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[House Report 112-534]
[From the U.S. Government Publishing Office]

112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     112-534

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              GOVERNMENT CUSTOMER SERVICE IMPROVEMENT ACT

                                _______
                                

 June 15, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Issa, from the Committee on Oversight and Government Reform, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 538]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Government Reform, to whom 
was referred the bill (H.R. 538) to require the establishment 
of customer service standards for Federal agencies, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................     2
Section-by-Section...............................................     4
Explanation of Amendments........................................     4
Committee Consideration..........................................     5
Application of Law to the Legislative Branch.....................     5
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     5
Statement of General Performance Goals and Objectives............     5
Federal Advisory Committee Act...................................     5
Unfunded Mandate Statement.......................................     5
Earmark Identification...........................................     5
Committee Estimate...............................................     6
Budget Authority and Congressional Budget Office Cost Estimate...     6
Changes in Existing Law Made by the Bill as Reported.............     7

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Government Customer Service 
Improvement Act''.

SEC. 2. DEVELOPMENT OF PERFORMANCE MEASURES AND STANDARDS FOR CUSTOMER 
                    SERVICE PROVIDED BY FEDERAL AGENCIES.

  (a) Requirement.--
          (1) Performance measures and standards.--The Director of the 
        Office of Management and Budget shall develop--
                  (A) performance measures to determine whether Federal 
                agencies are providing high-quality customer service 
                and improving service delivery to their customers; and
                  (B) standards to be met by Federal agencies in order 
                to provide high-quality customer service and improve 
                service delivery to their customers.
          (2) Requirement to take into account certain information.--
        The standards under paragraph (1) shall be developed after 
        taking into account the information collected by Federal 
        agencies under subsection (b).
  (b) Customer Service Input.--The head of each Federal agency shall 
collect information from its customers regarding the quality of 
customer services provided by the agency. Each Federal agency shall 
include this information in its performance report submitted under 
section 1116 of title 31, United States Code.
  (c) Annual Performance Update.--The Director of the Office of 
Management and Budget shall include achievements by Federal agencies in 
meeting customer service performance measures and standards developed 
under subsection (a) in each update on agency performance required 
under section 1116 of title 31, United States Code.

SEC. 3. IMPLEMENTATION OF CUSTOMER SERVICE STANDARDS.

  (a) Customer Relations Representative.--The head of each Federal 
agency shall designate an employee to be the customer relations 
representative of the agency. Such representative shall be responsible 
for implementing the customer service standards developed under section 
2 and the agency requirements under subsection (b).
  (b) Agency Requirements.--
          (1) Guidelines and contact information.--The head of each 
        Federal agency, acting through its customer relations 
        representative, shall--
                  (A) issue guidelines to implement the customer 
                service standards developed under section 2 within the 
                agency, including specific principles of customer 
                service applicable to that agency; and
                  (B) publish customer service contact information, 
                including a mailing address, telephone number, and e-
                mail address.
          (2) Availability.--The guidelines and the customer service 
        contact information required under this subsection shall be 
        available on the agency's public website.

SEC. 4. PERFORMANCE APPRAISAL.

  Compliance with customer service standards developed under this Act 
shall be included in the performance appraisal systems referred to in 
sections 4302(a) and 4312 of title 5, United States Code.

SEC. 5. DEFINITIONS.

  In this Act:
          (1) The term ``customer'', with respect to a Federal agency, 
        means any individual or entity, including a business, State or 
        local government, other Federal agency, or Congress, to which 
        the agency provides services or information.
          (2) The term ``Federal agency'' has the meaning given the 
        term ``Executive agency'' by section 105 of title 5, United 
        States Code, except that the term does not include an agency if 
        the President determines that this Act should not apply to the 
        agency for national security reasons.

SEC. 6. FUNDING FROM EXISTING BUDGETS.

  Federal agencies shall implement this Act from funds available to the 
agency and may reprogram funds as necessary for such purposes.

SEC. 7. DEFICIT REDUCTION.

  Any savings or reductions in expenditures resulting from this Act 
shall be used to offset the costs of implementation of this Act, and 
any additional savings shall be used to reduce the deficit.

                     Committee Statement and Views

                          PURPOSE AND SUMMARY

    The private sector has raised the bar for customer service 
and citizens expect the same from their government. H.R. 538, 
the ``Government Customer Service Improvement Act,'' ensures 
the Federal Government keeps pace with the public's 
expectations and delivers better value to the taxpayer.
    The bill requires the Office of Management and Budget (OMB) 
to establish customer service standards for Federal agencies 
and collect information on the quality of service provided to 
agency customers. Agencies would: (1) develop performance 
measures and standards for customer service; (2) designate a 
customer relations representative to ensure compliance with the 
standards; (3) collect information from customers to measure 
performance against the standards; and (4) incorporate the 
standards in employee performance appraisals.

                  BACKGROUND AND NEED FOR LEGISLATION

    The American people rely on Federal agencies to provide 
important services and information, but these agencies often 
fall short of providing the customer service taxpayers expect. 
Only 31 percent of surveyed Americans are very satisfied with 
Federal Government customer service, and 79 percent said the 
government can do a better job.\1\ Unfortunately, unlike in the 
private sector, many government agencies are the sole providers 
of a good or service. Without an alternative, the public must 
rely on a government agency that has employees who have few 
external incentives to optimize customer service.
---------------------------------------------------------------------------
    \1\2011 Federal Customer Experience Study. Alexandria, VA: 
MeriTalk: The Government IT Network, 2011. Print.
---------------------------------------------------------------------------
    Existing law falls short in promoting good customer and 
public service. Agencies currently have discretionary authority 
to include ``courtesy demonstrated to the public''\2\ in 
employee performance appraisals, and to grant awards based on 
superior performance. While some agencies have incorporated 
customer service standards in employee performance 
expectations, they do not always require good customer service 
to the public.
---------------------------------------------------------------------------
    \2\5 U.S.C. Sec. 4302.
---------------------------------------------------------------------------
    H.R. 538 will help ensure agencies streamline service 
delivery and improve the experience of customers. OMB and 
agencies will develop performance measures and standards for 
customer service provided by Federal agencies, with employees 
at all levels held accountable for achieving results.
    In establishing standards to create a government that is 
more effective and responsive, agencies should ensure such 
standards do not inadvertently penalize individual employees 
for matters beyond their control. For example, as the Internal 
Revenue Service seeks to make services more accessible, 
convenient, and efficient for taxpayers, standards should not 
penalize employees for wait times associated with increased 
call volume during tax season. Instead, employees should be 
held accountable for the quality of service and accuracy of 
information provided during such calls.

                          LEGISLATIVE HISTORY

    During the 110th Congress, the House of Representatives 
passed similar legislation, H.R. 404, under suspension of the 
rules by a vote of 383-0 (Roll no. 687). An amended version of 
H.R. 404 was reported favorably by the Senate Committee on 
Homeland Security and Governmental Affairs, without written 
report, and placed on the Senate Legislative Calendar under 
General Orders (Calendar No. 1107). No further action was 
taken.

                           Section-by-Section

Section 1. Short title

    The short title of the bill is the ``Government Customer 
Service Improvement Act.''

Section 2. Development of performance measures and standards for 
        customer service provided by Federal agencies

    Requires the Office of Management and Budget (OMB) to 
develop performance measures and standards to determine whether 
Federal agencies are providing high quality customer service 
and improving service delivery to agency customers.
    Requires agencies to collect information from their 
customers regarding the quality of services provided, and to 
include such information in agency performance reports. OMB 
must ensure customer feedback is used when developing customer 
service standards, and include agency progress in meeting 
customer service standards in the annual government performance 
report.

Section 3. Implementation of customer service standards

    Each agency designates an employee to be its customer 
relations representative, responsible for meeting the customer 
service standards established in section 2. In meeting the 
standards, the customer relations representative will issue 
guidelines and make customer service contact information 
publicly available.

Section 4. Performance appraisal

    Federal employee compliance with agency customer service 
standards will be measured in employee performance appraisals.

Section 5. Definitions

    Defines ``customer'' as any individual or entity, including 
a business, State or local government, other Federal agency, or 
Congress, to which the agency provides services or information.
    This section also grants the President authority to exempt 
executive branch agencies from the requirements of the bill for 
national security reasons.

Section 6. Funding from existing budgets

    Requires funding for implementation to come from existing 
budgets within each agency.

Section 7. Deficit reduction

    Requires any savings or reductions in expenditures 
resulting from the Act be used to offset costs of implementing 
the Act and to reduce the deficit.

                       Explanation of Amendments

    Mr. Issa offered an amendment in the nature of a substitute 
(ANS). The ANS requires Federal agencies to improve service 
delivery to their customers, applies the provisions of H.R. 538 
to all Federal employees, and eliminates the cash incentives 
program proposed in the base bill. The amendment was agreed to 
by voice vote.

                        Committee Consideration

    On April 18, 2012, the Committee met in open session and 
ordered reported favorably the bill, H.R. 538, as amended, by 
voice vote, a quorum being present.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill requires OMB to establish customer service standards 
for Federal agencies and collect information on the quality of 
service provided to agency customers. As such this bill does 
not relate to employment or access to public services and 
accommodations.
    Legislative branch employees and their families, to the 
extent that they are otherwise eligible for the benefits 
provided by this legislation, have equal access to its 
benefits.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement as to 
whether the provisions of the reported bill include unfunded 
mandates. In compliance with this requirement the Committee has 
received a letter from the Congressional Budget Office included 
herein.

                         Earmark Identification

    H.R. 538 does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                           Committee Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 538. However, clause 3(d)(3)(B) of that rule provides that 
this requirement does not apply when the Committee has included 
in its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 538 from the Director of 
Congressional Budget Office:

                                                    April 30, 2012.
Hon. Darrell Issa,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 538, the 
Government Customer Service Improvement Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 538--Government Customer Service Improvement Act

    H.R. 538 would set standards to increase the quality of 
customer service provided by government agencies. Under the 
bill, the Office of Management and Budget (OMB) would set 
customer service standards for federal agencies. Those agencies 
would collect information on their performance and report it to 
OMB. They also would have to display that information on their 
public Web sites. Agencies would also be required to designate 
an employee as a customer relations representative.
    CBO estimates that implementing H.R. 538 would have no 
significant cost over the next five years. The bill could 
affect direct spending by agencies not funded through annual 
appropriations; therefore, pay-as-you-go procedures apply. CBO 
estimates, however, that any net increase in spending by those 
agencies would not be significant. Enacting H.R. 538 would not 
affect revenues.
    Most of the provisions of the bill would codify and expand 
current practices of the federal government. Executive Order 
13571 directed agencies to develop customer service plans. OMB 
has already drafted guidance and created a Customer Service 
Task Force to identify best practices and to review agencies' 
plans. Consequently, CBO estimates that implementing this bill 
would not significantly increase administrative costs to 
federal agencies.
    H.R. 538 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. This estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

          Changes in Existing Law Made by the Bill as Reported

                                  
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