the Government and reduces the Federal Govern-
ment’s ability to address adequately vital public
needs;
(2) Federal managers are seriously disadvan-
taged in their efforts to improve program efficiency
and effectiveness, because of insufficient articulation
of program goals and inadequate information on
program performance; and
(3) congressional policymaking, spending deci-
sions and program oversight are seriously handi-
capped by insufficient attention to program perform-
ance and results.
(b) PURPOSES.—The purposes of this Act are to—
(1) improve the confidence of the American peo-
ple in the capability of the Federal Government, by
systematically holding Federal agencies accountable
for achieving program results;
(2) initiate program performance reform with a
series of pilot projects in setting program goals,
measuring program performance against those goals,
and reporting publicly on their progress;
(3) improve Federal program effectiveness and
public accountability by promoting a new focus on
results, service quality, and customer satisfaction;
(4) help Federal managers improve service de-
livery, by requiring that they plan for meeting pro-
gram objectives and by providing them with informa-
tion about program results and service quality;
(5) improve congressional decisionmaking by
providing more objective information on achieving
statutory objectives, and on the relative effectiveness
and efficiency of Federal programs and spending;
and
(6) improve internal management of the Fed-
eral Government, and the intent of this Act is not
to create any right or benefit, substantive or proce-
dural, enforceable at law by any party against the
United States, or any agency or office of the United
States.
SEC. 3. STRATEGIC PLANNING.
Chapter 3 of title 5, United States Code, is amended
by adding after section 305 the following new section:
‘‘§ 306. Strategic plans
‘‘(a) No later than September 30, 1997, the head of
each agency shall submit to the Director of the Office of
Management and Budget a strategic plan for program ac-
tivities. Such plan shall contain—
‘‘(1) a comprehensive mission statement cover-
ing the major functions and operations of the
agency;
‘‘(2) general goals and objectives, including out-
come-related goals and objectives, for the major
functions and operations of the agency;
‘‘(3) a description of how the goals and objec-
tives are to be achieved, including a description of
the operational processes, skills and technology, and
the human, capital, information, and other resources
required to meet those goals and objectives;
‘‘(4) a description of how the performance goals
included in the plan required by section 1115(a) of
title 31 shall be related to the general goals and ob-
jectives in the strategic plan;
‘‘(5) an identification of those key factors exter-
nal to the agency and beyond its control that could
significantly affect the achievement of the general
goals and objectives; and
‘‘(6) a description of the program evaluations
used in establishing or revising general goals and ob-
jectives, with a schedule for future program evalua-
tions.
‘‘(b) The strategic plan shall cover a period of not
less than five years forward from the fiscal year in which
it is submitted, and shall be updated and revised at least
every three years.
‘‘(c) The performance plan required by section 1115
of title 31 shall be consistent with the agency’s strategic
plan. A performance plan may not be submitted for a fis-
cal year not covered by a current strategic plan under this
section.
‘‘(d) When developing a strategic plan, the agency
shall consult with the Congress, and shall solicit and con-
sider the views and suggestions of those entities poten-
tially affected by or interested in such a plan.
‘‘(e) For purposes of this section the term ‘agency’
means an Executive agency defined under section 105, but
does not include the Central Intelligence Agency, the Gen-
eral Accounting Office, the Panama Canal Commission,
the United States Postal Service, and the Postal Rate
Commission.’’.
SEC. 4. ANNUAL PERFORMANCE PLANS AND REPORTS.
(a) BUDGET CONTENTS AND SUBMISSION TO CON-
GRESS.—Section 1105(a) of title 31, United States Code,
is amended by adding at the end thereof the following new
paragraph:
‘‘(29) beginning with fiscal year 1999, a Fed-
eral Government performance plan for the overall
budget as provided for under section 1115.’’.
(b) PERFORMANCE PLANS AND REPORTS.—Chapter
11 of title 31, United States Code, is amended by adding
after section 1114 the following new sections:
‘‘§ 1115. Performance plans
‘‘(a) In carrying out the provisions of section
1105(a)(29), the Office of Management and Budget shall
require each agency to prepare an annual performance
plan covering each program activity set forth in the budget
of such agency. Such plan shall—
‘‘(1) establish performance goals to define the
level of performance to be achieved by a program
activity;
‘‘(2) express such goals in an objective, quan-
tifiable, and measurable form unless permitted an
alternative form under subsection (b);
‘‘(3) describe the operational processes, skills
and technology, and the human, capital, information,
and other resources required to meet the perform-
ance goals;
‘‘(4) establish performance indicators to be used
in measuring or assessing the relevant outputs, serv-
ice levels, and outcomes of each program activity;
‘‘(5) provide a basis for comparing actual pro-
gram results with the established performance goals;
and
‘‘(6) describe the means to be used to verify
and validate measured values.
‘‘(b) If an agency, in consultation with the Office of
Management and Budget, determines that it is not fea-
sible to express the performance goals for a particular pro-
gram activity in an objective and quantifiable form, the
Office of Management and Budget may authorize an alter-
native form. Such alternative form shall—
‘‘(1) include separate descriptive statements
of—
‘‘(A) a minimally effective program, and
‘‘(B) a successful program,
with sufficient precision and in such terms that
would allow for an accurate, independent deter-
mination of whether the program activity’s per-
formance meets the criteria of either descrip-
tion; or
‘‘(2) state why it is infeasible or impractical to
express a performance goal in any form for the pro-
gram activity.
‘‘(c) In preparing a comprehensive and informative
plan under this section, an agency may aggregate,
disaggregate, or consolidate program activities, provided
that any aggregation or consolidation does not omit or
minimize the significance of any program activity con-
stituting a major function or operation for the agency.
‘‘(d) An agency may prepare a classified or non-pub-
lic annex to its plan covering program activities or parts
of program activities relating to—
‘‘(1) national security;
‘‘(2) the conduct of foreign affairs; or
‘‘(3) the avoidance of interference with criminal
prosecution or revenue collection.
‘‘(e) For purposes of this section and sections 1116
through 1119, and section 9704 the term—
‘‘(1) ‘agency’ means an Executive agency de-
fined under section 105 of title 5, United States
Code, but does not include the Central Intelligence
Agency, the General Accounting Office, the Panama
Canal Commission, the United States Postal Service,
and the Postal Rate Commission;
‘‘(2) ‘outcome measure’ refers to an assessment
of the results of a program activity compared to its
intended purpose;
‘‘(3) ‘output measure’ refers to the tabulation,
calculation, or recording of activity or effort and can
be expressed in a quantitative or qualitative manner;
‘‘(4) ‘performance goal’ means a target level of
performance expressed as a tangible, measurable ob-
jective, against which actual achievement shall be
compared, including a goal expressed as a quan-
titative standard, value, or rate;
‘‘(5) ‘performance indicator’ refers to a particu-
lar value or characteristic used to measure output or
outcome;
‘‘(6) ‘program activity’ means a specific activity
or project as listed in the program and financing
schedules of the annual budget of the United States
Government; and
‘‘(7) ‘program evaluation’ means an assessment,
through objective measurement and systematic anal-
ysis, of the manner and extent to which Federal pro-
grams achieve intended objectives.
‘‘§ 1116. Program performance reports
‘‘(a) No later than March 31, 2000, and no later than
March 31 of each year thereafter, the head of each agency
shall prepare and submit to the President and the Con-
gress, a report on program performance for the previous
fiscal year.
‘‘(b)(1) Each program performance report shall set
forth the performance indicators established in the depart-
mental or agency performance plan, along with the actual
program performance achieved compared with the per-
formance goals expressed in the plan for that fiscal year.
‘‘(2) If performance goals are specified by descriptive
statements of a minimally effective program activity and
a successful program activity, the results of such program
shall be described in relationship to those categories, in-
cluding whether the performance failed to meet the cri-
teria of either category.
‘‘(c) The report for fiscal year 2000 shall include ac-
tual results for the preceding fiscal year, the report for
fiscal year 2001 shall include actual results for the two
preceding fiscal years, and the report for fiscal year 2002
and all subsequent reports shall include actual results for
the three preceding fiscal years.
‘‘(d) Each report shall—
‘‘(1) review the success of achieving the per-
formance goals of the fiscal year;
‘‘(2) evaluate the performance plan for the cur-
rent fiscal year relative to the performance achieved
toward the performance goals in the fiscal year cov-
ered by the report;
‘‘(3) explain and describe, where a performance
goal has not been met, including when a program
activity’s performance is determined not to have met
the criteria of a successful program activity under
section 1115(b)(2)—
‘‘(A) why the goal was not met;
‘‘(B) those plans and schedules for achiev-
ing the established performance goal; and
‘‘(C) if the performance goal is impractical
or infeasible, why that is the case and what ac-
tion is recommended;
‘‘(4) describe the use and assess the effective-
ness in achieving performance goals of any waiver
under section 9703 of this title; and
‘‘(5) include the summary findings of those pro-
gram evaluations completed during the fiscal year
covered by the report.
‘‘(e) The agency head may include all program per-
formance information required annually under this section
in an annual financial statement required under section
3515 if any such statement is submitted to the Congress
no later than March 31 of the applicable fiscal year.
‘‘§ 1117. Exemption
‘‘The Director of the Office of Management and
Budget may exempt from the requirements of sections
1115 and 1116 and section 306 of title 5, any agency with
annual outlays of $20,000,000 or less.’’.
SEC. 5. MANAGERIAL ACCOUNTABILITY AND FLEXIBILITY.
(a) MANAGERIAL ACCOUNTABILITY AND FLEXIBIL-
ITY.—Chapter 97 of title 31, United States Code, is
amended by adding after section 9702, the following new
section:
‘‘§ 9703. Managerial accountability and flexibility
‘‘(a) Beginning with fiscal year 1999, the perform-
ance plans required under section 1115 may include pro-
posals to waive administrative procedural requirements
and controls, including specification of personnel staffing
levels, limitations on compensation or remuneration, and
prohibitions or restrictions on funding transfers among
budget object classification 20 and subclassifications 11,
12, 31, and 32 of each annual budget submitted under
section 1105, in return for specific individual or organiza-
tion accountability to achieve a performance goal. In pre-
paring and submitting the performance plan under section
1105(a)(29), the Office of Management and Budget shall
review and may approve any proposed waivers. A waiver
shall take effect at the beginning of the fiscal year for
which the waiver is approved.
‘‘(b) Any such proposal under subsection (a) shall de-
scribe the anticipated effects on performance resulting
from greater managerial or organizational flexibility, dis-
cretion, and authority, and shall quantify the expected im-
provements in performance resulting from any waiver. The
expected improvements shall be compared to current ac-
tual performance, and to the projected level of perform-
ance that would be achieved independent of any waiver.
‘‘(c) Any proposal waiving limitations on compensa-
tion or remuneration shall precisely express the monetary
change in compensation or remuneration amounts, such
as bonuses or awards, that shall result from meeting, ex-
ceeding, or failing to meet performance goals.
‘‘(d) Any proposed waiver of procedural requirements
or controls imposed by an agency (other than the propos-
ing agency or the Office of Management and Budget) shall
be endorsed by the agency that established the require-
ment, and the endorsement included in the proposing
agency’s performance plan.
‘‘(e) A waiver shall be in effect for one or two years.
A waiver may be renewed for a subsequent year. After a
waiver has been in effect for three consecutive years, the
performance plan prepared under section 1115 may pro-
pose that a waiver, other than a waiver of limitations on
compensation or remuneration, be made permanent.’’.
SEC. 6. PILOT PROJECTS.
(a) PERFORMANCE PLANS AND REPORTS.—Chapter
11 of title 31, United States Code, is amended by inserting
after section 1117 (as added by section 4 of this Act) the
following new section:
‘‘§ 1118. Pilot projects for performance goals
‘‘(a) The Director of the Office of Management and
Budget, after consultation with the head of each agency,
shall designate not less than ten agencies as pilot projects
in performance measurement for fiscal years 1994, 1995,
and 1996. The selected agencies shall reflect a representa-
tive range of Government functions and capabilities in
measuring and reporting program performance.
‘‘(b) Pilot projects in the designated agencies shall
undertake the preparation of performance plans under
section 1115, and program performance reports under sec-
tion 1116, other than section 1116(c), for one or more
of the major functions and operations of the agency. A
strategic plan shall be used when preparing agency per-
formance plans during one or more years of the pilot
period.
‘‘(c) No later than May 1, 1997, the Director of the
Office of Management and Budget shall submit a report
to the President and to the Congress which shall—
‘‘(1) assess the benefits, costs, and usefulness
of the plans and reports prepared by the pilot agen-
cies in meeting the purposes of the Government Per-
formance and Results Act of 1993;
‘‘(2) identify any significant difficulties experi-
enced by the pilot agencies in preparing plans and
reports; and
‘‘(3) set forth any recommended changes in the
requirements of the provisions of Government Per-
formance and Results Act of 1993, section 306 of
title 5, sections 1105, 1115, 1116, 1117, 1119 and
9704 of this title, and this section.’’.
(b) MANAGERIAL ACCOUNTABILITY AND FLEXIBIL-
ITY.—Chapter 97 of title 31, United States Code, is
amended by inserting after section 9703 (as added by sec-
tion 5 of this Act) the following new section:
‘‘§ 9704. Pilot projects for managerial accountability
and flexibility
‘‘(a) The Director of the Office of Management and
Budget shall designate not less than five agencies as pilot
projects in managerial accountability and flexibility for fis-
cal years 1995 and 1996. Such agencies shall be selected
from those designated as pilot projects under section 1118
and shall reflect a representative range of Government
functions and capabilities in measuring and reporting pro-
gram performance.
‘‘(b) Pilot projects in the designated agencies shall
include proposed waivers in accordance with section 9703
for one or more of the major functions and operations of
the agency.
‘‘(c) The Director of the Office of Management and
Budget shall include in the report to the President and
to the Congress required under section 1118(b) the follow-
ing—
‘‘(1) an assessment of the benefits, costs, and
usefulness of increasing managerial and organiza-
tional flexibility, discretion, and authority in ex-
change for improved performance through a waiver;
and
‘‘(2) an identification of any significant difficul-
ties experienced by the pilot agencies in preparing
proposed waivers.
‘‘(d) For purposes of this section the definitions
under section 1115(e) shall apply.’’.
(c) PERFORMANCE BUDGETING.—Chapter 11 of title
31, United States Code, is amended by inserting after sec-
tion 1118 (as added by section 6 of this Act) the following
new section:
‘‘§ 1119. Pilot projects for performance budgeting
‘‘(a) The Director of the Office of Management and
Budget, after consultation with the head of each agency
shall designate not less than five agencies as pilot projects
in performance budgeting for fiscal years 1998 and 1999.
At least three of the agencies shall be selected from those
designated as pilot projects under section 1118, and shall
also reflect a representative range of Government func-
tions and capabilities in measuring and reporting program
performance.
‘‘(b) Pilot projects in the designated agencies shall
cover the preparation of performance budgets. Such budg-
ets shall present, for one or more of the major functions
and operations of the agency, the varying levels of per-
formance, including outcome-related performance, that
would result from different budgeted amounts.
‘‘(c) The Director of the Office of Management and
Budget shall include, as an alternative budget presen-
tation in the budget submitted under section 1105 for fis-
cal year 1999, the performance budgets of the designated
agencies for this fiscal year.
‘‘(d) No later than March 31, 2001, the Director of
the Office of Management and Budget shall transmit a
report to the President and to the Congress on the per-
formance budgeting pilots which shall—
‘‘(1) assess the feasibility and advisability of in-
cluding a performance budget as part of the annual
budget submitted under section 1105;
‘‘(2) describe any difficulties encountered by the
pilot agencies in preparing a performance budget;
‘‘(3) recommend whether legislation requiring
performance budgets should be proposed and the
general provisions of any legislation; and
‘‘(4) set forth any recommended changes in the
other requirements of the Government Performance
and Results Act of 1993, section 306 of title 5, sec-
tions 1105, 1115, 1116, 1117, 1118, and 9704 of
this title, and this section.
‘‘(e) After receipt of the report required under sub-
section (d), the Congress may specify that a performance
budget be submitted as part of the annual budget submit-
ted under section 1105.’’.
SEC. 7. CONGRESSIONAL OVERSIGHT AND LEGISLATION.
(a) IN GENERAL.—Nothing in this Act shall be con-
strued as limiting the ability of Congress to establish,
amend, suspend, or annul a performance goal. Any such
action shall have the effect of superseding that goal in the
plan submitted under section 1105(a)(29) of title 31,
United States Code.
(b) GAO REPORT.—No later than June 1, 1997, the
Comptroller General of the United States shall report to
Congress on the implementation of this Act, including the
prospects for compliance by Federal agencies beyond those
participating as pilot projects under sections 1118 and
9704 of title 31, United States Code.
SEC. 8. TRAINING.
The Office of Personnel Management shall, in con-
sultation with the Director of the Office of Management
and Budget and the Comptroller General of the United
States develop a strategic planning and performance
measurement training component for its management
training program and otherwise provide managers with an
orientation on the development and use of strategic plan-
ning and program performance measurement.
SEC. 9. APPLICATION OF ACT.
No person who is not an officer or employee of the
United States acting in such capacity shall have standing
to file any civil action in a court of the United States to
enforce any provision or amendment made by this Act. No
provision or amendment made by this Act may be con-
strued as creating any right, privilege, benefit, or entitle-
ment for any person who is not an officer or employee
of the United States acting in such capacity.
SEC. 10. TECHNICAL AND CONFORMING AMENDMENT.
(a) AMENDMENT
TO TITLE 5, UNITED STATES
CODE.—The table of sections for chapter 3 of title 5,
United States Code, is amended by adding after the item
relating to section 305 the following:
‘‘306. Strategic plans.’’.
(b) AMENDMENTS TO TITLE 31, UNITED STATES
CODE.—
(1) AMENDMENT TO CHAPTER 11.—The table
of sections for chapter 11 of title 31, United States
Code, is amended by adding after the item relating
to section 1114 the following:
‘‘1115. Performance plans.
‘‘1116. Program performance reports.
‘‘1117. Exemptions.
‘‘1118. Pilot projects for performance goals.
‘‘1119. Pilot projects for performance budgeting.’’.
(2) AMENDMENT TO CHAPTER 97.—The table
of sections for chapter 97 of title 31, United States
Code, is amended by adding after the item relating
to section 9702 the following:
‘‘9703. Managerial accountability and flexibility.
‘‘9704. Pilot projects for managerial accountability and flexibility.’’.
(c) AMENDMENT
TO TITLE 39, UNITED STATES
CODE.—The table of chapters for part III of title 39,
United States Code, is amended by adding at the end
thereof the following new item:
‘‘28. Strategic planning and performance management ..... 2801’’.
SEC. 11. EFFECTIVE DATES AND PROCEDURES.
(a) IN GENERAL.—The provisions of this Act and
amendments made by this Act shall take effect on the date
of the enactment of this Act, except sections 3, 4, 5, 6(c),
and 7 of this Act, and the amendments made by such sec-
tions, shall take effect on the date of enactment of the
resolution described in subsection (b).
(b) 
RESOLUTION
APPROVING
PERFORMANCE
PLANS.—
(1) RESOLUTION DESCRIBED.—A resolution re-
ferred to in subsection (a) is a joint resolution the
matter after the resolving clause of which is as fol-
lows: ‘‘That Congress approves the development of
departmental and agency strategic plans, perform-
ance plans and reports pursuant to section 306 of
title 5, United States Code, sections 1105(a)(29)
and 9703 of title 31, United States Code, sections
1115, 1116, 1117, and 1119 of title 31, United
States Code, and chapter 28 of title 39, United
States Code (as amended by sections 3, 4, 5, 6, and
7 of the Government Performance and Results Act
of 1993).’’.
(2) INTRODUCTION OF RESOLUTION.—No later
than 30 days after the transmittal by the Comptrol-
ler General of the United States to the Congress of
the report referred to in section 7(b), a resolution as
described in paragraph (1) shall be introduced in the
Senate by the chairman of the Committee on Gov-
ernmental Affairs of the Senate, or by a Member or
Members of the Senate designated by such chair-
man, and shall be introduced in the House by the
chairman of the Committee on Government Oper-
ations of the House of Representatives, or by a
Member or Members of the House designated by
such chairman.
(3) REFERRAL.—A resolution described in
paragraph (1), shall be referred to the Committee on
Governmental Affairs of the Senate and the Com-
mittee on Government Operations of the House of
Representatives by the President of the Senate or
the Speaker of the House of Representatives, as the
case may be. The committee shall make its rec-
ommendations to the Senate or the House of Rep-
resentatives, respectively, within 30 calendar days
following the date of such resolution’s introduction.
(4) DISCHARGE OF COMMITTEE.—If the com-
mittee to which is referred a resolution introduced
pursuant to paragraph (2) (or, in the absence of
such a resolution, the first resolution introduced
with respect to the same departmental or agency
plans and reports) has not reported such resolution
or identical resolution at the end of 30 calendar days
after its introduction, such committee shall be
deemed to be discharged from further consideration
of such resolution and such resolution shall be
placed on the appropriate calendar of the House in-
volved.
(5) PROCEDURE AFTER REPORT OR DISCHARGE
OF
COMMITTEE; VOTE
ON
FINAL
PASSAGE.—(A)
When the committee has reported, or has been
deemed to be discharged (under paragraph (4)) from
further consideration of a resolution described in
paragraph (1), it is at any time thereafter in order
(even though a previous motion to the same effect
has been disagreed to) for any Member of the re-
spective House to move to proceed to the consider-
ation of the resolution. The motion is highly privi-
leged and is not debatable. The motion shall not be
subject to amendment, or to a motion to postpone,
or to a motion to proceed to the consideration of
other business. A motion to reconsider the vote by
which the motion is agreed to or disagreed to shall
not be in order. If a motion to proceed to the consid-
eration of the resolution is agreed to, the resolution
shall remain the unfinished business of the respec-
tive House until disposed of.
(B) Debate on the resolution, and on all debat-
able motions and appeals in connection therewith,
shall be limited to not more than 10 hours, which
shall be divided equally between individuals favoring
and individuals opposing the resolution. A motion
further to limit debate is in order and not debatable.
An amendment to, or a motion to postpone, or a mo-
tion to recommit the resolution is not in order. A
motion to reconsider the vote by which the resolution
is passed or rejected shall not be in order.
(C) Immediately following the conclusion of the
debate on the resolution and a single quorum call at
the conclusion of the debate if requested in accord-
ance with the rules of the appropriate House, the
vote on final passage of the resolution shall occur.
(D) Appeals from the decisions of the Chair re-
lating to the application of the rules of the Senate
or the House of Representatives, as the case may be,
to the procedure relating to a resolution described in
paragraph (1), shall be decided without debate.
(E) If, prior to the passage by one House of a
resolution of that House, that House receives a reso-
lution with respect to departmental or agency strate-
gic plans, performance plans and reports from the
other House, then—
(i) the procedure in that House shall be
the same as if no resolution had been received
from the other House; but
(ii) the vote on final passage shall be on
the resolution of the other House.
(F) It shall not be in order in either the Senate
or the House of Representatives to consider a resolu-
tion described in paragraph (1), or to consider any
conference report on such a resolution, unless the
Comptroller General of the United States transmits
to the Congress a report under section 7(b).
(6) RULEMAKING POWER OF CONGRESS.—The
provisions of this section are enacted by the Con-
gress—
(A) as an exercise of the rulemaking power
of the Senate and the House of Representatives
and as such shall be considered as part of the
rules of each House, and shall supersede other
rules only to the extent that they are inconsist-
ent therewith; and
(B) with full recognition of the constitu-
tional right of either House to change the rules
(so far as they relate to the procedures of that
House) at any time, in the same manner, and
to the same extent as in the case of any other
rule of that House.
Æ
HR 826 IH——2