Here is the August edition of the PMA newsletter. One area with big developments is in acquisition and policy where the SARA Panel has approved twenty-five recommendations in order to improve how the federal government buys goods and services and tracks acquisition data. The panel will make a final report in the fall and submit that to the Office of Federal Procurement Policy. The recommendations seek to increase transparency, competition, accountability and performance in government acquisition. Check out this story in the Acquisition and Sourcing section of the newsletter.

Enjoy!

-Carl DeMaio

August 2006
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UPCOMING EVENTS

Government HR Innovations 2006
September 20-22, 2006 | Arlington, VA

The 2006 National Summit on GASB 43 & 45
September 21-22, 2006 | Arlington, VA

Project Portfolio Management Summit
September 27 –29, 2006 | Arlington, VA

Project Management for Government
October 2-6, 2006 | Arlington, VA
Government Performance Management Week
October 23-27, 2006 | Arlington, VA
The 2006 National Summit on Process Improvement for Government
October 31-November 2, 2006 | Arlington, VA
Employee Performance Management Week
November 13-16, 2006 | Arlington, VA

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January 29-31, 2007
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WEBINARS
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September 14, 2006
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October 11, 2006
Budget Formulation: Estimating and Forecasting Budget Requirements
November 08, 2006
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TABLE OF CONTENTS
  - Government-Wide News
  - Budget and Performance Integrations
  - Improved Financial Management
  - Strategic Management of Human Capital
  - Acquisition and Sourcing
  - Expanded E-Government
    Government-Wide News

Coburn-Obama Effort To Make Federal Spending Transparent

The following article comments on the recent efforts Senators Obama and Coburn have been making to improve federal government financial management and transparency. The two senators are working to introduce S. 2590, the Federal Funding Accountability and Transparency Act. The Act would require OMB to regulate a public website that would provide access to all federal government spending. The bill is receiving wide support and was recently unanimously approved by the Senate Homeland Security and Government Affairs Committee. Read the following article for more information.
http://www.aim.org/guest_column/4795_0_6_0_C/

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Q&A Session: Senator Tom Coburn’s Government Waste Reporting Website

The following Q&A session briefly outlines Senator Coburn’s website for reporting government waste and fraud. The website was launched in April, 2006 and should provide greater federal government transparency and accountability to the taxpayer.
Senator Tom Coburn's government waste reporting page.doc
The following is a press release from Senator Coburn’s office about the launch of the website:
http://coburn.senate.gov/ffm/index.cfm

 

    Budget and Performance Integration

PART Success, PART Failure

The following article analyzes the growth and challenges related to the Program Assessment Rating Tool (PART). John Gilmour, Associate Director of the College of William and Mary’s Public Policy Program, argues that the PART does a good job of requiring programs to measure results, but evidence of program improvement is still very slim. Carl DeMaio, President and Founder of The Performance Institute, suggests that “we operate in an imperfect environment where change takes time. . . . I would judge PART based on the original goals and I would give it high marks.” Read the following article for more information.
http://federaltimes.com/index.php?S=2044341

Watchdog, Lawmakers Eye Better Information Flow

OpenTheGovernment.org Director Patrice McDermott, recently told a House Government Reform subcommittee that all federal agencies were not appropriately complying with FOIA standards. McDermott specifically criticized the Justice Department and White House Office of Management and Budget. "There is no enforcement mechanism provided and no repercussions for ignoring these requirements," she said in written testimony. The Performance Institute urges all federal departments to comply with FOIA standards when processing public information requests. Read the following article for more information.    http://www.govexec.com/story_page.cfm?articleid=34637&dcn=e_gvet

Strategic Planning, Performance Measures & Performance-Based Budgeting   

It is time to act and ensure that your organization’s strategic plans are leading to optimal performance. Four years have passed since the creation of the President’s Management Agenda and other federal, state and local mandates. The Government Performance Management Week is what you need to determine if your performance measures and budgeting process are properly aligned.  There is no time to waste in determining if your organization’s performance measures are actually effective in yielding better results. In order to achieve mandate compliance and overcome challenges at the federal, state and local levels in government, we invite you to attend the Government Performance Management Weekconference,hosted in Arlington, VA on October 23-27, 2006. To learn more, visit
/CENTERS/GPM/Events/P609/P609.htm

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Delivery Performance Standards, Measurement, and Reporting Need Improvement

The Performance Institute would like to highlight the following GAO report on the Department of Defense’s attempts at improving performance and financial management. The report offered suggestions to the Department of Defense for improving its financial management and business transformation processes. The following report highlights the issue areas that the DOD needs to address in order to experience an overall organizational improvement. GAO advises that the DOD implement a comprehensive business transformation plan as well as create a chief management officer to oversee all aspects of growth and improvement. Read the following report for more information.
http://www.gao.gov/highlights/d061006thigh.pdf

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Red Carpet Treatment

The following article details the work done by the University of Michigan's American Customer Satisfaction Index. The customer satisfaction index is responsible for conducting regular surveys on how US citizens feel about the quality of federal government customer services. The latest survey shed some light on the fact that the public actually views federal government customer service quality about the same as private sector service. The Performance Institute urges all federal departments and agencies to review the University of Michigan’s study in order to improve customer service throughout the federal government. To read more, go to:
http://www.govexec.com/dailyfed/0806/080206mm.htm

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Senate Approves Measures to Improve Defense Accountability

The Senate recently approved several amendments to the 2007 Defense appropriations bill. The first amendment passed 96-0 to improve Defense reporting of improper payments. Another amendment proposed to post all mandates from the defense appropriations bill online. The proposal is aimed at improving Defense transparency. The amendment did leave the Defense secretary with power to redact any mandates that would threaten national security. Read the following article for more information.
http://www.govexec.com/story_page.cfm?articleid=34703&dcn=e_gvet

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Government Failure Kept in Dark

Recently the House Appropriations Subcommittee on Labor, Health and Human Services, and Education passed an appropriations bill of over $141 billion of discretionary spending that effectively forbids money to be spent on the Bush Administration’s PART. Critics argue that departments are afraid of the transparency the PART creates. The Program Assessment Rating Tool has received mixed reviews since its creation by the Bush Administration. Please read the following article for more information.
http://www.baltimoresun.com/news/opinion/oped/bal-op.part16aug16,0,5131553.story?coll=bal-oped-headlines

 

   Improved Financial Management

Agencies Still In the Red on Financial Performance 

The Executive Branch Management Scorecard is still showing that federal agencies are performing at a low level in the area of financial management. According to the following article, “In the third quarter of fiscal 2006, 16 of 26 departments and agencies earned red, the lowest grade. Moreover, 12 of those 16 agencies have always gotten red scores in financial performance.” The Performance Institute urges all departments to practice responsible financial management. Please read more about the article by clicking the following link.  
http://www.fcw.com/article95635-08-14-06-Print&newsletter%3Dyes

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Sustained Leadership Is Critical Effective Financial and Business Management Transformation

The Performance Institute would like to highlight the following GAO report on the Department of Defense’s attempts at improving performance and financial management. The report offered suggestions to the Department of Defense for improving its financial management and business transformation processes. The following report highlights the issue areas that the DOD needs to address in order to experience an overall organizational improvement. GAO advises that the DOD implement a comprehensive business transformation plan as well as create a chief management officer to oversee all aspects of growth and improvement. Read the following report for more information.
http://www.gao.gov/highlights/d061006thigh.pdf

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Opportunities for Improvements in FDIC's Internal Controls and Accounting Procedures

A recent report shows that there are several areas where the Federal Deposit Insurance Corporation’s (FDIC) could improve its financial management processes. According to the report the FDIC made errors in several of its operating expense allocation percentages. In addition, the FDIC did not detect several internal control deficiencies in its procurement process. The Performance Institute would like to see the FDIC implement the GAO recommendations listed in the following report. To read more on the FDIC’s financial management practices, click on the following link.
http://www.gao.gov/highlights/d06943high.pdf

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Auditors to look into Federal Protective Service finances

Senate appropriators recently rejected a Homeland Security Department request to shift $42million to Federal Protective Service because of their recent financial troubles. Senators have accused the plan as a short term fix for FPS financial problems. The only way they would approve such a funding boost would be if the FPS outlined ways that it would correct its financial management practices for the long run. Click on the link below for more information.
http://www.govexec.com/story_page.cfm?articleid=34754&dcn=e_gvet

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OMB Pools Info about Improper Payments

OMB recently added an appendix to Circular A-123 in order to bring three 2003 memos together regarding improper payments. The appendix will clarify requirements to help agencies comply with the Improper Payments Information Act. According to OMB, the guidance goes into effect immediately. Please read the following article for more information.
http://www.fcw.com/article95641-08-11-06-Web&newsletter%3Dyes

    Strategic Management of Human Capital

Federal Pay, Benefits Double Private Sector’s

Recent statistics from the Department of Commerce’s U.S. Bureau of Economic Analysis show that in 2005 federal workers earned an average of $106,579, including benefits, more than doubling the private sector average of $53,289. Many government employees, including Colleen Kelley, President of the National Treasury Employees Union are quick to point out that, “the comparison of the white-collar federal workforce to the entire private sector workforce, which includes many blue-collar jobs, isn’t apples to apples.” Click on the link below to read the entire article:
http://www.govexec.com/story_page.cfm?articleid=34714&dcn=e_gvet

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Government HR Innovations

Recruiting and fostering talent is one of the most vital roles that human resources professionals assume. Getting the right people, in the right job and rewarding them in the right way is imperative. Individual employee success plays a major role in agency effectiveness. Rather than relying on salary alone to motivate workers, managers must implement new and interesting ways to reward employees, whether through training, employee development, leadership opportunities or increased workplace flexibilities. Effective rewards are not limited to bonuses and pay increases. HR Innovations 2006 will provide you with the opportunity to brainstorm and discuss new ways of fostering and rewarding dedicated employees and maintaining the government’s status as an “Employer of Choice.” HR Innovations 2006 offers you and your team the opportunity to master new approaches to federal, state and local human resources management and to deliver improved and tangible results. Ensure your agency is well represented at this timely event by registering your team today! Call 703-894-0481 or visit us online at www.HRInnovations.org.

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Invest in HR Work Force to Ensure Government's Bright Future

The human resources workface has many of the same challenges that the entire government faces; aging workers, and recruiting and retaining talent. During the 1990’s there was a steady decline in government human resources employees, and many of these positions were filled by personnel who did not possess the formal training and resources necessary to complete the requirements of the position. In order to strengthen the entire federal government workforce, the government must first strengthen the front line: its human capital officers. Click on the link below to read the entire article:
http://federaltimes.com/index.php?S=2001066

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Group Says OPM Must Do More to Recruit, Retain Hispanics

In 2000, the Office of Personnel Management (OPM) by presidential order, was tasked to oversee federal government minority hiring practices. Recently, a coalition of 40 Hispanic organizations criticized the office, giving them an “F” for the current lack and downward trend of Hispanic recruitment and retention. Hispanic employees comprise a smaller percent of the federal workforce than private sector employment, and the percentage declines more drastically within management positions. Click on the link below to read the entire article:
http://www.washingtonpost.com/wp-

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Feds’ Pay Raise Likely to be Lower

The White House is recommending a 2.2% 2007 cost-of-living adjustment (COLA) for federal employees, coming in substantially lower than last year’s COLA (3.44%). If the current recommendation stands, the federal retirees’ COLA will also come in higher for 2007 (3.1%). The retirement COLA is automatically calculated in conjunction with the Consumer Price Index, while current federal workers are at the discretion of Congress. Click on the link below to read the entire article:
http://www.washtimes.com/functions/print.php?StoryID=20060801-124030-5338r

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GAO: State Should Address Staffing Shortages

The Government Accountability Office (GAO) has come out with a new report criticizing the staffing shortages at the State Department. In just over three years (2002-2005), the number of vacant civil service positions at the department has more than doubled from 800 to over 1,700. In 2002, the Diplomatic Readiness Initiative was started and over 1,000 new positions were hired due to the mandate. However, the department never took into consideration the strain that the wars in Iraq and Afghanistan would have on staffing requirements. The report can be found at
http://www.gao.gov/new.items/d06894.pdf

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OPM Channels Recruits through TV Ads

In an effort to recruit new and talented employees, the Office of Management and Budget (OPM) launched a new ad campaign earlier this year, which just began running in West Virginia. “We currently have more than 22,000 openings throughout the federal government, and we need talented, dedicated Americans to come and make a difference,” OPM Director Linda Springer said. Click on the link below to read the entire article:
http://www.fcw.com/article95668-08-15-06-Web

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Report Recommends Limited Use of Pay Incentives

A recent report by the IBM Center for the Business of Government has concluded that pay for performance incentives that have been used by the federal government over the last few years can be used successful, but can also have a negative effect when there are too many outside factors in determining the outcome of the incentives. “When rewards are linked to attainment of specific targets, progress relative to peers, progress relative to the past, or per unit of product,” the desired outcome is rarely achieved. Click on the link below to read the entire article:
http://www.govexec.com/story_page.cfm?articleid=34807&dcn=todaysnews

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Another Warning of a Retiring Workforce

The pending wave of retirees has become a major issue within federal government organizations, as well as the private sector. The Federal Acquisition workforce is no different with 54% of its employees eligible to retire in the year 2015, in sharp contrast to 13% that were eligible in FY2005. Click on the link below to read the entire article
http://www.washingtonpost.com/wp-dyn/content/article/2006/08/13/AR2006081300573_pf.html

    Acquisition and Sourcing

25 Recommendations for Improving Acquisition

The SARA Panel has approved twenty-five recommendations in order to improve how the federal government buys goods and services and tracks acquisition data. The panel will make a final report in the fall and submit that to the Office of Federal Procurement Policy. Carl DeMaio, President of the Performance Institute, served on the panel. The recommendations seek to increase transparency, competition, accountability and performance in government acquisition. To read the twenty-five recommendations, please visit http://www.gcn.com/print/25_25/41704-1.html

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Contracts Database Short on Info, Long on Problems

The Federal Procurement Data System, created in 1979, was intended to provide the federal acquisition community with details on the government’s $300 billion-a-year contracting operation. However, this database has come to be unreliable when dealing with procurement practices, detailing how many agencies are using performance-based contracts, or even detailing why some contracts were awarded with competition. Carl DeMaio, President of the Performance Institute and chairman of the subcommittee on performance-based contracting for the SARA Panel stressed that, the Federal Procurement Data System does not provide reliable data on federal acquisition and procurement. To read more, please visit
http://www.federaltimes.com/index.php?S=1985392

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DOD Competition Measure Could Go Government-wide

The Service Acquisition Reform Act (SARA) Panel is recommending that agencies issuing services task orders worth more than $100,000 should seek a broad range of competition. This rule used now by the Department of Defense also means that when using the General Services Administration schedule contracts, DOD agencies may choose to alert all companies on the contract and give them a chance to bid, or they may opt to alert fewer companies. If they choose the latter option, DOD agencies must inform enough companies to receive at least three bids. To read more about this recommendation, please visit
http://www.fcw.com/article95439-07-27-06-Web

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OFPP Sets Deadline for Plan to Increase Use of Performance-Based Contracts

The Office of Federal Procurement Policy has given agencies until October 1 to submit a plan on how they will increase the use of performance-based contracting over each of the next five years. The Office of Federal Procurement Policy has set a goal of having forty percent of all contracts performance based. Performance based contracting is designed to increase results and provide better services for the tax payers. The Performance Institute understands and supports the use of performance-based contracting and this acquisition methodology will be highlighted during the 2006 Federal Acquisition Summit to be held in October. For more information on the Summit and to download a copy of the brochure, please visit www.excellenceinacquisition.org. To read more about the OFPP deadline, you can visit http://www.gcn.com/online/vol1_no1/41545-1.html

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GSA Puts its Procurement Database to the Test

The Government Services Administrations is asking industry customers to test the agency’s existing procurement database and determine whether the system needs improvements. The database, which was upgraded in 2004 monitors the agencies current spending on goods and services. The Performance Institute acknowledges the GSA’s initiative to be the one place to find government procurement information. Taxpayers and customers gain enormous benefits when the government makes processes more efficient and becomes more accountable. To read more about the database, please visit http://www.washingtontechnology.com/news/1_1/egov/29032-1.html

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Getting the Most Out of Performance-Based Acquisitions

Performance Based Acquisitions replaces and emphasis on inputs with an emphasis on outcomes, thus creating a bigger emphasis on results. When making the contractor in charge of producing a specified result, taxpayer dollars are being more accurately used. The Performance Institute believes that Performance-Based Acquisition is a valuable tool and offers comprehensive training to help agencies implement this strategic technique. For more information on Performance-Based Acquisitions, please visit www.performanceweb.org. To read more about this article, please visit http://www.governmentleader.com/issues/news/183-1.html

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New Memorandum for Chief Acquisition Officers and Senior Procurement Officers from the Office of Management and Budget

Robert Burton, the Associate Administrator for the Office of Management and Budget has distributed a new memorandum which updates his memo published in September 2004 titled “Increasing the Use of Performance-Based Service Acquisition.” This memo requests that all agencies submit a performance-based acquisition management plan by October 1, 2006. This plan would describe the agency’s current and future PBA activities that will results in an annual increase in the number of PBAs. To read more from this memo, please visit
http://64.233.161.104/search?q=cache:pBOeCLls2F4J:

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OMB To Rate Agencies on Efforts to Break Up Large Contracts

The Office of Management and Budget is taking the steps to address the concerns that agencies are bundling small contracts into one large contract, making it hard for small businesses to bid on them. The OMB is planning on developing and implementing a score card, in consultation with relevant agencies and congressional committees, which would hold agencies accountable for achieving small business procurement goals and satisfy an initiative which was announced by President Bush in 2002. The Performance Institute urges the implementation of this score card and supports the efforts to improve opportunities for small businesses to obtain federal contracts. To read more from this article, please visit http://govexec.com/dailyfed/0806/081806m1.htm

    Expanded E-Government

Center for Project Management and Information Technology

The scorecard for the President’s Management Agenda shows that after E-Gov scores have stabilized and in some cases have seen a few improvements. The scorecard assesses agencies based on five areas of the President’s Management Agenda. The Performance Institute understands the value that an electronic government brings to tax-payers. The Institute has authored a “best-practices” report titled “Creating A Performance Based E-Government.” The report can be downloaded from www.performanceweb.org. To read more about the latest E-Gov score card, the article can be found at http://www.fcw.com/article95499-08-01-06-Web

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Senate Gives $5M to E-Government Fund

After two months of agencies worrying over whether E-Government is going to be properly funded, the Senate has increased E-Gov funding to five million dollars for fiscal year 2007. This amount matches the President’s request. Part of this money will be used to develop a government-wide E-Travel system which would eliminate the need for paper travel document and automate the entire process. To read more about this, please visit http://www.fcw.com/article95472-07-31-06-Web

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Project Management for Government

Cost and schedule overruns plague government projects! Poor project management continues to be one of the biggest headaches facing government managers. Poor project planning, faulty definition of project scope and lack of transparency on project performance opens agencies to significant project risks. To address these challenges, skilled project managers are needed to help bring project costs and timing within an acceptable level. Many complex government management improvement initiatives have been launched over the last few years that rely heavily on project management skills and compliance with state-of-practice project management standards. The skills learned at Project Management for Government will help you better understand how to implement change and accelerate your own career. To learn more, visit: /CENTERS/IT/Events/T273/T273.htm

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OMB Taps Ciafardini for E-Gov Position

The Office of Management and Budget has announced that Andrew Ciafardini will be the new point man for improving the public’s access to and knowledge of E-Government initiatives. This new position will provide taxpayers more access to their government by informing more agencies on the benefits of providing resources online. The Performance Institute acknowledges the importance of E-Gov and has published “Creating A Performance-Based E-Government” and is available to download free at www.performanceweb.org. To read more about the new administration position, please visit http://www.fcw.com/article95617-08-10-06-Web&printLayout

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OMB To Agencies: Measure IT Costs, Savings from E-Gov

With Congress uneasy about the benefits and results of E-Gov, the Office of Management and Budget has directed agencies to being measuring how much money E-Gov is saving them. Karen Evans has informed agencies that by September 30 baselines cost estimates must be developed and projects that are due to be replaced must be identified. Also, the Office of Management and Budget is requiring agencies 1. Identify systems that are duet o end or be severely modified. 2. Develop baseline cost estimates by Sept. 30 for each investment identified under the first task. 3. Measure actual costs of the investments on an ongoing basis starting no later than Sept. 30. To read more about this new requirement please visit, http://www.gcn.com/online/vol1_no1/41595-1.html  

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The Clinger-Cohen Act, 10 Years Later: The Age of Results

The following article is Part 4 of Govexec’s analysis of the Clinger-Cohen Act’s tenth year anniversary. The article discusses whether or not the Act has helped achieve better financial management and savings. The article argues that there has not been a measurable difference in savings, but suggests that government IT entities are not solely at fault. The Act placed additional responsibilities on IT departments and the added duties don’t make it easy to save money. In addition, the article argues that efficiency has not been greatly improved. “Much internal alignment still needs to be done in order to show how today's investments are effecting results-oriented outcomes.” Read the following article for more information. http://www.govexec.com/story_page.cfm?articleid=34626&dcn=e_gvet

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Survey to Gauge E-Gov Scores

The General Services Administration is creating implementing a survey to test how government agencies are using the internet to provide the best services for taxpayers. Martha Dorris, the deputy associate administrator for the GSA’s Office of Citizen Services said that, “This survey will allow us to see which agencies are doing the best job meeting citizens’ needs for information and services.” ;To read more about this survey and its implementation please visit http://www.fcw.com/article95667-08-15-06-Web

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E-Gov Scores Improve Slightly on the Latest Management Scorecard

Three agencies have improved their ratings for electronic government in the administration’s third quarter management score card. The score card which rates agencies on a Green, Yellow, or Red system has illustrated the wide fluctuation on e-gov scores over the past year. Many have speculated that the fluctuation is due to the resistance from Congress to fully fund E-Gov efforts. The Performance Institute recognizes the Departments of Commerce, Education, and Housing and Urban Development and their rising e-government scores during the third quarter. For more information on this article, please visit http://www.govexec.com/story_page.cfm?articleid=34688&dcn=todaysnews. The Performance Institute has published a white paper “Establishing a Performance-Based Electronic Government” and it can be downloaded for free from our website.


President: Carl DeMaio
Newsletter Editor:
Cynthia Craig

The Implementation Update on the PMA is provided as a free monthly e-newsletter to all federal employees about the latest news from the federal government and independent news media about the President's Management Agenda— the Administration's plan to improve performance of government.   The Performance Institute is a private think tank that serves as the nation's leading authority and repository on performance-based management practices for government organizations. Its mission is to identify study and disseminate the leading management innovations pioneered by “best-in-class” government programs at federal, state and local levels. Through its national conferences on pressing issues, interactive executive training programs, and best practice research projects, the Institute provides cutting-edge expertise in the design, implementation and evaluation of strategies to solve operational challenges and enhance government performance.

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