FY 1999 Annual Program Performance Report 159

Meeting Management Challenges

Overview

Secretary Daley and Deputy Secretary Mallett have made management a key priority of theirtenure. The Department’s achievements in FY 1999 include:

■ Improving Department-Wide Financial Management,

■ Implementing Procurement Innovations,

■ Enhancing Facilities Management,

■ Instituting a Digital Department,

■ Promoting Human Resources Initiatives,

■ Preparing for the Decennial Census, and

■ Facing Future Challenges.

Improving Department-Wide Financial Management

The Department took several steps to ensure accurate financial data that complies with Federal

laws and regulations and to provide Commerce executives with timely, accurate financial

information. 

Received a clean financial statement: For the first time, Commerce received an unqualified

(or “clean”) audit opinion on its Consolidated Financial Statement for FY 1999, and individually

for all bureaus.

Reduced reportable conditions and material weaknesses: Under Secretary Daley’s

leadership, beginning in January 1997, the Department reduced material weaknesses from 21

to 7 and reduced reportable conditions from 38 to 12.

Continued implementation of CAMS: The Department continued to successfully install

financial systems. The Commerce Administrative Management System (CAMS) is linking the

Department’s financial data into a single system. The system is already in operation at the

Bureau of Census. In FY 1999, the Department began implementing CAMS in NOAA and EDA.

Appointed CFOs in all the bureaus: In FY 1999, the Department completed the appointment

of highly qualified Chief Financial Officers or equivalent positions in all the bureaus, by filling the

remaining vacancies in EDA, the International Trade Administration, and the Patent and

Trademark Office. 

Enhanced our customer service tools: 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 financial

management objectives and approaches.
160 FY 1999 Annual Program Performance Report

Commerce became a recognized leader in procurement reform. Key changes include:

Became the No. 1 department in government procurement for small, minority and

women- owned businesses: Commerce is now rated as the highest government agency in

awards to small and disadvantaged businesses. According to the SBA, the Commerce

Department awarded over 40 percent of its total procurement dollars to small business in

FY 1999, putting the Department in first place. This performance level was nearly double the

government-wide goal of 23 percent. The Department’s performance vis-à-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. 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.”

Created first government-wide set aside for small businesses: The Department created the

first government-wide acquisition contract (GWAC) set-aside 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 business over

the next five years.

Increased access and opportunities for small disadvantaged businesses: The Department

implemented several changes to increase contract opportunities for small businesses.

Commerce revised its Quick Reaction Task Ordering (QRTO) agreement — the equivalent of a

“retainer” — to include five minority firms. The five minority firms were pre-qualified to bid on

management assistance services which require quick attention. As another avenue for

increasing access, the Department participates in a waiver program that allows direct solicitation

for contracts up to $100,000 of small, disadvantaged firms from SBA’s extensive database.

Enhancing Facilities Management

Improvements in facilities management provide opportunities for significant cost-savings, and

the Department focused on several important areas.

Streamlined field offices: The Department reduced the number of the bureaus’ domestic field

offices by 20 percent since the fourth quarter of FY 1998. From the base of 747, the number of

domestic field offices was reduced to a total of 591. These reductions reflect efforts to achieve

economies through consolidation, collocation, and cross-servicing.

Reviewed leasing alternatives: The Department instituted oversight of all field office

requirements, requiring mission critical justification and adherence to cost and efficiency

standards. Nearly 100 domestic field offices had leases that were 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, with the remaining 56 leases to be reviewed during 2000. To

support potential future cost savings, most of the lease renewals include options such as monthto-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. 

Increased energy efficiency: During FY 1999, the Department achieved a 33% reduction in

energy usage, compared to the FY 1985 baseline. That performance exceeds the FY 2005 goal

and is the 5th consecutive year in which Commerce surpassed the federal goal. This reduction

produces savings and cost avoidances of $4 million a year. The environmental benefits are also

significant — annually saving 30 million kilowatt hours of electricity and reducing carbon

emissions by 8,000 metric tons. The Department’s headquarters is designated as a “showcase”
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Contracts for our laboratories in Seattle, Washington. We are currently installing renewable

geothermal energy systems in many of our east coast laboratories.

Better Management of Information Technology

Information technology will continue to be a major driver of the Department’s innovations in

management. In FY 1999, the Department took several steps to improve management of

IT, including:

Promoted the use of CD-ROM for Y2K activities: The Department developed a customerfriendly Y2K Self Help Tool on CD-ROM that was available in 11 languages. This tool was used

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. CD-ROM technology was also used to disseminate official budget and

GPRA documents for ready reference by a range of users.

Implemented a comprehensive IT review process: The Department set up an Information

Technology Review Board (ITRB) under the Chief Information Officer (CIO). The Board

conducts comprehensive reviews of all information technology planning, acquisition, and

deployment. Five-year capital planning is also regularly examined by the Board. The capital

planning reviews have led to lower expenditures, the rejection of unnecessary investments, the

elimination of low priority projects, the adoption of centralized standards, and accelerated

procurements.

Modernized the National Weather Service: The Department completed the installation of a

major software upgrade — the Advanced Weather Interactive Processing System — at the

National Weather Service on schedule and within budget. This achievement greatly enhances

the Department’s forecasting capabilities. In FY 1999, for example, the Department increased

lead time notice of severe weather events – tornadoes and flash floods – by 20% over 1997 and

will increase lead times by 50% by 2005. This achievement greatly enhances the Department’s

forecasting capabilities. As a result, modernization was dropped as a material weakness by the

Inspector General.

Achieved Y2K compliance: In September 1999, the Department completed Y2K compliance

for 100 percent of its 473 mission-critical systems (ships, satellites, weather equipment). Our

693 non-mission critical systems were made compliant prior to year’s end. As a result of these

preparations, Commerce experienced no Y2K related problems. 

Human Resource Initiatives

Human resources management remains one of the highest priorities for the Department.

Commerce has taken bold steps in this area, including the following: 

Inaugurated the SES 2000 Program: The Department created this program in partnership with

the Senior Executive Service Association to enhance the quality and capabilities of its senior

executives. SES 2000 includes: (a) sabbaticals, so our executives may engage in highly

focused development projects, (b) candidate development, to identify promising senior executive

candidates and develop their capabilities, (c) mobility, to rotate SES members to align

management expertise to key management problems, and (d) training, to ensure our executives

possess state-of-the-art knowledge pertinent to their performance.
y

(COOL) – in FY 1999. COOL, an automated, web-based vacancy announcement, application,

and referral system, is available 24 hours a day, 7 days a week. COOL permits potential job

applicants to review announcements and submit on-line applications. The system also greatly

reduces the time needed to rank and select applicants. In pilot testing, COOL reduced average

processing time from 41/2-to-51/2 months in the traditional approach to 2-to-3 weeks.

Promoted income independence: Under this President’s Welfare-to-Work initiative, Secretary

Daley committed the Department of Commerce to hiring 4,180 individuals formerly dependent

upon welfare, nearly 40 percent of the total Federal goal of 10,680. During FY 1999 alone, the

Department hired 4,297, way ahead of schedule, and had hired a total number of 5,553 during

the FY 1997-1999 time period, dramatically exceeding the established goal.

Preparing for the Best Decennial Census in U.S. History

Few projects are more important to the Nation than the decennial Census. Preparations to

conduct the Census were top priority.

Used advanced technology to support the Census: The Census Bureau adopted the best

technology to expedite results and improve accuracy. The Bureau will test Internet filings and

compare results with traditional collection methods. Up-to-date systems were introduced to

track preparations, schedules, logistics and administrative support. State-of-the-art custom

software was employed to provide senior managers with critical performance indicators. For the

first time ever, decennial Census enumerators will use portable computers to enter data on-site

during interviews. Files will be downloaded, eliminating follow-up entry procedures and the

potential for mis-coding errors. Using high speed computers, data will be tested, subjected to

statistical verification analyses, and then used for apportionment and analyses, which will be

available to the public through the Internet and in other advanced electronic media.

Prepared for the Nation’s largest peacetime mobilization: During FY 1999, a dress

rehearsal held in three sites around the country came in on-budget and produced better results

than anticipated. Most elements of the Department’s plans for the decennial were tested and

evaluated during the dress rehearsal. Population numbers were produced on time, and the

numbers, including data adjusted using modern statistical methods, compared favorably with

benchmarks. The Bureau prepared for a major publicity campaign, including outreach in 17

languages, that would be launched in FY 2000. Plans were completed for printing

questionnaires in six languages, guides in over 40 languages, and setting up Questionnaire

Assistance Centers in local communities. The Census 2000 sponsorship program entered the

final stages of bringing together state and local governments, non-governmental organizations,

and businesses to improve cooperation and enumeration.

Facing Future Challenges

During FY 1999, the Department took important first steps to address longer-term

management challenges of great importance to the Department, the Federal government, and

the Nation. While there are no short-term solutions to these challenges, decisive first steps

have been accomplished.

Began partnering with Minority Serving Institutions (MSIs): In September 1999, the

Department held a comprehensive Opportunities Conference for MSIs. The conference

highlighted programs in which colleges and universities are currently participating, such as

162 FY 1999 Annual Program Performance Report
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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. 

Established oversight of capital budgeting: The Department established rigorous monitoring

of its capital budget program. Under new controls, the Department conducts a thorough review

of plans for design, renovation, and construction of facilities and monitors their execution. A

project review team, comprising Departmental and bureau members, meets weekly to monitor

plans, costs, schedule, and budget for the multi-year construction of NIST’s Advanced

Measurement Laboratory, which will cost over $100 million. Similar reviews are being

conducted on other major projects, including a $6 million design for new fisheries laboratories in

Honolulu, and a multi-year plan involving NOAA and Census that will construct a new building

and renovate two others at the Department’s Suitland, Maryland campus. 

Began Exploiting Information Technology: The Department is creating a fully interactive

digital department. During the coming year, the Department will provide Internet access for the

public through a site organized from the customers’ perspective. The site will link all information

pertaining to a specific subject in a one-stop electronic visit. In the following two years,

Commerce will provide secure Internet access to all its employees throughout the world and

significantly expand the administrative processes available electronically. The Department will

also review its computer data centers to explore cost saving opportunities through consolidation.

These centers are estimated to cost nearly $150 million annually.

Developed an Hispanic Employment Plan: Secretary Daley issued an Hispanic Employment

Plan in September 1999 to build a pool of qualified Hispanic candidates and to increase

Hispanic representation 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. 

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