n / GOVERNMENT PERFORMANCE AND RESULTS ACT
OF 1993
Y4.G 74/7: G 74/16
Governnent PeTfornance and Results...
aRING
J.JLJLliJ
BEFORE THE
LEGISLATION AND NATIONAL
SECURITY SUBCOMMITTEE
OF THE
COMMITTEE ON
GOVERNMENT OPERATIONS
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
FIRST SESSION
ON
H.R. 826
TO PROVIDE FOR THE ESTABLISHMENT, TESTING, AND EVALUATION
OF STRATEGIC PLANNING AND PERFORMANCE MEASUREMENT IN
THE FEDERAL GOVERNMENT, AND FOR OTHER PURPOSES
MARCH 23, 1993
Printed for the use of the Committee on Government Operations
U.S. GOVERNMENT PRINTING p&lCE
74-789 CC WASraNGTON : 1994^^^«r-s„^P4<0/i;,«3^/.p.
For sale by the U.S. Government Printing Office ^^OT?.?r> -^
Superintendent of Documents, Congressional Sales Office, Washington, DC 20402
ISBN 0-16-0A3549-8
n / GOVERNMENT PERFORMANCE AND RESULTS kCl
OF 1993
'4.G 74/7:0 74/16
owernnent Perfornance and Results. .
aKING
±±±LIJ
BEFORE THE
LEGISLATION AND NATIONAL
SECURITY SUBCOMMITTEE
OF THE
COMMITTEE ON
GOVERNMENT OPERATIONS
HOUSE OP REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
FIRST SESSION
ON
H.R. 826
TO PROVIDE FOR THE ESTABLISHMENT, TESTING, AND EVALUATION
OF STRATEGIC PLANNING AND PERFORMANCE MEASUREMENT IN
THE FEDERAL GOVERNMENT, AND FOR OTHER PURPOSES
MARCH 23, 1993
Printed for the use of the Committee on Government Operations
U.S. GOVERNMENT PRINTING OFFICE
74-789 CC WASHINGTON : 1994
For sale by the U.S. Government Printing Office
Superintendent of Documents, Congressional Sales Office, Washington, DC 20402
ISBN 0-16-043549-8
COMMTITEE ON GOVERNMENT OPERATIONS
JOHN CONYERS,
CARDISS COLLINS, Hlinois
GLENN ENGUSH, CHilahoma
HENRY A. WAXMAN, California
MIKE SYNAR, Oklahoma
STEPHEN L. NEAL, North Carolina
TOM LANTOS, Cahfomia
MAJOR R OWENS, New York
EDOLPHUS TOWNS, New York
JOHN M. SPRATT, JR., South Carolina
GARY A. CONDIT, CaUfomia
COLLIN C. PETERSON, Minnesota
KAREN L. THURMAN, Florida
BOBBY L. RUSH, Hlinois
CAROLYN B. MALONEY, New Yoric
THOMAS M. BARRETT, Wisconsin
DONALD M. PAYNE, New Jersey
FLOYD H. FLAKE, New York
JAMES A. HAYES, Louisiana
CRAIG A. WASHINGTON, Texas
BARBARA ROSE COLUNS, Michigan
CORRINE BROWN, Florida
MARJORIE MARGOLIES-MEZVINSKY,
Pennsylvania
LYNN C. WOOLSEY, California
Jr., Michigan, Chairman
WILUAM F. CLINGER, JR., Pennsylvania
AL McCANDLESS, California
J. DENNIS HASTERT, Illinois
JON L. KYL, Arizona
CHRISTOPHER SHAYS, Connecticut
STEVEN SCHIFF, New Mexico
C. CHRISTOPHER COX, California
CRAIG THOMAS, Wyoming '
ILEANA ROS-LEHTINEN, Florida
RONALD K. MACHTLEY, Rhode Island
DICK ZIMMER. New Jersey
WILLIAM H. ZELIFF, Jr., New Hampshire
JOHN M. MCHUGH, New York
STEPHEN HORN, California
DEBORAH PRYCE, Ohio
JOHN L. MICA, Florida
BERNARD SANDERS, Vermont
(Independent)
JinJAN Epstein, Staff Director
Donald F. Goldberg, Deputy Staff Director
Laurie Cody, Professional Staff Member
Carolyn Donnelly, Clerk
Matthew R. Fletcher, Minority Staff Director
Kevin M. SabO, Minority Counsel
Legislation and National Security Subcommittee
JOHN CONYERS, JR., Midiigan, Chairman
CARDISS COLLINS, Hlinois AL McCANDLESS, California
GLENN ENGLISH, Oklahoma WILUAM F. CLINGER, JR., Pennsylvania
STEPHEN L. NEAL, North Carolina JON L. KYL, Arizona
CAROLYN B. MALONEY, New York DICK ZIMMER, New Jereey
TOM LANTOS, California
CORRttra: BROWN, Florida
James C. Turner, Staff Director
Cheryl G. Matcho, Clerk
(II)
CONTENTS
Page
Hearing held on March 23, 1993 1
Text ofHJl. 826 6
Statement of:
Bowsher, Charles A., Comptroller General, U.S. Government Accounting
Office, accompanied by David Mathiasen and Bill Hunt 39
Coiwers, Hon. John, Jr., a Representative in Congress from the State
of Michigan, and chairman. Legislation and National Security Sub-
committ^: Opening statement 1
Fosler, Scott, president. National Academy of Public Administration, ac-
companied by Joseph Wholey, chairman, Panel on Performance Review;
and Barbara Dyer, director. New Alliance for Redesigning Government 117
Morris, RusselL Commissioner, Financial Management Service, Depart-
ment of the Treasury 108
Panetta, Leon, Director, Office of Management and Budget 87
Roth, Hon. William V., Jr., a Senator in Congress from the State of
Delaware 35
Sharp, John, comptroller of public accounts, State of Texas 74
Letters, statements, etc., submitted for the record by:
Bowsher, Charles A., Comptroller General, VS. Government Accounting
Office: Prepared statement 45
Clinger, Hon. William F., Jr., a Representative in Congress from the
State of Pennsylvania: IVepared statement 32
Confers, Hon. John, Jr., a Representative in Congress from the State
of Michigan, and chairman, Legislation and National Security Sub-
committee: Prepared statement 3
Fosler, Scott, president. National Academy of Public Administration: Pine-
pared statement 119
McCandless, Hon. Al, a Representative in Congress from the State of
California: Prepared statement 34
Morris, Russell, Commissioner, Financial Management Service, Depart-
ment of the Treasury: Prepared statement 110
Panetta, Leon, Director, Office of Management and Budget: Prepared
statement 92
Roth, Hon. William V., Jr., a Senator in Congress fitx>m the State of
Delaware: Prepared statement 37
Sharp, John, comptroller of public accounts, State of Texas: Prepared
statement 77
(III)
GOVERNMENT PERFORMANCE AND RESULTS
ACT OF 1993
TUESDAY, MARCH 23, 1993
House of Representatives,
Legislation and National Security Subcommittee
OF THE Committee on Government Operations,
Washington, DC.
The subcommittee met. pursuant to notice, at 10 a.m., in room
2154, Raybum House Office Building, Hon. John Conyers, Jr.
(chairman of the subcommittee) presiding.
Present: Representatives John Conyers, Jr., Glenn English, Wil-
liam F. Clinger, Jr., and Dick Zimmer.
Also present: Representative Craig Thomas.
Staff present: Julian Epstein, staff director; Donald Goldberg,
deputy staff director; Laune Cody, professional staff member; Caro-
lyn Donnelly, and Cheryl Matcho, clerks; and Kevin M. Sabo, mi-
nority counsel.
OPENING STATEMENT OF CHAHIMAN CONYERS
Mr. Conyers. Good morning, the subcommittee will come to
order.
We are here today to discuss H.R. 826, the "Government Per-
formance and Results Act of 1993." I have asked the Director of the
Office of Management and Budget to talk with us about various op-
tions for implementing the various recommendations from the
President's National Performance Review, which is scheduled to be
released in September.
We have a unique opportimity here to make fundamental
changes in the way the Federal Government does business. No
longer can we tolerate a structure, culture, and lack of leadership
that allows waste and mismanagement to dominate the Federal
agencies.
This opportimity is unique for several reasons.
First, and most importantly, we have a President who is dem-
onstrating strong leadership and who is committed to making the
waste ana mismanagement issue one of the top priorities.
Second, if we are asking the taxpayer to make great sacrifices as
part of the economic plan, we must demonstrate to them that this
is not business as usual. We must have their confidence that we
can change government to make it more efficient and more effec-
tive.
This committee hopes to play a central role in these efforts. And
this committee's central charter is not onlv to identify waste, fraud,
and abuse throughout the government, but also to propose solu-
(1)
tions to those problems and to craft legislation that addresses mis-
management.
The bill before us today is an important step toward reinventing
government, and it is closely tied to the Chief Financial Officers
Act that was passed by this committee during the 101st Congress.
The legislation would require Federal agencies to develop strategic
plans, set performance goals, and report annually to Congress and
the Office of Management and Budget the result a program
achieves.
After a series of pilot projects, this measure will eventually be
implemented govemmentwide where all programs will be evalu-
ated, and budgeted, based on their performance. This legislation
will also give program managers the flexibility to achieve their set
goals in exchange for better accountability, a significant part of the
act.
The dilemma faced by the government is that there is no clear
bottom line: No profit margins, no market share, no means to
gauge how we are doing. When Congress creates new programs, we
seldom define specific goals for that program. We debate, until we
are blue in the face, how we are going to fund a progfram, its affect
on the budget, its aifect on the deficit^ its affect on an agency; but
we don't debate the results we expect for that investment.
"Never tell people how to do things. Tell them what you want
them to achieve, and they will surprise you with their ingenuity."
That was General Patton's advice in 1944.
H.R. 826 sets a new direction for the Federal Government. Set-
ting goals, measuring them, and allowing our managers some wig-
gle room to achieve these goals establishes a new focus for how our
government operates.
This legislation enjoys bipartisan support.
In addition, I have askea Mr. Panetta to address the President's
National Performance Review Program, which is being led by Vice
President Gore in close cooperation with 0MB. The review will rec-
ommend various legislative solutions to management problems, and
there are various options for implementing these proposals.
I believe that we are all anxious to assist the President in mak-
ing our government more efficient. This committee, in particular,
is taking an active role with the National Performance Review. We
are in a unique position as the government's oversight committee
to assist the Vice President in his difficult task of reorganizing,
streamlining, and making our government more efficient.
I know the subject of our disjointed government all too well. Last
year, my staff studied management practices in the Federal Grov-
emment and produced a report that was shocking. From the De-
partment of Agriculture to Veterans* Affairs, waste of taxpayer's
dollars pervades virtually every program, every system, every pro-
cedure, paralyzing our government workers and grinding the bu-
reaucracy, oftentimes, to a screeching halt.
When the President and the Vice President come before Congress
with their recommendations for making our government more effi-
cient, more responsible, and better able to serve the people, we
must be prepared to hit the gp'ound running.
(The prepared statement of Mr. Conyers, and the bill H.R. 826
follow:!
STATEMENT BY JOHN CONYERS, JR.
CHAIRMAN, COMMITTEE ON GOVERNMENT OPERATIONS
ON H.R. 826, PERFORMANCE MEASURES LEGISLATION AND
THE LEGISLATIVE OPTIONS FOR IMPLEMENTING THE PRESIDENT'S
NATIONAL PERFORMANCE REVIEW PROGRAM
This morning we are to discuss H.R. 826, the "Government
Performance and Results Act of 1993." I have also asked that Mr.
Panetta, the Director of the Office of Management and Budget, be
prepared to talk about various options for implementing the
recommendations from the President's National Performance Review,
which are scheduled to be released in September.
We have a unique opportunity to make fundamental changes in
the way the Federal govenunent does business. No longer can we
tolerate a structure, culture, and lack of leadership that allows
waste and mismanagonent to dcHtiinate the Federal agencies.
This opportunity is unique for several reasons. First, and
most importemtly, we have a President who is demonstrating strong
leadership and who is committed to making the waste and
mismanagement issue one of his top priorities.
Second, if we are asking the taxpayers to meJce great
sacrifices as part of the economic plem, we must demonstrate to
them that this is not business as usual . We must have their
confidence that we can change government to make it more
efficient and more effective.
This Committee will play a central role in these efforts.
This Committee's central charter is not only to identify waste,
fraud, and abuse throughout the government, but also to propose
solutions to those problems and to craft legislation that
addresses mismanagement.
H.R. 826 is an important step towards reinventing
government, and it is closely tied to the Chief Financial
Officers Act that was passed by this Committee during the 101st
Congress. The legislation would require Federal agencies to
develop strategic plans, set performance goals, and report
annually to Congress and the Office of Management and Budget the
results a program achieves. After a series of pilot projects,
H.R. 826 will eventually be implemented govemmentwide where all
programs will be evaluated, and budgeted, based on their
performance. This legislation will also give program managers
the flexibility to achieve their set goals in exchange for better
accountability, a significant part of the act.
The dilemma faced by the Federal government is that there is
no clear bottom line: no profit margins, no market share, no
means to gauge how we are doing. When Congress creates new
programs, seldom do we define specific goals for that program.
We debate until we are blue in the face how we are going to fund
a program, its affect on the budget, its affect on the deficit,
its affect on an agency, but we don't debate the results we
expect for that investment .
"Never tell people how to do things, tell them what you want
them to achieve and they will surprise you with their ingenuity."
That was General Patton's advice in 1944 and it holds true today.
H.R. 826 sets a new direction for the Federal government.
Setting goals, measuring them, and allowing our managers some
wiggle room to achieve those goals, establishes a new focus for
how our government operates. This legislation enjoys bipartisan
support .
In addition, I have asked Mr. Panetta to address the
President's National Performance Review program, which is being
led by Vice President Al Gore in close cooperation with 0MB. The
Review will recommend various legislative solutions to management
problems, and there are various options for implementing these
proposals.
I believe we are all anxious to assist the President in
making our government more efficient. This Committee, in
particular, is taking a very active role with the National
Performance Review. We are in a unique position, as the
government's oversight Committee, to assist the Vice President in
his difficult task of reorganizing, streamlining, and making our
government more efficient.
I know the subject of our disjointed government all too
well. Last year, my staff studied management practices in the
Federal government and produced a report that shocked us all.
From the Department of Agriculture to the Department of Veterans
Affairs, waste of taxpayers dollars pervades virtually every
program, every system, and every procedure, paralyzing our
government workers and grinding the bureaucracy to a screeching
halt.
Vfhen the President and Vice President come before Congress
with their recommendations for making our government more
efficient, more responsive, and better able to serve the people,
we must be prepared to hit the ground running.
103d congress
1st Session
H. R. 826
To provide for the establishment, testing, and evaluation of strategic planning
and j)erformance measurement in the Federal Grovemment, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
February 4, 1993
Mr. CONYERS (for himself, Mr. Clinger, and Mr. McDade) introduced the
following bill; which was referred jointly to the Committees on Grovem-
ment Operations and Rules
A BILL
To provide for the establishment, testing, and evaluation
of strategic planning and performance measurement in
the Federal Government, and for other purposes.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the "Government Perform-
5 anee and Results Act of 1993".
6 SEC. 2. FINDINGS AND PURPOSES.
7 (a) Findings. — The Congress finds that —
8 (1) waste and inefficiency in Federal programs
9 undermine the confidence of the American people in
2
1 the Government and reduces the Federal Govem-
2 ment's abiUty to address adequately vital public
3 needs;
4 (2) Federal managers are seriously disadvan-
5 taged in their efforts to improve program efficiency
6 and effectiveness, because of insufficient articulation
7 of program goals and inadequate information on
8 program performance; and
9 (3) congressional policymaking, spending deci-
10 sions and program oversight are seriousty handi-
1 1 capped by insufficient attention to program perform-
12 ance and results.
13 (b) Purposes. — The purposes of this Act are to —
14 (1) improve the confidence of the American peo-
15 pie in the capability of the Federal Government, by
16 systematically holding Federal agencies accountable
17 for achieving program results;
18 (2) initiate program performance reform with a
19 series of pilot projects in setting program goals,
20 measuring program performance against those goals,
21 and reporting publicly on their progress;
22 (3) improve Federal program effectiveness and
23 public accountability by promoting a new focus on
24 results, service quality, and customer satisfaction;
•HR 826 IH
8
3
1 (4) help Federal managers improve service de-
2 livery, by requiring that they plan for meeting pro-
3 gram objectives and by providing them with informa-
4 tion about program results and service quality;
5 (5) improve congressional decisionmaking by
6 providing more objective information on achieving
7 statutory objectives, and on the relative effectiveness
8 and efficiency of Federal programs and spending;
9 and
10 (6) improve internal management of the F'ed-
11 eral Government, and the intent of this Act is not
12 to create any right or benefit, substantive or proce-
13 dural, enforceable at law by any party against tlie
14 United States, or any agency or office of the United
15 States.
16 SEC. 3. STRATEGIC PLANNING.
17 Chapter 3 of title 5, United States Code, is amended
18 by adding after section 305 the following new section:
19 *"§ 306. Strategic plans
20 - "(a) No later than September 30, 1997, the head of
21 each agency shall submit to the Director of the Office of
22 Management and Budget a strategic plan for program ac-
23 tivities. Such plan shall contain —
•HR 826 IH
4
1 "(1) a comprehensive mission statement cover-
2 ing the major functions and operations of the
3 agency;
4 "(2) general goals and objectives, including out-
5 come-related goals and objectives, for the mgjor
6 functions and operations of the agency;
7 "(3) a description of how the goals and objee-
8 tives are to be achieved, including a description of
9 the operational processes, skills and technology, and
10 the human, capital, information, and other resources
1 1 required to meet those goals and objectives;
12 "(4) a description of how the performance goals
13 included in the plan required by section 1115(a) of
14 title 31 shall be related to the general goals and ob-
15 jectives in the strategic plan;
16 "(5) an identification of those key factors exter-
17 nal to the agency and beyond its control that could
18 significant^ affect the achievement of the general
19 goals and objectives; and
20 "(6) a description of the program evaluations
21 used in establishing or revising general goals and ob-
22 jectives, with a schedule for future program evalua-
23 tions.
24 "(b) The strategic plan shall cover a period of not
25 less than five years forward from the fiscal year in which
''HR 828 IH
10
5
1 it is submitted, and shall be updated and revised at least
2 every three years.
3 "(c) The performance plan required by section 1115
4 of title 31 shall be consistent with the agency's strategic
5 plan. A performance plan may not be submitted for a fis-
6 cal year not covered by a current strategic plan under this
7 section.
8 "(d) When developing a strategic plan, the agency
9 shall consult with the Congress, and shall solicit and con-
10 sider the views and suggestions of those entities poten-
1 1 tially affected by or interested in such a plan.
12 "(e) For purposes of this section the term 'agency'
13 means an Executive agency defined under section 105, but
14 does not include the Central Intelligence Agency, the Gen-
15 eral Accounting Office, the Panama Canal Commission,
16 the United States Postal Service, and the Postal Rate
17 Commission.".
1 8 SEC. 4. ANNUAL PERFORMANCE PLANS AND REPORTS.
19 (a) Budget Contents and Submission to Con-
20 GRESS. — Section 1105(a) of title 31, United States Code,
21 is amended by adding at the end thereof the following new
22 paragraph:
23 "(29) beginning Avith fiscal year 1999, a Fed-
24 eral Government performance plan for the overall
25 budget as provided for imder section 1115.".
•HR 826 IH
11
6
1 (b) Perforaiance Plans and Reports. — Chapter
2 11 of title 31, United States Code, is amended by adding
3 after section 1114 the following new sections:
4 **§ 1115. Performance plans
5 "(a) In carrying out the provisions of section
6 1105(a)(29), the Office of Management and Budget shall
7 require each agency to prepare an annual performance
8 plan covering each program activity set forth in the budget
9 of such agency. Such plan shall —
10 "(1) establish performemce goals to define the
11 level of performance to be achieved by a program
12 activity;
13 "(2) express such goals in an objective, quan-
14 tifiable, and measurable form unless permitted an
15 alternative form under subsection (b);
16 "(3) describe the operational processes, skills
17 and technology, and the human, capital, information,
18 and other resources required to meet the perform-
19 ance goals;
20 "(4) estabUsh performance indicators to be used
21 in measuring or assessing the relevant outputs, serv-
22 ice levels, and outcomes of each program activity;
23 "(5) provide a basis for comparing actual pro-
24 gram results with the established performance goals;
25 and
•HR 826 IH
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7
1 "(6) describe the means to be used to verify
2 and validate measured values.
3 "(b) If an agency, in consultation with the Office of
4 Management and Budget, determines that it is not fea-
5 sible to express the performance goals for a particular pro-
6 gram activity in an objective and quantifiable form, the
7 Office of Management and Budget may authorize an alter-
8 native form. Such alternative form shall —
9 "(1) include separate descriptive statements
10 of—
11 "(A) a minimally effective program, and
12 "(B) a successful program,
13 with sufficient precision and in such terms that
14 would allow for an accurate, independent deter-
15 mination of whether the program activity's per-
16 formance meets the criteria of either descrip-
17 tion; or
18 "(2) state why it is infeasible or impractical to
19 express a performance goal in any form for the pro-
20 gram activity.
21 "(c) In preparing a comprehensive and informative
22 plan under this section, an agency may aggregate,
23 disaggregate, or consolidate program activities, provided
24 that any a^regation or consolidation does not omit or
•eS. «2S IH
13
8
1 minimize the significance of any program activity con-
2 stituting a mjgor fiinction or operation for the agency.
3 "(d) An agency may prepare a classified or non-pub-
4 lie annex to its plan covering program activities or parts
5 of program activities relating to —
6 "(1) national security;
7 "(2) the conduct of foreign affairs; or
8 "(3) the avoidance of interference with criminal
9 prosecution or revenue collection.
10 "(e) For purposes of this section and sections 1116
1 1 through 1119, and section 9704 the term —
12 "(1) 'agency* means an Executive agency de-
13 fined under section 105 of title 5, United States
14 Code, but does not include the Central Intelligence
15 Agency, the General Accounting Office, the Panama
16 Canal Commission, the United States Postal Service,
17 and the Postal Rate Commission;
18 "(2) 'outcome measure* refers to an assessment
19 of the results of a program activity compared to its