Department of Education

PROGRAM ADMINISTRATION

Fiscal Year 2019 Budget Request

CONTENTS

Page

Appropriations Language ........................................................................................................X-1

Analysis of Language Provisions and Changes.......................................................................X-2

Amounts Available for Obligation ............................................................................................X-3

Obligations by Object Classification ........................................................................................X-4

Summary of Changes .............................................................................................................X-5

Authorizing Legislation............................................................................................................X-7

Appropriations History.............................................................................................................X-8

Significant Items in FY 2018 Appropriations Report ................................................................X-9

Summary of Request ............................................................................................................X-10

Salaries and Expenses .....................................................................................................X-11

Building Modernization .....................................................................................................X-23

Supplementary Tables:

Full-Time Equivalent (FTE) Employment by Office ...........................................................X-26

Summary of Budget Authority by Principal Office..............................................................X-27
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Appropriations Language

For carrying out, to the extent not otherwise provided, the Department of Education 

Organization Act, including rental of conference rooms in the District of Columbia and hire of

three passenger motor vehicles, $459,257,000, of which up to $26,751,000, to remain available 

until expended, may be for relocation of, and renovation of buildings occupied by Department 

staff.

1

NOTES

A full year 2018 appropriation for this account was not enacted at the time the fiscal year 2019 Budget was 

prepared; therefore, the Budget assumes this account is operating under the Continuing Appropriations Act, 2018

(Division D of P.L. 115-56, as amended). The amounts included for 2018 reflect the annualized level provided by the 

continuing resolution.

Each language provision that is followed by a footnote reference is explained in the Analysis of Language 

Provisions and Changes document, which follows the appropriation language.
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Analysis of Language Provisions and Changes

Language Provision Explanation

1

...of which up to $26,751,000, to remain 

available until expended, may be for 

relocation of, and renovation of buildings 

occupied by Department staff:

This language provides for the funds to 

remain available until expended for relocation 

of and renovations of buildings occupied by 

Department staff.
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Amounts Available for Obligation

(dollars in thousands)

Appropriation and Adjustments 2017

2018 

Annualized CR 2019

Discretionary budget authority:

Discretionar y budget authority:Appropriation................................................ $432,000 $432,000 $459,257

Discretionar y budget authority:Across-the-board reduction .......................... 0 -2,934 0

Subtotal, discretionary 

appropriation..............................

432,000 429,066 459,257

Unobligated balance, start of year...................... 79 109 0

Recovery of prior-year obligations ...................... 437 0 0

Unobligated balance expiring ............................. -552 0 0

Unobligated balance, end of year....................... -109 0 0

Total, direct obligations ................................... 431,855 429,175 459,257
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Obligations by Object Classification

(dollars in thousands)

Obj ect class number Object Class

2017

Actual

2018

Annualized 

CR

2019

Request

Change from 

2018 to 2019

11.10 Full-time permanent $188,271 $194,987 $189,107 -$5,880

11.31 Full-time temporary 14,224 1,319 3,802 2,483

11.32 Part-time 2,300 0 0 0

11.33 Consultants 220 0 0 0 

11.51 Overtime 438 354 415 61

11.52 Awards 2,445 2,525 2,525 0

11.8 Other compensation 129 0 0 0

Subtotal R ow

Subtotal, Personnel Comp. 208,027 199,185 195,849 -3,336

12.00 Benefits 64,455 63,808 63,040 -768

12.15 Student Loan Repayment 0 60 60 0

13.10 Benefits for former personnel 539 1,568 340 -1,228

Subtotal R ow

Subtotal, Benefits 64,994 65,436 63,440 -1,996

21.00 Travel 2,252 3,695 4,028 333

22.00 Transportation of things 5 1 1 0 

23.10 Rental Payments to GSA 32,989 36,328 41,977 5,649

23.31 Communications 531 513 949 436

23.32 Postage/fees 26 175 124 -51

Subtotal R ow

Subtotal, 23 33,546 37,016 43,050 6,034

24.00 Printing & Reproduction 938 875 938 63

25.10 Advisory and Assistance Svcs 3,701 2,372 2,333 -39

25.21 Other Services 14,529 17,399 21,760 4,361

25.22 Training/Tuition/Contracts 1,095 2,209 2,894 685

25.23 Field Readers 23 0 0 -0

25.30 Goods/Services from Gov't 23,819 23,076 23,387 311

25.40 Operations/Maint of Facilities 0 0 0 0 

25.71 Operations/Maint of Equipment 785 1,443 1,443 0 

25.72 IT Services/Contracts 76,630 72,127 75,491 3,364

Subtotal R ow

Subtotal, 25 120,582 118,626 127,308 8,682

26.00 Supplies 394 503 511 8

31.01 IT Equipment/Software 593 278 353 75

31.03 Other Equipment 295 3,032 1,251 -1,781

Subtotal R ow

Subtotal, 31 888 3,310 1,604 -1,706

32.00 Building Alterations 219 528 22,528 22,000

42.2 Settlement of Claims former Employees 10 0 0 0

43.01 Prompt Payment Interest 0 0 0 0

Total Row

Total, Obligations 431,855 429,175 459,257 30,082

Total, Pers. Comp. & Ben. 273,021 264,621 259,289 -5,332

Total, Non-Personnel 158,834 164,554 199,968 35,414
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Summary of Changes

(dollars in thousands)

2018................................................................................................. $429,066

2019................................................................................................. 459,257

Net Change......................................................................... +30,191

Increases:

2018

Annualized CR

Change from

Annualized CR

Built in:

Built in: Increase in rent for annual increases for tax and 

operating cost escalations. $36,328 +$5,649

Program:

Program Increase in overtime. 354 +61

Program Increase in travel. 3,695 +333

Program Increase in training. 2,209 +685

Program Increase in printing and supplies. 1,378 +71

Program Increase in communications for the OSEP GRADS 

360 database. 513 +436

Program Increase in other services for the new Teacher 

Recognition Ambassador program. 0 +1,400

Program Increase in other services for design services for 

Dallas and New York regional offices renovation, 

PCP, LBJ 5th floor and 3rd through 7th floor

headquarters modernization. 0 +3,070

Program Increase in goods/services from the Government,

primarily for security rent and Federal Personnel 

and Payroll System. 23,076 +311

Program Increase in IT technology service/contracts primarily 

for Enterprise Cybersecurity. 72,127 +3,364

Program Increase in IT technology equipment/software,

primarily for the Database management system 

(Asset Management). 278 +75

Program Increase in building alterations, primarily LBJ 5th, 3rd

- 7th floors and PCP headquarters offices, and

Dallas, New York regional offices modernization. 0 +22,000

Subtotal, increases +37,455
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Summary of Changes

(dollars in thousands)

Decreases:

2018

Annualized CR

Change from

Annualized CR

Built in:

Built in Net decrease in personnel compensation due lower 

FTE. $193,306 -$3,397

Built in Net decrease in benefits due to lower FTE. 65,436 -1,996

Program:

Program Decrease in postage. 175 -51

Program Decrease in advisory and assistance services. 2,372 -39

Program Decrease in other equipment. 3,032 -1,781

Subtotal, decreases -7,264

Net Change +30,191
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Authorizing Legislation

(dollars in thousands)

Activity

2018 

Authorized

2018 

Annualized CR

2019 

Authorized

2019 

Request

Salaries and Expenses (DEOA) Indefinite $429,066 Indefinite $432,506

Building Modernization (DEOA) Indefinite 0 Indefinite

 

26,751

Total appropriation 429,066 459,257

X-7
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Appropriations History

(dollars in thousands)

Year

Budget 

Estimate 

to Congress

House 

Allowance Footnote

Senate 

Allowance Footnote AppropriationFootnote

2010 $456,500 $452,200 $452,2001 $456,200

2011 492,488 465,0002 492,4881 455,2883

2012 479,038 449,8154 449,0744 446,259

2013 448,470 446,2595 448,4705 430,605

2014 430,605 N/A6 422,9171 422,917

2015 442,000 N/A6 426,9177 411,000

2016 474,089 410,0008391,3268432,000

2017 474,827 432,0009432,0009432,0009

2018 429,066 287,15710 430,00010 429,06610

2019 459,257

 

1 The level for the Senate allowance reflects Committee action only.

2 The level for the House allowance reflects the House-passed full-year continuing resolution. 3 The level for appropriation reflects the Department of Defense and Full-Year Continuing Appropriations 

Act, 2011 (P.L. 112-10). 4 The level for the House allowance reflects an introduced bill and the level for the Senate allowance 

reflects Senate Committee action only.

5 The levels for the House and Senate allowances reflect action on the regular annual 2013 

appropriations bill, which proceeded in the 112th Congress only through the House Subcommittee and 

the Senate Committee.

6 The House allowance is shown as N/A because there was no Subcommittee action.

7 The level for the Senate allowance reflects Senate Subcommittee action only.

8 The levels for House and Senate allowances reflect action on the regular annual 2016 appropriations 

bill, which proceeded in the 114th Congress only through the House Committee and Senate Committee.

9 The levels for the House and Senate allowances reflect Committee action on the regular annual 2017 

appropriations bill; the Appropriation reflects the Consolidated Appropriations Act, 2017. 10 The levels for the House reflect floor action on an Omnibus appropriation bill; Senate allowances reflect 

Committee action on the regular annual 2018 appropriations bill; the Appropriation reflects the annualized 

Continuing Resolutions level.
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Significant Items in FY 2018 Appropriations Report

Education Costs Related to Illegal Immigration

House: The Committee requests an update to the report submitted to Congress by the 

Department of Education on the topic as it appears in the explanatory statement 

accompanying division H of the Consolidated Appropriations Act, 2016 

(P.L. 114-113).

Response: The Department will comply as directed.
X-10

X-10

Click here for accessible version 

Summary of Request

DEPARTMENT OF EDUCATION FISCAL YEAR 2019 PRESIDENT'S BUDGET 

(in thousands of dollars)

Amount Percent

Program Administration (DEOA)

1. Salaries and expenses D 432,000 429,066 432,506 3,440 0.80%

 2. Building Modernization D 0 0 26,751 26,751 ---

Total 432,000 429,066 459,257 30,191 7.04%

NOTES: D = discretionary program; M = mandatory program

Detail may not add to totals due to rounding. 

2019 President's Budget 

Category Compared to 2018 Annualized CR 

Code

2017 

Appropriation 

2018 

Annualized CR

2019 

President's 

Budget
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Salaries and Expenses

(Department of Education Organization Act)

(dollars in thousands)

FY 2019 Authorization: Indefinite

Budget Authority:

Annual Fund 2018 

Annualized CR

2019

Request

Change from

Annualized CR

Personnel Compensation and 

Benefits Costs $264,621 $259,289 -$5,332

Non-Personnel Costs 164,445 173,217 +8,772

Total $429,066 432,506 +3,440

FTE 1,648 1,615 -33

____________________________________________________________________________

PROGRAM DESCRIPTION

The Program Administration account provides a significant portion of the funding and staff to 

administer the Department's programs and activities in the following program and staff offices:

Program offices:

Office of Postsecondary Education

Office of Elementary and Secondary Education

Office of English Language Acquisition, Language Enhancement, and Academic 

Achievement for Limited English Proficient Students

Office of Special Education and Rehabilitative Services

Office of Career, Technical, and Adult Education

Institute of Education Sciences

Office of Innovation and Improvement

Staff offices:

Office of the Secretary

Office of the Deputy Secretary

Office of the Under Secretary

Office of the General Counsel

Office of Planning, Evaluation, and Policy Development

Office of Communications and Outreach

Office of Legislation and Congressional Affairs

Office of Management

Office of the Chief Financial Officer

Office of the Chief Information Officer
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Program offices are the front-line administrators of the Department’s programs, providing 

leadership and financial support for education programs assisting preschoolers; elementary,

secondary, and college students; and adults. Program offices are critical to managing the 

Department’s multi-billion dollar program budget through activities including grant making, 

grantee technical assistance, grant monitoring, and contract management. In addition, the 

offices support research and demonstration projects to improve education and disseminate

information on research findings and education statistics.

Staff offices provide the policy, legal, management, and financial support needed to help the 

Department fulfill its mission. These offices are vital to the day-to-day operation of the 

Department and provide policy leadership and administration of key Departmental priorities.

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2014 ............................................................................. 422,917

2015 ............................................................................. 418,2601

2016 ............................................................................. 431,000

2017 ............................................................................. 432,000

2018 ............................................................................. 429,066

 

1 Includes $4,740 thousand transferred to the Department of Health and Human Services per Section 491 

of the Workforce Innovation and Opportunity Act, P.L. 113-128. Also includes $12,000 thousand 

transferred from the Student Aid Administration and Student Financial Assistance accounts under the 

transfer authority included in Section 304 of the Department of Education Appropriations Act, 2015.

FY 2019 BUDGET REQUEST

The Department is requesting $432.5 million for the fiscal year 2019 Salaries and Expenses

budget, which is $3.4 million over the fiscal year 2018 Annualized CR level. Appropriations for 

the Program Administration account have declined significantly in recent years; the Department 

is operating with less money in fiscal year 2018 than it did in 2010, despite increases in pay 

rates, inflation, physical and information technology (IT) security needs, and other Government 

requirements that stem from recent IT security breaches in other Federal agencies and the 

private sector. Even with the reduced appropriations, the Department has managed to continue 

to deliver on its core mission with lower administrative costs by working more efficiently and 

improving its acquisition and financial management, without compromising effectiveness.

After the Departments of Defense, Veterans Affairs, and Health and Human Services, ED has 

the fourth largest discretionary budget of any federal agency. When comparing federal civilian 

employment in the executive branch, ED’s workforce is smaller than all other Cabinet agencies.
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Salaries and Expenses

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While this budget submission highlights many of the cost reducing measures that ED has 

already implemented, it also highlights that any additional workforce reductions must be 

considered carefully to ensure that effectiveness will not be compromised.

On March 13, 2017, the President signed Executive Order 13781, “Comprehensive Plan for 

Reorganizing the Executive Branch” (EO), directing the Office of Management and Budget 

(OMB) to submit a comprehensive plan to reorganize Executive Branch departments and 

agencies. On April 12, 2017, OMB issued a “Memorandum for Heads of Executive 

Departments and Agencies” (OMB memo) providing guidance on implementing the EO.

To respond to the Executive Order (EO), ED took a number of short term steps to ensure that its 

positions are dedicated to mission critical work. In fiscal year 2017, the Program Administration 

budget supported 1,753 Full-Time Equivalents (FTE) Employment. The fiscal year 2018 

Annualized CR level includes funding to support 1,648 FTE, a decrease of 105 FTE, addressing 

ED’s core responsibilities.

Given the uncertainty of final fiscal year 2018 appropriations levels, ED has taken meaningful 

steps to achieve this FTE reduction. First, the Secretary made the decision to extend the 

government-wide hiring freeze until the end of fiscal year 2018, which has already resulted in a 

reduced workforce. ED has also taken great care to ensure that exceptions to the hiring freeze 

are for positions that perform or protect the most critical work and data of ED. It has also 

prioritized positions for high performing, but less costly positions, including Presidential 

Management Fellows (PMFs), Pathways, and merit promotion opportunities available for GS13s and below. Offices that have higher attrition rates than ED’s average have been prioritized 

in the Department’s limited hiring exception process. Additional rounds of the hiring exception 

process will occur in fiscal year 2018, with exception approvals assumed to occur at rates

slightly higher than the first round completed in fiscal year 2017.

In addition to the hiring freeze, ED has reduced the number of political appointees in its 

budget—typically about 150 FTE, including in fiscal year 2016, to 100.

ED offered a Voluntary Early Retirement Authority (VERA)/Voluntary Separation Incentive 

Payment (VSIP) at the beginning of fiscal year 2018 and 69 employees accepted. In general, 

buyout positions may be backfilled, but generally at lower grades and after a time lag to allow 

for fiscal year 2018 salary savings to materialize. 

The Department recently reviewed several key work functions that are managed by a number of 

ED offices. This review will help determine whether the identified functions should be 

consolidated, whether there were non-core, non-essential activities performed by ED staff that 

could be eliminated and, in conjunction with the federal property review, and whether ED could 

consolidate building space in its regional offices and Potomac Center Plaza (PCP) in 

Washington, D.C.

ED’s Agency Reform Plan aims to improve services to the public and to strengthen the support 

ED provides to states, districts, and postsecondary institutions in their efforts to provide a highquality education to all students. ED can better serve the public by providing regulatory relief 
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Salaries and Expenses

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and by improving its decision-making processes and by identifying whether areas of duplication, 

inefficiency, or misalignment with mission exist.

The Department is in the process of reviewing the FTE implications associated with its Agency 

Reform Plan. In the interim, the Program Administration budget submission assumes that a 

hiring freeze (with a managed exception process) continues for employees funded by the 

Program Administration account, resulting in 33 fewer FTEs from the fiscal year 2018 

Annualized CR level. 

The chart below provides detail on the Program Administration request by type of cost.

STAFFING AND COSTS SUMMARY

The fiscal year 2019 request includes funding for 1,615 FTE, a decrease of 33 FTE below the 

fiscal year 2018 level.

Personnel Compensation and Benefits (PC&B) Costs

The fiscal year 2019 request includes $259.3 million for Personnel Compensation and Benefits

to support 17 departmental offices. This is a decrease of $5.3 million below the fiscal year 2018 

Annualized CR level. The fiscal year 2019 budget request includes a net decrease of 33 FTE.

Staffing levels are at historical lows, with many vacancies being consolidated with existing 

positions. The Department continues to operate under a full hiring freeze, with limited hiring 

exceptions granted for only the most critical positions. A 10-year history of staffing is shown in 

the following table.

Contracts

23.3%, $100.8

Other Non-Personnel 

7%, $30.4

Overhead

(Rent)

9.7%, $42

Personnel 

Compensation & 

Benefits

60.0%, $259.3

FY 2019 Salaries & Expenses Costs by Category

($ in millions)

 PC&B and fixed overhead costs comprise 70% of the Program Administration budget.
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Program Administration FTE Usage (Fiscal Year 2010 – FY 2019)

FY 

2010

FY 

2011

FY 

2012

FY 

2013

FY 

2014

FY 

2015

FY 

2016

FY 

2017

FY 

2018 

Est.

FY 

2019

Est.

2,024 2,128 2,053 1,942 1,898 1,912 1,888 1,753 1,648 1,615

Non-Personnel Costs

The total request for Non-Personnel activities for fiscal year 2019 is $173.2 million, an increase 

of $8.7 million over the fiscal year 2018 Annualized CR level. Non-Personnel costs cover such 

items as travel, rent, mail, telephones, utilities, printing, Information Technology (IT), contractual 

services, equipment, supplies, and other overhead departmental services.

Departmental Centralized Services

Approximately 71 percent of the total non-personnel budget request is to cover Program 

Administration’s share of the Department’s centralized services. The centralized services 

request totals $123.1 million for fiscal year 2019, an increase of $6.2 million over the fiscal year 

2018 Annualized CR level. The major centralized service items include overhead costs for: rent 

to the U.S. General Services Administration (GSA), interagency agreements for services such 

as payroll processing, guard services, background security investigations, communications, and 

IT services and contracts. The communications and IT amounts will be used primarily for the 

Department IT contracts, which cover IT equipment, telecommunications, IT processing 

services, network support, end-user support, maintenance, and improvements.

The following section provides detailed information on the Department’s top priority areas.

Department Priorities

Information Technology (IT) – Centralized services

IT SECURITY

The Office of the Chief Information Officer oversees IT projects that provide security for the 

Department’s IT systems.

Several high-profile Governmentwide security breaches resulting in the compromise of sensitive 

personal data have reinforced the importance of the Department’s IT security investments.

The Enterprise Cybersecurity Program (ECP) activities and investment goals include:

• Enhanced protection of Educations (ED) high value assets (HVAs);

• Robust implementation of the Cybersecurity Framework functions (Identify, Protect, 

Detect, Respond, Recover);
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• Improved situational awareness;

• Enhanced network monitoring;

• Timely incident response;

• Consistent and formal security authorizations for all FISMA information systems;

• Timely mitigation of vulnerabilities to acceptable risk levels; and,

• Updated documentation of ECP policies, processes and procedures. This investment 

also supports a Departmental risk-based security authorization approach via National 

Institute of Standards and Technology (NIST) guidelines.

The scope of ECP investments is primarily focused on improving security for the Department’s 

primary network infrastructure (Portfolio of Integrated Value-Oriented Technologies (PIVOT))

and the applications and systems that are hosted on that primary network infrastructure, and/or 

hosted in the Federal Student Aid (FSA) Virtual Data Center. One of the significant challenges 

that ED will work to address is that the large number of ED applications and information 

technology (IT) systems currently externally hosted at contractor managed sites across the 

country are fully compliant with Federal and ED cybersecurity and privacy policy and guidelines.

The total request for these projects is $16.8 million, an increase of $2.2 million over the fiscal 

year 2018 Annualized CR level. A portion of IT funding is provided by the Department’s other 

Salaries and Expenses accounts. The total request across all accounts for these projects is 

$35 million.

EDCAPS

Funding for Education Central Automated Processing System (EDCAPS) comes from the 

Program Administration and Student Aid Administration accounts.

The funds support continued operations and enhancement of the EDCAPS core financial 

system, which includes five major components:

• G5 (grant making system);

• Contracts and Purchasing Support System (CPSS) (contracts and procurement system);

• Financial Management Systems Software (FMSS) (general ledger, accounting, 

reporting, budget execution, funds control);

• Integrated Support Services; and 

• Travel System.

In fiscal year 2017, a critical upgrade to the core financial management system, from Oracle 

Financials version 11i to Oracle Financials Release 12 (R12) was started in order to prevent 

security risks to the Department’s data and to continue receiving regular support from Oracle.

The Department had to delay the Oracle upgrade and rely on short-term security patches 

because appropriation levels have not supported the upgrade of system. The current system is 

on extended support at a premium cost to the Department, and patches are no longer an option 

to keep the system secure. A two year effort is currently underway to upgrade the financial 

system to R12.
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The Phase 1 assessment stage began on January 23, 2017 and was completed on June 30, 

2017. Major activities during this phase included:

• Building Linux servers for the sandbox: development, testing, and training environments;

• Installing the database environment;

• Migrating of data to the Linux Platform;

• Installing the R12 application in a development environment;

• Upgrading the R12 application from version 12.2.0 to version 12.2.6;

• Performing an assessment of the R12 functions with a comparison to the current 11i 

version; and

• Forming the various teams of subject matter experts into functional subgroups.

The Phase 2 Upgrade activities started immediately upon completion of Phase 1 and will 

continue through deployment, which is scheduled for November 2018. Major activities in this 

phase include:

• Configuring Applications for Payments, Vendors, Accounts Receivable, Accounts 

Payable, Federal Administrator, Purchasing, General Ledger, and Sub-ledger 

Accounting;

• Developing the interfaces to FMSS for the G5 Grants Management System, the 

Contracts and Purchasing Support System (CPSS), the FSA FMS, the E2 travel system, 

the Nortridge system, and Hyperion Budget planning system;

• Creating the Communication Plan, the Training Approach and Curriculum, and the 

Applications and Integration Test Plan;

• Establishing User Acceptance Test Environment and the Performance Test 

Environment;

• Executing of Conference Room Pilots (CRPs) 1 - 3. CRPs provide an opportunity for 

stakeholders to experience and comment on the system functions prior to finalization of 

the configurations;

• Developing financial reports including the Department-wide financial statements;

• Configuring all security and system alert features;

• Incorporating new R12 features into the business functions;

• Developing ADI capabilities;

• Establishing the Production Environment;

• Performing integration testing, performance testing, End-to End testing;

• Executing a mock cut-over;

• Performing User Acceptance Testing;

• Executing cut-over.

The Program Administration request for these projects is $5.9 million. A portion of IT funding is 

provided by the Department’s other Salaries and Expenses accounts. The total request across 

all accounts for these projects is $12.1 million.
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PIVOT

The Portfolio of Integrated Value-Oriented Technologies (PIVOT) contracts are scheduled to 

replace the Department’s EDUCATE network services and IT infrastructure contract, which 

expired in November 2017 with the option to extend services through May 2018. This contract 

is the largest dollar value contract funded by the Program Administration account, and is 

essential to the operations of every Department office, providing IT hardware, software, network 

connectivity (including remote network access), data storage, technical support, email, wireless, 

and mobile phone services.

The Department gathered information from EDUCATE customers to help guide the 

development of the new contract solicitation. The PIVOT contracts are expected to further the 

Department’s effort to leverage cloud and other shared services in an effort to improve 

efficiency and maximize flexibility, while improving IT service levels and the underlying 

technology. A continued Department goal is to ensure that the IT platform supports improved 

services to stakeholders; reduces operational risk; measures and improves performance and 

accountability; enhances security and privacy; and optimizes, standardizes, and consolidates 

the information management and technology infrastructure.

The PIVOT contract framework will consist of six contracts, including:

Portfolio of Integrated Value-Oriented Technologies (PIVOT) Contract

Contract Description Solicitation Release Date

Planned Award 

Date

PIVOT - Integrator and EndUser Services (I)Integration and Performance 

Management, End User Computing 

and Helpdesk, Unified 

Communications, Multimedia and 

Enterprise Security

December 2016

(proposals were received 

February 2017)

February 2018

PIVOT - Hosting (H) Data Storage and 

Systems/Application Hosting

March 2017

(proposals were received June 

2017)

February 2018

PIVOT - Network (N) Data Network Management June 2018 December 2018

PIVOT - Oversight (O) Program & Project Management 

Support, IT Performance Monitoring 

and IT Technical Expertise

August 2017 September 2017

AWARDED

PIVOT - Printers (P) Printing Services, Scanning and 

Copier Services

October 2017 February 2018

PIVOT - Mobile Services (M) Mobile Device procurement, 

provision and deployment

March 2018 July 2018
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Funding of $26.8 million is budgeted for fiscal year 2019 for the PIVOT contracts, which is the 

same as the fiscal year 2018 Annualized CR level. This amount represents solely the Program 

Administration account’s share of total costs; the total budgeted for this investment is 

$52.1 million. The balance of the funding needed is included in the budget requests for the 

Department’s other Salaries and Expenses accounts.

Department Priority

Information Technology (IT) – Non-Centralized Services

Impact Aid Payment System

The Department is requesting $1.5 million in fiscal year 2019 for the final year of the redesign of 

the Impact Aid Payment system. The current system is not 508 compliant, lacks document 

management functionality to meet records management requirements, and lacks an automated 

interface with the Department’s grant system. In addition, ongoing maintenance has proven to 

be difficult; the system lacks transparency to the frustration of grantees, and relies on key 

software components that are no longer supported by vendors (e.g., PowerBuilder). The new 

Impact Aid system will add capabilities to meet higher security requirements and additional 

business needs that are not available with the legacy system. This will improve the customer 

experience for school districts and improve the speed and accuracy with which they receive 

their funding by reducing the reliance on physical documents, streamlining the e-application 

process and reduce manual processing, automating transmission of obligation and payment 

files to the Grants Management System (G5), using current and supported software, and 

reducing data errors. The Department has undertaken the Impact Aid System Redevelopment 

project to reduce operation and maintenance costs, while adapting a new solution with the 

capability of satisfying current business, functional and technical requirements now and into the 

future.

Other Information Technology (IT) – Centralized services

EDWeb

The Department’s internet site (www.ed.gov) provides a critical communications link to both its 

internal and external customers, including grantees, students, parents, educational institutions, 

Government Agencies, and contractors. The request for maintenance and enhancements in 

fiscal year 2019 is $1.7 million, same as the fiscal year 2018 Annualized CR level.

Funds will be used to migrate ed.gov content and applications to cloud-based hosting, as well 

as to provide regular website enhancements.

Other Information Technology (IT) – Non-Centralized Services

EDFacts

EDFacts is an information management solution of systems and services related to K-12 

education performance data. Systems provide web-based data collection, ad hoc and standard 
PROGRAM ADMINISTRATION

Salaries and Expenses

X-20

reporting, commercial-off-the-shelf software for business process management and metadata 

collection, a data warehouse centralizing K-12 data with data from other systems, and a 

commercial software survey. Services provided by EDFacts include data supplier conferences, 

data user and supplier assistance, technical assistance to States, custom reports, and training. 

EDFacts data is centralized with data from other ED investments such as financial grant 

information. EDFacts supports policy and budget decisions with a significant degree of 

accuracy and timeliness.

In fiscal year 2019, $11.2 million is requested for EDFacts. Due to budget constraints, the 

EDFacts contract was only partially funded during fiscal year 2017. The funds requested in 

fiscal year 2018 and fiscal year 2019 will be used to cover the shortfall and to help catch up on 

funding for steady state operations and maintenance costs, to continue system upgrades to 

tighten the security profile and respond to data submission innovations gaining interest among 

the states, to upgrade the EDFacts Metadata Repository for improvements in reference 

metadata, and to continue to enhance data quality and privacy processes.

Enterprise Risk Management Services and Tools

The Department requests a total of $1.5 million for fiscal year 2019 for the Enterprise Risk 

Management Services and Tools project, an increase of $600,000 over the fiscal year 2018

Annualized CR level. The increase in funding will be used to improve the existing Risk 

Management tools used by ED’s grant-making offices by developing the Tool to Access Grantee 

Risk (TAGR). This tool will be developed per user requirements and will help provide enhanced

functionality. Funds will also be used to leverage evidence-based data exploitation 

methodologies in social media and text mining to expand the Department's data-driven 

management of risks to principal offices and grantees' performance. In addition, funds are 

requested to perform risk analysis requirements mandated by the OMB grant administrative 

requirement under Title 2 Grants and Agreements. Funds also will support actionable, 

automated risk management services and tools, including: pre-award reports assessing the 

risks posed by prospective grantees; business intelligence for ED’s grant-making, grants 

programs, states, and grantees; data visualization; and principal office component calculations 

to inform risk-based program monitoring plans.

The intended result of this investment is proactive management of inherent risks present in the 

performance of federal direct assistance to minimize or mitigate risk of fragmentation, 

duplication, overlap, non-compliance, fraud, waste, and abuse by ED and its grantees. 

Online Application System

The Office of Communications and Outreach developed a new integrated digital service system, 

the Online Application System (OLAS), to facilitate submission and review of applications for 

three programs: the U.S. Presidential Scholars Program (PSP), School Ambassador Fellowship 

program (SAF), and the Student Volunteer Internship program (SVI). Fiscal year 2018 costs are 

to operate and maintain the implemented solution and complete production implementations for 

any remaining programs. By the end of fiscal year 2018, OLAS will be fully deployed. The 

fiscal year 2019 request of $154,000 is a decrease of $29,000 below the fiscal year 2018 

Annualized CR level.
PROGRAM ADMINISTRATION

Salaries and Expenses

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OSEP GRADS 360 and Customer Service Database

The OSEP GRADS 360 and Customer Service Database (OCSD) purpose is to develop and 

maintain an online automated environment that will: (1) allow OSEP to more efficiently and 

effectively administer the $12.2 billion IDEA formula grant program; (2) reduce the associated 

reporting burden for grantees (SEAs and State Departments of Health); and (3) increase 

transparency for the public and our key stakeholder groups. The fiscal year 2019 funding 

request is $877,000, an increase of $429,000 over the fiscal year 2018 Annualized CR level, to 

complete full implementation of the online automated system.

Non-Personnel Costs – Non-Information Technology (IT)

The Department’s fiscal year 2019 request includes little net change in other non-pay items. 

Funding for these projects includes only minor increases and decreases from the fiscal year 

2018 Annualized CR level in light of the critical increases being requested for information 

technology. The following section provides additional information on select non-pay projects.

Security Items for Personnel and Buildings

A total of $18.5 million is requested for security-related items including guard services, 

background investigations, and the implementation of the Continuity of Operations Plan. The 

Federal Protective Service (FPS) is responsible for setting overall security policy and in 

determining the costs of security items. The Department works with the FPS and other local 

and Federal law enforcement organizations to ensure the safety and security of the 

Department's many buildings, its classified information, and its employees. The Department’s 

security policies and procedures have been implemented in response to General Services 

Administration and Department of Homeland Security standards, and follow regulations set forth 

in HSPD-12, FISMA, and a series of Executive Orders. The request is an increase of $605,000 

above the fiscal year 2018 Annualized CR level for access security equipment and for HSPD-12 

PIV system.

Presidential Scholars Program

This program, started in 1964, recognizes the Nation’s most distinguished graduating high 

school seniors. Each year, the White House Commission on Presidential Scholars selects up to 

161 students for this honor. To support this program in fiscal year 2019 for the anticipated cost 

increase for the contract renewal, $792,000 is requested, an increase of $22,000 over the fiscal 

year 2018 Annualized CR level.

Teacher Recognition Ambassador Program

The Department requests $1.4 million for a new Teacher Recognition Ambassador Program. 

The program will honor teachers in elementary and secondary schools that make significant 

progress in closing achievement gaps. The Teacher Recognition program request is on par 

with similar Department programs like Blue Ribbon Schools.
PROGRAM ADMINISTRATION

Salaries and Expenses

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Randolph-Sheppard Arbitrations

A total of $472,000 is requested for fiscal year 2019 for Randolph-Sheppard arbitrations, the 

same as the fiscal year 2018 Annualized CR level. The Randolph-Sheppard Act authorizes a 

program to provide gainful employment for individuals who are blind to operate vending facilities 

on Federal and other property. The Rehabilitation Services Administration is required to 

administer the arbitration process that involves grievances for blind licensees, hearing and 

arbitration, non-compliance by Federal Departments and Agencies, and complaints by State 

licensing agencies. There has been a significant increase in the volume of Randolph-Sheppard 

arbitration cases over the last few fiscal years.
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Building Modernization

(Department of Education Organization Act)

(dollars in thousands)

FY 2019 Authorization: Indefinite

Budget Authority:

PROGRAM DESCRIPTION

The Building Modernization activity supports the related expenses necessary for the relocation 

of Department of Education staff or renovations of Department of Education buildings within the 

Washington, D.C. metropolitan area and in several regional offices.

Funding levels for the past 5 fiscal years were:

Fiscal Year (dollars in thousands)

2014 ........................................................................................ 0

2015 ........................................................................................ 0

2016 ................................................................................$1,000

2017 ........................................................................................ 01

2018 ........................................................................................ 0

 

1 The 2017 Appropriation Act provided authority for up to $1 million to remain available in Building 

Modernization, until expended, for relocation of, and renovation of buildings occupied by Department 

Staff. The Department chose not to use the authority due to the need to use the $1 million in the Program 

Administration Salaries and Expenses Account.

FY 2019 BUDGET REQUEST

The Department is requesting a total of $26.8 million for fiscal year 2019. The Department is 

actively working to utilize space more efficiently. In recent years the Presidential and OMB 

Memorandums, “Reduce the Footprint,” directed Agencies to reduce the total square footage of 

their domestic office and warehouse inventory. In response, the Department developed a 

comprehensive program to modernize and reduce occupied space, while improving efficiencies 

and utilization rates through consolidation and identified space savings through the expansion of 

telework, more efficient workspaces, and elimination of unneeded space. Rent is a large “fixed” 

cost that cannot be sustained in an era of declining, or even level, appropriations, and 

2018

Annualized CR

2019 

Request

Change from

Annualized CR

$0 $26,751 +$26,751
PROGRAM ADMINISTRATION

Building Modernization

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teleworking offers the opportunity to reduce space costs. The primary goal is to reduce the 

Department’s space footprint and associated out-year costs.

A total of $26.8 million is requested in fiscal year 2019 for Building Modernization, with a goal of 

reducing Department rent costs beginning in fiscal year 2020 and into the out years. Given the 

importance of this effort, GSA is also requesting funding in its Budget request to reduce overall 

ED rent by an estimated $11.2 million annually. With the reduction in staffing and Program 

Administration funding over the past 5 years, this funding is imperative to ensure that ED’s 

space is utilized in the most efficient manner possible and that taxpayer resources are focused 

on the operating costs that allow the Department to better serve students and their parents. As 

the Potomac Center Plaza (PCP) lease is soon set to expire, the FY 2019 request would ensure 

that the Department pursues all avenues possible to avoid spending more of its operating 

resources on rent increases. 

The funds requested in fiscal year 2019 are for the following purposes.

Headquarters Offices and Construction: 

• LBJ 5th floor modernization and consolidation: This project will double the 

density/utilization rate of the 5th floor at LBJ, which will provide space for the relocation of 

staff from another floor in the building – vacating the space for renovation.

• LBJ Modernization 3rd through 7th Floors: Following the completion of the 5th floor at 

LBJ, the remaining floors will be reconfigured and consolidated, doubling the 

density/utilization, and enabling the relocation of all staff from PCP space to LBJ (except 

for OCIO, OIG, and OM/OHA), by year 2023. This will result in a much smaller footprint 

at PCP (or replacement lease location), and will reduce overall ED rent an estimated 

$11.2 million annually.

• PCP Lease Expiration: The GSA lease (and ED Occupancy Agreement) at the current 

PCP location is at the end of its term with a lease expiration in March 2020, and will 

require a competitive procurement for a new lease.

• GSA has negotiated a short term lease extension, to allow for the procurement 

process, which is underway. Whether at the existing location or a new building, the 

new lease will be for a somewhat smaller space than currently utilized.

• The Department is in negotiations with GSA to delay any increase in LBJ rent 

charges until the Department is able to reduce space at PCP, in order to avoid any 

early rent increases before significant savings can be realized.

• As LBJ renovated space becomes available, space at PCP (or the new location) will 

be reduced further, until only OCIO, OIG, and OM/OHA remain in the leased 

location, at a similar density/utilization rate as the renovated LBJ space.

• Funds will pay for modernization of space that will be part of the new lease in the 

existing or for a very limited, “barebones” buildout (i.e., primarily furniture with very 

few walls) at a new location, anticipating relocation of most staff to LBJ.
PROGRAM ADMINISTRATION

Building Modernization

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Regional Offices and Construction:

• Dallas Regional Office: The March 2020 lease expiration in Dallas requires a 

competitive procurement for a new lease with project completion by the end of the lease 

expiration date. Within an overall framework of increasing efficiency of ED's Regional

Offices, additional vacant positions will be relocated from other Regions, allowing the 

release of leased space in other locations. In addition, the density/utilization rate of the 

Dallas space will be more than doubled from its current capacity, which will result in rent 

reductions of roughly $750,000 annually – even with the addition of more staff. 

• Chicago Regional Office: Construction will begin shortly on Chicago 

relocation/consolidation. The remaining costs for fiscal year 2019 are for moving costs 

and costs related to clean out of old space. The increased density/utilization rate in 

Chicago will result in a rent reduction of approximately $2 million annually.

• New York Regional Office: The current lease in New York is expiring in May of 2020. 

GSA has space at 26 Federal Plaza (Federal Building) that will accommodate the New 

York office. Federal buildings have many advantages, including typically lower rents and 

long-term future occupancy with no requirements to re-compete the lease. As part of the 

relocation, the density/utilization rate of the New York space will be more than doubled 

from its current capacity, which will result in rent reductions of roughly $1.5 million

annually. 
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Full-Time Equivalent (FTE) Employment by Office

OFFICE

2017

Actual

2018

Annualized CR

2019

Request

Change from 

2018 to 2019

Career, Technical, and Adult Education 73 69 64 -5

Chief Information Officer 109 108 100 -8

Chief Financial Officer 147 143 132 -11

Communications and Outreach 92 82 73 -9

Deputy Secretary 36 34 32 -2

Elementary and Secondary Education 214 195 180 -15

English Language Acquisition, Language 

Enhancement, and Academic Achievement 

for Limited English Proficient Students 17 15 14 -1

General Counsel 89 87 81 -6

Innovation and Improvement 73 64 58 -6

Institute of Education Sciences 181 166 151 -15

Legislation and Congressional Affairs 14 13 12 -1

Management 188 169 156 -13

Planning, Evaluation, and Policy Development 70 57 53 -4

Postsecondary Education 133 123 113 -10

Secretary* 92 122 213 91

Special Education and Rehabilitative Services 206 189 172 -17

Under Secretary 19 12 11 -1

Total 1,753 1,648 1,615 -33

NOTE: The Office of the Secretary’s FY 2018 and 2019 FTE levels reflect an increase of Schedule C employees as 

the new Administration’s team arrives. Many of these employees will ultimately move to other Department offices to 

fill key leadership positions. Also included in the Office of the Secretary FTE levels are estimated hiring exception 

waiver approvals over the next 2 years that will be also moved to other Department offices as they are approved and 

brought on board.
PROGRAM ADMINISTRATION

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Summary of Budget Authority by Principal Office

(dollars in thousands)

OFFICE 2017 BA

2018

Annualized 

CR

2019

Request

Change from 

2018 to 2019

Career, Technical, and Adult Education $11,825 $11,403 $10,607 -$796

Central Information Technology 53,868 52,392 55,332 2,940

Central Support 65,691 72,039 102,534 30,495

Chief Information Officer 19,410 18,806 17,488 -1,318

Chief Financial Officer 25,261 25,709 24,587 -1,122

Communications and Outreach 16,993 16,526 15,073 -1,453

Deputy Secretary 7,807 7,425 7,783 358

Elementary and Secondary Education 36,020 34,131 30,699 -3,432

English Language Acquisition, Language 

Enhancement, and Academic Achievement 

for Limited English Proficient Students 2,457 2,400 2,235 -165

General Counsel 16,095 15,998 15,074 -924

Innovation and Improvement 11,328 10,330 9,319 -1,011

Institute of Education Sciences 35,270 40,795 37,540 -3,255

Legislation and Congressional Affairs 2,008 1,850 1,745 -105

Management 28,055 26,490 24,363 -2,127

Planning, Evaluation, and Policy Development 13,089 10,410 10,525 115

Postsecondary Education 21,458 19,353 17,943 -1,410

Secretary 28,384 28,519 44,397 15,878

Special Education and Rehabilitative Services 33,344 31,814 29,387 -2,427

Under Secretary 3,637 2,676 2,626 -50

Total, Budget Authority 432,000 429,066 459,257 30,191

NOTES: FY 2019 includes Building Modernization in Central Support and Central Information Technology (no funds 

are included for Building Modernization in FY 2017 and FY 2018).