DOL Annual Report, Fiscal Year 2004
Performance and Accountability Report
Departmental Management
Maintaining a Strategic Management Focus
The President's Management Agenda (PMA), announced in 2001, consists of reforms aimed at achieving a Government that is citizen-centered, results-oriented, and market-based. The five government-wide initiatives included in the agenda are Strategic Management of Human Capital, Competitive Sourcing, Improved Financial Performance, Expanded Electronic Government, and Budget and Performance Integration. DOL's four Departmental Management outcome goals correspond to the first four initiatives (see table below). Two DOL agencies provide leadership for accomplishing these goals: the Office of the Chief Financial Officer (OCFO) and the Office of the Assistant Secretary for Administration and Management (OASAM). However, all DOL agencies contribute to overall management performance.
In FY 2004, the Department achieved eight, substantially achieved three, and did not achieve one of its management performance goals. Human Resources and Procurement functions stood out by achieving or substantially achieving all goals for the year; highlights were an injury and illness case rate less than half of that experienced in FY 2000-2001, and use of performance-based service contracting at a rate more than 50 percent above target. OCFO launched its managerial cost accounting project on a very ambitious schedule and made commendable progress toward its goal while maintaining high standards in its traditional roles. In the information technology arena, DOL missed its target for paperwork reduction but implemented a new e-procurement system, enhanced security, and made significant improvements in its management of capital investments.
Outcome
Goal HR - Establish DOL as a Model Workplace |
|
OASAM quality workforce (HR1) substantially achieved |
DOL completed competency models for all 27 mission-critical occupations and a skills inventory tool is in place for assessing skill gaps. |
OASAM lost workdays (HR2) achieved |
As of third quarter FY 2004, the Department was achieving this goal with a rate of 37.3 days lost per 100 employees (target 40.5). |
OASAM health case rate (HR3) achieved |
As of third quarter FY 2004, DOL was achieving this goal with a rate of 1.72 total injury and illness cases per 100 employees (target 2.43). |
OASAM health lost time (HR4) achieved |
As of third quarter FY 2004, DOL was achieving the goal of 1.19 lost time cases per 100 employees with rate of 1.11. |
OASAM workers' compensation (HR5) achieved |
As of third quarter FY 2004, the average is 88.1% of claims filed on time, against at target of 88%. |
Outcome
Goal PR Improve Procurement Management |
|
OASAM FAIR competitions (PR1) substantially achieved |
DOL held competitions for almost 14% of the FTE listed in DOL's 2000 FAIR Act inventory. |
OASAM performance-based contracting (PR2) achieved |
DOL used PBSC techniques for 67% of total eligible service contracting dollars. |
Outcome
Goal FM Enhance Financial Performance through Improved Accountability |
|
OCFO accurate and timely (FM1) substantially achieved |
DOL received its eighth consecutive unqualified audit opinion on its consolidated financial statements and substantially complied with applicable federal financial management standards. |
OCFO integrated management (FM2) achieved |
OCFO developed a DOL-wide managerial cost accounting capability and completed cost models for 15 DOL agencies. |
Outcome
Goal IT Provide Improved, Secure IT Service to Citizens, Businesses,
Government and DOL Employees to Improve Mission Performance |
|
OASAM e-government (IT1) not achieved |
The e-procurement system was implemented in both the National and Regional Offices for 14 DOL component agencies, but DOL did not reach its paperwork elimination target of automating 100 percent of designated manual processes. |
OASAM cyber security (IT2) - achieved |
DOL reached targets regarding Cyber Security System tests and evaluations and internal computer security incident response reporting. |
OASAM capital planning (IT3) - achieved |
All targets were reached. Rollout and migration of DOL's new tool for electronic capital planning and investment management was achieved in the 2 nd quarter of FY 2004. DOL also reached its target of IT initiatives operating within 10% of cost, schedule, and technical performance parameters. |
The Administration's Executive Branch Management scorecard, a quarterly assessment of Federal agencies' implementation of the President's Management Agenda (PMA), is another measure of the Department's progress in these areas. In the June 2004 update, DOL's status scores were elevated to "green" in Budget and Performance Integration and "yellow" in Competitive Sourcing. Human Capital had achieved "green" status earlier in the year. Financial Performance and E-Government scores remained at "yellow." This result is consistent with our record of goal achievement in qualitatively indicating progress in management practices at DOL for FY 2004. For more information about accomplishments with respect to the PMA, see the section devoted to that topic in the Executive Summary of this report.
Results for the outcome goals listed above are discussed in more detail on the following pages.
Outcome Goal HR Establish DOL as a Model Workplace
DOL is committed to recruiting, developing, and retaining a high-quality, diverse workforce that effectively meets changing mission requirements and program priorities. Through workforce analysis and planning, we identify human capital requirements to meet our organizational goals and needs, so that the right people are in the right place at the right time. Workforce planning reduces distance between DOL decision-makers and our customers, enhances front-line service delivery, addresses current and projected staff shortages, assures employees have the skills critical to their current positions and are prepared to progress to higher levels of responsibility, and anticipates changes to staff and competency requirements. Employees in occupations no longer necessary as a result of technology or changing business practices are afforded the opportunity to be retrained, and succession planning and other planned management approaches to an aging workforce will be pursued.
DOL remains committed to assuring safe and healthful workplaces for our employees and Job Corps students, and to reduce human costs associated with workplace injuries and illnesses. We have expanded use of technology to deliver web-based, interactive occupational safety and health training targeted to hazards and conditions contributing to injuries and illnesses. Practices at work sites with lower than average injury rates are being evaluated to determine whether they can be effective elsewhere.
DOL achieved all five performance goals, and earned a "green" status score for Strategic Management of Human Capital in the latest President's Management Agenda Scorecard.
Goal (Agency) Period |
Performance Summary |
HR1 (OASAM) FY
2004 |
Competency models were completed for all 27 mission-critical occupations and a skills inventory tool is in place for assessing skill gaps. Diversity continued to improve significantly, overall. |
HR2 (OASAM) FY
2004 |
As of third quarter FY 2004, the Department was achieving this goal with a rate of 37.3 days lost per 100 employees (target 40.5). |
HR3 (OASAM) FY
2004 |
As of third quarter FY 2004, the Department is achieving this goal with a rate of 1.72 total injury and illness cases per 100 employees (target 2.43). |
HR4 (OASAM) FY
2004 |
As of third quarter FY 2004, the Department is achieving the goal of 1.19 lost time cases per 100 employees with rate of 1.11. |
HR5 (OASAM) FY
2004 |
The target is 88% of claims filed on time. As of third quarter FY 2004, the average is 88.1%. |
Results Summary
Of the five goals listed, DOL substantially achieved Goal
HR1 and achieved Goals HR2-5. A major goal of the DOL's workforce planning
efforts is to meet the objectives contained in the Strategic Human Capital
Management section of the President's Management Agenda. To further that
effort, we developed a human capital scorecard, modeled on the OMB scorecard,
to assess the progress being made by DOL Agencies in human capital management,
including tracking the status of restructuring initiatives. We also developed
core competencies for its mission critical occupations and analysis of workforce
skills in mission critical occupations. We focus on succession management
to address the impending exodus of senior level managers and employees minimizing
the impact via succession planning programs such as the Senior Executive
Service Development, Management Development, Mentoring, and MBA Outreach
programs.
We fully recognize the importance of recruiting and maintaining a diverse workforce representative of the general civilian labor force. DOL continues to build upon its aggressive outreach and recruitment efforts to attract a highly skilled and diverse workforce including persons with disabilities and uses multiple Departmental/Office of Personnel Management hiring authorities and flexibilities, learning opportunities, and workplace flexibilities to maintain its current workforce.
DOL focuses intently on successful implementation of the Safety, Health and Return to Employment (SHARE) Presidential Initiative led by the Occupational Safety and Health Administration and the Office of Workers' Compensation Programs. Reducing the number of days away from work due to work related injuries or illnesses results in reduced workers' compensation costs and increased productivity and responsiveness on the part of DOL employees. DOL organized an interagency workplace safety group, which developed and implemented several recommendations. Reducing the total number of injury/illness cases results in a decrease in workers' compensation costs and an increase in productivity.
| Office of Safety and Health's Ergonomics Assistance Room held an Open House during DOL's Safety Day. Here, Kim Ross, (left) of OASAM's Office of Safety and Health, demonstrates a variety of worksite devices that are used to improve and enhance worksite ergonomics, reduce worker injury, and provide accommodation options for return to employment for Pat C. Clark, OASAM. |
 |
| Photo credit: Max Krupka and Neshan Naltchayan |
DOL's Office of the Assistant Secretary for Administration and Management (OASAM) strives to reduce work related injuries and illnesses by conducting accident analysis and focusing on hazard recognition and control, emergency preparedness, and ergonomics. OASAM developed a standardized hazard reporting protocol and uses its web page (LaborNet) to effect electronic hazard reporting. The agency is also developing an electronic, web-based comprehensive safety inspection checklist with corresponding training to ensure all persons who conduct annual safety inspections have the knowledge and tools to accurately identify workplace hazards. Increasing the timeliness of reporting workers' compensation claims ensures injured employees' medical and compensation costs are paid promptly. Emphasis will continue to be placed on ensuring employees' timely use of our electronic workers' compensation filing system to report injuries and illnesses.
Reducing lost time injury/illness cases results in an increase in productivity, enhanced responsiveness, and quality of service to the taxpayer because resources are not diverted to injured employees. DOL addresses workplace safety by equipping supervisors and employees with the knowledge they need to identify and eliminate unsafe working conditions and to promote safety management. In addition, DOL is developing an electronic, web-based comprehensive safety inspection checklist with corresponding training to ensure all persons who conduct annual safety inspections have the knowledge and tools to accurately identify workplace hazards.
Increasing the timeliness of reporting workers' compensation claims ensures injured employees' medical and compensation costs are paid promptly. Emphasis will continue to be placed on ensuring employees use the Department's electronic workers' compensation filing system to report injuries and illnesses. Management will continue to emphasize timely workers' compensation claims reporting in the coming years.
Future Challenges
DOL is continuing to use contract services to assist with
the return to employment effort and implementing electronic hazard identification
training to ensure accurate safety inspections. Current enhancements to DOL's
electronic Safety and Health Information System will ensure accurate injury/illness
data. Using such existing data will assist management in targeting reduction
of hazards that contribute to work related injuries and illnesses.
Hire a High-Quality and Diverse DOL Workforce
Performance Goal HR1 (OASAM) FY 2004
The right people are in the right place at the right time to carry out the mission of the Department.
A. The DOL workforce is a prepared and competent workforce.
B. The DOL workforce is a diverse workforce.
Indicators
DOL will graduate, place or certify 75% of employees from its
management and leadership development programs;
Competency assessment tool will be piloted and competency gap analysis completed for 10% of employees in mission-critical or supervisory occupations;
Improvement will be realized in 25% of diversity indictors for professional and administrative occupations exhibiting under-representation in FY 2003;
Continued improvement is realized in the extent to which diversity in the DOL workforce reflects the civilian labor force; and
Diversity will be improved among management officials and supervisors.
Program Perspective
The Department is committed to recruiting, developing,
and retaining a high-quality, diverse workforce that effectively meets changing
mission requirements and program priorities. Through workforce analysis and
planning, DOL identifies the human capital requirements to meet our organizational
goals and needs, so that DOL has the right people with the right skills and
competencies.
Workforce planning is directed towards addressing current and projected staff shortages, assuring that employees have the skills critical to their current positions and are prepared to progress to higher levels of responsibility, and anticipating changes to staff and competency requirements. DOL focuses on succession management to address the impending exodus of senior level managers and employees minimizing the impact via succession planning programs such as the Senior Executive Service Development, Management Development, Mentoring, and MBA Outreach programs.
The Department fully recognizes the importance of recruiting and maintaining a diverse workforce representative of the general civilian labor force. DOL continues to build upon its aggressive outreach and recruitment efforts to attract a highly skilled and diverse workforce including persons with disabilities and uses multiple hiring authorities and flexibilities, learning opportunities, and workplace flexibilities to maintain its current workforce.
Results, Analysis and Future Plans
The DOL workforce is a prepared and competent workforce.
This target was exceeded for both indicators. Competency models have been
completed for all 27 mission-critical occupations and a skills inventory
tool is in place for assessing skill gaps. The Department is conducting a
comprehensive skills inventory of employees in mission-critical occupations
with 84.8 percent of employees completed and the remainder projected for
completion by the end of FY 2005. DOL is building a strong cadre of trained
Senior Executive and Management level employees to meet continuing leadership
needs. Current leadership training programs produced 49 Senior Executive
and 37 mid-level graduates prepared to fill leadership roles. Three MBA Fellows
Program classes have hired 45 Fellows with business skills essential to DOL's
success and 118 employees have participated in the Mentoring Program.
The DOL workforce is a diverse workforce.
The target was exceeded for two of three indicators. Pockets of under-representation
were identified in a number of the Department's mission-critical occupations.
At the end of FY 2003, DOL determined that pockets of under-representation
existed in 57 categories, (e.g., Hispanic auditors). DOL improved in 18 categories,
or 32 percent, exceeding its target of 25 percent. Increases occurred in
29 percent of the total workforce diversity groups (target 40 percent) and
in 43 percent of the managers and supervisors groups (target 40 percent).
The measure for total workforce diversity was impacted by employee separations
from one of the groups late in the fiscal year.
TOTAL |
Women |
White |
Black |
Hispanic |
Asian / P.I. |
Native American/ Alaskan Native |
Persons with Disabilities |
Persons with Targeted Disabilities |
|
CLF |
100% |
46.6% |
72.4% |
11.2% |
11.8% |
3.8% |
0.9% |
6.0% |
1.1% |
FY |
16053 |
7971 |
10367 |
3887 |
1102 |
532 |
115 |
1019 |
190 |
100% |
49.7% |
64.6% |
24.2% |
6.9% |
3.3% |
0.7% |
6.5% |
1.2% |
|
FY |
16193 |
8119 |
10490 |
3899 |
1115 |
575 |
113 |
1076 |
196 |
100% |
49.9% |
64.8% |
24.1% |
6.9% |
3.6% |
0.7% |
6.6% |
1.2% |
|
FY |
16,135 |
8,135 |
10,448 |
3,849 |
1,113 |
616 |
109 |
1,072 |
189 |
100% |
50.4% |
64.8% |
23.9% |
6.9% |
3.8% |
0.7% |
6.6% |
1.2% |
|
FY |
16,155 |
8127 |
10,458 |
3,796 |
1,137 |
645 |
119 |
1,300 |
218 |
100% |
50.3% |
64.7% |
23.5% |
7.0% |
4.0% |
0.7% |
8.0% |
1.3% |
|
FY |
15,708 |
7,899 |
10,150 |
3,691 |
1,098 |
655 |
114 |
1,988 |
206 |
100% |
50.3% |
64.6% |
23.5% |
7.0% |
4.2% |
0.7% |
12.7% |
1.3% |
DOL will continue targeted recruitment at colleges, universities, and associations in FY 2005 as well as national level job fairs and conferences which have high representation of targeted groups, students with the skills we need, such as MBAs, and organizations and consortiums where the Department has had success in the past. To address retention, DOL will continue to offer succession-planning programs at the SES and mid-management levels and the formal mentoring program, which provide opportunities to close any skill gaps identified during the skills inventory process and offer workplace flexibilities.
The DOL Online Opportunities Recruitment System (DOORS), to be fully implemented in FY 2005, is increasing the efficiency of the Department's hiring system while at the same time simplifying the application process for applicants. DOORS, fully integrated with USAJOBS, is increasing the exposure of DOL's job opportunities to a broader and more diverse audience, resulting in a higher quality of job applicants, reducing the time to fill a position, enabling more consistent and timely diversity reporting, and producing a significant reduction in the costs associated with the hiring process.
Management Issues
DOL has obtained Voluntary Early Out Authority (VERA)
with 194 employees using the early-out authority. The Department has increased
the use of hiring and retention flexibilities to include: 64 Career Intern
and 69 Student Career Experience Program (SCEP) appointments, 21 Outstanding
Scholars, 51 Recruitment Bonuses, 35 Relocation Bonuses and Retention Allowances,
and 13 Student Loan Repayments. The Department must determine the most effective
means of reducing skill gaps identified as employees complete the Department's
mission-critical occupations skills inventory assessment tool. Retraining
and career counseling must be provided to develop the new skills necessary
for employees impacted by competitive sourcing decisions.
Reduce the Rate of Lost Production Days
Performance Goal HR2 (OASAM) FY 2004
Reduce the rate of lost production days due to work related injuries and illnesses by two percent.
Indicators
Decrease rate of lost production days by two percent.
Program Perspective
This goal is one of four that DOL uses to measure its
successful implementation of the Safety, Health, and Return to Employment
(SHARE) Presidential Initiative led by the Occupational Safety and Health
Administration and the Office of Workers' Compensation Programs. Reducing
the number of days away from work due to work related injuries or illnesses
results in reduced workers' compensation costs and increased productivity
of DOL employees.
Results, Analysis and Future Plans
DOL's FY 2004 Lost Production Days Rate
goal is 40.5 days lost per 100 employees. As of third quarter FY 2004, the
Department is achieving this goal with a rate of 37.3, and we are on track
to achieve this goal for the third straight year. DOL organized an interagency
workplace safety group, which developed and implemented several recommendations:
contract with a vendor to provide return to employment assistance for workers'
compensation coordinators in developing return to employment strategies;
increase the use of injured workers to fill limited or light duty vacant
positions; implement Agency safety and workers' compensation program reviews;
and enhance the Safety and Health Information System (SHIMS) to include expanded
reporting capabilities. In addition, quarterly reports are provided to DOL
Agencies on their progress towards achieving their SHARE goals. In FY 2005,
DOL is implementing Voluntary Protection Programs as a pilot project at select
worksites.
Management Issues
DOL has limited resources to dedicate to hiring and training
workers' compensation coordinators. Therefore, we are continuing to use contract
services to assist with the return to employment effort. DOL is actively
encouraging Agencies to use workplace accommodation flexibilities to return
employees to work.
Reduce the Illness and Injury Rate of DOL Employees
Performance Goal HR3 (OASAM) FY 2004
Reduce the total case rate for injuries and illnesses for DOL employees by three percent. (Total number of cases reported to the Office of Workers' Compensation Programs.)
Indicators
Decrease total case rate of illnesses and injuries by three
percent.
Program Perspective
This goal is one of four that DOL uses to measure
its successful implementation of the Safety, Health, and Return to Employment
(SHARE) Presidential Initiative led by the Occupational Safety and Health
Administration and the Office of Workers' Compensation Programs. Reducing
the total number of injury/illness cases results in a decrease in workers'
compensation costs and an increase in productivity.
Results, Analysis and Future Plans
DOL's FY 2004 Total Case Rate goal
is 2.43 total cases per 100 employees. As of third quarter FY 2004, we
are achieving this goal with a rate of 1.72. We are on track to achieve
this goal for the third straight year. DOL's Office of the Assistant Secretary
for Administration and Management (OASAM) strives to reduce work related
injuries and illnesses by conducting accident analysis and focusing on
hazard recognition and control, emergency preparedness, and ergonomics.
The Department has developed a standardized hazard reporting protocol
and uses its web page (LaborNet) to effect electronic hazard reporting.
Management Issues
Current enhancements to DOL's electronic Safety and
Health Information System will ensure accurate injury/illness data. Using
such existing data will assist management in targeting limited resources
towards reducing and/or eliminating hazards that contribute to work related
injuries and illnesses.
Reduce the Lost Time Illness and Injury Case Rate of DOL Employees
Performance Goal HR4 (OASAM) FY 2004
Reduce the lost time case rate for injuries and illnesses for DOL employees by three percent. (Number of injury/illness cases reported to the Office of Workers' Compensation Programs that resulted in days away from work.)
Indicators
Decrease lost time case rate of illnesses and injuries by three
percent.
Program Perspective
This goal is one of four that DOL uses to measure
its successful implementation of the Safety, Health, and Return to Employment
(SHARE) Presidential Initiative led by the Occupational Safety and Health
Administration and the Office of Workers' Compensation Programs and is
a new goal for FY 2004. Reducing lost time injury/illness cases results
in an increase in productivity, enhanced responsiveness, and quality of
service to the taxpayer because resources are not diverted to injured
employees.
Results, Analysis and Future Plans
DOL's FY 2004 Lost Time Case Rate goal
is 1.19 lost time cases per 100 employees. As of third quarter FY 2004,
we are achieving this goal with rate of 1.11. We are on track to achieve
this goal in FY 2004.29 DOL
addresses workplace safety by equipping supervisors and employees with
the knowledge they need to identify and eliminate unsafe working conditions
and to actively promote effective safety management. In addition, DOL
is in process of developing an electronic, web-based comprehensive safety
inspection checklist with corresponding training to ensure all persons
who conduct annual safety inspections have the knowledge and tools to
accurately identify workplace hazards.
Management Issues
DOL has limited resources to hire and train occupational
safety and health specialists. Therefore, DOL is implementing electronic
hazard identification training to ensure accurate safety inspections.
In addition, DOL is conducting Job Corps Center annual safety reviews
by contract to ensure consistency and uniformity.
29Performance results for this goal are estimated. The estimating methodology has been reviewed by the Department of Labor's Office of Inspector General. The actual performance results for this goal will be published in the FY 2006 Budget.
Make Timely Filings of DOL Employee Injury and Illness Cases
Performance Goal HR5 (OASAM) FY 2004
Improve the timeliness of filing notices of injuries and illnesses with the Office of Workers' Compensation Programs.
Indicators
Increase in timeliness of reporting new injuries and illnesses
by five percent.
Program Perspective
This goal is one of four that DOL uses to measure
its successful implementation of the Safety, Health, and Return to Employment
Presidential (SHARE) Initiative led by the Occupational Safety and Health
Administration and the Office of Workers' Compensation Programs. Increasing
the timeliness of reporting workers' compensation claims ensures injured
employees' medical and compensation costs are paid promptly.
Results, Analysis and Future Plans
DOL's FY 2004 timeliness goal is to
have 88 percent of claims filed on time. As of third quarter FY 2004,
we are achieving an 88.1 percent average in reporting injuries and illnesses
to OWCP on time. We are on track to achieve this goal for the third straight
year.30 Emphasis
will continue to be placed on ensuring employees use the electronic workers'
compensation filing system to report injuries and illnesses. Implementation
of the Safety and Health Information Management System (SHIMS) in FY 2001
has ensured prompt accurate claims filing and greatly enhanced the Department's
timeliness over the past three years. Management will continue to emphasize
timely workers' compensation claims reporting in the coming years. This
will, in turn, ensure DOL continues to meet the ever increasing timeliness
goal.
Management Issues
The Employment and Training Administration's (ETA) Job Corps Program
accounts for the greatest number of injuries and illnesses reported to
the Office of Workers' Compensation Programs. Many of these Job Corps
Centers are located in remote areas and, therefore, have difficulty transmitting
data electronically. By restructuring the SHIMS electronic notification
process to include the Job Corps National Office and emphasis on training
in SHIMS use by ETA management, the timeliness of injury/illness claims
reporting has been greatly improved. DOL anticipates that the timeliness
of injury/illness reporting will continue to improve with these enhancements
in place.
30Performance results for this goal are estimated. The estimating methodology has been reviewed by the Department of Labor's Office of Inspector General. The actual performance results for this goal will be published in the FY 2006 Budget.
Outcome Goal PR Improve Procurement Management
For FY 2004, the Department's leadership determined that the most effective way to demonstrate it has improved procurement management is to more thoroughly introduce market forces into the Department's purchase of goods and services. Previously, the vast majority of the Department's administrative and management activities were provided by an entirely Federal workforce. Now, for those activities that the Federal Activities Inventory Reform (FAIR) Act inventory determines are available in the commercial marketplace, Federal and commercial providers compete to determine the most cost-effective means of service delivery. This approach is called competitive sourcing. Additionally, the previous methods for compensating the Department's contractors included the level of effort, the kinds of processes, and the skills of the contractors. Through Performance-Based Service Contracting (PBSC), contractors are instead compensated strictly according to the results they produce. PBSC aligns the Department's desire to receive high quality and completed services with contractors' incentives to increase revenue.
The Department's use of competitive sourcing and PBSC demonstrate that its purchase of services relies on the market forces of competition and incentives. Their use also demonstrates improved procurement management, as the Department can now purchase equivalent or better services for less money. The table below capsulizes performance goals and achievements supporting this outcome goal.
Goal (Agency) - Period |
Performance Summary |
PR1 (OASAM) FY 2004 |
The target was substantially reached. DOL's cumulative competitions for FTE listed in its 2000 FAIR Act inventory approached 14 percent. |
PR2 (OASAM) FY 2004 |
The target was reached. The Department used PBSC techniques for 67 percent of total eligible service contracting dollars. |
Results Summary
DOL substantially achieved its FAIR Act inventory goal
by nearly reaching its target to compete no less than 15 percent of the
FTE listed on the inventory. The Department held competitions for almost
14 percent of these FTE. DOL awarded 67 percent of total eligible service
contracting dollars (for contracts over $25,000) using PBSC techniques;
the target was 40 percent.
Future Challenges
DOL will continue to ensure that FAIR Act competitions
are conducted in accordance with applicable obligations between labor
and management and existing personnel regulations. While this presents
a challenge, it is surmountable if statutory provisions are properly followed
and if DOL management works closely with unions and human resources staff.
DOL has assigned human resource specialists to assist competitive sourcing
staff in this effort. Another challenge is the substantial upfront costs
of public-private competitions. Given the lasting savings the competitions
will yield, however, these initial expenditures are really investments
rather than costs; especially considering that the resulting savings can
be used for other program improvements.
The challenge associated with PBSC is developing expertise required to develop and oversee performance-based contracts. DOL will continue offer training in these areas so that PBSC will deliver on its promise to lower costs while improving services.
Complete FAIR Act Competitions
Performance Goal PR1 (OASAM) FY 2004
Complete competitions on not less than 15 percent of the FTE listed on DOL's 2000 Federal Activities Inventory Reform (FAIR) Act inventory.
Indicators
Percentage of commercial FTE on the Department's 2000 FAIR
Act inventory included in completed competitions or direct conversions;
Percentage of Direct Conversions;31 and
Percentage of Completed A-76 Competitions.
Program Perspective
Competitive sourcing is one of five government wide
initiatives of the President's Management Agenda. Under competitive sourcing,
executive agencies identify activities that are available in the commercial
marketplace but that are currently performed by Federal employees. Federal
and commercial providers then compete to determine the most cost-effective
means of service delivery.
The government spends billions of dollars every year for commercial services provided by government employees. Competition can easily result in savings of an average of 30 percent, whether government employees or private sector employees ultimately do the work. These savings can be re-invested in pursuit of the agency mission. This means there is enormous potential for more productive use of available funding, with no reduction in quality of service. It makes sense to periodically evaluate whether or not any organization is organized in the best possible way to accomplish its mission. This self-examination is the fundamental purpose public-private competition is intended to achieve. For FY 2004, DOL established a target of competing 15 percent of its Federal Activities Inventory Reform (FAIR) Act inventory.
Results, Analysis and Future Plans
The goal was substantially achieved.
By the end of FY 2004, DOL had competed or directly converted to contract
386 commercial FTE, constituting almost 14 percent of commercial FTE on
DOL's 2000 FAIR Act inventory. This included almost 100 FTE that were
competed in six streamlined and standard competitions in FY 2004. The
full implementation of these market-based initiatives will significantly
enhance the effectiveness and efficiency of the Department of Labor's
(DOL) service to all Americans.
DOL has also developed plans for competition of at least an additional 376 FTE in FY 2005, and for competition of virtually all of DOL's commercial-competitive functions by the end of FY 2007, consistent with guidance from the Office of Management and Budget. To ensure that DOL's scheduled competitions are completed within the given timeframes in the coming years, DOL will continue to:
- establish specific, detailed competition schedules;
- monitor competition progress to ensure timely completion;
- designate individuals within DOL agencies who are responsible for competition progress; and
- make technical assistance available to managers and teams involved in competitions and other competitive sourcing-related activities.
31Direct Conversion of work to the private sector is no longer allowed under OMB Circular A-76, Performance of Commercial Activities.
Management Issues
The performance data for this goal are extremely reliable. The indicator
is the percentage of public-private competitions completed, and the completion
date of a competition is reflected in an announcement on the website FedBizOpps.gov,
which indicates whether the award went to the Federal government or to
a commercial provider.
Because Federal agencies will always have a need to explore ways to better accomplish their missions and stretch their budgets, competitive sourcing will continue to serve as a valuable tool for DOL management. However, DOL must continue to recognize and address challenges and risks to full implementation of its competitive sourcing plans. Ensuring that competitions are conducted in accordance with applicable obligations between labor and management and existing personnel regulations could present a challenge. However, this challenge is controllable if statutory provisions are properly followed and if DOL management utilizes effective practices, such as working closely with unions and human resources staff. DOL has assigned human resource specialists to assist competitive sourcing staff in this effort.
Additionally, due to the substantial upfront costs of public-private competitions, particularly for the expertise of outside contractors, DOL must continue to marshal necessary resources to support competitions. Over time, agencies will begin to realize the savings resulting from competitions, which can be used not only to support additional competitions but also can be used for other program improvements.
Ensure Performance Results Are Achieved Through Contracts
Performance Goal PR2 (OASAM) FY 2004
Award contracts over $25,000 using Performance-Based Service Contracting (PBSC) techniques for not less than 40 percent of total eligible service contracting dollars.
Indicators
Dollar Value of Performance-Based Contracts over $25,000 awarded.
Program Perspective
In March 2001, the Office of Management and Budget
(OMB) established a performance-based service-contracting goal for Federal
agencies. This goal is based on the goals established under the Government-Wide
Acquisition Performance Measurement Program, developed by the Procurement
Executives Council. Performance-based service contracting methods result
in procurement efficiencies by ensuring contractors are paid for the actual
level of service that the government receives. Performance-based contracts
describe requirements in terms of results rather than methods of performance
of work; emphasizing objective, measurable performance requirements and
quality standards in developing statements of work, selecting contractors,
determining contract type and incentives, and performing contract administration.
Performance-based service contracting is a tool that offers improved contractor
performance and mission attainment, significant cost savings, and implementation
of the principles of streamlining and innovation of the President's Management
Agenda as well as the Government Performance and Results Act.
Since 2001, DOL has had a performance goal to expand the application of performance-based service contracting techniques for DOL contracts. The emphasis is to pay for the results of a contract rather than the effort put forth by the contractor. Very recently, OMB directed all Federal agenciesfor FY 2005to award contracts over $25,000 using performance-based service contracting techniques for not less than 40 percent of total eligible service contracting dollars. DOL has already exceeded this new government-wide goal. The $25,000 threshold is a practical criterion, because Federal agencies report on contracts above that amount through the General Services Administration's Federal Procurement Data System, which will be used by OMB in determining compliance with its FY 2005 directive.
Results, Analysis and Future Plans
The goal was achieved. As of the end
of the 3rd quarter of FY 2004, DOL had used performance-based service
contracting techniques for 67 percent of total eligible service contracting
dollars. The total obligations of performance-based contracts totaled
more than $294 million. DOL will continue to emphasize converting and awarding
eligible service contracts over $25,000 using PBSC techniques. DOL will
also monitor the dollar value of PBSC contracts to ensure attainment
of the PBSC goal.
DOL has encouraged the use of performance-based contracts DOL-wide by providing high-level briefings for senior staff, by scheduling relevant training for procurement and program staff, and by establishing an annual performance goal DOL-wide. DOL will continue to include the use of performance-based service contracting techniques as a performance goal, increasing every year the percentage of contract dollars to be awarded using those techniques. The ultimate objective is for DOL to put in place performance-based service contracts, as appropriate, for all eligible DOL contracting dollars.
Management Issues
The data source for this goal is the Federal Procurement
Data System. The performance data are reliable, as the information is
collected manually from the contract specialist or/and the contracting
officer at the time the procurement action is completed. A procurement
analyst in the Department's procurement policy office validates the data
before it is transmitted to the Federal Procurement Data Center.
The largest acquisition program at the Department of Labor is the Employment and Training Administration's Job Corps Program. Approximately 70 percent of DOL's acquisition dollars support Job Corps contracts. These acquisitions are for the operation and maintenance of more than 110 Job Corps Centers around the Country, and their related outreach and employment assistance services. Job Corps Center contracts were converted to PBSC by modifying the fee structure to incorporate incentives and penalties for the contractor based on achievement of measurable goals including, but not limited to, the number of students entering employment and student retention in the program. By the end of FY 2005, DOL anticipates converting a majority of the Job Corps contracts to PBSC as the existing contracts expire.
The remaining challenge will be to ensure that other DOL agencies expand their use of performance-based service contracting techniques. DOL will continue to facilitate high-level support for the performance-based service contracting initiative, and will offer additional training sessions to contracting and program management personnel throughout the Department.
Outcome Goal FM Enhance Financial Performance through Improved Accountability
The Department of Labor is committed to providing timely and accurate financial information to DOL managers and stakeholders, and to ensuring that our business processes are efficient and customer-driven. Here in DOL the collaboration of program and financial managers is key to our ability to manage programs successfully and provide accountability for the resources entrusted to us as a Department. DOL has made strides relative to the President's Management Agenda, including our progress in improving the accuracy and timeliness of financial information and integrating financial and performance management to support day-to-day operations across DOL.
The Office of the Chief Financial Officer (OCFO) provides integrity and stewardship of the Department's financial resources. OCFO provides comprehensive direction to all DOL agencies on financial management policies arising from legislative and regulatory mandates. FFMIA requires agencies to implement and maintain financial management systems that substantially comply with Federal financial management system requirements, applicable Federal accounting standards, and the United States Government Standard General Ledger at the transaction level. The Government Management Reform Act (GMRA) requires each agency to prepare and submit audited financial statements. The financial statements must comply with the Office of Management and Budget's Bulletin 01-09, Form and Content of Agency Financial Statements, as amended.
In addition, OCFO provides guidance, assistance, and oversight in implementing the Cost Analysis Manager (CAM) in each agency. OCFO specifically provides training to agencies on how to use the CAM cost model to support day-to-day operations across DOL. OCFO also provides assistance to agencies on how to maintain and update CAM within each agency so that it can provide up-to-date and useful information.
Goal (Agency) - Period |
Performance Summary |
FM1 (OCFO) FY 2004 |
DOL received its eighth unqualified audit opinion on its consolidated financial statements from the Office of Inspector General. All 17 DOL financial management systems substantially comply with the FFMIA standards. We also received the Certificate of Excellence in Accountability Reporting for the fourth consecutive year. |
FM2 (OCFO) FY 2004 |
OCFO developed a Department wide managerial cost accounting capability, completing cost models for 15 DOL agencies, and conducting briefings and training for agency heads and executive staff. |
| To improve financial performance under the President's Management Agenda, DOL partners with the Social Security Administration to share data that will reduce erroneous benefit payments in the Unemployment Insurance Program. Pictured are officials from DOL and the Social Security Administration signing a partnership agreement. |
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| Photo credit: OCFO |
Results Summary
Of the two performance goals listed, DOL achieved one
and substantially achieved the other. The Department received its eighth
unqualified audit opinion on its consolidated financial statements from
DOL's Office of Inspector General. DOL has reviewed and determined that
all 17 financial management systems substantially comply with the FFMIA
standards. In addition, the Departments continues to comply with the Federal
Managers' Financial Integrity Act (FMFIA) ensuring that its' resources
are sufficiently safeguarded. DOL issued its annual financial statements,
related notes, and supplemental information by the statutory deadline
and also received the Certificate of Excellence in Accountability Reporting
for the fourth consecutive year.
OCFO developed a Department-wide managerial cost accounting capability. In FY 2004, cost models were completed for 15 DOL agencies. These models define and cost, on a total and per unit basis, the significant outputs of each agency's major programs. CAM results briefs were provided for agency heads and executive staff. OCFO will continue work with agencies to fully deploy a managerial cost accounting system. Training for agency managers on using CAM for management decision-making is planned. OCFO expects to continue to improve agency cost models by refining resource and activity assignments, adding and revising outputs, improving allocation of overhead and support costs, and further mapping of outputs to performance goals. Automation of data collection and standard report preparation are also planned.
Future Challenges
To meet the challenges of the 21st Century work environment,
DOL recognizes that it must continue to be a proactive, analytically-driven
organization that leverages technology to provide the Department's leaders
with the financial information necessary to make decisions about performance
of their programs.
In FY2005, OCFO will lead the effort to enhance managerial cost accounting data models, improve automated reporting capability, improve interface of agency program systems with CAM, integrate agency cost models on a department level, and provide technical support to agency managers.
Maintain the Integrity and Stewardship of the Department's Financial
Resources
Performance Goal FM1 (OCFO) FY 2004
Improve the accuracy and timeliness of financial information.
Indicators
Maintain an unqualified (clean) audit opinion with no material
internal control weaknesses;
Meet new requirements and standards in accordance with the Federal Financial Management
Improvement Act (FFMIA) and Federal Managers' Financial Integrity Act (FMFIA);
Issue FY 2003 consolidated financial statements by February 1, 2004;
Issue quarterly financial statements within 45 days after the close of each quarter; and
Identify and correct processes and systems that contribute to erroneous benefit overpayments.
Program Perspective
OCFO provides comprehensive direction to all DOL agencies
on financial management policies arising from legislative and regulatory
mandates. FFMIA requires agencies to implement and maintain financial
management systems that substantially comply with Federal financial management
system requirements, applicable Federal accounting standards, and the
U.S. Government Standard General Ledger at the transaction level. The
Government Management Reform Act (GMRA) requires each agency to prepare
and submit audited financial statements that comply with the Office of
Management and Budget's Bulletin 01-09, Form and Content of Agency Financial
Statements, as amended.
Results, Analysis and Future Plans
This goal was substantially achieved.
The Department received its eighth unqualified audit opinion on its consolidated
financial statements. This opinion provides assurance that no material
weaknesses or inadequacies in internal controls would affect the Department's
financial statements. All 17 DOL financial management systems substantially
comply with the FFMIA standards. In addition, DOL continues to comply
with the Federal Managers' Financial Integrity Act (FMFIA), ensuring that
its resources are sufficiently safeguarded. DOL issued its annual financial
statements, related notes, and supplemental information by the statutory
deadline, and issued all quarterly statements 45 days after the close
of the first quarter and 21 days after each quarter thereafter. The Department
also received the Certificate of Excellence in Accountability Reporting
for the fourth consecutive year. During FY 2005, DOL will continue implementing
a new core accounting system by completing the design phase and using
live data.
DOL complying with the Improper Payments Information Act (IPIA) and strengthening quality control for all DOL payments not subject to the Act's reporting requirements. OCFO developed an inventory of programs susceptible to significant risk as defined by IPIA, analyzed existing improper payment mitigation activities vs. IPIA requirements for these at-risk programs and developed a strategy to bridge the gap. The strategy includes developing relevant sampling criteria, sample selection within risk programs, improper payment assessment, and estimation. For many years, DOL has measured the level of erroneous payments in the Unemployment Insurance (UI) program, analyzed the causes and identified the states with the most overpayments. To help states more easily confirm the identities of UI claimants, we arranged for the states and the Social Security Administration to exchange data, and for states to increase use of their own state new hire data. In FY 2005 and beyond, through the implementation of root cause analysis and corrective actions, such as the UI data exchange with SSA to permit real-time social security number validation, we expect to realize significant reductions in improper payments.
Management Issues
DOL is challenged with the task of implementing a new
core accounting system that replaces the existing 14-year old Department
of Labor Accounting and Related Systems' (DOLAR$). DOL will fully test
the system before, during, and after launch; perform validation and verification
of data transferring from the old to the new replacement system; to ensure
the system fully meets Federal financial system requirements and users'
needs.
Maintain the Integrity and Stewardship of the Department's Financial
Resources
Performance Goal FM2 (OCFO) FY 2004
Integrate financial and performance management to support day-to-day operations across DOL.
Indicators
Interfaced Department Accounting and Agency program systems
provide cost-based performance data; and
Develop and disseminate cost accounting policy and training materials to address issues raised in prior year survey.
Program Perspective
The Office of the Chief Financial Officer (OCFO) provides
guidance, assistance, and oversight in implementing the Cost Analysis
Manager initiative (CAM) in each agency. OCFO specifically provides training
to agencies on how to use the CAM cost model to support day-to-day operations
across DOL. OCFO also provides assistance to agencies on how to maintain
and update CAM within each agency so that it can provide up-to-date and
useful information.
Results, Analysis and Future Plans
The goal was achieved. OCFO undertook the development of a Department-wide
managerial cost accounting capability. In FY 2004, cost models were completed
for 15 DOL agencies including ETA, ESA OWCP, MSHA, OSHA, EBSA, VETS, ODEP,
WB, ILAB, OIG, ASP, OASAM, SOL (BLS already has a cost accounting capability).
These cost models, which are the core of the CAM system, combine financial
information supplied by the Department's core accounting system (DOLAR$),
along with labor distribution and workload data to develop activity and
output costs for agencies.
The CAM system provides cost-based performance information, including unit cost information on the significant outputs of each agency's major programs, as well as the underlying activity and resource costs. Unit cost information can be used to compare performance among districts, regions, programs, etc. For example, the MSHA Coal Mine Safety and Health program will compare the cost of inspections across districts, allowing determination of which districts have higher cost activities and outputs. Further investigation will ensue to discover and address causes. As cost models are updated in the future, the CAM system will also allow agencies to use cost information to measure performance over time. In some instances, cost models include the capability to cost agency performance goals.
CAM results briefs were provided for agency heads and executive staff. In FY 2004, approximately 50 employees representing all the participating agencies were trained in managerial cost accounting principles and methodology; these are in addition to approximately 130 employees trained in FY 2003. Additional training is planned for FY 2005 to train agency managers on how to analyze cost information and use it for decision-making. In addition, designated agency staff will be trained on how to update and maintain the models in the CAM system. Software to support periodic updates of the cost models has been selected and deployed to agency desktops.
In FY2005, OCFO anticipates continuing to work with agencies to promulgate adoption of managerial cost accounting. OCFO expects to continue to improve agency cost models by refining resource and activity assignments, adding and revising outputs, improving allocation of overhead and support costs, and further mapping of outputs to performance goals. Automation of data collection (from DOLAR$ core accounting system, agency workload and time tracking systems) and standard report preparation are also planned.
Management Issues
In FY2005, OCFO will lead the effort to enhance managerial cost accounting
data models, improve automated reporting capability, improve interface
of agency program systems with CAM, integrate agency cost models on a
department level, and provide technical support to agency managers.
Outcome Goal IT Provide Improved, Secure IT Service to Citizens, Businesses, Government, and DOL Employees to Improve Mission Performance
Effective management of information technology is critical to the success of nearly every facet of DOL's programs and operations and corresponds to the E-Government initiative of the President's Management Agenda. DOL strives to use information technology to deliver better service to citizens, businesses, other governments, our federal partners and employees. To meet our goals, we are implementing a comprehensive, integrated E-Government framework, taking full advantage of the rapidly changing technological environment and to adapt to changes brought forth by the digital economy.
DOL is a recognized leader in integrating IT capital planning and enterprise architecture activities with broader Federal and Departmental priorities. This integrated approach to managing our information technology portfolio enables us to identify future environments and to ensure IT remains closely aligned with our mission, goals, and objectives. DOL will continue to lead the GovBenefits Presidential Priority Initiative and participate actively in implementing the Federal E-Government Strategy by partnering with other agencies.
Goal (Agency) Period |
Performance Summary |
IT1 (OASAM) FY 2004 |
The system was implemented in both the National and Regional Offices for 14 DOL component agencies. Substantial progress was also achieved toward the interface with GSA Advantage. Final testing is underway for on-line shopping, which will be available by the end of September 2004. DOL did not reach its GPEA target of automating 100 percent of designated manual processes. |
IT2 (OASAM) FY 2004 |
The Department reached its Cyber Security Program indicator targets, exceeding projections regarding System Tests and Evaluations and internal Computer Security Incident Response Reporting. |
IT3 (OASAM) FY 2004 |
All targets were reached. Rollout and migration of the Department's new tool for electronic capital planning and investment management was achieved. Agencies used the tool to prepare their FY 2006 IT budget submissions. DOL reached its target of initiatives operating within 10 percent of cost, schedule, and technical performance parameters. DOL also reached its target for 95 percent of major IT initiatives completed during FY 2004 to deliver intended benefits. |
Results Summary
IT Goals 2 and 3 were achieved, while
IT Goal 1 was not achieved. We continue to plan, acquire, and implement
new information technology, business solutions, services and capabilities.
Our now-operational web-based e-procurement
system (EPS) provides a comprehensive toolset for extended acquisition
capabilities. It takes advantage of technological advances in order to
streamline processes, improve customer service, and reduce costs. Additionally,
EPS provides more reliable and accurate department-wide procurement-related
financial information. Internal factors impacting the implementation include
interfaces with the new DOL property system. The Department's Directory
Service will automate data reconciliation and make information in existing
directories accessible and re-useable even when the database formats differ.
The design calls for the implementation of a metadirectory capable of
pulling data from and distributing it to multiple directories based on
defined business rules. This capability, after integration into the department's
myriad systems, will eliminate mismatches caused when similar information
is manually entered into multiple databases. A metadirectory should also
eliminate redundant work in maintaining DOL's various electronic directories.
Future Challenges
DOL continues to plan, acquire, and implement new information technology,
business solutions, services and capabilities, and will soon fully implement
an Earned Value Management System to better manage IT projects while in
development.
Make DOL an E-Government Model Performance Goal IT1 (OASAM) FY 2004
E-Government - Utilize Technology to Improve Service and Efficiency
Indicators
Automate 100 percent of the manual processes designated under
GPEA;
Implement the web-based e-procurement system (EPS) to seven DOL component agencies; and
Establish an Enterprise-wide Directory Service.
Program Perspective
The web-based e-procurement system (EPS) provides
a comprehensive toolset for extended acquisition capabilities, by taking
advantage of technological advances in order to streamline processes,
improve customer service, and reduce costs. EPS provides more reliable
and accurate department-wide procurement-related financial information.
The Department's Directory Service will automate data reconciliation and
make information in existing directories accessible and re-useable even
when database formats differ. The design calls for the implementation
of a metadirectory capable of pulling data from and distributing to multiple
directories based on defined business rules. This will eliminate mismatches
caused by manual data entry into multiple databases, and alleviate directory
administration burdens.
Results, Analysis and Future Plans
This goal was not achieved. DOL reached
the web-based (EPS) target, and the system was implemented in both the
National and Regional Offices in 14 DOL component agencies; the target
was for implementation in seven agencies. DOL also completed interfacing
EPS with GSA Advantage'. Our
target to establish an enterprise-wide directory services was reached.
The directory service, with Windows 2003 Active Directory as its foundation,
has moved from its interim design in April 2003 to the target design.
This phase of the initiative is fully compliant with the Department's
System Development Life Cycle Management, and received its Authority to
Operate (ATO) from the Department's Chief Information Security Officer
in July 2004. Achieving this indicator simplifies and unifies DOL's many
directory functions, including email services. Our GPEA indicator remained
at mid-year status of 93 percent, failing to reach the 100 percent target.
Performance Goal
IT1 (OASAM) |
|||
Result |
Target |
* |
|
Automate 100% of the Designated GPEA Manual Processes. |
93% |
100% |
N |
Implement Web-based EPS in seven DOL component agencies. |
14 |
7 |
Y |
Establish an Enterprise-wide Directory Service (EDWS). |
Y |
Y |
Y |
*Indicator target reached = (Y), substantially reached = (S) or not reached (N)
Management Issues
Performance data for this performance goal is based
on internal tracking activities for progress on E-Government initiatives,
E-Procurement Implementation, and E-Government Workforce efforts. DOL
monitors these activities and produces quarterly progress reports. Internal
factors impacting the implementation of the EPS include interfaces with
the new DOL property system. Also, management will need to focus on interfacing
the new property system and EPS with the new financial system. The complexity
of the interface and its ability to enable some of the EPS functionality
will drive the costs and timing.
Make DOL an E-Government Model
Performance Goal IT2 (OASAM) FY
2004
Improve the performance of Department's Cyber Security Program in accordance with the Federal Information Security Management Act (FISMA).
Indicators
Ensure that 95 percent of DOL's sensitive systems have been
periodically assessed for risk and magnitude of harm that might result
from unauthorized access;
Ensure that at least 60 percent of all weaknesses documented in the FY 2004 POA&Ms are closed or on schedule;
Ensure that at least 90 percent of all DOL sensitive systems are fully certified and accredited during FY04;
Ensure that at least 98 percent of all DOL employees and contractors receive annual security awareness training;
Ensure that System Test and Evaluation has been conducted on at least 85 percent of DOL's sensitive systems;
Ensure that at least 50 percent of DOL agencies respond to DOLCSIRC advisories in accordance with the procedures in the DOL Computer Security Handbook;
Ensure that at least 95 percent of all DOL sensitive systems have contingency plans; and
Ensure that at least 50 percent of the contingency plans have been tested.
Program Perspective
The Department is faced with the increasingly difficult
challenge of protecting its automated information resources given the
ever-increasing number of IT security threats. DOL's Cyber Security Program's
purpose is to identify and afford security protections. These protections
are commensurate with the risk and magnitude of the harm resulting from
the loss, misuse, or unauthorized access to, or modification of information
collected or maintained by the Department. Protecting the Department's
critical IT resources requires the adoption of reasonable precautions
for securing its systems and networks. It also requires quick and effective
response if system and network security defenses are breached. To that
end, the Department's Cyber Security Program must be one that is comprehensive
and inclusive of internal policies and guidelines that ensure the integrity,
availability, confidentiality and security of its operations and assets.
In providing the protections mentioned above, the Cyber Security Program must provide an effective means for measuring and enhancing its information security program performance and must ensure its compliance with the Federal information Systems Management Act (FISMA).
Results, Analysis and Future Plans
DOL achieved its Cyber Security Program performance goal. DOL will reach
targets for system tests and evaluations and for internal computer security
incident response reporting.
Performance Goal
IT2 (OASAM) |
|||
|
Result |
Target |
* |
|
95% |
95% |
Y |
|
65% |
60% |
Y |
|
94% |
90% |
Y |
|
98% |
98% |
Y |
|
94% |
85% |
Y |
|
60% |
50% |
Y |
|
98% |
95% |
Y |
|
52% |
50% |
Y |
*Indicator target reached = (Y), substantially reached = (S) or not reached (N)
DOL has continually improved the performance of its Cyber Security Program. According to the Federal Computer Security Report Card issued by Congress, the Cyber Security Program has progressed from a grade of "F" in 2000 and 2001, to a grade of "C+" in 2002. The current grade (assessed in 2003) is a "B."
Indicator three, relating to certification and accreditation, has the greatest importance to the achievement of greater IT security. Certifying and accrediting major information systems gives the Department a level of assurance that the Cyber Security Program is operating effectively. There are no planned changes to the goals or indicators for FY 2005. However, because IT security is crucial, targets for each of the indicators will be more ambitious.
The Security program is integrated into all Departmental program areas such as the Enterprise Architecture, Capital Planning and Investment Control, the System Development Lifecycle, and our strategic plan. The Department is committed to its Computer Security Program, and will continue to ensure that resources are adequately allocated for the proper protection of our information systems.
Management Issues
OIG identified three reportable conditions related to
IT security:
- The Department lacks strong logical security controls to secure the Department's data and information;
- The Department has not developed and performed comprehensive tests of all continuity of operations/disaster recovery plans for critical systems and processes; and
- The Department has not corrected all known vulnerabilities associated with its systems.
The Office of the Chief Information Officer (OCIO) has completed several actions to mitigate the vulnerabilities associated with these reportable conditions. These actions include, but are not limited to:
- Advising senior management to give priority attention and resources to their agency specific conditions;
- Establishing focus group to leverage agency expertise to develop action plans to address the systemic issues;
- Performing a comprehensive review of applicable Departmental policies and procedures; and
- Making necessary revisions.
The performance data used by the OCIO Security team is reliable and complete. The metrics used are those required by OMB. Performance data is gathered on a quarterly basis from DOL agencies and is validated by the OCIO Security team via internal verification and validation processes, quarterly Capital Planning and Investment Control reviews, and e-Government reviews. The OCIO Security team also performs reviews of its own internal processes and procedures to ensure the efficiency and effectiveness of the Department's Cyber Security Program, thus ensuring the completeness of the performance data.
DOL has made considerable progress on all reportable conditions. The only risk to achieving its goal is the lack of funding for comprehensively testing contingency plans. The OCIO has guided DOL agencies to approach this requirement by developing incremental test plans, which allow economical testing.
For more information on these audits, see Study 8 in Appendix 2.
Sound IT Capital Planning
Performance Goal IT3 (OASAM) FY 2004
Improve organizational performance and effective information management through the use of the Departmental IT Capital Planning Investment Control process.
Indicators
95 percent of major IT initiatives completed during FY 2004
deliver intended benefits;
87 percent of in-process IT initiatives evaluated operate within 10 percent cost, schedule, and technical performance parameters; and
Rollout and migration to new investment management application for use during the FY 2006 budget cycle.
Program Perspective
The Clinger-Cohen Act requires agencies to use a disciplined
capital planning and investment control process to acquire, use, maintain,
and dispose of information technology. The Act seeks to improve performance
by requiring agencies to clearly define and implement an IT Capital Planning
and Investment Control (CPIC) process. This process is comprised of three
distinct phases: select, control, and evaluate. The purpose of the CPIC
process is to ensure that each IT investment aligns with DOL missions
and supports business needs, while minimizing risks and maximizing returns
throughout the investment's life cycle. It also allows decision-makers
to make prudent evaluations of an investment's costs, benefits, risks
and support for the DOL strategic goals and objectives when compared to
other competing IT requirements.
In FY 2004, DOL established policy for, and implemented an earned value management system (EVMS) for major IT investments. EVMS routinely captures standardized, detailed information for monitoring cost, schedule and performance of major IT investments over time. By keeping track of this data in a systematic fashion, project managers and DOL management receive timely progress information on IT development projects. DOL management is also able to make informed decisions about projects' direction and the merits of continued investment in specific IT projects. DOL's EVMS is compliant with current standards and guidance from the Office of Management and Budget.
Results, Analysis and Future Plans
This goal was achieved. All targets
were reached. Rollout and migration of the Department's new tool for electronic
capital planning and investment management was achieved in the 2 nd quarter
FY 2004. Agencies used the tool to prepare their FY 2006 IT budget submissions.
At 93 percent, DOL exceeded the 87 percent target for initiatives operating
within ten percent cost, schedule, and technical performance parameters.
DOL also reached its target for 95 percent of major IT initiatives completed
during FY 2004 delivering intended benefits.
DOL is committed to ensuring that information technology investments are based upon decision criteria that considers risk-adjusted return, emphasizes interoperability, improves delivery of services, and reduces costs. Achieving this goal is key to the success of the capital investment management process. Employing the Electronic Capital Planning and Investment Control (eCPIC) system facilitated the management of Department-wide IT investments and the preparation of budget data for submission to OMB. In addition, the rollout of EVMS produces monthly project data and shows trends over time. DOL will continue to develop goals and indicators, and set targets designed to ensure compliance with the IT Capital Investment Management Process; and support and assist agency managers and analysts in executing the IT capital investment management process through guidance, training, and oversight.
Management Issues
To ensure the reliability of performance data and to ensure that project
outcome goals are positively achieved with the cost, schedule, and performance
projections, DOL uses a combination of performance-based management mechanisms,
including the earned value management system and a quarterly review process.
Work Breakdown Structures (WBS) are required and updates are provided
to the OCIO upon request. Actual start and completion dates, percentages
complete and estimated costs are assessed against each element in the
WBS. Based on the information provided, an investment's performance is
assessed, and cost and schedule variances are calculated.
To mitigate the risk to project performance, cost and schedule variances are reported to senior management within the Department, and mechanisms have been put in place for addressing projects which exhibit poor performance. Such projects are closely reviewed during periodic reviews with the project manager, and corrective actions are developed and assigned. Progress of corrective actions is frequently checked to ensure that the project is on track.
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