FEDERAL MARITIME COMMISSION

ANNUAL PROGRAM PERFORMANCE REPORT

FOR FY 2002

February 2003
INTRODUCTION

This document comprises the Federal Maritime Commission’s Annual Program Performance

Report for Fiscal Year 2002, as required by the Government Performance and Results Act

(“GPRA”). It has been prepared in accordance with OMB Circular No. A-11, Part 2. This progress

report describes the Commission’s actual performance in FY 2002 compared with the projected

levels of performance we established in our FY 2002 Annual Performance Plan. 

This progress report covers the Commission’s third full year operating under the new

business environment and regulatory changes resulting from the Ocean Shipping Reform Act of

1998 (“OSRA”). The Commission was very active in FY 2002 overseeing the activities of the ocean

shipping industry in a manner that facilitated achievement of the new statute’s policy objectives.

We paid particular attention to the practices of ocean common carriers under their statutory grant

of antitrust immunity, so as to address specific actions or proposals that raised the specter of

inequitable trading conditions. The Commission also continued its program to assist regulated

entities in their efforts to comply voluntarily with the shipping statutes, while expanding its alternate

dispute resolution program which provides the industry with a forum for resolving disagreements

in a less costly and less litigious manner. Similarly, we made further strides in improving the

public’s access to pertinent information by making additional documents and issuances available

on our Internet website. And our internal operations were enhanced by the selection of specific

vendors to handle our personnel/payroll and accounting functions, the latter of which provided us

with a government-sanctioned accounting system as well as the ability ultimately to prepare

acceptable financial statements.
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We are pleased to report overall success in achieving our stated goals and objectives -- we

were able to accomplish most of our goals and exceed several. We continue to find that the planning

and direction required by the GPRA process facilitates our efforts to attain results-driven objectives.

This report has been forwarded to the President, with a copy to the Director, Office of

Management and Budget, and relevant Congressional committees. Additionally, we have placed

this report on our Internet website to ensure that it is readily accessible to interested parties, and

have advised all Commission employees to take the time to review it.

This report is direct and concise in the manner in which it presents the relevant information.

For organizational purposes, and to facilitate review, it repeats the mission statement from our

Strategic Plan and briefly summarizes it. We then list the strategic goals we have identified as

crucial to accomplish our mission. In order to reflect the linkage between our strategic goals and

performance goals, we have organized this report by the five program activities under which we

operated in FY 2002. For each of these activities, we state the specific strategic goals that are

directly related to the performance goals attendant to that activity. We then state each performance

goal, the target level of performance for each, and our actual level of performance regarding that

goal. For any performance goal that was not met or not substantially completed, we have provided

a specific explanation why the goal was not met, along with the actions and schedule for meeting

the goal in the future. Additionally, the last section of this report identifies the performance goals

from our FY 2001 Annual Performance Plan which we reported in our FY 2001 Program

Performance Report as not having been accomplished or substantially completed, and explains the

actions we subsequently took to satisfy the requirements of each such goal. 
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FMC MISSION

The Commission established its mission as follows:

Ensure the Nation’s interests are met through an efficient, competitive, marketdriven, and nondiscriminatory ocean transportation system that is free of unfair

foreign maritime trade practices.

The Commission acknowledged in its Strategic Plan that the basic principles of liner

shipping were being modified. The shipping industry continued to restructure itself while shippers

were placing an increasing importance on rates and services. International trade remained dependent

upon an efficient and economic ocean transportation system. Given the extremely significant issues

the agency was facing, it identified the actions necessary to ensure that its oversight and legislative

initiatives produced a competitive and nondiscriminatory trading environment in the U.S. ocean

commerce that was in harmony with and responsive to international shipping practices. The

Commission set out to focus its energies and efforts on its mission and to ensure that it was

organized and managed in a manner best suited to accomplish its mission with a minimum of

government intervention and regulatory costs. It also recognized that its actions must encourage the

development of a sound U.S.-flag liner fleet. 

FMC STRATEGIC GOALS

In recognition of its stated mission, and in conformity with the Shipping Act of 1984, the

FMC established the following four strategic goals:

1. Efficient Regulatory Process: Provide a timely, efficient and decisive

regulatory process, to enable all segments of the industry to plan and conduct

their operations more effectively and with minimal regulatory costs.

2. Balanced Enforcement: Foster economic efficiencies and reliance on

marketplace factors by administering U.S. shipping statutes in a balanced and

equitable manner that redresses excessive anticompetitive actions and

restrictive practices of foreign governments. 
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3. Compliance: Promote the development of U.S. exports and the efficiency of

ocean shipping by monitoring and assisting stakeholders in achieving

compliance with shipping statutes administered by the FMC. 

4. Internal Capabilities: Ensure the FMC has the organizational ability and the

managerial leadership necessary to meet its industry assistance, enforcement

and educational responsibilities.

These strategic goals addressed all important FMC statutory, programmatic, and management

responsibilities. They were developed with a specific focus on accomplishing the basic thrusts of

our mission. The Commission determined that achieving its mission-driven goals would enable it

to address effectively the external factors it faced, while assuring an equitable and efficient

administration of the shipping statutes under its jurisdiction. 

PROGRESS IN ACHIEVING PERFORMANCE GOALS

The performance goals of the Commission’s FY 2002 Annual Performance Plan were linked

directly to the Commission’s strategic goals; they were identified as the appropriate means for

accomplishing our mission. This section of the report assesses our actual performance in addressing

these goals. 
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Budget Program Activity: Formal Proceedings

Related Strategic Goals

1. Efficient Regulatory Process: Provide a timely, efficient and decisive

regulatory process, to enable all segments of the industry to plan and conduct

their operations more effectively and with minimal regulatory costs.

4. Internal Capabilities: Ensure the FMC has the organizational ability and the

managerial leadership necessary to meet its industry assistance, enforcement,

and educational responsibilities. 

Performance Goal 1:

By 9/30/02, implement a process to electronically serve ALJ/Commission issuances in formal

proceedings (with assent of litigants). 

Progress: The Commission accomplished this goal during fiscal year 2002. Three complex

proceedings initially were selected for electronic service of virtually all documents: Docket No. 01-

06, Exclusive Tug Franchises - Marine Terminal Operators Serving the Lower Mississippi River;

Docket No. 02-02, Canaveral Port Authority – Possible Violations of Section 10(b)(10),

Unreasonable Refusal to Deal or Negotiate; and Docket No. 02-03, Exclusive Tug Arrangements

in Port Canaveral, Florida. The electronic service of Commission issuances, together with the

parties’ electronic service of pleadings and motions, eliminated postal delays and facilitated the

conduct of these proceedings. The Commission’s experience in Docket No. 01-06 was particularly

noteworthy, because mail service to and from the Commission’s headquarters was brought to a

virtual standstill during the postal anthrax crisis in early Fiscal Year 2002. Electronic service in this

proceeding avoided the frustrating delays that otherwise would have occurred. The Offices of the

Secretary and Administrative Law Judges also began to use electronic service for issuances in other

proceedings – by the end of the fiscal year, issuances in docketed proceedings generally were served

via e-mail. By virtue of electronic service, counsel were able to be informed of ALJ and

Commission rulings virtually on an instantaneous basis. During Fiscal Year 2002, this process was

expanded in that ALJ/Commission issuances were furnished to Commissioners, Administrative Law

Judges and Commission staff via e-mail. 
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Performance Goal 2:

By 9/30/02, implement an optional process for responding electronically to public requests

for documents, e.g., public filings, FOIA requests. 

Progress: By the end of Fiscal Year 2002, the Commission fully implemented a process

to respond electronically to public requests for documents and information. The Commission’s

Office of the Secretary routinely uses an e-mail scanner/sender to transmit PDF copies of filings in

formal proceedings, as well as ALJ and Commission decisions. The scanner/sender also is used to

respond to FOIA requests and public requests for information when the requesting party asks that

the information be sent in that form. Virtually all of our responses now are handled through e-mail;

this process is particularly useful where we receive multiple requests for Commission documents.

Performance Goal 3

By 6/30/02, make public filings in at least one significant Commission proceeding available

on the home page. 

Progress: The public filings received in the Commission’s Notice of Inquiry proceeding

in Docket No. 01-08, The Impact of the Government Paperwork Elimination Act and the Electronic

Signatures in Global and National Commerce Act, have been made available on the Commission’s

home page. Our efforts in this regard, together with our efforts under Performance Goal 2, have

facilitated the public’s access to documents filed with the Commission. Moreover, this effort is

being used to develop an approach for placing major filings on the home page on a regular basis.
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Budget Program Activity: Operational and Administrative

Related Strategic Goals

1. Efficient Regulatory Process: Provide a timely, efficient and decisive

regulatory process, to enable all segments of the industry to plan and conduct

their operations more effectively and with minimal regulatory costs.

4. Internal Capabilities: Ensure the FMC has the organizational ability and the

managerial leadership necessary to meet its industry assistance, enforcement

and educational responsibilities.

Performance Goal 1:

By 9/30/02, utilize developments in technology to find a reasonable, cost-effective software

system to procure, then develop and implement the capability for electronic filing of all

major business transactions with the Commission, consistent with the Government

Paperwork Elimination Act and the Electronic Signatures in National and Global Commerce

Act. 

Progress: While the Commission has made progress towards providing an electronic filing

process for major business transactions, budgetary considerations precluded us from finalizing and

issuing a Statement of Work to solicit assistance in developing an electronic forms submission

system. The Commission contracted with a private sector resource to conduct an assessment of the

Commission’s IT architecture and electronic records capability, to document findings, and to make

recommendations on the risks, technical alternatives, costs and benefits of providing the public with

the option of filing information collections electronically. The contractor’s report included a

recommendation that the Commission procure one of several software packages to enable the agency

to accomplish its GPEA responsibilities with in-house resources. Unfortunately, with a fiscal year

appropriation level below the President’s request, the Commission was left with insufficient

discretionary resources in FY 2002 to address this goal fully and effectively. Notwithstanding, the

Commission thus far has introduced two systems that collect information via the Internet, and is in

the process of developing a third with a projected completion date in FY 2003. While the funding

picture for FY 2003 is unclear, the Commission is in the process of re-examining its options under

continuing budgetary constraints. We hope to be in a position later in FY 2003 to establish a viable

course of action to address our GPEA requirements.
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Performance Goal 2:

During the first quarter of FY 2002, initiate a comprehensive recruiting effort that, by FY

end, better matches agency human resources to its changing work requirements, improves

on existing levels of employees with targeted disabilities, and enhances the diversity of the

FMC’s workforce. 

Progress: The Commission was successful in addressing this important performance goal.

Senior managers were consulted to identify desirable knowledge, skills, and abilities, along with an

ideal number of employees required for the agency to address its changing responsibilities. A

recruitment plan was developed late in Fiscal Year 2001, and upon approval by the Chairman, it was

initiated immediately. From September 2001 through September 2002, the Commission was

successful in hiring 19 additional employees. Not only was this significant given the numerous

vacancies the Commission had experienced, we had excellent success in hiring employees to better

address our changing work requirements. We brought on board six transportation specialists we had

identified as being adept at research, analysis, and oral/written communication – this was the most

important skill mix we had hoped to obtain in this recruiting effort. We also attracted three

Presidential Management Interns who possess a broad range of skills to assist in various

Commission program areas. Two attorneys were hired to augment our compliance/enforcement

program, and a much needed Area Representative was added in one of our regional areas. We also

achieved an important objective of attracting an additional administrative law judge. 

Our efforts also went a long way toward fulfilling our objective of enhancing the diversity

of the FMC’s workforce. We hired six African-Americans and one Hispanic. Also, we attracted

six professional women. These individuals, as well as the rest of the employees hired as a result of

this effort, have produced immediate benefits for the agency in terms of enhanced competency and

productivity. It also should be noted that this recruitment initiative became all the more important

since during the period involved, 12 employees left the agency. Overall, we are quite satisfied that

we have accomplished the primary objectives of this performance goal.

Performance Goal 3:

By 9/30/02, standardize and modernize the agency’s financial systems environment so that

it complies with current guidance on Federal financial management and reporting systems

(such as those in the Federal Management Financial Integrity Act, the Federal Financial

Management Improvement Act of 1996, OMB Circulars A-123, A-127 and A-130, and OMB

Bulletin 98-08) and satisfies audit concerns identified by the agency’s Inspector General.

Progress: The Commission achieved its goal of standardizing and modernizing the

agency’s financial systems environment. After assessing the capacity of existing systems,

evaluating available commercial off-the-shelf software, and executing a procurement process that

included analysis of several Joint Financial Management Improvement Program-approved systems,

the agency replaced its long-time personnel/payroll and financial and accounting cross-servicing

provider. Agreements were finalized with the National Finance Center (“NFC”) for
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personnel/payroll services and with the Bureau of Public Debt (“BPD”) for financial and accounting

services. The transition to NFC was completed by May 2002, while the transition to BPD was

accomplished at fiscal year’s end, allowing the BPD system to become effective as of October 1,

2002. The new integrated systems satisfy current guidance on Federal financial management and

reporting systems and will facilitate the preparation of financial statements and other financial

reports in accordance with Federal accounting and reporting standards beginning in FY 2003. The

Commission has benefitted considerably from conversion to this modern, web-based, standardized

systems environment. It allows for greater consistency of internal controls, access by senior

management to more timely and comprehensive information for decision-making, and improvement

of budgeting, analysis and government-wide reporting processes.
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Budget Program Activity: Consumer Complaints and Licensing

Related Strategic Goals

1. Efficient Regulatory Process: Provide a timely, efficient and decisive

regulatory process, to enable all segments of the industry to plan and conduct

their operations more effectively and with minimal regulatory costs.

3. Compliance: Promote the development of U.S. exports and the efficiency of

ocean shipping by monitoring and assisting stakeholders in achieving

compliance with shipping statutes administered by the FMC. 

4. Internal Capabilities: Ensure the FMC has the organizational ability and the

managerial leadership necessary to meet its industry assistance, enforcement

and educational responsibilities.

Performance Goal 1:

Develop an integrated OTI database by 9/30/02 which contains relevant data such as

current address, bond levels, QI, etc. This information should be readily accessed and easily

manipulated to facilitate compliance and enforcement activities. 

Progress: The Commission successfully merged its ocean freight forwarder and Regulated

Persons Index databases during the fiscal year. An audit of approximately 5,000 OTI files was

initiated in June 2002, verifying licensee name, address, qualifying individual, tax identification

number, license number and bond information. Changes were input into the newly integrated

database, and staff pursued necessary bond riders, amendments to the Form FMC-1 filing, and

reissuance of licenses. In addition, new search screens were developed with a wide range of search

options. Enhanced programming permitted easier retrieval of the information contained in the

database. 

During the fiscal year, a prototype of the database with search screens was tested and revised

by FMC staff over several months. User comments were solicited and indicated a desire for broader

search functionality and easier-to-read format screens to improve the system. As a result, further

refinements were produced. Accordingly, standard queries were created. The database, together

with necessary help screens, look-up tables, and a data dictionary were uploaded onto the Intranet

in February 2003. Access to all substantive information has facilitated compliance and enforcement

activities, increased staff responsiveness to public inquiries, and permitted a greater number of staff

to respond to inquiries.
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Performance Goal 2:

By 6/30/02, revise FMC application form(s) for OTI applicants to simplify form(s), clarify

information required so that staff can more expeditiously process an application (i.e., within

30 days of receipt) and reduce the number of the most common delays in processing an OTI

application.

Progress: The Bureau achieved its goal of revising Form FMC-18, Application for a

License as an Ocean Transportation Intermediary, to make it more user friendly. Changes included

revisions to instructions (i.e., identified what parts of the form needed to be completed based on

what was being requested), clarification of required supporting documents to be submitted with the

application (i.e., Articles of Incorporation to validate principal name), and the addition of questions

regarding the identity of the applicant and officers (i.e., Social Security numbers). We also solicited

comments within the Commission, and incorporated those comments where appropriate. We will

submit our revised form to OMB for approval to collect this information and publish the revised

Form FMC-18 in the Federal Register as well as on the FMC home page. We also plan to develop

an electronic format of the OTI application in accordance with The Government Paperwork

Elimination Act.

Performance Goal 3: 

Enhance Passenger Vessel Database by 9/30/02 so that it will contain needed pertinent

information about operators in the program and to maximize identifying those operators

with Unearned Passenger Revenue in excess of current maximum coverage ($15 million) and

potential weakness in financial indicators, e.g., debt/capital ratio is relatively high or bond

rating reduced. 

Progress: The Commission enhanced its Passenger Vessel Operator (“PVO”) database this

fiscal year as envisioned by this performance goal. Data elements captured included operator

names, vessel names, monthly/weekly unearned passenger revenue amounts, address and contact

person for financial security provider/underwriters and cruise operators, amounts of performance

and casualty coverages, and certificate numbers. Routine and ad hoc reports were developed and

used by FMC staff to monitor the PVO program. These reports were useful for staff in preparing

memoranda to the Commission regarding bankruptcies of several cruise operators, and in various

rulemakings undertaken to amend Commission rules regarding sections 2 (Casualty) and 3

(Performance) of Public Law 89-777.
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Budget Program Activity: Trade Analysis

Related Strategic Goals

1. Efficient Regulatory Process: Provide a timely, efficient and decisive

regulatory process, to enable all segments of the industry to plan and conduct

their operations more effectively and with minimal regulatory costs.

2. Balanced Enforcement: Foster economic efficiencies and reliance on

marketplace factors by administering U.S. shipping statutes in a balanced and

equitable manner that redresses excessive anticompetitive actions and

restrictive practices of foreign governments. 

Performance Goal 1:

In reviewing agreement filings for anticompetitive consequences, also ensure that only

eligible ocean common carriers receive antitrust immunity for their concerted activities

under filed agreements as Congress intended pursuant to the 1984 Act, as part of a program

that provides that all agreement filings comply with the shipping statute and agency

regulations. 

Progress: The objectives under this performance goal were accomplished in FY 2002. The

ocean common carrier status of every questionable carrier party to a filed agreement was

investigated thoroughly to verify that the carrier operates a vessel in the foreign commerce of the

United States. This effort involved coordination between internal agency components or other

government agencies, for example, the U.S. Customs Service, and researching agency databases,

various Internet sites, and press articles for any identifiable information that would assist in

determining a carrier’s vessel-operating status. 

As a result of our thorough review, the effective date of one agreement was delayed through

a formal request for additional information where a carrier’s status was at issue. In another case,

a formal proceeding was instituted to investigate, among other things, the status of an agreement

party. In connection with another agreement where there were concerns about the sufficiency of a

vessel time charter as a basis for ocean common carrier status, the Commission directed the staff

to draft a proposed rule to address the question presented by vessel time charters and their adequacy

in determining a carrier’s ocean common carrier status.

Other aspects of the goal involved the appropriate processing of agreements in accordance

with statutory requirements. Every agreement filed was reviewed and, where appropriate, an

analysis of its competitive impact completed within 45 days of filing. There were six instances

where serious questions on the likely competitive impact of an agreement prompted the Commission

to delay the effective date by formally requesting additional information from the agreement parties

to aid in the Commission’s analysis. Where the parties demonstrated an operational urgency,
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expedited review was granted to allow agreements to become effective sooner than 45 days. Where

the parties did not show a good cause, their requests were denied.

Performance Goal 2:

Develop integrated tariff and service contract database for online accessibility by

Commission headquarters staff and local area representatives by June 2002 as part of the

Bureau’s overall Service Contracts and Tariffs program.

Progress: This goal was substantially completed in FY 2002. The Bureau created and

refined a number of integrated tariff and service contract database systems which are accessible to

FMC staff, including local area representatives. For example, the Tariff Profile System (“TPS”)

includes several database sections and linkages between systems. The TPS computer program was

refined to add a section to include the Carrier Automated Tariff Systems’ (“CATS”) to capture

CATS audit information regarding industry adherence to Commission regulations. The TPS is

accessible to relevant headquarters’ Bureaus and Offices. Access to the TPS by the local area

representatives, however, was lost when they received new computer hardware. In an effort to

remedy this problem and to make the TPS more readily accessible, currently there is a project to

make the TPS program available via the FMC Intranet to headquarters’ staff and area

representatives. 

Also, the redeveloped electronic Form FMC-1 system implemented near the end of FY 2001

was made available to all FMC headquarters’ staff and area representatives via the FMC Intranet.

Accessibility via the Intranet is convenient and allows effective searches of the complete database

for current information. 

And, enhancements to the Internet-based service contract filing system (SERVCON) were

implemented and a new search engine was added to make searches for data more efficient. The

enhancements allow the staff to monitor certain types of errors related to contract filings and obtain

statistics. This system is accessible to FMC staff with logins and passwords. 
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Performance Goal 3:

Establish a new and streamlined Bureau monitoring program by developing a rule that

focuses data collection on critical carrier agreements and major U.S. trades, while not

compromising essential information. 

Progress: The Commission continued to conduct the research and analysis necessary to

modify the current agreement data reporting requirements as envisioned by this performance goal.

The rulemaking process had been altered in the interest of combining the subject proposed

rulemaking with two other agreement-related proposed rulemakings: modifications to the regulation

governing the minutes reporting on meetings conducted under agreements, and the content of

agreements filed with the Commission, Docket No. 99-13, The Content of Ocean Common Carrier

and Marine Terminal Operator Agreements Subject to the Shipping Act of 1984. The subject

proposed rule addresses regulatory modifications to the reporting requirements for data and

information on agreements at the initial filing stage with the Commission and after the agreements

have become effective under the 1984 Act. It will update, refine, and simplify the regulations to

require data essential to the Commission’s agreement review process and monitoring program, in

order to permit the appropriate assessment of the competitive impact of agreements in accordance

with the standards of the 1984 Act. It further will account for the effects that OSRA has had on

agreements and the ocean liner shipping industry, and will address concerns of agreement carriers

on the burden of reporting information. While this rulemaking was delayed in fiscal year 2002, staff

analysis has been completed and the matter is under Commission review; a Notice of Proposed

Rulemaking should be issued in the third quarter of FY 2003.
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Budget Program Activity: Enforcement

Related Strategic Goals

1. Efficient Regulatory Process: Provide a timely, efficient and decisive

regulatory process, to enable all segments of the industry to plan and conduct

their operations more effectively and with minimal regulatory costs.

2. Balanced Enforcement: Foster economic efficiencies and reliance on

marketplace factors by administering U.S. shipping statutes in a balanced and

equitable manner that redresses excessive anticompetitive actions and

restrictive practices of foreign governments. 

3. Compliance: Promote the development of U.S. exports and the efficiency of

ocean shipping by monitoring and assisting stakeholders in achieving

compliance with shipping statutes administered by the FMC. 

Performance Goal 1:

Develop and implement a program by 3/30/02 to identify and bring into compliance entities

not in compliance with the Commission’s definition of vessel-operating common carrier. 

Progress: The program developed consists of a vessel-operating compliance audit letter and

questionnaire, a review of Commission databases, including the Regulated Persons Index, the FMC1 and the Commission website posting of entities holding themselves out to be vessel-operating

common carriers, and the initiation of cases challenging claimed vessel-operating status. The audit

letter was fashioned in the same manner as a previously developed freight forwarder audit program.

The questionnaire is to be utilized on an as-needed basis. When information is received which gives

reason to question claimed vessel-operating status, the questionnaire may be dispatched to gather

preliminary information which can verify the claimed status or serve as the basis for initiating

further investigative or enforcement action. Using available maritime publications and Commission

databases, an initial survey of new entrants registering as VOCCs was conducted during FY 2002.

The further modification and refinement of the Commission’s operating status databases, and the

initiation of cases to challenge carrier status, were conducted in FY 2002. Further, as

aforementioned, the status of carriers seeking to file agreements was challenged in several instances.

Indeed, a proposal for possible rulemaking to assist in defining vessel-operating common carrier

status was in progress, but was held in abeyance pending Commission action in a formal

investigative proceeding challenging carrier status (Docket No. 02-09, Shanghai Hai Hua Shipping

Co. Ltd.). 
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Performance Goal 2:

Initiate enforcement action, as necessary, to improve compliance with statutory

requirements related to substantive provisions of contracts and proper contracting parties.

Progress: With the implementation of OSRA and the provisions for confidential service

contracts, the efforts by all entities, carriers and shippers alike, is to conduct business under service

contracts. This has resulted in increased cases of improper use of service contracts and the unlawful

provision of liner services by carriers. In FY 2002, cases involving improper service contract usage

represented approximately 60 percent of all cases initiated. Of cases resulting in penalty collections

in FY 2002, 50 percent involved improper service contract issues. Cases have been initiated and

enforcement action taken with respect both to carriers and shippers, and at least four formal

investigations were prosecuted with respect to these issues. Most of the Commission’s activities in

this area are complaint-driven. As these actions are concluded and become public, they should have

a deterrent effect on the shipping industry, resulting in greater protection to the shipping public

against unlicensed and unbonded entities. 

Performance Goal 3:

Explore the use of alternative systems for payment of fines and penalties (to include

identifiable electronic transfers). Review completed by 6/30/02. 

Progress: Alternative payment processing systems were considered as a means to provide

a more effective and efficient means of receiving payments of fines and penalties from the public.

Due to the sporadic nature of penalty payments, wire transfer is the only practical payment

alternative that can be offered to the public at this time. Penalty payments typically are nonrecurring; they originate from different payees and financial institutions, so other electronic payment

systems do not bring about added convenience or efficiency. No rule changes were necessary to

provide for this alternative payment system, however, the procedures for wire transfers were

documented in the form of a “Standard Operating Procedure” which has been distributed to BOE

for its use in facilitating penalty payments. 
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FY 2001 PERFORMANCE GOALS NOT ACHIEVED

This section reflects the goals from our FY 2001 Annual Performance Plan which we

reflected in our FY 2001 Progress Report as not achieved or not substantially completed. We

explain in this section the actions we have taken to address these goals.

Performance Goal 2 (Operational and Administrative Program Activity):

Develop by 3/31/01 a competitive SES Candidate Development Program to be used for

selecting qualified employees to fill future leadership positions in the agency’s SES corp.

The objective of this goal was to initiate an SES Candidate Development Program in the 2nd

quarter of FY 2001, and select candidates by the end of FY 2001. As referenced in our FY 2001

Report, actual initiation of the program was deferred in light of hiring controls that were imposed

by the Administration. Upon relaxation of these controls, the Commission’s program ultimately was

announced in the second quarter of FY 2002. All applications were reviewed by the agency’s

Executive Resources Board (ERB), and those applicants considered most highly qualified were

interviewed. The ERB then made its recommendations to the Chairman, who made the final

selection of candidates in August 2002. Necessary funding for appropriately training selected

candidates has been allocated, and developmental assignments have been identified for each. The

Commission plans to have its candidates fully prepared for approval by an OPM Qualifications

Review Board early in calendar year 2004. 

Performance Goal 1 (Consumer Complaints and Licensing Program Activity):

By 6/30/01, ensure accurate/useful listing of licensed/bonded OTIs on homepage.

In its FY 2001 Report, the Commission indicated that it had to delay accomplishment of this

goal. A necessary audit of all OTI files became quite time consuming and resulted in more than

anticipated discrepancies. The time required to resolve these discrepancies and input changes, in

addition to the normal workload of licensing and bonding OTIs, delayed production of the list.

Additionally, an unforeseen number of bankruptcies of passenger vessel operators, and a rulemaking

to address this issue, required involved resources to be diverted from the OTI audit. However, the

Commission ultimately updated its OTI data and reconciled several agency databases to produce the

expected OTI list. This list, and search-screen capability, were placed on the agency Intranet for

staff comment. After two weeks of staff testing, comments were incorporated as they were received.

The final list now is scheduled to be placed on the FMC’s home page and made available to the

public in March 2003. The list will be updated weekly. 
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Performance Goal 3 (Trade Analysis Program Activity):

By 3/31/01 propose amendment to Commission’s regulations for agreement minutes

reporting to clarify filer’s responsibility, and to develop and implement an alternative

reporting requirement for carrier alliances. 

This performance goal is related to Performance Goal 3 under this activity in our FY 2002

Annual Performance Plan. As reflected earlier regarding that performance goal, the Commission

continued to experience delay in addressing this relatively involved issue. As previously stated, the

staff analysis has been completed and the Commission should consider this matter in the near future,

with a Notice of Proposed Rulemaking planned for issuance in the third quarter of FY 2003.

Contingent upon the extent and breadth of comments received, a final rule should be completed prior

to the end of calendar year 2003.