Source: http://www.law.cornell.edu/uscode/text/31/501?qt-us_code_tabs=0
Timestamp: 2015-01-26 10:47:21
Document Index: 137543092

Matched Legal Cases: ['§ 1', '§ 832', '§ 227', '§ 6201', '§ 6602', '§ 8', '§ 840', '§ 201', '§ 206', '§ 207', '§ 207', '§ 1', '§ 208', '§ 1000', '§ 209', '§ 101', '§ 209', '§ 101', '§ 113', '§ 149', '§ 108', '§ 108', '§ 108', '§ 108', '§ 504', '§ 504', '§ 504', '§ 504', '§ 504', '§ 524', '§ 526', '§ 6025', '§ 506', '§ 612', '§ 403', '§ 101', '§ 627', '§ 634', '§ 633', '§ 1426', '§ 632', '§ 632', '§ 539', '§ 831', '§ 730', '§ 21068', '§ 2', '§ 831', '§ 539', '§ 632', '§ 404', '§ 101', '§ 646', '§ 1000', '§ 241', '§ 102', '§ 204', '§ 5', '§ 5', '§ 5', '§ 201', '§ 3', '§ 10', '§ 5', '§ 5', '§ 7', '§ 5', '§ 7']

Pub. L. 106–398, § 1 [[div. A], title VIII, § 832], Oct. 30, 2000, 114 Stat. 1654, 1654A–221, provided that the Comptroller General was to convene a panel of experts to study the policies and procedures governing the transfer of commercial activities for the Federal Government from Government personnel to Federal contractors and to appoint highly qualified and knowledgeable persons, from appropriate governmental agencies and private industry, to serve on the panel, whose chairman would be the Comptroller General or a designated individual within the GAO, and provided that interested parties would be allowed to participate, that the panel would have access to necessary information from Federal agencies, and that the Comptroller General was to submit a report of the panel on the results of the study to Congress no later than May 1, 2002.
Pub. L. 106–53, title II, § 227,Aug. 17, 1999, 113 Stat. 298, provided that:
“(a) In General.—The Secretary [of the Army] shall comply with the requirements of the Federal Activities Inventory Reform Act of 1998 (31 U.S.C. 501 note; Public Law 105–270).
“(b) Compliance With Other Law.—
“(1) Inventory and review.—In carrying out this section, the Secretary shall inventory and review all activities that are not inherently governmental in nature in accordance with the Federal Activities Inventory Reform Act of 1998.
“(2) Architectural and engineering services.—Any review and conversion by the Secretary to performance by private enterprise of an architectural or engineering service (including a surveying or mapping service) shall be carried out in accordance with title IX of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 541 et seq.) [now sections 1101–1104 of title 40].”
Pub. L. 110–28, title VI, § 6201,May 25, 2007, 121 Stat. 171, provided that: “Hereafter, Federal employees at the National Energy Technology Laboratory shall be classified as inherently governmental for the purpose of the Federal Activities Inventory Reform Act of 1998 [Pub. L. 105–270] (31 U.S.C. 501 note).”
Pub. L. 110–28, title VI, § 6602(b),May 25, 2007, 121 Stat. 178, provided that: “Hereafter, Federal employees at the Mine Safety and Health Administration shall be classified as inherently governmental for the purpose of the Federal Activities Inventory Reform Act of 1998 [Pub. L. 105–270] (31 U.S.C. 501 note).”
Pub. L. 105–270, Oct. 19, 1998, 112 Stat. 2382, as amended by Pub. L. 108–271, § 8(b),July 7, 2004, 118 Stat. 814; Pub. L. 109–115, div. A, title VIII, § 840,Nov. 30, 2005, 119 Stat. 2505, provided that:
“This Act may be cited as the ‘Federal Activities Inventory Reform Act of 1998’.
“SEC. 2. ANNUAL LISTS OF GOVERNMENT ACTIVITIES NOT INHERENTLY GOVERNMENTAL IN NATURE.
“(a) Lists Required.—Not later than the end of the third quarter of each fiscal year, the head of each executive agency shall submit to the Director of the Office of Management and Budget a list of activities performed by Federal Government sources for the executive agency that, in the judgment of the head of the executive agency, are not inherently governmental functions. The entry for an activity on the list shall include the following:
“(1) The fiscal year for which the activity first appeared on a list prepared under this section.
“(2) The number of full-time employees (or its equivalent) that are necessary for the performance of the activity by a Federal Government source.
“(3) The name of a Federal Government employee responsible for the activity from whom additional information about the activity may be obtained.
“(b) OMB Review and Consultation.—The Director of the Office of Management and Budget shall review the executive agency’s list for a fiscal year and consult with the head of the executive agency regarding the content of the final list for that fiscal year.
“(c) Public Availability of Lists.—
“(1) Publication.—Upon the completion of the review and consultation regarding a list of an executive agency—
“(A) the head of the executive agency shall promptly transmit a copy of the list to Congress and make the list available to the public; and
“(B) the Director of the Office of Management and Budget shall promptly publish in the Federal Register a notice that the list is available to the public.
“(2) Changes.—If the list changes after the publication of the notice as a result of the resolution of a challenge under section 3, the head of the executive agency shall promptly—
“(A) make each such change available to the public and transmit a copy of the change to Congress; and
“(B) publish in the Federal Register a notice that the change is available to the public.
“(d) Competition Required.—Within a reasonable time after the date on which a notice of the public availability of a list is published under subsection (c), the head of the executive agency concerned shall review the activities on the list. Each time that the head of the executive agency considers contracting with a private sector source for the performance of such an activity, the head of the executive agency shall use a competitive process to select the source (except as may otherwise be provided in a law other than this Act, an Executive order, regulations, or any executive branch circular setting forth requirements or guidance that is issued by competent executive authority). The Director of the Office of Management and Budget shall issue guidance for the administration of this subsection.
“(e) Realistic and Fair Cost Comparisons.—For the purpose of determining whether to contract with a source in the private sector for the performance of an executive agency activity on the list on the basis of a comparison of the costs of procuring services from such a source with the costs of performing that activity by the executive agency, the head of the executive agency shall ensure that all costs (including the costs of quality assurance, technical monitoring of the performance of such function, liability insurance, employee retirement and disability benefits, and all other overhead costs) are considered and that the costs considered are realistic and fair.
“SEC. 3. CHALLENGES TO THE LIST.
“(a) Challenge Authorized.—An interested party may submit to an executive agency a challenge of an omission of a particular activity from, or an inclusion of a particular activity on, a list for which a notice of public availability has been published under section 2.
“(b) Interested Party Defined.—For the purposes of this section, the term ‘interested party’, with respect to an activity referred to in subsection (a), means the following:
“(1) A private sector source that—
“(A) is an actual or prospective offeror for any contract, or other form of agreement, to perform the activity; and
“(B) has a direct economic interest in performing the activity that would be adversely affected by a determination not to procure the performance of the activity from a private sector source.
“(2) A representative of any business or professional association that includes within its membership private sector sources referred to in paragraph (1).
“(3) An officer or employee of an organization within an executive agency that is an actual or prospective offeror to perform the activity.
“(4) The head of any labor organization referred to in section 7103
(a)(4) of title 5, United States Code, that includes within its membership officers or employees of an organization referred to in paragraph (3).
“(c) Time for Submission.—A challenge to a list shall be submitted to the executive agency concerned within 30 days after the publication of the notice of the public availability of the list under section 2.
“(d) Initial Decision.—Within 28 days after an executive agency receives a challenge, an official designated by the head of the executive agency shall—
“(1) decide the challenge; and
“(2) transmit to the party submitting the challenge a written notification of the decision together with a discussion of the rationale for the decision and an explanation of the party’s right to appeal under subsection (e).
“(e) Appeal.—
“(1) Authorization of appeal.—An interested party may appeal an adverse decision of the official to the head of the executive agency within 10 days after receiving a notification of the decision under subsection (d).
“(2) Decision on appeal.—Within 10 days after the head of an executive agency receives an appeal of a decision under paragraph (1), the head of the executive agency shall decide the appeal and transmit to the party submitting the appeal a written notification of the decision together with a discussion of the rationale for the decision.
“(a) Executive Agencies Covered.—Except as provided in subsection (b), this Act applies to the following executive agencies:
“(1) Executive department.—An executive department named in section 101 of title 5, United States Code.
“(2) Military department.—A military department named in section 102 of title 5, United States Code.
“(3) Independent establishment.—An independent establishment, as defined in section 104 of title 5, United States Code.
“(b) Exceptions.—This Act does not apply to or with respect to the following:
“(1) Government accountability office.—The Government Accountability Office.
“(2) Government corporation.—A Government corporation or a Government controlled corporation, as those terms are defined in section 103 of title 5, United States Code.
“(3) Nonappropriated funds instrumentality.—A part of a department or agency if all of the employees of that part of the department or agency are employees referred to in section 2105
“(4) Certain depot-level maintenance and repair.—Depot-level maintenance and repair of the Department of Defense (as defined in section 2460 of title 10, United States Code).
“(5) Executive agencies with fewer than 100 full-time employees as of the first day of the fiscal year. However, such an agency shall be subject to section 2 to the extent it plans to conduct a public-private competition for the performance of an activity that is not inherently governmental.
“(1) Federal government source.—The term ‘Federal Government source’, with respect to performance of an activity, means any organization within an executive agency that uses Federal Government employees to perform the activity.
“(2) Inherently governmental function.—
“(A) Definition.—The term ‘inherently governmental function’ means a function that is so intimately related to the public interest as to require performance by Federal Government employees.
“(B) Functions included.—The term includes activities that require either the exercise of discretion in applying Federal Government authority or the making of value judgments in making decisions for the Federal Government, including judgments relating to monetary transactions and entitlements. An inherently governmental function involves, among other things, the interpretation and execution of the laws of the United States so as—
“(C) Functions excluded.—The term does not normally include—
“(i) gathering information for or providing advice, opinions, recommendations, or ideas to Federal Government officials; or
“(ii) any function that is primarily ministerial and internal in nature (such as building security, mail operations, operation of cafeterias, housekeeping, facilities operations and maintenance, warehouse operations, motor vehicle fleet management operations, or other routine electrical or mechanical services).
“SEC. 6. EFFECTIVE DATE.
“This Act shall take effect on October 1, 1998.”
Pub. L. 104–316, title II, § 201,Oct. 19, 1996, 110 Stat. 3842, provided that: “The purpose of this title [see Tables for classification] is to amend provisions of law to reflect, update, and enact transfers and subsequent delegations of functions made under section 211 of the Legislative Branch Appropriations Act, 1996 (Public Law 104–53, 109 Stat. 535) [see Transfer of Functions note above], as in effect immediately before this title takes effect [Oct. 19, 1996].”
Pub. L. 108–199, div. B, title II, § 206,Jan. 23, 2004, 118 Stat. 73, provided that: “Hereafter, the Secretary of Commerce may use the Commerce franchise fund for expenses and equipment necessary for the maintenance and operation of such administrative services as the Secretary determines may be performed more advantageously as central services, pursuant to section 403 ofPublic Law 103–356 [set out below]: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made for the purpose of providing capital shall be used to capitalize such fund: Provided further, That such fund shall be paid in advance from funds available to the Department and other Federal agencies for which such centralized services are performed, at rates which will return in full all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of automated data processing software and systems (either acquired or donated), and an amount necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That such fund shall provide services on a competitive basis: Provided further, That an amount not to exceed 4 percent of the total annual income to such fund may be retained in the fund for fiscal year 2004 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment, and for the improvement and implementation of department financial management, automated data processing, and other support systems: Provided further, That such amounts retained in the fund for fiscal year 2004 and each fiscal year thereafter shall be available for obligation and expenditure only in accordance with section 605 of this Act [118 Stat. 93]: Provided further, That no later than 30 days after the end of each fiscal year, amounts in excess of this reserve limitation shall be deposited as miscellaneous receipts in the Treasury.”
Pub. L. 108–7, div. B, title II, § 207,Feb. 20, 2003, 117 Stat. 77.
Pub. L. 107–77, title II, § 207,Nov. 28, 2001, 115 Stat. 778.
Pub. L. 106–553, § 1(a)(2) [title II, § 208], Dec. 21, 2000, 114 Stat. 2762, 2762A–79.
Pub. L. 106–113, div. B, § 1000(a)(1) [title II, § 209], Nov. 29, 1999, 113 Stat. 1535, 1501A–33.
Pub. L. 105–277, div. A, § 101(b) [title II, § 209], Oct. 21, 1998, 112 Stat. 2681–50, 2681–87.
Pub. L. 104–208, div. A, title I, § 101(d) [title I, § 113], Sept. 30, 1996, 110 Stat. 3009–181, 3009–200, as amended by Pub. L. 108–7, div. F, title I, § 149,Feb. 20, 2003, 117 Stat. 245, provided that: “There is hereby established in the Treasury a franchise fund pilot, as authorized by section 403 ofPublic Law 103–356 [set out below], to be available as provided in such section for costs of capitalizing and operating administrative services as the Secretary determines may be performed more advantageously as central services: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made prior to the current year for the purpose of providing capital shall be used to capitalize such fund: Provided further, That such fund may be paid in advance from funds available to the Department and other Federal agencies for which such centralized services are performed, at rates which will return in full all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of automatic data processing (ADP) software and systems (either acquired or donated) and an amount necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That such fund shall provide services on a competitive basis: Provided further, That an amount not to exceed four percent of the total annual income to such fund may be retained in the fund for fiscal year 1997 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment, and for the improvement and implementation of Department financial management, ADP, and other support systems: Provided further, That no later than thirty days after the end of each fiscal year amounts in excess of this reserve limitation shall be transferred to the Treasury: Provided further, That such franchise fund pilot shall terminate pursuant to section 403(f) ofPublic Law 103–356.”
Pub. L. 108–447, div. I, title I, § 108,Dec. 8, 2004, 118 Stat. 3292, provided that: “Notwithstanding any other provision of law, the Department of Veterans Affairs shall continue the Franchise Fund pilot program authorized to be established by section 403 ofPublic Law 103–356 [set out below] until October 1, 2005: Provided, That the Franchise Fund, established by title I of Public Law 104–204 [set out as a note under section 301 of Title 38, Veterans’ Benefits] to finance the operations of the Franchise Fund pilot program, shall continue until October 1, 2005.”
Pub. L. 108–199, div. G, title I, § 108,Jan. 23, 2004, 118 Stat. 369.
Pub. L. 108–7, div. K, title I, § 108,Feb. 20, 2003, 117 Stat. 481.
Pub. L. 107–73, title I, § 108,Nov. 26, 2001, 115 Stat. 658.
Pub. L. 113–76, div. F, title V, § 504,Jan. 17, 2014, 128 Stat. 270, provided that: “The Department of Homeland Security Working Capital Fund, established pursuant to section 403 ofPublic Law 103–356 (31 U.S.C. 501 note), shall continue operations as a permanent working capital fund for fiscal year 2014: Provided, That none of the funds appropriated or otherwise made available to the Department of Homeland Security may be used to make payments to the Working Capital Fund, except for the activities and amounts allowed in the President’s fiscal year 2014 budget: Provided further, That funds provided to the Working Capital Fund shall be available for obligation until expended to carry out the purposes of the Working Capital Fund: Provided further, That all departmental components shall be charged only for direct usage of each Working Capital Fund service: Provided further, That funds provided to the Working Capital Fund shall be used only for purposes consistent with the contributing component: Provided further, That the Working Capital Fund shall be paid in advance or reimbursed at rates which will return the full cost of each service: Provided further, That the Committees on Appropriations of the Senate and House of Representatives shall be notified of any activity added to or removed from the fund: Provided further, That the Chief Financial Officer of the Department of Homeland Security shall submit a quarterly execution report with activity level detail, not later than 30 days after the end of each quarter.”
Pub. L. 113–6, div. D, title V, § 504,Mar. 26, 2013, 127 Stat. 367.
Pub. L. 112–74, div. D, title V, § 504,Dec. 23, 2011, 125 Stat. 969.
Pub. L. 111–83, title V, § 504,Oct. 28, 2009, 123 Stat. 2169.
Pub. L. 110–329, div. D, title V, § 504,Sept. 30, 2008, 122 Stat. 3680.
Pub. L. 110–161, div. E, title V, § 524,Dec. 26, 2007, 121 Stat. 2074.
Pub. L. 109–295, title V, § 526,Oct. 4, 2006, 120 Stat. 1382.
Pub. L. 109–13, div. A, title VI, § 6025,May 11, 2005, 119 Stat. 287, provided that: “The Department of Homeland Security shall henceforth provide an appropriations justification for the ‘Department of Homeland Security Working Capital Fund’ to the Committees on Appropriations of the Senate and House of Representatives: Provided, That an annual appropriations justification shall be submitted to the Congress as a part of the President’s budget as submitted under section 1105
(a) of Title 31, United States Code, and shall contain the same level of detail as the Department’s Congressional appropriations justification in support of the President’s budget: Provided further, That the ‘Department of Homeland Security Working Capital Fund’ Congressional appropriations justification for fiscal year 2006 shall be submitted within 15 days of enactment of this Act [May 11, 2005]: Provided further, That the Chief Financial Officer shall ensure that all planned activities and amounts to be funded by the ‘Department of Homeland Security Working Capital Fund’, all reimbursable agreements, and all uses of the Economy Act [31 U.S.C. 1535] are explicitly identified in each Congressional appropriations justification in support of the President’s budget provided for each agency and component of the Department.”
Pub. L. 108–90, title V, § 506,Oct. 1, 2003, 117 Stat. 1153, provided in part: “That such fund [Federal Emergency Management Agency Working Capital Fund] shall hereafter be known as the ‘Department of Homeland Security Working Capital Fund’.”
Pub. L. 104–204, title III, Sept. 26, 1996, 110 Stat. 2915, as amended by Pub. L. 109–295, title VI, § 612(c),Oct. 4, 2006, 120 Stat. 1410, provided in part: “For the establishment of a working capital fund for the Federal Emergency Management Agency, to be available without fiscal year limitation, for expenses and equipment necessary for maintenance and operations of such administrative services as the Administrator determines may be performed more advantageously as central services: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made hereafter for the purpose of providing capital, shall be used to capitalize such fund: Provided further, That such fund shall be reimbursed or credited with advance payments from applicable appropriations and funds of the Federal Emergency Management Agency, other Federal agencies, and other sources authorized by law for which such centralized services are performed, including supplies, materials, and services, at rates that will return in full all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of automated data processing (ADP) software and systems (either acquired or donated), and an amount necessary to maintain a reasonable operating reserve as determined by the Administrator: Provided further, That income of such fund may be retained, to remain available until expended, for purposes of the fund: Provided further, That fees for services shall be established by the Administrator at a level to cover the total estimated costs of providing such services, such fees to be deposited in the fund shall remain available until expended for purposes of the fund: Provided further, That such fund shall terminate in a manner consistent with section 403(f) ofPublic Law 103–356 [set out below].”
Pub. L. 103–356, title IV, § 403,Oct. 13, 1994, 108 Stat. 3413, as amended by Pub. L. 104–208, div. A, title I, § 101(f) [title VI, § 627], Sept. 30, 1996, 110 Stat. 3009–314, 3009–360; Pub. L. 107–67, title VI, § 634,Nov. 12, 2001, 115 Stat. 553; Pub. L. 108–7, div. J, title VI, § 633,Feb. 20, 2003, 117 Stat. 471; Pub. L. 108–136, div. A, title XIV, § 1426,Nov. 24, 2003, 117 Stat. 1670; Pub. L. 108–199, div. F, title VI, § 632,Jan. 23, 2004, 118 Stat. 357; Pub. L. 108–447, div. H, title VI, § 632,Dec. 8, 2004, 118 Stat. 3280; Pub. L. 109–90, title V, § 539,Oct. 18, 2005, 119 Stat. 2088; Pub. L. 109–115, div. A, title VIII, § 831,Nov. 30, 2005, 119 Stat. 2503; Pub. L. 110–161, div. D, title VII, § 730,Dec. 26, 2007, 121 Stat. 2026, provided that:
“(a) Establishment.—There is authorized to be established on a pilot program basis in each of six executive agencies a franchise fund. The Director of the Office of Management and Budget, after consultation with the chairman and ranking members of the Committees on Appropriations and Governmental Affairs of the Senate, and the Committees on Appropriations and Government Operations [now Committee on Oversight and Government Reform] of the House of Representatives, shall designate the agencies.
“(b) Uses.—Each such fund may provide, consistent with guidelines established by the Director of the Office of Management and Budget, such common administrative support services to the agency and to other agencies as the head of such agency, with the concurrence of the Director, determines can be provided more efficiently through such a fund than by other means. To provide such services, each such fund is authorized to acquire the capital equipment, automated data processing systems, and financial management and management information systems needed. Services shall be provided by such funds on a competitive basis.
“(c) Funding.—(1) There are authorized to be appropriated to the franchise fund of each agency designated under subsection (a) such funds as are necessary to carry out the purposes of the fund, to remain available until expended. To the extent that unexpended balances remain available in other accounts for the purposes to be carried out by the fund, the head of the agency may transfer such balances to the fund.
“(2) Fees for services shall be established by the head of the agency at a level to cover the total estimated costs of providing such services. Such fees shall be deposited in the agency’s fund to remain available until expended, and may be used to carry out the purposes of the fund.
“(3) Existing inventories, including inventories on order, equipment, and other assets or liabilities pertaining to the purposes of the fund may be transferred to the fund.
“(d) Report on Pilot Programs.—Within 6 months after the end of fiscal year 1997, the Director of the Office of Management and Budget shall forward a report on the results of the pilot programs to the Committees on Appropriations of the Senate and of the House of Representatives, and to the Committee on Governmental Affairs [now Committee on Homeland Security and Governmental Affairs] of the Senate and the Committee on Government Operations [now Committee on Oversight and Government Reform] of the House of Representatives. The report shall contain the financial and program performance results of the pilot programs, including recommendations for—
“(1) the structure of the fund;
“(2) the composition of the funding mechanism;
“(3) the capacity of the fund to promote competition; and
“(4) the desirability of extending the application and implementation of franchise funds to other Federal agencies.
“(e) Procurement.—Nothing in this section shall be construed as relieving any agency of any duty under applicable procurement laws.
“(f) Termination of Certain Authority.—The authority of the Secretary of Homeland Security to carry out a pilot program under this section shall terminate on October 1, 2008.”
[Pub. L. 109–289, div. B, title II, § 21068, as added by Pub. L. 110–5, § 2,Feb. 15, 2007, 121 Stat. 57, provided that: “Section 403(f) ofPublic Law 103–356 (31 U.S.C. 501 note) shall be applied by substituting the date specified in section 106 of this division [Sept. 30, 2007] for ‘October 1, 2006’.”]
[Pub. L. 109–115, div. A, title VIII, § 831,Nov. 30, 2005, 119 Stat. 2503, provided in part: “That this provision [amending section 403(f) ofPub. L. 103–356, set out above, by substituting “October 1, 2006” for “October 1, 2005”] shall not apply to the Department of Homeland Security.”]
[Pub. L. 109–90, title V, § 539,Oct. 18, 2005, 119 Stat. 2088, amended section 403(f) ofPub. L. 103–356, set out above, by substituting “October 1, 2006” for “October 1, 2005”, for activities related to the Department of Homeland Security Working Capital Fund.]
[Pub. L. 108–199, div. F, title VI, § 632,Jan. 23, 2004, 118 Stat. 357, which directed the amendment of subsec. (f) ofsection 403 of Pub. L. 103–356, set out above, by substituting “October 1, 2004” for “October 1, 2003”, was executed by making the substitution for “December 31, 2004” to reflect the probable intent of Congress.]
Pub. L. 103–356, title IV, § 404,Oct. 13, 1994, 108 Stat. 3414, as amended by Pub. L. 104–208, div. A, title I, § 101(f) [title VI, § 646], Sept. 30, 1996, 110 Stat. 3009–314, 3009–366; Pub. L. 106–113, div. B, § 1000(a)(5) [title II, § 241], Nov. 29, 1999, 113 Stat. 1536, 1501A–303, provided that:
“(a) In General.—To improve the efficiency of executive branch performance in implementing statutory requirements for financial management reporting to the Congress and its committees, the Director of the Office of Management and Budget may adjust the frequency and due dates of or consolidate any statutorily required reports of agencies to the Office of Management and Budget or the President and of agencies or the Office of Management and Budget to the Congress under any laws for which the Office of Management and Budget has financial management responsibility, including—
“(1) chapters 5, 9, 11, 33, 35, 37, 39, 75, and 91 of title 31, United States Code;
“(2) the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note; Public Law 101–410; 104 Stat. 890).
“(b) Application.—The authority provided in subsection (a) shall apply only to reports of agencies to the Office of Management and Budget or the President and of agencies or the Office of Management and Budget to the Congress required by statute to be submitted between January 1, 1995, and April 30, 2000.
“(c) Adjustments in Reporting.—The Director may consolidate or adjust the frequency and due dates of any statutorily required reports under subsections (a) and (b) only after—
“(1) consultation with the Chairman of the Senate Committee on Governmental Affairs [now Committee on Homeland Security and Governmental Affairs] and the Chairman of the House of Representatives Committee on Government Operations [now Committee on Oversight and Government Reform]; and
“(2) written notification to the Congress, no later than February 8 of each fiscal year covered under subsection (b) for those reports required to be submitted during that fiscal year.”
Pub. L. 101–576, title I, § 102,Nov. 15, 1990, 104 Stat. 2838, provided that:
“(1) General management functions of the Office of Management and Budget need to be significantly enhanced to improve the efficiency and effectiveness of the Federal Government.
“(2) Financial management functions of the Office of Management and Budget need to be significantly enhanced to provide overall direction and leadership in the development of a modern Federal financial management structure and associated systems.
“(3) Billions of dollars are lost each year through fraud, waste, abuse, and mismanagement among the hundreds of programs in the Federal Government.
“(4) These losses could be significantly decreased by improved management, including improved central coordination of internal controls and financial accounting.
“(5) The Federal Government is in great need of fundamental reform in financial management requirements and practices as financial management systems are obsolete and inefficient, and do not provide complete, consistent, reliable, and timely information.
“(6) Current financial reporting practices of the Federal Government do not accurately disclose the current and probable future cost of operating and investment decisions, including the future need for cash or other resources, do not permit adequate comparison of actual costs among executive agencies, and do not provide the timely information required for efficient management of programs.
“(b) Purposes.—The purposes of this Act [see Short Title of 1990 Amendment note above] are the following:
“(1) Bring more effective general and financial management practices to the Federal Government through statutory provisions which would establish in the Office of Management and Budget a Deputy Director for Management, establish an Office of Federal Financial Management headed by a Controller, and designate a Chief Financial Officer in each executive department and in each major executive agency in the Federal Government.
“(2) Provide for improvement, in each agency of the Federal Government, of systems of accounting, financial management, and internal controls to assure the issuance of reliable financial information and to deter fraud, waste, and abuse of Government resources.
“(3) Provide for the production of complete, reliable, timely, and consistent financial information for use by the executive branch of the Government and the Congress in the financing, management, and evaluation of Federal programs.”
Pub. L. 101–576, title II, § 204,Nov. 15, 1990, 104 Stat. 2842, provided that: “Nothing in this Act [see Short Title of 1990 Amendment note above] shall be construed to interfere with the exercise of the functions, duties, and responsibilities of the Department of the Treasury, as in effect immediately before the enactment of this Act [Nov. 15, 1990].”
Eff. July 1, 1970, 35 F.R. 7959, 84 Stat. 2085, as amended Pub. L. 97–258, § 5(b),Sept. 13, 1982, 96 Stat. 1068, 1085
[Repealed. Pub. L. 97–258, § 5(b),Sept. 13, 1982, 96 Stat. 1068, 1085. Section designated the Bureau of the Budget as the Office of Management and Budget, provided for the officers and their duties, and provided for performance of the duties of the Director in the event of absence or disability or a vacancy in the office of Director.]
[Repealed. Pub. L. 97–258, § 5(b),Sept. 13, 1982, 96 Stat. 1068, 1085. Section provided that the records, property, personnel, and unexpended balances etc., of the Bureau of the Budget shall become those of the Office of Management and Budget.]
(a) of title 5 of the United States Code, or on July 1, 1970, whichever is later.
The plan placed the Bureau of the Budget within the Executive Office of the President. It made available to the President direct access to important new management instruments. The purpose of the plan was to improve the administration of the Government—to ensure that the Government could perform “promptly, effectively, without waste or lost motion.”
Fulfilling that purpose today is far more difficult—and more important—than it was 30 years ago.
Last April, I created a President’s Advisory Council on Executive Organization and named to it a distinguished group of outstanding experts headed by Roy L. Ash. I gave the Council a broad charter to examine ways in which the Executive Branch could be better organized. I asked it to recommend specific organizational changes that would make the Executive Branch a more vigorous and more effective instrument for creating and carrying out the programs that are needed today. The Council quickly concluded that the place to begin was in the Executive Office of the President itself. I agree.
The past 30 years have seen enormous changes in the size, structure and functions of the Federal Government. The budget has grown from less than $10 billion to $200 billion. The number of civilian employees has risen from one million to more than two and a half million. Four new Cabinet departments have been created, along with more than a score of independent agencies. Domestic policy issues have become increasingly complex. The interrelationships among Government programs have become more intricate. Yet the organization of the President’s policy and management arms has not kept pace.
One result, over the years, has been a tendency to enlarge the immediate White House staff—that is, the President’s personal staff, as distinct from the institutional structure—to assist with management functions for which the President is responsible. This has blurred the distinction between personal staff and management institutions; it has left key management functions to be performed only intermittently and some not at all. It has perpetuated outdated structures.
Improving the management processes of the President’s own office, therefore, is a key element in improving the management of the entire Executive Branch, and in strengthening the authority of its Departments and agencies. By providing the tools that are needed to reduce duplication, to monitor performance and to promote greater efficiency throughout the Executive Branch, this also will enable us to give the country not only more effective but also more economical government—which it deserves.
This plan draws not only on the work of the Ash Council itself, but also on the work of others that preceded—including the pioneering Brownlow Committee of 1936, the two Hoover Commissions, the Rockefeller Committee, and other Presidential task forces.
Essentially, the plan recognizes that two closely connected but basically separate functions both center in the President’s office: policy determination and executive management. This involves (1) what government should do, and (2) how it goes about doing it.
—It establishes a Domestic Council, to coordinate policy formulation in the domestic area. This Cabinet group would be provided with an institutional staff, and to a considerable degree would be a domestic counterpart to the National Security Council.
—It establishes an Office of Management and Budget, which would be the President’s principal arm for the exercise of his managerial functions.
The past year’s experience with the Council for Urban Affairs has shown how immensely valuable a Cabinet-level council can be as a forum for both discussion and action on policy matters that cut across departmental jurisdictions.
The Council will be supported by a staff under an Executive Director who will also be one of the President’s assistants. Like the National Security Council staff, this staff will work in close coordination with the President’s personal staff but will have its own institutional identity. By being established on a permanent, institutional basis, it will be designed to develop and employ the “institutional memory” so essential if continuity is to be maintained, and if experience is to play its proper role in the policy-making process.
There does not now exist an organized, institutionally-staffed group charged with advising the President on the total range of domestic policy. The Domestic Council will fill that need. Under the President’s direction, it will also be charged with integrating the various aspects of domestic policy into a consistent whole.
—Assessing national needs, collecting information and developing forecasts, for the purpose of defining national goals and objectives.
—Identifying alternative ways of achieving these objectives, and recommending consistent, integrated sets of policy choices.
—Providing rapid response to Presidential needs for policy advice on pressing domestic issues.
—Coordinating the establishment of national priorities for the allocation of available resources.
—Maintaining a continuous review of the conduct of ongoing programs from a policy standpoint, and proposing reforms as needed.
Much of the Council’s work will be accomplished by temporary, ad hoc project committees. These might take a variety of forms, such as task forces, planning groups or advisory bodies. They can be established with varying degrees of formality, and can be set up to deal either with broad program areas or with specific problems. The committees will draw for staff support on Department and agency experts, supplemented by the Council’s own staff and that of the Office of Management and Budget.
While the budget function remains a vital tool of management, it will be strengthened by the greater emphasis the new office will place on fiscal analysis. The budget function is only one of several important management tools that the President must now have. He must also have a substantially enhanced institutional staff capability in other areas of executive management—particularly in program evaluation and coordination, improvement of Executive Branch organization, information and management systems, and development of executive talent. Under this plan, strengthened capability in these areas will be provided partly through internal reorganization, and it will also require additional staff resources.
The new Office of Management and Budget will place much greater emphasis on the evaluation of program performance: on assessing the extent to which programs are actually achieving their intended results, and delivering the intended services to the intended recipients. This is needed on a continuing basis, not as a one-time effort. Program evaluation will remain a function of the individual agencies as it is today. However, a single agency cannot fairly be expected to judge overall effectiveness in programs that cross agency lines—and the difference between agency and Presidential perspectives requires a capacity in the Executive Office to evaluate program performance whenever appropriate.
The new Office will also take the lead in devising programs for the development of career executive talent throughout the Government. Not the least of the President’s needs as Chief Executive is direct capability in the Executive Office for insuring that talented executives are used to the full extent of their abilities. Effective, coordinated efforts for executive manpower development have been hampered by the lack of a system for forecasting the needs for executive talent and appraising leadership potential. Both are crucial to the success of an enterprise—whether private or public.
The Office of Management and Budget will be charged with advising the President on the development of new programs to recruit, train, motivate, deploy, and evaluate the men and women who make up the top ranks of the civil service, in the broadest sense of that term. It will not deal with individuals, but will rely on the talented professionals of the Civil Service Commission and the Departments and agencies themselves to administer these programs. Under the leadership of the Office of Management and Budget there will be joint efforts to see to it that all executive talent is well utilized wherever it may be needed throughout the Executive Branch, and to assure that executive training and motivation meet not only today’s needs but those of the years ahead.
Finally, the new Office will continue the Legislative Reference functions now performed by the Bureau of the Budget, drawing together agency reactions on all proposed legislation, and helping develop legislation to carry out the President’s program. It also will continue the Bureau’s work of improving and coordinating Federal statistical services.
While this plan will result in a modest increase in direct expenditures, its strengthening of the Executive Office of the President will bring significant indirect savings, and at the same time will help ensure that people actually receive the return they deserve for every dollar the Government spends. The savings will result from the improved efficiency these changes will provide throughout the Executive Branch—and also from curtailing the waste that results when programs simply fail to achieve their objectives. It is not practical, however, to itemize or aggregate these indirect expenditure reductions which will result from the reorganization.
Domestic Council, established by Reorg. Plan No. 2 of 1970, § 201, eff. July 1, 1970, 35 F.R. 7959, 84 Stat. 2086, set out above, abolished by Reorg. Plan No. 1 of 1977, § 3,42 F.R. 56101, 91 Stat. 1633, set out in the Appendix to Title 5, Government Organization and Employees, effective on or before Apr. 1, 1978, at such time as specified by President. Section 5D of Reorg. Plan No. 1 of 1977 transferred all functions vested in Domestic Council to President with power to delegate performance of such transferred functions within Executive Office of President.
By virtue of the authority vested in me by the Constitution and statutes of the United States, including section 301 of Title 3 of the United States Code, and pursuant to Reorganization Plan No. 2 of 1970 (hereinafter referred to as “the Plan”) [set out as a note under this section], it is ordered as follows:
(c) The delegation to the Director of the Office of Management and Budget, pursuant to subsection (a) of this Section, of the functions vested in the Director of the Bureau of the Budget by Section 103 of the Budget and Accounting Procedures Act of 1950 (31 U.S.C. 18b) [31 U.S.C. 1104
(d)] and subsequently transferred to the President by Part I of Reorganization Plan No. 2 of 1970 (5 U.S.C. App.), shall be implemented in accord with Section 3(a) of the Paperwork Reduction Act of 1980 (94 Stat. 2825; 44 U.S.C. 3503 note), to the extent that provision is applicable.
(c) Providing primary Executive Branch leadership in (1) developing and reviewing a program of policy guidance to departments and agencies for the organization of management’s responsibility under the Federal Labor Relations program; and (2) monitoring issues and trends in labor management relations for referral to appropriate Executive Branch officials including the Federal Labor Relations Council.
“(d) The delegation to the Director of the Office of Management and Budget of the following executive development and personnel functions (which have been transferred to the Office of Personnel Management) is terminated on December 4, 1977:
“(1) Providing overall Executive Branch leadership, regulation, and guidance in executive personnel selection, development and management.
“(2) Studying and reporting on issues relating to position classification and the compensation of Federal civilian employees, including linkages among pay systems, and providing reports on average grade levels, work-years and personnel costs of Federal civilian employees.
“(3) Providing primary Executive Branch leadership in (i) developing and reviewing a program of policy guidance to departments and agencies for the organization of management responsibility under the Federal Labor Relations program; and (ii) monitoring issues and trends in labor management relations for referral to appropriate Executive Branch officials including the Federal Labor Relations Council.”.
“The Office of Personnel Management, in conjunction with the Director of the Office of Management and Budget, shall establish and maintain a program for the policy guidance of agencies on labor-management relations in the Federal service and shall periodically review the implementation of these policies. The Office of Personnel Management shall be responsible for the day-to-day policy guidance under that program. The Office of Personnel Management also shall continuously review the operation of the Federal labor-management relations program to assist in assuring adherence to its provisions and merit system requirements; implement technical advice and information programs for the agencies; assist in the development of programs for training agency personnel and management officials in labor-management relations; and, from time to time, report to the Council on the state of the program with any recommendations for its improvement.”.
Sec. 4. Section 5(a) of Executive Order No. 11636 of December 17, 1971 [formerly set out as a note under 22 U.S.C. 801], establishing an Employee-Management Relations Commission as a committee of the Board of the Foreign Service, is amended by deleting: “The representative of the Office of Management and Budget shall be the Chairman of the Commission” and substituting therefor “The representative of the Office of Personnel Management shall be the Chairman of the Commission”.
Executive Order No. 12301, Mar. 26, 1981, 46 F.R. 19211, as amended by Ex. Ord. No. 13118, § 10(5), Mar. 31, 1999, 64 F.R. 16598, which established the President’s Council on Integrity and Efficiency in Federal programs, was revoked by Ex. Ord. No. 12625, Jan. 27, 1988, 53 F.R. 2812, formerly set out below.
Section 1. Sec. 1(c) of Executive Order No. 11541 of July 1, 1970, as amended [set out as a note above], is amended by deleting the last phrase “is terminated on October 9, 1977” and substituting therefor “shall be implemented in accord with Section 3(a) of the Paperwork Reduction Act of 1980 (94 Stat. 2825; 44 U.S.C. 3503 note), to the extent that provision is applicable”.
(a) “Secretary of Commerce” is deleted in Section 1 and “Director of the Office of Management and Budget” is substituted therefor.
(b) “Secretary” is deleted wherever it appears in Sections 1, 2, 4, 5, and 6 and “Director” is substituted therefor.
(c) “Department of Commerce” is deleted in Section 6 and “Office of Management and Budget” is substituted therefor.
“Sec. 7. As required by Section 3(a) of the Paperwork Reduction Act of 1980 (94 Stat. 2825; 44 U.S.C. 3503 note), the Director shall redelegate to the Administrator for the Office of Information and Regulatory Affairs, Office of Management and Budget, all functions, authority, and responsibility under Section 103 of the Budget and Accounting Procedures Act of 1950 (31 U.S.C. 18b) [31 U.S.C. 1104
(d)] which have been vested in the Director by this Order.”
(a) “Secretary of Commerce, hereinafter referred to as the Secretary,”, is deleted in Section 1 and “Director of the Office of Management and Budget, hereinafter referred to as the Director,”, is substituted therefor.
(b) “Secretary” is deleted wherever it appears in Sections 2(a), 2(b), 2(c), 3, 4, and 5 and “Director” is substituted therefor.
(b) Section 4 of Executive Order No. 11961, as amended [22 U.S.C. 3101 note], is further amended by deleting “the Secretary of Commerce shall perform the functions set forth in Sections 4(a)(3) and 5(c) of the Act” [22 U.S.C. 3103
(a)(3), 3104
(c)], and substituting therefor “the Secretary of Commerce shall perform the function of making periodic reports to the Committees of the Congress as set forth in Section 4(a)(3) of the Act” [22 U.S.C. 3103
Ex. Ord. No. 12479, May 24, 1984, 49 F.R. 22243, which established President’s Council on Management Improvement, assigned functions of Council and responsibilities of Chairman, and provided for administrative support, was revoked by Ex. Ord. No. 12816, Oct. 14, 1992, 57 F.R. 47562, formerly set below.
Ex. Ord. No. 12552, Feb. 25, 1986, 51 F.R. 7041, which provided for establishment of a comprehensive program for improvement of productivity throughout all Executive departments and agencies, was superseded by Ex. Ord. No. 12637, Apr. 27, 1988, 53 F.R. 15349, formerly set out below, and was revoked by Ex. Ord. No. 13048, § 5, June 10, 1997, 62 F.R. 32469, set out below.
(b) Identify by April 29, 1988, in cooperation with the Director of the Office of Management and Budget all commercial activities currently performed by government. The department and agency heads are encouraged to consult with the President’s Commission on Privatization in making such identification;
(d) Meet the study goals for Fiscal Year 1988 set forth in “Management of the United States Government, Fiscal Year 1988”; and thereafter, beginning with Fiscal Year 1989, conduct annual studies of not less than 3 percent of the department or agency’s total civilian population, until all identified potential commercial activities have been studied;
Sec. 4. For purposes of this Order, the terms “commercial activity,” “conversion to contract,” and “cost comparison” shall have the meanings set forth in OMB Circular No. A–76, as revised.
Ex. Ord. No. 12625, Jan. 27, 1988, 53 F.R. 2812, which established President’s Council on Integrity and Efficiency as an interagency committee, was revoked by Ex. Ord. No. 12805, May 11, 1992, 57 F.R. 20627, formerly set out below.
Ex. Ord. No. 12637, Apr. 27, 1988, 53 F.R. 15349, which established a productivity improvement program for the Federal Government, was revoked by Ex. Ord. No. 13048, § 5, June 10, 1997, 62 F.R. 32469, set out below.
(c) “Originally authorized purposes” means the general objectives of the original grant program; however, the term is not intended to include every condition required for a grantee to have obtained the original grant.
(d) “Transfer price” means: (i) the amount paid or to be paid by a private party for an infrastructure asset, if the asset is transferred as a result of competitive bidding; or (ii) the appraised value of an infrastructure asset, as determined by the head of the executive department or agency and the Director of the Office of Management and Budget, if the asset is not transferred as a result of competitive bidding.
(e) “State and local governments” means the government of any State of the United States, the District of Columbia, any commonwealth, territory, or possession of the United States, and any county, municipality, city, town, township, local public authority, school district, special district, intrastate district, regional or interstate governmental entity, council of governments, and any agency or instrumentality of a local government, and any federally recognized Indian Tribe.
(c) Approve State and local governments’ requests to privatize infrastructure assets, consistent with the criteria in section 4 of this order and, where necessary, grant exceptions to the disposition requirements of the “Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments” common rule, or other relevant rules or regulations, for infrastructure assets; provided that the transfer price shall be distributed, as paid, in the following manner: (i) State and local governments shall first recoup in full the unadjusted dollar amount of their portion of total project costs (including any transaction and fix-up costs they incur) associated with the infrastructure asset involved; (ii) if proceeds remain, then the Federal Government shall recoup in full the amount of Federal grant awards associated with the infrastructure asset, less the applicable share of accumulated depreciation on such asset (calculated using the Internal Revenue Service accelerated depreciation schedule for the categories of assets in question); and (iii) finally, the State and local governments shall keep any remaining proceeds.
Ex. Ord. No. 12805, May 11, 1992, 57 F.R. 20627, which related to integrity and efficiency in Federal programs, was omitted from the Code pursuant to Pub. L. 110–409, § 7(c)(2),Oct. 14, 2008, 122 Stat. 4313, which provided that Ex. Ord. No. 12805, as in effect before Oct. 14, 2008, was to have no force or effect on and after the earlier of either the date on which the Council of the Inspectors General on Integrity and Efficiency becomes effective and operational or the last day of the 180-day period beginning on Oct. 14, 2008. See section 7(c)(2) ofPub. L. 110–409, set out as an Effective Date; Existing Executive Orders note under section 11 of the Inspector General Act of 1978, Pub. L. 95–452, in the Appendix to Title 5, Government Organization and Employees.
Ex. Ord. No. 12816, Oct. 14, 1992, 57 F.R. 47562, which established the President’s Council on Management Improvement and provided for its membership, functions, etc., was revoked by Ex. Ord. No. 13048, § 5, June 10, 1997, 62 F.R. 32469, set out below.
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Budget and Accounting Act of 1921, as amended (31 U.S.C. 1101et seq.), and section 301 of title 3, United States Code, and in order to assist in the control of the Federal deficit and improve the administrative productivity of the Federal Government, it is hereby ordered as follows:
Section 1. All executive departments and agencies shall include a separate category for “administrative expenses” when submitting their appropriation requests to the Office of Management and Budget (OMB) for fiscal years 1994 through 1997. The Director of OMB (Director), in consultation with the agencies, shall establish and revise as necessary a definition of administrative expenses for the agencies. All questions regarding the definition of administrative expenses shall be resolved by the Director.
Sec. 3. The Director shall review agency requests for administrative expenses. The Director shall ensure that all agency requests for such expenses are reduced in accordance with section 2. To the extent that any agency fails to comply with the mandates of section 2, the Director is authorized to reduce the request for administrative expenses in that agency’s budget to achieve the appropriate reduction.
Putting people first means ensuring that the Federal Government provides the highest quality service possible to the American people. Public officials must embark upon a revolution within the Federal Government to change the way it does business. This will require continual reform of the executive branch’s management practices and operations to provide service to the public that matches or exceeds the best service available in the private sector.
Section 1. Customer Service Standards. In order to carry out the principles of the National Performance Review, the Federal Government must be customer-driven. The standard of quality for services provided to the public shall be: Customer service equal to the best in business. For the purposes of this order, “customer” shall mean an individual or entity who is directly served by a department or agency. “Best in business” shall mean the highest quality of service delivered to customers by private organizations providing a comparable or analogous service.
All executive departments and agencies (hereinafter referred to collectively as “agency” or “agencies”) that provide significant services directly to the public shall provide those services in a manner that seeks to meet the customer service standard established herein and shall take the following actions:
Each executive department and agency with infrastructure responsibilities (hereinafter referred to collectively as “agencies”) shall develop and implement plans for infrastructure investment and management consistent with the following principles:
(3) Agencies also should use these reviews to identify the demand for different levels of infrastructure services. Since efficient levels of service can often best be achieved by properly pricing infrastructure, the Federal Government—through its direct investments, grants, and regulations—should promote consideration of market-based mechanisms for managing infrastructure.
(d) Encouragement of More Effective State and Local Programs. To promote the efficient use of Federal infrastructure funds, agencies should encourage the State and local recipients of Federal grants to implement planning and information management systems that support the principles set forth in section 2(a) through (c) of this order. In turn, the Federal Government should use the information from the State and local recipients’ management systems to conduct the system-level reviews of the Federal Government’s infrastructure programs that are required by this order.
Sec. 3. Submission of Plans. Agencies shall submit initial plans to implement these principles to the Director of the Office of Management and Budget (“OMB”) by March 15, 1994. Agency plans shall list the actions that will be taken to provide the data and analysis necessary for supporting infrastructure-related proposals in future budget submissions. Agency implementation plans should be consistent with OMB Circular A–94 that outlines the analytical methods required under the principles set forth in section 2 of this order.
Ex. Ord. No. 13048, June 10, 1997, 62 F.R. 32467, as amended by Ex. Ord. No. 13284, § 7, Jan. 23, 2003, 68 F.R. 4075, provided:
Improvement of Government operations is a continuing process that benefits from interagency activities. One group dedicated to such activities is the President’s Council on Management Improvement (PCMI), established by Executive Order 12479 in 1984, reestablished by Executive Order 12816 in 1992. In the intervening years, some activities of the PCMI have been assumed by the President’s Management Council, the Chief Financial Officers Council, and the Chief Information Officers Council. These organizations are also focussed on improving agencies’ use of quality management principles. Other functions have been assigned to individual agencies. Nonetheless, remaining administrative management matters deserve attention across agency lines.
(a) Purpose and Membership. An Interagency Council on Administrative Management (“Council”) is established as an interagency coordination mechanism. The Council shall be composed of the Deputy Director for Management of the Office of Management and Budget, who shall serve as Chair, and one senior administrative management official from each of the following agencies:
Department and agency heads shall advise the Chair of their selections for membership on the Council. Council membership shall also include representatives of the Chief Financial Officers Council, the Chief Information Officers Council, the Federal Procurement Council, the Interagency Advisory Group of Federal Personnel Directors, and the Small Agency Council, as well as at-large members appointed by the Chair, as he deems appropriate. The Chair shall invite representatives of the Social Security Administration to participate in the Council’s work, as appropriate. The Council shall select a Vice Chair from among the Council’s membership.
(2) support activities and initiatives of the President’s Management Council, the Chief Financial Officers Council, the Chief Information Officers Council, the Federal Procurement Council, and the Interagency Advisory Group of Federal Personnel Directors designed to develop, review, revise, and implement Governmentwide administrative management policies; and
Sec. 5. Revocation. Executive Order 12816 (creating the President’s Council on Management Improvement), Executive Order 12552 (establishing the executive branch productivity improvement program) and Executive Order 12637 (revising the executive branch productivity improvement program) are revoked.
However, with advances in technology and service delivery systems in other sectors, the public’s expectations of the Government have continued to rise. The Government must keep pace with and even exceed those expectations. Government must also address the need to improve its services, not only to individuals, but also to private and Governmental entities to which the agency directly provides significant services. Government managers must learn from what is working in the private sector and apply these best practices to deliver services better, faster, and at lower cost. Such best practices include increasingly popular lower-cost, self-service options accessed by the Internet or mobile phone and improved processes that deliver services faster and more responsively, reducing the overall need for customer inquiries and complaints. The Federal Government has a responsibility to streamline and make more efficient its service delivery to better serve the public.
Sec. 2. Agency Customer Service Plans and Activities. Within 180 days of the date of this order, each agency shall develop, in consultation with the Office of Management and Budget (OMB), a Customer Service Plan (plan) to address how the agency will provide services in a manner that seeks to streamline service delivery and improve the experience of its customers. As used in this order, the term “customer” refers to any individual or to any entity, including a business, tribal, State or local government, or other agency, to which the agency directly provides significant services. The plan shall set forth the agency’s approach, intended benefits, and an implementation timeline for the following actions:
Sec. 4. Assistance in Implementation. In consultation with the heads of executive departments and agencies, the Chief Performance Officer, who also serves as the Deputy Director for Management of the OMB, shall develop guidance for implementing the activities outlined in this order. Such guidance shall include, among other things, the nature and scope of services to which the order’s requirements will apply. The Office of Management and Budget, the General Services Administration, and the Office of Science and Technology Policy shall assist and support agencies in developing customer service standards and plans, online posting of customer service metrics and best practices, expediting review for customer feedback mechanisms under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), improving the design and management of agency websites providing services or information to the public in compliance with section 508 of the Rehabilitation Act [of 1973] (29 U.S.C. 794d), and using innovative technologies to improve customer service at lower costs.
(b) The Federal Chief Performance Officer (CPO), who also serves as the Deputy Director for Management of OMB and the Chair of the President’s Management Council (PMC), shall work with the PMC to support agencies’ performance and management reform and cost-cutting efforts. The CPO will lead OMB and the PMC in identifying practices that should be adopted across agencies and in facilitating reforms that require cross-agency coordination and cooperation. The CPO shall work with agencies to ensure that each area identified as critical to performance improvement has robust performance metrics in place, and that these metrics are frequently analyzed and reviewed by agency leadership. Agencies shall update these metrics quarterly, as appropriate, on the website performance.gov.
(c) In accordance with the GPRA Modernization Act of 2010 (31 U.S.C. 1115et seq.), each agency’s Chief Operating Officer (COO) shall be designated as the Senior Accountable Official responsible for leading performance and management reform efforts, and for reducing wasteful or ineffective programs, policies, and procedures. In discharging this responsibility, this official shall be accountable for conducting frequent data-driven reviews of agency progress toward goals in the areas that OMB identifies as being critical to performance improvement across agencies or that the agency head identifies as top near-term priorities. These goals may include reforming information technology, reducing improper payments, leveraging the Federal Government’s purchasing scale, reducing high-risk contracting practices, improving the management of Federal real estate, enhancing customer service, and achieving agency and Federal Government priority goals identified pursuant to the GPRA Modernization Act of 2010.
(e) The Chief Financial Officers (CFOs) at all agencies shall be responsible for achieving agency cost savings. This will include each agency’s share of the $2.1 billion in administrative cost savings identified in my Fiscal Year 2012 Budget, and for achieving those savings as quickly as possible. The CFOs are encouraged to realize these cost savings by targeting wasteful practices and by reducing, and identifying alternatives to, discretionary travel, the use of consultants, and other administrative expenses. The Federal CFO Council shall provide a monthly report on these efforts to the PMC, with relevant findings and progress reported on performance.gov.
Memorandum of President of the United States, Oct. 1, 1993, 58 F.R. 52393, which directed the head of executive departments and agencies, and requested independent agencies, to establish a chief operating officer and implement additional agency management reforms and established the President’s Management Council to advise and assist the President and Vice President in ensuring that such reforms were implemented, was revoked by Memorandum of President of the United States, July 11, 2001, 66 F.R. 37105, set out below.
Throughout the campaign and in my Budget, I have called for “active, but limited” Government: one that empowers States, cities, and citizens to make decisions; ensures results through accountability; and promotes innovation through competition. Thus, if reform is to help the Federal Government adapt to a rapidly changing world, its primary objectives must be a Government that is:
Citizen-centered—not bureaucracy centered;
Results-oriented—not process-oriented; and
Market-based—actively promoting, not stifling, innovation and competition.
(a) implementing the President’s and agency head’s goals and the agency’s mission;
3. Establishment of President’s Management Council.
In order to advise and assist the President in ensuring that Government reform is implemented throughout the executive branch, I hereby establish the President’s Management Council (“Council”). The Council shall comprise:
The Deputy Director of the Office of Management and Budget shall serve as Chairperson of the Council. The Chairperson of the Council may appoint a Vice-Chairperson from the Council’s membership to assist the Chairperson in conducting affairs of the Council.
(a) improving overall executive branch management, including implementation of the President’s Management Agenda;
(a) the memorandum of October 1, 1993, entitled “Implementing Management Reform in the Executive Branch” is revoked.
By this memorandum, I assign our Nation’s first Chief Performance Officer, who also serves as the Deputy Director for Management of the Office of Management and Budget (the “Chief Performance Officer”), the responsibility of leading the effort to create a plan for the restructuring and streamlining of the executive branch of the Federal Government. The first focus of this effort shall be on the executive departments and agencies and the functions that support one of our most important priorities—increasing trade, exports, and our overall competitiveness (“trade and competitiveness”).
(2) As part of this review, the Chief Performance Officer and Executive Director shall confer broadly with the heads and staff of executive departments and agencies, including the offices and agencies within the Executive Office of the President (collectively, the “agencies”). They should also consult broadly with external stakeholders, including Members of Congress, business leaders, unions, nongovernmental organizations, and government reform experts, to hear their individual and independent perspectives on what we are doing well and where we could improve our effectiveness and efficiency.
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