufacturing Extension Program Centers.

MBDA is working with Census to expand survey of minority-owned businesses annually and conduct research on

the Emerging Minority Marketplace to provide market information about the fastest growing consumer segment.

MBDA is working with the Economic Development Administration (EDA) to move minority-owned businesses into

its high technology business incubators.

Other Government Agencies

MBDA works with the Small Business Administration to assure that minority-owned small businesses benefit from

its existing management and technical assistance services available to other businesses.

MBDA works with the Export-Import Bank to ensure that minority-owned businesses have access to export financing and export markets.

MBDA works with the U.S. Agency for International Development on referral of trade opportunities to ensure that

minority businesses have access to export markets.

Strategies and Activities

• Emergence of the Digital Economy—Anecdotal evidence indicates that minority businesses are lagging in

their adoption of e-commerce technologies. MBDA has adopted a “leadership by example” strategy of

changing its own internal culture to adapting programs and service delivery to electronic technologies.

• Changing Demographics—Ninety percent of the net new growth in the U.S. population over the next 50

years will be in minority groups. This rapid change in demographics presents a lucrative consumer marketplace for minority firms. But they first must become aware of this change and adapt their business

practices. MBDA has commissioned the Census Bureau to develop information about this marketplace and

its purchasing power. New electronic online market research tools are being developed to bring this information to minority firms and it will be the focus of the year 2000 MED Week.

• New Business Practices—Corporate purchasing practices are undergoing a radical change that require

minority suppliers to alter their strategies. Supply-chain management, ISO 9000, and business-to-business

e-commerce demand that minority businesses also adopt e-commerce technology, be willing to partner with

other firms and reengineer their processes. MBDA will use its advocacy powers to inform and convince

minority firms of the need for these changes and provide access to the management and technical

assistance resources of new strategic partners such as the Electronic Commerce Resource Centers and

Manufacturing Extension Program Centers.

External Factors and Mitigation Strategies
130 FY 2001 Annual Performance Plan

Minority Business Development Agency

Explanation of Performance Goal

Access to capital continues to be a major obstacle for minority-owned businesses to get started and grow. According to

a policy brief dated February 1999 prepared by the Milken Institute on “Mainstreaming Minority Business,” demand for

capital in the minority community is estimated to be in excess of $144 billion per year, of which only $1.2 billion is

currently being satisfied. The continued growth of the minority business sector and the minority community will result in

skyrocketing capital demand over the next 20 years. Stakeholders interviews conducted by MBDA in 1997 further reflect

these financing difficulties. MBDA is working to address these difficulties by collecting and assessing information about

the financing needs of the minority business community; disseminating this information to financial institutions, policymakers and the minority business community; exploring innovative strategies and instruments to increase capital flow to

minority communities; and working in public/private partnerships.

Measure 2.a: Number of financial packages (loans)

Performance Goal 2:

Improve Opportunities for Minority-Owned Business to Pursue Financing

200

400

600

800

1000

1200

1400

1600

1998 1999 2000 2001 2002

Target Actual

100

300

500

700

900

1100

1300

1500

1998 1999 2000 2001 2002

Target Actual

Explanation

The number of financial packages is an important measure because it shows how many of the minority-owned

businesses assisted by MBDA were successful in getting access to financing to get started or to grow.

Measure 2.b: Dollar value of financial packages (loans)

Explanation

The dollar value of financial packages is an important measure because it measures the volume of “start up” and

expansion (or growth) finacing received by MBDA assisted minority-owned businesses.

Data Validation and Verification:

Data collection: Direct secure (SSL) Extranet link from

MBDA HQ to client service delivery sites.

Frequency: Collect real-time, report quarterly.

Data storage: The Performance Database Management

System running on a clustered platform.

Verification: A 100% client verification survey.

Data limitations: Responsiveness to the client

verification survey.

Actions to be taken: Follow up notices to unresponsive clients.

Data Validation and Verification:

Data collection: Direct secure (SSL) Extranet link

from MBDA HQ to client service delivery sites.

Frequency: Collect real-time, report quarterly.

Data storage: The Performance Database Management System running on a clustered (fail-over) SQL

platform.

Verification: A 100% client verification survey

Data limitations: Responsiveness to the client

verification survey.

Actions to be taken: Follow up notices to nonresponsive clients.

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FY 2001 Annual Performance Plan 131

Minority Business Development Agency

Program Evaluation Efforts

Strategies and Activities

Reports generated from MBDA’s Performance Database Management System will be used for the program evaluation efforts. The report mechanism of this system is set to generate these reports daily, monthly, quarterly as well

as annually. Client satisfaction with assistance, timeliness of responses and accuracy of information provided to

businesses are key factors on which the program evaluation efforts will be based.

Strategies Activities Budget

Request

Increase access to capital for minority firms by

providing electronic information and

management and technical assistance to firms

seeking capital

-- Create capital access website providing

information on applying for financing.

-- Provide personalized feedback to minority

firms via MBDA's Business Development

Centers and the Internet that will increase the

likelihood of obtaining capital.

$6.5 M

Enhance the ability of minority firms to apply for

debt capital by providing a streamlined,

electronic application process.

-- Capital access website.

-- Develop partnerships with national financial

institutions (e.g. Money Store, Bank of

America, First Union Bank, etc.) that focused

on penetrating the minority business

community.

$1.3 M

Educate the minority business community on

the requirements of applying for capital,

including necessary documentation, the

importance of credit scoring, etc.

-- Capital access website.

--Develop short brochure detailing how to apply

for a business loan.

$1.3 M

Produce periodic reports on the capital needs

of minority businesses and disseminate widely.

-- Produce study on the capital needs of

minority businesses.

-- Disseminate study to financial institutions,

the policymaking community and minority

businesses.

$2.6 M

Advocate for increased access to equity and

debt capital with federal and state

governments, financial institutions, and the

minority business community.

-- Policy forum and ongoing meetings on

innovative strategies to increase access to

capital for minority businesses

$1.3 M
132 FY 2001 Annual Performance Plan

Minority Business Development Agency

Resource Requirements Summary

Crosscutting Issues

FY 99 Actual FY 00 Enacted FY 01 Request

$13 M $13 M $13 M

Total Bureau Dollars: $13 Million

FY 99 Actual FY 00 Enacted FY 01 Request

$0.6 M $0.6 M $0.8 M

Total Bureau IT Dollars: $0.8 Million

FY 99 Actual FY 00 Enacted FY 01 Request

41 48 48

Total FTEs: 72

Skill Requirements: Finance / Research

External Factors and Mitigation Strategies

Other Government Agencies

MBDA works regularly with the SBA in a variety of areas. These include: providing information about SBA loan

guarantee programs to MBDA’s clients and funded network (BDCs), in connection with the Department of

Commerce’s Capital Access Task Force and Minority Business Coordinating Council; developing President Clinton’s

New Markets program; and pilot securitizations of small and minority business loans in California. In addition,

MBDA has collaborated with the National Economic Council, the Department of the Treasury, the Office of the

Comptroller of the Currency, the Federal Reserve and the Department of Housing and Urban Development on the

New Markets program and on the Department of Commerce’s Capital Access Task Force. Finally, MBDA has

worked closely with the California State Treasurer’s office on the pilot securizations in California.

Current Factor: The overall health of the economy and prevailing interest rates may influence the number and dollar

value of financial packages that can obtained by all businesses, including minority-owned businesses.

Current Strategy: MBDA will make every effort to ensure that information on financing opportunities is made available

to minority-owned businesses. MBDA will make extensive use of the Internet in doing this. Also, MBDA will

promote and help set up strategic alliances and joint ventures to provide financing opportunities for minority-owned

businesses.
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 133

National Oceanic and Atmospheric

Administration

NOAA conducts research to develop new technologies, improve operations, and supply the scientific basis for

managing natural resources and solving environmental problems. NOAA’s comprehensive system for acquiring

observations - from satellites to radar to ships and submersibles - provides the quality data and information needed

for the safe conduct of daily life and the efficient pursuit of the complex activities of modern society. Common

products and services include weather and climate warnings and forecasts, environmental technologies, marine

fisheries statistics and regulations, nautical charts, assessments of environmental changes, and hazardous

materials response information. These capabilities, products, and services support the domestic security and

global competitiveness of the United States, and they affect the lives of nearly every citizen today.

NOAA’s FY 2001 budget request provides the resources to maintain essential services, facilitate progress in key

investment areas of national interest, and address statutory obligations. This proposed budget ensures an

appropriate balance among the environmental assessment, prediction, and stewardship needs of the Nation. For

FY 2001, NOAA requests $2.9 billion and approximately 12,600 FTE to manage natural resources and provide

assessment and prediction of the Earth’s environment. NOAA efforts are key components of the Department of

Commerce strategic plan and will contribute significantly to achieving DOC’s strategic goals.

The challenge of investing strategically in the Nation’s future is accompanied by the requirement of effective agency

management, to identify and realize opportunities for savings, and to focus on what matters to Americans. NOAA

envisions a 21st century in which environmental stewardship, assessment, and prediction serve as keystones to

enhancing economic prosperity and quality of life, better protection of lives and property, and strengthening of the

U.S. balance of trade. This vision depends on NOAA actions that:

• Create and disseminate reliable assessments and predictions of weather, climate, space environment,

ocean and living marine resources, nautical and geodetic phenomena and systems.

• Implement integrated approaches to environmental management and ocean and coastal resources

development for economic and social health.

• Ensure continuous operational observing capabilities -- including buoys, satellites, ships, submersibles, and

radars.

• Build and use new information networks, including investing in state-of-the-art computing capabilities.

• Develop public-private, interagency, and international partnerships for the expansion, transfer, and

archiving of environmental knowledge.

• Invest in scientific research and the development of new technologies to improve current operations and

prepare for the future.

• Improve NOAA’s ability to serve its customers and forge stronger ties with its partners and stakeholders.

Mission Statement

The National Oceanic and Atmospheric Administration’s mission is to describe and predict changes in the

Earth’s environment, and conserve and manage wisely the Nation’s coastal and marine resources so as

to ensure sustainable economic opportunities.
134 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Priorities

Department-Wide

• Natural Resources - In support of this initiative, NOAA will work to reduce overfishing and overcapitalization of

the Nation’s fishery resources; better manage protected and threatened resources; protect coastal habitats

from continued loss and degradation; conduct more research into the effects of climate changes on the oceans

and atmosphere; and promote safe navigation.

• Minority Serving Institutions – NOAA contributes to the Department’s priority to support Minority Serving

Institutions (MSI) by proposing a $17 million increase in FY2001 to build capacity at MSIs. This initiative cuts

across all of NOAA’s strategic goals, and helps train students in sciences that serve NOAA’s mission.

Bureau

• Natural Disaster Reduction Initiative - NOAA contributes to this initiative by providing weather and climate

warnings and forecasts to the general public. The National Weather Service acquires and processes

hyrdometeorological, ocean, and space-based observations, conducts weather and climate research, and

maintains historical environmental data, and makes this information available to public and private concerns.

• Lands Legacy - The FY 2001 Budget provides resources to address the most serious challenges facing the

Nation’s coasts and oceans. This includes resources to enhance the twelve National Marine Sanctuaries which

allows NOAA to fulfill its mission of marine resource protection and management. Also included are additional

resources to maintain and protect our critical estuaries, as well as mapping and monitoring of fragile coral

reefs. With additional funds in FY 2001, NOAA will also address the effects of polluted run-off in coastal areas,

implement priority recommendations of the U.S. Coral Reef Task Force, enhance the recovery of threatened

and endangered coastal salmon, and provide grants to coastal States involved in offshore oil and gas production.

In addition, NOAA is a key player in the Administration’s Clean Water and South Florida Ecosystem Restoration Initiatives.

• Climate Observations and Services – During recent years, there has been a growing demand from emergency managers, the private sector, the research community, decision-makers in the U.S. and international

governmental agencies and the general public to provide timely data and information about climate variability,

climate change and trends in extreme weather events. The economic and social need for continuous, reliable

climate data and longer-range climate forecasts has been clearly demonstrated. This initiative will support

transitioning our current research efforts and knowledge into operational systems and products. To do this,

NOAA will focus its efforts to address key deficiencies in its observation and data management systems,

implement new ocean observations, and develop a broad spectrum of new forecast products.

• America’s Ocean Future Initiative - To implement the 1999 interagency report “Turning to the Sea: America’s

Ocean Future” NOAA’s FY 2001 Budget Request continues to focus on necessary actions designed to explore,

protect, and restore America’s vital ocean resources. Highlighting the important role the ocean plays in the

daily lives of all Americans, the Administration introduced measures to promote new scientific insight into the

oceans, sustain use of fisheries and other marine resources, provide new opportunities for economic growth,

and protect fragile coastal communities and ecosystems, such as coral reefs, from damage and environmental

degradation.
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 135

Under Secretary for Oceans & Atmosphere

& Administrator

Assistant Secretary for Oceans & Atmosphere & Deputy

Administrator

Deputy Under Secretary for Oceans & Atmosphere

Chief Scientist of NOAA

Counsellor to the Under Secretary

Deputy Assistant Secretary for Oceans & Atmosphere

Deputy Assistant Secretary for International Affairs

Naval & Air Force Deputies

• Public & Constituent

Affairs

• Sustainable Development &

Intergovernmental Affairs

• Policy &Strategic Planning

• Legislative Affairs

• International Affairs

• General Counsel

• Office of Marine &

Aviation Operations

• Finance & Administration

• Systems Acquisition

• Program Coordination

• High Performance

Computing & Communications

• Military Affairs

• Federal Coordinator for

Meteorology

National Marine

Fisheries Service

Assistant

Administrator

Fisheries

• Sustainable

Fisheries

• Protected

Resources

• Habitat

Conservation

• Science &

Technology

National Ocean Service

Assistant Administrator

Ocean Services and

Coastal Zone

Management

• Coast Survey

• National Geodetic

Survey

• Ocean & Coastal

Resources

Management

• Office of

Response and

Restoration

• National Centers

for Coastal Ocean

Science

 Oceanic & Atmospheric

Research

Assistant Administrator

Oceanic & Atmospheric

Research

• National Undersea

Research Program

• National Sea Grant

College Program

• Office of Global

Programs

• NOAA Research

Laboratories

National Weather

Service

Assistant Administrator

Weather Services

• Meteorology

• Hydrology

• AWIPS Program

• Systems Operations

• Systems

Development

• National Centers for

Environmental

Protection

• NWS Training

Center

National Data Buoy

Center

6 Regions

National

Environmental

Satellite, Data &

Information Service

Assistant

Administrator Satellite

& Information

Services

• Satellite

Operations

• Satellite Data

Processing &

Distributions

• Research &

Applications

• Systems

Development

• National Climatic

Data Center

• National

Oceanographic

Data Center

• National

Geophysical Data

Center

Organizational Structure

NOAA Specific Management Challenges

For FY 1999 an IPA firm has reported that preliminary analysis indicates an unqualified opinion on all financial

statements, no material weaknesses, four reportable conditions, and five management letter comments.

NOAA’s progress indicates a commitment to preparing high-quality, reliable, and meaningful financial statements.

Remaining fiscal internal controls and the production of recurring financial reports and statements can only be

addressed with the replacement of NOAA’s current financial system. To this end, NOAA is proceeding with the

implementation of the Commerce Administrative Management System (CAMS).

I 

I I I I I 
136 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Targets and Performance Summary

Performance Goal 1: Advance Short-Term Warning and Forecast Services

Measure FY 99 Actual FY 00 Target FY 01 Target

Increase lead time (minutes) and accuracy (%) for severe

weather warnings for Tornadoes

12 min

70% accuracy

12 min

70% accuracy

13 min

70% accuracy

Decrease false alarm rate (FAR) (%) for severe weather

warnings for Tornadoes 72% FAR 65% FAR 59% FAR

Increase lead time (minutes) and accuracy (%) for severe

weather warnings for Flash Floods

41 min

83% accuracy

55 min

86% accuracy

57 min

86% accuracy

Increase lead time (hours) of warnings for Hurricanes 23 hours 20 hours 21 hours

Increase accuracy (%) of 3-day forecast of precipitation N/A 20% 22%

Increase lead time (hours) and accuracy (%) of warnings

for Winter Storms

11 hours

85%

12 hours

85%

13 hours

86%

Increase accuracy (%) and decrease false alarm rate (%)

of forecasts of ceiling and visibility (Aviation Forecasts)

19%

52%

20%

50%

21%

46%

Increase accuracy (%) of forecast for winds and waves

(Marine Forecasts) 50% 51% 53%

Performance Goal 2: Implement Seasonal to Interannual Climate Forecasts

Measure FY 99 Actual FY 00 Target FY 01 Target

ENSO Forecasts - Accuracy (correlation) .85 .85 .85

U.S. temperature - skill score 24 20 20

New and improved data sets developed and produced

(cumulative per year) 6 6 6

Global Ocean-Atmosphere-Land System (GOALS)

experiments implemented (%) 20% 25% 25%

Highlights of NOAA’s FY 2001 Performance Plan

To fulfill its mission, NOAA continues to develop new technologies, improve operations, and supply the scientific

basis for managing natural resources and solving environmental problems. The FY 2001 request supports NOAA’s

role by providing resources to maintain essential service, facilitate progress in key investment areas of national

interest, and address statutory obligations. This request ensures an appropriate balance among the environmental

assessment, prediction and stewardship needs of the Nation.
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 137

Performance Goal 3: Predict and Assess Decadal to Centennial Change

Measure FY 99 Actual FY 00 Target FY 01 Target

Document the "turnover" of CFC source gases in order to

verify the effectiveness of global policy action 1 N/A N/A

Publish updated trend results of air quality measurements 1 N/A 1

Lead development of a peer reviewed initial assessment of

regional ozone in North America, including summarizing

results for customers

1 N/A N/A

Results of 90% of the research activities cited in the 2001

IPCC third Assessment of Climate Change N/A N/A 90% cited

Performance Goal 4: Promote Save Navigation

Measure FY 99 Actual FY 00 Target FY 01 Target

Percent critical area survey backlog reduced (43,000 SNM

backlog) cumulative reduction 20.7% 24.3% 27.8%

Percent of National Spatial Reference System (cumulative

complete) 59% 64% 72%

Performance Goal 5: Build Sustainable Fisheries

Measure FY 99 Actual FY 00 Target FY 01 Target

Percent of fish stocks assessed of 201 identified 79% N/A N/A

Number of Fishery Management Plans with controlled

access implemented 27 N/A N/A

By 2005, 25% fewer overfished fisheries (currently 86 of

279 stocks are overfished.) N/A -8% 1%

By 2005, 60% of stocks have sufficient essential fish

habitat N/A 10% 40%

By 2005, 9% increase in employment in non-capture

fishing and other sectors in fishing communities N/A 1% 3%

By 2005, 17% increase in economic contribution of

aquaculture to Gross Domestic Product (GDP) N/A 2% 4%

Targets and Performance Summary
138 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Performance Goal 6: Recover Protected Species

Measure FY 99 Actual FY 00 Target FY 01 Target

Number of recovery plans/conservation plans developed 24 27 N/A

Number of species with population status improved 15 16 N/A

Number of annual investigations of mortality of protected

species 10 15 N/A

BY 2005, reduce the probability of extinction of 5

threatened species/ESUs out of 23 threatened

species/ESUs (cumulative)

N/A N/A 0

BY FY 2005 mortality of strategic marine mammal stocks

incidental to commercial fishing operations in six fisheries

will be at insignificant levels (annual)

N/A N/A 6

BY 2005, reduce the probability of extinction of 8

endangered species/Endangered Species Units (ESUs)

(cumulative)

N/A N/A 0

Performance Goal 7: Sustain Healthy Coasts

Measure FY 99 Actual FY 00 Target FY 01 Target

Number acres of coastal habitat restored (cumulative) 43,000 55,000 70,000

Number of U.S. coastal regions with reduced introductions

and impacts of non-indigenous species (total of 6 regions) 0 1 2

Percent of U.S. shoreline and inland areas with improved

ability to identify extent and severity of coastal hazards 5% 14% 18%

Targets and Performance Summary
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 139

Resource Requirements Summary

Total Dollars: $2.9 Billion

Total FTEs: 12,600

Skill Summary: Meteorologists, Hydrologists, Engineers, Oceanographers, Physical Scientists,

Atmospheric Scientists, Computer Specialists, Chemists, Physicists, Mathematicians, Cartographers, Fishery Biologists, Fishery Economists, Ecologists, Marine Ecologists, Toxicologists

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Advance Short-Term Warning and Forecast

Services $1,351.0M $1,261.0M $1,364.5M

Implement Seasonal to Interannual Climate

Forecasts $105.4M $121.2M $129.5M

Predict and Assess Decadal to Centennial

Change $117.1M $95.4M $114.2M

Promote Safe Navigation $155.5M $104.6M $109.5M

Build Sustainable Fisheries $684.0M $441.6M $435.4M

Recover Protected Species $85.4M $154.6M $278.3M

Sustain Healthy Coasts $270.1M $274.6M $483.6M

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Advance Short-Term Warning and Forecast

Services 6,351 6,145 6,178

Implement Seasonal to Interannual Climate

Forecasts 549 561 563

Predict and Assess Decadal to Centennial

Change 485 486 508

Promote Safe Navigation 878 878 868

Build Sustainable Fisheries 2,330 2,460 2,479

Recover Protected Species 575 682 712

Sustain Healthy Coasts 890 867 912
140 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Total IT Dollars: 277.0 Million

IT Requirements: Advanced Weather Interactive Processing System (AWIPS), Next Generation

Weather Radar (NEXRAD) System, Geostationary Operational Environmental Satellites (GOES)

Ground System, Geophysical Fluid Dynamics Laboratory (GFDL), National Marine Fisheries

Service Fishing Information Technology System, Climate Prediction Center Climate Computer

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Advance Short-Term Warning and Forecast

Services $161.0M $182.8M $107.0M

Implement Seasonal to Interannual Climate

Forecasts $20.4M $16.7M $27.8M

Predict and Assess Decadal to Centennial

Change $9.6M $5.0M $7.3M

Promote Safe Navigation $3.9M $3.2M $3.7M

Build Sustainable Fisheries $24.5M $24.0M $33.0M

Recover Protected Species $24.5M $24.0M $33.0M

Sustain Healthy Coasts N/A N/A N/A

Resource Requirements Summary (cont.)
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 141

Performance Goal 1:

Advance Short-Term Warnings and Forecasts

Measure 1.a:

Increase lead time (minutes) and accuracy (%) for severe weather warnings for

Tornadoes

Rationale for Performance Goal

The environment has profound effects on human welfare and economic well-being. Significantly improved

short-term warning and forecast products and services enhance public safety, through the protection of life and

property, and the economic productivity of the Nation. They also enhance NOAA’s ability to observe, understand,

and model the environment, and effectively disseminate products and services to users. 11121213131415 11

0

5

10

15

20

1998 1999 2000 2001 2002 2003 2004

Minutes

Actual Target

66

70707070

72

74

70

0

20

40

60

80

100

1998 1999 2000 2001 2002 2003 2004

Accuracy (%)

Actual Target

Explanation

The lead time for a tornado warning is the difference between the time the warning was issued and the time the

tornado affected the area for which the warning was issued. The lead times for all tornado occurrences throughout

the year are averaged to get this statistic. The accuracy of the warnings is the percentage of times a tornado

actually occurred in an area that was already covered by a warning.

Data Validation and Verification:

Data collection: National Weather Service (NWS) Field Offices

Frequency: Monthly

Data storage: National Weather Service Headquarters (NWSH), Office

of Meteorology (OM), Silver Spring, MD

Verification: Verification is the process of comparing the predicted

weather to the actual event. The process begins with the collection of

warnings from every NWS office across the Nation. Warnings are

received real-time and stored as files on an Office of Systems

Operations (OSO) server at NWSH. OM accesses the OSO server to

retrieve the warnings and parse the data into a relational database. OM

transmits weekly reports of the warning information to each NWS office

where they are quality controlled for correctness. Each NWS office

transmits to OM monthly reports of severe weather events using a

computer application program designed specifically for that purpose.

The severe weather event program includes extensive quality control

checks to ensure the highest possible reliability of each report. The

data in each report is parsed into the relational data base that also

contains the severe weather warnings. The warnings and events are

matched and appropriate statistics are calculated and made available

to all echelons of the NWS.

Data limitations: There are limitations of scientific verification in

assessing data. The fundamental purpose of scientific verification is to

objectively assess program performance through the use of standard

statistical analysis. However, a number of factors unique to the

atmospheric sciences must be considered to ensure proper interpretation of objectively derived statistics. The primary factor to consider is

the natural variation of this performance measure related to annual

fluctuations in meteorological conditions associated with severe

weather. Outyear measures are dependent on a stable funding profile

and take into account improved use of the Weather Surveillance Radar

(WSR-88D), new satellites, improved forecast models, new and

continued U.S. Weather Research Program (USWRP) research

activities, investments in critical observing systems, and continued

support of the Advanced Weather Interactive Processing System

(AWIPS).

Actions to be taken: Data collection and verification will continue and

false alarm rates will be reported in future years. Forecaster accessibility to this data will be enhanced.

-

I• □ 

I• □ 
142 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Performance Goal 1:

Advance Short-Term Warnings and Forecasts

Measure 1.b:

Decrease false alarm rate (FAR) (%) for severe weather warnings for Tornadoes

72

65

59

53

48

44

40

50

60

70

80

90

100

1999 2000 2001 2002 2003 2004

Percent

Explanation

The false alarm rate is the percentage of all warnings that are incorrect, such as a tornado warning that was issued

for a particular area, but a tornado did not occur.

Data Validation and Verification:

Data collection: National Weather Service (NWS) Field Offices

Frequency: Monthly

Data storage: National Weather Service Headquarters (NWSH), Office

of Meteorology (OM), Silver Spring, MD

Verification: Verification is the process of comparing the predicted

weather to the actual event. The process begins with the collection of

warnings from every NWS office across the Nation. Warnings are

received real-time and stored as files on an Office of Systems

Operations (OSO) server at NWSH. OM accesses the OSO server to

retrieve the warnings and parse the data into a relational database. OM

transmits weekly reports of the warning information to each NWS office

where they are quality controlled for correctness. Each NWS office

transmits to OM monthly reports of severe weather events using a

computer application program designed specifically for that purpose.

The severe weather event program includes extensive quality control

checks to ensure the highest possible reliability of each report. The

data in each report is parsed into the relational data base that also

contains the severe weather warnings. The warnings and events are

matched and appropriate statistics are calculated and made available

to all echelons of the NWS.

Data limitations: There are limitations of scientific verification in

assessing data. The fundamental purpose of scientific verification is to

objectively assess program performance through the use of standard

statistical analysis. However, a number of factors unique to the

atmospheric sciences must be considered to ensure proper interpretation of objectively derived statistics. The primary factor to consider is

the natural variation of this performance measure related to annual

fluctuations in meteorological conditions associated with severe

weather. Outyear measures are dependent on a stable funding profile

and take into account improved use of the Weather Surveillance Radar

(WSR-88D), new satellites, improved forecast models, new and

continued U.S. Weather Research Program (USWRP) research

activities, investments in critical observing systems, and continued

support of the Advanced Weather Interactive Processing System

(AWIPS).

Actions to be taken: Data collection and verification will continue and

false alarm rates will be reported in future years. Forecaster accessibility to this data will be enhanced.
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 143

Measure 1.c:

Increase lead time (minutes) and accuracy (%) for severe weather warnings for

Flash Floods 85 8385

8686

87

88

89

60

65

70

75

80

85

90

95

100

1998 1999 2000 2001 2002 2003 2004

Percent

Actual Target

Explanation

The lead time for a flash flood warning is the difference between the time the warning was issued and the time the

flash flood affected the area for which the warning was issued. The lead times for all flash flood occurrences

throughout the year are averaged to get this statistic. The accuracy of the warnings is the percentage of times a

flash flood actually occurred in an area that was already covered by a warning.

Performance Goal 1:

Advance Short-Term Warnings and Forecasts

Data Validation and Verification:

Data collection: National Weather Service (NWS) Field Offices

Frequency: Monthly

Data storage: National Weather Service Headquarters (NWSH), Office of

Meteorology (OM), Silver Spring, MD

Verification: Verification is the process of comparing the predicted

weather to the actual event. The process begins with the collection of

warnings from every NWS office across the Nation. Warnings are received

real-time and stored as files on an Office of Systems Operations (OSO)

server at NWSH. OM accesses the OSO server to retrieve the warnings

and parse the data into a relational database. OM transmits weekly

reports of the warning information to each NWS office where they are

quality controlled for correctness. Each NWS office transmits to OM

monthly reports of severe weather events using a computer application

program designed specifically for that purpose. The severe weather event

program includes extensive quality control checks to ensure the highest

possible reliability of each report. The data in each report is parsed into

the relational data base that also contains the severe weather warnings.

The warnings and events are matched and appropriate statistics are

calculated and made available to all echelons of the NWS.

Data limitations: There are limitations of scientific verification in

assessing data. The fundamental purpose of scientific verification is to

objectively assess program performance through the use of standard

statistical analysis. However, a number of factors unique to the atmospheric sciences must be considered to ensure proper interpretation of

objectively derived statistics. The primary factor to consider is the natural

variation of this performance measure related to annual fluctuations in

meteorological conditions associated with severe weather. Outyear

measures are dependent on a stable funding profile and take into account

improved use of the Weather Surveillance Radar (WSR-88D), new

satellites, improved forecast models, new and continued U.S. Weather

Research Program (USWRP) research activities, investments in critical

observing systems, and continued support of the Advanced Weather

Interactive Processing System (AWIPS).

Actions to be taken: Data collection and verification will continue and new

performance measures will be reported in future years. Forecaster

accessibility to this data will be enhanced.

52

41 54

55

57

59

61

62

20

30

40

50

60

70

80

90

100

1998 1999 2000 2001 2002 2003 2004

Minutes

Actual Target

I 

I• □ 

I• □ 
144 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Measure 1.e:

Increase accuracy (%) of 3-day forecast of precipitation

Explanation

The accuracy of a forecast of precipitation issued 3 days in advance.

Measure 1.d:

Increase lead time (hours) of warnings for Hurricanes

Explanation

A hurricane warning is issued when hurricane force winds are predicted to affect a portion of the U.S. coastline.

The lead time is critical for the evacuation of vulnerable areas

Performance Goal 1:

Advance Short-Term Warnings and Forecasts

19 20 21 22 23 24

0

10

20

30

40

1999 2000 2001 2002 2003 2004

Hours

Target

20 22 24 26 28

0

10

20

30

40

2000 2001 2002 2003 2004

Percent

Data Validation and Verification:

Data collection: National Hurricane Center (NHC)

Frequency: Annual

Data storage: NHC/Tropical Prediction Center, Miami, FL

Verification: Hurricane storm verification is performed for

hurricanes, tropical storms, and tropical depressions and

considered whether over land or water. The NHC issues warning

when hurricane conditions are expected along the coast within 24

hours. The location and timing of these warnings are based upon

a number of factors, including the official NHC track forecast.

The average lead times for hurricane warnings in the Atlantic

basin are calculated at the end of each hurricane season.

Data limitations: There is large variability in the hurricane

warning program due to sample sizes and types of storms each

year. There may be years with unusually easy or difficult

forecasts. Outyear measures are dependent on a stable funding

profile and take into account improved use of the WSR-88D, new

satellites, improved forecast models, new and continued research

activities of the USWRP, investments in critical observing

systems, and continued support of AWIPS.

Actions to be taken: Data collection and verification will continue

and accuracy of lead time will be reported.

Data Validation and Verification:

Data collection: Hydrometeorological Prediction Center (HPC)

Frequency: Annual

Data storage: World Weather Building, Camp Springs, MD

Verification: HPC has produced the Quantitative Precipitation

Forecast (QPF) since the early 1960s and has kept verification

statistics related to the QPF program since that time. All data is

examined for accuracy and quality control procedures are applied.

Data limitations: The NWS routinely prepares and distributes to

internal and external customers predictions of heavy rainfall. The

HPC has the responsibility to prepare both graphical and text

products depicting the areas threatened by heavy precipitation in

the contiguous United States. There will be a significant amount of

variability and the improvements may not be achieved exactly as

predicted. Outyear measures are dependent on a stable funding

profile and take into account improved use of the WSR-88D, new

satellites, improved forecast models, new and continued research

activities of the USWRP, investments in critical observing

systems, and continued support of AWIPS.

Actions to be taken: Data collection and verification will continue.

Forecaster accessibility to this data will be enhanced.

- - -

-

-
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 145

Measure 1.f:

Increase lead time (hours) and accuracy (%) of warnings for Winter Storms

Explanation

A winter storm warning is issued when 4 or more inches of snow or sleet is expected in the next 12 hours, or 6 or

more inches in 24 hours, or 1/4 inch or more of ice accretion is expected.

Performance Goal 1:

Advance Short-Term Warnings and Forecasts

Data Validation and Verification:

Data collection: National Weather Service (NWS) Field Offices

Frequency: Daily

Data storage: National Weather Service Headquarters (NWSH),

Office of Meteorology, Silver Spring, MD

Verification: Verification is the process of comparing the predicted

weather to the actual event. The process begins with the collection of

forecasts and observational from each NWS office across the Nation.

The quality controlled, collated data are transmitted to the National

Centers for Environmental Prediction in Camp Springs, MD where

it is stored as computer files. The data files are retrieved by the

NWSH, Office of System Development (OSD). Following

additional quality control the data are stored on an OSD workstation and used to generate semi-annual statistics on forecast

accuracy.

Data Limitations: Documentation for heavy snowfall is printed

annually. Due to the relatively few number of cases each year, the

projections assume a 3-year average (current plus 2 previous years

equally weighted). Due to the large volume of data gathered and

computed, a document for the above cannot be finalized until well

into the following fiscal year. Outyear measures are dependent on a

stable funding profile and take into account improved use of the

WSR-88D, new satellites, improved forecast models, new and

continued research activities of the USWRP, investments in critical

observing systems, and continued support of AWIPS.

Actions to be taken: Data collection and verification will continue.

Forecaster accessibility to this data will be enhanced.

11 12 13 14

16 15

0

5

10

15

20

25

1999 2000 2001 2002 2003 2004

Hours

85 85 86 87 88 89

0

20

40

60

80

100

120

1999 2000 2001 2002 2003 2004

Percent

- - - - - -

- - -
146 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Measure 1.g:

Increase accuracy (%) and decrease false alarm rate (%) of forecasts of ceiling and

visibility (Aviation Forecasts)

Explanation

Visibility and cloud ceiling forecasts are critical for aircraft operations.

Data Validation and Verification:

Data collection: National Weather Service (NWS) Field

Offices

Frequency: Daily

Data storage: National Weather Service Headquarters

(NWSH), Office of Meteorology, Silver Spring, MD

Verification: Verification is the process of comparing the

predicted weather to the actual event. The process begins

with the collection of forecasts and observational from each

NWS office across the Nation. The quality controlled,

collated data are transmitted to the National Centers for

Environmental Prediction in Camp Springs, MD where it is

stored as computer files. The data files are retrieved by the

NWSH, Office of System Development (OSD). Following

additional quality control the data are stored on an OSD

workstation and used to generate semi-annual statistics on

forecast accuracy.

Data limitations: Documentation for temperature verification

is printed annually. Due to the large volume of data gathered

and computed, documentation for the above cannot be

finalized until well into the following fiscal year. Outyear

measures are dependent on a stable funding profile and take

into account improved use of the WSR-88D, new satellites,

improved forecast models, new and continued research

activities of the USWRP, investments in critical observing

systems, and implementation of AWIPS.

Actions to be taken: Data collection and verification will

continue. Forecaster accessibility to this data will be

enhanced.

Performance Goal 1:

Advance Short-Term Warnings and Forecasts

19 20 21 23

27 25

0

5

10

15

20

25

30

35

40

1999 2000 2001 2002 2003 2004

Accuracy (%)

52 50 46 41

31 36

0

20

40

60

80

100

1999 2000 2001 2002 2003 2004

FAR (%)

-
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 147

Measure 1.h:

Increase accuracy (%) of forecast for winds and waves (Marine Forecasts)

Performance Goal 1:

Advance Short-Term Warnings and Forecasts

Data Validation and Verification:

Data collection: National Weather Service (NWS) Field Offices

Frequency: Daily

Data storage: National Weather Service, National Centers for

Environmental Prediction (NCEP), Ocean Modeling Branch (OMB),

Camp Springs, MD

Verification: Verification is the process of comparing the predicted

weather to the actual event. The process begins with the collection of

forecasts and observational from each NWS office across the Nation.

The quality controlled, collated data are transmitted to the National

Centers for Environmental Prediction in Camp Springs, MD where it is

stored as computer files. The data files are retrieved by the NWS,

NCEP, OMB. Following additional quality control the data used to

generate quarterly statistics on forecast accuracy.

Data Limitations: Documentation for temperature verification is printed

annually. Due to the large volume of data gathered and computed,

documentation for the above cannot be finalized until well into the

following fiscal year. Outyear measures are dependent on a stable

funding profile and take into account improved use of the WSR-88D, new

satellites, improved forecast models, new and continued research

activities of the USWRP, investments in critical observing systems, and

implementation of AWIPS.

Actions to be taken: Current data collection and verification will

continue and national data collection and verification will be added for

forecasts for the Great Lakes. Forecaster accessibility to this data will

be enhanced.

50 51 53 55 61 58

0

20

40

60

80

100

1999 2000 2001 2002 2003 2004

Accuracy (%)

Explanation

Wind speeds and waves heights are critical for the safe operations of ships and boats.

Program Evaluation Efforts

• Program evaluations at NWS field offices are conducted annually.

• Quality control procedures are also followed to ensure the highest possible reliability of gathered data and

weather products.

• The National Academy of Sciences is also involved in program analysis and evaluation processes on a

national level.

- - -
148 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Strategies Activities Budget

Request

Sustain modernized weather service

operations.

Increase understanding of the environment

through research and investments in new

technologies to provide to provide more

accurate and timely weather warnings and

forecasts required by the Nation.

 $743.2M

Maintain continuous operational satellite

coverage critical for warnings and forecasts.

Position satellites over the United States to

provide uniform coverage with visible and

infrared (day and night) imagery. Combine

satellite coverage with data from other systems

to form a complete set of information about the

space from the Earth's surface to the upper

atmosphere.

 $500.8M

Strengthen observing and prediction systems. Improve observing systems, develop better

understanding of natural processes, and

enhance predictive models and dissemination

systems through scientific, technological and

programmatic advances, and international

cooperation.

 $62.0M

Improve customer service to the public,

emergency managers, the media, and private

forecasters.

Utilize telecommunications systems to ensure

effective dissemination to the users of

weather forecasts, warnings, and other

products.

Expand external outreach activities to ensure

customers can effectively use NOAA's

products.

 $13.6M

FY 99 Actual FY 00 Enacted FY 01 Request

$1,350,923 $1,261,027 $1,364,520

FY 99 Actual FY 00 Enacted FY 01 Request

6351 6145 6178

Total FTE: 6,178

Skill Summary: Meteorologists, Hydrologists, Electronic Technicians, Hydrometeorological

Technicians, Engineers, Oceanographers

Performance Goal 1:

Advance Short-Term Warnings and Forecasts

Total Dollars: $1.4 billion

Strategies and Activities

Resource Requirements

I 
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 149

Total IT Dollars: 107.2 million

IT Requirements: Advanced Weather Interactive Processing System:, Next Generation Weather

Radar (NEXRAD) System, Geostationary Operational Environmental Satellites (GOES) Ground

System, Automated Surface Observing System (ASOS).

Performance Goal 1:

Advance Short-Term Warnings and Forecasts

Cross-Cutting Issues

Intra-DOC

NOAA works closely with NIST and EDA, and other agencies such as FEMA, the Corps of Engineers, the Bureau

of Reclamation, and others as well as State and local governments to participate in the Federal Natural Disaster

Reduction initiative which is focused on reducing the costs of natural disasters and saving lives through improved

warnings and forecasts and the provision of information to improve resiliency to disaster.

Other Government Agencies

Weather and climate services are provided to the public and industry through a unique partnership between NOAA

and the private meteorological sector. NOAA provides forecasts and warnings for public safety, and the private

sector promotes dissemination of forecasts and the tailoring of basic information for business uses.

NOAA works very closely with DoD, especially the Air Force, to complement DoD meteorological services in the

interest of national security. NOAA works closely with the U.S. Coast Guard for the dissemination of marine

weather warnings and forecasts. NOAA also works directly with FAA on aviation forecasts and with NASA on

launch forecasts and solar forecast effects.

External Factors and Mitigation Strategies

A number of factors unique to the atmospheric sciences must be considered when reviewing the performance

measures for this goal. The primary factor to consider is the natural variation of this goal related to annual fluctuations in meteorological conditions associated with severe weather. Another factor is that damage to critical equipment (e.g. supercomputer fire, satellite outage) can impact daily operations for extended periods, even though

numerous safety measures and back-up procedures are in place.

Although the performance measure under this goal may improve, the impact on society may not be obvious due to

factors beyond our control. For example, the hurricane warnings may become more accurate, but because of the

increase in population along the coastlines, the deaths, injuries, and/or damage estimates may increase.

FY 99 Actual FY 00 Enacted FY 01 Request

$160.9M $182.9M $107.2M

Resource Requirements
150 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration 0.85 0.85 0.85 0.85 0.85 0.85 0.85

0.4

0.6

0.8

1

1.2

1.4

1998 1999 2000 2001 2002 2003

Correlation

Actual Target

Explanation

The 1997-1998 El Niño was the best monitored and most successfully predicted El Niño on record. NOAA provided

advance forecast of El Niño impacts, leading to great savings to a variety of economic sectors. ENSO forecasts

require a variety of data, such as ocean observations, remote satellite-based observations, and terrestrial measurements. This program is the only U.S. Federal effort aimed at providing forecasts of climate events and their consequent impacts

Data Validation and Verification:

Data collection: Forecasts of sea surface temperature in a portion of the

Pacific Ocean, and observations from buoys, ships, and satellites.

Frequency: Annual

Data storage: National Weather Service’s National Centers for Environmental Prediction, Camp Springs, MD

Verification: NOAA quality controls the incoming data (e.g., error

checking, interstation comparison), and the satellite data can be compared

with the in situ data to help validate the data accuracy.

Data limitations: This measure assesses the correlation between

forecasts of sea surface temperature (based on models) and actual sea

surface temperature (based on satellite and in situ observations). Improvements in forecasting ability depend upon improved observations, models,

and research. Forecasts will likely be better in El Niño years than in non-El

Niño years.

Actions to be taken: Efforts will be undertaken to determine the limits in

predictability of the atmosphere induced by tropical Pacific sea surface

temperature changes, to diagnose and model the global response to warm,

cold and neutral states of the ENSO cycle, and to examine the changes in

probabilities of extreme events induced by ENSO.

Performance Goal 2:

Implement Seasonal to Interannual Climate Forecasts

Rationale for Performance Goal

NOAA works with academic and international partners to provide one-year lead-time forecasts of global climate

variability, especially El Niño, and consequent precipitation and surface temperature distributions. These forecasts

increase society’s ability to mitigate economic losses and social disruption from such events.

Measure 2.a:

ENSO (El Niño/Southern Oscillation) Forecasts - Accuracy (correlation)

- - - - -

I• □ 
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 151

Measure 2.b:

U. S. temperature - skill score 2324 2020 2629 20

0

5

10

15

20

25

30

35

40

1998 1999 2000 2001 2002 2003

Skill Score

Actual Target

Performance Goal 2:

Implement Seasonal to Interannual Climate Forecasts

Data Validation and Verification:

Data collection: Forecast data, observations from U.S.

Weather Forecast Offices (WFO) and from a cooperative

network maintained by volunteers across the Nation..

Frequency: Annual

Data storage: National Weather Service’s National Centers for

Environmental Prediction, Camp Springs, MD

Verification: NOAA performs quality assurance analysis of the

data (e.g., error checking, elimination of duplicates, interstation

comparison) both at the national and WFO level.

Data limitations: For those areas of the United States where a

temperature forecast (i.e., warmer than normal, cooler than

normal, normal) is made, this score measures how much better

the prediction is than the random chance of being correct. Skill

score is based on a scale of -50 to +100. If forecasters match

what would be predicted by random chance, the skill score is 0.

Anything above 0 shows positive skill in forecasting. Given the

difficulty of making advance temperature and precipitation

forecasts for specific locations, a skill score of 20 is considered

quite good and means the forecast was correct in almost 50

percent of the locations forecasted. Forecasts will likely be

better in El Niño years than in non-El Niño years.

Actions to be taken: Temperatures across the U.S. will be

measured using NOAA’s cooperative network maintained by

volunteers across the Nation. Temperature data will be

collected and analyzed by NOAA.

Explanation

Accurate measures of temperature are critical to many sectors of the national economy, including agriculture and

energy utilities. This measure compares actual observed temperatures with those forecasted from areas all across

the country.

- -

I• D 
152 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Measure 2.d:

Global Ocean-Atmosphere-Land System (GOALS) experiments implemented (%) 15202025303540

0

10

20

30

40

50

60

199819992000200120022003

Percent

Actual Target

Explanation

The Global Ocean-Atmosphere-Land System (GOALS) program builds upon the successful El Niño research of the

recently completed Tropical Ocean-Global Atmosphere (TOGA) program. While TOGA made possible our ability to

forecast El Niño up to a year in advance with useful skill, the forecasts are limited in that they focus on the evolution

of the tropical Pacific and its related climate impacts. GOALS is designed to continue research necessary for

continuous improvements of El Niño predictions and to extend predictability of climate fluctuations beyond the

tropical Pacific to include the effects of the other tropical oceans, higher latitude oceans, and land surface processes on seasonal-to-interannual climate variability, particularly at higher latitudes. For more information on

GOALS, please visit the following website: http://www.ogp.noaa.gov/MPE/GOALS/goals.html

Measure 2.c:

New and improved data sets developed and produced (cumulative per year) 13191925313743

0

10

20

30

40

50

60

1998 1999 2000 2001 2002 2003

Cumulative Number

Actual Target

Explanation

NOAA collects in situ as well as satellite data over the oceans and land. The data are quality controlled and

archived by NOAA. The data sets are used to calibrate, initialize, and verify forecasting models run by computers.

In addition, these databases are valuable in that they help in monitoring the current climate, as well as in better

understanding historical climate variability.

Performance Goal 2:

Implement Seasonal to Interannual Climate Forecasts

Data Validation and Verification:

Data collection: Progress reports

Frequency: Annual

Data storage: NOAA Office of Global Programs,

Silver Spring, MD

Verification: Progress is reported to NOAA management at Quarterly

Reviews.

Data limitations: The Global Ocean-Atmosphere-Land System Program has

been formulated to continue improvements in the prediction of ENSO, extend

our understanding and predictive capability to include global seasonal-tointerannual climate variations, and develop the observational and computational means for predicting these variations. Should the program be prolonged

due to, for example, unexpected research findings or fiscal constraints, the

program could be extended and the percentage of the program completed

could stall.

Actions to be taken: The GOALS program lifetime is 1995-2010. At its

conclusion, the program’s measure of success will be our increased

understanding of global climate variability and predictability on seasonal-tointerannual time scales. In order to achieve the objectives of GOALS, the

program has four major elements: a) modeling, b) observations, c) empirical

studies, and d) process studies.

Data Validation and Verification:

Data collection: Satellite data sets from NOAA and Department of

Defense environmental satellites, and in situ data sets worldwide from

ships, buoys, aircraft, radiosondes.

Frequency: Annual

Data storage: National Environmental Satellite, Data, and Information

Service’s National Climatic Data Center in Asheville, NC, and Office of

Satellite Data Processing and Distribution in Suitland, MD

Verification: NOAA performs quality control, including error checking,

elimination of duplicates, and interstation comparison. In addition, for the

satellite data, NOAA itself does the data processing

Data limitations: In the future, the National Oceanographic Data Center

and the National Geophysical Data Center may also contribute to this

performance measure, if funding levels permit. Compilation of the in situ

data sets, particularly the global data sets, relies on continued international data exchange cooperation.

Actions to be taken: NOAA will meet the growing demand for environmental data to a rapidly expanding user base by first addressing base

erosion created by inflationary increases. This measure tracks NOAA’s

success in providing data to a diverse user community.

I• □ 

□ • 
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 153

Strategies Activities Budget

Request

Improve our ability to forecast seasonal climate

variability, including temperature and

precipitation, to provide significant socioeconomic benefits to the United States,

including the protection of life and property.

Implement climate prediction systems to deliver

useful seasonal-to-interannual climate forecasts

for the U.S. and collaborate in a multi-national

effort to generate and use similar forecasts.

 $19.5M

Analyze, distribute, and save information from

climate observations and data systems to

further build our research and forecasting

efforts.

Enhance global observing and data systems

required to provide data for the initialization

and validation of model predictions of

seasonal-to-interannual climate variations.

 $71.6M

Emphasize research to improve our

understanding of El Niño and other modes of

climate variability, and improve models and

accuracy of predictions with longer lead times.

Invest in process and modeling research that

leads to improved predictability of temperature

and rainfall distributions.

 $29.9M

Foster discussion and assessments with

various user communities to ensure that they

understand and benefit from our climate

forecasts; solicit user input to generate more

useful forecasts.

Assess the impacts of climate variability on

human activity and economic potential, and

improve public education so that climate

forecasts are understood and acted upon.

 $0.4M

Total Dollars: $129.5 million FY 99 Actual FY 00 Enacted FY 01 Request

$109.2 M $121.2 M $129.5 M

FY 99 Actual FY 00 Enacted FY 01 Request

549 561 563

Total FTE: 563

Skill Requirements: Meteorologists, Oceanographers, Physical Scientists, Atmospheric

Scientists, Computer Specialists

Performance Goal 2:

Implement Seasonal to Interannual Climate Forecasts

Total IT Dollars: $27.8 million

IT Requirements: Satellite Active Archive:

$1.5M, NOAA Virtual Data System: $2.5M,

National Environmental Data Archive &

Access System $4.0M, Climate Prediction

Centers Climate Computer

FY 99 Actual FY 00 Enacted FY 01 Request

$20.4M $16.7M $27.8M

Resource Requirements

Program Evaluation Efforts

A number of NOAA line offices participate in the seasonal-to-interannual performance goal. The Office of Oceanic

and Atmospheric Research (OAR) conducts periodic reviews of the activities of its Environmental Research Laboratories. The NESDIS holds management performance reviews several times each year. The NWS conducts reviews

of the National Centers for Environmental Prediction (NCEP). Programs are also evaluated by the National Science

Foundation and the National Research Council. NOAA also holds annual constituent workshops at which NOAA’s

seasonal climate forecast efforts are discussed with the community of seasonal-to-interannual climate forecast

users and input is solicited to shape future efforts.

Strategies and Activities
154 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Cross-Cutting Activities

Other Government Agencies

NOAA works with a wide variety of partners in the area of climate forecasts, including other Federal agencies (e.g.,

the Federal Emergency Management Agency (FEMA) and the Agency for International Development), State and

local agencies (e.g., State departments of environmental protection and emergency preparedness managers),

academia, foreign government agencies, and international organizations. In preparing for the 1997-1998 El Niño,

NOAA worked closely with FEMA and State and local officials, greatly improving the public preparedness for the

severe weather resulting from El Niño.

External Factors and Mitigation Strategies

• A major failure of the earth observing and computing infrastructure would impair NOAA’s ability to produce

seasonal-to-interannual forecasts. NOAA has been looking for backup outside the organization. For

example, the Department of the Navy provides backup to the National Centers for Environmental Prediction

mainframe computer.

• An unanticipated major increase of the customer base for climate related products may strain NOAA

resources. In such event, NOAA would prioritize its activities to meet the immediate increase in demand,

while it looks for alternative ways to meet the needs of all its customers.

Performance Goal 2:

Implement Seasonal to Interannual Climate Forecasts
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 155

Rationale for Performance Goal

Policymakers require, and NOAA and its partners provide, science-based information for decisions regarding

decadal to centennial changes in the global environment, specifically for climate change and greenhouse warming;

ozone layer depletion; and air quality improvement.

Measure 3.a:

Document the “turnover” of CFC source gases (whose atmospheric abundance is

expected to begin decreasing in 1998) to verify the effectiveness of global policy

actions

Explanation

Chlorofluorocarbons (CFCs) are man-made pollutants that react with the natural environment of the upper atmosphere and cause damage to the earth’s protective ozone layer. Worldwide concern over the depletion of the

ozone layer forced global policies that restrict CFC production. Policy makers rely on the community of atmospheric scientists to document if new regulations are decreasing CFCs and restoring the earth’s ozone layer.

Performance Goal 3:

Predict and Assess Decadal to Centennial Change

Data Validation and Verification:

Data collection: Research from NOAA/OAR/ERL/ Aeronomy

Laboratory

Frequency: Aperiodic (approximately every 3-5 years)

Data storage: NOAA Aeronomy Laboratory,

Boulder, CO

Verification: Data are taken using proven, peer-reviewed

procedures. The results are also peer-reviewed by internationally qualified experts as part of the publication process.

Data limitations: Turnover of gases refers to the increase and

decrease of specific gases in the atmosphere over time. Five

years is the period generally used to expect reasonable

progress in a field such that a new assessment or report could

be justified. Those products take 2 1⁄2 to 3 years to produce.

The scientific assessments of the state of our understanding of

the stratospheric ozone depletion are sponsored by NOAA, the

National Aeronautics and Space Administration, the United

Nations Environmental Program, and the World Meteorological

Organization. They are undertaken every three to five years

based on advancements in the science. The fourth assessment

was published in 1999. The fifth is underway at this time.

Actions to be taken: Collect information and produce reports

for peer-reviewed publication.

Documents on Turnover

1998 1999 2000 2001 2002

N/A 1 N/A N/A 1
156 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Measure 3.b:

Publish updated trend results of air quality measurements

Explanation:

NOAA’s mission includes the responsibility to publish scientific findings in the peer-reviewed science literature and

to communicate results to the public. This performance measure indicates how well long-term climate findings are

being reported to a growing community of climate scientists and to an increasingly concerned public constituency.

Measure 3.c:

Lead development of a peer-reviewed initial assessment of regional ozone in North

America, including summarizing results for customers

Explanation

Regional ozone affects public health by reducing air quality. This measure will provide a baseline assessment of

regional ozone in North America, and provide vital data to air quality managers and decision makers.

Performance Goal 3:

Predict and Assess Decadal to Centennial Change

Data Validation and Verification:

Data collection: Research from NOAA/OAR/ERL/ Aeronomy

Laboratory

Frequency: Biennial

Data storage: NOAA/Air Resources Laboratory, Silver Spring, MD

Verification: Data are taken using proven, peer-reviewed procedures.

The results are also peer-reviewed by internationally qualified experts

as part of the scientific publication process.

Data limitations: Five years is the period generally used to expect

reasonable progress in a field such that a new assessment or report

could be justified. Those products take two and a half to three years

to produce

Actions to be taken: Collect information and produce reports for

peer-reviewed publication.

Data Validation and Verification:

Data collection: Research from NOAA/OAR/ERL/ Aeronomy

Laboratory

Frequency: Aperiodic (approximately every 3-5 years)

Data storage: Research from NOAA/Aeronomy Laboratory,

Boulder, CO

Verification: Data are taken using proven, peer-reviewed procedures. The results are also peer-reviewed by internationally qualified

experts as part of the publication process.

Data limitations: Five years is the period generally used to expect

reasonable progress in a field such that a new assessment or

report could be justified. Those products take two and a half to

three years to produce. The assessments conducted under the

North American Research Strategy for Tropospheric Ozone are

conducted on a three to five year interval determined by the

scientific advancements that have occurred and the perceived

requirements for updates to Congress, the Office of Science and

Technology Policy, and the interagency Committee on Environment

and Natural Resources. The chart above represents the present

assessment schedule.

Actions to be taken: Collect data and provide assessment of

regional ozone and air quality

Number of Publications

1998 1999 2000 2001 2002

N/A 1 N/A 1 N/A

Number of Publications

1998 1999 2000 2001 2002

N/A 1 N/A N/A 1
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 157

Measure 3.d:

Results of 90% of the research activities cited in the 2001 IPCC Third Assessment of

Climate Change

Explanation

The Earth absorbs radiation from the sun, primarily at the land and sea surface. This energy is then redistributed

by atmospheric and oceanic circulation and radiated back to space. Any factor which alters the radiation received

from the Sun or lost to space, or which alters the redistribution of energy within the atmosphere, and between the

atmosphere, land and ocean can affect climate. Policymakers look to the community of atmospheric and oceanographic scientists to provide periodic updates on our understanding of the science of climate change and potential

impacts of humans and the natural environment.

Program Evaluation Efforts

NOAA’s programs are routinely evaluated by a variety of outside reviewers. The NOAA Science Advisory Board,

made up completely of private sector, university, and other Federal agency scientists, provides input on Climate and

Air Quality Research. NOAA’s Office of Global Programs, funded in OAR’s Climate and Global Change research

line item, receives review from international science agencies, universities and private sector scientists, as well as

the National Research Council and the National Science Foundation. The NOAA Research Laboratories are

reviewed on a regular basis. The Sea Grant Colleges are visited at least every two years by a review panel.

Performance Goal 3:

Predict and Assess Decadal to Centennial Change

Data Validation and Verification:

Data collection: Research from NOAA/OAR/Aeronomy Laboratory

Frequency: Aperiodic (approximately every 3-5 years)

Data storage: NOAA Aeronomy Laboratory,

Boulder, CO

Verification: Data are taken using proven, peer-reviewed procedures.

The results are also peer-reviewed by internationally qualified experts as

part of the publication process.

Data limitations: The time scales of processes influencing the climate

system vary from years to millennia. Changes in the rates of emissions

of greenhouse gases take years to decades to implement; the stabilization of the concentrations of long-lived species in the atmosphere takes

decades to millennia; equilibration of the climate system given a stable

level of greenhouse species takes decades to centuries; equilibration of

sea level given a stable climate takes centuries; and even though the

impact on ecological systems may be relatively rapid, restoration or

rehabilitation of disturbed ecological systems may take decades to

centuries. The IPCC (Intergovernmental Panel on Climate Change)

Assessments provide the scientific, technical, and economic information

that can be used inter alia in evaluating whether there are possible

interferences in the climate system and in evaluating adaptation and

mitigation strategies that could be used in stabilizing greenhouse

species in the atmosphere at a level that would prevent interferences

with the climate system. These Assessments are conducted under the

sponsorship of the World Meteorological Organization and the United

Nations Environment Programme and take several years to produce.

They are undertaken every three to five years based on advancements in

science. The last assessment was published in 1995 and the next is

underway at this time.

Actions to be taken: Collect information and produce reports for peerreviewed publication.

Research Activities

1999 2000 2001 2002 2003

N/A N/A 90%

cited N/A N/A
158 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Strategies and Activities

Strategies Activities Budget

Request

Characterize the agents and processes that

force decadal to centennial change.

Natural events and human activities can cause

changes in climate. The atmospheric amounts

of many greenhouse gases are increasing.

This goal addresses understanding natural and

man-induced greenhouse processes.

 $9.3M

Understand the role of the ocean as a reservoir

of both heat and carbon dioxide to address a

major source of uncertainty in climate models.

Research has highlighted the role of the

oceans in climate change. Accurate

simulations of the coupled air-sea system are

essential for predicting and assessing climate

variability.

 $29.8M

Ensure a long-term climate record by

enhancing domestic and international weather

networks, observing procedures, and

information management systems. Document

present and past changes and variations in the

climate system, including extreme events, and

rapid climate changes, exploiting national and

international observing networks, satellites, and

paleoclimatic data.

A well-documented, long-term record of climate

data is required to ascertain the sensitivity of

the climate system to changes in atmospheric

composition and the impact of climate change

on socio-economic, biogeochemical, and

physical systems.

 $32.6M

Guide the rehabilitation of the ozone layer by

providing the scientific basis for policy choices

associated with ozone-depleting compounds

and their replacements.

A better definition of which substitutes are

"ozone-friendly" will help our chemical industry

avoid production of a substitute that later

proves to destroy unacceptable amounts of

ozone.

 $7.1M

Provide the scientific basis for better air quality

by improving the understanding of high surface

ozone episodes in rural areas and by

strengthening the monitoring network to detect

cleaner air quality and improving the

characterization of airborne fine particles.

Stations that detect air quality must be

upgraded and maintained to provide the

required information to achieve a more

effective Clean Air Act implementation.

$5.4M

Develop models for the prediction of long-term

climate change (including extreme events and

rapid climate changes), carry out scientific

assessments, and provide human impacts

information.

Explanatory environmental models must be

strengthened through better understanding of

the atmospheric and oceanic processes to

meet the challenges of understanding and

foreseeing climate variability and long term

changes.

 $13.0M

Performance Goal 3:

Predict and Assess Decadal to Centennial Change
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 159

Resource Requirements

Total Dollars: $114.2

million

Total FTE: 508

Skill Requirements: Meteorologists, Instrumentation Engineers, Oceanographers,

Instrumentation Technicians, Computer

Scientists, Chemists, Physicists, Mathematicians, Electronic Engineers

Total IT Dollars: $7.0 million

IT Requirements: Geophysical Fluid

Dynamics Laboratory (GFDL)

FY 99 Actual FY 00 Enacted FY 01 Request

$92.2 M $95.4 M $114.2 M

FY 99 Actual FY 00 Enacted FY 01 Request

485 486 508

FY 99 Actual FY 00 Enacted FY 01 Request

$9.6 M $5.0 M $7.0 M

Cross-Cutting Activities

Intra-DOC

NOAA, in partnership with ITA and TA within the Department of Commerce, other Federal agencies, the private

sector, and academia, is providing the foundation the U.S. will depend upon to lead new emerging global industries in

economically and environmentally sustainable ways.

Other Government Agencies and the Private Sector

• NOAA depends strongly on universities to help accomplish its science objectives through a network of Joint

and Cooperative Institutes and universities.

• NOAA also funds academic researchers through competitive, peer-reviewed programs, including the Global

Climate Change Program.

External Factors and Mitigation Strategies

The science of climate change crosses generations and has progressed through the evolution of technology. Our

ability to accomplish measures of performance like these is contingent upon many external factors, including the

advancement of climate change itself.

Performance Goal 3:

Predict and Assess Decadal to Centennial Change
160 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Measure 4.a:

Percent reduction in the backlog (square nautical miles) of hydrographic surveys for

critical areas (cumulative) 15.520.7 21.0 24.3 27.8 31.3

34.8

0

10

20

30

40

50

60

1998 1999 2000 2001 2002 2003

% Reduction

Actual Target

Explanation

Hydrographic surveys are conducted to determine depths and the configuration of the bottoms of water bodies,

especially as it pertains to navigation. This includes the detection, location, and identification of wrecks primarily

through the use of side scan sonar and multibeam sonar technology and GPS. This information is critically important to the production of both paper and electronic nautical charts for safe and efficient navigation; other user

communities that benefit in addition to the commercial shipping industry include recreational boaters, the commercial fishing industry, port authorities, coastal zone managers and disaster response planners. Ships traversing our

coastal waters are relying on charts based on sounding data that are more than 50 years old in many places. In

1994, NOAA identified 43,000 square nautical miles of seafloor in U.S. waters in critical need of resurvey, with over

half of this area in Alaskan waters. Many of these high priority areas carry heavy commercial traffic, are less than

30 meters deep, and are changing constantly. NOAA’s surveying activities balance in-house resources with

contracts and use the latest full bottom coverage sounding technologies to eliminate the remaining critical area

backlog of approximately 34,100 square nautical miles in the Nation’s ports, harbors and other coastal areas.

NOAA’s hydrographic fleet supporting in-house surveying capabilities consists of the WHITING, RUDE and

RAINIER. For more information on the hydrographic survey program, please access the NOAA website at

http://chartmaker.ncd.noaa.gov/ocs/text/hydrog.htm#survey.

Rationale for Performance Goal

NOAA serves commercial and recreational mariners around the Nation by providing these customers with nautical

charts, tides and currents data, and geographic positioning data for safe navigation. Geodetic services are vital to

the broader mapping and surveying industry nationwide. Shoreline data and real-time tides and currents information

also serve the coastal resource management and oil spill/disaster response communities. NOAA is currently

exploring innovative ways to modernize its services in a cost-efficient manner to meet customer needs.

Performance Goal 4:

Promote Safe Navigation

Data Validation and Verification:

Data collection: Progress reports on data collected from hydrographic

survey platforms.

Frequency: Annual

Data storage: National Ocean Service will store data and publish

nautical charts.

Verification: National Ocean Service will apply established verification

and validation methods

Data Limitations: Progress in reducing the backlog is measured

against a baseline value of 43,000 square nautical miles as determined

in 1994. Weather can affect scheduled surveys.

Actions to be taken: Coordinate acquisition and processing of

hydrographic surveys both in-house and through contracts

I• o 
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 161

Program Evaluation Efforts

A number of Marine Board (National Research Council) studies were carried out between 1992 and 1996 to

evaluate the nautical charting program and its transition into the digital era. Study recommendations have been

incorporated into the program and their successful implementation is being monitored through existing performance

measures. Particularly important are the recommendations for reducing the survey backlog, implementing new

digital production techniques, and delivering new electronic chart products. Another important recommendation

urged the program to make substantial use of contract support for all aspects. In FY 1995, contracting was less

than 5% of the program activities; in FY 2000 contract support will approach $19 million, more than half of the

program’s annual appropriation. In 1996 the National Academy of Public Administration examined all of the

programmatic components of Promote Safe Navigation to determine if they could be converted into a performancebased organization. The result of the study found that these essential programs would not survive on product

receipts.

More recently the marine transportation community strongly expressed the need for integrated real-time information,

forecasts and cooperation across federal agencies to achieve a safe and efficient navigation system at NOAA-sponsored stakeholder meetings in 1998 and 1999, and at the Department of Transportation’s Marine Transportation

69

59

64

72

77

82

40

50

60

70

80

90

100

199819992000200120022003

Year

Percent

Explanation

In order to meet the Nation’s navigation and other positioning needs, NOAA is enhancing the NSRS to provide the

higher accuracy and accessibility needed for use with the space-based Global Positioning System (GPS). GPS

satellites transmit signals that allow determination of position, height, velocity and time. The NSRS, a system of

reference stations and monuments across the Nation, provides integrity to geographic coordinates obtained from

GPS satellite signals for accurate positioning in support of numerous applications including land surveying, navigation, mapping, infrastructure development including 911 emergency response, and scientific applications. New

uses for GPS are being found every day, and many of these new uses involve precision heights; NOAA launched

its Height Modernization effort in 1998 to accelerate completion of the NSRS in three dimensions. Access to

accurate, reliable real-time height data can save time and money, and protect lives, property, and the environment.

For more information on applications and benefits of height modernization, please refer to the NOAA website at

http://www.ngs.noaa.gov/initiatives /height_modernization.shtml.

Data Validation and Verification:

Data collection: National Ocean Service/National Geodetic

Survey which defines and manages the NSRS, the foundation

for the Nation’s spatial data infrastructure

Frequency: Ongoing, annual reporting

Data storage: Automated database at National Ocean

Service

Verification: National Ocean Service will apply standard

verification and validation methods.

Data Limitations:

Actions to be taken: Statistics on completion.

Performance Goal 4:

Promote Safe Navigation

Measure 4.b:

Cumulative percent of National Spatial Reference System (NSRS) complete to

provide a common geographic framework tied to the Global Positioning System
162 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

System (MTS) National Conference held in November of 1998. The September 1999 Report to Congress that assessed

the U.S. Marine Transportation System further articulated the need for clearly defined, coordinated and consistent

Federal leadership to achieve the MTS vision: becoming the world’s most technologically advanced, safe, efficient,

globally competitive and environmentally responsible system for moving goods and people. NOAA’s navigation safety

and support functions underwent substantial review to identify opportunities for greater coordination and focus areas

among Federal agencies.

The Hydrographic Services Improvements Act of 1998 also provided Congress and NOAA an opportunity to evaluate

NOAA’s capabilities for acquisition and dissemination of hydrographic data, development of standards and formats for

hydrographic services, and contracting for the acquisition of hydrographic data. NOAA now contracts out over fifty

percent of its annual critical area hydrographic survey requirements while maintaining Federal competence and

expertise with existing and developing surveying technologies. Congress also authorized the 1998 Height Modernization Study to evaluate the technical, financial, legal, and economic aspects of modernizing the national height system

with GPS. The study demonstrated the significant benefits to the Nation in terms of dollars and lives saved associated

with GPS technology, and it led to current development of the vertical component of the National Spatial Reference

System.

Strategies and Activities

Strategies Activities Budget

Request

Provide mariners with predictions and

observations of water levels, tides and

currents, and weather conditions in ports.

Increase access to quality-assured tide, current

, meteorological and positioning data,

particularly in real-time, enabling commercial

mariners to navigate in and out of ports

efficiently and with confidence that they will not

run aground.

 $15.1M

Update nautical surveys to accurately chart the

depth of the sea floor and identify obstructions

to navigation. This survey activity will balance

in-house resources with contracts and use the

latest full-bottom coverage sounding

technologies.

Eliminate the remaining backlog of

approximately 34,100 square nautical miles of

the total 43,000 square nautical miles critical

hydrographic surveys in the Nation's ports,

harbors, and other coastal areas.

$21.2M

Build, maintain, and deliver a digital nautical

charting database.

Create a digital nautical charting database to

support new electronic charting systems which

integrate satellite positioning, tidal heights and

currents, radar and sonar, and navigational

aids.

 $26.1M

Enhance the National Spatial Reference

System (NSRS) using GPS to support the

digital revolution in mapping, charting and

surveying. The ability of GPS to accurately

measure heights is particularly important to

marine surveying and navigation.

Develop an accurate national spatial reference

system as the Nation relies increasingly upon

the satellite Global Positioning System (GPS)

for surveying and navigation.

$20.2M

Delineate the national shoreline using state-ofthe-art technology to serve the Nation's

navigational and coastal management

requirements.

Provide accurate shoreline data, a critical

component of nautical charts.

$4.8M

Performance Goal 4:

Promote Safe Navigation
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 163

Total Dollars: $109.5 million

Total FTE: 868

Skill Requirements: Cartographers, Photogrammetrists, Geodesists, Hydrographers,

Meteorologists, Oceanographers, Physical

Scientists, Engineers, Computer Scientists

Total IT Dollars: $3.7 million

IT Requirements: Nautical Charting and

Hydrographic Surveying System; Physical

Oceanographic Real-Time Systems

(PORTS) and Data Processing and Analysis

Subsystem (DPAS) for National Water Level

Observation Network; Geodetic Support

System.

FY 99 Actual FY 00 Enacted FY 01 Request

$97.6 M $104.6 M $109.5 M

FY 99 Actual FY 00 Enacted FY 01 Request

878 878 868

FY 99 Actual FY 00 Enacted FY 01 Request

$3.9M $3.2M $3.7M

Cross-Cutting Activities

Intra-DOC

NOAA, in partnership with Technology Administration and the National Telecommunications and Information Administration within the Department of Commerce, and other civil agencies from all civil departments, participates on the

Interagency GPS Executive Board, which jointly manages the GPS satellite program as a national asset with the

Department of Defense. Now a dual-use system heavily employed by civilian and commercial sectors, GPS is a

global information utility that the United States has committed to provide free to the world for use as the international

standard for navigation, positioning and timing.

Other Government Agencies and the Private Sector

NOAA works closely with agencies such as the Department of Transportation, the U.S. Coast Guard and the U.S.

Army Corps of Engineers in support of Marine Transportation System goals and objectives to identify and improve

navigation services for maritime commerce, while preserving navigation and environmental safety. NOAA and the

Department of Transportation also cooperate on the development of the Nationwide Differential GPS System, which

employs NOAA’s Continuously Operating Reference Stations to enable high accuracy GPS positioning in three

dimensions across the Nation. This system benefits from a multi-purpose cooperative effort between government,

academia and the commercial sector, and supports numerous NOAA objectives and activities.

NOAA’s Physical Oceanographic Real-Time Systems (PORTS) are also partnership opportunities between NOAA,

local government and the private sector. PORTS is a public information system developed by NOAA that furnishes

real-time information to the general public for safe and cost-effective navigation, search-and-rescue, hazardous

material and oil-spill prevention and response, and scientific research. PORTS builds on NOAA’s National Water

Level Observation Network of 175 stations to provide real-time water levels, currents, oceanographic and meteorological data, nowcasts and predictions from bays and harbors to the maritime community in a variety of userfriendly formats, including telephone voice response and Internet. Port authorities underwrite the system’s operation and maintenance, and NOAA provides data quality assurance and dissemination. NOAA hopes to expand its

quality assurance capabilities to support future PORTS systems.

Performance Goal 4:

Promote Safe Navigation

Resource Requirements
164 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

External Factors and Mitigation Strategies

Weather has a significant impact on Promote Safe Navigation activities. Both in-house and contract hydrographic

survey schedules can be affected by adverse weather conditions (storm, winds, high seas) and equipment failure,

as can aerial photography flights scheduled for shoreline photogrammetry. Storm damage frequently renders water

level stations inoperable, affecting surveying capabilities and real-time observations of water levels and currents so

critical to safe navigation. Natural disasters such as earthquakes and hurricanes can elevate the critical priority of

an area because of shoreline changes or obstruction accumulation; man-made impacts such as shifts in shipping

patterns, newly regulated shipping lanes, port expansions or wrecks will also increase NOAA’s designated critical

areas. NOAA also receives requests to survey areas not identified as critical; for example, ship groundings frequently prompt requests from the Coast Guard and others to survey “non-critical” areas, diverting efforts away

from the survey schedule. Finally, in addition to mission activities, NOAA ships and aircraft provide immediate

response capabilities for unpredictable events such as recovery and search efforts after the TWA Flight 800 and

EgyptAir Flight 990 crashes, damage assessment after major oil spills such as the Exxon Valdez, the Persian Gulf

War and the New Carissa, and severe hurricanes. NOAA mitigates the impacts of weather, disaster events and

equipment malfunction with back-up plans for relocating assets to other projects, or by reassessing schedules for

other windows of opportunity.

Performance Goal 4:

Promote Safe Navigation
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 165

-0.8 1

25

30

35

40

-10

0

10

20

30

40

50

60

2000 2001 2002 2003 2004 2005

Percent

Explanation:

To eliminate overfishing and allow fishing at sustainable levels, considerable information is necessary about the

stock size and age structure and the physical and biological processes that control the ecosystem dynamics. This

measure indicates that our actions will result in a decrease in the number of fisheries that are classified as overfished. As reported in the 1997 NOAA Fisheries Report to Congress, 86 fisheries were classified as overfished of

the 279 fisheries for which we have information. The 25% goal means that we will reduce the number of overfished

fisheries from 86 to 64 or less by 2005. The quantification will be based on the NOAA Fisheries Annual Report to

Congress on Overfishing.

Data Validation and Verification:

Data collection: NOAA/ National Marine Fisheries Service (NMFS)

Report to Congress: Status of Fisheries of the United States.

Frequency: Annual

Data storage: NOAA/NMFS Office of Sustainable Fisheries

Verification: Stock assessments and peer-reviews (internal and outside

the agency)

Data Limitations:

Actions to be taken: The Magnuson-Stevens Sustainable Fisheries

Act, reauthorized in 1996, requires that overfishing be eliminated in ten

years. A period of two years has been provided to amend the Fisheries

Management Plans of affected overfished stocks to reflect the new law.

The 25% goal means that the currently 86 overfished fisheries will be

reduced to 64 or less by 2005. External factors that may affect

NOAA’s ability to reach this target include the impact of climate and

other natural conditions, such as El Niño, on fisheries stocks.

Performance Goal 5:

Build Sustainable Fisheries

Rationale for Performance Goal

Billions of dollars in economic growth, thousands of jobs, and countless recreational fishing opportunities are

wasted as a result of overfishing and overcapitalization in commercial and recreational fisheries. While many

fisheries are well managed and produce positive benefits, others are severely depleted or overcapitalized, and must

be restored and managed to realize their long-term potential. Rebuilding and reducing overcapitalization in existing

fisheries will promote the economic and biological sustainability of U.S. fishing resources. Building sustainable

fisheries will increase greatly the Nation’s wealth and quality of life.

Measure 5.a:

By 2005, 25% fewer overfished fisheries (Currently 86 of 279 stocks are overfished.

By 2005, of these 86 stocks, 22 will no longer be overfished.)

- -
166 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Measure 5.b:

By 2005, 60% of stocks have sufficient essential fish habitat

0 0

10

40

52 54

0

10

20

30

40

50

60

70

1998 1999 2000 2001 2002 2003

Percent

Explanation

This performance measure is a way to measure progress with the Essential Fish Habitat provisions of the

Magnuson-Stevens Fisheries Conservation and Management Act. Habitat is crucial for fisheries recruitment and

the maintenance of healthy “fishable” stocks. The measure above focuses on the percentage of stocks that have

adequate habitat.

Measure 5.c:

By 2005, 9% increase in employment in non-capture fishing and other sectors in

fishing communities

0 0

1

2

4

6

0

2

4

6

8

10

1998 2000 2002

Percent 

Explanation

The rebuilding of overfished stocks required under the Magnuson-Stevens Act will result in lower harvest levels, and

therefore fewer fishing vessels and fishing-related jobs and a potential for overall reduction in economic activity in

many coastal communities. The measure above will account for our activities to shift employment from traditional

fishing to aquaculture (non-capture fishing) and to other vocations, especially marine vocations that will help

minimize community change. NOAA is working with other Federal, State and local agencies to address these

impacts on fishing communities through a variety of programs including loans, retraining, vessel and permit

buyouts, and community planning. While NOAA alone does not cover the total costs of such programs, it acts as a

catalyst in working with other DOC agencies such as the Economic Development Administration and with other

Federal agencies such as the Department of Labor and the Small Business Administration to coordinate community

assistance to address the economic and social impacts of reduced fishing levels.

Performance Goal 5:

Build Sustainable Fisheries

Data Validation and Verification:

Data collection: Regional offices of NOAA/NMFS

Frequency: Annual

Data storage: Regional Office of NOAA/NMFS

Verification: Interagency and internal peer-review.

Data limitations:

Actions to be taken: The reauthorization of the Magnuson-Stevens

Sustainable Fisheries Act of 1996 requires NMFS to identify, protect

and restore essential fish habitats. Regulations have been promulgated

to define “essential fish habitat,” and Regional Fisheries Management

Councils, as key stakeholders, have participated extensively in this

regulatory process. External factors that may affect NOAA’s ability to

reach this target include the impact of biological and other natural

conditions.

Data Validation and Verification:

Data collection: U.S. Department of Commerce/ Bureau of Economic

Analysis & NMFS

Frequency: Annual

Data storage: U.S. Department of Commerce/Bureau of Economic

Analysis & NMFS

Verification: BEA and/or NMFS has been consulted and may provide

the information and verification.

Data limitations: BEA statistical data is by county, not by fishing

community.

Actions to be taken: NMFS has approached the Bureau of Economic

Analysis to provide the information starting with 1999 figures. External

factors that may affect NOAA’s ability to reach this target include impact

of national and/or local economic conditions. Non-capture fishing is

aquaculture. NMFS has begun discussions with BEA to evaluate the

utility of their data as a metric for this performance measure. NMFS will

define “fishing communities” and work with BEA data and other data to

provide a baseline and a measurement methodology.

~ 

-

-

n 
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 167

Measure 5.d:

By 2005, 17% increase in economic contribution of aquaculture to Gross Domestic

Product

2

4

7

9

0 0

0

2

4

6

8

10

12

14

16

1998 1999 2000 2001 2002 2003

Percent

Explanation

Marine aquaculture can play an important role in producing fish for food, thereby reducing our dependence on wild

stocks, and can offer new business and employment opportunities in coastal communities impacted by reduced

fishing activity. In addition to food production, aquaculture can also be used to enhance wild stock populations,

assist in recovery plans for protected species and to produce non-food products such as ornamental fish, baitfish,

and drugs and pharmaceuticals. The measure above specifically addresses economic benefits to the Nation of

increased aquaculture production.

Program Evaluation Efforts

Virtually every aspect of the National Marine Fisheries Service fisheries science program is peer reviewed, either

internally within NMFS or outside the agency, e.g., the National Academy of Sciences and the National Science

Foundation. NMFS also relies on extensive informal networks of university partnerships and laboratories throughout

the Nation. Moreover, reviews often occur by opposing parties’ scientists in the court system when fisheries

management decisions are litigated.

Performance Goal 5:

Build Sustainable Fisheries

Data Validation and Verification:

Data collection: NOAA/NMFS, BEA, U.S. Department of

Agriculture

Frequency: Annual

Data storage: BEA, NMFS, USDA

Verification: Discussions with BEA have been initiated, and a

satellite account to provide aquaculture economic information

may be established.

Data limitations: NMFS data is reported about 18 months after

the end of a calendar year. The first USDA aquaculture census

occurred in 1998, and will be repeated only every third year.

Actions to be taken: BEA will serve as a satellite account.

Aquaculture is defined as marine aquaculture, including the

Great Lakes. External factors that may affect NOAA’s ability to

reach this target include the impact of national and/or local

economic conditions. Aquaculture is total U.S. aquaculture

production, less catfish and trout. NOAA will work with BEA,

USDA and with NMFS to define measurement methodologies.
168 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Strategies Activities Budget

Request

As evidenced by the Sustainable Fisheries Act

amendments, there is a strong consensus

among lawmakers, fishery managers, the

fishing industry, and the public that depleted

fishery resources must be restored and that

healthy fisheries must be maintained and

managed for greater efficiency.

Eliminate and prevent overfishing and

overcapitalization.

 $292.6M

The rebuilding of overfished fisheries required

under the Magnuson-Stevenson Act will result

in lower harvest levels, and therefore fewer

fishing vessels and fishing-related jobs, and

potentially an overall reduction in economic

activity in many coastal communities. To

minimize economic impact of fisheries

management decisions on communities,

NOAA is working with other Federal, State,

and local agencies to address these impacts

on fishing communities through a variety of

programs including loans, retraining, vessel

and permit buyouts, and community planning.

Attain economic sustainability in fishing

communities.

 $66.6M

Sound marine aquaculture will enhance the

Nation's ability to meet the growing domestic

and global demand for seafood, as a growing

number of wild stocks are overfished or fully

utilized.

Develop environmentally and economically

sound marine aquaculture.

 $29.4M

Strategies and Activities

Resource Requirements

Total Dollars: $435.4 million

Total FTE: 2,481

Skill Requirements: Fishery Biologists,

Fishery Economists

Total IT Dollars: $33.0 million

IT Requirements: National Marine Fisheries Service Fishing Information Technology System

FY 99 Actual FY 00 Enacted FY 01 Request

$411.5 M $441.6M $435.4M

FY 99 Actual FY 00 Enacted FY 01 Request

2,330 2,371 2,481

FY 99 Actual FY 00 Enacted FY 01 Request

$24.5M $24.0M $33.0M

Performance Goal 5:

Build Sustainable Fisheries
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 169

Cross-Cutting Activities

Intra-DOC

NOAA will focus on reducing overfishing and overcapitalization of U.S. fishery resources by improving stock

assessment and prediction, improving essential fisheries habitat, and reducing fishing pressure, including

downsizing of fishing fleets. The Department of Commerce, enlisting the support of key bureaus such as EDA,

MBDA, and NIST, and other Federal agencies, such as the U.S. Department of Agriculture, Small Business Administration, and the U.S. Department of Labor, will play a key role in mitigating the impact of these critical resource

conservation decisions in the transition to economically sustainable communities.

External Factors and Mitigation Strategies

There are external factors that may affect NOAA’s ability to reach the targets mentioned in this report. These

factors include the impact of climate and other natural conditions, such as El Nino on biological stocks. In addition,

the impact of national and/or local economic conditions may affect NOAA’s ability to reach certain targets.

Performance Goal 5:

Build Sustainable Fisheries
170 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Performance Goal 6:

Recover Protected Species

Rationale for Performance Goal

NOAA’s overall objectives for recovering protected species are to prevent the extinction of protected species and to

maintain the status of healthy species. NOAA measures its performance in meeting these objectives by focusing on

the agency’s ability to manage protected species through conservation programs and recovery plans, and through

constant monitoring and research regarding the status of species and the stresses that affect their mortality.

Quantitative measures of the probability of extinction for protected species were developed in FY 1999 and FY 2000

to establish the baseline from which program performance (reduction in the probability of extinction) is to be

measured. NMFS recognizes the need for objective procedures to determine the status of protected species based

on population analyses that take into account species biology and threats to existence that are both human-caused

and natural, The RPS FY 2001-2005 budget proposal is based in part on measuring our ability to reduce the

probability of extinction for at-risk species. RPS performance will be measured by the results of our attempts to

reduce the risk of extinction for protected species from detrimental human activities, e.g., reducing incidental and

direct takes, increasing species habitat, decreasing negative interactions, and mitigating natural phenomena.

Measure 6.a:

By FY 2005, reduce the probability of extinction of 5 threatened species out of 23

threatened species (cumulative)

0

1 1

2

4

0

1

2

3

4

5

6

2001 2002 2003 2004 2005

Number

Explanation

5 of the 23 threatened species have been identified to be the most critical threatened species in danger of progressing to endangered species listings. Several include the North Atlantic loggerhead turtle, Pacific salmonids, and

Johnson’s seagrass. Performance will be measured by the results of attempts to reduce the probability of extinction

for protected species from detrimental human activities such as reducing incidental and direct takes, increasing

species habitat, and mitigating natural phenomena.

Data Validation and Verification:

Data collection: NMFS

Frequency: Annual

Data storage: NMFS Office of Protected Resources

Verification: Audits. Internal peer-review within NOAA and external

peer-review by regional fishery councils, the National Science

Foundation, the National Academy of Sciences, and other

organizations.

Data limitations: None

Actions to be taken: Reducing the probability of extinction requires

a reduction in human activities detrimental to the survival of

protected species, i.e. reducing incidental and direct takes,

increasing species habitat, decreasing negative interactions, and

mitigating natural phenomena.
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 171

Measure 6.b:

By FY 2005 mortality of strategic marine mammal stocks incidental to commercial

fishing operations in six fisheries will be at insignificant levels (annual)

6 6 6 6 6

0

2

4

6

8

2001 2002 2003 2004 2005

Year

Number

Explanation

One of the most significant impacts on marine mammal stocks is death from entanglement and drowning in fishing

gear. Certain marine mammal species are particularly vulnerable to interactions with fisheries due to location and

type of fishing gear used. The six fisheries and marine mammal stocks targeted in this measure include: the Harbor

porpoise in New England multispecies and Mid-Atlantic gillnet fisheries; Pilot whales, beaked whales, sperm whales

and humpback whales in the California/Oregon thresher shark and swordfish drift gillnet fisheries; Pilot whales in

the Atlantic pelagic longline fishery; North Atlantic right, humpback, fin, and minke whales in New England

multispecies and Mid-Atlantic gillnet fisheries, Gulf of Maine and Mid-Atlantic lobster fisheries, and the southeastern

Atlantic shark gillnet fishery. New fishing technologies to reduce gear impacts need to be developed, and strategies

to reduce interactions between fishing gear and marine mammals need to be devised. Education is also needed on

ways fishermen can avoid marine mammals while still allowing them to catch fish.

Performance Goal 6:

Recover Protected Species

Data Validation and Verification:

Data collection: NMFS

Frequency: Annual

Data storage: NMFS Office of Protected Resources

Verification: Audits. Internal peer-review within NOAA and

external peer-review by regional fishery councils, the National

Science Foundation, the National Academy of Sciences, and

other organizations.

Data limitations: None

Actions to be taken: A successful program to reduce mortality of

marine mammal stocks will require the following research on

marine mammal behavior, assessment of marine mammal

populations, reduction of interactions in problem fisheries, and

monitoring / analysis via the observer program.

~ ~ ~ ~ ~ 
172 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Measure 6.c:

By FY 2005, reduce the probability of extinction of 8 endangered species/Endangered Species Units (ESU) (cumulative)

0

2

3

5

8

0

2

4

6

8

10

2001 2002 2003 2004 2005

Year

Number

Explanation

RPS has identified 8 species on a list of 33 endangered species as the most critically in danger of extinction. These

8 species include the Pacific leatherback turtle, Hawaiian monk seal, North Atlantic right whale, Western Steller sea

lion, North Pacific right whale, Western Steller sea lion, North Pacific right whale, and Pacific salmonids. Efforts to

prevent extinction will focus on identifying the factors contributing to extinction and developing and implementing

recovery plans to address these factors.

Program Evaluation Efforts

Evaluation efforts include peer reviews of proposals, internal and external reviews of programs, and quarterly

reviews of NOAA’s overall performance in protected species recovery. Constituent input is an important part of the

evaluation process and is solicited regularly through constituent workshops.

Strategies and Activities

Strategies Activities Budget

Request

Prevent extinction of protected species. Reduce threats of commercial and recreational

activities that contribute to stress on marine

species and ecosystems, threatening their

survival.

$230.5M

Maintain the status of healthy species. Recover protected species

Avoid further decline of other at risk species

Improve science to lead to better long-term

conservation and management strategies.

$34.2M

Performance Goal 6:

Recover Protected Species

Data Validation and Verification:

Data collection: NMFS

Frequency: Annual

Data storage: NMFS Office of Protected Resources

Verification: Audits. Internal peer-review within NOAA and external

peer-review by regional fishery councils, the National Science Foundation, the National Academy of Sciences, and other organizations.

Data limitations: None

Actions to be taken: Reducing the probability of extinction requires a

reduction in human activities detrimental to the survival of protected

species, i.e. reducing incidental and direct takes, increasing species

habitat, decreasing negative interactions, and mitigating natural

phenomena.
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 173

Resource Requirements

Total Dollars: $278.3 million

Total FTE: 712

Skill Requirements: Fishery Biologists, Fishery Economists

Total IT Dollars: $33.0 million

IT Requirements: National Marine

Fisheries Service Fishing Information Technology System

FY 99 Actual FY 00 Enacted FY 01 Request

$79.6 M $154.6M $278.3M

FY 99 Actual FY 00 Enacted FY 01 Request

575 682 712

FY 99 Actual FY 00 Enacted FY 01 Request

$24.5M $24.0M $33.0M

Cross-Cutting Issues

Other Government Agencies

Over the past year, NOAA has developed innovative partnerships with the States of Maine, Washington, Oregon, and

California to promote the recovery of listed and at-risk salmon and steelhead species.

External Factors and Mitigation Strategies

The impact of climate, biological, and other natural conditions affect NOAA’s efforts to recover protected species

and maintain the status of healthy species. Research may identify opportunities to pursue mitigating strategies in

some cases.

Performance Goal 6:

Recover Protected Species
174 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration 26,000 43,000 43,000 55,000 65,000 70,000 75,000

0

20,000

40,000

60,000

80,000

100,000

120,000

1998 1999 2000 2001 2002 2003

Number

Actual Target

Performance Goal 7:

Sustain Healthy Coasts

Rationale for Performance Goal

NOAA has three primary objectives to sustain healthy coastal ecosystems and the communities and economies that

depend on them: (1) protect, conserve and restore coastal habitats and their biodiversity, (2) promote clean coastal

waters, and (3) foster well-planned and revitalized coastal communities. To meet these objectives, NOAA integrates

a broad range of research, assessment and management activities from four of NOAA’s five line offices (National

Ocean Service (NOS), Office of Oceanic and Atmospheric Research (OAR), National Marine Fisheries Service

(NMFS), and the National Environmental Satellite, Data and Information Service (NESDIS)). NOAA works with

many government and nongovernmental partners at local, State, national and international levels to address the

critical challenges facing coastal areas. NOAA measures its performance in meeting these objectives by tracking

key outcomes, such as the number of coastal wetlands restored, changes in coastal water quality, number of

coastal States with effective nonpoint pollution control programs, and the percent U.S. shoreline with improved ability

to identify and mitigate the impacts of natural hazards.

Measure 7.a:

Number of acres of coastal habitat restored (cumulative)

Explanation

This measures shows the cumulative number of acres of coastal wetlands restored through NOAA’s National Marine

Fisheries Service, Office of Habitat Conservation. The measure represents the outcome of many different restoration projects, most of which are implemented by NOAA in partnership with other Federal agencies, State agencies,

and local groups.

Data Validation and Verification:

Data collection: Primary source is National Marine Fisheries Service,

Office of Habitat Conservation. Other input from National Ocean Service.

Frequency: Annual

Data storage: NMFS/Habitat Office will collect information, conduct

assessments, and store data.

Verification: NMFS/Habitat Office will collect quality control data to

ensure criteria are being met by data used to calculate performance.

Data limitations: None

Actions to be taken: Continue to initiate and implement restoration

projects for critical coastal habitats such as wetlands and coral reefs. I• □ 
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 175

Measure 7.b:

Number of U.S. coastal regions with reduced introductions and impacts of

non-indigenous species (total of 6 regions)

0 0

1 1 1

2

3

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

1998 1999 2000 2001 2002 2003

Number

Actual Target

Performance Goal 7:

Sustain Healthy Coasts

Data Validation and Verification:

Data collection: NOAA Office of Oceanic and Atmospheric Research,

U.S. Department of the Interior, and state agencies.

Frequency: Annual

Data storage: OAR will collect data, conduct assessments and store data

Verification: Original research data verified through peer-review; OAR will

obtain quality control data from other sources to ensure criteria are being

met for inclusion in performance calculations.

Data limitations: Reaching these targets will also depend on activities of

other Federal and State agencies with management responsibilities in

this area.

Actions to be taken: Implement program to monitor National Marine

Sanctuaries for invasive species; develop rapid response strategy to

prevent and control invasives in National Marine Sanctuaries and other

areas; continue support for ballast water demonstration projects.

Measure 7.c:

Percent of U.S. shoreline and inland areas with improved ability to identify extent

and severity of coastal hazards

0

5 5

10 10 10 10

0

5

10

15

20

25

30

1998 1999 2000 2001 2002 2003

Percent

Actual Target

Explanation

This measure tracks improvements in our ability to identify the risks of natural hazards in U.S. coastal regions.

Activities are underway to develop coastal risk atlases that evaluate the risk, extent and severity of natural hazards

in coastal areas. These risk atlases will help coastal communities more effectively make land use decisions before

and after severe events such as storms or floods to reduce risks to life and property. Currently, many coastal

communities make major decisions on land-use, infrastructure development, and hazard responses without adequate information on the risks and possible extent of natural hazards impacts in their area.

Data Validation and Verification:

Data collection: National Ocean Service, other Federal and state

agencies.

Frequency: Annual

Data storage: NOS will collect information, conduct assessments, and store data.

Verification: All data used in coastal hazard risk assessments is

quality controlled; risk assessment models are tested for

accuracy and coverage (amount of shoreline covered).

Data limitations: This measure tracks development and

implementation of “coastal hazard risk atlases” as an indicator of

improved ability to identify the extent and severity of coastal

hazards. Reaching these targets will also depend on activities of

other Federal and State agencies with management responsibilities in this area.

Actions to be taken: Evaluate risk of natural hazards for specific

U.S. coastal regions; develop coastal risk atlas to identify extent

and severity of coastal hazards for coastal regions.

I• □ 

I• □ 
176 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration

Strategies and Activities

Strategies Activities Budget

Request

Coastal habitats produce many of the Nation's

commercial and recreational fisheries. They

also are the foundation for most coastal

tourism and recreation industries that

contribute over $58 billion annually to the U.S.

economy. Protecting and restoring coastal

habitats and their biodiversity is an investment

in the long-term sustainability of the Nation's

coastal resources and the communities and

economies that depend on them.

Protect, conserve, and restore coastal habitats

and their biodiversity.

$192.1 M

Clean water is essential for productive coastal

ecosystems and sustainable coastal

communities. Contaminated coastal waters

threaten living resources, human health, and

economic stability. The primary source of

coastal water pollution is run-off from urban and

agricultural areas that washes nutrients and

other contaminants into coastal waters.

Promote clean coastal waters to sustain living

marine resources and ensure safe recreation,

healthy seafood, and economic vitality.

$96.4 M

The U.S. economy is increasingly dependent

on coastal resources. One in every six jobs is

marine related and one-third of the Nation's

gross domestic product is produced in coastal

areas through tourism, recreation, and other

industries. These industries depend on healthy

coastal resources to survive. Effective

planning and revitalization of coastal

communities is essential to sustainable

management of both natural areas and the

coastal communities that depend on them.

Foster well-planned and revitalized coastal

communities that sustain coastal economies,

are compatible with the natural environment,

minimize the risks from nature's hazards, and

provide access to coastal resources for public

use and enjoyment.

$176.4 M

Resource Requirements

Total Dollars: $486.8 million FY 99 Actual FY 00 Enacted FY 01 Request

$261.0 M $278.7 M $486.8 M

Program Evaluation Efforts

NOAA’s goal to sustain healthy coasts is the product of over 25 years of experience helping to understand and

manage coastal resources so that their ecological and economic productivity can be fully realized and sustained.

Evaluation efforts exist at a variety of levels, from peer-reviews of proposals and evaluations of individual projects, to

internal and external reviews of entire programs and quarterly reviews of NOAA’s overall performance in coastal

stewardship areas. Constituent input is an important part of the evaluation process and is solicited regularly through

constituent workshops.

Performance Goal 7:

Sustain Healthy Coasts
National Oceanic and Atmospheric Administration

FY 2001 Annual Performance Plan 177

FY 99 Actual FY 00 Enacted FY 01 Request

890 867 912

Total FTE: 912

Skill Requirements: Marine Ecologists,

Fisheries Biologists, Environmental Educators, Land Use Planners, Toxicologists,

Chemists, Engineers, Oceanographers ,

economists.

Performance Goal 7:

Sustain Healthy Coasts

Resource Requirements (cont.)

Total IT Dollars: N/A

IT Requirements: Sustaining healthy coasts

does not rely on any one major IT system

FY 99 Actual FY 00 Enacted FY 01 Request

N/A N/A N/A

Cross-Cutting Activities

Other Government Agencies

NOAA has leveraged its resources through a variety of effective international, interagency, State, local, private-sector,

and other partnerships to develop world-class coastal stewardship capabilities. These partnerships are essential to

effectively integrate coastal science, assessment, monitoring, education, and management activities.

In FY 2001, for example, SHC will work with other Federal agencies, States, and academic partners to initiate new

research necessary to sustainably manage the Nation’s coastal ecosystems. This research will provide managers

and decision-makers with information, solutions, and technologies as part of interagency initiatives developed by

the National Science and Technology Council’s Committee on Environment and Natural Resources.

Through SHC, NOAA provides technical and scientific assistance to a variety of partners involved in protection,

monitoring, and restoration of coastal resources. For example, NOAA provides critical information to the U.S.

Coast Guard to help the Coast Guard respond to approximately 70 serious oil and chemical spills every year.

Through SHC, NOAA is also working closely with other agencies, DOC bureaus, states, local governments, and

industry on important crosscutting activities such as reducing the risks and impacts of natural hazards, protecting

and restoring essential fish habitats, reducing run-off pollution, forecasting and preventing harmful algal blooms,

and exploring the deep ocean and new uses of the ocean’s rich biodiversity

External Factors and Mitigation Strategies

Changes in climate, biological, and other natural conditions may affect some of NOAA’s activities to sustain healthy

coasts. In addition, many of these coastal stewardship activities depend on contributions from multiple partners,

particularly States, territories and other Federal agencies (e.g., EPA, Interior, DOT/Coast Guard, FEMA, NSF,

USDA). The failure of one or more of these partners to fulfill their cooperative contributions could have very serious

impacts on the overall effort to sustain healthy coasts.
178 FY 2001 Annual Performance Plan

National Oceanic and Atmospheric Administration
Patent and Trademark Office

FY 2001 Annual Performance Plan 179

Patent and Trademark Office

As the steward for the Nation’s patent and trademark registration system, PTO has maintained its basic role of

granting patents and registering trademarks. In this role, PTO operates in a dual management capacity: like a

business, totally reliant on, and accountable for, the judicious use of revenue from its fee-paying customers; and as

a Federal agency, accountable for maintaining and strengthening the foundation and integrity of the Nation’s patent

and trademark systems.

As a fee-for-service agency, PTO expects to receive 699,100 patent and trademark applications in FY 2001 –

applications which are the force behind our robust domestic and global economy. Fees for these applications are

paid in advance by customers to process requests for products and services. To be responsive to customers, PTO

must take a short-term perspective by hiring the engineers, scientists and attorneys needed to stay current with

incoming work. PTO also must take a long-term perspective by investing in reengineering, automated systems and

innovative resource management practices needed to ensure a viable organization of the future.

The underlying premise behind the transition to performance-based organization status, is that PTO must be

responsive to its customers by using the fees paid for products and service to enhance timeliness, quality and

customer satisfaction. With resources made available in fiscal years 2000 and 2001, PTO will strive to make

progress on its High Impact Agency goals and the related performance targets.

Mission Statement

The PTO promotes industrial and technological progress in the United States and strengthens the national

economy by:

• Administering the laws relating to patents and trademarks.

• Advising the Secretary of Commerce, the President of the United States, and the Administration on

patent, trademark, and copyright protection.

• Advising the Secretary of Commerce, the President of the United States, and the Administration on

trade-related aspects of intellectual property.

Bureau Context

Department-wide

• Establishing Safeguards Against Unconventional National Security Threats. PTO is pursuing an Electronic Mail Room/Public Key Infrastructure for the secure exchange of structured documents between

automated information systems operating at PTO and external correspondents, and conducting a vulnerability assessment of the Crystal City campus.

• E-Commerce. PTO will maintain automated patent and trademark activities at the current level and offer

access via the Internet to a range of electronic databases and services.
Patent and Trademark Office

180 FY 2001 Annual Performance Plan

Organizational Structure

Assistant Secretary of

Commerce and

Commissioner of

Patents and

Trademarks

Deputy Assistant

Secretary of Commerce

and Deputy

Commissioner of

Patents and

Trademarks

Associate

Commissioner

and

Chief Financial Officer

Assistant Commissioner

for Patents

Assistant Commissioner

for Trademarks

Deputy

Chief Information

Officer

Solicitor

Administrator for

Legislative/International

Affairs

 Deputy 

Trademark Trial and

Appeal Board

Board of Patent

Appeals and

Interferences

Office of Patent Quality

Review

Office of Trademark

Quality Review

Deputy Associate

Commissioner for

Administration and

Quality Services

Administrator for

Information

Dissemination

Controller and Deputy

Chief Financial Officer

Administrator for

Human Resources and

Public Affairs

Deputy Assistant

Commissioner for

Patents

Deputy Assistant

Commissioner for

Patent Policy and

Projects

Deputy Assistant

Commissioner for

Patent Process

Services

Office of Patent

Programs Control

Trademark Examining

Groups

Office of Trademark

Program Control

Office of Trademark

Services

Office of System

Architecture and

Engineering

Office of System Quality

and Enhancement

Office of System

Development and

Acquisition

Administration for

Computer

Telecommunications

Operations

Targets and Performance Summary

Highlights of the Patent and Trademark Office FY2001 Performance and Plan

PTO’s fiscal year 2001 plans focus on our two strategic goals. The first goal is to provide our customers with the

highest level of quality and service in all aspects of PTO operations. To do this we will implement the American

Inventors Protection Act of 1999 (Public Law 106-113), manage growth while improving processing times, enhance

quality and customer satisfaction, and invest in information technology for future performance. We also plan to

continue activities associated with our second strategic goal to maintain and grow our domestic and international

leadership roles in intellectual property rights policy.

Performance Goal 1: Help protect, promote and expand intellectual property rights systems

throughout the United States and abroad

Measure FY 99 Actual FY 00 Target FY 01 Target

Number of technical assistance activities completed 99 102 104

-

I 

- - - - -

I 

- - ...._ ...._ 

I 

- - - - I 

- - -

I 

- - - -
Patent and Trademark Office

FY 2001 Annual Performance Plan 181

Performance Goal 2: Grant exclusive rights, for limited times, to inventors for their discoveries

Measures FY 99 Actual FY 00 Target FY 01 Target

Average cycle of original inventions processed (months) 12.9 10.2 10.0

Percent of customers satisfied 57 70 75

Workload cost indicator $2,494.20 $2,646.99 $2,761.59

Performance Goal 3: Enhance trademark protection

Measures FY 99 Actual FY 00 Target FY 01 Target

Pendency time to first action and registration/disposal (months) 4.6

18.9

3.0

13.8

3.0

13.8

Percent of customers satisfied 69 80 80

Workload cost indicator $557.87 $495.95 $472.36

Performance Goal 4: Promote awareness of, and provide effective access to, patent and trademark

information

Measures FY 99 Actual FY 00 Target FY 01 Target

Percent of key products and services meeting schedules or

cycle time of standards 64 80 80

Customer satisfaction with key products and services (Note the

scale changed for the fiscal year 1999 actual.) 75

Conducted

every two

years

90

Workload cost indicator $14.19 $8.90 $10.86

Resource Requirements

Total Dollars: $1,039 million*

Performance Goal FY 99 Actual FY 00

Enacted FY 01 Request

Help protect, promote and expand intellectual property rights

systems throughout the United States and abroad $16.1 M $18.8 M $22.7 M

Grant exclusive rights, for limited times, to inventors for their

discoveries $626.6 M $694.3 M $808.9 M

Enhance trademark protection $101.3 M $110.3 M $124.3 M

Promote awareness of, and provide effective access to,

patent and trademark information $59.6 M $57.9 M $62.9 M

* $20 million transferred to OPM for retirement benefits.
Patent and Trademark Office

182 FY 2001 Annual Performance Plan

Total Bureau FTEs: 7,449 FTE

Skill Summary: Knowledge of global intellectual property rights systems and policies; expertise

in intellectual property law and appropriate scientific and technical disciplines.

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Help protect, promote and expand intellectual property

rights systems throughout the United States and

abroad

85 101 114

Grant exclusive rights, for limited times, to inventors for

their discoveries 4,753 5,362 5,949

Enhance trademark protection 791 1,078 1,126

Promote awareness of, and provide effective access

to, patent and trademark information 231 260 260

Performance Goal FY 99 Actual FY 00 Enacted FY 01 Request

Help protect, promote and expand intellectual property rights

systems throughout the United States and abroad $4.2 M $4.9 M $5.8 M

Grant exclusive rights, for limited times, to inventors for their

discoveries $91.9 M $93.2 M $114.8 M

Enhance trademark protection $25.5 M $25.7 M $29.9 M

Promote awareness of, and provide effective access to,

patent and trademark information $13.4 M $16.0 M $18.1 M

Total Bureau IT Dollars: $168.6 M

IT Requirements: Electronic Commerce; Electronic Filing; Electronic Workplace; Clinger-Cohen

Act; Capital Programming
Patent and Trademark Office

FY 2001 Annual Performance Plan 183

Performance Goal 1:

Help Protect, Promote, and Expand Intellectual Property Rights Systems

Throughout the United States and Abroad

Rationale for Performance Goal

Measure 1.a:

Number of technical assistance activities completed

Providing technical assistance to nationals of foreign countries is one method of promoting U.S. competitiveness in

the global marketplace. Assistance also strengthens and safeguards the Nation’s economic infrastructure by

indirectly promoting and shaping intellectual property throughout the world. PTO provides seminars and technical

training to officials in countries on reforming their intellectual property structures.

PTO will meet its performance target by enhancing its activities to include compliance with the Agreement on

Trade-Related Aspects of Intellectual Property’s (TRIPS) Article 67. Article 67 requires developed country members of the World Trade Organization to provide technical assistance to developing and least-developed countries in

preparing laws and regulations on the protection and enforcement of intellectual property.

To support the E-Commerce initiative, the PTO will work with the World Intellectual Property Organization (WIPO)

to achieve electronic filing of Patent Cooperation Treaty (PCT) applications. The PTO will also electronically receive

and process PCT applications at the PTO. PTO will continue working with the WIPO to develop activities that will

incorporate information technology in the administration of intellectual property systems.

A share of IT funds will support initiatives to safeguard against National security threats (e.g., dual data centers).

FY2000, FY2001 Targets: Based on the performance statistics in FY 1999, FY 2000 performance

target is changed to 102 and the FY 2001 performance target is changed to104. 99102104

80

85

90

95

100

105

110

115

120

1999 2000 2001

ACTUAL TARGET

Data Validation and Verification:

Data collection

Frequency: Annually

Data storage: Records of the Office of Legislation and

International Affairs

Verification: Completeness and existence of supporting data is verified during the annual financial statement

audit. Final test for reasonableness is performed

internally.

Data limitations: None

I• □ 
Patent and Trademark Office

184 FY 2001 Annual Performance Plan

Program Evaluation Efforts

Strategies and Activities:

Quality Management

PTO conducted a self-assessment using the Baldrige criteria to project key requirements for delivering ever-improving value to customers while maximizing overall effectiveness and productivity of the delivering organization.

Customer/Stakeholder Input

In conjunction with the National Academy for Public Administration, PTO conducted customer/stakeholder focus

sessions to gain a better understanding of their perspectives on end outcomes of the patent and trademark systems.

Technical Assistance/Training

Beginning in FY 2000, the Office of Legislative and International Affairs (OLIA) is tracking the opinions of the students regarding the effectiveness of training sessions.

Strategies Activities

Partner and negotiate with foreign patent and

trademark organizations. Increase technical

assistance to developing countries.

Partner with other government agencies to provide

seminars and technical training.

Resource Requirements

Total IT Dollars: $5.8 million

IT Requirements: Wire the World, Share of Enterprise Infrastructure

FY 99 Actual FY 00 Enacted FY 01 Request

$16.1 M $18.8 M $22.7 M

FY 99 Actual FY 00 Enacted FY 01 Request

85 101 114

FY 99 Actual FY 00 Enacted FY 01 Request

$4.2 M $4.9 M $5.8 M

Performance Goal 1:

Help Protect, Promote, and Expand Intellectual Property Rights

Systems Throughout the United States and Abroad

Total FTEs: 114

Knowledge of global intellectual proerty rights systems and policies; expertise in intellectual

property law

Total Dollars: $22.7 million
Patent and Trademark Office

FY 2001 Annual Performance Plan 185

Cross-Cutting Activities

External Factors and Mitigation Strategies

Other Government Agencies

United States Trade Representative: The Policy area partners with this office in assessing trade issues especially as

they relate to Special 301 and the Trade Related Aspects of Intellectual Property rights (TRIPs). The Policy area

also works with USTR in reviewing laws for TRIPs compliance.

Department of Justice, The Customs Office, and the Federal Bureau of Investigation: The Policy area partners with

this Office in providing technical assistance to developing countries. They also work together to develop methods for

combating piracy and counterfeiting of U.S. goods in foreign countries. Under a recent passage of legislation, the

head of the PTO and the Department of Justice will jointly chair an Intellectual Property Enforcement Council.

United States Agency for International Development (USAID): The Policy area partners with this Office in providing

technical assistance to developing countries.

Departments of State and Agriculture and the Copyright Office: The Policy area partners with these agencies in the

formulation of intellectual property proposals. Additionally, the PTO reports technical assistance activities to the

Department of State on an annual basis.

The major external factor affecting PTO’s ability to meet this goal is the failure to have access to user fees,

which are paid in advance by customers to process requests for products and services. If adequate resources

are unavailable to the PTO, Policy functions will reduce their activities proportionately. PTO is working with the

Administration on various options to ensure that full revenue collections are allocated to the purposes for which

they were paid.

Performance Goal 1:

Help Protect, Promote, and Expand Intellectual Property Rights

Systems Throughout the United States and Abroad
Patent and Trademark Office

186 FY 2001 Annual Performance Plan

Performance Goal 2:

Grant Exclusive Rights, for Limited Times, to Inventors for their Discoveries

Rationale for Performance Goal

Measure 2.a:

Cycle time of inventions processed

A PTO decision on patentability must be of high quality and rendered in a timely manner because it influences

investment, development and marketing strategies, and eventually, the financial viability of U.S. businesses.

In support of E-Commerce, the Patent Business will accelerate electronic processing of patent applications. A share

of IT funds will support initiatives to safeguard against National security threats (e.g., dual data centers).

The PTO will test reengineered patent examination processes and automated systems; deploy electronic processing

of patent applications; reduce patent processing time for inventions; establish a fee structure that encourages

participation in the patent system while reflecting costs; and offer Patent employees innovative training programs. 12.9 10.2 10

0

5

10

15

20

1999 2000 2001

Months

ACTUAL TARGET

57

70

75

0

20

40

60

80

100

1999 2000 2001

Percentage

ACTUAL TARGET

Measure 2.b:

Percentage of customers satisfied

Data Validation and Verification:

Data collection

Frequency Input—Daily; Reporting—Monthly

Data storage PALM, Automated systems, reports.

Verification Completeness and existence of supporting

data is verified during the annual financial statement audit.

Final test for reasonableness is performed internally.

Data limitations None

Data Validation and Verification:

Data collection

Frequency Surveys are currently conducted and

results reported annually.

Data storage

Verification Completeness and existence of supporting

data is verified during the annual financial statement audit.

Final test for reasonableness is performed internally.

Data limitations None

I• □ 

I• □ 
Patent and Trademark Office

FY 2001 Annual Performance Plan 187

Program Evaluation Efforts

Strategies and Activities:

Quality Management

PTO conducted a self-assessment using the Baldrige criteria to project key requirements for delivering everimproving value to customers while maximizing overall effectiveness and productivity of the delivering organization.

In addition, Patents makes use of input from the Office of Quality Review, in-process reviews, and customer

service efforts to improve value to customers.

Customer/Stakeholder Input

In conjunction with the National Academy for Public Administration, PTO conducted customer/stakeholder focus

sessions to gain a better understanding of their perspectives on end outcomes of the patent and trademark

systems.

Patent Working Lab

The Patent Working Lab to test reengineered processes opened in 1998 and ran for one-year. Based on lessons

learned, concepts tested in the Lab focusing on balancing the distribution of work with the potential of delivering

improvements in customer and employee satisfaction and greater quality of work products will be piloted in fiscal

year 2000.

Strategies Activities Budget

Request

Implement the American Inventors Protection

Act of 1999.

Support implementation of pre-grant

publication, term extension, expanded

reexamination and performance-based

organization.

$20,006,000

and base

Manage growth while improving processing

time.

Increase patent examiner staff, technical

support staff, print 168,300 patents, enhance

competitiveness in the labor market by offering

retention bonuses and accelerated promotions.

$22,695,000

and base

Establish an Integrated Quality Management

System.

Increase customer satisfaction and patent

examiner training; enhance classification and

examiner search activities; improve sampling

and effectiveness of Patent Quality Review.

$24,004,000

and base

Performance Goal 2:

Grant Exclusive Rights, for Limited Times, to Inventors for their Discoveries
Patent and Trademark Office

188 FY 2001 Annual Performance Plan

Resource Requirements

Total Dollars: $808.9 million

FY 99 Actual FY 00 Enacted FY 01 Request

$626.6 M $694.3 M $808.9 M

FY 99 Actual FY 00 Enacted FY 01 Request

4,753 5,362 5,949

FY 99 Actual FY 00 Enacted FY 01 Request

$91.9 M $93.2 M $114.8 M

Cross-Cutting Activities

Other Government Agencies

• Departments of Agriculture, Justice and State: The Patent Business partners with these agencies in the

formulation of intellectual property proposals.

• USAID: The Patent Business partners with USAID to improve systems for effectively granting and

protecting intellectual property rights.

• Departments of Defense and Energy and NASA: The Patent Business partners with these agencies in

handling patent applications having national security implications.

• Department of Health and Human Services: The Patent Business partners with HHS in handling both

AIDS-related and recombinant DNA information.

Performance Goal 2:

Grant Exclusive Rights, for Limited Times, to Inventors for their Discoveries

Total FTEs: 5,949

Skill Summary: Engineers, Scientists

Total IT Budget: $114.8 million

IT Requirements: Patent Image Capturing Systems; Application Capture and Review (PACRS);

Tools for Electronic Application Management (TEAM); Electronic Filing System (EFS); Patent

International Priority Document Exchange (IPDE); Share of Enterprise Infrastructure
Patent and Trademark Office

FY 2001 Annual Performance Plan 189

Performance Goal 2:

Grant Exclusive Rights, for Limited Times, to Inventors for their Discoveries

External Factors and Mitigation Strategies

The major external factor affecting PTO’s ability to meet this goal is the failure to have access to user fees, which

are paid in advance by customers to process requests for patent products and services. PTO is working with the

Administration on various options to ensure that full revenue collections are allocated to the purpose for which they

were paid; i.e. processing patent applications and granting patents.

A second major factor is continually increasing demand for patent products and services, for example, the rate of

growth in patent applications continues to rise above expectations. PTO has enhanced its forecasting capabilities

and is working with major customer groups to stay abreast of changes in demand patterns to enable PTO to seek

Administration and Congressional approval to use revenues over plan to meet the increasing demand. PTO also is

identifying reengineering and automation options to increase processing effectiveness and efficiencies, as well as

innovative human resources practices to recruit and retain examiners in the tight job market.
Patent and Trademark Office

190 FY 2001 Annual Performance Plan

Performance Goal 3:

Enhance Trademark Protections

Rationale for Performance Goal

Measure 3.a:

Pendency time to first action

PTO will maximize the business potential of trademarks and contain the cost of trademark application processing.

PTO will reduce trademark processing time, and provide trademark customers the option to file applications and

related papers electronically by placing electronic trademark applications on the PTO web site. Finally, PTO will

establish a fee schedule that encourages participation in the trademark system, and aligns fees with the cost of

providing services. PTO will offer employees innovative training programs and work-at-home opportunities.

In support of E-Commerce, the Trademark Business will enhance communication with customers and employees

by transforming trademark processing into a fully electronic operation.

A share of IT funds will support initiatives to safeguard against National security threats (e.g., dual data centers). 5.96.57.2 4.6

33

0

2

4

6

8

10

1996 1997 1998 1999 2000 2001

Months

ACTUAL TARGET

6464

63

69

8080

0

20

40

60

80

100

1996 1997 1998 1999 2000 2001

Percentage

ACTUAL TARGET

Data Validation and Verification:

Data collection

Frequency Varied. Input—Daily; Reported—Monthly.

Data storage TRAM/Trademark Information System

Verification Completeness and existence of supporting

data is verified during the annual financial statement audit.

Final test for reasonableness is performed internally.

Data limitations None

Measure 3.b:

Percentage of customers satisfied

Data Validation and Verification:

Data collection

Frequency Surveys are conducted and results reported

annually.

Data storage

Verification Completeness and existence of supporting

data is verified during the annual financial statement

audit. Final test for reasonableness is performed

internally.

Data limitations None

I• □ 

-

I• □ 
Patent and Trademark Office

FY 2001 Annual Performance Plan 191

Program Evaluation Efforts

Strategies and Activities:

Quality Management

PTO conducted a self-assessment using the Baldridge criteria to project key requirements for delivering everimproving value to customers while maximizing overall effectiveness and productivity of the delivering organization.

Customer/Stakeholder Input

In conjunction with the National Academy of Public Administration, PTO conducted customer/stakeholder focus

sessions to gain a better understanding of their perspectives on end outcomes of the patent and trademark

systems.

Trademark Work-At-Home

The two-year pilot conducted between March 1997 and March 1999 review whereby 18 Trademark examining

attorneys worked at home three days a week was evaluated. Based on preliminary results, the program will be

expanded.

Strategies Activities Budget

Request

Manage Growth While Improving Processing

Times.

Sustain current service levels while processing

increased workloads.

$4,800,000

and base

Establish an Integrated Quality Management

System.

Enable Trademark Quality Review to continue

to review a four percent sample of examined

applications.

$111,000 and

base

Implement the American Inventors Protection

Act of 1999.

Support establishment of the Trademark

Advisory Council and other performance-based

organization costs.

$128,000 and

base

Total Dollars: $124.3 million

FY 99 Actual FY 00 Enacted FY 01 Request

$101.3 M $110.3 M $124.3 M

Resource Requirements

Performance Goal 3:

Enhance Trademark Protections
Patent and Trademark Office

192 FY 2001 Annual Performance Plan

Total FTEs: 1,126

Skill Summary: Expertise in U.S. trademark law and procedures, knowledge of intellectual

property rights systems and policies

Cross-Cutting Activities

External Factors and Mitigation Strategies

FY 99 Actual FY 00 Enacted FY 01 Request

791 1,078 1,126

FY 99 Actual FY 00 Enacted FY 01 Request

$25.5 M $25.7 M $29.9 M

Intra-DOC

None

Other Government Agencies

U.S. Customs Service: The Trademark Business partners with the Department of Treasury’s U.S. Customs

Service regarding counterfeit goods or services

To meet this goal, PTO is working with the Administration to ensure that full revenue collections are allocated to

the purpose for which they were paid; i.e. processing trademark applications and registering trademarks.

A second major factor is continually increasing demand for trademark products and services, for example, the

rate of growth in trademark applications continues to rise above expectations. PTO has enhanced its forecasting capabilities and is working with major customer groups to stay abreast of changes in demand patterns to

enable PTO to seek Administration and Congressional approval to use revenues over plan to meet the increasing

demand. PTO also is identifying reengineering and automation options to increase processing effectiveness and

efficiencies.

Performance Goal 3:

Enhance Trademark Protections

Total IT Budget: $29.9 million

IT Requirements: Trademark Image Capture and Retrieval System (TICRS); Trademark

Electronic Application System (TEAS); Trademark Search System (TSS); Share of Enterprise

Infrastructure.
Patent and Trademark Office

FY 2001 Annual Performance Plan 193

Rationale for Performance Goal

Measure 4.a:

Percent key products and services meeting schedules or cycle time of standards

Timely availability of patent and trademark information serves the fundamental purpose of the patent and trademark

laws by disclosing new technologies and providing public notice concerning intellectual property rights.

To support the E-Commerce initiative the Information Dissemination Business will enable customers to use the

Internet to request the status of their patent and trademark applications, to place orders and receive products, and

to access patent and trademark data. PTO will offer electronic accessibility to customers to check application

status, place orders and receive products via the Internet. The PTO will also offer employees innovative training

programs and will establish a fee schedule that encourages participation in the patent and trademark systems and

aligns with cost.

A share of IT funds will support initiatives to safeguard against National security threats (e.g., dual data centers). 636770 64 80

0

20

40

60

80

100

1996 1997 1998 1999 2000

Percent

ACTUAL TARGET

Measure 4.b:

Customer satisfaction with key products and services

Data Validation and Verification:

Data collection:

Frequency: Quarterly

Data storage: Program reports and automated systems.

Verification: Completeness and existence of supporting

data is verified during the annual financial statement audit.

Final test for reasonableness is performed internally.

Data limitations: For the most part, data are collected

manually from program managers.

75

90

0

20

40

60

80

100

120

1999 2000 2001

Percent

ACTUAL TARGET

Data Validation and Verification:

Data collection:

Frequency: Surveys are conducted and results reported

bi-annually.

Data storage:

Verification: Completeness and existence of supporting

data is verified during the annual financial statement audit.

Final test for reasonableness is performed internally.

Data limitations: None

Performance Goal 4:

Promote Awareness of and Provide Effective Access to, Patent and

Trademark Information

I• □ 

I• □ 
Patent and Trademark Office

194 FY 2001 Annual Performance Plan

Strategies and Activities:

Resource Requirements

Total Dollars: $62.9 million

Strategies Activities Budget

Request

Implement the American Inventors Protection

Act of 1999.

Support implementation of pre-grant

publication.

$974,000 and

base

FY 99 Actual FY 00 Enacted FY 01 Request

$59.6 M $57.9 M $62.9 M

FY 99 Actual FY 00 Actual FY 01 Request

231 260 260

FY 99 Actual FY 00 Actual FY 01 Request

$13.4 M $16.0 M $18.1 M

Total FTEs: 260

Skill Summary: Knowledge of the value of, and methods for, disseminating patent and trademark information

Total IT Budget: $18.1 million

IT Requirements: Increased Internet Access by Customers to PTO’s products and services and

data; Share of Enterprise Infrastructure

Program Evaluation Efforts

Quality Management

PTO conducted a self-assessment using the Baldrige criteria to project key requirements for delivering everimproving value to customers while maximizing overall effectiveness and productivity of the delivering organization.

Customer/Stakeholder Input

In conjunction with the National Academy of Public Administration, PTO conducted customer/stakeholder focus

sessions to gain a better understanding of their perspectives on end outcomes of the patent and trademark

systems.

Performance Goal 4:

Promote Awareness of and Provide Effective Access to, Patent and

Trademark Information
Patent and Trademark Office

FY 2001 Annual Performance Plan 195

Cross-Cutting Activities

External Factors and Mitigation Strategies

Intra-DOC

Bureau of Census: The Information Dissemination Business provides the Census Bureau the annual report on

patent statistics for the Statistical Abstract of the United States.

Other Government Agencies

• Government Printing Office (GPO): GPO replicates PTO’s CD-ROM products and makes them available

to their depository libraries.

• National Science Foundation (NSF): PTO partners with NSF on the Report to the President on Science

and Engineering Indicators.

• U.S. Customs Service: PTO provides Customs with CD-ROMs of trademark information

The major external factor affecting PTO’s ability to meet this goal is the failure to have access to user fees, which

are paid in advance by customers to process requests for patent and trademark information products and services.

PTO is working with the Administration on various options to ensure that full revenue collections are allocated to the

purpose for which they were paid; i.e. disseminating patent and trademark information.

A second major factor is continually increasing demand for information products and services, for example, the rate

of growth in assignment (title of ownership) applications continues to rise above expectations. PTO has enhanced

its forecasting capabilities and is working with major customer groups to stay abreast of changes in demand patterns to enable PTO to seek Administration and Congressional approval to use revenues over plan to meet the

increasing demand. PTO also is identifying reengineering and automation options to increase processing effectiveness and efficiencies.

Performance Goal 4:

Promote Awareness of and Provide Effective Access to, Patent and

Trademark Information
Patent and Trademark Office

196 FY 2001 Annual Performance Plan
National Telecommunications and Information Administration

FY 2001 Annual Performance Plan 235

The telecommunications and information sector has become the driver for this country’s economic growth. The

White House Council of Economic Advisors recently determined that revenues of communications services and

equipment companies rose over 60 percent in the last five years. Information technology sectors are growing at

double the rate of the overall economy. Over a third of real domestic product growth in the past three years has

come from information technology industries. In 1996, 7.4 million people worked in high-tech jobs, earning an

average salary of $46,000, more than fifty percent more than the average wage of $28,000. Investments in new

technologies — including computers, satellites, wireless devices, and information processing systems — account

for over 45 percent of total real business equipment investment. These developments are affecting every American to

some extent. And it is expected to continue. New technologies will shape our economy even more significantly in

the 21st century, particularly with the growth of the Internet and electronic commerce. Today some 160 million users

worldwide are going online to shop, invest, trade, and e-mail, according to Nua Internet Surveys. That figure is

expected to increase to 320 million by the end of next year. As more people and businesses connect online, the

“virtual marketplace” will become commonplace. Electronic commerce among businesses is expected to grow more

than fifteen-fold in the next few years, from $64 billion in 1999 to $980 billion in 2003, according to International Data

Corporation analysts.

In this environment, NTIA’s continuing work through the series of Falling Through the Net reports has led to the

identification of the Digital Divide as a major national and international issue. With the Secretary of Commerce,

NTIA’s policy efforts will continue to address this issue so that all can benefit. NTIA’s spectrum management and

cutting-edge research activities also promote the goal of universal service by identifying innovative uses and resources for affordable, alternative communications services. NTIA’s grant programs serve to demonstrate the

effectiveness of new communications and information technology applications in meeting the real needs of community development programs, schools, libraries, and other nonprofit organizations. NTIA’s grants also help maintain

the reach of public broadcasting infrastructure and support its transition to the digital age. Each of these program

areas, though integrated domestic and international policy and technical work, keeps promotion of the benefits of

competition and universal service as primary strategic planning goals. The combined technical and policy expertise

of the agency help enable the U.S. to continue its lead in this integral part of global competitiveness.

• Promote Open Markets and Encourage Competition. Through its domestic policy activities, NTIA is emphasizing the implementation of the Telecommunications Act of 1996 as Congress intended, opening the door

to increased competition at both the long-distance and local level for the long-term benefit of both consumers and industry. Broadband services, e-commerce (electronic commerce), and Internet taxes are examples

of the issues NTIA is addressing. Internationally NTIA is promoting pro-competitive U.S. policies, including

regulatory reform and technical policies related to advanced technologies and the Internet. These activities

will improve the international competitiveness of the U.S. telecommunications and information industry and

the ability of U.S. businesses and consumers to have access to high-quality, reasonably-priced international

services.

National Telecommunications and

Information Administration

Mission Statement

To promote the efficient and effective use of telecommunications and information resources in a manner that creates job opportunities, enhances U.S. competitiveness,

and raises the standard of living.

Priorities
National Telecommunications and Information Administration

236 FY 2001 Annual Performance Plan

Organizational Structure

Assistant Secretary

Deputy Assistant

Secretary

Office of Policy

Coordination and

Management

Office of Public

Affairs

Office of

Congressional

Affairs

Office of

International

Affairs

Office of the

Chief Counsel

Office of

Spectrum

Management

Institute for

Telecommunications

Sciences

Office of Policy

Analysis and

Development

Office of Telecommunications and

Information

Applications

• Ensure Spectrum Provides the Greatest Benefit to All People. The priorities under this goal include identifying and supporting new wireless technologies with innovative proposals for the benefit of both Federal and

private sector users; providing Federal agencies (53) with the spectrum needed to support their missions for

national defense, law enforcement and security, air traffic control, national resource management and other

public safety services; developing plans and policies to use the spectrum effectively and efficiently; satisfying the United States future spectrum needs globally through participation with 190 other countries in the

International Telecommunication Union in establishing treaty binding agreements through the world

radiocommunication conference process; and improving the understanding of radio-wave transmission to

enhance spectrum utilization and the performance of radio communications systems through telecommunications research and engineering.

• Advance the Public Interest in Telecommunications, Mass Media, and Information. Digital Divide, universal

service reform, minority ownership development, E-Rate (education rate — program authorized by the

Telecommunications Act of 1996 to connect schools, libraries, hospitals, and other non-profit entities to the

information infrastructure), Internet privacy, and consumer billings are priority issues where NTIA’s expertise

will make a difference. NTIA has also been designated by the Secretary to serve as the lead agency for the

Information and Communications Sector under the Critical Infrastructure Program, as defined by Presidential

Decision Directive 63 (signed in May 1998).

• Promote the Availability and Sources of Advanced Telecommunications and Information Services. Access

to broadband technology is a critical next step in the evolution of advanced telecommunications and information services. NTIA will influence developments by participating in a joint Federal and State conference,

creating a wireless broadband development task force, funding broadband demonstration projects at the

community level, and assisting public broadcasters in using digital technologies to improve the public

broadcasting infrastructure and expanding services to the public. NTIA helped create the U.S. positions on

e-commerce and the Internet, and now advocates these positions abroad. In addition, largely through NTIA’s

efforts, the Department of Commerce has made substantial progress in transferring the responsibility for the

management of the Internet Domain Name System to a new corporation and making the domain name

registration system competitive. The transfer should be completed by October 1, 2000.

I L] I I 

I L] I L] 
National Telecommunications and Information Administration

FY 2001 Annual Performance Plan 237

Targets and Performance Summary

Highlights of NTIA’s FY 2001 Annual Performance Plan

Performance Goal 1: Promote Open Markets and Encourage Competition

Measure FY 99 Actual FY 00 Target FY 01 Target

Number of filings, testimony and speeches N/A 30 per year 30 per year

Performance Goal 2: Radio Spectrum Assignments

Measure FY 99 Actual FY 00 Target FY 01 Target

Number of authorized spectrum assignments 440 445 450

Performance Goal 3: Advance the Public Interest in Telecommunications, Mass Media, and Information

Measure FY 99 Actual FY 00 Target FY 01 Target

Maintain or increase current telephone subscription rates 96% 96% 96%

Increase Internet accessibility and use 26% 40% 50%

Performance Goal 4: Promote the Availability and Sources of Advanced Telecommunications and

Information Services

Measure FY 99 Actual FY 00 Target FY 01 Target

Number of models / grants available for non-profit or public

sector organizations 43 50 50
National Telecommunications and Information Administration

238 FY 2001 Annual Performance Plan

Resource Requirements Summary

Goal FY 99 Actual FY 00 Enacted FY 01 Request

Promote Open Markets N/A N/A N/A

Radio Spectrum Assignments $3.5 M $3.5 M $3.5 M

Public Interest Promotion $1.9 M $1.7 M $2.0 M

Advanced Telecommunications $18 M $15.5 M $15 M

Total Bureau Dollars: $20.5 million

Total FTEs: 182

Skill Summary: Scientists, Engineers, Lawyers, Economists, Policy Analysts, Support Staff

Goal FY 99 Actual FY 00 Enacted FY 01 Request

Promote Open Markets N/A N/A 128

Radio Spectrum Assignments 23 23 23

Public Interest Promotion 12 12 12

Advanced Telecommunications 20 19 19

Total Bureau IT Dollars: Not available

IT Requirements: NTIA does not break out IT requirements separately from program budgets

Goal FY 99 Actual FY 00 Enacted FY 01 Request

Promote Open Markets N/A N/A N/A

Radio Spectrum Assignments N/A N/A N/A

Public Interest Promotion N/A N/A N/A

Advanced Telecommunications N/A N/A N/A
National Telecommunications and Information Administration

FY 2001 Annual Performance Plan 239

Performance Goal 1:

Promote Open Markets and Encourage Competition

Rationale for Performance Goal

NTIA’s domestic policy activities focus on improving the way communications services and products are provided to

the public. The relative importance of current domestic telecommunications and information policy issues are

continually evaluated to determine the highest priority items for immediate Executive Branch attention. Legislative

initiatives and Federal Communications Commission (FCC) dockets also influence NTIA domestic policy activities.

In the international area, NTIA develops and advocates regulatory and technical policies that will improve the

international competitiveness of the U.S. telecommunications and information industry and the ability of U.S.

businesses and consumers to have access to high-quality, reasonably-priced international services. NTIA will

continue to develop international policies that promote effective competition, including a diversity of facilities and

services, and open markets for U.S. service providers and equipment suppliers.

The resources required for these activities are dependent on when issues arise in Congress and the FCC, among

other forums, so that NTIA is unable to plan dollar and FTE amounts far in advance. NTIA is reactive to these

outside events and responds accordingly. Policymaking in the technology industry is demanding and growing at a

rapid pace which is difficult for even the best analysts to predict.

Measure 1.a:

Number of filings, testimony and speeches

Program Evaluation Efforts

NTIA conducts semi-annual strategic planning retreats with senior executives to review progress

and develop new goals.

• Plan to achieve next target: Prioritize FCC proceedings, present Administration views on legislation,

participate actively in conferences, etc.

• FY 2000, FY 2001 targets: 30 per year

• Data Issues: All filings, testimony, speeches, etc. are posted on the NTIA website for public inspection.

• Discontinued Measures: Compliance with WTO telecommunications agreement.

30 30

0

10

20

30

40

50

1999 2000 2001

Number

ACTUAL TARGET

Data Validation and Verification:

Data collection: Files collected by NTIA

Frequency: Compiled annually

Data storage: Files maintained by NTIA

Verification: Source authenticity verified by NTIA

Data limitations: None

- -

I I 

I• □ 
National Telecommunications and Information Administration

240 FY 2001 Annual Performance Plan

FY 99 Actual FY 00 Enacted FY 01 Request

N/A N/A N/A

Resource Requirements

Resources for this program activity are not broken out separately in budget materials.

Total FTEs: Not Available

Skill Summary: Scientists, Engineers, Lawyers, Economists, Policy Analysts, Support Staff

FY 99 Actual FY 00 Enacted FY 01 Request

N/A N/A N/A

Total IT Dollars: Not available

FY 99 Actual FY 00 Enacted FY 01 Request

N/A N/A N/A

Cross-Cutting Activities

Intra-DOC

NTIA supports the Secretary of Commerce in a broad range of policy issues. NTIA works with the International

Trade Administration on international trade promotion activities.

Other Government Agencies

NTIA coordinates with the White House, including the Office of the Vice President, and participates in Working

Groups with other Federal agencies on issues that cross jurisdictional boundaries.

Total Dollars: Not available

Strategies Activities

Assess FCC and legislative proceedings for

impact on issues and optimal use of agency

resources in affecting policies.

-- Advocate procompetitive policies and

market entry by new service providers.

-- Assess applications by ILECs to provide

long distance services.

-- Coordinate with state regulatory agencies.

-- Engage in bilateral and multilateral

negotiations.

Strategies and Activities

Performance Goal 1:

Promote Open Markets and Encourage Competition
National Telecommunications and Information Administration

FY 2001 Annual Performance Plan 241

Rationale for Performance Goal

Measure 2.a:

Number of authorized spectrum assignments

Radio spectrum is a scarce resource necessary to support government communication, public safety, and national

defense. At the same time, private sector uses are burgeoning. Efficient management of these resources, research into new and better spectrum uses, and participation in international organizations all help to assign radio

spectrum to fulfill needed services. NTIA’s spectrum management activities are currently funded by other Federal

agencies at the 80 percent level.

437

445 450

400

410

420

430

440

450

460

470

480

490

500

1999 2000 2001

Number

Program Evaluation Efforts

A subcommittee of the Interdepartmental Radio Advisory Committee (IRAC) evaluates NTIA’s spectrum management

activities on behalf of Federal agencies. NTIA also measures the time to process frequency assignment requests

and system reviews.

Strategies and Activities

Strategies Activities

Develop and implement spectrum plans and

policies for both government and private sector

users.

-- Satisfy the spectrum needs of Federal

 government agencies.

-- Advance development of spectrally efficient

 technologies.

-- Improve the management of Federal and

 nonfederal spectrum.

NTIA continuess to totally automate the

frequency assignment process to increase

speed and efficiency.

-- Completion of automated system expected

in 2002.

Performance Goal 2:

Radio Spectrum Assignments

Data Validation and Verification:

Data collection Government Master File (GMF)

maintained by NTIA; data is collected from Federal

agency requests for spectrum assignment actions

Frequency Standard reports issued monthly

Data storage NTIA mission critical system; data

available on CD-ROM

Verification GMF has built-in checks; also staff

review outside of these checks.

Data limitations None I I 
National Telecommunications and Information Administration

242 FY 2001 Annual Performance Plan

Resource Requirements

Total Bureau IT Dollars: Not available

Cross-Cutting Activities

FY 99 Actual FY 00 Enacted FY 01 Request

$3.5 M* $3.5 M $3.5 M

Total Bureau Dollars: $3.5 million

* Dollars shown are for the spectrum assignment process (80% other agency funded)

FY 99 Actual FY 00 Enacted FY 01 Request

23 25 23

Total FTEs: 23

Skills Summary: Scientists, Engineers, Lawyers, Economists, Policy Analysts, Support Staff

FY 99 Actual FY 00 Enacted FY 01 Request

N/A N/A N/A

Intra-DOC

IRAC assists the Assistant Secretary on all spectrum matters. The IRAC is made up of all spectrum-using Federal

agencies.

Other Government Agencies

NTIA works with 23 Federal agencies who are represented on the IRAC.

Performance Goal 2:

Radio Spectrum Assignments

External Factors and Mitigation Strategies

The total number of frequency assignments processed each year is dependent on total requests

made by Federal agencies.
National Telecommunications and Information Administration

FY 2001 Annual Performance Plan 243

Performance Goal 3:

Advance the Public Interest in Telecommunications, Mass Media, and

Information

Rationale for Performance Goal

Measure 3.a:

Maintain or increase telephone subscription rates

Program Evaluation Efforts

Affordable access to telecommunication technology is becoming a basic necessity for a successful and productive

life in all sectors of our society, including business, academia, industry, banking, and government.

96% 96% 96%

0%

20%

40%

60%

80%

100%

120%

1999 2000 2001

Percent

Measure 3.b:

Increase Internet accessibility and use

26%

40%

55%

0%

20%

40%

60%

80%

100%

1999 2000 2001

Our report, Falling Through the Net, the Digital Divide, received widespread attention and praise for its methodology and analysis. The report has spurred attention to the digital divide as an issue for policymakers to address.

Proposals to address the issue will be evaluated throughout the funding process.

Data Validation and Verification:

Data collection Data is available via Census Bureau

Frequency Annual

Data storage The Census Bureau maintains and tabulates the

data.

Verification The Census Bureau uses established statistical

techniques

Data limitations N/A

Actions to be taken N/A

Data Validation and Verification:

Data collection NTIA is making special arrangements with

Census Bureau

Frequency Annual estimates

Data storage Bureau of the Census

Verification Standard survey statistical techniques

Data limitations N/A

Actions to be taken N/A
National Telecommunications and Information Administration

244 FY 2001 Annual Performance Plan

Strategies and Activities

Strategies Activities

Promote universal service and access to

telecommunication.

-- Assist in maintenance and extension of

 the service of public broadcasting and

 telecommunication facilities, including digital

 broadcasting.

-- Create substantive technical, economic, and

 legislative policy analysis.

Promote infrastructure development and

encourage rollout of alternative services

including wireless and broadband

telecommunications services.

-- Coordinate with the White House and other

 Executive Branch agencies.

-- Facilitate private sector discussions by

 obtaining expert and public views, including

 Federal Register notices for requests for

 comments, public conferences, seminars,

 and focus groups.

-- Encourage private sector initiative to give

 citizens the ability to protect their children

 form indecent material.

-- Establish principles for the protection of

 personal privacy.

Work to maintain the U.S. telecommunications

and information infrastructure in time of crisis.

NTIA has been assigned the lead agency role

for the telecommunication and information

sector, subject to available resources.

Resource Requirements

Total FTEs: 12

Skills Summary: Scientists, Engineers, Lawyers, Economists, Policy Analysts, Support Staff

Total IT Dollars: Not available

Total Dollars: $2.0 million

FY 99 Actual FY 00 Enacted FY 01 Request

N/A $2.0 M $2.0 M

FY 99 Actual FY 00 Enacted FY 01 Request

N/A 12 12

FY 99 Actual FY 00 Enacted FY 01 Request

N/A N/A N/A

Performance Goal 3:

Advance the Public Interest in Telecommunications, Mass Media, and Information
National Telecommunications and Information Administration

FY 2001 Annual Performance Plan 245

Cross-Cutting Activities

External Factors and Mitigation Strategies

There are many exogenous variables affecting telephone penetration rates, including income and affordability.

NTIA’s efforts focus on regulatory regimes and their success in promoting competition in markets and among

technologies and the extent to which barriers to competition can be removed. However, NTIA does not control the

regulatory regimes; it can only attempt to persuade through its analysis and views.

Intra-DOC

NTIA works with the Census Bureau to produce the series of Falling Through the Net reports.

Other Government Agencies

NTIA coordinates its telecommunication, broadcasting, and digital divide activities with the White House, including

the Office of the Vice President, and participates in Working Groups with other Federal agencies.

Performance Goal 3:

Advance the Public Interest in Telecommunications, Mass Media, and Information
National Telecommunications and Information Administration

246 FY 2001 Annual Performance Plan

Performance Goal 4:

Promote the Availability and Sources of Advanced Telecommunications and

Information Services

Rationale for Performance Goal

Measure 4.a:

Number of models/grants available for non-profit or public sector organizations

Program Evaluation Efforts

Strategies and Activities

In FY 2001, the Secretary has approved a major new effort for NTIA: a substantive grant program designed to

demonstrate the benefits and applications of the Next Generation Internet. This is part of the Secretary’s focus on

the digital economy.

12 case studies of TIIAP grantees were conducted in 1999. Results are posted on the website,

http://www.ntia.doc.gov

Strategies Activities

Stimulate technological innovation. -- Issue grants in a highly competitive, merit-

 based process.

-- Demonstrate advanced, innovative

 application of telecommunication and

 information technology in the non-profit and

 public sector.

-- Promote the growth of electronic commerce

 and Internet use domestically and

 internationally.

-- Initiate cooperative research and

 development with U.S. industry and other

 Federal agencies.

Promote international acceptance of U.S.

technological proposals.

-- Participate in International

 Telecommunication Union and domestic

 standards.

-- Participate in conferences urging minimal

 regulation and early adoption of electronic

 commerce and the Internet.

43

50 50

40

45

50

55

60

1999 2000 2001

Data Validation and Verification:

Data collection Formal evaluation contracts

Frequency Annual report

Data storage Reports printed and circulated posted on

Web site.

Verification NTIA staff and grantees review data

Data limitations N/A
National Telecommunications and Information Administration

FY 2001 Annual Performance Plan 247

Resource Requirements

Total Dollars: $15 million

Total FTEs: 19

Total IT Dollars: Not available

External Factors and Mitigation Strategies

FY 99 Actual FY 00 Enacted FY 01 Request

18.0 M 15.5 M $15 M

FY 99 Actual FY 00 Enacted FY 01 Request

20 19 19

FY 99 Actual FY 00 Enacted FY 01 Request

N/A N/A N/A

NTIA focuses on the quality of the applications and the types of activities for which funding is sought rather than on

the total number of grants awarded.

Performance Goal 4:

Promote the Availability and Sources of Advanced Telecommunications and

Information Services
National Telecommunications and Information Administration

248 FY 2001 Annual Performance Plan
FY 2001 Annual Performance Plan 249

Management Challenges

Overview

During his tenure, Secretary Daley has made “effective, efficient management” a critical goal for the Department.

Under Secretary Daley’s leadership, performance outcomes have become the key measures for assessing the

Department’s progress in addressing management and program challenges.

As a direct result of the Secretary’s emphasis on accountability and providing the taxpayer due diligence in the use

of resources, the Department has strengthened intramural communications, implemented strategic planning, and

integrated policy-making into the budget process. The Commerce team is focused on full mission accomplishment,

the elimination of overlap, and timely delivery of high-quality services.

The Secretary’s management philosophy and its benefits are fully consonant with the spirit of the Government

Performance and Results Act (GPRA) of 1993. GPRA is directed at providing both Congress and the public with a

complete picture of how well agencies are meeting their intended purposes and a rigorous commitment to continually improving performance. As a result of the Secretary’s leadership and the Department’s aggressive implementation of GPRA, many long-standing management and programmatic challenges have been resolved or are very near

resolution. This progress and the continual emphasis on requiring each program to justify its contribution each day

have introduced a new dynamic — a widely-shared spirit to make the best use of our resources in serving the

American people.

Highlights of our accomplishments from the past year include the following:

• The Department has made great strides in preparing for the 2000 Census. Work is near completion on

outreach efforts, including a publicity campaign, printing Census questionnaires in multiple languages, and

aggressively seeking to hire Welfare-to-Work individuals to help administer the Census at 520 local level

offices throughout the country.

• The Department has continued to improve its financial management program, and anticipates obtaining an

unqualified opinion on its consolidated balance sheet for fiscal year 1999. The number of material weaknesses and reportable conditions continue to decline. For example, the Department’s efforts in identifying

alternatives for obtaining hydrographic and marine data have led to the NOAA fleet modernization being

dropped as a material weekness.

• The Department fully and successfully met the Y2K challenge — on all of its 473 mission-critical and 693

non-mission-critical systems.

• DOC has led the Federal government in providing an avenue for increasing the number and value of

contracts for small, minority, and women-owned businesses through its new, government-wide Commerce

Information Technology Solutions (COMMITS) program.

• The Department is delivering on its ambitious commitment to foster diversity – both inside Commerce and

among our customers – as a means of nourishing our Nation’s strength.

• Significant progress has been made in meeting the objectives of the Government Performance and

Results Act by greatly improving the utility of our Annual Performance Plan – a gain that was recognized

by both the Office of Management and Budget and Congress — and Congressional staff awarded Commerce one of the highest scores in government in 1999.

• We achieved a major milestone in our weather forecast capabilities by installing advanced workstations in

the National Weather Service.

The Commerce Management Strategy: Our Model for

Challenge and Success
Management Challenges

250 FY 2001 Annual Performance Plan

• We have improved oversight of our financial assistance programs and our facilities acquisition and management to ensure that the funds placed in our charge are well spent.

• The Department consolidated and strengthened security operations to ensure complete protection of our

employees, property, and data.

2000 Decennial Census

Our top management priority at the Department of Commerce continues to be to ensure that the 2000 Census is

managed effectively and efficiently. Over the past 21⁄2 years, the Office of Inspector General (OIG) has raised

concerns about the Census Bureau’s readiness to undertake this enormous task. At Secretary Daley’s direction,

the Department has exerted a great deal of effort to ensure that the Decennial is well-managed and to address the

Inspector General’s concerns.

As part of its effort to boost initial response to the Census form, the Bureau designed a major publicity campaign

that includes advertising in 17 different languages. The campaign will proceed in three phases, with the first phase

(awareness) beginning last November. Questionnaires are printed in six languages and language guides are

provided in over 40 languages. Questionnaire Assistance Centers will be established in local communities with over

15,000 paid assistants, many of whom are bilingual. Indigenous enumerators from local neighborhoods are being

hired at competitive wages.

Our outreach efforts include our sponsoring the Census 2000 Partnership program, which is drawing on local and

State governments, non-governmental organizations, and businesses to promote full participation in the census, help

dispel myths, and explain that the answers given to the Census Bureau will be held confidential. The Bureau has

also designed special census methods and procedures to improve cooperation and enumeration in hard-to-enumerate areas. Our procedures are giving the regional census centers the flexibility to target specific blocks and neighborhoods for coverage improvement.

The Bureau developed action plans for the 520 local Census offices to provide managers with effective strategies

for conducting a complete and fair enumeration of all communities under their jurisdiction. These plans will be

based on a detailed study of each community, identifying those that are hard-to-enumerate and recommending the

specific tools that should be used to improve coverage. Once these operations are complete, the Census Bureau

will use modern statistical sampling methods to conduct an Accuracy and Coverage Evaluation Survey, which will be

used to produce more accurate numbers for all purposes other than apportionment.

Most elements of our plans for the 2000 decennial census were tested and evaluated in the Census 2000 Dress

Rehearsal. This past August, the Department released a final report providing the results and recommendations

from more than 40 evaluation studies conducted during the Dress Rehearsal. These evaluations indicate that,

overall, the Dress Rehearsal was successful. Population numbers were produced on time, and the numbers,

including data adjusted using modern statistical methods, compared favorably with independent benchmarks. In

those operations where problems were identified, the Census Bureau modified plans for Census 2000 accordingly.

During the past three months, the Census Bureau completed the address label tape for use in addressing and

labeling questionnaires for nearly 120 million housing units throughout the country. This major milestone was

achieved with help from nearly half of the 39,000 governmental units in the United States that are participating in the

Local Update of Census Addresses program. Moreover, the participating units encompass 85 percent of all households in the United States. We are continuing to update the Census 2000 address list periodically as we find new

housing units, identify corrections, and add new construction.

All other key operations for Census 2000 are also on schedule. All major contracts have been awarded and the

contractors are in place. The four data capture centers and all 520 temporary local Census offices are open.

Contracts for printing the various questionnaires were awarded last March and the operation to print, address,

assemble, and ship the census forms to the U.S. Postal Service or other Census Bureau locations began as

scheduled in July 1999.
FY 2001 Annual Performance Plan 251

Management Challenges

Department-wide Financial Management

We are extremely confident that Commerce will receive an unqualified (or “clean”) audit opinion on its Consolidated

Financial Statement for FY 1999, though the results will not be known with certainty until one month after release of

this Annual Performance Plan. With the achievement of an unqualified audit opinion, we will have attained one of

our major management milestones — achieving a sound financial management environment that complies with

Federal laws and regulations and provides Commerce executives with timely, accurate financial information.

Preliminary data also indicate that all major bureaus will receive unqualified audit opinions on each of their five

principal statements — Consolidated Balance Sheet, Consolidated Statement of Net Cost, Consolidated Statement

of Changes in Net Position, Combined Statement of Budgetary Resources, and Combined Statement of Financing.

We anticipate that our auditors will find a significant reduction in the number of reportable conditions and material

weaknesses in FY 1999 at the Department-level and bureau level. Under Secretary Daley’s leadership, the

Department has continued to reduce the number of findings identified by the auditors each year at the bureau level

— from 37 material weaknesses and 39 reportable conditions in FY 1996 to 12 material weaknesses and 26

reportable conditions in FY 1998.

Under provisions of the Government Management and Reform Act (GMRA) of 1994, the Department will complete its

first Accountability Report by March 1, 2000. The Accountability Report streamlines reporting requirements of the

Department by consolidating various reports (Consolidated Financial Statements, FMFIA, etc) required by Congress into a single report. The Accountability Report will provide a comprehensive picture of the Department by

including financial as well as performance information. Integrating this information will enable the Department to

accomplish performance-based management.

The Department continues to make significant progress in implementing the Commerce Administrative Management

System (CAMS) – a single, integrated financial management system. The system includes a Core Financial

System interfaced with administrative systems for small purchases, bankcards and time reporting/labor cost distribution collectively called Core CAMS. Core CAMS was successfully deployed at Census during FY 1998. An

independent verification and validation study of the system implemented at Census concluded that it met departmental requirements and was as good as or better than other financial management systems available on the market.

Implementation of core CAMS has now been completed at EDA for its financial assistance programs, and implementation is well underway at NOAA. NIST will complete its implementation planning for core CAMS in FY 2000,

and will begin system deployment in FY 2001.

During FY 1999, we filled all remaining chief financial officer vacancies in the bureaus, specifically, the Economic

Development Administration (EDA), the International Trade Administration (ITA), and the Patent and Trademark

Office (PTO). We continued to strengthen our financial policies and procedures and our automated systems to

ensure that they support the generation of reliable and accurate financial data. During this period, we published the

Department’s Financial Management Handbooks on our homepage and held several conferences with our bureau

financial officials to ensure complete understanding and agreement with our financial management objectives and

approaches.

Under the Secretary’s direction, the Department continues to place an extremely high priority on its financial

statements and accountability for all assets. The Department’s Chief Financial Officer, who controls 50 percent of

bureau CFO performance evaluations, meets regularly with all bureau CFOs to review progress on financial statements, audit issues, and other financial matters. The Department’s “CFO Council” meets monthly and is one of the

primary forums in the Department for discussion of management issues, including human resources, budget,

procurement, and information technology systems, as well as financial accountability issues.
Management Challenges

252 FY 2001 Annual Performance Plan

Information Technology Investments

The Department successfully met the Y2K challenge. All of the Department’s systems functioned properly and, as a

result, we shut down our Emergency Operations Center earlier than had been planned. A few extremely minor

aberrations occurred; these involved only non-mission critical systems and were resolved within a few hours.

In September, the Department completed Y2K compliance for 100 percent of its 473 mission-critical systems. By

December 22nd, all of the Department completed Y2K compliance for all of its 693 non-mission critical systems. As

a result of our efforts, we completed our Department-level business continuity and contingency plans, and ensured

that our telecommunications, building infrastructure, and data exchange systems would be ready. To ensure a

smooth transition to the year 2000, we had approximately 50 staff on hand on New Year’s Eve monitoring systems

transition.

The Office of the CIO worked closely with bureau management over the last year to monitor their progress on Y2K

remediation, ensure that their programs adequately addressed all necessary systems and contingencies, that

business continuity plans existed for all business areas, and that work was completed on schedule.

As part of its Y2K outreach program, Commerce provided domestic Y2K technical assistance to hundreds of

thousands of U.S. small and medium-sized businesses through a Y2K Help Center for Small Business and training

through 1,600 workshops offered by the Department’s Manufacturing Extension Program. MEP developed a customer-friendly Y2K Self Help Tool on CD-ROM, available in 11 languages, to help small and medium-sized businesses with a variety of business needs potentially affected by Y2K – systems inventory, business criticality

assessment, remediation planning and management and contingency planning. Well over 600,000 copies of this

tool were distributed in the U.S. and abroad. In addition, more than 6,000 attendees participated in 40 international

Y2K conferences and events that the Department and its bureaus organized in 22 trading partner countries.

In 1999, the Department worked diligently to complete its effort at meeting the spirit of the Clinger-Cohen Act.

Among other provisions, this Act called for agencies to oversee effective information technology planning and

expenditures. Commerce’s Chief Information Office has continued to implement several enhancements. These

include: (a) consolidation – to achieve gains in cost and service quality, (b) standards – to promote commonality

that can reduce support costs and avoid reinventing solutions to problems already solved, (c) new technologies – to

achieve cost reductions by coordinating their exploration and implementation, and (d) common services – to realize

savings by using common software and support methods for such activities as financial management, grants

management, forms, and Web sites.

During the past year, we strengthened our information technology capital planning. Under the Department’s CIO’s

leadership, each bureau conducted a self-assessment and examined best practices in light of its own information

technology needs. We used the findings to improve our selection, control, and evaluation of prospective information

technology investments. Using a Department-wide group of information technology officials, we established a

rigorous and transparent process by which every proposal is evaluated on the basis of its expected contributions,

risks, and costs. Projects that received a low rating were not supported in our budget process. The results improved the Department’s overall planning and show every indication of translating into significant gains in the

accuracy of our cost and schedule projections.

The Department supplemented its capital planning and review process with two formal mechanisms for managing

our information technology acquisitions. First, we require a Delegation of Procurement Authority for every information technology contract over $10 million. Under the authority of this delegation, our Chief Information Officer must

certify that the business need exists. Secondly, the bureaus must submit business case documentation for major

information technology acquisitions. The documentation must show that project management metrics and controls

are in place, viable alternatives have been evaluated, and that the acquisition supports the bureau’s information

technology architecture.
FY 2001 Annual Performance Plan 253

Management Challenges

The Department has developed a Critical Infrastructure Protection (CIP) program with help from the Critical Infrastructure Assurance Office. Through this program, the Department identified 31 infrastructure systems that met the

requirements — such as national security, national economic security, and public health and safety — of Presidential Decision Directive 63 (PDD-63). We supplemented this process with an independent validation and verification

that identified and ranked in priority order the top 25 percent of the Department’s assets. Based on these reviews,

we submitted a critical infrastructure protection plan and budget to the Office of Management and Budget.

Secretary Daley is committed to creating a truly digital department at Commerce. When he arrived in January

1997, the Department was behind the private sector in using information technology services. There was no robust

infrastructure to support users, an overall inability to share and exchange data among the bureaus and the Office of

the Secretary, an absence of administrative support systems, and an inability to communicate securely among

employees located throughout the world.

Information technology functions throughout the Department were reorganized under the recently established

position of Chief Information Officer, who reports to the Secretary. Information technology representatives from

every bureau are brought together regularly to participate in rigorous reviews aimed at effectively coordinating

information technology planning, seeking synergy, identifying resource needs, and monitoring progress of each of

the Department’s major systems.

DOC launched a “Digital Department” initiative with the hiring of a Digital Department Program Director in the

summer of 1999. Within the constraints of available resources, this initiative will move Commerce from paperbased administrative systems and transactions to on-line interactions with customers and employees, similar to the

advances increasingly found in the private sector. Both customers and employees will benefit from secure, accelerated, and more productive interactions in which the information flow from beginning to end of a process will be

seamless and in the medium most convenient to the needs of individual users.

By the close of calendar year 1999, the Department established a secure Intranet for pilot testing in the Office of

the Secretary which, among other services, provides access to several downloadable forms. We also introduced

an automated Time and Attendance Reporting System which, also, is currently in pilot mode. Automation of additional applications, such as security requests and requisitions, will be introduced as budget becomes available.

By the close of calendar year 2000, our Digital Department will provide secure Intranet services to all employees

throughout the Washington, D.C. metropolitan area and add additional administrative processes (specifically, an

automated hiring system and the Department’s information technology review system, and, if the budget permits,

travel and inventory systems). The Department’s public customers will have access to an Internet site organized

from the customer’s perspective that will facilitate access to, and analysis of, all information on a specific subject in

a one-stop electronic visit.

By the close of calendar year 2001, our Digital Department will provide secure Intranet access to all Commerce

employees throughout the world and significantly expand the complement of administrative processes available

electronically. The network in the Office of the Secretary will have been upgraded to deliver reliable service and

meet capacity requirements and employees will have standard, well-supported, state-of-the-art desktop systems.

By 2002, the implementation goals of the Digital Department will be realized – most internal processes at Commerce

will be web-based and make maximum use of the Intranet. Key external processes of the Department will be

electronic and make maximum use of the Internet for customer interfaces such as data collection and dissemination

and business programs will continue to be re-engineered and redesigned to take advantage of new technological

capabilities to more efficiently and effectively provide our products and services.

The following illustrations exemplify some of the benefits of our Digital Department initiative:

• Commerce Opportunities On-Line (COOL) is an automated, web-based vacancy announcement, application, and referral system. Through COOL, any potentially interested applicant may review open vacancy
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254 FY 2001 Annual Performance Plan

announcements, sorted to meet his or her personal preferences, and submit an on-line application. With

use of an ID and password, applicants can create, update, save, and submit applications with complete

security. The system is user-friendly and is available 24 hours a day, 7 days a week. The COOL approach

reduces the time it takes an applicant to apply for a position because the system eliminates the need to

prepare lengthy written answers to identified knowledge, skills and abilities (KSAs) required for the position.

Instead, the same information is obtained by providing yes or no answers to a series of specially prepared

questions. COOL benefits the Department’s managers as well, by: (a) greatly reducing the time needed to

rank applicants against the KSAs for a specific position, (b) permitting on-line issuance of referral lists of

eligible candidates to the selecting official, (c) facilitating e-mail communication between the selecting

official and applicants, (d) making selection/non-selection designations on-line, and (e) allowing the selecting official to automatically notify the Human Resource Office when he or she has completed the selection

process.

This innovative system broadens the Department’s distribution of vacancy announcements to anyone who

has access to the web and also reduces time lag – both in disseminating announcements to applicants as

well as by providing applicants an on-line avenue for submission of their applications. These features

greatly enhance the Department’s potential for increasing the number of external candidates and for

securing an applicant pool that more fully reflects the Nation’s population. COOL was tested as a pilot

program at the Department’s Eastern Administrative Support Center, NOAA, and in select organizations of

the Office of the Secretary. COOL will be implemented at the Census Bureau in March and subsequently

at the Department’s other bureaus throughout FY 2000.

• The Department’s Minority Business Development Agency conceived and developed an Internet-based

business resource locator system to enable minority businesses and business development practitioners to

search for and locate business assistance institutions interactively on a map. The system addresses the

critical need of providing minority businesses throughout the Nation with a fast and easy to use mechanism

for finding public, private, educational, and nonprofit business development resources in their local area.

• NOAA re-engineered its shoreline mapping techniques to enhance the accuracy of analyses of shoreline

data extracted from different types of synthetic aperture radar. The advances included development of

three-dimensional approaches to shoreline extraction using synthetic aperture radar, lidar, and digital

photogrammetry, and improved application of image understanding methodologies such as automatic

feature extraction and sub-pixel analysis of hyperspectral data. These advances will enable NOAA to

deliver more accurate and current nautical charts to professional mariners and to the port authorities

responsible for managing port facilities.

• The Office of the Secretary developed HANS (Honor Awards Nomination System) – a web-based and reengineered system that streamlined the process of nominating, reviewing, and awarding the Department’s

gold and silver medals. HANS allows a manager – using an Internet browser and operating from a main

menu – to enter, edit, review, and approve nominations on-line. HANS also tallies voting results automatically and creates statistical reports. Prior to HANS, the system was paper-based, time-consuming, and

involved the physical manipulation of a huge volume of hard copy forms that filled several large boxes.

Procurement Innovations

The Department created the first government-wide acquisition contract (GWAC) reserved specifically for small and

disadvantaged businesses – the Commerce Information Technology Solutions (COMMITS). This innovative program

will award some $1.5 billion in information technology contracts to small businesses over the next five years.

COMMITS provides an opportunity for small, minority, and women-owned firms to tap the $45 billion the government spends annually on information technology. According to a recent Federal Sources Report, large companies

now receive a 71 percent market share of Federal information technology dollars. This is up from 57 percent in

1995. During the same period, market share for small disadvantaged business went from 30 percent to 15 percent.
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Management Challenges

Commerce created COMMITS to reverse this trend. As a result of widespread publicity, over 1,000 firms participated

in a national competition in which, ultimately, 29 firms were selected. On October 6, 1999, Deputy Secretary Robert

L. Mallett briefed the President’s Management Council on COMMITS, and a formal kickoff of the program was held in

November.

All tasks placed through COMMITS are fully competed and, through the end of calendar year 1999, an average of

10 contractors responded to each offering. Average acquisition cycle time was 17 calendar days.

With authorization from the Office of Management and Budget, DOC is offering COMMITS as an avenue for other

Federal agencies to access capable firms that have been vetted and approved by Commerce. During the first two

months of the program, two agencies – the Environmental Protection Agency and the Equal Employment Opportunity Commission – used the program. Several other agencies – including the Departments of Agriculture, Housing

and Urban Development, Interior, Labor, and State – are actively exploring use of COMMITS to help meet their

information technology needs.

In other areas, the Department took several actions to improve acquisition management performance. We

initiated the Commerce Acquisition Career Management Program. This program provides central funding and has

trained 100 procurement personnel in operational procedures throughout the Department’s bureaus. We prepared

and disseminated the Customer’s Handbook to Procurement, a primer to support efficient procurement practices

by identifying roles and responsibilities, summarizing the procurement process, and setting lead times for various

types of procurement actions. We are implementing procurement automation software for use throughout the

Department. The software – Commerce Standards Acquisition and Report System (CSTARS) – will provide timely

and relevant information that will support informed management decisions and facilitate the accomplishment of

program missions through improved acquisition support. To broaden our focus on best practices, we are participating in the government-wide Procurement Executives Council Acquisition Workforce Committee and its steering

committee. We helped launch the Government-wide Acquisition Management Intern Program and will be a

sponsor of the first class of interns in FY 2000. This cross-government program will offer two-year internships with

rotational assignments and 320 hours of training to develop skills and competencies. This training will help provide

the leadership to replace the expected future government-wide retirement bulge of procurement executives and

effectively administer the requirements of recent procurement reform.

Strength through Diversity

“Diversity transcends race, gender, religion, age, culture, disability, or sexual orientation” — reads a sign in the

Commerce Department’s library. That sign is a reflection of significant changes occurring in the American workplace and the Nation’s population.

One management maxim holds that employers who do well in addressing diversity issues – race, gender, religion,

age, culture, disability, and sexual orientation – are the ones that will excel in the years to come. Again, with a

broadening of the picture, it is clear that a society which does likewise will also succeed in the years to come. One

need only recall a simple statistic cited by Vice President Gore – that small business contributes over 60 percent of

the new jobs in our economy – to realize that the future of our Nation’s economy and our Nation’s welfare will be

highly dependent upon our embracing of diversity.

In recognition of these benefits, the Commerce Department has taken several steps to champion diversity – both

within the Department and in serving its customers. As described above, Commerce has taken a leadership role

in enhancing information technology contracting opportunities for small, minority, and women-owned firms through

the innovative COMMITS program.

In a parallel effort, the Department hosted a meeting with executives from Commerce’s top contractors to discuss

the importance of increasing opportunities with small, minority, and women-owned firms. As a result, prime

contractors included small business subcontracting goals in the performance plans of their project managers and

identified additional small businesses for subcontracting opportunities.
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256 FY 2001 Annual Performance Plan

As another example, prior to January 1997, the Census Bureau had awarded only 3 percent of decennial contracts

to minority firms. Through aggressive management, the Bureau is now awarding 28 percent to minority firms.

As one result of these efforts, the Bureau negotiated ambitious subcontracting plans with its decennial large business contractors. These negotiated plans will secure significant percentages of the subcontracting awards for small

businesses (57 percent of all subcontract awards), disadvantaged businesses (42 percent of all subcontract

awards), and women-owned businesses (43 percent of all subcontract awards). These plans include overlap in the

awards among the three categories.

And the impacts? According to the Small Business Administration’s preliminary fiscal year 1999 annual procurement preference goaling achievements report, the Commerce Department awarded over 40 percent of its total

procurement dollars to small business. This performance – 40 percent of total procurement – was nearly double

the government-wide goal of 23 percent. The Department’s performance vis-a-vis small disadvantaged firms – 14

percent of total procurement – was nearly triple the government-wide goal of 5 percent. The Department’s performance also exceeded the government-wide goal for women-owned firms. These achievements were widely

recognized. The 1999 issue of the Hispanic Business Federal Resource Guide, for example, cited Commerce for

its minority procurement efforts and the 1998-1999 edition of the Hispanic Business Magazine rated the

Department’s efforts as an “A”.

Other efforts in this area include:

• The Commerce Diversity Council

In 1999, the Department evaluated the Diversity Council to identify opportunities for increasing its effectiveness. As a result of this study, a decision was made to restructure the Council and establish an Executive

Board. The Executive Board will be chaired by the Deputy Secretary and include senior career officials

from the bureaus. It will set overall policy and monitor implementation of Departmental and bureau

diversity policies and programs. The restructured Diversity Council will include 19 newly appointed members representative of all affinity groups at Commerce. The Department also plans to recruit a Diversity

Manager specifically to support the Diversity Council.

• Partnering with Minority Serving Institutions

The Department provides over a billion dollars in financial assistance annually. Approximately $268 million

is awarded to Institutions of Higher Education and, of that, about $23 million goes to Minority Serving

Institutions (MSIs)— Historically Black Colleges and Universities (HBCUs), Hispanic Serving Institutions,

and Tribal Colleges and Universities.

MSIs offer an extremely effective avenue for increasing minority representation in the workforce. A

measure of their importance may be seen in the following statistics. While 40 percent of African-American

students receive undergraduate degrees at HBCUs, 85 percent of African-American physicians and 75

percent of African-Americans who hold doctoral degrees all received their undergraduate degrees from

HBCUs.

The Department has taken several steps to expand partnership opportunities available to MSIs.

• In September 1999, the Department held a comprehensive New Opportunities Conference for MSIs. The

conference highlighted programs in which colleges and universities are currently participating, such as

financial assistance, technical assistance, and various cooperative arrangements that are reflected in

multiple Memoranda of Agreement. Attended by more than 250 MSI representatives, the conference

also sought input on ways of increasing the Department’s assistance to MSIs, provided the representatives networking opportunities with senior bureau and Department officials, and offered workshops –

ranging from financial assistance to partnership development and from preparing competitive applications to scientific research support opportunities and on how to access these and other Federal programs.
FY 2001 Annual Performance Plan 257

Management Challenges

• To help increase opportunities, the Department is encouraging all Departmental units to determine what

goals can be set for increasing financial assistance awards to, and other opportunities for, MSIs. The

Department will complete this goal setting early in calendar year 2000.

• To ensure continuity of effort, the Department is taking several actions. Among these: (a) each bureau

Chief Financial Officer will include the MSI goals as a part of his or her performance plan; (b) the Department will create an office or division for University Programs and Partnerships to coordinate our efforts, and

(c) Commerce officials will increase their speaking engagements at MSIs.

• Promoting Welfare-to-Work

Under the President’s Welfare-to-Work program, Secretary Daley committed the Department of Commerce to

hiring 4,180 individuals – nearly 40 percent of the total Federal goal of 10,680. By December 1999, Commerce had hired 5,870 individuals – slightly more than 140 percent of our commitment.

Last September, in a move that will support an additional 6,000 to 9,000 welfare-to-work hires by the

Department’s Bureau of the Census during 2000, the Department of Commerce and the Department of Labor

publicized the award of a $20 million grant for the Welfare-to-Work Census 2000 Employment Project.

Announcing the initiative were White House Chief of Staff John Podesta, Secretary Daley, Secretary of Labor

Alexis Herman, Census Director Kenneth Prewitt, and grantee Goodwill Industries International President/

CEO Fred Grandy. Through this project, Goodwill has been identifying as many as 12,000 Temporary Assistance to Needy Families (TANF) clients nationally. The grantee is also evaluating and helping as many of

these clients as possible to be “test-ready” and included in the pool of potential hires available to the 520 local

Census offices as enumerators, crew leaders, and clerks for the April-through-June Non-Response Follow-up

period. Those former recipients who successfully complete their Census jobs will then be directed by Goodwill to permanent jobs in the private or public sector.

The large majority of our Welfare-to-Work hires are temporary employees who are engaged in supporting

Census 2000. At the close of 1999, 285 — or nearly 5 percent — of our Welfare-to-Work hires were permanent employees among seven of our bureaus. The Department is establishing a goal to increase its number

of permanent Welfare-to-Work employees.

• Hispanic Employment Program

The January 2000 Census Bureau projections indicate that Hispanics will be the Nation’s largest minority

group by the year 2005 and, by 2010, will number more than 41 million. The significant increase in the

Hispanic population will continue to expand the absolute numbers and relative percentage of minorities in our

Nation’s workforce. Current data available through the Office of Personnel Management shows that Hispanics

are the most severely under-represented minority group in the Federal workforce. While persons of Hispanic

origin comprised 11.5 percent of the U.S. population as of June 1, 1999, Hispanics comprised only 6 percent

of Federal workers and 2.4 percent of the government’s senior executive employees.

On several levels, the Hispanic employment picture at the Department of Commerce falls short of representing the Hispanic population. Currently, Hispanics comprise 3.1 percent of the Department’s career employees. They comprise 2.5 percent of the Department’s GS-13 through GS-15 career employees and

2.9 percent of SES employees.

Secretary Daley issued an Hispanic Employment Plan in September 1999 to address this situation and build a

pool of qualified Hispanic candidates in the different disciplines represented at the Department. This Plan sets

forth a detailed strategy to address all aspects of human resource management, including increased outreach

to the Hispanic community, greater use of Hispanic resources to assist in recruitment, and expansion of

career development opportunities for those already working at the Department of Commerce.

Under the Plan, the Department has entered into a dialogue with several national Hispanic organizations,
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258 FY 2001 Annual Performance Plan

including: the Society of Hispanic Professional Engineers, the National Council of La Raza, the League of

United Latin American Citizens, the Society for the Advancement of Chicanos and Native Americans in

Science, the National Association of Hispanic Federal Executives, and the National Organization for Mexican-American rights.

As part of the Hispanic Employment Plan the Department will:

• Strengthen its relationships with Hispanic Serving Institutions that have programs of study related to the

Commerce mission;

• Revise its recruitment practices for Senior Executive Service (SES) positions to require that recruitment

plans identify appropriate Hispanic professional organizations to be informed of vacancy announcements;

• Restructure its Upward Mobility Program to provide for 20 percent of the vacancies advertized in targeted

positions being filled through this program;

• Enter into partnerships with at least five Hispanic Serving Institutions and five national Hispanic organizations to assist in reaching out to qualified candidates for inclusion in the applicant pools for positions

at all levels; and

• Host a teleconference to disseminate information on our mission, programs, and career opportunities.

• Candidate Development Program

In January 2000, the Department’s career SES comprised 304 employees. Of this group, 89.1 percent

were white. African-Americans represented the majority of the balance (6.9 percent), with Hispanics and

Asian Americans each comprising less than 2 percent, and American Indians/ Alaskan Natives comprising

less than 1⁄2 of 1 percent.

To improve the representation of minority groups in the SES, the Department is launching a revised

Candidate Development Program, which will focus on three areas. In the first area, recruitment and

outreach, the Department will extend notification to include over 150 minority and women organizations,

simplify application requirements, and introduce an on-line application system. In the second area,

selection, the bureaus will conduct initial screenings, while a panel of SES members will conduct second

round interviews, and the Department’s Executive Resource Board will approve final selections. In the

third area, development, Commerce SES employees will participate in a structured core training curriculum, which will include topics such as diversity, and participate in two rotational assignments – one outside

the employee’s area of expertise and one outside of the employee’s home bureau.

In late 1999, Secretary Daley issued a new critical element relating to diversity for inclusion in the FY 2000

performance plans for managers and supervisors. This element will help foster increased support for the

Department’s overall diversity initiative and ensure that it is implemented throughout Commerce.

• Other Activities

In other efforts to foster diversity, the Department:

• Revised the criteria used for its Honor Awards Program to help ensure that employees in all occupations and at all organizational levels may be recognized for their contributions to the Department. The

criteria were changed from broad descriptions of accomplishments to seven specific categories, i.e.,

customer service, employee development, personal and professional excellence, leadership, public

service or heroism, scientific and engineering achievements, and administrative and technical support.
FY 2001 Annual Performance Plan 259

Management Challenges

The Honor Awards Program has become more inclusive and representative of the Department’s

workforce as a result.

• Updated internal policies and procedures on racial and sexual harassment to address all forms of

harassment prohibited by Federal civil rights laws. The new procedures allow for management inquiries

distinct from the EEO process to determine if misconduct may have occurred that does not meet the

legal definition of harassment.

• Is broadening its Alternative Dispute Resolution (ADR) process so that it will become more widely used

in resolving Equal Employment Opportunity (EEO) complaints. The ADR process emphasizes selfdirected resolutions as early in the dispute as possible, thereby helping to minimize conflict and

promote productivity.

Managing Our Public Trust

The American citizenry has, through Congress, entrusted the Department with fulfilling its mission in a timely,

efficient, and effective manner. In 1993, with passage of the Government Performance and Results Act (GPRA),

Congress codified this trust by requiring each Federal agency to publish a continuing series of reports that articulate the agency’s mission and major goals, a five-year strategy directed toward achieving that mission, an annual

performance plan, and an annual assessment of progress in accomplishing the agency’s mission and goals. The

various requirements form a rigorous structure aimed at providing both Congress and the public with a complete

picture of how well agencies are meeting their intended purposes.

GPRA was designed with a phased approach and fiscal year 2000 will witness the first year in which all three

reports will be produced in a single year. For the Commerce Department, these include: (a) our second Strategic

Plan, covering the years 2000 through 2005; (b) our third Annual Performance Plan (APP), covering FY 2001; and

(c) our first Annual Program Performance Report (APPR), covering FY 1999.

To fully implement the spirit of GPRA, the Department faced the need for making significant changes such as

fostering the integration of its policy, planning and budgeting processes. In January 1997, there was little interaction between the Office of the Secretary and the bureaus before the bureaus submitted their budget requests to the

Department. Neither the Secretary nor the Deputy Secretary had early involvement in the process, which was

paper intensive and made little use of strategic planning and performance measures.

Secretary Daley accelerated automation of the budget process and opened it up to allow for systematic interaction

among key officials. Under his and the Deputy Secretary’s leadership, bureau heads became active participants in

making decisions that were focused on the merits of each budget proposal and its relevance in support for the

Secretary’s priorities. Information technology, procurement, facilities, security, and management staff were given

an early opportunity to review proposals and offer recommendations. The Department strengthened its overall APP

and integrated the development of the APP into the Department’s budget process.

The results were impressive. Senior bureau leadership complimented the FY 2000 budget process. The

Department’s FY 2000 budget was submitted to OMB both on time and on CD-ROM – the first one ever submitted

electronically. The integration of planning, budget, and prioritization was reflected in the Department’s budget

initiatives, each of which cut across multiple bureaus. OMB rated the FY 2000 APP as an example of “excellent

improvement” that should be a model for other agencies. Congressional staff awarded Commerce a score of 85 –

the highest score in government – for its FY 2000 APP. This success followed a year of intensive Department-wide

effort to identify realistic performance goals and ways to measure and verify progress against them.

Refined and reshaped, our FY 2000 APP decreased the number of performance measures by 63 percent, thereby

focusing on the most important activities. Outcome-oriented measures increased from 22 percent to 56 percent,

while more than 170 process measures were dropped, thus allowing a more accurate gauge of impact and results.

All of these accomplishments allowed the Department to put forward its collective best thinking and formulate sound

recommendations for the use of public funds. These efforts have continued with the formulation of the Department’s
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260 FY 2001 Annual Performance Plan

FY 2001 budget request, its FY 2000 GPRA documents, and the increasingly sound operation of this cabinet

agency. To exact further benefit from these efforts, the Department is now taking steps to ensure that the data to be

used in measuring performance is accurate, complete, and reliable.

As a further measure of our commitment to GPRA, the Department continues to serve as the host agency for the

National Academy of Public Administration’s GPRA Performance Consortium. This consortium, comprising 30

Federal Departments and agencies, shares information on “best practices.” As host agency, the Department plays

a major coordinating role to ensure that all interested parties, in both the Executive and Legislative branches, benefit

from the Consortium’s efforts.

During the past year, the Department has made significant progress in managing its programs and resources to

ensure the timely, efficient, and effective delivery of services. Some of our more notable achievements include:

• NOAA Fleet Modernization

The National Oceanic and Atmospheric Administration’s (NOAA) fleet modernization was first identified as

a material weakness in FY 1990. The material weakness highlighted concerns that: (a) NOAA’s fleet was

aging, with many ships in need of extensive maintenance and replacement, and (b) the existing policy of

solely relying on in-house vessels was not necessarily the most efficient approach to meeting NOAA’s data

needs. We are pleased to report that the NOAA fleet modernization has been dropped from the list of

material weaknesses. This success is due to the Department’s continued focus on management, NOAA’s

improvements to its oceanographic and hydrographic ship-related data collection capability, and the

impending approval for the first of four new fisheries ships.

The Department worked closely with NOAA to identify and pursue alternatives. Our program for meeting

NOAA’s oceanographic and hydrographic research now emphasizes a mix of charters, cooperative use of

university ships, contracts for data collection, and continued operation of a limited number of NOAA

vessels. Based on this broader supply of days-at-sea, we have also been able to downsize NOAA’s shore

support infrastructure to further reduce costs.

We are continuing to work aggressively with NOAA in seeking the least expensive and most efficient

means for meeting the agency’s need for fisheries research vessels. NOAA prepared a detailed data

acquisition plan, which was subjected to thorough review. Funding for the first of our new fisheries research ships was included in the FY 2000 budget. We have worked diligently to coordinate our design

requirements with shipyards, design agents, and partnering organizations, such as the University National

Oceanographic Laboratory System.

• National Weather Service Modernization

The Department made significant strides in modernizing the National Weather Service (NWS). A critical

factor in the modernization effort was the successful implementation of the Advanced Weather Interactive

Processing System (AWIPS) software. This software provides the capability to display satellite imagery,

radar data, surface observations, and forecast data at a single workstation.

Secretary Daley met a long-standing Congressional mandate that AWIPS be deployed to all 152 NWS

sites and completed within a $550 million cap. The operational test and evaluation of AWIPS that was

completed in June 1999 uncovered several software deficiencies that had to be corrected before commissioning (i.e., before AWIPS can be used as the official system). NWS believes that the corrected software

will enable the commissioning of AWIPS and the decommissioning of the older systems. This achievement

meets a central concern raised by the IG in his original “top ten” list, issued in March 1997.

The Department is continuing to enhance the AWIPS software and expects to continue to improve our

forecasts by issuing more comprehensive data and by providing increasingly extended lead times on

warnings of severe weather.
FY 2001 Annual Performance Plan 261

Management Challenges

• Providing High Quality Grant Assistance

The Department strengthened its oversight of the Department’s financial assistance programs to ensure

that all applicable guidelines are followed in the award and use of funds. A 1997 review of our programs

by the Inspector General found that the Office of the Secretary and six bureaus administered 72 financial

assistance programs that provided approximately $1 billion annually to State and local governments,

educational institutions, other organizations, and individuals. Thirty-three, or nearly half of our financial

assistance programs, are classified as “full discretion,” thus providing the Department maximum flexibility in

their administration. These 33 programs provided more than 1,700 awards and $802 million – or approximately 80 percent – of Commerce’s financial assistance outlays in FY 1997. The Inspector General is

continuing his review of each of these 33 programs, with 22 reviews completed to date. As a result of these

reviews, the Department has

(a) expanded proposal solicitation efforts,

(b) included outside participants as proposal reviewers to increase objectivity in the selection

process, and

(c) strengthened documentation justifications for deviations from review panel recommendations.

As a further effort to promote efficient and effective use of resources, the Department has been working

with NOAA to increase the number of awards granted competitively through NOAA’s discretionary funding

programs and to implement a rigorous solicitation process.

• Monitoring the Department’s Special Agreements

The Department has strengthened its oversight of Interagency and Other Special Agreements. These

agreements encompass a wide variety of reimbursable activities, obligations to acquire goods or services

from other parties, or commit the Department or its bureaus to joint project agreements. A review by the

Inspector General found that the Department had more than 4,700 of these agreements, involving more

than $1.1 billion in FY 1997. We are preparing formal policies and procedures that will specify the acceptable types of government-wide and Department-wide agreements that may be executed, the minimum

requirements for consummating agreements, standard language for inclusion, and orderly review and

approval policies.

• Field Office Streamlining

The Department reduced the number of domestic field offices by 20 percent since the fourth quarter of FY

1998.

For several decades, Commerce has maintained a field office presence in all 50 states to serve the needs

of its customers. Although there have been mission changes, various reorganizations, and significant

advances in technology, the Department’s field structure had been little changed in more than two decades.

To improve efficiency and reduce costs, the Department worked with those of its bureaus which have a

major field presence to review opportunities for streamlining and improving service to our customers. The

Department considered options such as consolidation, collocation, cross-functional teaming, and crossservicing as a means to achieving greater efficiency and effectiveness. Two other pertinent initiatives were

also pursued: modernization of the National Weather Service and revising the Department’s procedures

for renewing field office leases. Under the new procedures, field office leases were not to be renewed

absent a mission critical justification.

From the base of 747, the number of domestic field offices was reduced to a total of 591. In addition,

nearly 100 domestic field offices had leases that are due to expire by the end of 2000. Through the close of

calendar year 1999, the Department reviewed, and conditionally approved, 44 field office leases. To support
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262 FY 2001 Annual Performance Plan

potential future cost savings, most of the lease renewals include options such as month-to-month renewals

or 30-day non-penalty early termination provisions which may be exercised upon securing alternative

quarters that are more consonant with the new streamlining policy. Each of the field offices with these

provisions has been charged with identifying and exercising prospective cost-saving and streamlining

opportunities. As a result, the Department anticipates further reductions in costs over the coming year.

• Facilities Management

The Department strengthened its oversight of bureau facilities acquisition and management. As part of

our new process, the Office of the Secretary obtains firsthand knowledge or conducts on-site visits of

major space requirements and their relationship to program mission. To improve our overall management

oversight, we coordinated our reviews with the Inspector General.

Our recent oversight activities have included providing technical real property guidance concerning the

newly reorganized NOAA Headquarters Facilities Office, NOAA line offices, and the Administrative Support Centers, which NOAA operates in support of the Department’s field structure. We provided oversight

and coordination of the real property needs to Census on its timely acquisition of 520 local Census offices,

and other field office requirements. We have continued to provide assistance to PTO on its efforts to

prepare for lease award on its solicitation for expansion/consolidation of space. Forward movement on

the PTO award, however, has been on-hold pending a judicial ruling on a suit which took issue with the

environmental impact assessment of the prospective relocation. This ruling is expected shortly.

• Security

Secretary Daley made security, and specifically the reduction of the risk of security threats, one of his top

priorities. In July 1997, he commissioned a review of the Department’s security operations by the interagency Security Policy Board (SPB). To date, the Department has implemented 62 of 66 (94 percent) of

the SPB’s recommendations. Accomplishments on key recommendations include: (a) reducing the

number of security clearances by 40 percent to support efforts in limiting access to classified information;

(b) making progress in implementing an automated program, the Security Information Management

System (SIMS), which is currently tracking over 45,000 classified documents at the Secret level and

above; (c) implementing a counter-intelligence program to improve protection of our sensitive but unclassified information from external threats; (d) establishing an emergency preparedness program to ensure the

continuity of our operations in the event of a catastrophe; and (e) consolidating most of the Department’s

security personnel and assets. The Department will continue to enhance security operations by improving

the guard force at the Herbert C. Hoover building, standardizing security procedures, enhancing information technology security, and implementing direct delivery of security equipment and services to our

overseas offices.

• Converting PTO to a Performance-Based Organization

The Department and PTO are working diligently to achieve the conversion of PTO to a Performance-Based

Organization (PBO) by the end of March 2000. As a PBO, the PTO is subject to policy direction by the

Secretary but will be expected to increase its efficiency as a result of being given independent control over

budget allocations and expenditures, personnel decisions and processes, procurements, printing, and other

administrative and management functions. The conversion to PBO status, long-sought by PTO as an

innovative way to improve its efficiency, was approved by Congress in November with passage of the

Patent and Trademark Office Efficiency Act.
FY 2001 Annual Performance Plan 263

Management Challenges

• National Technical Information Service

The Department’s National Technical Information Service supports itself through fees charged for its products

and services. Between FYs 1995 and 1998, the agency incurred a cumulative loss of $4.8 million, which

nearly exhausted its retained earnings.

Through the past year, the Department continued to address NTIS’ deteriorating financial situation by

supporting and supervising an aggressive cost-cutting program at the agency. These cost reduction

measures included assisting in the transfer of 46 NTIS staff members to positions elsewhere in Commerce during the last quarter of FY 1999, consolidating office space, eliminating performance awards, and

restricting travel. Although these and other urgent measures permitted NTIS to close FY 1999 with a

balance of some $650,000, instead of a projected deficit, NTIS’ financial position remains precarious and

its mission and structure outdated.

In late 1999, to address this long-term issue, the Department submitted draft legislation that would close

NTIS and transfer selected functions to the Library of Congress. We testified on our proposal before the

House and Senate in September and October, respectively. We are continuing a dialogue with the Library

of Congress and other interested agencies and stakeholders on the details of the Department’s proposal.

Conclusion

The Department is proud of its accomplishments and we look forward to building on our record of implementing

solid improvements. Accountability, open reporting to the taxpayer, and emphasizing continuous improvement

provide significant motivation for optimal resource use. We have relied on, and will continue to use, the management tools provided by legislation – including the Government Performance and Results Act, the Chief Financial

Officers Act, the Clinger-Cohen Act, and other measures passed over the past decade. We continue to work to

resolve all of the Inspector General’s original “top ten” management concerns and to further enhance our record of

management improvements that facilitate full accountability and maximum performance.
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264 FY 2001 Annual Performance Plan
FY 2001 Annual Performance Plan 249

Management Challenges

Overview

During his tenure, Secretary Daley has made “effective, efficient management” a critical goal for the Department.

Under Secretary Daley’s leadership, performance outcomes have become the key measures for assessing the

Department’s progress in addressing management and program challenges.

As a direct result of the Secretary’s emphasis on accountability and providing the taxpayer due diligence in the use

of resources, the Department has strengthened intramural communications, implemented strategic planning, and

integrated policy-making into the budget process. The Commerce team is focused on full mission accomplishment,

the elimination of overlap, and timely delivery of high-quality services.

The Secretary’s management philosophy and its benefits are fully consonant with the spirit of the Government

Performance and Results Act (GPRA) of 1993. GPRA is directed at providing both Congress and the public with a

complete picture of how well agencies are meeting their intended purposes and a rigorous commitment to continually improving performance. As a result of the Secretary’s leadership and the Department’s aggressive implementation of GPRA, many long-standing management and programmatic challenges have been resolved or are very near

resolution. This progress and the continual emphasis on requiring each program to justify its contribution each day

have introduced a new dynamic — a widely-shared spirit to make the best use of our resources in serving the

American people.

Highlights of our accomplishments from the past year include the following:

• The Department has made great strides in preparing for the 2000 Census. Work is near completion on

outreach efforts, including a publicity campaign, printing Census questionnaires in multiple languages, and

aggressively seeking to hire Welfare-to-Work individuals to help administer the Census at 520 local level

offices throughout the country.

• The Department has continued to improve its financial management program, and anticipates obtaining an

unqualified opinion on its consolidated balance sheet for fiscal year 1999. The number of material weaknesses and reportable conditions continue to decline. For example, the Department’s efforts in identifying

alternatives for obtaining hydrographic and marine data have led to the NOAA fleet modernization being

dropped as a material weekness.

• The Department fully and successfully met the Y2K challenge — on all of its 473 mission-critical and 693

non-mission-critical systems.

• DOC has led the Federal government in providing an avenue for increasing the number and value of

contracts for small, minority, and women-owned businesses through its new, government-wide Commerce

Information Technology Solutions (COMMITS) program.

• The Department is delivering on its ambitious commitment to foster diversity – both inside Commerce and

among our customers – as a means of nourishing our Nation’s strength.

• Significant progress has been made in meeting the objectives of the Government Performance and

Results Act by greatly improving the utility of our Annual Performance Plan – a gain that was recognized

by both the Office of Management and Budget and Congress — and Congressional staff awarded Commerce one of the highest scores in government in 1999.

• We achieved a major milestone in our weather forecast capabilities by installing advanced workstations in

the National Weather Service.

The Commerce Management Strategy: Our Model for

Challenge and Success
Management Challenges

250 FY 2001 Annual Performance Plan

• We have improved oversight of our financial assistance programs and our facilities acquisition and management to ensure that the funds placed in our charge are well spent.

• The Department consolidated and strengthened security operations to ensure complete protection of our

employees, property, and data.

2000 Decennial Census

Our top management priority at the Department of Commerce continues to be to ensure that the 2000 Census is

managed effectively and efficiently. Over the past 21⁄2 years, the Office of Inspector General (OIG) has raised

concerns about the Census Bureau’s readiness to undertake this enormous task. At Secretary Daley’s direction,

the Department has exerted a great deal of effort to ensure that the Decennial is well-managed and to address the

Inspector General’s concerns.

As part of its effort to boost initial response to the Census form, the Bureau designed a major publicity campaign

that includes advertising in 17 different languages. The campaign will proceed in three phases, with the first phase

(awareness) beginning last November. Questionnaires are printed in six languages and language guides are

provided in over 40 languages. Questionnaire Assistance Centers will be established in local communities with over

15,000 paid assistants, many of whom are bilingual. Indigenous enumerators from local neighborhoods are being

hired at competitive wages.

Our outreach efforts include our sponsoring the Census 2000 Partnership program, which is drawing on local and

State governments, non-governmental organizations, and businesses to promote full participation in the census, help

dispel myths, and explain that the answers given to the Census Bureau will be held confidential. The Bureau has

also designed special census methods and procedures to improve cooperation and enumeration in hard-to-enumerate areas. Our procedures are giving the regional census centers the flexibility to target specific blocks and neighborhoods for coverage improvement.

The Bureau developed action plans for the 520 local Census offices to provide managers with effective strategies

for conducting a complete and fair enumeration of all communities under their jurisdiction. These plans will be

based on a detailed study of each community, identifying those that are hard-to-enumerate and recommending the

specific tools that should be used to improve coverage. Once these operations are complete, the Census Bureau

will use modern statistical sampling methods to conduct an Accuracy and Coverage Evaluation Survey, which will be

used to produce more accurate numbers for all purposes other than apportionment.

Most elements of our plans for the 2000 decennial census were tested and evaluated in the Census 2000 Dress

Rehearsal. This past August, the Department released a final report providing the results and recommendations

from more than 40 evaluation studies conducted during the Dress Rehearsal. These evaluations indicate that,

overall, the Dress Rehearsal was successful. Population numbers were produced on time, and the numbers,

including data adjusted using modern statistical methods, compared favorably with independent benchmarks. In

those operations where problems were identified, the Census Bureau modified plans for Census 2000 accordingly.

During the past three months, the Census Bureau completed the address label tape for use in addressing and

labeling questionnaires for nearly 120 million housing units throughout the country. This major milestone was

achieved with help from nearly half of the 39,000 governmental units in the United States that are participating in the

Local Update of Census Addresses program. Moreover, the participating units encompass 85 percent of all households in the United States. We are continuing to update the Census 2000 address list periodically as we find new

housing units, identify corrections, and add new construction.

All other key operations for Census 2000 are also on schedule. All major contracts have been awarded and the

contractors are in place. The four data capture centers and all 520 temporary local Census offices are open.

Contracts for printing the various questionnaires were awarded last March and the operation to print, address,

assemble, and ship the census forms to the U.S. Postal Service or other Census Bureau locations began as

scheduled in July 1999.
FY 2001 Annual Performance Plan 251

Management Challenges

Department-wide Financial Management

We are extremely confident that Commerce will receive an unqualified (or “clean”) audit opinion on its Consolidated

Financial Statement for FY 1999, though the results will not be known with certainty until one month after release of

this Annual Performance Plan. With the achievement of an unqualified audit opinion, we will have attained one of

our major management milestones — achieving a sound financial management environment that complies with

Federal laws and regulations and provides Commerce executives with timely, accurate financial information.

Preliminary data also indicate that all major bureaus will receive unqualified audit opinions on each of their five

principal statements — Consolidated Balance Sheet, Consolidated Statement of Net Cost, Consolidated Statement

of Changes in Net Position, Combined Statement of Budgetary Resources, and Combined Statement of Financing.

We anticipate that our auditors will find a significant reduction in the number of reportable conditions and material

weaknesses in FY 1999 at the Department-level and bureau level. Under Secretary Daley’s leadership, the

Department has continued to reduce the number of findings identified by the auditors each year at the bureau level

— from 37 material weaknesses and 39 reportable conditions in FY 1996 to 12 material weaknesses and 26

reportable conditions in FY 1998.

Under provisions of the Government Management and Reform Act (GMRA) of 1994, the Department will complete its

first Accountability Report by March 1, 2000. The Accountability Report streamlines reporting requirements of the

Department by consolidating various reports (Consolidated Financial Statements, FMFIA, etc) required by Congress into a single report. The Accountability Report will provide a comprehensive picture of the Department by

including financial as well as performance information. Integrating this information will enable the Department to

accomplish performance-based management.

The Department continues to make significant progress in implementing the Commerce Administrative Management

System (CAMS) – a single, integrated financial management system. The system includes a Core Financial

System interfaced with administrative systems for small purchases, bankcards and time reporting/labor cost distribution collectively called Core CAMS. Core CAMS was successfully deployed at Census during FY 1998. An

independent verification and validation study of the system implemented at Census concluded that it met departmental requirements and was as good as or better than other financial management systems available on the market.

Implementation of core CAMS has now been completed at EDA for its financial assistance programs, and implementation is well underway at NOAA. NIST will complete its implementation planning for core CAMS in FY 2000,

and will begin system deployment in FY 2001.

During FY 1999, we filled all remaining chief financial officer vacancies in the bureaus, specifically, the Economic

Development Administration (EDA), the International Trade Administration (ITA), and the Patent and Trademark

Office (PTO). We continued to strengthen our financial policies and procedures and our automated systems to

ensure that they support the generation of reliable and accurate financial data. During this period, we published the

Department’s Financial Management Handbooks on our homepage and held several conferences with our bureau

financial officials to ensure complete understanding and agreement with our financial management objectives and

approaches.

Under the Secretary’s direction, the Department continues to place an extremely high priority on its financial

statements and accountability for all assets. The Department’s Chief Financial Officer, who controls 50 percent of

bureau CFO performance evaluations, meets regularly with all bureau CFOs to review progress on financial statements, audit issues, and other financial matters. The Department’s “CFO Council” meets monthly and is one of the

primary forums in the Department for discussion of management issues, including human resources, budget,

procurement, and information technology systems, as well as financial accountability issues.
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252 FY 2001 Annual Performance Plan

Information Technology Investments

The Department successfully met the Y2K challenge. All of the Department’s systems functioned properly and, as a

result, we shut down our Emergency Operations Center earlier than had been planned. A few extremely minor

aberrations occurred; these involved only non-mission critical systems and were resolved within a few hours.

In September, the Department completed Y2K compliance for 100 percent of its 473 mission-critical systems. By

December 22nd, all of the Department completed Y2K compliance for all of its 693 non-mission critical systems. As

a result of our efforts, we completed our Department-level business continuity and contingency plans, and ensured

that our telecommunications, building infrastructure, and data exchange systems would be ready. To ensure a

smooth transition to the year 2000, we had approximately 50 staff on hand on New Year’s Eve monitoring systems

transition.

The Office of the CIO worked closely with bureau management over the last year to monitor their progress on Y2K

remediation, ensure that their programs adequately addressed all necessary systems and contingencies, that

business continuity plans existed for all business areas, and that work was completed on schedule.

As part of its Y2K outreach program, Commerce provided domestic Y2K technical assistance to hundreds of

thousands of U.S. small and medium-sized businesses through a Y2K Help Center for Small Business and training

through 1,600 workshops offered by the Department’s Manufacturing Extension Program. MEP developed a customer-friendly Y2K Self Help Tool on CD-ROM, available in 11 languages, to help small and medium-sized businesses with a variety of business needs potentially affected by Y2K – systems inventory, business criticality

assessment, remediation planning and management and contingency planning. Well over 600,000 copies of this

tool were distributed in the U.S. and abroad. In addition, more than 6,000 attendees participated in 40 international

Y2K conferences and events that the Department and its bureaus organized in 22 trading partner countries.

In 1999, the Department worked diligently to complete its effort at meeting the spirit of the Clinger-Cohen Act.

Among other provisions, this Act called for agencies to oversee effective information technology planning and

expenditures. Commerce’s Chief Information Office has continued to implement several enhancements. These

include: (a) consolidation – to achieve gains in cost and service quality, (b) standards – to promote commonality

that can reduce support costs and avoid reinventing solutions to problems already solved, (c) new technologies – to

achieve cost reductions by coordinating their exploration and implementation, and (d) common services – to realize

savings by using common software and support methods for such activities as financial management, grants

management, forms, and Web sites.

During the past year, we strengthened our information technology capital planning. Under the Department’s CIO’s

leadership, each bureau conducted a self-assessment and examined best practices in light of its own information

technology needs. We used the findings to improve our selection, control, and evaluation of prospective information

technology investments. Using a Department-wide group of information technology officials, we established a

rigorous and transparent process by which every proposal is evaluated on the basis of its expected contributions,

risks, and costs. Projects that received a low rating were not supported in our budget process. The results improved the Department’s overall planning and show every indication of translating into significant gains in the

accuracy of our cost and schedule projections.

The Department supplemented its capital planning and review process with two formal mechanisms for managing

our information technology acquisitions. First, we require a Delegation of Procurement Authority for every information technology contract over $10 million. Under the authority of this delegation, our Chief Information Officer must

certify that the business need exists. Secondly, the bureaus must submit business case documentation for major

information technology acquisitions. The documentation must show that project management metrics and controls

are in place, viable alternatives have been evaluated, and that the acquisition supports the bureau’s information

technology architecture.
FY 2001 Annual Performance Plan 253

Management Challenges

The Department has developed a Critical Infrastructure Protection (CIP) program with help from the Critical Infrastructure Assurance Office. Through this program, the Department identified 31 infrastructure systems that met the

requirements — such as national security, national economic security, and public health and safety — of Presidential Decision Directive 63 (PDD-63). We supplemented this process with an independent validation and verification

that identified and ranked in priority order the top 25 percent of the Department’s assets. Based on these reviews,

we submitted a critical infrastructure protection plan and budget to the Office of Management and Budget.

Secretary Daley is committed to creating a truly digital department at Commerce. When he arrived in January

1997, the Department was behind the private sector in using information technology services. There was no robust

infrastructure to support users, an overall inability to share and exchange data among the bureaus and the Office of

the Secretary, an absence of administrative support systems, and an inability to communicate securely among

employees located throughout the world.

Information technology functions throughout the Department were reorganized under the recently established

position of Chief Information Officer, who reports to the Secretary. Information technology representatives from

every bureau are brought together regularly to participate in rigorous reviews aimed at effectively coordinating

information technology planning, seeking synergy, identifying resource needs, and monitoring progress of each of

the Department’s major systems.

DOC launched a “Digital Department” initiative with the hiring of a Digital Department Program Director in the

summer of 1999. Within the constraints of available resources, this initiative will move Commerce from paperbased administrative systems and transactions to on-line interactions with customers and employees, similar to the

advances increasingly found in the private sector. Both customers and employees will benefit from secure, accelerated, and more productive interactions in which the information flow from beginning to end of a process will be

seamless and in the medium most convenient to the needs of individual users.

By the close of calendar year 1999, the Department established a secure Intranet for pilot testing in the Office of

the Secretary which, among other services, provides access to several downloadable forms. We also introduced

an automated Time and Attendance Reporting System which, also, is currently in pilot mode. Automation of additional applications, such as security requests and requisitions, will be introduced as budget becomes available.

By the close of calendar year 2000, our Digital Department will provide secure Intranet services to all employees

throughout the Washington, D.C. metropolitan area and add additional administrative processes (specifically, an

automated hiring system and the Department’s information technology review system, and, if the budget permits,

travel and inventory systems). The Department’s public customers will have access to an Internet site organized

from the customer’s perspective that will facilitate access to, and analysis of, all information on a specific subject in

a one-stop electronic visit.

By the close of calendar year 2001, our Digital Department will provide secure Intranet access to all Commerce

employees throughout the world and significantly expand the complement of administrative processes available

electronically. The network in the Office of the Secretary will have been upgraded to deliver reliable service and

meet capacity requirements and employees will have standard, well-supported, state-of-the-art desktop systems.

By 2002, the implementation goals of the Digital Department will be realized – most internal processes at Commerce

will be web-based and make maximum use of the Intranet. Key external processes of the Department will be

electronic and make maximum use of the Internet for customer interfaces such as data collection and dissemination

and business programs will continue to be re-engineered and redesigned to take advantage of new technological

capabilities to more efficiently and effectively provide our products and services.

The following illustrations exemplify some of the benefits of our Digital Department initiative:

• Commerce Opportunities On-Line (COOL) is an automated, web-based vacancy announcement, application, and referral system. Through COOL, any potentially interested applicant may review open vacancy
Management Challenges

254 FY 2001 Annual Performance Plan

announcements, sorted to meet his or her personal preferences, and submit an on-line application. With

use of an ID and password, applicants can create, update, save, and submit applications with complete

security. The system is user-friendly and is available 24 hours a day, 7 days a week. The COOL approach

reduces the time it takes an applicant to apply for a position because the system eliminates the need to

prepare lengthy written answers to identified knowledge, skills and abilities (KSAs) required for the position.

Instead, the same information is obtained by providing yes or no answers to a series of specially prepared

questions. COOL benefits the Department’s managers as well, by: (a) greatly reducing the time needed to

rank applicants against the KSAs for a specific position, (b) permitting on-line issuance of referral lists of

eligible candidates to the selecting official, (c) facilitating e-mail communication between the selecting

official and applicants, (d) making selection/non-selection designations on-line, and (e) allowing the selecting official to automatically notify the Human Resource Office when he or she has completed the selection

process.

This innovative system broadens the Department’s distribution of vacancy announcements to anyone who

has access to the web and also reduces time lag – both in disseminating announcements to applicants as

well as by providing applicants an on-line avenue for submission of their applications. These features

greatly enhance the Department’s potential for increasing the number of external candidates and for

securing an applicant pool that more fully reflects the Nation’s population. COOL was tested as a pilot

program at the Department’s Eastern Administrative Support Center, NOAA, and in select organizations of

the Office of the Secretary. COOL will be implemented at the Census Bureau in March and subsequently

at the Department’s other bureaus throughout FY 2000.

• The Department’s Minority Business Development Agency conceived and developed an Internet-based

business resource locator system to enable minority businesses and business development practitioners to

search for and locate business assistance institutions interactively on a map. The system addresses the

critical need of providing minority businesses throughout the Nation with a fast and easy to use mechanism

for finding public, private, educational, and nonprofit business development resources in their local area.

• NOAA re-engineered its shoreline mapping techniques to enhance the accuracy of analyses of shoreline

data extracted from different types of synthetic aperture radar. The advances included development of

three-dimensional approaches to shoreline extraction using synthetic aperture radar, lidar, and digital

photogrammetry, and improved application of image understanding methodologies such as automatic

feature extraction and sub-pixel analysis of hyperspectral data. These advances will enable NOAA to

deliver more accurate and current nautical charts to professional mariners and to the port authorities

responsible for managing port facilities.

• The Office of the Secretary developed HANS (Honor Awards Nomination System) – a web-based and reengineered system that streamlined the process of nominating, reviewing, and awarding the Department’s

gold and silver medals. HANS allows a manager – using an Internet browser and operating from a main

menu – to enter, edit, review, and approve nominations on-line. HANS also tallies voting results automatically and creates statistical reports. Prior to HANS, the system was paper-based, time-consuming, and

involved the physical manipulation of a huge volume of hard copy forms that filled several large boxes.

Procurement Innovations

The Department created the first government-wide acquisition contract (GWAC) reserved specifically for small and

disadvantaged businesses – the Commerce Information Technology Solutions (COMMITS). This innovative program

will award some $1.5 billion in information technology contracts to small businesses over the next five years.

COMMITS provides an opportunity for small, minority, and women-owned firms to tap the $45 billion the government spends annually on information technology. According to a recent Federal Sources Report, large companies

now receive a 71 percent market share of Federal information technology dollars. This is up from 57 percent in

1995. During the same period, market share for small disadvantaged business went from 30 percent to 15 percent.
FY 2001 Annual Performance Plan 255

Management Challenges

Commerce created COMMITS to reverse this trend. As a result of widespread publicity, over 1,000 firms participated

in a national competition in which, ultimately, 29 firms were selected. On October 6, 1999, Deputy Secretary Robert

L. Mallett briefed the President’s Management Council on COMMITS, and a formal kickoff of the program was held in

November.

All tasks placed through COMMITS are fully competed and, through the end of calendar year 1999, an average of

10 contractors responded to each offering. Average acquisition cycle time was 17 calendar days.

With authorization from the Office of Management and Budget, DOC is offering COMMITS as an avenue for other

Federal agencies to access capable firms that have been vetted and approved by Commerce. During the first two

months of the program, two agencies – the Environmental Protection Agency and the Equal Employment Opportunity Commission – used the program. Several other agencies – including the Departments of Agriculture, Housing

and Urban Development, Interior, Labor, and State – are actively exploring use of COMMITS to help meet their

information technology needs.

In other areas, the Department took several actions to improve acquisition management performance. We

initiated the Commerce Acquisition Career Management Program. This program provides central funding and has

trained 100 procurement personnel in operational procedures throughout the Department’s bureaus. We prepared

and disseminated the Customer’s Handbook to Procurement, a primer to support efficient procurement practices

by identifying roles and responsibilities, summarizing the procurement process, and setting lead times for various

types of procurement actions. We are implementing procurement automation software for use throughout the

Department. The software – Commerce Standards Acquisition and Report System (CSTARS) – will provide timely

and relevant information that will support informed management decisions and facilitate the accomplishment of

program missions through improved acquisition support. To broaden our focus on best practices, we are participating in the government-wide Procurement Executives Council Acquisition Workforce Committee and its steering

committee. We helped launch the Government-wide Acquisition Management Intern Program and will be a

sponsor of the first class of interns in FY 2000. This cross-government program will offer two-year internships with

rotational assignments and 320 hours of training to develop skills and competencies. This training will help provide

the leadership to replace the expected future government-wide retirement bulge of procurement executives and

effectively administer the requirements of recent procurement reform.

Strength through Diversity

“Diversity transcends race, gender, religion, age, culture, disability, or sexual orientation” — reads a sign in the

Commerce Department’s library. That sign is a reflection of significant changes occurring in the American workplace and the Nation’s population.

One management maxim holds that employers who do well in addressing diversity issues – race, gender, religion,

age, culture, disability, and sexual orientation – are the ones that will excel in the years to come. Again, with a

broadening of the picture, it is clear that a society which does likewise will also succeed in the years to come. One

need only recall a simple statistic cited by Vice President Gore – that small business contributes over 60 percent of

the new jobs in our economy – to realize that the future of our Nation’s economy and our Nation’s welfare will be

highly dependent upon our embracing of diversity.

In recognition of these benefits, the Commerce Department has taken several steps to champion diversity – both

within the Department and in serving its customers. As described above, Commerce has taken a leadership role

in enhancing information technology contracting opportunities for small, minority, and women-owned firms through

the innovative COMMITS program.

In a parallel effort, the Department hosted a meeting with executives from Commerce’s top contractors to discuss

the importance of increasing opportunities with small, minority, and women-owned firms. As a result, prime

contractors included small business subcontracting goals in the performance plans of their project managers and

identified additional small businesses for subcontracting opportunities.
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256 FY 2001 Annual Performance Plan

As another example, prior to January 1997, the Census Bureau had awarded only 3 percent of decennial contracts

to minority firms. Through aggressive management, the Bureau is now awarding 28 percent to minority firms.

As one result of these efforts, the Bureau negotiated ambitious subcontracting plans with its decennial large business contractors. These negotiated plans will secure significant percentages of the subcontracting awards for small

businesses (57 percent of all subcontract awards), disadvantaged businesses (42 percent of all subcontract

awards), and women-owned businesses (43 percent of all subcontract awards). These plans include overlap in the

awards among the three categories.

And the impacts? According to the Small Business Administration’s preliminary fiscal year 1999 annual procurement preference goaling achievements report, the Commerce Department awarded over 40 percent of its total

procurement dollars to small business. This performance – 40 percent of total procurement – was nearly double

the government-wide goal of 23 percent. The Department’s performance vis-a-vis small disadvantaged firms – 14

percent of total procurement – was nearly triple the government-wide goal of 5 percent. The Department’s performance also exceeded the government-wide goal for women-owned firms. These achievements were widely

recognized. The 1999 issue of the Hispanic Business Federal Resource Guide, for example, cited Commerce for

its minority procurement efforts and the 1998-1999 edition of the Hispanic Business Magazine rated the

Department’s efforts as an “A”.

Other efforts in this area include:

• The Commerce Diversity Council

In 1999, the Department evaluated the Diversity Council to identify opportunities for increasing its effectiveness. As a result of this study, a decision was made to restructure the Council and establish an Executive

Board. The Executive Board will be chaired by the Deputy Secretary and include senior career officials

from the bureaus. It will set overall policy and monitor implementation of Departmental and bureau

diversity policies and programs. The restructured Diversity Council will include 19 newly appointed members representative of all affinity groups at Commerce. The Department also plans to recruit a Diversity

Manager specifically to support the Diversity Council.

• Partnering with Minority Serving Institutions

The Department provides over a billion dollars in financial assistance annually. Approximately $268 million

is awarded to Institutions of Higher Education and, of that, about $23 million goes to Minority Serving

Institutions (MSIs)— Historically Black Colleges and Universities (HBCUs), Hispanic Serving Institutions,

and Tribal Colleges and Universities.

MSIs offer an extremely effective avenue for increasing minority representation in the workforce. A

measure of their importance may be seen in the following statistics. While 40 percent of African-American

students receive undergraduate degrees at HBCUs, 85 percent of African-American physicians and 75

percent of African-Americans who hold doctoral degrees all received their undergraduate degrees from

HBCUs.

The Department has taken several steps to expand partnership opportunities available to MSIs.

• In September 1999, the Department held a comprehensive New Opportunities Conference for MSIs. The

conference highlighted programs in which colleges and universities are currently participating, such as

financial assistance, technical assistance, and various cooperative arrangements that are reflected in

multiple Memoranda of Agreement. Attended by more than 250 MSI representatives, the conference

also sought input on ways of increasing the Department’s assistance to MSIs, provided the representatives networking opportunities with senior bureau and Department officials, and offered workshops –

ranging from financial assistance to partnership development and from preparing competitive applications to scientific research support opportunities and on how to access these and other Federal programs.
FY 2001 Annual Performance Plan 257

Management Challenges

• To help increase opportunities, the Department is encouraging all Departmental units to determine what

goals can be set for increasing financial assistance awards to, and other opportunities for, MSIs. The

Department will complete this goal setting early in calendar year 2000.

• To ensure continuity of effort, the Department is taking several actions. Among these: (a) each bureau

Chief Financial Officer will include the MSI goals as a part of his or her performance plan; (b) the Department will create an office or division for University Programs and Partnerships to coordinate our efforts, and

(c) Commerce officials will increase their speaking engagements at MSIs.

• Promoting Welfare-to-Work

Under the President’s Welfare-to-Work program, Secretary Daley committed the Department of Commerce to

hiring 4,180 individuals – nearly 40 percent of the total Federal goal of 10,680. By December 1999, Commerce had hired 5,870 individuals – slightly more than 140 percent of our commitment.

Last September, in a move that will support an additional 6,000 to 9,000 welfare-to-work hires by the

Department’s Bureau of the Census during 2000, the Department of Commerce and the Department of Labor

publicized the award of a $20 million grant for the Welfare-to-Work Census 2000 Employment Project.

Announcing the initiative were White House Chief of Staff John Podesta, Secretary Daley, Secretary of Labor

Alexis Herman, Census Director Kenneth Prewitt, and grantee Goodwill Industries International President/

CEO Fred Grandy. Through this project, Goodwill has been identifying as many as 12,000 Temporary Assistance to Needy Families (TANF) clients nationally. The grantee is also evaluating and helping as many of

these clients as possible to be “test-ready” and included in the pool of potential hires available to the 520 local

Census offices as enumerators, crew leaders, and clerks for the April-through-June Non-Response Follow-up

period. Those former recipients who successfully complete their Census jobs will then be directed by Goodwill to permanent jobs in the private or public sector.

The large majority of our Welfare-to-Work hires are temporary employees who are engaged in supporting

Census 2000. At the close of 1999, 285 — or nearly 5 percent — of our Welfare-to-Work hires were permanent employees among seven of our bureaus. The Department is establishing a goal to increase its number

of permanent Welfare-to-Work employees.

• Hispanic Employment Program

The January 2000 Census Bureau projections indicate that Hispanics will be the Nation’s largest minority

group by the year 2005 and, by 2010, will number more than 41 million. The significant increase in the

Hispanic population will continue to expand the absolute numbers and relative percentage of minorities in our

Nation’s workforce. Current data available through the Office of Personnel Management shows that Hispanics

are the most severely under-represented minority group in the Federal workforce. While persons of Hispanic

origin comprised 11.5 percent of the U.S. population as of June 1, 1999, Hispanics comprised only 6 percent

of Federal workers and 2.4 percent of the government’s senior executive employees.

On several levels, the Hispanic employment picture at the Department of Commerce falls short of representing the Hispanic population. Currently, Hispanics comprise 3.1 percent of the Department’s career employees. They comprise 2.5 percent of the Department’s GS-13 through GS-15 career employees and

2.9 percent of SES employees.

Secretary Daley issued an Hispanic Employment Plan in September 1999 to address this situation and build a

pool of qualified Hispanic candidates in the different disciplines represented at the Department. This Plan sets

forth a detailed strategy to address all aspects of human resource management, including increased outreach

to the Hispanic community, greater use of Hispanic resources to assist in recruitment, and expansion of

career development opportunities for those already working at the Department of Commerce.

Under the Plan, the Department has entered into a dialogue with several national Hispanic organizations,
Management Challenges

258 FY 2001 Annual Performance Plan

including: the Society of Hispanic Professional Engineers, the National Council of La Raza, the League of

United Latin American Citizens, the Society for the Advancement of Chicanos and Native Americans in

Science, the National Association of Hispanic Federal Executives, and the National Organization for Mexican-American rights.

As part of the Hispanic Employment Plan the Department will:

• Strengthen its relationships with Hispanic Serving Institutions that have programs of study related to the

Commerce mission;

• Revise its recruitment practices for Senior Executive Service (SES) positions to require that recruitment

plans identify appropriate Hispanic professional organizations to be informed of vacancy announcements;

• Restructure its Upward Mobility Program to provide for 20 percent of the vacancies advertized in targeted

positions being filled through this program;

• Enter into partnerships with at least five Hispanic Serving Institutions and five national Hispanic organizations to assist in reaching out to qualified candidates for inclusion in the applicant pools for positions

at all levels; and

• Host a teleconference to disseminate information on our mission, programs, and career opportunities.

• Candidate Development Program

In January 2000, the Department’s career SES comprised 304 employees. Of this group, 89.1 percent

were white. African-Americans represented the majority of the balance (6.9 percent), with Hispanics and

Asian Americans each comprising less than 2 percent, and American Indians/ Alaskan Natives comprising

less than 1⁄2 of 1 percent.

To improve the representation of minority groups in the SES, the Department is launching a revised

Candidate Development Program, which will focus on three areas. In the first area, recruitment and

outreach, the Department will extend notification to include over 150 minority and women organizations,

simplify application requirements, and introduce an on-line application system. In the second area,

selection, the bureaus will conduct initial screenings, while a panel of SES members will conduct second

round interviews, and the Department’s Executive Resource Board will approve final selections. In the

third area, development, Commerce SES employees will participate in a structured core training curriculum, which will include topics such as diversity, and participate in two rotational assignments – one outside

the employee’s area of expertise and one outside of the employee’s home bureau.

In late 1999, Secretary Daley issued a new critical element relating to diversity for inclusion in the FY 2000

performance plans for managers and supervisors. This element will help foster increased support for the

Department’s overall diversity initiative and ensure that it is implemented throughout Commerce.

• Other Activities

In other efforts to foster diversity, the Department:

• Revised the criteria used for its Honor Awards Program to help ensure that employees in all occupations and at all organizational levels may be recognized for their contributions to the Department. The

criteria were changed from broad descriptions of accomplishments to seven specific categories, i.e.,

customer service, employee development, personal and professional excellence, leadership, public

service or heroism, scientific and engineering achievements, and administrative and technical support.
FY 2001 Annual Performance Plan 259

Management Challenges

The Honor Awards Program has become more inclusive and representative of the Department’s

workforce as a result.

• Updated internal policies and procedures on racial and sexual harassment to address all forms of

harassment prohibited by Federal civil rights laws. The new procedures allow for management inquiries

distinct from the EEO process to determine if misconduct may have occurred that does not meet the

legal definition of harassment.

• Is broadening its Alternative Dispute Resolution (ADR) process so that it will become more widely used

in resolving Equal Employment Opportunity (EEO) complaints. The ADR process emphasizes selfdirected resolutions as early in the dispute as possible, thereby helping to minimize conflict and

promote productivity.

Managing Our Public Trust

The American citizenry has, through Congress, entrusted the Department with fulfilling its mission in a timely,

efficient, and effective manner. In 1993, with passage of the Government Performance and Results Act (GPRA),

Congress codified this trust by requiring each Federal agency to publish a continuing series of reports that articulate the agency’s mission and major goals, a five-year strategy directed toward achieving that mission, an annual

performance plan, and an annual assessment of progress in accomplishing the agency’s mission and goals. The

various requirements form a rigorous structure aimed at providing both Congress and the public with a complete

picture of how well agencies are meeting their intended purposes.

GPRA was designed with a phased approach and fiscal year 2000 will witness the first year in which all three

reports will be produced in a single year. For the Commerce Department, these include: (a) our second Strategic

Plan, covering the years 2000 through 2005; (b) our third Annual Performance Plan (APP), covering FY 2001; and

(c) our first Annual Program Performance Report (APPR), covering FY 1999.

To fully implement the spirit of GPRA, the Department faced the need for making significant changes such as

fostering the integration of its policy, planning and budgeting processes. In January 1997, there was little interaction between the Office of the Secretary and the bureaus before the bureaus submitted their budget requests to the

Department. Neither the Secretary nor the Deputy Secretary had early involvement in the process, which was

paper intensive and made little use of strategic planning and performance measures.

Secretary Daley accelerated automation of the budget process and opened it up to allow for systematic interaction

among key officials. Under his and the Deputy Secretary’s leadership, bureau heads became active participants in

making decisions that were focused on the merits of each budget proposal and its relevance in support for the

Secretary’s priorities. Information technology, procurement, facilities, security, and management staff were given

an early opportunity to review proposals and offer recommendations. The Department strengthened its overall APP

and integrated the development of the APP into the Department’s budget process.

The results were impressive. Senior bureau leadership complimented the FY 2000 budget process. The

Department’s FY 2000 budget was submitted to OMB both on time and on CD-ROM – the first one ever submitted

electronically. The integration of planning, budget, and prioritization was reflected in the Department’s budget

initiatives, each of which cut across multiple bureaus. OMB rated the FY 2000 APP as an example of “excellent

improvement” that should be a model for other agencies. Congressional staff awarded Commerce a score of 85 –

the highest score in government – for its FY 2000 APP. This success followed a year of intensive Department-wide

effort to identify realistic performance goals and ways to measure and verify progress against them.

Refined and reshaped, our FY 2000 APP decreased the number of performance measures by 63 percent, thereby

focusing on the most important activities. Outcome-oriented measures increased from 22 percent to 56 percent,

while more than 170 process measures were dropped, thus allowing a more accurate gauge of impact and results.

All of these accomplishments allowed the Department to put forward its collective best thinking and formulate sound

recommendations for the use of public funds. These efforts have continued with the formulation of the Department’s
Management Challenges

260 FY 2001 Annual Performance Plan

FY 2001 budget request, its FY 2000 GPRA documents, and the increasingly sound operation of this cabinet

agency. To exact further benefit from these efforts, the Department is now taking steps to ensure that the data to be

used in measuring performance is accurate, complete, and reliable.

As a further measure of our commitment to GPRA, the Department continues to serve as the host agency for the

National Academy of Public Administration’s GPRA Performance Consortium. This consortium, comprising 30

Federal Departments and agencies, shares information on “best practices.” As host agency, the Department plays

a major coordinating role to ensure that all interested parties, in both the Executive and Legislative branches, benefit

from the Consortium’s efforts.

During the past year, the Department has made significant progress in managing its programs and resources to

ensure the timely, efficient, and effective delivery of services. Some of our more notable achievements include:

• NOAA Fleet Modernization

The National Oceanic and Atmospheric Administration’s (NOAA) fleet modernization was first identified as

a material weakness in FY 1990. The material weakness highlighted concerns that: (a) NOAA’s fleet was

aging, with many ships in need of extensive maintenance and replacement, and (b) the existing policy of

solely relying on in-house vessels was not necessarily the most efficient approach to meeting NOAA’s data

needs. We are pleased to report that the NOAA fleet modernization has been dropped from the list of

material weaknesses. This success is due to the Department’s continued focus on management, NOAA’s

improvements to its oceanographic and hydrographic ship-related data collection capability, and the

impending approval for the first of four new fisheries ships.

The Department worked closely with NOAA to identify and pursue alternatives. Our program for meeting

NOAA’s oceanographic and hydrographic research now emphasizes a mix of charters, cooperative use of

university ships, contracts for data collection, and continued operation of a limited number of NOAA

vessels. Based on this broader supply of days-at-sea, we have also been able to downsize NOAA’s shore

support infrastructure to further reduce costs.

We are continuing to work aggressively with NOAA in seeking the least expensive and most efficient

means for meeting the agency’s need for fisheries research vessels. NOAA prepared a detailed data

acquisition plan, which was subjected to thorough review. Funding for the first of our new fisheries research ships was included in the FY 2000 budget. We have worked diligently to coordinate our design

requirements with shipyards, design agents, and partnering organizations, such as the University National

Oceanographic Laboratory System.

• National Weather Service Modernization

The Department made significant strides in modernizing the National Weather Service (NWS). A critical

factor in the modernization effort was the successful implementation of the Advanced Weather Interactive

Processing System (AWIPS) software. This software provides the capability to display satellite imagery,

radar data, surface observations, and forecast data at a single workstation.

Secretary Daley met a long-standing Congressional mandate that AWIPS be deployed to all 152 NWS

sites and completed within a $550 million cap. The operational test and evaluation of AWIPS that was

completed in June 1999 uncovered several software deficiencies that had to be corrected before commissioning (i.e., before AWIPS can be used as the official system). NWS believes that the corrected software

will enable the commissioning of AWIPS and the decommissioning of the older systems. This achievement

meets a central concern raised by the IG in his original “top ten” list, issued in March 1997.

The Department is continuing to enhance the AWIPS software and expects to continue to improve our

forecasts by issuing more comprehensive data and by providing increasingly extended lead times on

warnings of severe weather.
FY 2001 Annual Performance Plan 261

Management Challenges

• Providing High Quality Grant Assistance

The Department strengthened its oversight of the Department’s financial assistance programs to ensure

that all applicable guidelines are followed in the award and use of funds. A 1997 review of our programs

by the Inspector General found that the Office of the Secretary and six bureaus administered 72 financial

assistance programs that provided approximately $1 billion annually to State and local governments,

educational institutions, other organizations, and individuals. Thirty-three, or nearly half of our financial

assistance programs, are classified as “full discretion,” thus providing the Department maximum flexibility in

their administration. These 33 programs provided more than 1,700 awards and $802 million – or approximately 80 percent – of Commerce’s financial assistance outlays in FY 1997. The Inspector General is

continuing his review of each of these 33 programs, with 22 reviews completed to date. As a result of these

reviews, the Department has

(a) expanded proposal solicitation efforts,

(b) included outside participants as proposal reviewers to increase objectivity in the selection

process, and

(c) strengthened documentation justifications for deviations from review panel recommendations.

As a further effort to promote efficient and effective use of resources, the Department has been working

with NOAA to increase the number of awards granted competitively through NOAA’s discretionary funding

programs and to implement a rigorous solicitation process.

• Monitoring the Department’s Special Agreements

The Department has strengthened its oversight of Interagency and Other Special Agreements. These

agreements encompass a wide variety of reimbursable activities, obligations to acquire goods or services

from other parties, or commit the Department or its bureaus to joint project agreements. A review by the

Inspector General found that the Department had more than 4,700 of these agreements, involving more

than $1.1 billion in FY 1997. We are preparing formal policies and procedures that will specify the acceptable types of government-wide and Department-wide agreements that may be executed, the minimum

requirements for consummating agreements, standard language for inclusion, and orderly review and

approval policies.

• Field Office Streamlining

The Department reduced the number of domestic field offices by 20 percent since the fourth quarter of FY

1998.

For several decades, Commerce has maintained a field office presence in all 50 states to serve the needs

of its customers. Although there have been mission changes, various reorganizations, and significant

advances in technology, the Department’s field structure had been little changed in more than two decades.

To improve efficiency and reduce costs, the Department worked with those of its bureaus which have a

major field presence to review opportunities for streamlining and improving service to our customers. The

Department considered options such as consolidation, collocation, cross-functional teaming, and crossservicing as a means to achieving greater efficiency and effectiveness. Two other pertinent initiatives were

also pursued: modernization of the National Weather Service and revising the Department’s procedures

for renewing field office leases. Under the new procedures, field office leases were not to be renewed

absent a mission critical justification.

From the base of 747, the number of domestic field offices was reduced to a total of 591. In addition,

nearly 100 domestic field offices had leases that are due to expire by the end of 2000. Through the close of

calendar year 1999, the Department reviewed, and conditionally approved, 44 field office leases. To support
Management Challenges

262 FY 2001 Annual Performance Plan

potential future cost savings, most of the lease renewals include options such as month-to-month renewals

or 30-day non-penalty early termination provisions which may be exercised upon securing alternative

quarters that are more consonant with the new streamlining policy. Each of the field offices with these

provisions has been charged with identifying and exercising prospective cost-saving and streamlining

opportunities. As a result, the Department anticipates further reductions in costs over the coming year.

• Facilities Management

The Department strengthened its oversight of bureau facilities acquisition and management. As part of

our new process, the Office of the Secretary obtains firsthand knowledge or conducts on-site visits of

major space requirements and their relationship to program mission. To improve our overall management

oversight, we coordinated our reviews with the Inspector General.

Our recent oversight activities have included providing technical real property guidance concerning the

newly reorganized NOAA Headquarters Facilities Office, NOAA line offices, and the Administrative Support Centers, which NOAA operates in support of the Department’s field structure. We provided oversight

and coordination of the real property needs to Census on its timely acquisition of 520 local Census offices,

and other field office requirements. We have continued to provide assistance to PTO on its efforts to

prepare for lease award on its solicitation for expansion/consolidation of space. Forward movement on

the PTO award, however, has been on-hold pending a judicial ruling on a suit which took issue with the

environmental impact assessment of the prospective relocation. This ruling is expected shortly.

• Security

Secretary Daley made security, and specifically the reduction of the risk of security threats, one of his top

priorities. In July 1997, he commissioned a review of the Department’s security operations by the interagency Security Policy Board (SPB). To date, the Department has implemented 62 of 66 (94 percent) of

the SPB’s recommendations. Accomplishments on key recommendations include: (a) reducing the

number of security clearances by 40 percent to support efforts in limiting access to classified information;

(b) making progress in implementing an automated program, the Security Information Management

System (SIMS), which is currently tracking over 45,000 classified documents at the Secret level and

above; (c) implementing a counter-intelligence program to improve protection of our sensitive but unclassified information from external threats; (d) establishing an emergency preparedness program to ensure the

continuity of our operations in the event of a catastrophe; and (e) consolidating most of the Department’s

security personnel and assets. The Department will continue to enhance security operations by improving

the guard force at the Herbert C. Hoover building, standardizing security procedures, enhancing information technology security, and implementing direct delivery of security equipment and services to our

overseas offices.

• Converting PTO to a Performance-Based Organization

The Department and PTO are working diligently to achieve the conversion of PTO to a Performance-Based

Organization (PBO) by the end of March 2000. As a PBO, the PTO is subject to policy direction by the

Secretary but will be expected to increase its efficiency as a result of being given independent control over

budget allocations and expenditures, personnel decisions and processes, procurements, printing, and other

administrative and management functions. The conversion to PBO status, long-sought by PTO as an

innovative way to improve its efficiency, was approved by Congress in November with passage of the

Patent and Trademark Office Efficiency Act.
FY 2001 Annual Performance Plan 263

Management Challenges

• National Technical Information Service

The Department’s National Technical Information Service supports itself through fees charged for its products

and services. Between FYs 1995 and 1998, the agency incurred a cumulative loss of $4.8 million, which

nearly exhausted its retained earnings.

Through the past year, the Department continued to address NTIS’ deteriorating financial situation by

supporting and supervising an aggressive cost-cutting program at the agency. These cost reduction

measures included assisting in the transfer of 46 NTIS staff members to positions elsewhere in Commerce during the last quarter of FY 1999, consolidating office space, eliminating performance awards, and

restricting travel. Although these and other urgent measures permitted NTIS to close FY 1999 with a

balance of some $650,000, instead of a projected deficit, NTIS’ financial position remains precarious and

its mission and structure outdated.

In late 1999, to address this long-term issue, the Department submitted draft legislation that would close

NTIS and transfer selected functions to the Library of Congress. We testified on our proposal before the

House and Senate in September and October, respectively. We are continuing a dialogue with the Library

of Congress and other interested agencies and stakeholders on the details of the Department’s proposal.

Conclusion

The Department is proud of its accomplishments and we look forward to building on our record of implementing

solid improvements. Accountability, open reporting to the taxpayer, and emphasizing continuous improvement

provide significant motivation for optimal resource use. We have relied on, and will continue to use, the management tools provided by legislation – including the Government Performance and Results Act, the Chief Financial

Officers Act, the Clinger-Cohen Act, and other measures passed over the past decade. We continue to work to

resolve all of the Inspector General’s original “top ten” management concerns and to further enhance our record of

management improvements that facilitate full accountability and maximum performance.
Management Challenges

264 FY 2001 Annual Performance Plan
FY 2001 Annual Performance Plan 265

Appendix 1

As required by the Government Performance and Results Act (GPRA), the Department of Commerce is revising its

Strategic Plan during FY 2000. The first Commerce Strategic Plan under the terms of GPRA was submitted to

Congress in 1997. The revised Commerce Strategic Plan will be submitted by September 30, 2000.

The Department of Commerce expects substantial revisions of the Strategic Plan, primarily because of the significant changes in the U.S. economy that will affect the fulfillment of the Department’s mission in the early 21st century.

Because of this substantial revision, the FY 2001 Annual Performance Plan will be a “bridge” from the 1997 Strategic

Plan to the Strategic Plan submitted in late 2000. The full expression of the revised Commerce strategic goals and

objectives in the new Strategic Plan will occur in the FY 2002 Annual Performance Plan.

The only significant changes in the performance goals in the FY 2001 Annual Performance Plan involve the Economics and Statistics Administration (ESA) and the Technology Administration (TA). Three new performance goals were

added for ESA. One reflects the major activity involving the Decennial Census. Two others result from the increasing importance of electronic distribution of economic data by the ESA STAT-USA Program.

In the case of TA, the National Institute of Standards and Technology (NIST) has added a new performance goal:

Protection of the National Information Infrastructure.

Appendix 1- Adjustments to the Strategic Plan
Appendix 1

266 FY 2001 Annual Performance Plan
FY 2001 Annual Performance Plan 267

Appendix 2

Appendix 2- Preparation of the Annual Performance Plan

The Department implemented major changes in the FY 2000 Annual Performance Plan compared to the performance

goal and measure structure used in the first Commerce Annual Performance Plan (FY 1999). As described in

Appendix 2 of the FY 2000 Commerce Annual Performance Plan, significant consolidation of performance goals and

measures was accomplished with a greater focus on outcome measures.

This year, the Deputy Secretary has made the Annual Performance Plan one of his top management priorities.

Together with the Department’s GPRA Task Force (involving members from each bureau, the Office of Inspector

General and the Office of the Secretary) and Andersen Consulting, a small team of senior level policy officials and

the Office of Budget has worked to strengthen the Department’s goals and performance measures. These goals and

measures are more precise and more relevant for managing our programs. In addition, we have better integrated the

Annual Performance Plan process into the budget process. The Department also sought the active involvement of

the bureau heads in the development of the plan.

In preparing the FY 2001 Annual Performance Plan, the Department of Commerce decided to maintain the basic

performance goal and measure structure used in the FY 2000 Annual Performance Plan. There were two reasons for

this decision, First, the FY 2000 Annual Performance Plan received highly favorable reviews from Congress and the

General Accounting Office. Second, the revision of the Commerce Strategic Plan would be completed nine months

after the submission of FY 2001 Annual Performance Plan, and, therefore, it could not fully reflect the changes in the

new Strategic Plan.

The FY 2001 Commerce Annual Performance Plan incorporates numerous incremental changes and improvements

compared to the FY 2000 edition. In particular, performance measures have been modified in many cases to

respond to lessons learned after two years of experience with the implementation of GPRA-mandated Annual

Performance Plans. Certain measures have been replaced with more suitable measures. These changes are

described in the bureau presentations in Section III of this document.

Stakeholder and Congressional Consultation

After the submission of the FY 2000 Annual Performance Plan to Congress, the Department participated in several

meetings with GAO, OMB and Congressional staff to discuss the document and receive input on how to improve the

Plan. The major areas identified for improvement included:

• Increased specificity of performance goals, measures and targets where necessary;

• Improved presentation of budget data regarding budgetary resources associated with performance goals;

• Expanded discussion of coordination of crosscutting efforts;

• Elaboration of the linkages between strategies and resources with the achievement of annual goals and

performance targets;

• Presentation of mitigation strategies for the effects of identified external factors; and

• Description of efforts to verify and validate performance data and to assess the implications of known

performance data limitations.

With these areas defined, the Department began working on refinements to the Plan that could meet the needs of

the bureaus as well as provide the information that OMB, GAO and Congressional staff sought.

Requests for Administrative Waivers

None.
Appendix 2

268 FY 2001 Annual Performance Plan
FY 2001 Annual Performance Plan 269

Appendix 3

Appendix 3- Alphabetical List of Acronyms

ACDA Arms Control and Disarmament Agency

ACS American Community Survey

AD anti-dumping

ANCS II Automated Nautical Chart System II

ARC Appalachian Regional Commission

ASOS Automated Surface Observing System

ATP Advanced Technology Program

AWIPS Advanced Weather Interactive Processing System

BEA Bureau of Economic Analysis

BEMs big emerging markets

BLS Bureau of Labor Statistics

BXA Bureau of Export Administration

CAMS Commerce Administrative Management System

CAPs Corrective Action Plans

CBAD Current Business Analysis Division

CEMSCS Central Environmental Satellite Computer System

CENR Committee on Environment & Natural Resources

CFO/ASA Chief Financial Officer/Assistant Secretary of Administration

CIAO Critical Infrastructure Assurance Office

CIP Critical Infrastructure Program

CM continuous measurement

CMS Client Management System

CPI consumer price index

CVD counter-veiling duties

CWC Chemical Weapons Convention

DAS Days at Sea

DOD Department of Defense

DOE Department of Energy

DOL Department of Labor

EAA Export Administration Act

EACs Export Assistance Centers

EAR Export Administration Regulations

EAS Electronic Application System

ECASS Export Control Automated Support System

EDA Economic Development Administration

EE export enforcement

EMT Executive Management Team

EPA Environmental Protection Agency

EPSCoT Experimental Program to Stimulate Competitive Technology

ERL Environmental Research Laboratories

ESA Economics and Statistics Administration

EZ/EC Empowerment Zone-Enterprise Community

FEMA Federal Emergency Management Agency

FFS Federal Financial Systems

FSL Forecast Systems Laboratory

FTZ foreign trade zone

GAO General Accounting Office

GDI gross domestic income

GDIN Global Disaster Information Network

GDP gross domestic product

GFDL Geophysical Fluid Dynamics Laboratory

GMF Government Master File

GMRA Government Management & Reform Act
270 FY 2001 Annual Performance Plan

Appendix 3

GOES Geostationary Operational Environmental Satellite

GPRA Government Performance & Results Act

GPS Global Positioning System

HCHB Herbert C. Hoover Building

HHS Department of Health & Human Services

HIA high impact agency

HPC Hydrometeorological Prediction Center

I & C information & communications

IA Import Administration

ICM Integrated Coverage Measurement

IMF International Monetary Fund

IRAC Interdepartmental Radio Advisory Committee

IT information technology

ITA International Trade Administration

ITU International Telecommunication Union

ITU International Trade Union

LATs Latin American Telecommunications Seminar

MAC Market Access & Compliance

MBDA Minority Business Development Agency

MBEs Minority-Owned Business Enterprises

MBNQP Malcolm Baldrige National Quality Program

MEP Manufacturing Extension Partnership

MOU memorandum of understanding

MSL Measurement & Standards Laboratories

NAICS North American Industrial Classification System

NAPA National Academy of Public Administration

NBS National Bureau of Standards

NCEP National Centers for Environmental Protection

NDAA National Defense Authorization Act

NDR Natural Disaster Reduction

NEC Nonproliferation Export Control

NESDIS National Environmental Satellite, Data, and Information Service

NEXRAD Next Generation Weather Radar

NGI Next Generation Internet

NHC National Hurricane Center

NIOSH National Institute of Occupational Safety and Health

NIST National Institute of Standards and Technology

NMFS National Marine Fisheries Service

NMIs National Metrology Institutes

NOAA National Oceanic and Atmospheric Administration

NOS National Ocean Service

NRC Nuclear Regulatory Commission

NSTC National Science & Technology Council

NTEs new-to-export firms

NTMs new-to-market firms

NTIA National Telecommunications and Information Administration

NTTC National Technology Transfer Center

NURP National Undersea Research Program

NWS National Weather Service

OAR Office of Oceanic & Atmospheric Research (NOAA)

OCRM Office of Ocean & Coastal Resource Management (NOAA)

OEA Office of Economic Adjustment

OECD Organization for Economic Cooperation & Development

OEE Office of Export Enforcement
FY 2001 Annual Performance Plan 271

Appendix 3

OGP Office of Global Programs

OIG Office of Inspector General

OLIA Office of Legislative and International Affairs

OPM Office of Personnel Management

ORF Operations, Research and Facilities

OSTP Office of Science & Technology Policy

OTEM Office of Trade Event Management

OTP Office of Technology Policy

PAC Procurement, Acquisition, and Construction

PALM Patent Application Locator & Monitoring

PBO performance-based organization

PCT Patent Cooperation Treaty

PNGV Partnership for a New Generation of Vehicle

POES Polar-orbiting Operational Environmental Satellite

PORTS Physical Oceanographic Real Time Telemetry Systems

PSN Promote Safe Navigation

PTDL Patent and Trademark Depository Library

PTO Patent and Trademark Office

QPF Quantitative Precipitation Forecast

RLF Revolving Loan Fund

RWA returned without action

SBA Small Business Administration

SHC Sustain Healthy Coasts

SMEs small and medium sized enterprises

SMOBE Survey of Minority-Owned Business Enterprises

SRD Standards Reference Database

SRMs Standard Reference Materials

TA Technology Administration

TAACS Trade Adjustment Assistance Centers

TCC Trade Compliance Center

TD Trade Development

TDA Trade & Development Agency

TIC Trade Information Center

TICRS Trademark Image Capture & Retrieval System

TIIAP Telecommunications Information Infrastructure Assistance Program

TIS Trademark Information System

TPCC Trade Promotion Coordinating Committee

TRAM Trademark Application Monitoring

TRIPs Trade-Related Aspects of Intellectual Properties

UNEP United Nations Environment Programme

URAA Uruguay Round Agreements Act

US FCS U.S. Foreign & Commercial Service

USACE U.S. Army Corps of Engineers

USAF U.S. Air Force

USAID U.S. Agency for International Development

USDA U.S. Department of Agriculture

USEAC U.S. Export Assistance Centers

USG U.S. Government

USIP U.S. Innovation Partnership

USTR U.S. Trade Representative

WFO Weather Forecast Office

WIPO World Intellectual Property Organization

WMO World Meteorological Organization

WTO World Trade Organization
272 FY 2001 Annual Performance Plan

Appendix 3
FY 2001 Annual Performance Plan 273

Appendix 4

Appendix 4- Crosscutting Activities (By Bureau) Between

the Department of Commerce and Other Federal Agencies

Bureau Federal Cooperator

EDA Department of Agriculture

• Office of Rural Development/Supplemental public works grants

• Agriculture Conservation and Stabilization Service/Flood-related technical assistance

• Rural Development Program

Department of Defense

• Military Base Closures/Defense /Defense contract reductions/Downsizing

• Levee Restoration Program

• Research and National Technical Assistance

Department of Energy

• Convert Energy labs to support civilian technology enterprise

Environmental Protection Agency

• Brownfields Initiative

• Levee Restoration Program

• Sustainable Development

• Diversify resource-based economies

Federal Emergency Management Agencies

• Post-Disaster Economic Recovery Program and mitigation planning

Department of Housing and Urban Development

• Post Disaster Economic Recovery Program

• Community Development Block Grants program

Department of Labor

• Economic development based on local planning

Department of Transportation

• Economic Development District-Review of overall Economic Development Program

• Supplemental Grants from FHA

ESA Department of Labor

• Price and Output Working Group Economic Classification and Policy Committee

• Working Group on Compensation Measurement

• NAICS Implementation

• Interagency Confidentiality and Data Access Group
Appendix 4

274 FY 2001 Annual Performance Plan

 ESA Office of Management and Budget

• Economic Classification and Policy Committee

• Federal Committee on Statistical Methodology

• Interagency Council on Statistical Policy

Department of Transportation

• Transportation Satellite Accounts Team

• Highway Statistics Steering Committee

Department of Treasury

• Improving surveys of international investment

• Improving source data on property incomes

• NAICS implementation

ITA Agency for International Development

• TPCC

Department of Agriculture

• TPCC

Department of Defense

• TPCC

Department of Energy

• TPCC

Environmental Protection Agency

• TPCC

Department of the Interior

• TPCC

Department of Labor

• TPCC

Department of State

• TPCC

Department of Transportation

• TPCC

Department of Treasury

• TPCC

• Customs: Enforce U.S. trade laws

United States Trade Representative

• TPCC

BXA Agency for International Development

• Funding to countries of concern for purchase of controlled U.S. items

Department of Agriculture

• Short Supply Controls/EAA

• National Defense Stockpile Market Impact Committee

Department of Defense

• Export license application review, consultation, and dispute resolution EAA

• Multilateral Regime Participation EAA
FY 2001 Annual Performance Plan 275

Appendix 4

BXA Department of Defense

• Export control policy development EAA

• Export control cooperation with foreign governments

• Intelligence Liaison

• Critical Infrastructure Protection Initiative

• Encryption export license application review, consultation and dispute resolution

• Encryption policy development

• Defense industrial base Assessments

• Excess defense articles review

• Implementation of CWC

• Negotiations of BWC Protocol

• Defense diversification

• Offsets in Defense Trade/TPCC

• Review of Defense Memoranda for Understanding

• National Defense Stockpile Market Impact Committee

Department of Energy

• Export control cooperation with foreign governments

• Enforcement cooperation and support

• Export license application review, consultation, and dispute resolution/EAA

• Multilateral regime participation/EAA

• Export control policy development/EAA

• Implementation of CWC

• Negotiations of BWC Protocol

• Defense diversification

• International Cooperative License/EAA

Federal Emergency Management Agency

• National Security Emergency Preparedness Defense Priorities and Allocation Systems

• NATO Civil Emergency Planning Coordinating Committee

• National Defense Stockpile Market Impact Committee

• Critical Infrastructure Protection Initiative

Department of Health and Human Services

• National Defense Stockpile Market Impact Committee

Department of the Interior

• Short Supply Controls/EAA

• National Stockpile Market Impact Committee

Department of Justice

• Encryption Export License application review, consultations, and dispute resolution

• Encryption policy development

• Defense priorities and allocations

• Law enforcement cooperation (FBI, INS)

• Intelligence liaison

• Critical Infrastructure Protection Initiative
Appendix 4

276 FY 2001 Annual Performance Plan

BXA National Aeronautics and Space Administraiton

• Export control policy development EAA

• International Cooperative Licenses

Office of Management and Budget

• National Defense Stockpile Market Impact Committee

• Critical Infrastructure Protection Initiative

Small Business Administration

• Export Control Seminars

• Defense diversification

Department of State

• Export license application review, consultation and dispute resolution EAA

• Commodity jurisdiction review and transfers

• Multilateral regime participation EAA

• Implementation of CWC

• Negotiations of BWC Protocol

• National Defense Stockpile Strategic/Strategic and Critical Materials Stockpiling Act of 1979

• National Defense Stockpile/Market Impact Committee

• NATO Industrial Planning Committee

• Defense diversification

• Discussions of boycott requests and other boycott issues at monthly interagency meetings

• Export control policy development/ EAA

• Sanction policy/EAA

• Export control cooperation with foreign governments

• Intelligence Liaison

Department of Transportation

• Coordination on license shipments

Department of Treasury

• Committee on Foreign Investment in the United States

• National Defense Stockpile Market Impact Committee

• Sanction policy/EAA

• Export compliance seminars

• Discussion of boycott requests and other boycott issues at monthly interagency meetings

• Customs domestic and foreign cooperative investigations

• Foreign asset controls

• Information exchanges

MBDA Department of Agriculture

• Minority Business Opportunity Committee
FY 2001 Annual Performance Plan 277

Appendix 4

NOAA Agency for International Development

• Famine warnings: Satellite data, rainfall analysis

• Seasonal to interannual climate forecasts

• International Coral Reef Initiative

Department of Agriculture

• Columbia River Basin study (flood forecasting)

• CENR (global change, hazards, water)

• Global Climate Data and Information System

• Seasonal to interannual climate forecasts

• Sea Grant (fisheries and aquaculture research)

• Marine aquaculture research and promotion

• National Ocean Partnership Program

• CENR (environmental monitoring)

• Coastal Zone Management (land-use planning, non-point source pollution)

• Gulf of Mexico Hypoxia Task Force

• Habitat restoration and protection

• South Florida Ecosystem Restoration

• Interagency Taxonomic Information System

Department of Defense

• Columbia River Basin study (flood forecasting)

• California project (flood forecasting)

• CENR (global change)

• Global Climate Data and Information System

• HPCC

• National Undersea Research Program

• Protected species management

• Coastal habitat restoration and conservation program

• National Ocean Partnership Program

• South Florida Ecosystem Restoration

• Living marine resources habitat protection

• Radio frequency management (with NTIA)

• Polar satellite convergence

• Defense Department Satellite data

• NEXRAD (weather radar)

• ASOS (weather observations)

• U.S. Weather Research Program

• Marine Observing Network

• Civilian applications of Global Positioning Systems

• Hydrological monitoring

• Advanced Hydrologic Prediction System (flood forecasting)

Department of Energy

• CENR (Hazards)

• Greenhouse gas emissions studies and assessments

• CENR (global change, hazards)

• Data storage

• Global Climate Data and Information System

• HPCC
Appendix 4

278 FY 2001 Annual Performance Plan

NOAA Department of Energy

• Seasonal to interannual climate forecasts

• Living marine resources, habitat conservation program

• anadromous fisheries programs

• CENR (environmental monitoring)

• Radio frequency management (with NTIA)

Environmental Protection Agency

• Global ecosystem datasets

• Living marine resources, habitat conservation program

• Protected species management

• National Ocean Partnership Program

• CENR (environmental monitoring)

• Non-point source pollution control

• Response to and remediation of hazardous material spills

• Coastal monitoring (water quality, contaminants, harmful algal blooms)

• CENR (global change)

• National Acid Prediction Assessment Program

• Atmospheric Integrated Research Monitoring Network

• Assessment of CFC substitutes for ozone depletion potential

• Global Climate Data and Information System

• GLOBE

• HPCC

• North American Research Strategy for Tropospheric ozone

Federal Communications Commission

• Radio frequency management (with NTIA)

Federal Emergency Management Agency

• Seasonal to Interannual climate forecasting extreme events

• CENR (hazards shoreline mapping, hazard mitigation planning)

• Emergency management training and outreach

• External weather warning coordination

• Coastal Zone Management (land-use planning and risk evaluation)

Department of Health and Human Services

• CENR (harmful algal blooms, endocrine disruptors)

• CENR (global change, hazards)

• HPCC

Department of Housing and Urban Development

• CENR (hazards)

Department of the Interior

• FGDC (data standards)

• Spatial reference system and geodetic control

• Satellite data
FY 2001 Annual Performance Plan 279

Appendix 4

NOAA Department of the Interior

• CENR (hazards)

• Hydrological (flood) monitoring and forecasting

• Seasonal to interannual climate forecasts

• Volcanic ash monitoring

• Advanced Hydrological Prediction System

• Fire weather

• Stream gauging

• Tsunami Network (coastal hazard warning system)

• Columbia River basin study (floor forecasting)

• Watershed and River System Management Program, Yakima Basin

• FGDC (data standards)

• CENR (global change, hazards, water)

• Satellite data (archive)

• Global Climate Data and Information System

• Protected species management (marine mammal programs & endangered species conservation and management)

• Living marine resources habitat conservation program

• Aquaculture development

• South Florida Ecosystem Restoration

• CENR (environmental monitoring)

• U.S. Coral Reef Initiative

• Radio frequency management (with NTIA)

• Protected species management (marine mammal programs & endangered species conservation and management)

• Living marine resources habitat conservation program

• Aquaculture development

• South Florida Ecosystem Restoration

• CENR (environmental monitoring)

• U.S. Coral Reef Initiative

• Radio frequency management (with NTIA)

• Interagency Taxonomic Information System

Department of Justice

• Marine fisheries enforcement program

National Aeronautics and Space Administration

• Polar satellite convergence

• FGDC (data standards)

• CENR (hazards)

• GPSmet satellite

• Space launch forecasts

• U.S. Weather Research Program

• National Ocean Partnership Program

• Radio frequency management (with NTIA)

• EOSDIS (interoperability, archive)

• Pathfinder (data reprocessing)

• Satellite data

• CENR (global change, hazards)

• EOS Missions and instruments (SeaWiFS, TRMM, NSCAT)

• Global Change Data and Information System
Appendix 4

280 FY 2001 Annual Performance Plan

NOAA National Aeronautics and Space Administration

• Seasonal to Interannual climate forecasts

• GLOBE

• HPCC

National Science Foundation

• CENR (hazards)

• GPSmet satellite

• U.S. Weather Research Program

• CENR (global change, hazards)

• University Corporation for Atmospheric Research

• GLOBE

• Global Climate Data and Information System

• HPCC

• National Undersea ResearchProgram

• Sea Grant

• Fisheries stock assessment programs, fisheries science program

• National Ocean Partnership Program

• Harmful algal blooms

• CENR (environmental monitoring)

• Radio frequency management with NTIA

Department of State

• CENR (global change, hazards)

• International science and technology agreements

• GLOBE

• Global Climate Data and Information System, marine pollution

• Radio frequency management (with NTIA)

• Protected species management (marine mammal programs & endangered species conservation and management)

• International fishery management programs

• U.S. Coral Reef Initiative

• Land-based sources of marine pollution

• Satellite and data policy

Department of Transportation

• Living marine resources habitat conservation program

• Response to hazardous materials spills

• National Marine Sanctuaries (vessel traffic, enforcement)

• Nautical and aeronautical charting

• CENR (hazards)

• FGDC (data standards)

• ASOS (environmental monitoring for meteorology and airplane flight safety)

• FSL (forecast workstation development)

• Volcanic ash monitoring

• NEXRAD (weather radar)

• GPSmet satellite

• National Invasive Species Act

• Radio frequency management (with NTIA)
FY 2001 Annual Performance Plan 281

Appendix 4

PTO Agency for International Development

• Improve systems for effectively granting and protecting intellectual property rights

• International training and technical assistance for developing countries

Department of Agriculture

• Intellectual property policy proposals

• Formulate proposals for intellectual property protection both at home and abroad (plant

varieties)

Department of Energy

• Handling patent applications having national security implications

Food and Drug Administration

• Patent term extension for drug related patents that have received regulatory review

Department of Health and Human Services

• Handling both AIDs-related inventions/information and recombinant DNA information

Department of Justice

• Formulate intellectual property policy proposals

Library of Congress

• Formulate proposals for intellectual property/protection in the U.S. and Abroad

National Science Foundation

• Domain Name Dispute Resolution – for developing acceptable legal and procedural regimes

for settlement of trademark domain name disputes

• Report to the President on Science and Engineering Indicators. Reports on patenting

trends in the U.S. by Standard Industrial code, foreign country and technological activities,

and university patenting activity

Department of State

• Formulate intellectual property policy proposals

• Protection of intellectual property both at home and abroad

• Improve international standards for the protection of intellectual property

Department of Treasury

• U.S. Customs Service regarding counterfeit goods or services

United States Trade Representative

• Formulate intellectual property policy proposals

• PTO advice to USTR on foreign unfair trade practices for intellectual property (Section 301)

• Protection of intellectual property both at home and abroad

• Participate in efforts to improve international standards for the protection of intellectual property
Appendix 4

282 FY 2001 Annual Performance Plan

TA Agency for International Development

• Standards-related training workshops

Department of Agriculture

• Measurement activities

• MEP collaboration on forestry and food processing industries, and related agricultural

extension issues

Department of Defense

• Measurement and standards activities for all branches of the military

• ATP Source Evaluation Board

• PNGV (non-budget)

Department of Energy

• Measurement and standards activities

• ATP Source Evaluation Board

Environmental Protection Agency

• Measurement and standards activities

Federal Emergency Management Agency

• Agreements for measurement and standards research and services

General Services Administration

• Agreements for measurement and standards research and services

Department of Health and Human Services

• Agreements for measurement and standards research and services

• ATP Source Evaluation Board (w/NIH)

Department of Housing and Urban Development

• Agreements for measurement research identifying building lead content and abatement

techniques

Department of the Interior

• Agreements for measurement and standards research

• Agreements for measurement and standards research and services in security and electronic data transfers

United States Trade Representative

• Coordination in the area of measurements and standards for international trade

Department of Veterans Affairs

• Agreements for research in hearing aid metrology and performance improvements
FY 2001 Annual Performance Plan 283

Appendix 4

NTIA Department of Agriculture

• Spectrum Management (IRAC)

Department of Defense

• Telecommunications Research

Department of Education

• Spectrum Management (IRAC)

• Universal Service, Internet use in schools, libraries

Department of Energy

• Spectrum Management (IRAC)

Environmental Protection Agency

• Spectrum Management (IRAC)

Federal Communications Commission

• Spectrum Management (IRAC), COMSAT Oversight

• Telecommunications policy, universal service, public safety communications, international

conferences

General Services Administration

• Spectrum Management (IRAC), COMSAT oversight

Department of Health and Human Services

• Spectrum Management (IRAC)

• Telemedicine Policy Development

Department of Housing and Urban Development

• Spectrum Management (IRAC)

Department of the Interior

• Spectrum Management (IRAC)

Department of Justice

• Spectrum Management (IRAC)

• Telecommunications policy issues

Department of Labor

• Spectrum Management (IRAC)
Appendix 4

284 FY 2001 Annual Performance Plan

NTIA National Aeronautics and Space Administration

• Spectrum Management (IRAC)

• PEACESAT

National Science Foundation

• Internet issues

Department of State

• Spectrum Management (IRAC)

• International forums on telecommunications policy (ITU, WTO, OECD, ASEAN, etc)

Department of Transportation

• Telecommunications research (smart vehicles, NEXRAD for FAA, etc)

• Spectrum Management (IRAC)

Department of Treasury

• Spectrum Management (IRAC)
FY 2001 Annual Performance Plan 285

Appendix 5

Appendix 5- Economic Development Administration

Note 1: EDA Performance Measures

EDA performance measures focus on long-term

outcomes that document the long-term results of

EDA investments in distressed areas. EDA

projections for the long-term outcomes are

based on systematic program evaluations

conducted by Rutgers University. For example,

FY 2001 grants for construction and revolving

loan fund projects are expected to create or

retain 59,016 jobs, and leverage $1.99 billion

dollars in private sector investment by FY 2010.

EDA has developed a reporting system to track

long-term outcomes (e.g., job creation and

private sector investment) reported by grantees

over a period of years following grant award and

project completion. FY 2001 grantees will report

on program outcomes in FY 2004, FY 2007, and

FY 2010.

Graph 1 illustrates the number of jobs expected

to be created from fiscal year 2002 to 2010 as a

result of public works and revolving loan fund

grants awarded in fiscal years 1999, to 2001.

Graph 2 illustrates a snapshot of the number of

jobs that will be reported from FY 2002 to FY

2010.

In the interim, EDA is conducting pilot reviews of

earlier construction and revolving loan projects

(i.e., FY 1993 grant awards) to validate projected

targets for FY 2001, and to train EDA staff and

grantees on valid methods for reporting and

verifying outcome data.

To supplement the long-term measures, EDA

had developed a set of interim and process

measures that can be used by managers on a

regular basis to set targets and track performance in critical areas that affect program outcomes (e.g., targeting

investments in areas of highest distress, and improving the quality and efficiency of EDA assistance).

Note 2: Pilot Reviews of FY 1993 Construction and Revolving Loan Fund Grants

During fiscal year 1999, EDA worked with Rutgers to conduct a pilot review of 58 construction projects and 44

revolving loan fund projects approved in FY 1993 (six years ago). EDA used the pilot to provide extensive outreach

and training for EDA grantees on valid reporting methods and trained EDA staff on methods for verifying data reported

by grantees. The pilot established a national performance team involving EDA grantees and national organization to

oversee the pilot, and to provide consultation and feedback on EDA performance measures and reporting requirements. The following is a summary of findings comparing the two Rutgers studies:

Graph 1: Job Creation/Retention

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2002 2003 2004 2005 2006 2007 2008 2009 2010

FY 1999 Funding FY 2000 Funding FY 2001 Funding

Graph 2: Job Distribution

8,547 14,246

34,190

42,737

56,983

8,476

14,127

28,254

33,905

42,381

28,492 5,698

5,651 56,509

5,902

8,852

14,754

29,508

35,409

44,262

59,016

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000

2002

2003

2004

2005

2006

2007

2008

2009

2010

FY 1999 Funding FY 2000 Funding FY 2001 Funding

-- -ts --

t::D 

0 I I I I I I I I 

□ □ ■ 
Appendix 5

286 FY 2001 Annual Performance Plan

GPRA Pilot Projects

Results (1999)

Rutgers Project

Results (1997)

Creation of permanent number of jobs 100% 96.1%

Leveraged Private Sector Investment 98% 84%

Job Cost Ratios $3,445 $3,058

Private Sector Investment 5.62 to 1 10.08 to 1

GPRA Pilot Projects

Results (1999)

Rutgers Project

Results (1997)

Creation of permanent number of jobs 95% 96.1%

Leveraged Private Sector Investment 95% **

Job Cost Ratios $4,107 $3,747

Private Sector Investment 6.25 to 1 2.67 to 1

Rutgers Summary Findings for Revolving Loan Fund Projects

Rutgers GPRA Pilot (1999) Conclusions:

• Virtually all of the construction and revolving loan fund projects achieved EDA’s objective of providing communities with the necessary infrastructure to expand their economic base and existing job base

• EDA public-sector economic stimuli created private-sector jobs at high levels of success and low levels of

costs

• The results found in the GPRA Pilot Project (1999) results are very comparable to Rutgers Project Results

found in the earlier Rutgers study (1997)

Note 3: Indian Economic Development Program Initiative

Native American tribes, for the most part, exhibit extraordinarily high levels of distress. For the four Native American

projects evaluated in the 1997 Public Works and Performance Evaluation by Rutgers University, the following is a

comparison of Native American community labor force and social economic distress characteristics to the National

Median:

Rutgers Summary Findings for Construction Projects
FY 2001 Annual Performance Plan 287

Appendix 5

• Median per capita income for the Native American communities were 55% below the National Median

• Unemployment rates for Native American communities were 200% above the National Median

• Percent of Native American population in poverty were 155% above the National Median

For FY 2001, EDA expects to use a significant portion of the funds dedicated to the Native American Economic

Development Program to fund basic infrastructure projects, distance learning and skill training facilities. These types

of facilities provide fewer permanent jobs, but are critical components in building a strong economic base for future

economic development enterprises. Additionally, these types of infrastructure facilities are needed before any

community can move forward to the next level of development and economic prosperity. It has been EDA’s experience that most Native American assisted projects provide few direct jobs, therefore a higher cost per permanent job

created or retained per EDA investment. In the 1997 Public Works Program Performance Evaluation by Rutgers

University, Native American projects exhibited a much higher median cost per job to the other projects surveyed in

the study. The performance targets for job creation for the Native American Initiative derived from the results of the

Native American projects in the Rutgers Study have been appropriately modified to reflect these issues.

Private investment for Native American projects is almost non-existent on reservations due to the fact that private

lenders are unable to secure the customary mortgage on a financed facility to serve as collateral for their loans.

Given the small market size of most Native American tribes, private enterprises generally do not envision the potential for an equitable rate of return on its investment. Of the four Native American projects that were included as part of

the 1997 Public Works Program Performance Evaluation by Rutgers University, there was no private investment for

any of the Native American assisted projects. For FY 2001, EDA anticipates using some of the $14 million setaside for revolving loan fund projects in Native American communities to encourage and support private sector

investment. The proposed performance target for private investment provides a goal that is realistic of the investment

climate in Native American tribes.

Note 4: FY 2001 Mississippi Delta Initiative

This initiative is part of the President’s Mississippi Delta Initiative for FY 2001, which includes the creation of a new

Delta Regional Authority designed to target funding and resources to economically distressed communities throughout the Delta. EDA will work closely with the new Authority in the delivery of its support to the Delta area. The

requested funds will be used to provide technical assistance, construction, and business financing, including

revolving loan fund (RLF) grants. These tools, when applied individually or in combination, can be tailored to meet

the special development needs of Delta communities. To implement the recommendations of The Mississippi Delta:

Beyond 2000, EDA will provide assistance to support long-term job creation, capital access, disaster mitigation, and

construction of vital infrastructure. This effort also supports the Administration’s New Markets initiative. New

Markets areas, such as the Delta, are among the few regions in the United States that have underutilized resources

and can accommodate growth without inflationary pressure.
Appendix 5

288 FY 2001 Annual Performance Plan