Delivering Government Solutions in the 215': Century Reform Plan and Reorganization Recommendations TABLE OF CONTENTS I. The Mandate for Reform 2 II. Organizational Reform Principles 8 Overview of Organizational Alignment Priorities 14 IV. Looking Ahead 20 V. Government?wide Reorganization Proposals 22 Department of Education and the Workforce 23 Consolidate on?Commodity Nutrition Assistance Programs into HHS, Rename HHS the Department of Health and Public Welfare, and Establish the Council on Public Assistance 27 Consolidate Mission Alignment of Army Corps of Engineers Civil Works with Those of Other Federal Agencies 3o Reorganize Primary Federal Food Safety Functions into a Single Agency, the Federal Food Safety Agency 32 Move Select USDA Housing Programs to HUD 35 Merge the National Marine Fisheries Service (N MFS) with the US. Fish and Wildlife Service (FWS) 3? Consolidation of Environmental Cleanup Programs 39 Optimization of Humanitarian Assistance 41 Development Finance Institution Structural Transformation of Central Washington?Based Bureaus at the US. Agency for International Development 4? Reorganizing the US. Office of Personnel Management 51 Consolidation of Federal Veterans Cemeteries Reorganizing Economic Statistical Agencies 60 Consolidation of the Department of Energy?s Applied Energy Offices and Mission Refocus 63 Divesting Federal Transmission Assets 66 Restructure the Postal Service 68 DOT Mission Adjustments 7'1 Reform Federal Role in Mortgage Finance 75 Create the Bureau of Economic Grovvth US. Public Health Service Commissioned Corps 31 Improving Agility through Increased Use of Federallv Funded Research and Development Centers 83 Management Consolidation of Federal Graduate Research Fellowships S5 Rationalise the Federal Real Property Approach Consolidate and Streamline Financial Literacy Efforts 9o Streamline Small Business Programs 93 Consolidation of Certain Protective Details 96 Small Grants Consolidation 98 Transition to Electronic Government 1oo Customer Experience (CK) Improvement Capability 1o3 Next Generation Federal Student Aid Processing 8: Servicing Environment 1o6 Solving the Federal vaersecuritv Workforce Shortage 1o3 The GEAR Center 112 Transfer of Background Investigations from the Office of Personnel Management to the Department of Defense 115 Strengthening Federal Evaluation 118 Appendix: Agency?Specific Reform Proposals 122 Bibliography 128 I. THE NIANDATE FOR REFORM INTRODUCTION REFORM PLAMANDREDRGANIEATIDM RECDMMENDATIDNS Two decades into the 21St Centurv, the public still believes that the Federal Government serves critical roles, and in some areas performs them well However, public trust in the Federal Government has declined over the last decade,2 calling into question how weIIthe current organizational constructs of Government are aligned to meet Americans? needs in the digital age. Government in the 21gt Centuryr is fundamentallyr a services business, and modern information technologyr should be at the heart ofthe U.S. Government service deliveryr model. And vet, todav?s Executive Branch is still aligned to the stove-piped organizational constructs of the 20th Cen- turv, which in manv cases have grown inefficient and out- of-date. Consequentlv,the public and our workforce are frustrated with Government?s abilitv to deliver its mission in an effective, efficient, and secure wav. At times of great change, the need to reinforce this common commitment to ?government of the people, bv the people, and forthe people?3 has been critical. So it is not surprising, as the United States faces the challenges of serving the broad and diverse needs of our growing countrv, that it becomes important to reexamine the organizational alignment of Executive Branch Government institutions to ensure that our organizational constructs are well aligned to meet the needs of the 21*? Century. BENEFITS OF REORGANIZATION Refocus Structures around Mission and Customers Enhance Management Accountability Prioritize Limited Resources and Eliminate Un necessary Activities Improve Communications and Coordination To that end, Executive Order 13T81, entitled ?Com- prehensive Plan for Reorganizingthe Executive Branch,? highlights the need to evaluate the organizational con- stru that support todav?s mission deliveryr objectives. Building on a historyr of bipartisan Government reform initiatives, the E0 focuses specificallyr on the role of orga- nizational alignment in reducing?duplication and redun- dan cv,? and improving ?efficiencv, effectiveness, and accountabilityr of the executive branch This report outlines the Ad ministration?s an alvsis and recommendations for structural realignment of the Exec- utive Branch to better serve the mission, service, and stewardship needs ofthe American people. While some of the recommendations identified in this volume can be achieved via Executive administrative action, more signif- icant changes will require legislative action as well. Bv sharing kev findings, the Administration offers this report as a cornerstone to build productive, bipartisan dialogue around realigningthe Federal Government mis- sion deliveryr model to make sense in the 213? Centurv. As such, while some ofthe proposals are readyr for agencyr implementation, others establish a vision for the Execu- tive Branch that will require further exploration and part- nership with the Congress. Finallv, reorganization is one tool among manyr that this Administration is using to drive transformational change in Government. Meeting the needs of the American people, as well as the President?s mandate for greater efficiencv, effectiveness, and accountabilitv, requires a range of transformational approaches to sup- port reorganization. To that end, the President?s Man- agement Agenda outlines a range of additional priorities and tools that, in combination, will create an Executive Branch that is prepared to meet the needs of the American people both now and in the future. The Administration welcomes constructive dialogue and consideration of all the tools, capabilities, and organi- zational principles that help support our mission and better serve the public. 1 Pew Research Center, December ?Public Trust in Government: 1958?2017.? 1 Pew Research Center December 201?, ?Government Gets Lower Ratings for Handing Health Care, Environment and Disaster Response.? 3 President Abraham Lincoln, Address, November 19,1353. President Donald Trump, March 13, 201?, speech. DELIVERING EDUERNMENT SOLUTIONS IN THE 11!? HISTORY OF REFORM AND REORGANIZATION EFFORTS Nearly eyery new administration has sought to enhance and streamline the Goyernment bureaucracy to better align with policy and efficiency priorities. From the cre- ation ofthe Bureau of the Budget in 1921 under President Warren Harding, the Ezecutiye Branch has continued to eyolye to address the eyer-changing needs and mission ofthe Federal Goyernment. Reform and reorganization efforts in the 20?? Century reflected bipartisan efforts to enhance efficiency and effectiyeness, while reducing waste. In fact, untilthe 19T0s, Ezecutiye Branch reorga- nization was a reasonably common occurrence under- taken by most new administrations. More recently, 1'4- 11's.: 'v . - . {Mr-m if Im . p.14 I -1 .a - r3?; La . if? notable efforts at organizational reform included the personnel reform agenda initiated under President Jimmy Carter and implemented underthe Reagan Administration} as well as bipartisan efforts under Pres- idents Bill Clinton, George W. Bush, and Barack Obama to enhance shared seryices and increase public-pri- yate sector cooperation. Most successful reorganiza- tions haye also shared a common mission focus, usually responding to major mission failures or seryice deliy- ery issues. The most notable recent examples of major bipartisan reform and reorganization efforts came in 5 Donald Deyine, ?Reagan?s Terrible Swift Sword: An Insider?s Story of Abu se and Reform within th Fed eral Burea ucra cy,? December 1, 1991. REFDRM PLAHANDREDRGANIEATIDH RECUMMENDATIDNS response to mission challenges experienced after Still in the fight against terrorism. Operational, communication, and organizational alignment challenges resulted in the creation of the Department of Homeland Security and the Office of the Director of National Intelligence. Today, agencies have interconnected imperatives around mission delivery, customer service, and stewardship of taxpayer dollars. Broader, system-level thinking around Government reorganization requires tackling intercon- nected barriers to change across these three areas. Cybersecurity and cyberwarfare, digital service delivery and enhanced IT modernization, effective use of data for accountability and transparency, and workforce chal- lenges all require new organizational thinking to better integrate mission, service, and stewardship across the existing organizational silos of Government. Moreover, better organizational alignment should also enhance the Executive Branch ?s ability to increase efficiency via shared services, public-private partnerships, workforce redeployments, and better customer experiences. DELIVERING EDUERNMEHT SOLUTIONS IN THE 1.1115-r Tliv'l ELINE FOR cos-1 REFORM March 13, 201? The Presidentissues an Executive Order directing DMB to propose a comprehensive plan to reform and reorganize Executive Branch departments and agencies. June 30, 201? April 12, 201? - June 12, 201? Agencies provide DMB high?level drafts of initial reform ideas. Agencies submit reform proposals to DMBwith FY 2019 budget requests. FY2019 President?s Budget is released and includes select reform and reorganization proposals as a first step in presenting the comprehensive plan to theAmerican people. JUN: 2013 DMB releases a comprehensive plan to reform and reorganize Executive Branch depart- ments and agencies. DIM accepts public comments,thch are shared with agencies. DMB meets with Chief Financial D?icers Act agencies and a limited number of other agenciesto discuss draft plans. DIM analyzes reform a nd reorganization proposals and cross?cutting opportunities along with the FY2019 President?s Budget. 31:: :c May 201 3 DMB focuses on longer-term reform and reorganization opportu? nities outside the F"rr 2019 President?s Budget a nd works with agencies. Summer 2013 DM and agencies begin a dialoguewith Congress to prioritize and refine proposals to best serve the American people. . 7 All agencies that regulate food safety should be under one department, preferably under the Dept. of Agriculture.? Kenneth Washington State II. ORGANIZATIONAL REFORM PRINCIPLES The current process for assessing organizational change began in June 201? when Executive Branch agencies submitted their initial reform ideas to the Office of Management and Budget in response to an April 12, 2011' OMB implementation memo. These submis- sions included valuable feedback provided by the public through an open comment process.?E Over the summer and fall of 201?, agencies worked with OMB to refine the ideas, identify opportunities across agencies, and assess opportunities to act on proposals in the near term. Agen- cies submitted refined reform proposals to OMB as a part of their Fiscal YeariF?f] 2019 Budget requests. Many of the more straightforward, agency-specific organizational improvement opportunities were included in the FY 2019 Budget released in February 2018? or were adopted by agencies under existing authorities. ?The disappointment surrounding recent presidents is not due mainly to defects in their leadership qualities but to their failure to address the structural paralysis of modern government. George Washington couldn't run the government today.? - Phillip K. Howard The harder work of assessing cross-agency reform and alignment to the needs of the 215?Century began in ear- nest following the analysis of the President?s Manage- ment Agenda. This Agenda provided the broad context for what needs to change in Government, including a renewed focus on mission, service, and stewardship on behalf ofthe American people. Many ofthe inputs from the agency reform proposals and public comments on EO 13T81 informed creation of the President?s Manage- ment Agenda, as well as input for the reorganization rec- ommendations included in this volume. Specific proposals were evaluated using a framework that balanced the Federal Government?s mission, service, and steward ship objectives, recognizing that the most powerful and tran sformative changes bolster of these core objectives. 5 Office of Management and Budget Memorandum ?Comprehensive Plan fo Reforming me Federal Government and Reducing the Federal Civilian Workforce," April 12, 201?. i Efficient, E??ective,Accountobie: An American Budget ?Fiscoi Year 2019, Office of Management and Budget, February 12, 2018. 3' Rosenbloo m, David H., et al. ?The Handbook of Federal Govern- ment Leadership and Administration: Transforming, Performing, and Innovating in a Complex World.? Routledge, 2011'. Mission: The first principle of organizational reform in the 21St Century is to start with the mission. Specific reforms must ensure that Government activities are rooted in the missions that the American people, through their elected officials, require. Within these mission areas?from ation al security to infra stru ctu re to food and water safety?Government must have clear and aligned structures that allow Federal programs, staff, and agencies to deliver the outcomes the public expects. Service: Understanding the customer or stakeholder needs in the 211*t Century is critical to understanding how to realign the organizational model. In many cases, outmoded assumptions about customer and stakeholder needs have distracted from core mission, hindered outcomes, and fallen out of step with customer expec- tations. Federal customers?ranging from small busi- nesses seeking loans, to families receiving disaster sup- port, to veterans expecting proper benefits and medical care?deserve a customer experience that compares to or exceed 5 that of leadin private -sector organizations, which most Federal services lag behind. The Executive Branch must develop capabilities to better facilitate end - to-end customer experiences that cross agency bound- aries, and create faster, more convenient, and more cost-effective interactions. MISSION STEWARDSHIP Target opportunities to enhance mission, service, and stewardship REFORM PLAN AND REDRGANIIATIDN RECDMMENDATIDNS If you are one of the nearlyr 59 million Americans working for a small businessI you know the importance of excellent customer service. And while the Federal Government strives to support small business growth and competitiveness, duplicative and inconsistent programs spread across different Federal agencies have sometimes created confusion and extra worlt for the small businesses they mean to serve. As one wayr to malte things easier on small businesses, the Administration proposes to create a ?one?stop shop? for all small business Federal contracting certifications at the Small Business Administration. This proposal will the processes for both small businesses and the Federal agencies that want to contract with them. As a resultI America?s entrepreneurs will have less headache and be able to invest more of their time and hard?earned profits into operating and growing the businesses that lteep our economy strong. Stewardship: Effective stewardship of taxpayer funds is a crucial responsibility of the Federal Government, from preventing fraud to maximizing impact. Taxpayer dol- lars must go to effective programs that produce results efficiently. For example, Government too often recreates similar administrative functions across programs and agencies, failing to take advantage of opportunities for shared services, centers of excellence, or other arrange- ments that leverage the highest-performing organiza- tions and free up resources to focus on mission. Using data-driven methods, Government must shrewdly con- siderhow structural alignment can best support efficient and effective use of taxpayer dollars. MODELS TO LEARN FROM: ORGANIZATIONAL DESIGN IN THE PRIVATE SECTOR Reorganization is a key tool that private-sector compa- nies regularly employ to maintain relevance, efficiency, and effectiveness over time. While organizational change is hard and takes time, the experiences of companies in the private sector over the last few decades have shown Business and (Ix Operating Models ORG for the 21? Century We must change the way Government operates and move our capabilities into the 21st Century. that large-scale transformation is possible and can both improve customer service and lower costs. Studies by McKinseyE? and BCG11J have identified clear organizational design success factors before and duringimplementa- tion. For example, both studies agreed that the first, foundational step in organizational redesign success is to focus on lon g-term strategy rather than addressing immediate pain points or short-term needs. For the Federal Government, this means starting with a focus on mission outcomes and service delivery. Aronowitz, Steveran; Aaron De Smet; and Deirdre McGinty. ?Getting Organizational Redesign Right.? McKinsey Quarterly. June 2015. 1"?Tollman, Peter et al. NewApproach to Organization Design: Smart Design for Performance.? April 5, 2016. Available on-line at cg. com?zubi ico tions?? til do; eopie- organiza- Organintional .. 9 Construct ofthe PEDPIE: alignment Integrated business processes bythe people,forthe people? Multi-channelservice delivery .. . . . . . New capabilities and data Mission, service, stewardship Leveraging technology objectives and data DELIVERING GOVERNMENT SOLUTIONS IN THE 21? If a veteran who has served our country isn?t satisfied with decisions by the Department of Veterans Affairs (VA) about disability or other hard?earned benefitsI he or she has the right to appeal. But until recently, veterans were forced to use the same appeals process adopted after World War I?nearly loo years ago. This outdated process left veterans at the mercy of a confusing and complex system and slowed down appeals by forcing each veteran to navigate multiple layers of process. At the end of July 201?. approximately avopoo appeals were pending under the legacy system and, on averageI veterans were waiting approximately three years for a decision?and as much as six years for higher?level appeals. As VA refocuses on enhancing veterans" experience, it is accelerating a new appeals system that gives veterans options about the best way to pursue their appeal based on their unique situation. The new system is designed to significantly improve the timeliness of decisions by streamlining organizational processes and bureaucratic layers. Veterans with old, pending appeals can resubmit using the new system designed to significantly improve the timeliness of decisions. owI VA is empowering veterans with greater choice and timeljer service in resolving their appeals. Organizational decisions should be made and executed to create the most value for taxpayers and the customers of Federal services, not based on outdated legal struc- tures or historical precedent. Operating models must also be reviewed in light of the improvements possible in the digital age and lessons learned from peer organizations. Analysis that simply looks at the formal reporting structure on an organiza- tional chart misses other critical organizational struc- tures, including customer engagements, data flows, organizational processes, and the informal networks and cultural elements which make an organization run. The analysis must envision a new operating model that lever- ages the best thinking available. Finally, the analysis must translate the operating model into an organizational construct that better aligns resources with mission, delivers improved services, and operates more efficiently. New organizational constructs must be supported by change management processes, including identifying and managing risks; communicat- ing across leadership, managers, and front-line staff; and shifting incentives, expectations, and culture to sustain the change. Recognizing the challenges of driving organizational change, the Administration has been deliberate in devel- oping proposals to consider how implementation will be managed. Key factors duringimplementation include defining clear roles and responsibilities, managing the change process, ensuring alignment across leadership and line staff, and managing risk factors. REORGANIZATION ALIGNMENT FRAMEWORK Based on these approaches, a Reorganization Align- ment Framework was developed to assess the needs and opportunities to best align reorganization efforts to the needs ofmission. Development of this Reorganization Alignment Frame- work drew on a range of inputs from leading organi- zational change and strategic transformation thought leaders in the private sector, public sector, and academic worlds. For a list ofliterature that informed creation of the Reorganization Alignment Framework, please see the bibliography section. 1. ,r in Management 5 Improvement Opportunity U3 Ill ll. I 2 Transformation Urgency A Low E-Iigh? STEWARDSHIP EFF NE 55 REFORM PLANANDREORGANIEATION RECOMMENDATIONS As outlined in the Reorganization Alignment Framework above, organizational change priorities fall into four categories: - Mission Alignment Imperatives. Analysis high- Looking at the menu of your favorite pizza shop, you probably wouldn?t guess that different pies need to be regulated by different Federal agencies. But while a cheese pizza has to meet the Department of Health and Human Services" Food and Drug Administration standards, a pepperoni pizza falls under the Food Safety and Inspection Service at the US. Department of Agriculture (USDA). Last time you made an omelet, the FDA regulated any eggs you cracked yourself, but the FSIS was responsible if you poured from a carton of liquid eggs. And chickens? The FDA regulates their feed while the FSIS inspects them at slaughter. This division of responsibility started in response to unsafe and unsanitary meat packing conditions in the early teens, but today it introduces greater risk, inefficiency, and inconsistency into the important work of ensuring food safety, which affects everyone in America. To provide better food safety for the country and improve efficiency for stakeholders, the Administration proposes to consolidate core Federal food safety responsibilities into a single agency under LTSDA, where food safety is a top priority from farm to fork. This consolidation will give LTSDA the clear mandate, dedicated budget, and full responsibility it needs for optimal oversight of the entire U. S. food supply. Resources at the FDA will be freed up to focus on its core responsibilities of drugs, devices, biologics, and tobacco. Most importantly, this proposal will provide better food safety outcomes for the American people over the long term. IE DELIVERING GOVERNMENT SOLUTIONS IN THE .17115T lighted areas where Federal services are operating relatively efficiently, but outdated or misaligned organizational constructs hinder the ability to achieve mission objectives and effectively serve citizens. In addition, this Administration identified several opportunities to ?right size? the mission to the current environment. As such, reorganization proposals around mission alignment fall into two sub-categories: A. Organizational realignments to enhance mission and service delivery. B. Changes to refocu 5, reduce, or expand the mission. Management Improvement Opportunities! Proposals to Enhance Efficiency. Many Federal organizations are effectively fulfilling their missions and serving citizens but doing so in ways that dupli- cate other Federal activities or rely on outdated organizational structures that are wasteful and inefficient. These present cross-agency oppor- tunities to better steward taxpayer resources to achieve the same core missions with better results. Transformation Urgency: New Capability Requirements. in several areas, the Federal Gov- ernment lacks critical capabilities for successful mission delivery in a 215iCentury characterized by digital service delivery, data-driven mission sup- port, and increased need for collaboration across the public {Federal, State, and local] and private sectors. In many such areas, Government is failing to fulfill both citizen expectations and stewardship responsibilities. Organizations in Alignment. In other areas, orga- nizational capabilities are generally aligned with the customer and stakeholder needs of the 215L Century and balance mission, service, and stew- ardship needs. For these organizations, modest organizational updates, capability realignment, and additional investments may be needed. Since these changes represent ?business-as-usual? process improvement opportunities, this volume will not highlight these proposals in depth. For additional detail on these proposals, see page 122 {Appendix: Agency-Specific Reform Proposals]. AVOIDING APPROACHES Rather than adhere to a simplistic set of decision rules to identify priorities among these categories, individ - ual proposals have been assessed for factors including impact on mission, service, and stewardship in orderto account for programs? and agencies? unique roles and requirements and inform appropriate strategies. For example, while strategies such as reducing duplication and increasing centralization may make sense in many instances, these strategies may have unintended con- sequences. Sometimes, centralizing to improve coor- dination and lower costs through economies of scale best promotes mission, service, and stewardship. ?r'et in other cases, decentralizing to increase customer align- ment and improve flexibility to adjust to ?on-the-ground? realities may be preferable. Similarly, reducing program duplication has been demonstrated to lower costs and reduce confusion among both customers and employees. But some duplication across programs may also create valuable redundancy for mission-critical activities and increase program flexibility to react to changing factors. KEY DRIVERS OF REFORM Reorganizations in the private sector have demonstrated that without efficient and effective implementation, even well-conceived reorgani- zations may fail to achieve the r' Mission SERVICE on Aluminum-.1 Tia-mum intended benefits. To ensure effective implementation, the President?s Management Agenda11 highlighted three areas {see figure to the right] which help drive effective organization transformation: . STEWARDSHIP - Information Technology Modernization. - Data, Accountability, and Transparency. - People and the Workforce of the Future. 11 The President?s Monogement?gendo: Modernizing Government for the 21? Century, Executive Office of the President and the President?s Management Council, March 2018. When transforming orga- nizations to serve the needs of the 215LCentury, it will be critical to leverage HAHIIEEHEHT each of these key drivers. Ongoing work on this front is highlighted as part of the President?s Manage- mentAgenda, and you can see more detail on specific priorities at performonco. goty?pmo. in addition, these key drivers will inform next steps for each of the reform proposals discussed in this volume. Does your State have a dam that helps to generate electricity, supply drinking water, or support agriculture? when dam operations are being reviewed under Federal laws and regulations, two different agencies?the Department of the Interior?s (DUI) Fish and Wildlife Service and the Department of Commerce?s National Marine Fisheries Service? are tasked with considering implications under the Endangered Species Act. In carrying out their responsibilities, for example, one agency may worry about releasing enough water from the dam to benefit the species under its jurisdiction, while the other might worry about storing enough water for the species it manages. In some cases, conflict, confusion, and delays may result. Permitting projects like dam operations are just one example of where the Services have related and sometimes overlapping roles. To help the Federal Government develop more consistent Federal fisheries and wildlife policy, as well as more efficiently serve stakeholders in the permitting process, the Administration is proposing to merge these two Services under DDI. In addition to better serving the public, this consolidation will increase certainty for permittees and help support infrastructure development. REFORM PLAN AND REORGANIEATION RECOMMEN DATIONS is OVERVIEW OF ORGANIZATIONAL ALIGNMENT PRIORITIES Utilizing the frameworks described above, the Admin- istration?s comprehensive plan for reforming and reor- ganizing the Executive Branch includes proposals that extend across agencies, with the goal of increasing focus on integrated mission, service, and stewardship delivery. Our Nation is used to leadingthe world in technology innovation and service delivery and at one time, the US. Government catalyzed that innovation. As such, the Administration is in vesting in deep-seated transfor- mation that begins with the President?s Management Agenda and extends through the recommendations for Executive Branch organizational reform. This section provides an overview of the initial organizational reform priorities that are organized based on the Reorganization Alignment Framework presented above. MISSION ALIGNMENT IMPERATIVES A. Organizational Realignments to Enhance Mission and Service Delivery 1. Merge the Departments of Education and Labor into a single Cabinet agency, the Department of Education and the Workforce, charged with meet- ing the needs of American students and workers from education and skill development to workplace protection to retirement security. As part of the merger, the Administration also proposes significant Govern ment-wide workforce development program consolidations, streamlining separate programs in order to increase efficiencies and better serve Amer- ican workers. 2. Move the non-commodity nutrition assistance programs currently in the U.S. Department of Agriculture?s Food and Nutrition Ser- vice into the Department of Health and Human Services?which will be renamed the Depart- ment of Health and Public Welfare. Also, establish a Council on Public Assistance, com- prised of all agencies that administer public bene- fits, with statutory authority to set cross-program policies including uniform work requirements. . Move the Army Corps of Engineers {Corps} Civil Works out of the Department of Defense to the Department of Transportation and Department ofthe Interior to consolidate and align the Corps? civil works missions with these agencies. . Reorganize the Food Safety and In spec- tion Service and the food safety functions of Food and Drug Administration into a single agency within USDA that would cover virtu- ally all the foods Americans eat. . Move rural housing loan guarantee and rental assistance programs to the Department of Housing and Urban Development allowing both agencies to focus on their core missions and, over time, further align the Federal Government?s role in housing policy. . Merge the Department of Commerce?s {Com- merce} National Marine Fisheries Service with Fish and Wildlife Service. This merger would consolidate the administration of the Endangered Species Act and Marine Mammal Protection Act in one agency and combine the Services? science and management capacity, resulting in more consistent Federal fisheries and wildlife policy and improved service to stakeholders and the public, particularly on infrastructure permitting. . Consolidate portions of DOl?s Central Hazardous Materials Program and Hazardous Materi- als Management program into the Environmental Protection Agency?s Superfund program. This consolidation would allow EPA to address environmental cleanup underthe Comprehensive Environmental Response Compensation 8.: Liability Act on Federal land regardless of which of these agencies manages the land, while DUI and USDA would maintain their existing environmental compliance, bonding, and reclamation programs for sites. REFDRM PLAHANDREDRGANIEATIDH RECUMMENDATIDNS If you have childrenI you know that preparing for success in work and life begins early and?particularly in a changing and growing economy?continues throughout life. You want your kids to have a strong start in school as preparation for professional successI no matter what dream they pursue. And as adults, you want them to have easy access to training and information connecting them to the jobs they want and need, especially as the economy changes. The Federal Government should be making it easy for individuals to access high?quality education, trainingI and employment resources as they transition from one stage to the next. That?s why the Administration is proposing to consolidate the Departments of Education and Labor into a single Cabinet agencyI eliminating duplication across the two agencies and maximizing the effectiveness of skill?building efforts. The new agency will be charged with meeting the end?to?end needs of American workers and studentsI from education and skill development to workplace protection to retirement securityI to ensure access to the full range of coordinated resources Americans need to succeed in the 21st Century economy. 8. Optimize Department of State {State} and U.S. Agency for International Development humanitarian assistance to eliminate duplication of efforts and fragmentation of decision-making. A specific reorganization proposal will be submitted by State and USAID to OMB as part oftheir FY 2020 Budget request to improve the efficiency and effec- tiveness of the Federal Government?s humanitarian assistance across State and USAID, establish unity of voice and policy, and optimize outreach to other donors to increase burden-sharing and drive reform at the UN and in multilateral humanitarian policy. 9. Consolidate the U.S. Government?s develop- ment finance tools, such as the Overseas Private Investment Corporation and the Develop- ment Credit Authority of USAID, into a new Development Finance Institution in a reformed and modernized way to leverage more private- sector investment, provide strong alternatives to state-directed initiatives, create more innovative vehicles to open and expand markets for US. firms, and enhance protections for US. taxpayers. in. Transform USAID through an extensive, agen- cy-driven structural reorganization of headquar- ters Bureaus and Independent Offices as a foun- dational component of overall plans to bet- ter advance partner countries? self-reliance, support U.S. national security, and ensure the effectiveness and efficiency of foreign assistance. 11. Move the policy function ofthe Office of Personnel Management into the Executive Office of the President, and elevate its core strategic mission while devolving certain operational activities DELIVERING GDUERNMENT SDLUTIDNS IN THE 1.111sT 12. 13. 14. the delivery of various fee-for-service human resources, IT services, and background investiga- tions to other Federal entities better align ed to pro- vide non-strategic transaction processing services that meet 21-?Century needs. This new structure would better accommodate an overhaul ofthe Fed- eral civil service statutory and regulatory framework. Transfer responsibility for perpetual care and operation of select military and veteran ceme- teries located on DOD installations to the Depart- ment of Veterans Affairs? National Cemetery Ad ministration. This transfer assures these cem- eteries will be maintained to national shrine stan- dards to continue the recognition of service of those interred therein, gains efficiencies, and limits mis- sion overlap based on a common-sense approach to good government. Reorganize the 11.5. Census Bureau, the Bureau of Economic Analysis, and the Bureau of Labor Statistics under Commerce to increase cost-effec- tiveness and improve data quality while simultane- ously reducing respondent burden on businesses and the public. Together, these three agencies account for 53 percent of the US. Statistical Sys- tem?s annual budget of $2.26 billion and share unique synergies in their collection ofeconomic and demographic data and analysis of key national indicators. Consolidate the Department of Energy?s applied energy programs into a new Office of Energy Innovation in order to maximize the ben- efits of energy research and development and to enable quicker adaptation to the Nation?s changing energy technology needs. B. Changes to Refocus, Reduce, or Expand the Mission 15. Devolution of Activities from the Federal overn ment a] Sellthe transmission assets owned and operated by the Tennessee Authority and the Power Marketing Administrations within DOE, including those of Southwestern Power Administration, Western Area Power Administration, and Bonneville Power Adminis- tration, to encourage a more efficient allocation of economic resources and mitigate unneces- sary risk to taxpayers. b] Restructure the U.S. Postal System to return it to a sustainable business model or prepare it for future conversion from a Govern ment agency into a privately-h eld corporation. The President?s Task Force on the United States Postal System will make recommendations on reforms toward 5 this goal in Augu st 2018. Reorgan ize DOT to better align th a gen cy?s core missions and programmatic respon- sibi liti es, reduce transportation program fragmentation across th Govemment, and improve outcomes. Changes would include spinning off Fed eral respon sibility for operating air traffi control services, inte gratin into DOT certain coastal and inland waterways commer- cial navigation activities and transportation secu- rity programs, and reassessingthe structure and responsibilities of Office of the Secretary. 16. Transform the way the Fed eral Government delivers support for the U.S. housing finance system to ensure more transparency and account- ability to taxpayers, and to minimize the risk of tax- payer-funded bailouts, while maintaining respon- sible and sustainable support for homeowners. Proposed changes, which would require broader policy and legislative reforms beyond restructuring Federal agencies and programs, include ending the conservatorship of Fannie Mae and Freddie Mac, reducing their role in the housing market, and pro- viding an explicit, limited Federal backstop that is on-budget and apart from the Federal support for low- and moderate-in come hom ebuyers. 1T. Rethink how the Federal Government can drive 18. economic growth in concert with private-sector investments in communities across the Nation by coordinating and consolidating Federal economic assistance resources into a Bureau of Economic Growth at Commerce, producinga higher return on taxpayer investment on projects that are transpar- ent and accountable. Transform the U.S. Public Health Service Com- missioned Corps into a leaner and more efficient organization that is better prepared to respond to public health emergencies and provide vital health services, including by reducing the size of the Corps and building up a Reserve Corps for response in public health emergencies. MANAGEMENT IMPROVEMENT AND EFFICIENCY OPPORTUNITIES 19. 20. 21. 22. 23. Establish an accelerated process for determining whether one or more ofthe National Aeronau- tics and Space Administration?s Cen- ters should be converted to, or host, a Feder- ally Funded Research and Development Center FF RDCs can potentially allow the agency to be more agile in rapidly responding to changing needs and in recruiting and retaining scientific and technical expertise. Consolidate the administration of graduate fel- lowships for multiple Federal agencies under the National Science Foundation in order to reduce the total cost of ad ministering those fellowships. Optimize the Federal real property footprint by making smart investments in renovations and new facilities, driving down lease costs, and disposing of unneeded real estate through a streamlined process that results in the greatest return to the taxpayer. Consolidate and streamline financial education and literacy programs currently operating across more than 20 Federal agencies to ensure effective allocation of Federal financial literacy resources and avoid unneeded overlap and duplication. Strengthen the Small Business Administra- tion as the voice of small business within the Government by consolidating small business focused guaranteed lending and Federal contracting certification programs at SBA. REFORM PLAHANDREORGANIEATIOH RECOMMENDATIONS 24. 25. 25. Consolidate protective details at certain civil- ian Executive Branch agencies under the U.S. Marshals Service in order to more effectively and efficiently monitor and respond to potential threats. Threat assessm ents would be conducted with support from the U.S. Secret Service. Consolidate the small grants functions, expertise, and grantmaking from the Inter-American Foun- dation and U.S. African Development Foundation into USAID beginning in FY 2019. The consolidation would be a signifi cant step to reduce the prolifera- tion of Federal international affairs agencies that are operating today, while also elevating community-led, ?local works? small grants as a development and diplomacy tool forthe U.S. Government. Transition Federal agencies? business processes and recordkeeping to a fully electronic environ- ment, and end the National Archives and Records Administration?s acceptance of paper records by December31, 2022. This would improve agencies? efficiency, effectiveness, and responsiveness to cit- izens by converting paper? based processes to elec- tronic workflows, expanding online services, and enhancing management of Government record s, data, and information. TRANSFORMATION URGENCY CAPABILITY REQUIREMENTS Transform the way Americans interact with the 28. Federal Government by establishing a Govern- ment-wide customer experience improvement capability to partner with Federal agencies to help them provide a modern, streamlined, and custom- er- centric experience for citizens, businesses, and other customers, comparable to leading private- sector organization s. Pursue a Next Generation {Next Gen) Financial Services Environment as a new approach to Fed- eral Student Aid processing and servicing with a modernized, innovative, and integrated architecture. Next Gen will save taxpayers millions ofdollars and will create an improved, world-class customer experience for more than 42 million customers, while creating a more agile and stream- lined operating model. GDUERNMENT SDLUTIDNS IN THE 21$?Solve the Federal cybersecurity workforce shortage by establishing a unified cyber workforce capability across the civilian enterprise, working through DHS and 0MB in coordination with all Federal departments and agencies. The Ad minis- tration will work towards a standardized approach to Federal cybersecurity personnel, ensuring Gov- ernment-wide visibility into talent gaps, as well as unified solutions to fill those gaps in a timely and prioritized manner. Establish a Government Effectiveness Advanced Research (GEAR) Center as a public-private part- nershipto help the Government respond to in nova- tive technologies, business practices, and research findings that present opportunities to improve mis- sion delivery, services to citizens, and stewardship of public resources. Transfer the National Background Investigations Bureau from 0PM to non, providing the opportu- nity to achieve an efficient, effective, fiscally via- ble, and secure operation that meets all agencies? needs. Expand upon existing agency evaluation capabili- ties and push agencies to adopt stronger practices that would generate more evidence about what works and what needs improvement in order to inform mission-critical decisions and policies. These changes will help to ad dressthe large gaps and in consistencies across Government in Federal agen- cies? ability to formally evaluate th eir programs. Perm1tt1ng takes way too. long and ?99: Itoo- Inany tax dollars?. I l' labor are intimately 1nterwoven7?s"the Father of Vocational Etducauon nk Parsons put it, all ed_ucation?is" the last analysis, vocational education because it is supposed to pare students for 'iyesian future careers. These IV. LOOKING AHEAD The business of the Federal Government is to serve the Amer- ican people, but outdated organizational frameworks hinder our ability to deliver on our mission, service, and steward - ship objectives in the digital age. Data breaches, delays in background investigation and security clearance approvals, and outdated paper-based processes all erode trust in the Government. Moreover, when the American people compare Government service delivery models with the streamlined, multi-channel experiences they have when interacting with private-sec tor businesses, it is clear how outmoded many Government organizational models are. Americans routinely shop online, use smart phones to order rides, and get elec- tronic money transfer services and yet are forced to deal with multiple agencies and excessive bureaucracy when they interact with Federal agencies. permittingforinfra- structure projects, confusing and overlappingjob retraining programs, and byzantine requirements for applying for small business and farm loans all are calcified and entrenched in outdated organizational constructs designed decades ago. ?Not since the Industrial Revolution have the stakes of dealing with change been so high. Most traditional organizations have accepted in theory at least, that they must either change or die?"- from ?Cracking the Code of Change? it is also important to ensure that the Federal Government appropriately aligns its mission and service activities to areas where a Federal role is critical and where State and local gov- ernments cannot optimally provide effective services. It is no longer appropriate to avoid having foundational discussions about services that might be better served by direct State, local, or even private-sector stewardship. To the extent that existing organizational constructs are too complex or out- moded, organizational realignment or reform may be needed to ensure that mission, service, and stewardship objectives can be met. Recent decades have demonstrated that the Federal Gov- ernment will continue to change. The question is whether short-sighted, piecemeal change will continue to sell taxpay- ers short and ignore fundamental shortcomings or whether transformation will elevate Government to the level of efficiency, effectiveness, and accountability that the public deserves. With the support of the Congress, the priorities above and the reorganization proposals that follow will make important strides in re-crafting an Executive Branch that is structured to best facilitate delivery of mission, service, and stewardship for the American people. 12 Nohria, Nitin and Michael Beer. ?Cracking the Code of Change.? Harvard Business Review, May-June 2000. Available on-line at hbr. ii Did you know that the Department of Transportation is the primary Federal agency responsible for all modes of transportation, except for maritime issues? Unlike aviation, highways, transit, pipelines, and railroads, DDT plays a limited role in the maritime sector, as the LLB. Department of Defense, through the LLB. Army Corps of Engineers [Corps], has responsibility for supporting investment in maritime commercial navigation. Dur commercial ports and inland navigation channels have played a large role in how this Nation developed and where people live. Today, commercial navigation inf rastructure?from deepening and widening navigation channels for commercial ships to terminals where ships dock and cranes that load and unload them? continues to make important contributions to many of America?s local and regional economies and is supported by investments from Federal, State, and local governments, port authorities, and the private sector. Yet, unlike other transportation sectors currently centralized under DDT, responsibilities for supporting the maritime industry?s ability to support the nation?s economy are split between the Corps, which supports navigation improvements and waterside port investments, and DOT, which supports landside port investments. To fix this misalignment, the Administration proposes to consolidate the Corps? commercial navigation mission into DDT. Ey consolidating these functions, the Administration would place a single Federal agency in charge of supporting maritime transportation investments. This consolidation will enable DDT to better align investments across maritime and other transportation sectors to ultimately create a more efficient transportation system. Similarly, the Administration proposes to move the Corps? responsibilities for supporting investments in other water resources infrastructure such as flood control and aquatic ecosystem restoration to the Department of the Interior, which has responsibility for land and water resources management. REFORM PLAN AND REDRGANIEATIDN REEDMMEN DATIDNS Ei V. REORGANIZATION PROPOSALS Department of Education and the Workforce Departments of Education and Labor Summary of Proposal: This proposal would merge the Departments of Education and Labor into a single Cabinet agency, the Department of Education and the Workforce The new agency would be charged with meetingthe needs ofAmerican students and workers,from education and skill deyelopment to workplace protection to retirement security. Merging ED and DOL would allow the Federal Goyernment to address the educational and skill needs of American students and workers in a coordinated way, eliminatingduplication of effort between the two agencies and maximizing the effectiyeness of skill-building efforts. THE CHALLENGE ED and DOL share a common goal of preparing Americans for success in a globally competitiye world through family-su staining careers. Howeyer, the two Departments operate in silos, inhibitingthe Federal Goyemment?s ability to address th skill eeds of the American people in a coordinated manner. Th result has been the creation of a complicated web of funding streams for States and localities to administer, and a confusing set of signals sent to American students and workers regarding how best to deyelop the skills needed to succeed in the 2111L Century economy. The Federal Goyernment currently operates more than 40 workforce deyelopment programs spread across 15 agencies. This fragmentation perpetuates unnecessary bureaucracy and complicates State and local efforts to weaye together disparate funding streams to meet the comprehen siye needs of their citizens. The Administration proposes to merge ED and DOL into a single Cabinet agency, the Department of Education and the Workforce As part ofthe merger, the Administration also proposes significant Goyemment-wide workforce deyelopment program consolidation, streamlining separate programs in order to increase efficiencies and better serye American workers. THE OPPORTUNITY The new merged department would reduce unnecessary bureaucracy, streamline access and better integrate education and workforce programs, and allow the Administration to more effectiyely address the full range of issues affectingAmerican students and workers. The workforce deyelopment program consolidation would centralize and better coordinate Federal efforts to train the American workforce, reduce administratiye costs, and make it easier for States and localities to run programs to meet the comprehensiye needs of their workforce. WHAT PROPOSING AND THE RIGHT THING TO DO The proposal would merge all ofthe existing DOL and ED programs into a single department, DEW, with four main sub-agencies focused on: K-12, Higher Educatioanorkforce Deyelopment, Enforcement, and ministration. Thiswould help create alignment throughoutth ed ucation-to-career pipeline, while also creating coherence within the workforce deyelopm ent and higher education worlds. REFURM PLAN AND REURGANIEATIUN RECDMMENDATIUNS 23 K?l2 The K-12 agency would support State and local educational agencies to improve the achievement of preschool, elementary, and secondary school students, in cluding stud ents with disabilities, Native American students, and English language learners. The agency would comprise improved ED K-12 offices that would better integrate across K-12 programs and more effectively coordinate with higher education and workforce program s. The K-12 agency would administer activities currently implemented by Offices of Elementary and Secondary Education, Innovation and Improvement, English Language Acquisition, and Special Education Programs. As described below, the Rehabilitation ServicesAdministration would be moved to the Higher Educatioanorkforce Development agency. American Workforce and Higher Education Administration The new American Workforce and Higher Education Administration would be charged with ensuring that American workers possess the skills necessary to succeed in the workforce. The agency would bring together current DOL workforce development programs and ED vocational education, rehabilitation, and higher education programs. As part of the reorganization, the Administration also proposes to consolidate overlapping workforce development funding streams. Observers of Federal workforce development efforts have long noted the large number ofprograms across multiple agenciesand duplicative administrative structures inherent in the system. Since 2011, the GovernmentAccountability Office has identified workforce development as an area of duplication, fragmentation, and overlap and has suggested that colocating services and consolidating administrative structures may heighten efficiency.? Despite modifications made as part ofthe 2014 reauthorization ofthe Workforce Innovation and Opportunity Act the system remains fragmented at the Federal level. To address these issues, the new agency would place higher education and workforce development programs under the same umbrella. By doing so, Federal skill-building policy would be better coordinated to meet the full range of needs of American students and workers, and in particular would support improved synergy between higher education and workforce development programs. This proposal would simplify and streamline Federal workforce development programs, moving from the current arrangement of more than 40 programs at 15 agencies to 16 workforce development programs at seven agencies. The AWH EA would be structured to include components focused on: Higher Education; Disability Employment; Adult Workforce Development; ?fouth Workforce Development; and 1 v'eterans Employment, each headed by a presidentially-appointed official. - The Higher Education component would better align programs that promote and expand access to postsecondary education with workforce development programs to meet the diverse needs of students and workers. Thisincludesstrengtheningthe capacity of collegesand universitiesto promote reform, innovation, and improvement in postsecondary education, while expanding access to and driving improvement in high-quality, short-term programs that provide students with a credential, certification, or license in a high-demand field. The Higher Education component would also complement Federal Student Aid?s customer-service focus and move to the Next Generation {Next Gen] Financial Services Environment, also proposed in this Volume. Next Gen would enhance operational components of Federal student aid programs, make it easier than ever to apply for 1 Government Accountability Office, Multiple Employment and Training Programs: Providing Information on Colocating Services and ConsolidatingAdministrative Structures Could Promote Efficiencies, {January 2011}. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" financial aid from a mobile platform, and streamline the waythat schools interact with student loan seryicing and the repayment system. - The Disability Employment component would consolidate Vocational Rehabilitation State Grants and Office of Disability of Employment Policy into one office within the AWH EA, allowing for better coordination of seryices, policy direction, technical assistance, and reporting within the workforce deyelopment system. This office would ensure the proyision of high-quality seryices to indiyiduals with disabilities, maintain strong coordination with researchers on best practices to promote employment, and centralize DOL and support to States. - The Adult Workforce Deyelooment comoonent would con solid ate four major formula streams that currently serye adult populations in a duplicatiye manner: the WIOA Adult, WIOA Dislocated Worker, Employment Seryice, and Jobs for Veterans State Grants. This component would also consolidate three Natiye American-serying workforce deyelopment programs currently spread across three agencies, replacingthem with a set-aside for Natiye American adults. - The Youth Workforce Deyelooment comoonent would address both in-school and out-of-school youth and create stronger pathways to postsecondary paths and employment for both. - The Veterans? Employment Office would ensure that yeterans continue to receiye priority of seryice in the workforce system; adyise on yeterans? employment issues; and support the Departments of Defense and Veterans Affairs in ad ministeringthe Transition Assistance Program. would also maintain a Federally-administered Apprenticeship and Impact Fund, which would consolidate a range ofdisparate grant programs into a singlefund that isfocused on testingand replicating effectiye apprenticeship, workforce deyelopment, and postsecondary education models. In addition to greater policy coordination, this proposal could improye the use of data for learning, performance management, and eyaluation in order to study how education and workforce deyelopment programs lead to successful labor market outcomes. For example, education programs could benefit from high-quality information about participants? labor market outcomes, which are more commonly tracked in workforce deyelopment programs. Enforcement The Enforcement agency would include worker protection agencies from DOL that are responsible for enforcing statutes relating to workers? pay, safety, benefits, and other protection s, as well as Federal workers? compensation programs. The Agency would also include Office of Ciyil Rights, which is responsible forensuring equal access to education through enforcement ofciyil rights in the nation?s K-12 school and high er education institution s. The DOL agencies represent more than half of DO L?s workforce as measured in full-time equiyalents mostly comprised of field enforcement staff. In the new DEW, all ofthese agencies would report to one senior official to enhance the efficiency and coordination of enforcement and compliance assistance efforts. REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS Research, Evaluation, and Administration The Research, Evaluation, and Administration agency would include centralized offices focused on policy development, research, and evaluation, in addition to management-focused offices related to IT, procurement, financial management, and budgeting. Consolidating these functions would result in efficiency gains. As discussed elsewhere, the Bureau of Labor Statistics would be moved to the Department ofCommerce as part ofa proposal to bring the primary economic statistical agencies under on umbrella. DEFAHTMEHTUJF IEHEH ED Foalt-ttondary Ed uc?alion Programs vrutaaio'i .1I Iiehahil ilal ion DEPARTMENT IDF EDMUATIEINI Tl-ilE DEFARW EMT UF LAB-CIR MUD I-izi IHN ADMI N'Iiirl l-hlld EMT-E. RMHI I'll-B ADM I I'll IS Job-Training. a ndi niplovrnL'ril SI: not In- I I oh {Zorn I ll nem plovme In ?Lu lance E'rdjuolnicri .I'u?itii s-Iian EIFFIEE IDF Mill} THAI i'll N15 EEFWIEE FEDEHAM DHI I J'Idull Ed ?11155: I I'Iclult ILl'ilorlud'orce Development I Pottselcondanr Lclu cation {i ?Emmi c'1ll1u-rteli AI r: I Youth Workforce.- Programs Il'i :IIirIaani?ilip} ts rum and ice Education loll-Euros deirraliglludonluihid Disabililv . Unemployment Iri.5.ura'ItI: I Annrenlicesh in .1 nd Impact I?und I fin-rte Adiusrm err! mutton ce UTE Ell: El SIEIEHEES EVALUATION, 31 ill-ill MMIHIHEFHUH . Il-l! PROGRAMS . dune tion Fm the Dena I'tn'lenI-vn'de Eval Union EU calion'lci-r El": Disadva ntagod 4 Dim . . oad?vanlagu. Impact-Aid Program Ration Imp-act Aid 5';udent Aid Ad ministration tat honl Improvement Pro; ran-lap I D?ice of Insp Etta: ?-ec'r ecal F'r rains I Institute of Ed ucation ?ag? School-5. E. Citi coa-shi Safe Elm-D '5 EL?timn Sci-an tea I duration Education . Incl iilr?i I It'l?il IHEFI Innovation 3 nd Inc-lo vation a "d I r111i Iiih Ln ngunge Jlucqu isition Brawl?3 Education FUR RIGHTS Improvement rig Iisli': Lari goago Acquisition Spatial Education Worker Protection Again-dos lrom'the De pa rtm-en't of Labor For Civil Flight: MDVIHG TD IZITH urea of LaborStatic?ties [reorga iced etatistioal agencies] DELIVERING EDUERNMENT SDLUTIDNS IN THE 1.1115-r WEEKEH I Employee. Iiene?rs Saturn-3.! . Wage and Hour Divisioril D?ico of l-od'sral L'ontra-ct [:omplinnro Programs ?llinc? c?i-l labor Sta ndardzi I fi?ire of Workers? [jumpensalinn Programs Mint: S-al'vlv and Heal LII- ?dininihlralior?i I rircu pationa I Safe and Health Adminislral'ion LEE BUREAU GF ?T?Tl?Tl?i I Consolidate Non-Commodity Nutrition Assistance Programs into HHS, Rename HHS the Department of Health and Public Welfare, and Establish the Council on Public Assistance Departments angricuiture and Health and Human Services Summary of Proposal: This proposal moves the non-commodity nutrition assistance programs currently in the US. Department of Agriculture?s Food and Nutrition Service into the Department of Health and Human Services? Administration forChildren and Families and renames HHS the Department of Health and Public Welfare The proposal also establish es a Council on Public Assistance, comprised of all Federal agencies that administer public benefits, with statutory authority to set cross-program policies including uniform work requirements. THE CHALLENGE USDA and HS are currently responsible for ad ministerin gthe Federal Government?s major public assistance programs, not including housing programs. However, State and local governments, the entities delivering these servicesto participants, often administer many ofthese programs under a sin gle Agency. For example, wh en a person goesto servicesthrough the Temporary Assistance for Needy Families program and for nutrition assistance through the Supplemental Nutrition Assistance Program they often go to a single State agency office to do so. Unfortunately, that single State agency currently must follow two separate sets of reporting, regulatory, and other administrative requirements - one set imposed other by USDA for SNAP. This creates unnecessary administrative burden and potential duplication, using up resourcesthat could be better used helpingfamilies move towards self-suf?ciency. In addition, because these programs are currently ad ministered by different Federal departments, they are often not well coordinated. This proposal moves a number of nutrition assistance programs currently housed in USDA most notably SNAP and the Special Supplemental Nutrition Program forWomen, Infants, and Children ?to HS and, acknowledgingthe addition ofthese programsto the Agency, renames HHS the Department of Health and Public Welfare To providefor even more coordination across all Federal public assistance programs, this proposal also establishes a permanent Council on Public Assistance, housed in DH PW and composed of all agencies that admin isterpublic ben efit programs, includin USDA, the Centerfor Medicare an Medicaid Services, the Department of Housing and Urban Development and others. This Council would have statutory authorityto set certain cross-program policies, including on uniform work requirements. THE OPPORTUNITY This proposal will better align the administration of these public assistance programs at the Federal level with how they are often administered at the State and local levels. This will reduce administrative burdens an duplications of effort that currently exist for State and local governments. It will also en su re th at policies are applied consistently across all programs, potentially reducing confusing, complex, and sometimes contradictory requirements across programs that can make it difficult for both States and participants to follow the rules. REFDRM PLAHANDREDRGANIEATIDH RECUMMENDATIDNS WHAT PROPDSI NG AND THE RIGHT THING TO DO Move Non-Commodity Nutrition Assiston ce Progroms ono? Ren ome HHS FNS currently administers 15 nutrition assistance programs, which can be separated into two major categories: ?n ear-cash" benefit programs and commodity-based programs. Near-cash programs provide money to low-in come households, including through an electronic benefit transfer card or voucher, to allow participants to buy food through retail outlets. Commodity-based programs deliver actual food to eligible entities, who in turn provide a meal orfood benefit to participants. Near-cash benefit programs do not need to leverage expertise in food procurement or delivery, nor do they primarily fit with core mission of supporting American farmers and agriculture. Rather, these programs are designed to support low-income Americans, a mission area better situated in DPHW. Specifically, the Administration proposes to move SNAP, WIC, the Child and Adult Care Food Program and the Farmers? Market Nutrition Programs into AC F. USDA, whether with a smaller FNS or a different division, would continueto administerthe commodity-based programs, in cludingthe National School Lunch and School Breakfast Programs, The Emergency Food Assistance Program, the Commodity Supplemental Food Program, and others.2 Moving the near-cash benefit programs into ACF would allow for better and easier coordination across programs th at serve similar population s, en suring consistent policies and a sin gle point of ad ministration for the major public assistance programs. This single point of administration would lead to reduced duplication in State reporting requirements and other administrative burdens, and a more streamlined process for issuing guidance, writing regulations, and approving waivers. Having all the major public assistance programs nd er one agency would also create more synergies within the Agency, allowin to develop a more holistic understanding of how programs interact with each other, which itself could lead to better policy analysis and outcomes. For example, as States have provided more TANF benefits through non-cash assistance, SNAP enrollment has grown due to individuals becoming ?categorically" eligible This has resulted in some unintended consequences, such asfamilies becoming eligible through the receipt of a TAN pamphlet or other non-cash assistance. The Fiscal ?iear 2019 Budget proposed to tighten these loopholes, but combiningthese public assistance programs underone agency would help to increase awareness of these interactions and improve policy development that prevents such unintended consequences. With the move ofthese non-commodity programs, the welfare portfolio at HHS increases significantly. The proposal renames HS the Department of Health and Public Welfare to more accurately reflect the mission of the Agency and raise the profile of non-health related programs within the Agency. 1 CACFP provides reimbursem ent for meals served by participating child and adult care providers, ratherthan a direct benefit to me household. However, forthe same coordination reasons asthe near-cash programs, we recommend moving itto HHS to align with the Head Start and Child Care programs operated 2 er programs includethe Summer Food Service Program, 1118 Food Distribution Program on Indian Reservations, the Special Milk Program, Assistance to Nuclear Affected Islands, and Disaster Assistance {not including Disaster 23 DELIVERING EDUERNMENT SDLUTIDNS IN THE 11!? Establish Councii on Pubiic Assistance As part of this initiative, the Administration also proposes to create a permanent Council on Public Assistance within the DHP?v?vr that would accomplish the goal of ensuring a unified, coordinated focus on cross-cutting welfare and workforce issues at the State and local levels, and to drive Federal-level program reforms. The Council would be given statutorv authorities and responsibilities, including but not limited to: - Approving service plans and waivers requested bv States under Welfare-to-Work projects, assuming enactment ofthe FY 2019 Budget proposal; - Designing uniform work requirements to be implemented across all welfare programs; - ?Tie-breaker? authoritv to resolve disputes when multiple agencies disagree on a particular policv; - Designing cross-program stan dardsfor program applications, data verification, and program integritv; - Facilitating information sharing and collection as well as regulatorv and other policyr guidance coordination across affected agencies; and - Recommending programmatic and operational changes to eliminate barriersthat it identifies at the Federal, State, and local levels to getting welfare participants to work. The Council would be housed at and composed of agencyr heads or their representatives from USDA {including from the smaller, reformed FNS focused onlv on commoditv programs], HUD, the proposed Department of Education and the Workforce, the Office of Management and Budget, and others, as appropriate, and chaired bv DPH?livr senior leadership. Creating this Council would further break down silos between agencies operating public assistance programs bv establishing an interagencv coordination and support structure to carrv out the welfare reform agenda ofthe Administration with high-level visibilitv. Because this Council would become the Administration?s welfare policv-making apparatus, this proposal would consolidate policvmakingfunctions across the different agencies, likelv reducing administrative resources and duplication in current policvmakingfunctions, and would en sure that Federal public assistance programs are well aligned and focused on promoting opportunitv and economic mobilitv. REFDRM PLANANDREDRGANIEATIDN RECUMMENDATIDNS Consolidate Mission Alignment of Army Corps of Engineers Civil Works with Those of Other Federal Agencies Army Corps of Engineers Civii Works and Departments of Transportation and the interior Summary ofProposal: This proposal would move the Army Corps of Engineers Civil Wodts {Corps} out of the Department of Defen se and into the Department ofTransportation and Department ofthe Interior to consolidate and align Corps civil works missions with these agencies. THE CHALLENGE The primary mission of DOD isto providethe militaryforce needed to deter war and protectthe security of the Nation. The Corps placement within DOD grew out of its historic involvement in military construction. Today, the Corps conducts both military and civil works functions. The Civil Works program has three primary missions: commercial navigation, flood and storm damage reduction, and aquatic ecosystem restoration; the commercial navigation program is split between coastal and inland navigation. THE OPPORTUNITY Both DOT and DOI have missions that relate to andior complement the Corps? civil works missions. DOT has a broad overarching systemic view of transportation policy and infrastructure in the United States that could beneficially inform the Corps? transportation-related efforts. DOI administers various land, water, and natural resource management programs spanning the country that are complementary to Corps efforts. Under this proposal, Corps navigation would be transferred to DOT and the remaining Corps civil works missions {flood and storm damage reduction, aquatic ecosystem restoration, regulatory, and all other activities] would be moved to DOI, where those activities could be integrated and aligned with complementary programs focused on issues like water management, ecosystem restoration, and recreation. Aligning and consolidating Corps civil works mission areas into those of DOT and DOI would increase consistency of Federal policy and actions in both transportation and natural resource management, resulting in more rational public policy outcomes. It would also enable the broadest possible view of both transportation and land and water management infrastructure, thereby leading to improved Federal investment decisions. The transfer of certain Corps programs to DOI particularly when coupled with the oth er proposal in this Volume that would move the National Marine Fisheries Service to DOI consolidates most majorland and waterresource management programsin the Federal Government in one department. Consolidating these programs under one umbrella would improve effectiveness of land, water, and natural resource management efforts, as well as infrastructure permitting, across Government. It would also place Corps civil works activities in domestic agencies instead of in DOD, whose mission is focused on national defense. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY WHAT 1liliE?RE PROPOSING AND 1liliHY'lT?S THE RIGHT THING TO DO Under this proposal, the Corps commercial navigation functions would move to DOT, whose mission already includes Federal respon sibilityfor all other mod es oftransportation. All other activities, including flood and storm damage reduction, aquatic ecosystem restoration, hydropower, regulatory, and other activities, would move to DOI. Aligning and consolidating the Federal Government?s role in domestic water resources activities would provide greater consistency in policy and investment decisions, including comparisons of various investment opportunities. Doing so would increase economic efficiency and improve transparency of investment decisions. Moving Commerciai Navigation Functions to the Department afTranspartation Tran sferring Corps navigation programsto DCIT would consolidate responsibility across all transportation modes within a single Federal agency, thereby en cou ragingconsistent Federal policy in thetransportation sector. This consolidation would leverage expertise in infrastructure, and make maritime responsibilities analogousto its role in oth er transportation sectors. In the maritime sector, mission would expand to helping States and non-Federal partners make infrastructure investment decision s. Moving Remaining Functions to the Department ofthe interior The Corps administers an aquatic ecosystem restoration program to implement projects designed to benefit fish, wildlife, and their habitat. These projects are often justified by the benefitsthey provide to species protected under the Endangered Species Act and the Migratory Bird Treaty Act, two laws that DOI administers with great expertise. Development of these projects requires significant coordination with DUI to ensure that the resulting project effectively targets the highest priority needs. If the Corps? restoration program was administered through DOI, the Executive Bran ch could betterdirect its ecosystem restoration investments to achieve the greatest benefit to fish, wildlife, and their habitat, and better leverage the expertise and relationships DOI maintains with State fish and wildlife agencies. In addition, consolidating the Corps? regulatory responsibilities for permitting of non-Federal projects within DCII would simplify the infrastructure permitting process for stakeholders who often have to navigate multiple Federal agency processes when seeking project permits and approvals. Moving regulatory responsibilities, includingthose related tothe Section 404 ofthe Clean WaterAct and Section 10 ofthe Rivers and HarborsAct, within existing permitting programs would produce administrative efficiencies and opportunitiesfor simplified interaction with stakeholders. REFURM PLANANDREDRGANIEATIDN RECDMMENDATIUNS 31 Reorganize Primary Federal Food Safety Functions into a Single Agency, the Federal Food Safety Agency Departments angricuiture and Health and Human Services Summary of Proposal: This proposal would address the current fragmented Federal oversight of food safety by reorganizingthe US. Department ongriculture?s Food Safety and Inspection Service and the food safetyfunctions of the US. Department of Health and Human Services? U.S. Food and Drug Administration into a single agency within USDA. USDA demonstrates strong and effective leadership in food safety and maintains an expert understanding of food safety issues from the farm to the fork. This proposal would cover virtually all the foods Americans eat. THE CHALLENGE For more th an forty years, the Government Accountability Office has reported that the fragmented Federal oversight of food safety ?has caused inconsistent oversight, ineffective coordination, and inefficient use of resources,? and food safety has been on list of high-risk areas since 20 FSIS and FDA are the two primary agencies with major respon sibilitiesfor regulatingfood and the substances that may become part of food. FSIS is responsible for the safety of meat, poultry, processed egg products, and catfish, while responsible for all otherfoods, includingseafood and shelled eggs. There are many examples of how illogical ourfragmented and sometimes duplicative food safety system can be. For example: while FSIS has regulatory responsibility for the safety of liquid eggs, FDA has regulatory respon sibilityfor the safety of eggs while they are inside oftheir shells; FDA regulates cheese pizza, but ifthere is pepperoni on top, it falls under thejurisdiction of FDA regulates closed-faced meat sandwiches, while FSIS regulates open-faced meat sandwiches. To address thisfragmented and illogical division of Federal oversight, FSIS and the food safetyfunctions ofthe FDAwould be consolidated into a single agency within USDA called the Federal Food SafetyAgency. GAO and other experts have recommended merging Federal food safetyfunctions as a potential solution to this fragmentation. The National Research Council and the Institute of Medicine {now known as the Health and Medicine Division of the National Academies of Sciences, Engineering, and Medicine] have recommended thatthe core Federal food safety responsibilities should reside in a single entity or agency, with a unified administrative structure, clear mandate, a dedicated budget, and full responsibility for the oversight of the entire US. food supply. 1 Government Accountability Office, High?Risk Series: Progress on Many High?Risk Areas, While Substantial Efforts Needed on Others,? {Februa ry 2017}. 32 DELIVERING GDUERNMENT SDLUTIDNS IN THE 11!? CENTURY THE OPPORTUNITY The new Federal Food Safety Agency would pursue a modern, science-based food safety regulatory regime drawing on best practices ofboth USDA and HHS, with strong enforcement and recall mechanisms, expertise in risk assessment, and enforcement efforts across all food types based on scientifically- supported practices. The Agency would serye as the central point for coordinating with State and local entities and food safety stakeholders, rationalizing and simplifying the Federal food safety regulatory regime. The reform would reduce duplication of inspection at some food processing facilities, improye outreach to consumers and industry, and achieye sayings oyertime while ensuring robust and coordinated food safety oyersight. lu'lihilethe FDA and FSIS currently haye yery different regulatory regimes, consolidating FSIS and thefood safety functions of FDA would allow fora better allocation of resourcesbased on risk, better communication during illness outbreaks, and improyed policy and program planning through deyelopment of a single strategic plan. WHAT PROPDSI MG AND WHY THE RIGHT THING TO DO The irrational diyisions of responsibility between FDA and FSIS haye eyolyed since the early days of US. food regulation. The Congress created separate statutory frameworks, spurred in part by yarious food safety concerns and incidents ofthe day, origin ally to addressthe widespread marketing ofintention ally adulterated food an the un safe and un sanitary condition sin meat packing plants in the earlleDDs. Dyer the years,the Congress added new auth oritiesto meet new challenges. Oyertime, the different legislatiye authoritiesthat goyern the two agencies haye resulted in two distinct regulatory regimes, cultures, and approaches to addressing food safety. Thus, fully integrating FSIS and the food safety functions of FDA would ultimately require a reconciliation of underlying legislatiye authorities and regulatory approaches. Fo oo? Safety and inspection Service Approach FSIS is responsible forthe safety ofdomestic and imported meat, poultry, processed eggs, and catfish. Meat and poultry undergo continuous 100 percent] inspection during slaughter, and one or more Federal inspectors are on site during all hours that a slaughter plant is operating, and present for eyery shift in processing plants. FSIS is inyolyed in many areas offood processing and food distribution: the inspection of domestic products, imports, and exports; conducting risk assessments; and educating the public about the importance of food safety. FSIS en sures the safety ofimported products through a three-part equiyalence process that includes an analysis of the country?s legal and regulatory structure, initial and periodic on-site audits to ensure equiyalence with FSIS standards, and a continual point-of-entry re-inspection of products from the exporting country. Food and Drung?ministrcition Approach DA is respon sible forthe safety of all U.S. domestic and imported food except meat, poultry, processed eggs, and catfish. FDA conducts in spections of most establish manufacture, process, pack, or hold foods. FDA requires food importers to yerify that their foreign suppliers haye adequate preyentiye controls in place to ensure that thefood they produce is safe, and FDA can refuse entry into the United States of food from a foreign facility if FDA is denied access by the facility or the country in which the facility is located. FDA also has a systems recognition program, which determines whether another country has comparable regulatory programs and public health outcomesto the United States. Systems REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS recognition allows FDA to ayoid duplication of effort while leyeraging the high-quality work done by regulatory authorities in each country. Giyen the scope of responsibilities, FDA inspects food establishments based on risk. As required by law, FDA must inspect 100 percent of high-risk domestic food facilities FDAphysically inspectslessthan two percent of imported foods annually at the ports. Where FSIS and FDAstatutory andfor regulatory regimes oyerlap, some establishments fall under thejurisdiction of both agencies. Locating the Federoi FoodSofetyAgency Cit" USDA USDA is well poised to house the Federal Food Safety Agency. USDA is a strong leader in food safety; has a thorough understanding of food safety risks and issues all alongthe farm to folk continuum; and many agencies within USDAfocus on food safety. The Agricultural Research Seryice spends about $112 million on in-hou se food safety research, and ARS scientists work with both FSIS and help deyelop research priorities and food safety practices. In addition, many other programs at USDAhaye food safety elements, from helpingto manage wildlife on farms, to monitoring animal health, to collecting pesticide residue data on fruits and yegetables. USDA also has established relationships between State departments ofagricultu re, local farms, and processing facilities, and is thus keenly aware of food safety issues at all leyels. Following thefood reorganization, FDA {which would be renamed the ?Federal Drug Administration?) would focus on drugs, deyices, biologic s, tobacco, dietary supplements, and cosmetics. The proposed consolidation would merge approximately 5,000 full-time equiyalent employees and $1.3 billion from FDA with about 9,200 FTEs and $1 billion in resources in USDA. In the long term, the Administration expects this proposal would result in improyements in food safety outcomes, policy and program consistency, and more efficient use of taxpayer resources. 3.1 DELIVERING GUUERNMENT SDLUTIDNS IN THE 11!? Move Select USDA Housing Programs to HUD Departments ongricuiture and Housing and Urban Deveiopment Summaryr of Proposal: This proposal would move the Department of Agriculture?s rural housing loan guarantee and rental assistance programs to the Department of Housing and Urban Development Havingboth US DA and HUD housing programs administered by UD would allow both agenciesto focus on their core missions and, overtime, furtheralign the Federal Govern ment?s role in housing policv. THE CHALLENGE Currentlv, USDA and HUD operate similar programs that assist homeowners and low-income renters and support rental housing development. Each agencv operates its own mortgage insurance programs for home purchase and refinance loans, as well as loans to build, rehabilitate, and refinance rental housing properties. In addition, the two agencies operate separate rental assistance programs offering subsidies to make rents afford able to low-in come tenants.1 The programs, however, are not identical; there are differences in eligibilitv requirements, assistance levels, deliverv and oversight stru ctures, an other program features that have evolved separatelv overtime. Given that these housing programs are currentlv situated in separate agencies with distinct missions and priorities, incorporating best practices across programs and establishing a unified housing policv has been a challenge. This proposal seeks to mitigate these issues by moving single-family?r and multifamily:r loan guarantees and rental assistance programs to HU D. THE OPPORTUNITY Moving sing programsto HU would foster a more integrated approach to homeownership and rental housing programs by consolidating oversight and policy direction under one agencv. In the long term, it would improve operational efficiencv and service deliverv through integration of like programs and the adoption of best practices. WHAT PROPOSING THE RIGHT THING TO DO housing programs, which serve eligible rural areas, were initially established in the 1940s in response to an underrepresentation of national housing programs in rural areas. Th ev were also a result of the readv-made delivery?r svstem USDA had in place through its field office structure for farm loans. Since then, the rationale for separate, rural-focused housing programs at USDA has become outdated given role in serving communities throughout the Nation, including in manv rural areas. In fact, due in large part to the sheer size of its programs, HUD serves more households in USDA-eligible areas than USDA does. For example, as shown in the Figure, Federal Housing Administration 1 In general, HUD and USDA rental assistance programs make rents affordable to eligible households by paving the difference between the unit?s rent and 3D percent of a household?s adjusted income. These programs include: 1} ten ant-based rental assistancefvouchersfor eligible tenants to rent privatelyr owned apartments or single?familyr homes, which can be applied to different properties if tenants move; and 2} project-based rental assistance thatis attached to Specific properties and is available to tenants th ev are living in units at these properties. REFURM PLANANDREDRGANIEATIDN RECDMMENDATIUNS 35 guaranteed approximatelyr 633,000 sin gle-familvr loans in zip codesthat were 100 percent USDA-eligible from fiscal vears 2015 to 201ir compared to 258,000 loans guaranteed bv USDA. Moving USDAhousingprograms to HU 0 would bethe first step toward achieving lon g-term improvements in operational efficiencv and service deliverv. For example, program requirements, management and oversight processes, and svstems would be assessed to identifv and take advantage of best practicesfrom each agencv. Private-sector partners, including lenders and developers, that currentlv work with both agencies to administerhou sing programs could realize efficiencies as conflicting requirements are eliminated or reduced. Another long-term objective, to the extent it can be achieved with out compromising Agencv mission, would beto produce Federal savings bv reducing Agencv overhead costs. Number of FHA and USDA loans in 100% USDA-eligible sip codes, 2015-201? DA age sex see memo loans Same-e: HUD i'lr'ld USDA data. This reorganization could be modeled afterthe provision in a draft House bill, the Rural Regulatoryr ImprovementAct of 2011," which proposed to establish a separate UD Rural Housing office to provide loan guarantees and rental assistance in rural areas, and transfer the USDA housing programs into that office. This proposal is also consistent with findings from the Government Accountabilitv Office Since 2012, GAO has issued annual reports on opportunities to reduce fragmentation, overlap and duplication, and housing programs at USDA and UD have routinelyr been included in that report. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY Merge the National Marine Fisheries Service (NMFS) with the US. Fish and Wildlife Service (FWS) Departments of Commerce and the Interior Summary of Proposal: This proposal would merge the Department of Commerce?s National Marine Fisheries Service with the Department of the Interior?s US. Fish and Wildlife Service This merger would consolidate the administration of the Endangered Species Act and Marine Mammal Protection Act in one agency and combine the Services? science and management capacity, resulting in more consistent Federal fisheries and wildlife policy and improved service to stakeholders and the public, particularly on infrastructure permitting. TH CHALLEN GE The National Marine Fisheries Service located in the Department ofCommerce?s National Oceanic and Atmospheric Administration and the US. Fish and Wildlife Service housed within the Department ofthe Interior administertwo foundational laws that aim to prevent extinctions and recoverfish and wildlife:the Endangered Species Act and the Marine Mammal Protection Act Th Services? ju risdictions under th ese two laws is generally split based on abitat type, with FWS covering speciesth at spend time on land or in inland fisheries, while NMFS covers mostly marine species. This split jurisdiction, coupled with the fact that the Services are located in different departments, creates a confusing permitting landscape for project proponents. For example, when reviewing the impacts of a proposed dam system on endangered species, FWS and NMFS may come up with directly contradictory requirements about how that dam system needs to be managed to be ESA compliant. FWS may determine that the dam system needs to release extra water to benefit an endangered inland fish species, while MFS may simultaneously conclude that the dam operator should store that water to provide future benefits to an anadromousfish under NM management. The end result is confusion and a lack of clarity on how to proceed with the project. This proposal would seek to address these concerns by merging MFS with FWS in DOI, simplifyingthe administration of the ESA and MMPA, and coordinating fish and wildlife science and related resource management capacity in one bureau within DOI. THE OPPORTUNITY This proposal would simplify and bring greater clarity and consistency to the administration of the ESA and MMPA, enabling a coordinated and approach to ESAand MMPAregulatory reform. This would result in improved service to stakeholders and the public, particularly on infrastructure permitting. This merger would also combine fisheries and wildlife management capacity into one bureau within DOI. DOI already carries a great breadth ofnatu ral resource management responsibilities, and bringing NMFS and certain Army Corps of Engineers programs, as proposed elsewhere in this Volume, into DOI would increase the effectiveness of conservation efforts across the Government by puttingthem all under one umbrella. Overtime, the proposal may yield savings through the consolidation ofadministrative support functions within the merged FWS and across DOI. REFURM PLAHANDREDRGANIEATIDH RECDMMENDATIUNS 3? 1li?li'HliIlT 1liliE"RE PROPOSING AND ?li?ll'HVIlr THE RIGHT THING TO DO Merging MFS into DOl?s FWS presents opportunities to improve implementation ofthe ESA and MM PA, which will benefit of species and stakeholders and improve natural resource management. With the Services currentlv housed in different departments and assigned different species under theirjurisdictions, administration of the ESA and MMPA can be complicated and inconsistent, posing challenges for stakeholders and species alike. Under these statutes, both agencies have similar responsibilities: MFS for primarilv marine species and FWS for primarilv freshwater and land-based species. Under the ESA, the Services decide whether to protect a species list it as threatened or en dangered], designate critical habitat for listed species, and perform consultationsfor Federal actions that mayr impact listed species ortheir critical habitat. Underthe MM PA, the Services review and issue permits that allow the hunting, harassing, or killing of marine mammals in limited circumstances. In recent vears, FWS and NMFS have sought to better align their implementation ofthe ESA. Ratherthan pursuing individual regulations that govern ESA implementation, the Services have undertaken several joint rulemakings in recent vears, which establish clear and consistent definitions and processesfor how the ESA should be administered. However, bringing NMFS into FWS would also improve the effectiveness of fish, wildlife, and natural resource management activities bv coordinating protections forjointlv managed species, improving interagencvcoordin ation, and streamlining permitting. Both Services engage in complementarv scientific research, voluntarv habitat conservation, law enforcement, and international conservation work. A merger provides an opportunitv to look acrossthis suite of activities to direct resources at the highest value conservation work and to discover agencv best practices that could be applied more broadlv. This idea is not new. Dating back to the Carter Ad ministration, previous administrations and congresses have proposed reorganizing NMFS and FWS, with a focus on improving natural resource management. Those past proposals span a wide spectrum. From smallest to largest, these proposals have suggested moving ESA responsibilities to FWS, merging NMFS into FWS, moving NOAH into DUI, and establishing a new Department of Natural Resources. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" Consolidation of Environmental Cleanup Programs Deportmen ts of the interior ono?Agricuiture, onor the Environmentoi Protection Agency Summaryr of Proposal: This proposal would con solid ate portions ofthe Department ofthe Interior?s Central Hazardous Materials Program and the Department ongricu Iture?s Hazardous Materials Management program into the Environmental Protection Agencv?lePA] Superfund program. This consolidation would allow EPA to address environmental cleanup under the Comprehensive Environmental Response Compensation 8; Liabilityr Act on Federal land regardless of which of these agencies manages the [an d, while DUI and USDA would maintain their existingenviron mental compliance, bonding, and reclamation programs for sites. THE CHALLENGE The Comprehensive Environmental Response Compensation it: Liabilitv Act of 1980 provided the President with the authoritvto respond to the release of hazardous substances that pose a threat to public health orthe environment. EPA was designated asthe lead agencvfordeveloping and implementing guidance and regulation sforaddressingthose releases, and approving remediesforthe most contaminated sites in the countrv those sites that end up on the National Priorities List Thejob of actually,?r performing and pavingfor the cleanup activities wasthen distributed acrossthe Federal Government to ensure that agen cies have an incentive to be good environmental stewards ofthe properties th ev operate, manage, or administer. In general this svstem works as intended; agencies such as the Departments of Energv and Defense, for example, pav forthe cleanup associated with their activities on properties they operate, manage, or administer. The svstem becomes more challenging when addressing environmental conditions at abandoned mine sites, which are present on both private and public lands. EPA is delegated authoritv for conducting cleanup at mining sites on private lands, while DUI and USDA are responsible for executing cleanup at mining sites on Federal lands. The problem is that DUI and USDAinherited over 80,000 abandoned mine sites, over which theyr had no control prior to the mid-19T0s. While the vast majoritv of these sites have only minor environmental or phvsical hazards, some require a more extensive environmental cleanup. In those in stances, DUI and USDA guidance, but discrepancies in interpretations have led to inefficiencies and inconsistencies across the Federal cleanup regime. In some instances, inconsistent cleanup determinations within a mining district or watershed have been the result of these types of conflicting interpretations. In addition, due to competing mission priorities within DUI and USDA, the cleanup activities at these sites do not necessarilyr receive the same level of attention that they would if they were part of Superfund program. Consolidatingthe cleanup programsin a wavthat allows PAto add sites in need ofC ERC LA?level attention to the Superfund program would create ef?ciencies bv eliminating inconsistent interpretations amongvarious agencies, reducingthe number of decisions and approvals, and ultimatelv expediting the cleanup of sites. THE OPPORTUNITY This proposal would reduce inefficiencies, oversight costs, and indirect costs bv consolidating the environmental assessment and cleanup activities under the agencv with the most significant expertise in this area. REFURM PLAHANDREDRGANIEATIDN RECDMMENDATIUNS 39 WHAT PROPOSING AND 1ll?li'H?ll'lT?S THE RIGHT THING TO DO This proposal would integrate portions of the DUI and USDA cleanup programs into Superfund program in order to streamline the Federal Goyernment?s response to abandoned mine sites in need of enyironmental assessment and cleanup. The Federal Goyernment?s responsibilityfor cleanup is currently dispersed across agencies based on jurisdiction, as opposed to expertise and liability. This proposal would enable better use of resources and expertise, streamline the implementation of statutory and regulatory requirements, and facilitate a more comprehensiye and consistent approach to addressing contaminated lands across the Nation. The agencies estimate that there are oyer 80,000 abandoned mine sites on Federal lands, close to fiye percent of which could require a CERC LA-leyel cleanup. While DUI and USDA attempt to address those sites as they are identified, their enyironmental cleanup programs are not core to their missions, and therefore present a challenge forthe agencies to address th wid range of enyironmental issues stemming from mining sites and other actiyities on Federal lands. As such, certain sites requiring cleanup may not be addressed in as tim ely a manner as they could be ifinclud ed as part of a more holistic, national program. The multi-million dollar enyironmental liabilities associated with abandoned mine sites pre-date mod em Federal regulation ofenyiron mental issues. The General Mining Law of18T2 was enacted to help deyelop the West by encouraging mining on Federal lands without the need for bonding or permitting. In the mid -19T0s, enyironmental and otherland control issuesdroye the desire to deyelop a more comprehensiye Federal approach to the deyelopment of our natural resources. It was at that time that the Federal Land Policy and Management Act of 1976 and the Surface Mining Control and Reclamation Act of 19?? were passed. Underthese laws, DUI and USDA administerthe enyironmental compliance,financial bonding, and closure reclamation of mine sites on Federal lands. Due to their efforts since the passage of those laws, the yast majority of modern mine sites do not rise to the leyel of enyironmental degradation that would require a response under the CERCLA. DUI and USDA, howeyer, continue to be responsible for addressingthe enyironmental problems stemmingfrom the abandoned mines from the General Mining Law of 18T2 era simply due to their presence on Federal lands. EPA is the Fed eral agency responsible forth eyelopment of regulation 5, procedures, and guidance used by the Federal Goyernment to conduct enyironmental cleanup. EPA is also responsible for oyerseeing and approying remedies put into place at Federal sites on the NFL and proyidingtechnical assistance to States that oyersee cleanup actiyities at Federal sites that are not on the NPL. Due to this role, EPA seryes as the Federal Goyernment?s subject matter expert on decontamination and hazardous substance risk assessment. Funding and FTEs would shift from DOI {up to $10 million and eight and USDA {up to $3.5 million and six to EPA to coyer the increase in the assessment and cleanup workload at EPA, while DUI and USDA would continue to maintain funding and FTEs for their existing compliance, bonding, and reclamation programs formodern mines. Although the end result would be a larger Superfund program, it would continue to allocate resources based on risk. In addition, project managers would haye control oyer the cleanup work and not haye to direct the actions through another Federal agency manager at Federal sites. The affected States, Tribes, and communities surrounding these sites would also haye a single Federal point of contact for raising their concerns with the cleanup approach. This may also lead to certain sitesthat haye been languishing receiying attention, which could result in more fayorable cond itions for enjoying the atu ral enyiron ment of our Federal land 5, and the riyers and streams that run through them. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" Optimization of Humanitarian Assistance Department of State and U.S. Agency for International Development Summary of Proposal: The Administration is launching a process to optimize U.S. humanitarian assistance. U.S. humanitarian assistance programs are conducted by three Department of State {State} and US. Agencyfor International Development offices, dividing decision-making on humanitarian policy and implementation. The Administration will develop a proposal to reorganize how humanitarian assistan ce is provided across State and USAID to maximize our leverage and assure all assistance meets ourforeign policy goals and objectives, including the capacity to drive strong United Nations humanitarian system reform, increase burden sharing, minimize duplication of effort in programming and policy, and maximize efficiency in meeting humanitarian needs and resolving underlying crises. In developing this proposal, the Administration will address changes needed to achieve a unified voice on humanitarian policy, budget, and reformsto optimize outcomes. The process will consider all options to achieve these objectives. As part ofthis process, State and USAID will submit theirjoint recommendation to the Office of Management and Budget as part oftheir Fiscal Year 2020 Budget request,to optimize humanitarian assistance programs. THE CHALLENGE In FY 2017, State and USAID provided $9 billion in humanitarian assistance. More than 65 million people are displaced worldwide with needs outstripping limited resources. As a result, it is critical to maximize the impact of US. taxpayer resources spent on humanitarian assistance and deliverthe greatest outcome to beneficiariesfor those investments. Currently, three US. Government offices one at State and two at USAID share the responsibilityto establish humanitarian policies and implement related assistance programs. Given the size of US. humanitarian relief efforts, it is imperative that they coherently plan, budget, and program against needs, providingthe best possible outcomes for beneficiaries and value forthe taxpayer as well as avoiding duplication of effort and fragmentation of decision-making. State?s Bureau for Population, Refugees, and Migration serves asthe Government lead for program response to refugees those who have crossed an international border]. Within Bureau for Democracy, Conflict, and Humanitarian Assistance the Of?ce of US. Foreign Disaster Assistance isthe lead Federal coordinatorfor international disaster assistance and aid to internally-displaced persons Office of Food for Peace is the lead Federal provider of international food assistance, including to IDPs and refugees. All three offices?PRM, OFDA, and FFP?address the needs ofvictims of conflict, where, without careful coordination, there is the risk of overlapping effort. While PRM and DCHA have always responded to conflict-induced displacement, in the last decade the composition of global beneficiaries has changed dramatically. Victims of conflict have become the largest share of affected persons globally. Conflict-related emergencies which are man-made, inherently political, and require diplomatic engagement?impact a changing mix of refugees, IDPs, and otheraffected persons, which requiresthe three Government officesto be able to respond in a fluid and adaptable way. The most recent example is the Rohingya humanitarian emergency in Burma and Bangladesh. OFDA and PRM separately fund their partners to assist victims of conflict in Burma. PRM funds additional partners to support Rohingya who have become refugees by crossing into Bangladesh. FFP provides food for refugees, IDPs, and others affected in both Burma and Bangladesh. In an emergency situation REFDRM PLAHANDREDRGANIEATIDN RECUMMENDATIDNS like this, it can be difficult to con sistentlv execute a cohesive U.S. response that uniformlv monitors the performance of implementers, including agencies, en sures there are no duplications or gaps in aid, and deplovs a seamless and effective assistance strategv for all affected people. Under the current set-up, improvements in coordination across U.S. humanitarian assistance are dependent upon the circumstances and willingness of those involved on a case-bv-case basis. For example, in 2015, thanks to their good working relationship, the heads of USAID and State worked together to prevent the closure of the Dadaab refugee camp and the forced return of its occupants to Somalia. Similarlv, the delivervr ofhumanitari an assistance across different offices can result in multiple and divergent Government voices in international fora on UN humanitarian policyr and other aspects ofhumanitarian assistance, if not well coordinated, in an environment where most otherparticipant countries have a single voice, represented bvtheirforeign ministries. This results in confusion and reduces the effectiveness of the United States relative to its scale in the global humanitarian svstem. This structure can also create additional programmatic and other costsand inefficiencies in implementing U.S. assistance, ranging from programming efforts that are conflicting, or contain gaps, to the use of different contracting, oversight, accountabilitv measures, svstems, policies, and procedures with implementers. In addition, it impedes broader seamless and coherent responses encompassing all tools available to the United States, from relief assistance to development support. There is a growing recognition that relief-development coherence is kevr to solving prolonged large-scale displacement. The evolution and expansion in global humanitarian needsand responses in recentvears and the structure of the U.S. humanitarian response apparatus, among other factors, underscore we now need to optimize how we provide humanitarian assistance. THE OPPORTUNITY The ultimate goal is to achieve strategic, coherent, and seamless U.S. humanitarian programmatic and policv responses that best achieve our foreign assistance and policy,?r goals, and that maximize our leverage, the benefit to recipients ofassistance, and the value to the U.S. taxpaver. The Ad ministration ?s reorganization proposal will strengthen the capacitvr of the U.S. Government to achieve critical major reforms within the humanitarian svstem, optimizing outcomes and securing greater accountability:r and transparencyr within the multilateral humanitarian svstem. Specificallv, the final proposal will seek to achieve: - A seamless cohesive approach to humanitarian programming and funding delivered bv the United States; - Aunified voice th at ensuresthe United States exercises a level of influence over donors and multilateral humanitarian efforts commensurate with our overall level of humanitarian funding and that we are not disadvantaged in dealing with theforeign ministries of other nations. A unified voice will not onlyr allow the U.S. Government to more effectiver and consistently:r drive necessarv reforms amongst implem enters, particularlv the UN, but will also strengthen our abilitvto encourage other donors to increase their sh are of humanitarian assistance; and - Strong and consistent oversight of U.S. Government implementing partners? performance, including the UN humanitarian partners. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" WHAT PROPDSI MG AND 1liliHY'lT?S THE RIGHT THING TO DO Each U.S. humanitarian office?PRM, OFDA, and FFP?has its and often works well with the others, both in Washington and in the field, when their leadershipjointly focus on addressing specific challenges and improying specific responses. Howeyer,the actionstaken by State and USAID to date haye not oyercome structural deficiencies and therefore haye been unable to achieye a systematic, optimal, and consistent approach to humanitarian operations, programming and standards, policy issues, and coordination with the UN and other implementers, other donors and grantees. As outlined in the FY 2019 Budget, following an in-depth external study of humanitarian offices in 2016, the Administration decided to merge OFDA and FFP. The merger will allow these two offices to in creasethe efficiency and effectiyeness of humanitarian programs. The Administration intends to go beyond the FY 2019 Budget by eleyatingthe merged UFDA and FFP offices in a new USAID bureau. In addition, the Administration is deploying a new approach to relief in the near term across State and USAID as a stopgap measure that im proyes how we conduct humanitarian assistance within the current US. humanitarian structure, and is also launching a process that will optimize the structure of U.S. humanitarian assistance, culminating with the deliyery of a joint recommendation for consideration by 0MB as part ofthe 2020 Budget deyelopment process. ieyation ofUSAiD?s Humanitarian Assistance Offices into a Bureau As a first step, USAID is currently seekingto eleyate the merged OFDA and FFP into a new Bureau. The Bureau would reportto a new Associate Administrator for Relief, Resilience, and Response. This action is intended not onlyto raise the importance ofhumanitarian assistance within USAID and with domestic and international stakeholders, but also to improye and elimin ate uplication within crisis responses, including those crises driyen by persistent conflict and food insecurity. The improyements include facilitating thetransition from reliefto deyelopment in new and ongoing humanitarian emergencies. NewApproach to State and USAID are embarking on a new approach to relief in the near-term, discussed in broad terms in the FY 2019 Budget, to begin to address three presidential priorities to 1] increase burden-sharing by other donors; 2] catalyze adyance reform at the UN and other implementing partners; and 3] improye internal Goyernment coherence on humanitarian assistance. Under this approach, State and USAID will both continue to engage in humanitarian policy and diplomacy. Ampiifying U.S. Giabai Leadership by Optimizing U.S. Humanitarian Assistance In addition, the Administration proposes to launch a process to reyisit and optimize humanitarian assistance across State and result in a reorganization proposal in the 2020 Budget. This proposal to optimize how humanitarian assistance is proyided across State and USAID will establish the capacity to driye strong UN humanitarian system reform, increase burden-sharing, minimize duplication ofeffort in programming and policy, and maximize efficiency, and empower our diplomatic efforts to resolye conflicts and end long-standing displacement. Table 1 lays out the key challenges and risks, as well as the desired outcomes to be addressed in a final 2020 Budget proposal. REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS .13 In developing this proposal, the Administration will address fundamental changes needed to achieve a unified voice on humanitarian policv, budget, and reformsto optimize outcomes bv institutionalizingthe core elements of the ew approach to relief, to optimize the effectiveness of US. hu manitarian assistance, and to make the coordination of policvr and implementation across State and USAID seamless and more durable, accountable and effective. Table 1: Optimization of Humanitarian Assistance Current Challenges and Risks, and Desired Outcomes Current Challenges and Risks Desired Outcomes - Programming overlap, gaps and inconsistencies - Humanitarian leadership optimized to achieve across programs foreign policv priorities, including UN reform and other reforms, coherent policv and programming - Homes and pollcv posItIons not fullv coordinated in intern ation al forums and - Increased burden-sh aring negotiations - Strengthened delomacv to resolve conflIcts - Suboptimal policv positions and compromises in international egotiations - Seamless, coh erent bud getin g, plan ning, and programming {including planningfor - Difficulties in shiftingfunds across refugees, contin gencv needs] IDPS, and food as needed to address changing situations - Unified voice that seeks optimal UN reforms - Seamless implementation of relief- development coherence across affected persons regardless of status, not just IDPs - Different and suboptimal business models for providing assistance - Suboptimal accou ntabilitv, transparencv, efficiencv and effectiveness - Provision of aid based on needs {not status] - Abilitv to surge in unified, seamless response - Duplicative and different oversight and across all humanItanan assistance as crIses evolve reportin red uirements - Abilitv to use funding as needed either for refugees or IDPs and other affected persons - Significant and measurable improvements in outcomesfor beneficiaries and value for US taxpavers, including accountabilitvr and transparencyr - Seamless and coherent responses encompassing all tools available from relief assistance to development support DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY Development Finance Institution Overseas Private Investment Corporation and Deveiopment Creo'itAuthority Summary of Proposal: The Development Finance Institution brings together the U.S. Government?s development finance tools, such as the Overseas Private Investment Corporation andthe Development CreditAuthorityiDCA} ofthe U.S. Agencyfor International Development in a reformed and modernized way to leverage more private sector investment, provide strong alternatives to state-directed initiatives, create more innovative vehicles to open and expand markets for U.S. firms, and enhance protections for U.S. taxpayers. THE CHALLENGE ?Development finan ce? refers to the use of tools such as loans, guarantees, and political risk insurance to facilitate private-sector investment in emerging markets with the goal of achieving positive developmental impact. Public-sector support aims to mobilize transactions that the private sector wouldn?t do on their own. The U.S. Government has used these tools through OPIC to back projects in key sectors such as power, water, and health that improve the quality of life for millions, and help lay the groundwork for creating modern economies. Likewise, the U.S. Government has used DCA risk-sharing guarantee program to drive private investment into countries and sectors with no or insufficient access to commercial finance. Current U.S. development finance tools are outdated and fragmented across multiple Federal agencies, and often are not well coordinated. This has hampered the Government?s ability to make investments that support key U.S. foreign policy and national security objectives, and resulted in the in ef?cient use of taxpayerd ollars. For example, 0P IC and ave operated for over 15 years without significant legislative updates, and lack authorities to pursue more innovative deals in pursuit ofour foreign policy interest s. These institutions also have some duplicative functions, and lackthe most modern developm entfinance tools needed to counter the state-driven model of countries like China, or to cooperate with the DFIs of our allies like the United Kingdom, Germany, Canada, and Japan, who are investing heavily throughout the developing world. DFI brings together the U.S. Government?s development finance tools, such as OPIC and DCA, in a reformed and modernized way to leverage more private-sectorinvestment, provide strong alternatives to state-directed initiatives, create more innovative vehicles to open and expand marketsfor U.S. firm s, and enhance protections for U.S. taxpayers. THE OPPORTUNITY With a new DFI,the United States will be better placed to advance our development and national security goals in the developing world and boost the competitiveness of American businesses, which are critical for promoting American prosperity and security. Compared to the status duo, the DFI will be better aligned with the President?s National Security Strategy and better able to manage U.S. taxpayer risk. REFDRM PLAHANDREDRGANIEATIDN RECUMMENDATIDNS A consolidated DFI will increase coordination and operational efficiencies, makingmore funding available for programming. In addition, it will be more nimble and better able to mobilize private sectorfunding with a modernized 215t Centurv toolkit allowing it to compete globallv. WHAT PROPOSING AND WHY THE RIGHT THING TO DO n beforethe Asia-Pacific Economic Cooperation Summit in 'v'ietnam,the President committed to reforming U.S. development-finance institutions to ?better incentivize private-sector investment? and ?provide strong alternatives to state-directed initiatives that come with manv strings attach ed.? Additionallv, the President?s National Securitv Strategyr prioritizes effortsto catalvze private sector activitv in developing countries to complement our more traditional foreign assistance programs. The DFI will have reformed and modernized tools so that it is more interoperable with partners, while adhering to the kevr principles of mitigating risk to the U.S. taxpaver and not displacing private sector resources. The DFI will have similar toolsto CIPIC and DCAtodav, loans, guarantees, and insurance]. In addition, the DFI will be able to support development finance related feasibilityr studies, project-specific grants, and equity?r investments, with appropriate constraints. The DFI will have an updated governance structure and stronginstitutional linkages with the Department of State {State} and USAID to ensu re the prioritization ofprojects that are critical to national secu ritv and developmentallv impactful. The connectivitv will drive better pipeline and programming coordination amongst USG agencies. For example, in a high-prioritv countrv, we envision complementarv activities that could entail having the DFI support a feasibilitv studv and subsequent earlv-stage financingfor a new project, while USAID funds economic policv reforms that strengthen the enabling environment and attract more private-sector investment. To cement this alignment, the Fiscal ?fear 2019 Budget proposes resources for Stater SAID programming {and other transfer authorities] to support activities such as grants for technical assistance or ?wraparound? services that complement and supportthe project-specific investments. The new DFI governance structure will ensure that U.S. Government investments catalvze, but do not displace, the private sector, and will better manage taxpaver risk. For example, the Budget proposes ann ual loan limitations, in ad dition to an overall exposure cap, and the Administration?s proposal includes investment constraints to enhance taxpaver protection s. The Budget also requests sign ificantlv expanded fundingfor inspections, evaluations, and oversight of the DFI. The Administration expects savings from eliminating some redundant efforts in development-finance programs, such as risk-management, credit-modeling, and servicing. These savings will allow the DFI to allocate more effort to its mission than to duplicative overhead activities. The Administration?s DFI proposal is consistent with similar proposals from a range of independent stakehold er groups and think tanks such as th Modernizing Foreign Assistan ce Network and the Centerfor Strategic and International Studies, and derives important lessonsfrom other countries? DFls. Ad ditionallvr this proposal reflects significant coordination among all affected agen cies and various other stakehold ers. The Ad ministration has indicated stron support for the goals of H.R. the Better Utilization of Investments Leadingto Development Act of 2018.? The legislation is broadlvr consistent with the Administration?s DFI proposal, and the Administration has been working with the Congress to make adjustments to the text as the bills progress through the legislative process. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" Structural Transformation of Central Washington-Based Bureaus at the US. Agency for International Development US. Agency for International Development Summary of Proposal: The U.S. Agency for International Development is planning an extensive, Agency-driven structural reorganization of its headquarters Bureaus and Independent Offices, as a foundational component of its overall plans to better advance partner countries? self-reliance, support U.S. national security, and ensure the effectiveness and ef?ciency of foreign assistance. Most significantly, transformation will accomplish the following: 1] elevate and realign itshumanitarian assistance, conflict-prevention and response, and resilience and food security programs; 2] consolidate and reorient its centralized program design, innovation, and technical support functions to bettersupport overseas Missions; and 3] consolidate and streamline policy, budget, performance, and central management functions. THE CHALLENGE USAID has not undergone a compreh en sive structural transformation in more than 20 years. The operating environmentfor USAID has changed dramatically in those 20 years, and USAID is lookingto change with it by creating a more dynamic and ef?cient organization that enables its people and programsto be more effective while also maintaining the Agency?s leadership on development. The goal ofthis transformation effort is to strengthen the-Agency?s core capabilities. Specifically, that means breaking down stove-pipes and creatingcoherent and rational structuresth at can enable more ef?cient coordination and integration of programs and resources. It also means continuingto work to unlock information, analysis, and ideas intern ally and externally that can improve decision-making and programming across the organization. For example, the magnitude, complexity, and protracted nature of humanitarian assistance, stabilization, and resilience needs worldwide has outstripped existing structures and approaches, so the Agency has planned an improved structure that will enable fully-integrated responses and effective transitions from recovery to longerterm resilience and self-sufficiency. Further, specialized technical expertise and cross- cutting capabilities are dispersed in consistently and in some cases uplicatively across the Agency, with no single centralized resource to support Missions overseas in designing innovative and effective programs. budget, policy, and evidence-based performance functions are currently dispersed among multiple bureaus and of?ces, so th eAgency is plan ningto bringthose functions under one umbrella, as well as ensure coherence in operationalizingthe vision for self-reliance that is the centerpiece of the future USAID. Lastly, the restructuring is exploring how to better integrate core management functions to strengthen the operational foundation of the Agency. To add ressthese challenges, USAID is pursuing a comprehensive set of expeden ce-based, employee-driven reforms across the Agency. These proposals will elevate and consolid ate umanitarian assistan ce; better align efforts to prevent and respond to conflict and conduct stabilization and response efforts; on ablethe building of more resilient communities and countries in the face of shocks; reinforce advanced program design, innovation, and implementation as core capabilities; strengthen connections and coherence between policy, budget, and strategy; and align central management services. REFDRM PLAHANDREDRGANIEATIDN RECUMMENDATIDNS THE OPPORTUNITY These reforms will strengthen core capabilities in priority areas, rationalize Bureau and Office structures, and establish clear roles and responsibilities to reduce duplication, improye accountability, and maximize effectiveness. As a result, USAID will be better positioned to support the President?s National Security Strategy and economic growth objectiyes through foreign assistance, better deyelopment and emergency response outcomes; increased self-reliance in partner countries and a reduced need for traditional foreign assistance; improyed USAID program and procurement design and implementation; and greater accountability, effectiyeness, and efficiency in using taxpayer dollars. 1Il?liHlillT PROPOSING AND WHY THE RIGHT THING TO DO USAI D?s ambitiou structural re organization will proyid a strong found ation for its broadertransformation plans, which emphasize policy and process reforms across such topics as ending the need for foreign assistance, better su pporting national security, opening markets for .5. businesses, and driyin greforms in human resources, information technology, and procurement. These structural changes will help ensure that improyem ents are sustainable by strengthening core Agency capabilities and coordination, improying the design and implementation of humanitarian and deyelopment assistance programs, and streamlining offices and decision-making. USAID is inyesting extensiye time, expertise, and leadership focus in analyzing, deyeloping, and implementing seyen major Bureau changes, including in many Washington-based offices. Each majorchange summarized below is supported by a strong rationale and detailed plansfor successful implementation. Taken together, they represent a significant re-enyisioning of USAID and its potential to support U.S. national security, foreign policy, and economic goals while effectiyely managing and oyerseeing taxpayer-funded programs. Associate Administrator for Reiief, Response, and Resilience Th new Associate Administrator will lead an integrated effort to stren gthen and furtherunify humanitarian assistance with resilience and food security, and with preyention and response to conflict and crises. By proyiding oyerall strategic and programmatic guidance, the Associate Administrator will reduce stoye-piping, improye decision-making, and ensure effectiye, timely, and appropriate coordination of critical programming and technical assistance. This position will also reduce the number of indiyiduals who report directly to the Administrator and Deputy Administrator, and allow them to focus on broad strategy and management ofthe oyerall Agency. Bureau for Humanitarian Assistance The current structure of humanitarian assistance at USAID is out of date and based on an artificial bifurcation offood and non-food humanitarian assistance, which impedesfully-integrated, effectiye, and efficient responses. The new Bureau for Humanitarian Assistance will consolidate current Offices of Food for Peace and U.S. Foreign Disaster Assistance, unitinghumanitarian programming, eliminating confusion and duplication in the field and in Washington, D.C., and allowing beneficiaries and partners to deal with one cohesiye humanitarian assistance proyider within USAID. This unified structure will improye the Agency?s core capability to saye liyes, reduce hunger and human suffering, and mitigate the impact ofdisasters and complex emergencies around the world. .13 DELIVERING EDUERNMENT SDLUTIDNS IN THE 11!? Bureou for ono? Food Security Elevating leadership and strengthening Mission support on resilience will betterenable programs to break the cycle of chronic vulnerability, extreme poverty, and hunger driven by recurrent shocks and stresses - and therefore to reduce the types of instability that threaten U.S. national security. The new Bureau for Resilience and Food Security will combinethe capabilities and expertise ofthe current Bureau for Food Security {including the Center for Resilience], the Office of Water, and the Climate Adaptation team to provide technical leadership and more efficient and effective support to field Missions through four Centers that cover Agriculture, Resilience, Water, and Nutrition, as well as through cross-cutting capabilities such as research. Bureou for Con?ict Prevention Approximately TD percent of USAI D?s programmingis in fragile states or countries in conflict, emergingfrom con?ict, or at risk of conflict, yet current Bureau for Democracy Conflict and umanitari an Assistance does not always operate as one unit with one voice. The new Bureau for Conflict Prevention and Stabilization will hou se current DC HA Offices ofTran sition Initiatives; Civilian -Military Cooperation; Conflict Management and Mitigation; and Program, Policy and Management,along with Countering?v?iolent Extremism staff, in a single streamlined and focused Bureau. The Bureau will lead the implementation of effective conflict prevention, stabilization, and political transition assistance through field programs to respond to acute crises, integrated technical assistance and services to Missions, and surge capacity and rapid response support. Enhancing and more effectively integrating these functions in one bureau will strengthen abilityto counter violent extremism, advance US. national security, achieve long-term development goals, and help more countries move towards self-sufficiency. Bureou for Deveiopment. Democracy ono? innovotion In current structure, there is no single, central resource for program design and innovation, with relevant technical expertise spread inefficiently and inconsistently across the Agency, both at headquarters and in regional Bureaus. The new Bureau for Development, Democracy and Innovation will bringtogetherthetechnical expertise ofthe current Bureau for Economic Growth, Education, and the Environment;the Centerfor Democracy, Human Rights, and Governance; the Global Development Lab; regional bureaus; and other components such as American Schools and Hospitals Abroad, the Centerfor Faith-Based and Community Initiatives, and Minority-Serving Institutions Program. The Bureau will be a on e-stop shop for technical expertise and high-quality program-design support. It will house several Centers on specific topics and help Missions to improve programmatic results by integrating innovation, technology, inclusivity, good governance, private-sector engagement and partnerships, expertise in managing small grants, and other cross-cutting priorities into long-term development efforts. Associote Administrotor for Strotegy ono? Operotions Currently, bu dget, fin ancial management, policy and learning, and othermanagementfunctions are dispersed across multiple Bureaus that report separatelyto theAdministrator and Deputy Administrator. The increasing complexity of mission means that these two Agency leaders can no longer devote sufficient attention to strategic and programmatic priorities while also driving management reforms, operational and procurement improvements, and overseeing finances and human capital. USAID is exploring the feasibility and value of establishing a new Associate Administrator for Strategy and Operations that would unite these functions under a single dedicated leader for the first REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS time, to reduce stoye-piping; improye decision-making; and ensure effectiye, timely, and appropriate coordination of critical operations and man agementfunctions. This role would also reduce the number ofindiyiduals who report directly to the Administrator and Deputy Administrator, to allow them to focus at the strategic leyel while the Associate Administratorfor Strategy and Operation would be accountable for all management functions on a day-to-day basis. Bureau for Paiicy; Resources and Performance The new Bureau for Policy, Resources, and Performance will consolidate staff from the current Bureau of Policy, Planning and Learning, the Office of Budget and Resource Management, the Bureau for Management, and the Global Deyelopment Lab to better coordinate, align, and strengthen foreign assistance policy, resource management, and eyidence-based performance managementfunctions. The PRP Bureau would reporttothe newly-established Associate Ad ministratorfor Strategy and Operations. Bureau for Management Multiple Agency- wide management and human capital functions reside in organizational units outside of the Management Bureau. The Bureau for Management oyersees most procurement and program-funded human resources function s, whereas the remainder of human resource functions are housed within the Bureau for Human Capital and Talent Management and the Office of Security is currently a stand-alone organizational unit. The merger of HCTM and SEC with the Management Bureau will proyide for a more simplified operational structure. It will reduce direct reports to the Administrator, increase accountability and direct oyersight, allow for all human capital componentsto reside in a single Bureau, and support a more streamlined security clearance process. The Bureau for Management would report to the newly-establish ed Associate Ad ministratorfor Strategy and Operation s. Bureau for Asia The countries of Afgh anistan and Pakistan were formerly part of Bureau forAsia until 2010, when the preyiousAdministration established the separatethe Office ofAfghanistan and Pakistan Affairs to address the tremendous pace of operations in the two countries. Designed as an interim solution intended to help administer the ramping up of deyelopment programs in Afghanistan and Pakistan, the current maturation of those programs, and the necessity for improyed regional coordination and effectiyeness to carry out the President?s South Asia Strategy, warrant the reintegration of OAPA into a single Asia-wide regional Bureau. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" Reorganizing the US. Office of Personnel Management U.S. Of?ce ofPersonnei Management Summaryr of Proposal: This proposal would reorganize the U.S. Office of Personnel Management and the process bv which Federal personnel management and operations functions are coordinated. Specific allv, the proposal would move policvfunction intothe Executive Office of the President and elevate its core strategic mission, while devolving certain operational activities, including the deliverv of various fee-for?service human resources and IT services, to other Federal entities better positioned to provide transaction processing services that meet 21SL Centurv needs. THE CHALLENGE Fortv vears ago, OPM was established in statute bv the Civil Service Reform Act of 19T8, and wastasked with aiding and advising the President on actions to promote an efficient civil service. This was the last time the Government implemented broad civil service reform. The General Schedule Federal job classification structure dates back to 1949. Todav, there is broad acknowledgment that the Federal emplovment svstem is archaic in manvr significant respects, and does not reflect the realities ofthe contemporarv workforce. Evidence of this recognition is the creation bv the Congress in recent vears of a varietv of alternative personnel svstems. These svstems addressed problems impacting specific agencies as thev arose. This has. postponed a broader overhaul of the core personnel svstem, and left a fragmented personnel structure - roughlv a third of which now lies outside the purview of 0 PM. Meanwhile, the vast majoritv of workforce and budget are currentlv dedicated to operational activities?with a small minoritv dedicated to policv and oversight activities related to, for example, hiring, performance management, compensation, merit svstem compliance, and labor relations. On a reimbursable basis, OPM performshuman resources-related services, includingbackground investigations and information technologyr services, for other Federal agencies. In recent vears, several high-profile incidents con cerningth ese services?in clu ding a majorinformation securitv breach?have created major distractionsfor OPM leadershipthat have nothingto do with the core personnel functionsthat are primarv charge. The 2.1 million-person civilian workforce represents one ofthe Federal Government?s largest and most impactful investments. Like anv large corporation, the Government is onlyr as effective as its people. Yet the Government Accountabilitv Office has. designated strategic human capital management as a high-risk area since 2001, becausethe Federal Government does not do an effectivejob attracting, managing, and retaining a skilled workforce. An extensive literature review documents these failings. The causes are varied, but addressing them effectiver requires an optimized management structure that is centrallv situated, empowered to view the Federal workforce holisticallv, and free to focus on core strategic and policv concerns. REFDRM PLAHANDREDRGANIEATIDN RECUMMENDATIDNS THE OPPORTUNITY This proposal is an opportunity to eleyate the Federal workforce management function and maximize the operational efficiency of human capital seryices. The ciyil seryice system is oyerdue for an oyerhaul, and that oyerhaul would best be implemented under a new management stru ctureth at is more focused on core priorities and that has not been molded around the existing, archaic framework of ciyil seryice rules and regulations. Once complete, a transition into the EOP could create a more streamlined personnel management unit that is less expensiyeto operate. Such a unit would also support centralized coordination ofall personnel policies for Fed eral employees, elimin atingthe confu sing matrix ofwho does what today, as well as seyeral key gaps in policy that are inhibiting the streamlining of mission support seryices. Centralizing human capital operational seryices at the General Seryices Administration should proyide economies of scale and significant cost-ayoidance based on reductions in contract and IT duplication as well as increased data sharing and ayailability. PROPOSING AND WHY THE RIGHT THING TO DO Current 0PM Structure 0PM currently comprises seyen major organizational units: Employee Seryices, Retirement Seryices, ealth care 8; Insurance, Merit System Accou ntability 8; Co mplian ce, Human Re sources Solutions, Suitability Executiye Agent, and the National Background Inyestigations Bureau. In general, current 0PM actiyities and functions fall into two categories: human resources policy and compliance and human resources seryice deliyery and implementation. This proposal would eleyate human resources policy functions into the EOP, and proyide it with a whole- of-Goyernment mandate that 0PM currently lacks. To driye real reform,the Federal Goyernment needsto eleyate Federal workforce policy so that eyidence and leading practice can driye strategic management ofthe workforce. In particular, reform requires an agency steadfastly committed to: - A holistic yiew of the Federal workforce; - Assessment of innoyations and contextual changes that driye the future of work; - Data-driyen policy deyelopment; - Data analytics and strategic workforce management; - Agency policy adyice and change management assistance; and - Identification and adyancement of leading practice through out the Federal Goyernment. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" Structure onci Function oitne EDP Dfiice Today, Federal human resources policy is fragmented, making it difficult to assess Goyemment-wide human capital challenges. This EOP office would centralize policy decisions in areas such as employee compensation; workforce supply and demand; identification offuture workforce skill needs; leadership and talent management; and other important issues. The office would work to rationalize policies, procedures, and incentiyes across the Goyemment, while minimizing unintended consequences. This new office would also modernize the approach to human resources policy, with a core focus on: strategy and innoyation; workforce and mission achieyement; seniortalent and leadership management; and, total compensation and employee performance. Each of these units would be informed by data analytics and human resources standard s. Achieying this yision will require realignment of current functions, some of which would be transferred and realigned to a seryice deliyery operational entity. The new entity would be formed from a combination of UP M?s operationaliseryice units with the existing offices of GSA, to be reconstituted as the ?Goyemment Seryices Agency.? This combination would yield an organization with a focus on proyiding Goyemment-wide seryices and solutions associated with the full Federal employee lifecycle. Immediately below is a summary of how current 0PM functions could be realigned underthis proposal. While the precise transition plan for all units has not been finalized, organizational units in the EDP of?ce would subsume and expand upon the current 0PM human capital policy-based actiyities under this proposal. At the end of this paper, there is an existing 0PM organizational chart and a notional organizational chart for the office to be housed within the EDP. Current 0PM Organizational Units Function Type Receiving Agen ty Employee Seryices Policy EDP foice Retirement Seryices Employee Seryicing ?Goyemment Seryices Agency? Healthcareatlnsurance Agency Seryicing ?Goyemment SeryicesAgency? National Background lnyestigations Bureau Agency Seryicing Department of Defense Human Resources Solutions Agency Seryicing ?Goyemment Seryices Agency? Note: The placement of other DPM offices and functions will be determined at a later date. Tronsier ofOperotionoi Functions to Pen omeo? Government Services Agency current human resources seryice deliyery and implementation functions would be transferred. A strong nexus would be retained, howeyer, between these operational actiyities and the personnel management office to be housed in the E0 P, which would be responsible for ensuring that human resources IT operations and seryices eyolye in a manner consistent with changes in workforce policy. Centralizing human resources operational functions in a single entity within the newly renamed Goyemment Seryices Agency would integrate the transactional and employee-centric, seryice-based functions currently performed by 0PM with existing GSA operations, including Federal employee payroll and trayel. With end-to-end seryices around the Federal employee lifecycle maintained in one place, considerable operational efficiencies should be attained. Currently, these seryices are stoye-piped, REFURM PLANANDREDRGANIEATIDN RECDMMENDATIUNS 53 forcingburdensome processes on managers and emplovees. It is worth notingthat services are rated last among all mission support services bv Federal managers. To achieve the vision outlined in this proposal, the con solid ated service agencv would house those functions currentlv performed bv OPivl?s Human Resources Solutions, and Healthcare 8.: Insurance organizational units. It could also potentiallv carrv out OPivl?s responsibilities for retirement processing and servicing, but other entities, such as the Department of the Treasurv, would also be consid ered. As also discussed in this Volu me, activities cu rrentlv performed bv the National Background Investigations Bureau would be consolidated with similar activities mandated to the Department of Defense. AdditionoiAnoiysis and Background More than 80 percent of funding and staff is dedicated to meeting the Agencv?s service-based responsibilities. These include important functions, such as administering the Federal Emplovees Health Benefits Program for more than 3.2 million active Federal emplovees, retirees, and theirfamilies; administeringthe Civil Service Retirement Svstem and the Federal Emplovees Retirement Svstem for over 5.3 million active Federal emplovees, annuitants, and survivors; processingmore than two million background investigations each year for over 100 Federal agencies; and managing USAJOBS, which receives over 85 million searches each month from 15 million site visitors. While these functions are vital, their scope and scale are such that thev necessarilv distract agencv leadership?s attention from strategic human capital management and stewardship of an efficient civil service structure. OPivl?s greatest visibilitv in recent vears has stemmed from high profile challenges within these operational and service-based activities. In 2014, a data breach into OPivl?s svstems exposed personallv identifiable information for over 20 million individuals, including Federal emplovees and theirfamilies,job applicants, and contractors, creating one ofthe biggest nation al securitv threats in decades and requiringthe Federal Govern mentto pav for credit monitoring for 10 vears. In 200?, 0PM issued a stop work order marking its fourth consecutive failure to automate its retirement processingfunction. Since then, 0PM has not attempted this effort again, and instead relies on manual reviews. From 2014 to todav, 0PM has increased prices on background investigations bv more than 40 percent, and the timeline for processing background investigations has tripled, fu rther straining agencv budgets and the abilitvtofill critical position s. Currentlv, 0PM is working to reduce an inventorvr that has grown to approximatelv cases. There is no significant benefit obtained from havingthese operational fee-based functions housed within the same oversees the overarching policies. Further, it is in no wav apparent that 0PM has a comparative advantage relative to other Federal entities in the management of information tech nologv or contractual services. Also, in selling human resources and IT products to those agencies whose personnel practices it monitors, 0PM is in a position that can lend the appearance of a conflict of interest. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" Achieving the End-Stote Iiision Achieving this vision may entail both legislation and administrative actions to transfer an dior delegate certain basic 0PM functions, resources, and authorities. This includes moving peripheral functions to other agencies, and moving core policy units into the EOP. There would also be a change-management and capacity-building process, led by the Director of the Office of Management and Budget and the Director totransform and elevatethe organization. Fully and effectively achievingthe end-state vision presented here would necessarily require a partnership with the Congress, includingthe granting of statutory authorities as necessary. Current 0PM Structure ?fth-en: 3?s ofths- General Coma? ?x?s I may . lxgislrdi'lne, all-II - ?l?ee {FIT-ear ismirv I Ot?oo of?le - 0111123 I Of?ce of?ntegy all-:1. Innovation I Cili'l'oo o-l' Dlm?arr-I I (limos: - Flt-min]; and Li?o-lity Analysis - F?tili??. I Fodenil Prevailing Hole Adam-13' Mumgement Commhi'e? . Equal. Employmull.? - Edi-Mati- Din?'lvri. {.?Iniel' innit-I1 I Ji?mquecec Cellini! Ul'l?mm Comm-ll . Ci?'ion: and. Dbaalvanlag-m? I Ly, Elli Ia'lbili Ly. tin-cl. 1'1- Ii .- t: ed tis?' E13 Hume-sag gnu-opt Jr; Rh: on "1,3 no on lieu-remix; 01131:: or I'll: lnqwulor Umml fill itn ii?nlpluy-cr. I'tuirtmull Iluhilmrc i'rt'nit Symon: E?t?ll iv'E .?icn'ime Sm?iccs Inn-?mun: nematmil Ilf Il?gmiuid Rci?lr?a agent I'm-yams and Cronin-lien? levee maria-u; Ere-lull ions {w . .-I .i . Puller? ?Pays-ml '11 a imam Wm 'vanag- niglus' mm b-?ril?r rar Issue: Meantime 4" mulls-nature: Invention}: as den-11in LW Ell? md Elna-oft nil-anew onl Dmlomaml a. 1. . I, .. 1. Fodmll In weal "mm" and Operations Empm?g (.uu Ham ?lilmn? I Hug-u 5: II _21n:_l Ema-Pym at?! a?u?cnl -. ?1 i- - 1 a [Jpnul in?: Muhil t? HIICW I: -. [anal-El: :rlsl r. I - MHEHCS - . i .Ii: mum IEREIHI Inn-I19; rhrdurll :r L. .- Emi??_ .- 1' 12m: ?a I {Hulou?llL ian ?5311an and +?fldm HIIEI Hiynnul? law ll-Hl! l?li Illullniillil LI- Pugh.? 'u?J r?u?y -- -- - .- -- Tulcnl ?l'TtLilIu-l and ?ll-muf?n ml +?nd Ul??r Asauaclmlue LL Shapingpumping lunatic-111mm; ancll'iu?llc? Solutions REFDRM PLAHANDREDRGANIEATIDH RECUMMENDATIDNS a A New Approach is Needed to Transform the Workforce Status. Gluc- Focos on administering and protecting. Titlire if: excluding- other 13'3 of workforce Responsibilities for developing policy and selling services to agencies are under same organisation Federal personnel po] 5 c3: and strategy is onlv management lunctioir locrttesi outside the Executive- flier-s {if ll 11:1 President. unrao Resource it is held back Irv legs qr IT teros and customised to Federal standards. Future State Vision Focus on workforce strategy for whole of govern I'llE nt Responsibilities for policy,r and strategy development would be separated?lroro service offerings to agencies Integrate for and strategy into the Executive lL'Jllice DI the to: uLIsrsr I nation a like IT, proeu cement financial management Human Resource IT is movcd ioto cloud architecture and aligned 1rrith private sector standards through efle ctiive policy oversight and Enable effective strategy and workforce alignment spreading adoption of leading practices. New Organizations" Structure Organizational Roles Strategy Innovation: Custom er a Enrol-eves Experience Total ?aninr Tailen?r Achievement a Leadership 3. Emplovee Perlonne nee Human Resources standards A Data Analytics DELIVERING GOVERNMENT SDLUTIDNS IN THE 21?" Firm for the Future of Government's Work: mission NEE-HE. EflIlEEl ERNIE. learning enl?. 'arirl indusion- Greater: Culture Focused on Mission Ellalirranr and Fo?oncla'nce: customers sereice indicators, organizational ties one parlorrns rice emolovea engagement indicators. Focus on the Top-career Loaders: Iden'lilv Lop SES- and develop leadership and exemlive competencies and strategies lor preparing managers and leach-s Morderrnina ompanrsaliun ?I-o Recruit anal Retain: pay, Luann-sillsI l, leewa-I disabililv based on skills nee-tied and marital dynamics. Align Federal HR standards to Private Sector: Enable agencies to leverage private sector solutions wherever possible. Use "Data" to lolorm. Etrarsgv curl Actions: perform comparative analysis interceil'eclemal to (internment incluriingmarlsel reseFIclTL iris-rltilg,r leading] practices and leopards Ior ascoctes Consolidation of Federal Veterans Cemeteries Department of Veterans Affairs Summary of Proposal: This proposal would transfer responsibilityfor perpetu al care and operation of select military and veterans cemeteries located on Department of Defense installations to the Department of 1veterans Affairs National Cemetery Administration. This transfer would increase efficiency, limit mission overlap, and ensure that these cemeteries are maintained to national shrine standardsto continue the recognition of service of those interred therein. THE CHALLENGE Currently, mission overlap exists in th oversight and operations of Fed eral military an veteran cemeteries. Specifically, VA maintains and operates 135 national cemeteries and 33 cemeterial installations, DOD is responsible for approximately-43 cemeteries located on active and inactive in stallations,the Department of the InterioriDOl] is respon siblefor 14 situated within national parks, and the Department of Agriculture is responsible for one. In most cases, this mission overlap is inconsequential as the responsible agency has adequate infrastructure and support in place at each location, making each a suitable caretaker. However, at some facilities responsible agencies no longer maintain an active presence, presenting unique challenges for efficient oversight and warranting reconsideration ofthe status quo. This proposal recognizes an opportunity to transfer responsibility for the operation and care of select post cemeteries, 10 ofwhich are located on inactive facilitiesformerly occupied by the Department ofthe Army {Army} and one on a re-missioned open garrison {Fort Devens], to 1 v'Abyleveragingthe expertise and capabilities of the National Cemetery Administration This consolidation will enable the Army to utilize Operations and Maintenance resou rcesfor other critical mission needs while reducingduplication of effort across Government. THE OPPORTUNITY For several decades, DOD has maintained ?post cemeteries" on inactive bases shuttered as a result of various closure and re-missioning decisions specifically, 10 former active Armyfacilities. In these cases, lack of an active Army presence makes efficient operations and maintenance challenging. The National Cemetery Administration established by the Congress in the National Cemeteries Act of 1973 and one ofthe three administrations that make up operates a large network of veterans cemeteries, making it better suited forthis mission. In addition, one open garrison Fort Devens, Massachusetts has been re-missioned as an Army Reserve Forces TrainingArea and is included in this proposal. In addition to serving as the interfacefor the public in the delivery of VA burial benefits, NCA operates and maintains the network of national cemeteries to ?national shrine? standard s. These standards include headstone realignment, irrigation and grounds improvements, and other facility upgrades to improve accessibility and visitors? experience. performance is substantiated by consistently high customer satisfaction ratings from veterans, family members, and visitors. Consolidation will alleviate duplicative mission requirements and entrust operational control to an agency with more expertise in running cemeteries. This will allow more burial options for veterans and dependents at some of the transferred cemeteries bytaking advantage of operational experience in maximizing the use of available space. REFDRM PLAHANDREDRGANIEATIDN RECUMMENDATIDNS WHAT PROPOSING AND WHY THE RIGHT THING TO DO VA, DOD, DUI, and USDA maintain approximately 226 Federal cemeteries where the remains of veterans and various eras and conflicts are interred. The NCA is responsible for 135 national cemeteries and 33 other cemeterial installations. The remaining 58 cemeteries fall under the collective responsibility of DOD, DUI, and USDA as listed below. Not listed are numerous other State andfor tribal veterans cemeteries. Further, this inventory does not include American Battle Monuments Commission installations as nearly all are overseas and currently maintained to guidelines commensurate with ?national sh rine? standards. Department of th Army Department of th {past cemeteries proposed Department of the Army Interior National Park for transfer) Service - vancouver Barracks Cemetery, WA Arlington NationalCemetery, - PA - Post Cemetery, AL LLB. Boldier?s and Ainnen?s Home -Antietam, MD - Fort McClellan Prisoner ofWar National Cemetery,Washington, DC - Battle ground, vA Cemetery, AL Aberdeen Proving Ground, MD Fredericksburg, VA - Fort Lawton Cemetery, WA Fort Benning, GA - Fort Douglas Cemetery, Fort Bragg, NC Poplar Grove, ?v'A - FortWorden Cemetery, WA Carlisle Barracks, PA Fort Donelson, TN - FortMissoula Cemetery, MT Edgewood Arsenal, MD -AndrewJohnson, TN - Fort Btevens Cemetery, CIR -FortHuachuca,AZ Btones River, TN - Benicia Post Cemetery, CA Fort Knox, KT Bhiloh, TN - Fort Sheridan Cemetery, IL Fort Leonard Wood, MCI Andersonville, GA - Fort Devens Cemetery, MA {active} Joint Base Lewis-McChord, WA Vicksburg, MB Meade, MD - Chalmette, LA Presidio of Monterey, CA Custer, MT Fort Riley, KB Fort Bill, CIK LLB. MilitaryAcademy, N?f WatervlietArsenal, N?f Fort Campbell PCIW Cemetery, K?r' Fort Drum PCIW Cemetery, N?i Fort Gordon German PCIW Cemetery, GA Bchofield Barracks, HI Department of the Air Force Department of the Navy Department of Agricultu re - Fort George Wright Cemetery, - Maine Memorial, FL - Fort Reno CemeternyCIW Annex, CIK Fairchild Air Force Base, WA - Captain Ted Conaway Memorial Navy - LLB. Air Force Academy, Cemetery, - F.E. Warren AFB, WY - LLB. Naval Cemetery, Great Lakes - Fort Crooka?uttAFB Cemetery, NE Naval Base, IL volk Field, Camp Douglas, WI - Cuzco Beach Naval Cemetery, LLB. Naval Base Guantanamo Bay, Cuba - LLB. NavalAcademy, MD DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY Transfer of the 11 cemeteries italicized above from Armv to NCA makes progress towards several Administration priorities, including, but not limited to: reducing redundancies and mission duplication across Government; streamlining operations and achieving efficiencies; increasing access to burial options for veterans and eligible dependents; and, providing veterans with benefits thev have earned in service to the Nation. This consolidation will constitute the largest transfer of cemeteries to VA since the National Cemeteries Act of 19?3 93-43] established the svstem in place todav. The proposal is limited to base cemeteries located on in stallationsth at no longer maintain an active personnel presence, as well as one re-missioned base {Fort Deven s] where transfer would realize efficiencies. Alth ou gh th effort is not conceived as a pilot, it will enable 1v?Ato develop and execute an implementation plan that could also inform future transfers. This proposal would not transfer cemeteries on other active DOD installations or those located within DCII national parks where support infrastructure and presence exists. Transferring these facilities to NCA is the optimal good-government strategv, and is consistent with the National Cemeteries Act of 1913. NCA leads the wav in providing a varietv of world-class burial and memorial benefits for veterans and their families and has received the highest customer satisfaction rating amongthe public and private sector from the American Custom er Satisfaction Index for six consecutive vears. Upon transfer, thesefacilities will be maintained tothe same high standards as other NCA cemeteries, which have garnered public praise. VA does anticipate that each of the 11 transferred cemeteries will need to undergo some minor infrastructure improvements roads, irrigation and drainage, marker alignment, turf renovation, etc.]I. REFDRM PLANANDREDRGANIEATIDN RECUMMENDATIDNS Reorganizing Economic Statistical Agencies Departments of Commerce ono' Lobor Summary of Proposal: The U.S. Statistical System is composed of 13 principal statistical agencies across the Federal Goyemment.Three of these agen cies?the U.S. Census Bureau {Censu s],the Bureau of Economic Analysis and the Bureau of Labor Statistics {BLSI?account for 53 percent ofthe System?s annual budget of $2.26 billion, and sh are unique synergies in their collection of economic and demographic data and analysis of key national indicators. Reorganizing these agencies under the Department of Commerce would increase cost-effectiyeness and improye data quality, while simultaneously reducing respondent burden on businesses and the public. THE CHALLENGE Census, BEA, and BLS are theth ree statistical agencies responsible for the yast majority of the economic and demographic statistics produced by the Federal Goyernment. Howeyer, as separate agencies across multiple departments, current duplications in data collection effortsyield in creased burdens on businesses and the public. For example, Census and BLS separately collect data on, and maintain different lists of, business establishments to support their statistical actiyities. Such duplication creates unnecessary burden on respondents,which only impedes the timely production and analysis ofyital U.S.data thatthe public rely on to make eyeryday household, business, and policy decisions. Further, because these three agencies already work in close coordination with each other, their reorganization under one department would bring about efficiencies through the integration of not only data products, but staff seryices and IT systems, achieying cost sayings while improying data quality and security. Reorganizin gthese agencies nd er th direction of Und ersecretary for Economic Affairs will proyide the policy and management oyersight necessary to coordinate and streamlinethe production of Federal economic statistics. To achieye this goal, planning would begin in 2019 with implementation in 2020, after the peak operations ofthe 202D Decennial Census are complete. THE OPPORTUNITY This proposal would support three key opportunities for improyement: - Reorganizing Census, BEA, and BLS within DOC would reduce redundancy by utilizing shared infrastructure including modernized IT and human resource systems resulting in more efficient collection and production of national data. - Integrating suryey operations, such as suryey sample designs and respondent lists, would reduce respondent burdens for businesses and the public by decreasing redundant suryey questions and consolidating existing su ryeys. - Reorganization could also improye data quality by streamlining the approaches used to measure U.S. economic statistics, including capital in yestment, productiyity, trade, and seryice industries. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY WHAT PROPOSING AND WHY THE RIGHT THING TO DO Reorganizing Census, BEA, and BLS is logical because all three produce national-level economic and demographic indicators whose value extends far bevond the scope of their respective departments and programs. There is general agreement within the statistical communitv, the Administration, and among private stakeholders that consolidating these three agencies would reduce public burden and end duplicative practices, while simultaneouslv enabling a more coherent approach to developing the Nation?s prin cipal statistics. Numerou presidential, con gressional, and other studies have recommended consolidation and coordination. In addition, many,?r other nations with high statistical capacitv, including Canada, the U.K., Australia, and New Zealand, have a much greater degree of centralization of statistical fun ctionsthan the United States. While there is a sound case for reorganization, the Administration acknowledges that there are risks. Maintainingtru st in the accuracv, objectivitv, reliabilitv, and integritv of Census, BEA, and BLS products is essential to meeting the needs of a wide range of end users and other stakeholders. The reorganization will provide the opportunitvto move to an open-source environment that will improve transparencyr and confidence in statistical products. Reorganizingthese agencies under Under Secretarv for Economic Affairs provides the best opportunitv to preserve the qualitv and integritv of these products while also creating the greatest opportunitv to improve the efficiencv of the agencies. The Under Secretaryr alreadv leads oversight activities of both BEA and the Census Bureau on high prioritv management, budget, emplovment, and risk management issues; advises Government officials on economic policv; and participates in interagencv policv councils. Folding BLS into DOC would onlv strengthen the Under Secretarv?s abilitvr to coordinate and integrate current work with the priorities and requirements of the Department and other Government entities. To mitigate anv possibilityr of impacts to high prioritv programs, such as the decennial census, reorganization would not occuruntil late 2020, after nationwide field op erationsfor the 2020 Census have been completed. The Administration will continue to studvr this proposal to ensure that a combined agencv will not be less accountable or transparent to the American people than the current division of responsibilityr among multiple agencies. Reorganization would focus on the following goals: achieving increases in operational efficiencies; reductions in respondent burden; enhancements in privacv protections; and improvements in data qualitv and availabilitv. Achieving increases in Dperotionoi Efficiencies The integration ofdata products and sharing ofad min istrative services and IT svstems could vield greater economies of scale, resulting in substantial increases in operational efficiencies. For example, headquarters lease is ending in Fiscal ?iear 2022. Rather than develop and finalize independent plans for relocation, BLS will explore options with Census and leverage office space as well as unique assets necessarvto complete theirmission, such as lock-up production facilities. In addition, Census has invested heavilv in its IT infrastructure ahead ofthe 2020 Census and intendsto expand that investment to the rest of the Bureau following its completion. Starting to plan for consolidation now would allow Census to integrate the operational requirements of BLS and BEA so that the planned expansion oftheir infrastructure could address the needs of all three agencies. This would also provide the most cost- effective opportunitv to modernize older svstems at BLS and BEA. REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS Reductions in Respondent Burden The potential to consolidate duplicative survev data collections and eliminate some collections and survev questions would produce tangible efficiencies for the public and the Federal Government. For example, BLS and Census currentlv conduct separate survevs on U.S. businesses and their activities, and because current law does not permit consolidation ofthe lists of business establishments, BLS and Census maintain separate lists of bu siness establishm ents to support statistical activities. Consolid ation ofthese agencies could allow for combining these survevs into a single data collection. Reorganizing these agencies within one department would also provide them with access to existing administrative data in a more efficient manner, which could lead to the elimination of certain collections while producing higher qualitv and more timelv data. For example, current agreements between outside partners and Census, BEA, or BLS onlv permit the agencv in the agreementto use the administrative data. Through a reorganization, the administrative data agreements with outside partners could be leveraged for use across a larger suite of programs and would reduce public burden and costs. nnon cements in Privo cy Protections Privacv risks and concerns over the safeguard of information could also be optimallv mitigated bv consolidating these agencies. The proliferation of information about people and businesses online increases the risk of unintended respondent re-identification. Currentlv, BLS and Census each release nu merousbusin ess data products, includingd ata on emplovment an wages ofindustries an occupations, values of sales and inventories, and prices received bv producers and paid bv consumers, with each release adding incremental risk tothis re-identification issue. Current law does not permit consolidation of the administrative source data used bv each agencv, and each set of data products provide unique function alitv such that data users would be harmed bv ceasing one ofthe products. Consolidatingthese prod ucts while maintain in gthe best features ofboth could reduce privacvrisks while ensuring data users? needs are still met. Further, housingthese agencies at DOC would increase collaboration and allow each agencv to seamlesslv develop, applv, and promulgate disclosure avoidance techniques across the suite of statistical data products. improvements in Doto Quoiity on Consolidation would also allow each of the three agencies to access the source data utilized bv the agencies in constructing their statistics. This could result in improvements to existing products as well as the production of new statistical products. If all source data resided in a single Department more granular data would be made available for input into kev economic indicators, and could improve the timeliness of their releases. For example, GDP estimates could see reductions to the size of DP revisions, and the Producer Price Index - released bv BLS using Census inputs - could incorporate more current data and economic patterns in its estimates. Reorganization would also allow for production of new statistical estimates that would have been difficult to produce before, such as fullv integrated statistics on goods and services, trade, and inbound and outbound foreign direct investment. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" CENTURY Consolidation of the Department of Energy?s Applied Energy Offices and Mission Refocus Department of Energy Summary of Proposal: This proposal would con solidate the Department of Energy?s applied energy programs into a new Office of Energy Inn oyation in ord erto maximizethe benefits of energy research and deyelopment and to enable quicker adaptation to the Nation?s changing energy technology needs. It would also establish a parallel Office of Energy Resources and Economic Strategy, which would focus on strategic deliyery ofsolutions that support U.S. energy dominance in access to resources and infrastructure. Finally, it would maintain th Office of Cybersecurity, Energy Security, and Emergency Response, which would protect energy infrastructure from increasingly sophisticated threats and en sure energy restoration following disasters. THE CHALLENGE core applied energy research and deyelopment offices are currently organized by major energy technology or primary energy source, such as nuclear, fossil, and renewables. This structure emphasizes siloed,fuel type-driyen that can hinderthe deyelopment of integrated solution s, inhibit effectiye collaboration, and impede the best possible research outcomes. current, entrenched applied energy program organizational structure parallels the stakeholder community, and thus the programs can be influenced by the strongly held beliefs of the technology and fuel champions of their respectiye areas, which haye biases that are often counterto identifying solutions that are good for the Nation as a whole. DOE also maintains a separate program called the Adyanced Research Projects Agency-Energy that conducts applied research. While the program features positiye aspects, such as coordination with industry and cross-cutting research, it makes little strategic sense that this entity exists independent of main applied research programs. Achieying energy dominance requires an integrated national energy strategy and scarce resources must be directed to address national concerns. This proposal would consolidate applied energy research programs into a single Office of Energy Innoyation that would take a holistic yiew of energy innoyation to ensure Federal research keeps pace with the changing needs of the Nation?s energy system while maximizing the yalue to the taxpayer. In parallel, an Office of Energy Resources and Economic Strategy would be established to capture the Department?s expertise in monitoring, analyzing, and administeringthe Nation ?s physical energy assets and the Office of Cybersecu rity, Energy Security, and Emergency Response establish ed in 2018 would be maintained to address to U.S. energy security from cyber, natural, or other sources. REFURM PLAHANDREDRGANIEATIDH RECDMMENDATIUNS 53 THE OPPORTUNITY Organizing applied energv research under one unified office has the potential to reduce a practice of picking energv tech nologv winners and losers and pittingfu el tvpes again st one an otherfor Government fundingand attention. Breaking down the rooted silos could enable greaterflexibilitv and efficiencyr in decision-making and enh ance the Department?s abilitvto set and achieve big goals. Revitalizing applied energv in this manner also provides the opportunitv to integrate the positive attributes of ARPA-E into core energv research rather than it being a whollv independent program. IvIanvr fields of research, such as materials, energyr storage, and the overall enhancement ofthe grid?s stabilitvr and baseload capabilities, span todav?s applied energv offices and would especiallv benefit from a fuel and technologv-neutral program structure. With a unified Office of Energv Innovation, applied energvr research could be directed to achieving nationallv significant outcomes and breakthroughs, rather than incremental changes for individual fuel tvpes that mayr have limited if anyr strategic connection to one another. In addition, maintaining the Office of vaersecuritv, Energyr Securitv, and Emergencv Response and establishing the Office of Energv Resources and Economic Strategv in parallel with the new Office of En ergvr Inn ovation ensu resth at kev missions of the Department are adequatelv addressed and prioritized. PROPOSING AND THE RIGHT THING TO DO Under this proposal, DOE would create a single Office of En ergv Innovation to tackle all applied to furth er the Nation?s en ergv dominance. The merger would include both the operational components and programmatic activities of each applied energv office to maximize savings. The new office would emphasize sector and svstem-level outcomes and ensure a robust, svstemic focus on earlv-stage where the Federal role is strongest. The proposal would also integrate into the blended organization some positive elements of model, such as coord in ation with in du and abilitv to incorporate cross-cutting research into program outcomes. To minimize the potential for simplv creating new silos with different foci and to move awav from the risk-aversetendencies ofthe long-standingprograms, the new office would include an en ergvtechnologvr and fuel source-agnostic front-end program that invests in revolutionizing energy,?r concepts, materials, and processes, as well as incremental improvements in existing technologies across energv sectors. It would also in corporate a mechanism to translate resultsto either longer-term integrated R840 programs within DOE or to the private sector. Projects could be initiallyr short-term with defined milestones and priorityr could be given to crosscuttingtechnologies or solutions that demonstrate a multi-dimensional approach or that otherwise maximize public benefit. Rather than presupposing the fraction of the budget necessarv for certain energv technologies or sources, the office would undertake a broader review of energvr system needs and opportunities. All would be required to compete for resources in the new environment, which would drive the best projectsto the top of the list for limited resources, weeding out activities that are less efficient, duplicative, and do not adequatelv considerthe crosscutting and diverse nature ofthe Nation?s energvr requirements. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" Bv elevating decision-makingto a system-wide, cross-sectorlevel an implementing multi-disciplinarv, multi-dimensional programs, this proposal would not onlv make effective use of Federal funding but would also facilitate new technological advancements, some of which potentiallv would never be envisioned or achieved in a siloed environment. Bv establishing a parallel Office of En ergv Resources and Economic Strategv, the Department?s expertise in monitoring, analvzing, and administeringthe Nation?s phvsical en ergv assets capacityr can be enhanced and streamlined to more effectivelv enable en ergvr dominance. Through improved oversight and solution development for both the phvsical and market aspects of the nation?s energv svstem, this office would promote multi-dim ensional decision-making to better support resiliencv, infrastructure improvement, and economic growth. Further, we cannot ignore to U.S. energv securityr whether it be from cvber, natural, or other sources. To address this important issue, DOE established the Office of vaersecuritv, Energv Secu ritv, and Em ergen cv Response in 2018. In this proposal, CESER would be maintained to address this critical mission. While separate offices, both ERES and CESER would be tied to the Office of Energv Innovation and the three would work svnergisticallv to achieve the svstem-wide, interdisciplinarv vision and strategv. This proposal seeks to take the action needed to break down existing stovepipes in the applied energv landscape and reap the benefits ofthat fundamental change, while protecting and enhancing other kev energv mission priorities within the Department. REFDRM PLAHANDREDRGANIEATIDN RECUMMENDATIDNS Divesting Federal Transmission Assets Department of Energy and Tennessee Voiiey Authority Summary of Proposal: This proposal would sell the transmission assets owned and operated by the Tennessee Valley Authority and the Power Marketing Administrations within the Department of Energy, includingthose of Southwestern Power Administration, Western Area Power Administration, and Bonneville Power Administration. Eliminating or reducing the Federal Govemment?s role in owning and operatingtransmission assets, and increasingthe private sector?s role, would encourage a more ef?cient allocation of economic resources and mitigate unnecessary risk to taxpayers. THE CHALLENGE The Federal Government owns, operates, and maintains over 50,000 miles of electricity transmission lines and related assets {substations, switchyards, etc.]I. The Federal Government?s role in owning and operating transmission assets creates unnecessary risk fortaxpayers and distorts private markets that are better equipped to carry-out this function. The vast majority of the Nation?s electricity needs are met through for-profit investor-owned utilities. Ownership of transmission assets is best carried out bythe private sector, where there are appropriate market and regulatory incentives. THE OPPORTUNITY Reducing or eliminatingthe Federal Government?s role in transmission infrastructure ownership would encourage a more efficient allocation of economic resources and mitigates risk to taxpayers. The Fiscal Year 2019 Budget estimates that selling Federal transmission assets would result in net budgetary sayings of $9.5 billion, in total, overthe 10-year window. WHAT PROPOSING AND WHY THE RIGHT THING TO DO Fed eral transmission assets accou nt for roughly 14 percent ofthe Nation?s tran smission lin es.l Collectively, Southwestern Power Administration, Western Area Power Administration, and Bonneville Power Administration own, operate, and maintain over 50,000 miles of transmission lines and related assets. By contrast, the vast majority ofthe Nation?s electricity needs are met through for-profit investor owned utilities. The Federal Government?s role in electricity production and marketing dates largely to the New Deal. Since then, the Federal Government has expanded its involvement to include owning and operating electric transmission assets. Today, a strong justification no longer exists for the Federal Government to own and operate these systems.2 The private sector already meets the vast majority of 1IQua clren nia Energy Review, "Transfo rming the Nation?s Electricity System: The econcl Installment ofthe January 2017, p. A-34. 2 See, for example, Congressio nal Budget Office study, ?Should the Fed eral Government Sell Electricity? November 1997, p. 13. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY the Nation?s electricityr needs. Private ownership of transmission assets could result in more efficient operations and capital improvements while reducingthe subsidies {both implicit and explicit] that the Federal Government now provides to the respective regions? ratepavers. Federal transmission infrastructure assets (lines, towers, substations, andfor right of wavs} could be broken the generation assets and sold separatelv, and the private sector andfor State and local entities could carrv out the transmission functions now provided bv TVA and the PMAs. The Federal entities that would result after such sales could contract with other utilities to provide transmission service for the deliverv of Federal powerjust asthe Southeastern PowerAdministration, which does not own transmission lines, alreadv does. The private sector is best suited to own and operate electricityr transmission assets. Private ownership of Federal transmission assets could result in more efficient operation, greater innovation, stronger regulatoryr oversight, and direct andfor greater access to private capital markets. Further, selling these transmission assets could encourage market efficiencv resultingfrom competition and impose market discipline resu ltingfrom both shareholder and greater regulatoryr scrutinv. The sale of Fed eral transmission assets would result in more efficient allocation of econ omic resources and help relieve long-term pressures on the Federal deficit related to future Federal capital investment and spending on transmission. Prior administrations also have recognized the policv erits of divestitu re an have proposed to privatize the Federal electricitv infrastructure a number oftimes. For example, in the FT 1987' Budget, President Reagan proposed privatizing the Piles, stating, ?Utilities are not normallv a Federal responsibilitv." In the FY 1996 Budget, President Clinton also proposed to sell four out offive existing Piles, and successfullv sold the Alaska PowerAdministration in 1996. In the FY 2014 Budget, the Obama Administration announced it was undertaking a strategic review of options for addressing financial challenges at including a possible divestiture of in part or as a whole. REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS Restructure the Postal Service United States Postoi Service Summary of Proposal: This proposal would restructure the United States Postal System to return it to a sustainable business model or prepare it for future conversion from a Government agency into a privately-held corporation. Like many European nations, the United States could privatize its postal operator while maintaining strong regulatory oversight to ensure fair competition and reasonable prices for customers. The President?s Task Force on the United States Postal System will make recommendations on reforms towards this goal in August 2018. THE CHALLENGE When the United States Postal Service was created out of the Post Office Department in 19?0,the Con gress tasked it with bindingthe Nation together through correspondence; half a century later, that role has been increasingly supplanted by less expensive digital alternatives. USPS has extremely high fixed costs as a result of relatively gen erousemployee benefits combined with a universal service obligation that is understood to require mail carriers to visit over 150 million addresses six days per week. Historically, this level of service was supported by a high volume of mail. Despite significant decline in volume in the internet age, the size of the delivery network has continued to grow to meet expectations of the current operating structure. USPS can no longer support the obligations created by its enormous infrastructure and personnel requirements. USPS already has over $100 billion in unfunded liabilities, a substantial capital investment backlog, has posted losses for over a decade, and has no clear path to profitability without reform. A new model that adequately finances USPS while meetingthe needs of rural and urban communities, large mailers, and small businesses is needed. THE OPPORTUNITY A privatized Postal Service would have a substantially lower cost structure, be able to adapt to changing customer needs and make business decisions free from political interference, and have access to private capital markets to fund operational improvements without bu rd eningtaxpayers. The private operation would be in centivized to innovate and improve services to Americans in every community. WHAT PROPOSING AND WH?i?r THE RIGHT THING TO DO Th is proposal would restructure USPS byaligning revenues an expenses to restore a sustainable business model and possibly prepare it for future conversion from a Government agency into a privately-held corporation. Like many European nations, the United States could privatize its postal operator while maintaining strong regulatory oversight to en sure fair competition and reasonable pricesfor customers. A private Postal Service with independence from congressional mandates could more flexibly manage the decline of First-Class mail while continuing to provide needed services to American communities. 53 DELIVERING GUUERNMENT SDLUTIDNS IN THE 11!? CENTURY and Privatization: Considerations for the Future In 201?, USPS experienced fasterthan expected declinesin both First-Class Mail and Marketing Mail. First-Class Mail has declined 40 percent since 2001. Marketing mail is more stable, down only 10 percent since 2001, but is incredibly sensitive to price and market downturns. At the same time, USPS has continued to grow its package delivery business, particularly the last-mile delivery that is relatively cheaper for them because of the huge fixed network they must maintain to support mail delivery. However, the revenues from lower-margin package delivery and other competitive products cannot replace declining revenue from the market-dominant {monopoly} products in the long-run. This year, USPS continued its six-year string of defaults and for the first time defaulted on pen sion-related payments rather than just health benefit prepayments. USP S?s current model is unsustainable. Major changes are needed in how the Postal Service isfinanced and the level of service Americans should expect from their universal service operator. One successful model of Postal reform internationally has been to transition to a model of private management and private or shared ownership. USPS is caught between a mandate to operate like a business but with the expenses and political oversight of a public agency. A private postal operator that delivers mail fewer days per week and to more central locations {not door delivery] would operate at substantially lower costs. A private entity would also have greater ability to adjust product pricing in response to changes in demand or operating costs. Freeing USPS to more fully negotiate pay and benefits ratherthan prescribing participation in costly Federal personnel benefit programs, and allowing it to follow private sector practices in compensation and labor relations, could further reduce costs. Aprivatized Postal Service could be structured like an investor-own ed utility and continueto be regulated by the Postal Regulatory Commission a successor agency, or another Federal regulator such as the Federal Trade Commission, consistent with the existing models ofprivatization in Europe. Even with continued regulation, a privatized Postal Service would be more insulated from politics and more likely to succeed as a financially-viable business. A private entity would also have access to private capital markets to raise money for needed improvements like new vehicles without burdening taxpayers with additional liabilities. USPS privatization through an initial public offering or sale to another entity would require the implementation of significant reforms prior to sale to show a possible path to profitability. Most foreign have been privatized have been profitable atthetime ofthe sale. In contrast, USPS has lost over $65 billion since the last recession and recorded a billion loss last fiscal year. To reach profitability, most international postal operations have gone through significant restructuring, including shrinking their physical and personnel footprints. In some cases, foreign governments have had to absorb legacy retirement liabilities1 in order to prepare a postal operator for sale. The existing unfunded liabilities in retirement programs total more than $100 billion. USPS owes an additional $15 billion to Treasury?s Federal Financing Bank and has further liabilities to the Department of Labor?s Workers Compensation program. According to the Postal Service?s own estimates, the Agency is insolvent, with liabilities exceeding assets by more than $120 billion.2 1 UK NationalAudit Office, The Privatisation of Royal Mail, April 2014, Pg. 15: rti 2 2017 Report on Form 10-K United States Postal Service, Balance Sheet, CSRS and FERS Unfunded Retirement Benefits, and Funded Status REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS Forthcoming Recommendotions by the Tosk Force on the UniteciStotes PostoiSystem To address these major issues and identifv solutions, possiblvin cluding private ownership, the President as issued Executive 0rd er 13829: Task Force on the United States Postal Svstem. TheTask Force will conduct a thorough evaluation ofthe operations and finances ofthe Postal Service and make recommendations for reform consistent with this reorganization proposal. The Task Force will examine: 1. The expansion and pricing of the package delivery market and the role in competitive markets; 2. The decline in mail volume and itsimplicationsfor USPS self-financing and the USPS monopolv over letter deliverv and mailboxes; 3. The definition ofthe "universal service obligation? in light of changes in tech nologv, e- commerce, marketing practices, and custom er needs; 4. The USPS role in the US. economv and in rural areas, communities, and smalltowns; and 5. The state ofthe USPS business model, workforce, operations, costs, and pricing. The recommendations will include administrative and legislative reforms to the United States postal svstem that promote our Nation?s commerce and communication without shifting additional costs to taxpavers. The report will be available bv August 10, 2018. DELIVERING GDUERNMEHT SDLUTIDNS IN THE 215" CENTURY DOT Mission Adjustments Department of Transportation Summaryr of Proposal: This proposal would reorganize the Department ofTransportation to better align the agency?s core missions and programmatic responsibilities, reduce transportation programfragmentation acrossthe Government, and improve outcomes. The proposal would spin-off Federal responsibilitvfor operating air traffic control services and locks along the Saint Lawrence Seawav, integrate into DOT certain coastal and inland waterwavs commercial navigation activities and transportation securitv programs, and reassess the structure and responsibilities of Office ofthe Secretarv. THE CHALLENGE While DOT is not in need ofwholesale reorganization,the Department does administer several programs that do not fit neatlvr within its core missions of financial assistance and safetv oversight. The most significant misalignment is where DOT still has operational responsibilities, principallv the Federal Aviation Administration?s air traffic control services, and to a much smaller degree, the Saint Lawrence Seawav. DOT also administers two defense-related sealift programs that are outside of its core missions. In addition, there is unnecessarv fragmentation in transportation programs across the Executive Branch. For example, the U.S. Armv Corps of Engineers {Corps} is responsible for coastal and inland waterwavs navigation, while the Department of Homeland Securitv{DHS] manages certain surface transportation securitvr programs. This proposal addresses these challenges. The proposal would spin off airtraffic control services and the Saint Lawrence Seawav from the Government; transfer to DOT responsibilities for coastal and inland waterwavs navigation from the Corps; and integrate into DOT certain DHS programs related to surface transportation securitv, includingtransit securitv grants. THE OPPORTUNITY Spinning-off Federal responsibilitv for air traffic control services to a non-profit entitvr would better enable ouraviation svstem to respond to con sum er needs and modernize services. Having DOT take over responsibilitvfor coastal and inland waterwav navigational development would take advantage of in infrastructure finance and would make maritime responsibilities analogous to role in othertransportation sectors. Shifting commercial navigation to DOT would also create long-term opportunities to adjust ownership and financial relationships between the States and the Federal Government, resulting in more efficient project deliverv outcomes. Consolidating within DOT surface transportation securitvr programs would streamline the Federal Government?s interaction with surface transportation agencies and operators, clarifv the Federal Government?s role in surface transportation, consolidate planning and grant processes for both safetv and securitv investments, and facilitate more effective Federal inspections and interaction swith relevant surface transportation agen cies and operators. REFDRM PLAHANDREDRGANIEATIDN RECUMMENDATIDNS WHAT PROPOSING AND ?ll?li'HVIlr THE RIGHT THING TO DO DOT, created in 196?, has one of the largest discretionary budgets {in terms of outlays] of any domestic Cabinet-[eyel agency. It has a decentralized management structure in which the Office of the Secretary of Transportation (OSTJ coordinates the programs, regulatory actiyity, and research and deyelopment of nine operating administrations, or ?modes." In 201?, the Department had total budgetary resources of billion and employed 54,676 full time equiyalents. modes generally focus on three primary missions: 1. Financial Assistance. Approximately TD percent of DOT obligations in any giyen year are in the form of grants to States and localities, primarilyfor highway, transit, and airport infrastructure, though DOT has smaller grant programs for passenger rail and multi-modal projects BUILD grants]. 2. Safety Regulation. DOT ensures the safety of the ayiation system {including aircraft, air traffic control, and emerging technology, such as drones or commercial space], motor yehicles, motor carriers, railroads, transit systems, pipelines, and the moyement of hazardous materials. 3. Operations. Air traffic control operations constitutethe single largest operational budget item, and also comprise a majority of workforce. DOT also operates a lock on the Saint Lawrence Seaway. This proposal recognizesthat most of actiyities are oriented around financial assistance to States and localities and safety oyersight, that there are seyeral programs within DOT that do not align with those twofocus areas, and that seyeral programs outside of DOT should be merged intothe Department. Air Traffic Controi and Soint Lowren ce Seowoy The most significant misalignment is in areas where DOT operates transportation systems, principally the air traffic control seryices, and to a much smaller degree, the Saint Lawrence Seaway. Both ofthose components could be spun the Goyernment, which would allow them to haye better goyernance structures and insolation from the political system, and allow them to better assess fees based on actual usage oftheir systems. Spinning FAA airtraffic control seryices out ofthe Goyernment, to a non-profit entity, similar to the Canadian system, has strong policy merits, eyidenced by the approximately 60 countries that haye shifted air traffic control responsibilities to non-goyernmental proyiders. Maritime Consoiio?otion Unlike all oth ermod es of transportation, DOT has a yery limited role in the Nation?s commercial maritime systems. Th Maritime Administration is operating administration engaged in the promotion of the US. maritime sector, yet its mission is dominated by educating cadets at the US. Merchant Marine Academy and carrying outtwo defense-related programs designed to meet the Department of Defense?s military sealift needs in a time of crisis. In contrast to oth er operating administrations, MARAD as safety regulatory function and limited financial assistance actiyities, which leayes DOT under-represented in commercial maritime issues. Th ere are opportunities to add to responsibilitiesfor coastal ports, inland waterways, an nayigation permitting actiyities. Under this proposal, responsibility for coastal port dredging and operation ofthe inland waterway system, currently carried out by the Corps, would be shifted to DOT, which already has some limited expertise in the port and inland waterway sectors. Shifting these programs to DOT would also be an opportunity to reassess the type of Federal inyolyement in both sectors. Giyen T2 DELIVERING EDUERNMENT SDLUTIDNS IN THE 11!? extensiye experience in proyidingfinancial assistance to major infrastructure projects, a new model of Federal financial assistance to ports may be a more efficient project deliyery mechanism than direct Federal control, construction, and on going maintenance. A similar financial assistance model could be applied tothe inland waterway system, though some portions may require continued Federal ownership, control and operation. In addition, transferring current U.S. Coast Guard responsibilitiesfor permitting alterations to bridges and aids to coastal nayigation to DOT would better align those functions with similarfunctions already carried out by Surface Transportation Security DHS has two secu rity-related surface transportation functions that would be transferred to DOT under this proposal: transit security grants currently administered by the Federal Emergency Management Agency and Transportation Security Administration su rface transportation inspection and guidance actiyities. FEMA currently proyid es security grants totransit an rail operators. The Federal Transit Ad ministration, which manages much largerfinancial assistance programs aimed at these same agencies and operators, could integrate programs into its existing industry relationship. In fact, security and emergency preparedness are already eligible expenses in programs, highlighting the duplicatiye nature ofthe separate FE MA grants. Consolidating all transit and rail grantfunding within DOT would eliminate confusion among transit agencies about which agency funds their emergent needs. More generally, DOT has a strong focus on the safety of our Nation?s transportation networks, while DHS is responsible forthe security ofthose assets. Howeyer, both agencies haye programs forthe same non- Federal agencies, operators, and companies that own and manage surface transportation assets. Furthermore, the Federal Goyernment traditionally proyid es guidance, financial assistance, technical assistance, and in certain cases, oyersight and regulation for the surface transportation sector. The Federal Goyernment has no operational role in managing or securing su rfacetransportation assets, nor should it. That is clear in mission and history, howeyer since its creation TSA has been pressured to expand its operational programsfor surface transportation. Despite the compelling case for Federal ayiation security operations, establishing a corresponding Federal role in surface transportation would be duplicatiye of non-Federal efforts, cost-prohibitiye, and impractical to manage. Currently, TSA has a small component {$129 million enacted in Fiscal ?fear 2018] dedicated to to surface tran sportation facilities, encouraging security planning and threat reporting, oyerseeing compliance with certain rail security regulations, and disseminating best-practice guidance to transportation companies and goyernment agencies. Under this proposal, surface-related programs would be incorporated into DOT, which interfaces directly and regularly on safety matters, ensu ring that both safety and security are addressed appropriately. While DHS receiyes useful intelligence reporting from current TSA programs and outreach, many other Sector Specific Agencies who lead the collaboratiye process for other critical infrastructure security haye sh own they can collaborate to share intelligence as effectiyely as a DHS component. As part ofthis proposal, the Administration will ensure any reorganization does not degrade security. REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS 03 Organizetioncri Structure OST hastraditionallyfocused on formulating national transportation policyand oyerseeingand supporting the Department?s operating administrations. More recently, howeyer, the scope ofactiyities performed by OST has broadened significantly. Now, OST has programmatic responsibilities that haye traditionally been carried out by operating administrations. For example, OST houses the Build America Bureau, which, among other responsibilities, administerstransportation credit programs, awards NFRA grants, allocates priyate actiyity bonds, and communicates best practices and funding opportunitiesto project sponsors. OST also administers the BUILD grant program, which receiyed a large increase in funds in the agency?s FY 2018 appropriation. Ezecutin gthese programmatic responsibilities while simultaneously performing its moretraditional oyersight and man agement functions has been challenging and has stressed organizational structure. Now that OST has performed these dual rolesfor seyeral years, it is timeto consider whether organizational design is optimal for allowing it to most effectiyely carry out its statutory responsibilities. This proposal would include an assessment by the Administration and the Department ofOST?s organizational structure and programmatic responsibilities, including potential altematiye structures. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY Reform Federal Role in Mortgage Finance1 Summary of Proposal: This proposal would transform the way the Federal Government delivers support for the U.S. housing finance system to ensure more transparency and accountability to taxpayers, and to minimize the risk of taxpayer-funded bailouts, while maintaining responsible and sustainable support for homeowners. Proposed changes, which would require broader policy and legislative reforms beyond restructuring Federal agencies and programs, include ending the conservatorship of Fannie Mae and Freddie Mac, reducing their role in the housing market, and providing an explicit, limited Federal backstop that is on-budget and apart from the Federal support for low- and moderate-income homebuyers. THE CHALLENGE The U.S. housing market is supported by a complex system of Federal subsidies and programs intended to make mortgage financing accessible to a wide range of homebuyers. However, this system is challenged by the operation oftwo privately- owned Government sponsored-enterprises Fannie Mae and Freddie Mac, in conservatorship, a condition that has been maintained since 2008, in addition to overlapping and sometimes conflicting Federal goals. The Federal role in support of housing finance is not effectively targeted to households in need of assistance or sufficiently accountable to taxpayers, as the costs and benefits ofthat support are unclear. In response, this proposal would end the conservatorship of Fannie Mae and Freddie Mac and propose better tailoring of delivery of Federal programs. Policy makers should also pursue an approach that would level the playingfield with the private sector to decrease the Federal subsidies supporting housing. THE OPPORTUNITY This proposal would reorganize the way the Federal Government delivers mortgage assistance and go beyond restructuring Federal agencies and programs by transitioning Fannie Mae and Freddie Mac to fully private entities. Competition to the duopolistic role played bythe two privately-owned GSEs would be an essential element of reform to decrease moral hazard and risk to the taxpayer. Both Fannie Mae and Freddie Mac, as well as other competitive entrants, would have access to an explicit Federal guaranteefor mortgage-backed securities that they issue that is only exposed in limited, exigent circumstances. Such a guarantee would be on-budget and fully paid-for. This would also ensure that the Government?s role is more transparent and accountable to taxpayers, minimize the risk of taxpayer-funded bailouts, and ensure that mortgage credit continues to be available in times of market stress for creditworthy borrowers. 1 In orderto pro pose changes in the Federal Government?s role in housing finance, this proposal outlines policies related to the privately-owned GSEs and ending their conservatorship. Nothing in this paper should be construed as implying th at the GSEs are agencies or in strumentalities of the Government northat FHFA as conservator is operating as an agency of the United States. REFDRM PLAHANDREDRGANIEATIDN RECUMMENDATIDNS WHAT PROPOSING AND WHY THE RIGHT THING TO DO Under the current svstem, Fannie Mae and Freddie Mac, two privatelv-own ed GSEs, buvr and guarantee mortgages from lenders and sell them to investors as BS. Although thev are private companies, th ev are congressionallv chartered, a unique status that has been viewed as conveving an implicit Federal backstop that has in turn lowered their cost of capital relative to similarlv-sized institutions. In 2008, Fannie Mae and Freddie Mac were taken into conservatorship and received {and continue to receive} an explicit but limited backingfrom the Treasu rv undera Preferred Stock Pu rchaseAgreement which gives accessto capital fundin gthat covers anv loss the enterprises mav incur. In th eir Federal charters an bv action oftheir primarv regulator, the Federal Housing Finance Agencv Fannie Mae and Freddie Mac have goals of providing a certain amount of financing to low- and moderate-income borrowers. However, these affordable housing activities are not clearlv accounted for on the Federal balance sheet. In addition tothe GSEs, other Federal programsprovide mortgage support, contributingto a large Federal footprint in the housing market. The Department of Housing and Urban Development Federal Housing Administration provides mortgage insurance intended to aid borrowers traditionallv underserved bvthe conventional mortgage market, including lower-wealth households, minorities, and first-time homebuvers. The Departments of VeteransAffairs and Agriculture also administer mortgage insurance programs targeted to veterans and lower-income rural households, respectivelv. The loans guaranteed bv FHA, VA, and USDA are in turn packaged into MBS that are guaranteed bv Ginnie Mae, a Federal entitv operated bv HU D. Together, loans backed bv the GS Es and Ginnie Mae comprised about 70 percent of mortgages originated in 201?. All these entities, taken as a whole, form a complex and overlapping network of cross-subsidization, without clear accountabilitv as to who is paving for, and who is receiving, housing subsidies. Although the Federal role in the housing market has helped to facilitate the availability}r of the 30-year fixed-rate mortgage, the current svstem has structural flawsthat have also created distortions in home pricingthat mayr actuallyr hinder the goal of homeownership. This reorganization proposal, which includes broad policyr and legislative reforms bevond restructuring Federal agencies and programs, would: - Increase competition. The proposal would remove the Federal charter from statute and fullv privatize the GSEs. A Federal entitv with secondarv mortgage market experience would be charged with regulatorv oversight of the fullv privatized GSEs, have the authoritv to approve guarantors, and develop a regulatory}r environment that is conducive to developing competition amongst new private guarantors and the incumbent GSEs, ensuring thev would all be adequatelv capitalized and competing on a level plavingfield. If the GSEs lost some of the benefitsthat have led them to dominate the market, this would enable other private companies to begin competing in this space. The regulator would also ensure fair access to the secondarv market for all market participants, including communitvr financial institutions and small lenders. - Increase transparencv and accountabilitv. Under this proposal, which would also involve entities outside the Executive Branch of the Federal Government, guarantors would have access to an explicit guarantee on the M35 that thev issue that is only}r exposed in limited, exigent circumstances. Taxpavers would be protected bv virtue of the capital requirements imposed on the guarantors, maintenance of responsible loan underwriting standards, and other protections deemed appropriate DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" by th eir primary regulator. The regulator would set fees to create an in suran ce fun designed to take effect only after substantial losses are incurred by the priyate market, including the guarantors, in order to ensure the continued ayailability of mortgage financing through shifting economic cycles. The projected cost ofthis guarantee and other fees charged would be on-budget and accountable, resulting in reduced implicit taxpayer exposure. - Align incentiyes and reduce oyerlap. Un derth is reform proposal, which would also require legislatiye an policy changes affectingthe mandates of entitiesthat are not part ofthe United StatesGoyernment, the GSEs would focus on secondary market liquid ityfor mortgage loans to qualified borrowers, while HUD would assume primary responsibility for affordable housing objectiyes by proyiding support to low- and moderate-income families that cannot be fulfilled through traditional underwriting and other housing assistance grants and subsidies. To effectuate this, the newly fully-priyatized GSEs would haye mandatesfocused on definingthe appropriate lendingmarkets seryed in orderto leyel the playingfield with the priyate sector and ayoid unnecessary cross-subsidization. Aseparate fee on the outstanding yolume of the M35 issued by guarantors would be used specifically for affordable housing purposes, and would be transferred through congressional appropriations to, and administered by, HUD. - Proyide more targeted assistance to those in need. The proposal would be designed so that the affordable housingfees transferred to UD would enable proyide more targeted subsidies to low- and mod erate-income homebuyers while maintaining responsible and sustainable support for homeownership and wealth-building. Some of the fees could potentially be used to support affordable multifamily housing or other HUD actiyities. All of this support would be on-budget and accountable. REFDRM PLANANDREDRGANIEATIDN RECUMMENDATIDNS Create the Bureau of Economic Growth Department of Commerce Summaryr of Proposal: This proposal rethinks how the Federal Government can drive economic growth in concert with private sectorinvestments in communities acrossthe countrv. Bv coordinating and consolidating Federal economic assistance resources at the Department of Commerce taxpaver dollars will receive a higher return on investment on projects that are transparent and accountable. THE CHALLENGE Federal econ omic assistan ce programs that serve States, localities, and Tribes are broadlv dispersed among Federal agencies with different purposes, eligibilitv criteria, time horizons, and reporting requirements. As a result, communities must navigate a complicated web of rules and regulations to determine which programs thev might be eligible for, with different application requirements on a varietv of timelines, and report on performance measures that differ in definition and reporting periods. Consolidating these programs within DOC provides an opportunitv to streamline and consolidate standards and processesfor eligibilitv and participation, includingplanningand reporting requirements. THE OPPORTUNITY This proposal establishes a Bureau of Economic Growth in DOC, consolidating existing economic development programs to provide a central place for grants and technical assistance to communities and entrepreneurs focused on job creation, business growth, and strengthening local economies. The new Bureau will better support and empower State, local, and tribal governments to spur their economiesthrough locallv planned development projects. The streamlined Bureau will also increase transparencv in regional and local Federal spending, as well as encourage and facilitate complementaryr private-sector spending. Some ofthe programsthat will be consolidated in cludethe Department of Housing and Urban Development?s Communityr Development Block Grant program,the Economic Development Administration?s Economic Development Assistance Programs, and rural business and communitvfacilitvr the Department of Agricultu re. As part ofthe Bureau ?s focus on creatingjob opportunities and su pportingthe local business communitv, it would absorb the economic development functions ofthe Delta Regional Authoritv, Denali Commission, and Northern Border Regional Commission. The new Bureau would also overseetechnical assistance programs. These programs provide training, planning, and other business development assistance to help businesses succeed no matter where thev are in their lifecvcle, whether theyr are just startingout, looking to expand, ortrving to access new domestic and international markets. DELIVERING GUUERNMEHT SDLUTIDNS IN THE 11!? CENTURY WHAT PROPOSING AND WHY THE RIGHT THING TO DO The Federal Goyernment can play an important role in bolstering economic growth, with its ability to undertake large-scale economic deyelopment projects and holistically analyze their impacts. It is uniquely positioned to help mitigate market failures, and can leyerage resources in distressed communities when localj?regional entities cannot. Unfortunately, the current Federal economic deyelopment model is fragmented, resulting in fractured regulatory requirements and jurisdiction s, oyerlapping program s, redundancy, and waste?l Many programs and projects are unable to clearly demonstrate their impacts on measures of economic growth. The Bureau of Economic Growth reorganizes seyeral Federal economic deyelopment programs into discrete functions based on mission, capabilities, and deliyery method with the intent of increasing efficiency and accountability, and improying outcomes and seryices to citizens, business owners, and communities. Consolid atingthis assistance within DOC proyid es an ideal opportunityto streamline and consolidate standards and processes for eligibility and participation, including planning and reporting requirements. The new Bureau will accomplish its mission yia three operational arms planning, grant-making, and technical assistance as well as an office of Bureau-wide administration. The Planning Office will engage State, local, and tribal community deyelopment agenciesfauthorities, in addition to regional consortia of these entities. Its primary function will be to leyerage these agencies? internal planning capabilities to identify each community?s unique barriers to economic growth and set community goals that are specific, measurable, actionable, releyant, and time-bound. Th rough this planning process,these State, local, tribal, and regional agencies can establish the criteria and milestones by which to measure the effectiyeness of any subsequently awarded grants. After completing the planning process, applicants can apply to the Bureau?s Of?ce of Grant-Making for the funds to implement their plans in a manner consistent with their established goals. The Office of Grant? Making will craft criteria to assure that the implementation actiyities are sufficiently comprehensiye, actionable, and consistent with the applicant?s plan. The Office of Technical Assistance will work directly with non-profit and educational organizations operating within the State, local, tribal, or regional areas to build capacity through strategic and operational training and dissemination of best practices in economic deyelopment to local businesses and practitioners. These non-profits will apply directly to the Office ofTechnical Assistance forfunding fortechnical assistance actiyities that support the community economic deyelopm ent plan. In addition to proyidingfunding, the Office of Technical Assistance could proyide access to assets that support the non-profit?s implementation. This direct engagement with non-profits will allow the Office ofTechnical Assistance to function in an efficient and scalable manner, without duplicating staff or other resources that already exist in the local community. Recognizing the unique ch allengesfaced by small businesses, this proposal oes not in clud ethe Small Business Ad ministration?s Office of Entrepreneurial Deyelopment, which proyides planningand educational seryices ezclusiyelyto small businesses, within the new bureau. 1 Government Accountability Office, ?Action Tracker: Economic Development: Economic Development Programs,? REFDRM PLANANDREDRGANIEATIDN RECOMMENDATIONS Centralizingth ese economic development programs and activities under DOC is ad vantageousfor several reasons. DOC is alreadv tasked with the missions of ?promotingjob creation and economic growth? and ?leading the Federal economic development agenda by promoting innovation and competitiveness, and preparing American regionsfor growth and success in the worldwide economv.? As such, Commerce is well equipped with resources and expertise to support the proposed economic development consolidation and advance economic growth. Through its Bureaus of Economic Analvsis and the Census, DOC has accessto comprehensive economic data which can be used to inform economic development strategies, measure outcomes, and improve accountabilitv. Additionallv, DOC has wide-ranging capabilities within its offices and Bureaus which make it uniquelyr suited to address the intrinsicallyr multi-faceted nature of economic development. For example, it can leverage technical expertise to assist businesses with existing international footprints, or those looking to export through trade functions like export assistance and attracting foreign direct investment; facilitate technological innovation and commercialization; and help businesses register and protect their intellectual propertv. 30 DELIVERING GUUERNMEHT SDLUTIDNS IN THE 11!? CENTURY US. Public Health Service Commissioned Corps Department otHeoith and Human Services Summary of Proposal: This proposal would transform the Commissioned Corps {Corps} into a leaner and more efficient organization that would be better prepared to respond to public health emergencies and provide vital health services. It would do this through a series of management improvements, including reducingthe size ofthe Corps an build in gup a Reserve Corps for respon se in public health emergencies. THE CHALLENGE The Corps consists of approximately 6,500 uniformed public health professionals, who work alongside theircivilian counterparts performingthe samejobs but often receive highertotal compensation. Corps officersreceive military-like benefits, even though they have not been incorporated intotheArmed Forces since 1952, and generally do not meetthe Department of Defense?s criteria forthe military compensation system. Further, the Corps?s mission assignments and functions have not evolved in step with the public health needs ofthe Nation. The Fiscal Year2019 Budget raised questions about the value of having Corps of?cers in roles that civilians can fill, given they are more expensive than equivalent civilian s. Only a small percentage of Corps officers deploy for public health emergencies, and many officers encumber positions that could be filled by civilians. In addition, a 1996 Government Accountability Of?ce Report? raised questions about the need for Corps officers in positions that did not provide direct health services. THE OPPORTUNITY This proposal would reduce the Corps force from approximately 6,500 officers to no more than 4,000 officers, and create a Reserve Corps that can provide additional surge capacity during public health emergencies. These reforms would result in a Corps that is more appropriately equipped to provide critical public health services and support in public health emergencies. WHAT PROPOSING AND THE RIGHT THING TO DO Reduce the Size ofthe Corps This proposal would reorganize the Corps through a number of administrative and legislative reforms that would reduce unnecessary positions within the Corps and utilize Federal funds more effectively. The Department of Health and Human Services would hold the Corps to a new standard, and require that officers fill critical public health roles andfor respond to public health emergencies. 1 Issues on the Need forthe Public Health Service?s Commissioned Corps. Publish ed: May T, 1996. Publicly Released: May 15, 1996 REFDRM PLAN AND REDRGANIEATIDN RECUMMENDATIDNS Under this proposal, HS would reduce the size ofthe Corps to no more than 4,000 officers. Specifically, the agency would: 1] civilianize officers who do not provide critical public health services or support in public health emergencies; 2] require that Corps officers initially work in a hard-to-fill area and continue to serve there, or deploy as needed in a public health emergency {at least once every three years]; and 3] enforce standards for Corps eligibility and readiness. reote or Reserve Corps This proposal would also create a Reserve Corps?similar to those used by other uniformed service programs?that would deploy either in a public health emergency or to backfill critical positions left vacant during Regular Corps deployments. The Reserve Corps would consist of Government employees and private citizens who agree to be deployed and serve in times of national need. The Reserve Corps would be an integrated part ofthe HS response to public health emergencies. Bu o?getory Refo In addition to restructuring the Corps workforce, this proposal would more appropriately allocate the cost of Corps officers to en sure each agency pays its fair share for Corps officers moving forward. Currently, if an agency employs a Corps officer the agency does not pay the accruing retirement costs for that officer, even though it pays the accruing retirement costs of civilian employees. This can result in an agency employing a Corps officer instead of a civilian because the Corps officer appears less costly than is actually the case. This proposal would require agencies to pay the accruing retirement costs for Corps officers moving forward. Under this proposal, the Corps would deliver on its mission in a more efficient and effective manner and spend taxpayer dollars more effectively. At the end ofthistransformation, the Corps would be leaner and have an improved ability to provide public health services and respond to public health emergencies. 32 DELIVERING GUUERNMENT SDLUTIDNS IN THE 11!? CENTURY Improving Agility through Increased Use of Federally Funded Research and Development Centers Notionoi Aeronautics and Space Administration Summary of Proposal: This proposal would establish an accelerated process for determining whether one or more ofthe National Aeronautics and Space Administration ?s Centers should be converted to, or host, a Federally Funded Research and Development Center can potentially allow the agency to be more agile in rapidly responding to changing needs and in recruiting and retaining scientific and technical expertise. THE CHALLENGE The missions and programs of conducted across 10 geographically-dispersed Centers, augmented by several testing and support facilities. While nine ofthe Centers are Government owned and operated, the Jet Propulsion Laboratory is operated by the California Institute of Technology as an FF RDC. In 2004,the President?s Commission on Implementation ofUnited States Space Exploration Policyfound that NASA Centers: 1] needed to modernize theirinfrastru cture; 2] lacked institutional incentives to align them with new policy; and 3] utilized often ossified personnel practices. The Commission recommended that NASA Centers be reconfigured as to enable innovation, work more effectively with the private sector, and stimulate economic development. With the advent ofthe President?s National Space Strategy, a renewed look at the FF RDC operating model is warranted as part of broader strategy to meet the Administration?s ambitious space objectives. This proposal would establish a process for determining whether one or more of other Centers should be converted to, or host, an THE OPPORTU The new National Space Strategy and National Space Policy Directive 1 require the full agility of NASA, in concert with its commercial and international partners, in order to realize the President?s goals to return American astronauts to the moon and follow with human missions to Mars. In order to bolster agility, increased use of could provide greaterflexibilitythan civil servant organizations, potentially allowing them to better meet the agency?s evolving needs. WHAT PROPOSING AND THE RIGHT THING TO DO Background on are research institutions that are owned by the Federal Government, but operated by contractors. They are intended to provide Federal agencies with Research and Development capabilities that cannot be effectively met by the Federal Government orthe private sector alone, and can convey a number of benefits, including the ability to recruit and retain scientific and technical expertise, and to more rapidly respond to the needs of a Federal agency than would be possible with a civil servant workforce. REFURM PLAHANDREDRGANIEATIDH RECDMMENDATIUNS 33 The new National Space Strategy and National Space Policy Directive 1 make examiningthe potential advantages of an model at NASA particularly timely. may offer a powerful approach to enable NASA to better align its workforce skillsets with Agency priorities, while simultaneously engendering an entrepreneurial spirit that better allows NASA to infuse talent from industry and commercial partners. offer a number of advantages over traditional NASA Centers in terms of their competitive compensation to employees, flexibility, and technical skills available to the Agency. They occupy a unique position in the Nation?s base: they arefree from many ofthe outdated mechanisms inherent in the civil service, and can also perform work for non-Government customers. As a result, are noted for their technical excellence, strong integration with the U.S. industrial base, and agility. All of these are essential as NASA works to meet the bold objectives laid out in the National Space Strategy and National Space Policy Directive 1. Process to Determine Best Roie for This proposal lays a processto determine if one or more of other Centers should be converted to, orhost, an NASA would oversee this process and provide an analysis, in cludingrecommendations, to the White House by the end ofAugust 2018 so that the outcome can be reflected in future budget and policy plans and proposals. analysis would draw from prior studies of this topic and evaluate the potential of an to further the Administration?s policy goals more effectively. In addition to studying whether one or more Centers could potentially be converted to an in whole or in part, NASA would also establish whether it may be effective to perform new programs and projects using an structure. The additional analysis needed before increasing the use of will address the following: - Although have several advantages over Government-owned and operated facilities, they can also have drawbacks. A 201? report by the Congressional Research Service, for example, noted concerns with including mission creep, in effective Federal agency oversight, and competition between FF RDCs and the private sectorfor Federal funding.? The analysis will weigh the specific costs and benefits of establishing an for particular NASA Centers. - It is possible that a new hosted at a Center may be effective in running new programs or projects that are part of the Ad ministration?s space policy but are not yet underway. The analysis will examine whether these programs could more effectively be run by establishing a new FF RDC. Conversion of a Center, or parts of a Center?s operation, to an would require several steps related to developing the sponsoring agreement with the organization managing the and addressing human capital issues. The analysis will examine these steps and estimate their feasibility. 1 Congressional Research Service, ?Federally Funded Research and Development Centem Background and Issu es for Congress,? December 1,2017. 3.1 DELIVERING EDUERNMENT SDLUTIDNS IN THE 11!? Management Consolidation of Federal Graduate Research Fellowships Notional Science Foundation Summary ofProposal: This proposal would consolidatethe administration ofgraduate fellowships for multiple Federal agencies under the National Science Foundation in order to reduce the total cost of administering those fellowships. THE CHALLENGE Multiple agencies are administering many different graduate research fellowships across the Federal Government. Some of the larger programs fund over a thousand fellowships annually while smaller programs support only a handful of fellowships each year. Each awarding agency devotes resources to administeringthese fellowships, but some are similarenough thattheirmanagement could be consolidated at one agency, potentially resulting in lower costs. This proposal would con solid ate the administration of Federal graduate research fellowships for smaller fellowship programs at NSF. NSF would leverage the efficiency of its existinggraduate fellowship program to coordinate the fellowship application, selection, and award processes for other agencies, and be reimbursed by the other agencies for this work. THE OPPORTUNITY Con solidatingthe man agem entfadministration of graduate fellowshipsfor smaller agencies at NSF could lead to reduction of duplicative administrative efforts and yield savings across the Federal Government. WHAT PROPOSING AND WHY THE RIGHT THING TO DO Graduate fellowships provide one or several years of funding su pport for students pursuing a Masters or degree. Awardees are selected based on a range of criteria, from their academic accomplishments to the broader societal impacts of their research work. Fellowships are a source of fundingfor student researchers in addition to research grants obtained by university faculty, and because fellowships tend to be highly competitive, they are viewed as prestigious in the scientific community. The Federal Government is byfarthe largest fund er of graduate fellow ships in the United States, but fellowships are also offered by foundations and private companies. NSF awards the highest number of graduate fellowships of all Federal agencies {more than 1,000 new fellows every year], and has an ef?cient system in place to do so. For agencies with much smallerfellowship programs, using NSF?sfellowship process instead oftheir own could be more ef?cient and produce savings if fellowship offices at other agencies can be downsized or eliminated. Even if NSF requires additional resources to process the increased workload, the Government-wide resources spent on administering graduate fellowships would be reduced compared to the status quo. REFDRM PLAHANDREDRGANIEATIDH RECUMMENDATIDNS An initial step to implement this proposal would be to take a thorough inventory of existing graduate fellowship programs across the Federal Government. At the same time, NSF would evaluate which types of programs and associated tasks would benefit from using expertise and grants management infrastructure. Depending on the number and size of other agencies? fellowship programs identified in the inventory, a phased approach could be implemented where less complex programs are the first to move under NSF management. DELIVERING GDUERNMEHT SDLUTIDNS IN THE 115" Rationalize the Federal Real Property Approach Government-wide Appiicotion Summary of Proposal: The Federal Government is the largest single employer and owner of real property in the United States, and as such, has a huge impact on the Nation ?s communities. Despite these far-reaching implications, its management of that real property is a mixed bag of smart space use, underutilized assets, liabilities, and leases. The Federal Government can do a betterjob strategically managingthese assets, including utilizing private sector best practices, to improve our communities, right-sizethe Federal real property portfolio, and provide better value and servicesto the taxpayer. This proposal encompasses moving Federal offices and jobs for better quality of life and a more capable workforce; a new budgetary mechanism for capital projects; better incentives for agencies to divest unnecessary assets; and smarter leasing practices. THE CHALLENGE Since 2004, the Federal Government has improved its real property management and has disposed of many properties that were no longer a needed. These actions have addressed low-hanging fruit, but many opportu nities remain for agencies to improve their decision -makin and id entify transactions that provide greater value for the Government. Unlike the private sector, Federal agencies sometimes lack incentives to think strategically about their workforce and shifting mission need s, and how those factors influence where they are located. Without transformative real property-related authorities, the Federal Government?s ability to meet its mission needs and make smart real estate decisions will continue to stagnate and fall behind the private sector. THE OPPORTUNITY A combination of administrative and statutory changes would provide opportunities to optimize the Federalfootprint by makingsmart investments in renovations and newfacilities, riving down lease costs, and disposing of unneeded real estate through a streamlined process that results in the greatest return to the taxpayer. Together, these reforms would allow agencies to have the facilities they need to fulfill their missions and serve the American people, while at the same timefreeing up unused or underutilized properties to generate a return for taxpayers and spur local economic development. 1li'liHiillT PROPOSING AND THE RIGHT THING TO DO Titie 40 Disposoi Process improvements Title 40 ofthe U.S. Code governs the process by which most agencies seek to dispose ofunneed ed Federal real property. The Title 40 process is complex, with many required steps prior to the disposal of real property: vettingfor surplus, excess, public benefit conveyance, and finally sale. GAO has highlighted that the complexity of disposal under Title 40 impacts the decisions that agencies make and can lead to decisions and outcomes that are not economically rational. In response, prior Administrations have proposed modest disposal reforms, but those proposals did not advance in the Congress. In December 2016, the Congress enacted legislation,the Federal Assets Sale Tran sferAct which created a new Public Buildings Reform Board to review agency submissionsfor disposal, and also included some limited disposal process streamlining. While FASTA is a substantial step forward?and the enhanced visibility REFURM PLAHANDREDRGANIEATIDN RECDMMENDATIUNS 3? from the Board will generate additional interest?the legislation did not tackle the major impediments to accelerating and expanding agency disposals. The Administration belieyes major new authorities are necessary to fully utilize the disposal process to return unnecessary Federal property back to productiye non-Federal use. As part of its Infrastructure Initiatiye,the Administration proposed a series ofimproyements to streamline, accelerate, and incentiyize the Title 40 disposal process. These improyements include: eliminatingthe public benefit conyeyance authorities, allowingagenciestotake unneeded Federal propertydirectly to sale; retention ofnet proceeds of sale dedicated to real property use without further appropriation; and expansion of the allowable uses of the Goyernment Seryices Administration Disposal Fund to support agencies with the upfront costs of disposition in adyance of makin a report of excess. Th Administration is proposing the elimination of all conyeyan ce proyision s, allowing surplus properties to go straightto market, maximizing the return to the taxpayer. Seyeral Goyernment Accountability Office engagements since 2004 haye highlighted the benefit of allowing agencies to retain some or all of sales proceeds associated with the disposition of Federal real property. Without this reform, agencies currently incur substantial work and costs to dispose of properties, with little to no financial upside for them, reducing their incentiye to pursue such disposals. Federoi Copitoi Reyoiying Fund (FCRF) Th eAdministration recognizes that the Federal Goyem ment must haye modern facilities to carry out agency missions and serye the American people. Howeyer, oyer the last decade, it has been difficult to secure the necessary appropriations to renoyate existing buildings and construct major new Federal facilities, such as the replacement ofthe Federal Bureau of lnyestigation Headquartersfacility in Washington, D.C. This inability to secure sufficient, timely funding to execute capital transactions often results in project cost escalation and costly lease extensions. To address this, in the Infrastructure Initiatiye and the Fiscal Year 2019I Budget, the Administration has proposed creating a new funding mechanism for large, ciyilian real property projects that is similar to the capital budgets that States employ. The proposal would establish a mandatory reyolying fund for the construction or renoyation of Fed erally-owned ciyilian real property, thus allowing agencies to budget for acquiring major assets incrementally while operating within the established, transparent Federal budget rules. This proposal is supported within the FY 2019 Budget, proyiding $10 billion forthe corpus of the Fund. GAO has conducted frequent reyiews of real property acquisition methodologies and challenges encountered with funding large projects. In 2014, GAO supported a similar approach to this proposal; howeyer, the Administration?s proposal proyides eyen more flexibility and cost sayings opportunities that those identified by GAO. Reiocotion Anoiytics Due to mission and cost considerations, agencies are considering opportunities to reposition their real property footprints, including relocating staff and offices to locations out side of the National Capital Region. Unlike the priyate sector, which has considerable flexibility and often takes a holistic approach to real estate and corporate mission requirements, agencies do not do a good job thinking holistically about th eir mission, physical location, and how they could deliyer seryices differently. The Administration belieyes there are many lessons that can be drawn from the priyate sector on how to assess changing DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" organizational requirements and how real estatefootprints can be adjusted given information technologv and management practices. The goal of this effort, led vaSA, isto provide agencies with thought-process, tools, and data to drive smarter decisions in agencv relocations, and work is alreadv underwav. GSA Leasing improvements In addition to managing Federal buildings, GSA also engages in extensive leasing with private sector lessors, who provide office and other space to Federal agencv tenants. lease portfolio includes approximatelyr 180 million rentable square feet in more than 8,000 separate leases. n anv given fiscal vear, GSA executes an average of 25 prospectus-level lease transactions, defined as lease awards where the annual cost ofthe lease pavments exceed more than approximatelv $3.1 million. GSA has seen considerable improvement in their leasing practices in recent vears, demonstrating significant reductions in the number of hold over leases and reductions in the size ofthe lease portfolio. However, more can be done to ensure that GSA makes smart leasing decisions, particularlv when running lease replacement competitions. GSA will be undertakingtwo policv changes: executing longer, non-cancelable lease termsto secure lower rates, and undertaking a more rigorous cost analvsis before executing space reductions to ensure cost effective decisions. GSA continues to assist other Federal agencies in makingthe most cost effective decisions under the Administration?s Reduce the Footprint policv. Agencies are looking to reduce square footage and GSA helps to ensure that anvr reduction leads to a cost- effective solution. REFURM PLAHANDREDRGANIEATIDN RECDMMENDATIUNS 39 Consolidate and Streamline Financial Literacy Efforts Summary of Proposal: More than 20 Federal agencies have some form of financial education or literacy program. To ensure effective allocation of Federal financial literacy resources and avoid unneeded overlap and duplication, this proposal consolidates and streamlinesthese programs. THE CHALLENGE The Federal Government spends an estimated $250 million annually on financial literacy and education programs and activities across more than 20 Federal agencies to educate Americans about a wide array of financial literacy and education topics. These programs lack meaningful coordination, clearmeasures of effectiveness, and are oftentimes overlapping or duplicative. Furthermore, very few agencies appear to monitorthe effectiveness oftheir programs and only a handful ofthese programs have been formally assessed or evaluated for impact. In addition to Federal programming, many non -fed eral organizations provide financial literacy services and resources, including nonprofit organizations, consumer advocacy organizations, financial services companies, employers, and State and local governments. Given the large number of participants served by Federal financial literacy and education programs, the Federal Government should con siderthe most effective ways to deliver these services while maximizing limited Federal resources and supporting the efforts of other public and private participants in this field. The Financial Literacy and Education Commission was established by law in 2003 and is made up of the heads of 22 Federal agencies and the White House Domestic Policy Council. Chaired by the Secretary ofthe Treasury, FLEC is tasked to improve ?the financial literacy and education of persons in the United States through the development of a national strategy.? However, the FLEC has had limited success ration alizing Federal efforts to promote access to c1u ality financial literacy and education tools for allAmericans. THE OPPORTUNITY Consolidating and streamliningfinancial literacy efforts will increase Govemment efficiencies and reduce fragmentation among Federal programs. Reform would alsoimprove coordination with entities outside ofthe Federal Government and develop a data-driven approach tofinancial education that will increase the impact ofthe programs and make financial literacy information more accessible. PROPOSING AND THE RIGHT THING TO DO This proposal would require the Department of the Treasury {Treasury} to develop recommendations for Federal financial literacy and education activities that will be shared with the Of?ce of Management and Budget before October 1, 2018. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY The Administration will consider streamlining and consolidation proposals as part of the Fiscal Year 2020 Budget, including but not limited to: - Using an evidence-based approach to articulate a national vision that outlines the appropriate role for the Federal Government and leverages the current work of non-profit organizations, the private sector, and State and local governments. - Elimination and development ofprograms based on how much knowledge participants are acquiring from the financial literacyr and education program, as well as how likelyr the program is to result in behavior that lead 5 to greater financial capabilitv. - Consolidation of financial literacyr programs into fewer agencies, with a mandate that theyr consult with relevant experts in other agencies. - Consolidation offin an cial literacv policv and research into a single agencv or commission that would evaluate both existing programs and proposals for future programs. Choiienges Posed by Stotus Quo In addition to the $250 million that the Federal Government spends an nuallvr on financial literacv and education programs and activities, $170 million is spent on technical assistance and education for entrepreneurs bv the Small Business Administration, one component of which addresses financial literacv. Six ofthe more than 20 Federal agenciesthat ad ministerfinan cial literacv programs account for almost 90 percent ofthe Federal funds expended on financial literacv for individuals and households. Some areas of potential overlap and duplication among Federal financial education activities, include: - Financial Counseling: The Bureau ofConsumer Financial Protection Department of Defense the Department of Hou singand Urban Development the Department ofthe Interior, and the Department of Veterans Affairs all fund or provide general ortopic-specific financial counseling. - Retirement planning: BCFP, DOD, the Department of Labor the Department of Health and uman Services HS],th Office of Personn el Management, the Social Securitv Ad ministration, an Treasurv all support activities that address retirement planning and decision-making. - Research: BCFP, DOL, the Department of Education {ED],the Federal Deposit Insurance Corporation Federal Reserve Board, HS, HU D, and Treasurv are supportingior have recentlv supported] research and evaluation offinancial literacv and education. - Financial Education for military members: BCFP, DOD, and the Federal Trade Commission all administerfinancial education and counseling programs for militarv members and th eirfamilies. - Financial Literacyfor youth: BCFP, ED, FDIC and Treasurv all support initiatives that address financial literacv for vouth. - Websites with financial education content: Manv Federal agencies manage duplicative web content on financial education BCFP, FTC, the National Credit Union Administration, and Treasu rv]. However, limited evaluation is performed bv Federal agencies on the effectiveness and impact oftheir fin an cial literacv programs. For example, on lv th ree agencies have evaluated th eir programs using outcomes that measure changes in behavior. Most agencies onlyr measure accessibilitv and utilization of their activities. REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS Scope of Treasury?s Pionneo? Review ofStotus Quo Currently, the FL EC is assessing the landscape of Federal financial literacy and education activities, with the goals of: - Determiningthe appropriate Federal role and effective methodsto support programs administered by non-profit organization s, the private sector, State and local governments, and others. - Consolidating Federal financial literacy and education efforts, including streamlining overlapping or duplicative programs. - Identifying best practices and eliminating ineffective programs, activities, or practices. - Developing high-quality, consistent Fed eralfinan cial literacy and education curriculum and resources. - Developing an effective mechanism for oversight and governance of Federal financial education programs to strengthen effectiveness and eliminate the risk of future overlap, duplication, and ineffectiveness. - Establishing governance and oversight to ensure that any new programs are aligned with the Government-wide vision. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY Streamline Small Business Programs Snnaii Business Administration and the Departments ongricuiture, Transportation, Treasury; Veterans Affairs Summary of Proposal: This proposal con solidatesthe various Federal programs that assist small business owners secure access to capital and Federal Government contracts into the Small Business Administration In instances where a Federal lending or contracting certificate program is highly specialized or industry-specific, duplicative authority would be eliminated. THE CHALLENGE Small businesses play a critical role in our Nation?s economic growth. Approximately half of the US. private-sector labor force nearly 58 million Americans are employed by our Nation?s 30 million small businesses. Communities across the country rely heavily on the products, services, and jobs created by these Main Street businesses. Two of the most important ways the Federal Government supports small business creation and growth are by working with private lendersto provide capital access, and making Government contracting opportunities available to small businesses. Unfortunately, the GAO has repeatedly identified the Federal Govern ment?s current model for operating these programs as needing increased coordination and harmonization, citing duplicative programs at SBA and the US. Departments ongricultu re, Tran sportation, Treasury, and 1v'eteransAffairs. Examples of issues that arise from duplicative programs include: inconsistent standards and processesfor eligibility and participation; lack of consistent reciprocity between agencies and programs; and failure to realize efficiencies and economies of scale. Addressing these issues is critical for providing better service to America?s small businesses, creatingjobs, and maximizing the Federal Government?s investments in communities. THE OPPORTUNITY The various Federal small business lending and Government contracting programs represent ideal candidatesfor consolidation, given the overlap in their mission and delivery method. Centralizingthese programs would provide an opportunity to assess and streamline participation requirements such as eligibility criteria, application processes, and reporting. It would also help to ensure consistency in the application of small business certification criteria and reciprocal recognition across Federal agencies. Fu erm ore, it would optimize th valu ofth Fed eral Government?s small busin ess programs by achieving long-term cost ef?cienciesth rough centralized operations and oversight functions. Streamlining these programs and makingthem less burdensome would ultimately enableAmerica?s entrepreneursto invest more oftheir time and hard-earn ed profits in operating and growing their businesses. REFDRM PLAN AND REURGANIEATIDH RECDMMEN DATIDNS 93 PROPOSING AND THE RIGHT THIHG TO DO Th is consolidation will improve services to three major stakeholders: 1] business owners seeking fin an cing or contracting certifications; 2] the lenders that service Government-guaranteed loans; and 3] the Federal agencies that contract with certified small businesses. It would help strengthen and streamline operations acrosstwo of its primarv program areas: 1] capital access; an 2] Govern ment contracting support. Copitoi Access Financing is a kev component of starting, operating, and expanding a business. However, access to capital continues to be a hurdle for manv entrepreneurs. Small business owners often do not have the same access to credit as larger businesses that can more readilv take on a traditional loan from a bank. New entrepreneurs mav not have a credit score that can guarantee them a loan, especiallv on a new or innovative product. Entrepreneurs in emerging markets are more likelv to be denied credit and often relyr on personal savings or credit cards to sustain their business. Furthermore, accessto capital can be especiallv problematic for groups historicallv underrepresented in traditional commercial lending. The Fed eral Government helps mitigate these market failures through programs designed to offer cred businesses the abilityr to obtain financing. Th rough its Office ofC apital Access, SBA fills gaps in th commercial len ding market and ensuresthat small businesses are well positioned to access credit. It supports strategies that focus on providing reasonable credit terms and access to credit for minoritv? owned, women-owned, and veteran-own ed small businesses and entrepreneurs. Where appropriate, other small business loan and loan guarantee programs would be folded into the Office of Capital Access. existing expertise in providing capital access to small businesses makes it the best agencv to oversee this combined lending portfolio. In addition to streamlining assistance, this proposal would create the opportunitv for more comprehensive and cost- effective program oversight and Federal credit risk management, including loan and lender monitoring, predictive risk assessments and mitigation activities, real time reporting, and enforcement activities. Government Contracting Support The Federal Government is the largest procurer of good and services in the world, spending hundreds of billions of dollars annuallvr and averaging nearlvr $90 billion in contracts to certified small businesses each vear. Contracting with the U.S. Government presents a large opportunitv for small businesses, and the Congress has recognized its importance bv establishing a minimum Federal contracts set-aside of23 percent for small businesses. In addition, as a subset of this overall small business goal, the Government strives to award no less than 5 percent of contracts to small disadvantaged businesses and women-own ed small businesses, and 3 percent to service-disabled veteran-owned small businesses and those in UBZone locations. These purchasing decisions result in high-impact help grow small businesses and stimulate local economies. Duplicative programs that support small business contractingwould be consolidated into the Office ofGovemment Contracting and Business Development. In the event that anv overlapping programs require industrv-specific economic expertise, these programs would remain at their respective agencies, and the SBA would eliminate its duplicative authoritv. This proposal would create a ?one-stop shop? within SBA for all Federal contracting certifications for both the participating small businesses and the Federal agencies seeking to meet their contracting requirements. This would result in reciprocal recognition of small business contracting certification 5 across all Federal agencies an make consistent standard 5 and processes for eligibilityr and participation across programs targeting similar constituencies. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" The SBA curren provides expertise in this area, servin in an oversight role to ensure that th Governmen t?s contracting goals are achieved each year. It also reports on Federal efforts to stimulate technological innovation and commercialization through small businesses, and provides unique services like the suretyr bond guarantee to support contractors who need bondsto access contracting markets. REFDRM PLAHANDREDRGANIEATIDH RECDMMENDATIDNS a Consolidation of Certain Protective Details US. Marshals Service Summary of Proposal: This proposal would con solidate protective details at certain civilian Executive Branch agencies under the US Marshals Service in order to more effectively and efficiently monitor, assess, and respond to potential threats. Threat assessments would be conducted by the USMS with support from the US. Secret Service Determinations as to whether protection would be provided and its size and scope would be made by the USMS in consultation with affected agency heads. THE CHALLENGE The protective details of Government officials, including cabinet officials and some sub-cabinet officials, vary widely in size, scope, budget, training, and statutory authorization. To provide more effective and necessary security overall, this proposal would authorize US MS to manage protective details involving specified civilian Executive Branch agencies. Threat assessments would be conducted bythe USMS with support from and affected agencies upon request bythe USMS. This proposal would not affect law enforcement or military agencies with explicit statutory authority to protect Executive Branch officials, includingthe Departments of Justice, State, Homeland Security, or Defense, or other non-civilian agencies. Instead, it would focus on standard izingprotective details at civilian Executive Branch agencies that currently derive protection from a USMS deputation or other source, and assuring that a uniform and criteria-based determination of threat level and security need is centrally made. THE OPPORTUNITY The USMS currently providesfor the protection ofjudicial and designated Federal Government officials by providing Deputy US. Marshals to serve in a protective capacity, and assists in the protection of other officials by deputizing Government employees of other agen cies to perform thisfun ction. Currently, the USMS provides Deputy U.S. Marshalsforthe Secretary of Education and the DeputyAttorneyGeneral?s protective details. In addition, the agency deputizes Government employees of the Departments of Labor, Energy, Commerce, Agriculture, Transportation, Hou singand Urban Development, the Interior, and the Environmental Protection Agency to assist in the protection of their cabinet- and sub-cabinet officials. While the USMS requires certain baseline trainin gand law enforcement rec] uirements in orderto approve a deputation, individuals serving on protective details vary in background, training, and experience. Furthermore, these agencies have full autonomy in determining the size and scope of their details? activities, which vary based on a perceived threat and willingness to pay for protective services rather than the detection or assessment of existing threats. The USMS currently exercises threat assessment respon sibilityfor all matters related to members ofthe judiciary, court family, and other designated protectees th rou gh its Office of Protective Intelligence. Th currently exercises expertise in threat gh its National Threat Assessment Center NTAC provides guidance on threat assessment and training, both within the and to law enforcement, public safety, and academic partners. Specifically,the Presidential Threat Protection Act of 2000 authorizes the NTAC to provide consultation on complex threat assessment cases or plans, provide training in the area of threat assessments, and implement programs to promote the standardization of DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY Federal threat assessments, among other activities. The is therefore well-positioned to support the USMS on best practices in protection and threat assessment, as needed. Based on these resources, a centralized analvsis can be performed to determine the necessitv forand extent ofanv protective detail. Consolidation of resources related to certain protective details und er one agencv would leverage expertise of Government agencies trained in protective missions and threat analvsis, ensure more efficient use of Government resources, and provide designated Government officials with appropriate protection tailored to their individual circumstances. 1ll'liHJillT PROPOSIMG AND WHY THE RIGHT THING TO DO Under this proposal, the USMS would be granted authoritv over designated protective details and provide its own personnel for the purposes of threat assessment and protection. Determinations as to whether protection would be provided and its size and scope would be made bv the USMS, as delegated bv the AttornevGeneral in consultation with affected agencvr heads. The number of Deputv U.S. Marshals provided for anv approved protection of an official would varvr based on the individual?s threat assessment and risk. This proposal would be phased in as necessarv in orderto avoid disruptive impacts to both USMS and protected officials. The Administration will consult with the Congress regarding anv need for additional legislative authoritv. Further, the Of?ce of Management and Budget will coordinate with the Department of Justice and affected agencies on budgetarv implications and necessarv implementation guidance. Consolidation of certain protective details under USMS offers Govern ment-wide benefits including, but not limited to: Stun dordizotion of Protective Service Leveis Consolidating resources and authoritvfor certain protective details un der the purview of the USMS would standardize those protective details Government-wide. USMS would work with as necessarv to determinethreat levelsfor covered Federal officials in a consistent manner across all agencies. Protectees would benefit from standard, high qu alitv train in g, as well as the abilitvto set priorities and broader strategyr acrossthe force, an advantage overthe current decentralized model. Operational de-confliction and coordinated processes would be easier and more efficient with fewer agencies providing protection for designated cabinet and sub-cabinet officials. Additionallv, while the USMS requires general law enforcement training in order to approve a deputation, agencv emplovees serving on protective details varv in background, capabilities, and experience. Providing DUSMs would ensure that everv protectee has access to well-trained Federal law enforcement officials with appropriate experience and oversight. New Efficien cies Rather than emploving separate protective details with separate resources and authorities, the USMS would professionalize and standardize this mission across multiple Executive Branch agencies. REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS Small Grants Consolidation U.S. Agency for internationai Deveioprnent, inter-American Foundation, and U.S. African Deveiopment Foundation Summary of Proposal: The President?s Budget proposes to consolidate the small grantsfunctions, expertise, and grantmakingfrom the Inter-American Foundation and U.S. African Development Foundation into the U.S. Agency for International Development beginning in Fiscal Year 2019. The consolidation would be a significant step to reduce the proliferation of Federal international affairs agencies that are operating today, while also elevating community-led, ?local works? small grants as a development and diplomacytool forthe U.S. Government. THE CHALLENGE As a development and diplomacy tool, small grants allow the U.S. Government to engage directly with local organizations in poor and remote communities to support lives and livelihoods and build goodwill among local populations, often within foreign policy priority countries that the United States seeks to stabilize andfor assist in theirjoumey to self-reliance. At present, multiple U.S. Government agencies provide small grants assistance; however, each faces unique challenges in doing so. Authorizationsfor carrying out small grants work are also long outdated or provided in annual appropriations only. As the U.S. Government?s lead development agency, USAID has experience in implementing small grants in political transitions, but its efforts to do so in long-term development contexts are more nascent, and often more labor-intensive per assistance dollar than traditional aid mechanisms. Meanwhile, IAF and ADF face the fixed overhead costs associated with running small independent agencies, which continue to comprise a significant share of their overall budgets, even as they have managed to keep variable costs per grant low. THE OPPORTUNITY This proposal would support the USAID Red esign?s goal of helping countries on their journey to self-reliance, while also furth eringthe core mission of the foundations to support livelihoods in poor and remote communities across Latin America, the Caribbean, and Sub-Saharan Africa, leading to an aligned and enhanced approach to small grants for the U.S. Government. It would consolidate IAF and deep expertise, relationships, and functions into SAID, thereby en hancin capabilities while also reducingthe duplication and overhead costs associated with having th ree agencies carry out small grants work. The proposal would better align the twofoundations with U.S. foreign policy objectives and global development programs, while elevating community-led, ?local works? small grants as a evelopm eat and diplomacy tool and allowing forthe sharing of best practices across USAID. 133 DELIVERING GUUERNMEHT SDLUTIDNS IN THE 11!? CENTURY WHAT PROPOSING AND WHY THE RIGHT THING TO DO This proposal is consistent with the Center for Global Development?s report entitled A Practical 1vision for U.S. Development Reform which advised re-visitingthe role ofthe foundations, in light oftheir overlap in mission and function with USAID. The Center advised consideringthe transfer of the certain elements of the foun dation s? operating mod els into USAID, "potentiallv includ in goutside advisorvr boards and flexible tools for grant-making to local civil societv groups in developing countries.? The Congress has long recognized thevalue in small grants as an assistance-deliveryr mechanism, from establishing IAF and ADF in the late 1960s and earlv 1980s, respectivelv, to introducing a directive in annual appropriations over the past decade to enhance capabilities in this area. This proposal would enable USAID to better achieve the intent ofthat directive. Th rough the consolidation, USAID would capitalize on the existing expertise, capacitv, relationships, and toolsthat AD and IAF provide, including their regional and market segment emph ases, in orderto reinforce the U.S. Government?s bilateral development efforts. In return, USAID would offer these programs a platform that would betterintegrate th em with the Agencv?s existing global evelopment programs, more cohesivelv serve U.S. foreign policv objectives, and increase organizational efficienciesthrough reducing duplication and overhead. The consolidation would also serve to elevate communitv-led, "local works? small grants as a development and diplomacv tool for the U.S. Government, and it would allow for the sharing and integrating of best practices across USAID through the proposed Development, Democracv, and Innovation Bureau. As part ofthe proposal, IAF and ADF would begin to wind down as independent foundations in FY 2019, and would transfer their grants and select programmatic staffto USAID. In support of this consolidation proposal, the FY 2019 Budget requests a total of $55 million, across the following accounts: - $40 million in StaterSAlD?s Economic Support and Development Fund to support IAF and grantmakingvia USAID, beginningin FY 2019 {with $20 million per region]; - ST million in Operating Expenses account, to support the absorption of select programmatic IAF and ADF in FY 2019; and - $8 million for one-time costs to support the foundations? orderlyr closeouts in FY 2019, in million] and million] direct appropriations. In recognition ofthe foundations? regional expertise, the FY 2019 Budget proposes merging grants and select personnel into Latin America and Caribbean Bureau, and grants and select personnel into Africa Bureau. The work previouslv performed bvthe foundations would be initiallv programmed out of stand-alone offices within the regional Bureaus, but would be further integrated into the regional Bureaus overtime. Overseas, IAF and AD F?s work would be fullv integrated with USAID Missions. Certain cross-cuttingfunctions {such as the monitoring and evaluation of small grants] would be housed centrallv at USAID within the proposed Development, Democracv, and Innovation Bureau, so that such technical expertise and best practices could be leveraged for other regions and the Agencv as a whole. The proposal would also entail establishing a subcommittee under Advisorv Committee on Voluntarv Foreign Aid for IAF and AD F?s former boards to remain involved with the foundation s? work going forward and to advise the Administrator on small grant activities generallv, and on the smooth transition of the foundations? functions. REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS Transition to Electronic Government Notiondi Archives and Records Administration {with the Department ofi?iorneidno? Security and Socioi Security Administration) Summary of Proposal: This proposal would transition Federal agencies? business processes and recordkeeping to a fully electronic environment, and end the National Archives and Records Administration?s acceptance of paper records by December 31, 2022. This would improve agen cies? efficien cy, effectiven ess, and responsiven ess to citizens by converting paper-based processes to electronic workflows, expanding online services, and enhancing management of Government records, data, and information. THE CHALLENGE Federal agencies collectively spend billions of dollars on paper and paper-based records management practices. Even after decades of effort, far too many Federal Government services are still primarily paper-based. Thisforces Federal agen cies to devote resources to actively processing, moving, and later maintaining large volumes of paper records {requiring facilities, staff, and support contracts], even as electronic communication and systems have dramatically increased the volume of information agencies must manage. To date, efforts to address this issue have been inconsistent and ineffective across agencies. The Federal Government must confront this challenge by taking a comprehensive, lifecycle approach to records management. 0n the front end, it must cease paper processes to the extent possible, which will enable more efficient and effective delivery of services. Then, on the back end, it must support streamlined and secure electronic records management. These actions will facilitate citizen services and benefit the taxpayer by creating efficiencies and preserving public access to Federal records. THE OPPORTUNITY As agencies implement electronic processes in place of paper, it will be easier for the public to connect with the Federal Government, and apply for and receive services, improving customer satisfaction. Electronic record will reduce processin gtimes and ecrease the probability oflost or missing information. For example, the Department of Homeland Security?s U.S. Citizenship and Immigration Services currently ships most immigration applications among multiple facilities, such as lockbox and pre-processing centers, prior to adjudication, which is both costly and time consuming. Electronic records will greatly improve agencies? ability to provide public access to Federal records, prom otingtransparency and accountability. Over the long term, this also will reduce agencies? records management and storage costs and streamline the records management process, freeing resources for other high priority activities. This will also allow agenciesto provide more timely and accurate assistance to their customers. DELIVERING GDUERNMENT SDLUTIDNS IN THE 21?" CENTURY WHAT PROPOSING AND 1liliHY'lT?S THE RIGHT THING TO DO The Federal RecordsAct authorizes issue Govern ment-wide guidance to agencies on how to preserve their records and directs maintain a permanent archive of Government will be preserved indefinitelv. NARA policies and regulations cover the entire lifecvcle of records, from creation to use to storage or disposal. This proposal would use those authorities to drive agencies to reassess and modernize their paper-based processes Government-wid e. Currentlv, NARA holds more than 5 million cubic feet {eq uivalent to 12.5 billion pages] of archival record s, and anticipatesthat an additional 3 million cubic feet of permanent records will be transferred bv Fiscal ?fear 2030. Ad ditionallv, Federal Records Centers Program stores over 28 million cubic feet of Federal Government records on a temporaryr basis for other Federal agencies, costing agencies approximately:r $200 million annuallyr in pavments to NARA. Agencies also acquire records management and storage servicesfrom commercial providers. At the same time, agencies are trvingto manage a surge in their electronic records. NARA managed archival electronic records equivalent to 12 billion pages in 2005, which grew to 34 billion in 201?. owever, the contin uingn eed to support paper-based processes diverts resources awav from investments in a modernized electronic records management svstem. Without focused attention to this challenge, NARA an agencies will face in ad equate electronic records svstems an protocols, leadingto higher costs and lost record s, as well as deficient practices and services for paper records. This proposal would transition Federal agencies? business processes and recordkeeping to a fully electronic environment, and end acceptance of paper records bv December 31, 2022. Establishing a deadline bv which NARA will no longer accept paper records will force agenciesto direct attention and resources to this issue in a wav that has not occurred previou slv. To ensure this necessarv transformation awav from paper-based processes would occur across all ofthe Executive Branch, NARA will coordinate with Federal agencies to develop and provide the guidance, technical assistance, and services th ev will need to implement this proposal. The General ServicesAdministration would playr a supporting role bv connecting agencies with commercial digitization services available in the private sector. This will allow agencies to more procure needed services, helping expedite the electronic records process. 015. Citizenship and immigration Services ?orts to Expand Eiectronic Records Even as the Administration moves toward electronic records management across the entire Federal Government, some individual agencies have alreadv started to take critical steps toward this goal. For example, the USCIS National Records Center has centralized millions of paper records into a single facilitv, dramatically?r improving the integritvr of recordkeeping and cutting the time spent on file retrieval?a vital component ofapplication processin g?from weeks and even months to onlvr a few davs. USCIS alreadv offers electronic filing capabilitvr for a replacement green card ?-901 and application for naturalization It also plans to achieve end-to-end digital processing for all of the immigration benefits it adjudicates bv the end of 2020. This will include the ingestion of all applications and evidence through adjudication, decision making, and communication with applicants. USCIS will create digital immigration records at the point of receipt that serve as the official record through out the immigration REFDRM PLAN AND REDRGANIEATIDN RECDMMEN DATIDNS 101 lifecycle. This will increase efficiency and reduce risk to the immigration system. To further eliminate paper, USCIS is moying to a fully automated Freedom of Information Act processing system. A subset of this electronic capability will be released to the public in summer 2018, and full deployment is scheduled to be complete bythe end of 2018. Requesters will be able to file requests and receiye responses online. These efforts also build on other important work USCIS has already done that uses electronic recordsto improye applicant seryices and increase efficiency, such as with its system which electronically compares information from an employee?s Form I-9, Employment Eligibility Verification, to data from DHS and the Social Security Administration to confirm employment eligibility. Socioi Securiton?ministrotion Efforts to Expand Eiectronic Records The Social Security Ad ministration also is reducing paperprocesses, relying on an expanding suite ofautomated and online options to conduct business with the public. In FY 2012, the public conducted oyer 155 million transactions yia the SSA website, ratherthan through paper forms. SSA expects the number of successfully completed transactions in F?fs 2018 and 2019 to increase by 35 million each year oyerthe prior year. Additionally, SSAestimatesthat in FY 2019 about 50 percent ofthose submitting SSA retirement forms, or about three million people, will use online seryices to complete their forms; this used to be a wholly paper-based, in-person transaction. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY Customer Experience (CX) Improvement Capability Government-wide Summary of Proposal: This proposal would transform the wayAmericans interact with the Federal Government by providing a modem, streamlined, and customer-centric experience for citizens, businesses, and other customers, comparable to leading private-sector organization s. The Office of Management and Budget will provide leadership and establish a Government-wide capability to partner with Fed eral agencies to id entify key customer groups farmers, veterans], map their journeysfrom end-to-end and across agencies and programs, and improve their experience across delivery channels and organizational silos. This will be done in partnership with the US. Digital Service and the General Services Administration Technology Transformation Service with contributions from specific involved agencies. This capability will also serve as a central resource to better manage organizational change and ensure reform proposals achieve mission, service, and steward ship objectives. THE CHALLENGE Americans expect well-designed, efficient Government servicesthat are generally comparable in quality to that of leading private-sector organizations. Unfortunately, customer satisfaction with Federal services lags behind every other industry, as measured by the American Customer Satisfaction Index causing frustration for customers and higher costs for the Federal Government. While many agencies are taking action to improve their services, customer experien ce can lag when customer needs and journeys cross organizational silos. Whereas Government agencies execute their missions based on their specific authorities and responsibilities, customers tend to experience Government across stovepipes. For example, while the Federal Government strivesto support small business growth and competitiveness, duplicative and inconsistent programs spread across five different Federal agencies have sometimes created confusion and extra work for the small businesses they mean to serve. As individual agencies make investments particularly information technology investments maturing the capability to improve customer experience across agency silos will help the Government meet 213tCentury needs and expectations. At the same time, improving customer focus can lead to greater efficiency and effectiveness in agency operations. This will require technical expertise, enhanced business processes, management support, and new Government authorities to create cross-agency, Govern ment-wide solutions. THE OPPORTUNITY Establishing a Government-wide customer experience improvement capability would support existing agency efforts and create new Govemment?wide approa chesto improve the waythe public interacts with the Fed eral Government. In partn ership with agen cies, this ew function would identify key Fed eral customers veteran s, stu dents, farmers, retirees], map theirjou eys asthey interact with Federal agencies, and work to streamline those interaction across delivery channels and organizational silos. It would wolk with Federal REFDRM PLAHANDREDRGANIEATIDN RECUMMENDATIDNS organization sthat control resources an services and convene partner agencies an programs to harmonize business processes with a more holistic cu stomer-centric model. In manvr cases, Federal agencies alreadv devote considerable resourcesto customer experience, and these existingefforts will benefit from more end -to-end visibilitvr into customer needs and access to broader perspectives and tool sets. Further, this capabilitv will support the US. Digital Service an other information technologv mod em ization efforts bv evaluating how Federal services are delivered and identifving priorityr opportunitiesto leveragetechnologvto make service delivervr more customer-centri and efficient. Not onlv has this approach been proven to improve services in the private sector, but it also offers opportunities to reduce ovenap and fragmentation and reduce costs. WHAT 1liliE?RE PROPOSING AND 1lili'H'WT?S THE RIGHT THING TO DO The application ofthese tools and approaches has been proven in the private sector. Leading practice in the private sector now trend sto having an individual Customer Experience Officer reporting to the CEO, supported bv teams that both advocate for customer needs at an enterprise level as well as embed practices into individual business units across the organization. These CK organizations have developed a clear set of standards, tools, and capabilities such as the use of personas and cu stomerjournevr maps and have demonstrated their utilitv across diverse organizations and industries. Applvin gthese tools and capabilities to the Govern ment has also been proven to work. Through USDS and Office of 18F, the Government has recruited top-tier talent in information technologv and business process re-engineering. These individuals are helping the agencies that serve customers incorporate user-centered design into plansto modernize digital services and demonstrating th ose investments yield a high return. For example,for manvvears small business owners have been extremelv fru strated bv slow, bureaucratic, paper-based processes at th Small Bu sin ess Ad ministration that were not responsive to theirneeds. Due to the USDS team at the SBA, small businesses can now for Government Contracting Programs online in about 1 hour instead of davs. Thev can also secure kev information on locating their business bv using a mapping application that updates in near real-time. Further, individual agencies have developed enterprise-level customer experience capabilities that are deliveringdirect resultsto citizens, such as the Journevs ofVeterans Map, which has become the centerpiece of the Department of Veterans Affairs? success in presenting one face to veterans. For example, veterans have historicallyr had afrustrating experience navigating over ph one numbers and more than VA contact centers across its manv lines of business. To ad dress this challenge, VA is now in the process of integrating backend data svstems and providingveterans a single front door. It estimates that these efforts will produce a cost avoidance of approximatelv $2 billion dollars over five vears while also improvingveterans? experiences. This proposal envisions building on these individual efforts bv adding the capabilitv to tackle customer experience challenges throughout the Government. To get started, this capabilitv and relevant agencies will conduct research to identifvr the most significant opportunities for customer-centric change, develop customerjournev maps which cross organizational silos, and then develop action plans to execute service improvements. As need ed, agen cies would partner with USDS and Technology:r Transformation Service to enhance their digital services. One particular area offocus would likelv be the creation of user-focused Digital Front Doors - rebuilding Government web propertiesto focus less on Government structure and more on user experience. For example Farmers.gov, designed by the US. Department of Agriculture, delivers the information, tools, and first-hand advice built around the needs ofthe people who produce ourfood, fiber, flora, and fuel. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" This capabilityr will also serve as a central resource to better manage organizational change. Managing process improvements across organizations is complex, especiallyr given the legal structures, size, and cultures of Federal agencies. It will partner with agencyr leadership to support interagencvr change management, in clu ding project planning, con vening interagencvr meetings and facilitating collaboration, and sharing best practices on change management. REFDRM PLAN AND REDRGANIEATIDH RECDMMEN DATIDNS 14:15 Next Generation Federal Student Aid Processing 8: Servicing Environment Department of Education Summary of Proposal: The Next Generation {Next Gen] Financial Services Environment that will benefit Federal Student Aid?s customers and save taxpayer millions of dollars, will create an improved, world-class customer experiencefor more than 42 million customers, while creating a more agile and streamlined operating model. initial focus will be on modernizing capabilities related tothe Free Application for Federal Student Aid form and the servicingand repayment of customer loans, with additional work to come to improvethe experience throughout the student aid life cycle. THE CHALLENGE elps provid ed ucation al opportunityfor more th an 42 million stu dents pursu in higher education. It manages one of the largest consumer loan portfolios in the country, rivaling those of major financial institutions. customers deserve a world-class experience, but they do not consistently receive one today. Currently, customers interface with multiple brands and vendors throughout the student aid life cycle, creating a disjointed experience. Further, customers want additional capabilities and function alities to enable them to make more informed decisions and make their loan experience easier and more accessible. The current student loan servicing environment is a major barrierto ability to provide outstanding service to borrowers and taxpayers. THE The Department of Education is pursuing a new approach to FSA processing and servicing with a mod ernized, innovative, and integrated architecture th at will ben efit customers an save taxpayers millions of dollars. The Next Gen Financial Services Environment will create an improved, world-class customer experien cefor morethan 42 million customers, while creating a more agile and streamlined operatingmodel. WHAT PROPOSING AND WH?Illr THE RIGHT THING TO DO The Next Gen eration Processing and Servicing Environment is being esigned to meet customer expectations, improve how customers consume services and utilize different technology and media platforms, and further enhance borrower protections. The new system requires the separation of database housing, system processing, and customer account servicing so that cost efficiencies can be achieved and current state-of-the-art technologies can be deployed and evolve in the future. Through this market research, FSA has refined its strategy to implement the Next Generation Processing and Servicing Environment. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY Based on this research and discussions with a broad range of internal and external experts in student loan finance and information technologyr services, the Department has developed a plan for a Next Generation Financial Services Environment that will leverage best-in-business technologv to improve customer experience and outcomes and drive savings for taxpavers bv reducing FSA administrative costs. The kevr to this transformation will be a comprehensive, Department of Education-branded customerengagement laverthat will create an which the Department?s customers will receive clear, consistent information and readilyr accessible self-service options at everyr stage of the student aid lifecvcle. FSA will emphasize a mobile-first, mobile-complete strategv enabling and encouraging customersto fulfill all their needs on mobile devices complemented bv web, phone, chat, and in-person capabilities. This engagement laver will foster a life-long relationship with customers, from before thev applv for aid as high school students through when thev plan for their children and grandchildren?s education. It will transform FSA into a trusted source of information and greatlv simplifv the process of helping customers choose the best options to help them manage their student debt. In addition, the creation of standardized svstems, processes, and procedures?combined with the inclusion of clear performance expectations tied wherever possible to explicit contract incentives and disincentives?is expected to simplifv oversight of vendor performance and better ensure compliance with consumer protection and customer service standards. The Next Generation Financial Services Environment would provide customers a seamless, world-class experience with FSA from application through repavment, a mobile-first, mobile-complete experience that allows cu stomersto seamlesslv interact with make informed decisions abouttheir educational experience, and improved back-end technologv and operations,to allow innovate how it interacts with customers and the tvpes of products and services it can offer. FSA plans to leverage the latest in middleware, processing, data storage, and securitvr to create a more efficient, cost-effective, and secure technical infrastructure. lallihile Federal student loans are uniquelv complex, the Department believes that leveraging modern commercial engagement and technical capabilities is likelv to reduce operating costs over the long-term, once the solution is fullv implemented. FSA has issued and will continue to issue solicitationsfocused on account processing and loan servicing in 2018. Significant customer-facing milestones will be realized throughout 2019. The Department plans to have significant elements ofthe Next Generation Financial Services Environment in place priorto the expiration ofthe current servicing contracts in 2019. REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS Solving the Federal Cybersecurity Workforce Shortage Department of Homeiono? Security and the Office ofMonogement and Budget Summary of Proposal: The Federal Government struggles to recruit and retain cybersecurity professionals due to a shortage of talent along with growing demand for these employees across the public and private sectors. The Department of Homeland Security and the Office of Management and Budget working in coordination with all Federal departments and agencies, will establish a unified cyber workforce capability across the civilian enterprise. This Administration will work towards a standardized approach to Federal cybersecurity personnel, ensuring Government-wide visibility into talent gaps, as well as unified solutionsto fill those gaps in a timely and prioritized manner. THE CHALLENGE The Federal Government strugglesto recruit and retain cybersecu rity professionals due to a shortage of, and growingdemand for, cybersecuritytalent across the public and private sectors. The workforce shortage compounds the Govern ment?s challenges in responding to a constantly evolving th reat environment and achieving its many IT-dependent missions. In the past, each Federal department and agency was responsible for addressing its own cybersecurity workforce gaps independently, which has led to disaggregated and redundant Federal programs. As a result, the Government lacks a comprehensive, risk-den?ved understanding of which cybersecurity skillsets the Federal enterprise needs to develop and which positions are most critical to fill. Moreover, the manner in which departments and agencies recruit, hire, train, retain, and compensate cybersecurity personnel varies by agency. This uneven approach has created internal competition for talent, which in turn creates disparities and discontinuities that degrade agencies? ability to defend networks from malicious actors and respond to cyber incidents. A unified approach to attracting and retaining cybersecurity talent within the Federal Government would better support the Government?s cybersecu rity enterprise. Finally, there have not been continuous, strategic investments made in U.S. education programs to strengthen a pipeline forfuture cybersecurity talent. The abundance of redundant Federal programs focused on strengthening cybersecurity education illustrates how the Government?s role building the cybersecurity talent pipeline remains ill-defined. THE OPPORTUNITY This Ad ministration can strength en Federal cybersecurity and improve agencies? abilityto carry out their missions by identifying and closing workforce gaps in the near term, and can ensure long-term viability by buildingthe cybersecurity talent pipeline. 103 DELIVERING GUUERNMENT SULUTIDNS IN THE 11!? CENTURY WHAT PROPOSING AND 1liliHY'lT?S THE RIGHT THING TO DO To improve recruitment and retention of highlv qualified cvbersecuritv professionals to the Federal Governm ent, this Administration will develop a standardized approach to id entifving, hiring, developing, and retaining atalented cvbersecuritv workforce in atimelvr and prioritized manner. In the near term, this Administration will prioritize and accelerate ongoing efforts to reform the wav that the Federal Government recruits, evaluates, selects, pavs, and places cvber talent across the enterprise. Toxing Stock ofthe Current Cybersecurigr Workforce and identifying Gops Human Capital personnel from across the Executive Branch are currentlv working with the Office of Personnel Management to categorize the Federal cvbersecuritv workforce, using the National Initiativefor vaersecuritv Education vaersecuritv Workforce Framework Framework, as required bvthe vaersecurithorkforce Assessment Act of 2015]. Bv Fall 2018, the Federal Government will have catalogued the entire cvbersecuritv workforce to better understand our current set of knowledge, skills, abilities, and identifv anyr gaps; this catalog will give us Government-wide insight into where our most pressing needs are, and, for the first time, enable the development of an enterprise-wide approach to the recruitment, placement, and training of cvbersecuritv talent. Usingthe NICE Framework analvsis, the Federal Government will be able to determine which workforce gaps are most critical to address the current landscape. DHS, asthe lead agencvfor the protection of Federal IT networks, is best positioned to drive this prioritization with Federal agencies and OMB. Bv the first quarter of Fiscal ifear 2019, all CFO Act agencies, in coordination with DHS and OMB, will develop a list of critical vacancies across their organizations. Bv the end of FY 2019, all CFO and non-CFO Act agencies will have a prioritized list of critical vacancies. OMB and DHS will analvze these lists and work with OPM to develop a whole-of-government approach to identifving or recruiting new emplovees or reskilling existing emplovees in FY 2019. Deveioping innovotive Recruitment, Retention, and Strotegies As agencies prioritize their cvber workforce needs, thev will likelvr need to adopt innovative hiring techniques to ensure the best and brightest cvbertalent can enterthe Federal Government. To addressthis challenge, the Department of Homeland Securitv received authoritv, through the 2014 Border Patrol Pav Reform Act, to modernize the traditional personnel svstem. With this new authoritv, DHS is working to create a new Federal hiring svstem called the vaer Talent Management System exempting DHS from manv of the requirements and restrictions in existing law underTitle 5 for hiring and compensation of cvbersecuritvr professionals. With an agile and innovative personnel svstem, DHS will be better equipped to compete for cvbertalent with the private sector?speeding up the hiring process, attractingtalent from non-traditional educational backgrounds, usinginnovativetoolsto assess applicants, and offering more flexible performance-based compensation. DHS will also be able to align prospective cvbersecuritv talent to the most pressing cvbersecuritvr needs and will allow these technical professionalsto accelerate their careers as rapidlv as their aptitudes allow. n orderto implement CTMS, bv the first quarter of FY 2019 OMB, through its Office of Information and Regulatorv Affairs will work with DHS to promulgate the necessarv regulatory,?r notices. Bv the end of FY 2019, DHS will work REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS with OMB and all Federal agencies to measure the performance of CTMS and determine how to expand the system so that all departments and agencies can leyerage it to address their personnel gaps. One of the main hindrances to a seamless entry into the Federal Goyernment is the security clearance process. Th su ccess of this initiatiye partly in ges on the success of th Goyernm ent?s security clearan ce reform initiatiye, as discussed in a separate Executiye Branch reorganization proposal in this Volume. In addition tothe Goyernment-wide security clearance solution, 0MB, DHS, and 0PM will work with agencies to reyiew workforce characteristics to rationalize security clearance requirements in order to expedite the yetting and on board ing process. The NICE Framework Federal workforce assessment is expected to confirm what has been known for some time: that cybersecurity employees? skills and competencies yary across the Goyernment. 0M will consult with DHS to standardize training for cybersecurity employees, and will work to deyelop an enterprise-wide training process for Goyernment cybersecurity employees. As part ofcreating a mod em hiringand compensation system that rewards cyber expertise, the Executiye Branch should also eyaluate opportunitiesto make cybersecurity positions more mobilethan traditional Goyernmentjobs. Flexibilities that allow workers to easily moye from one position to another, or from one agency to another, would appeal to cyber talent in the agile and fast-paced cybersecurity industry. This mobility is also useful during a major cybersecurity incident, allowing agencies to surge capacityfor incident response actiyities. 0MB, in coordination with departments and agencies, will deyelop a work plan to implement this initiatiye bythe end of Pi? 2018. Departments and agencies will begin to exercise these authorities by the end of FY 2019. As an alternatiye or supplement to surge capacity, a mobile workforce will allow agencies to surge capacity forincident response actiyities. 0MB, DHS, and DOD will eyaluate what workforce gaps might existthat would be needed during a major Federal cybersecurity incidentto detenninethe requirements for a Federal cybersecurity reseryist program. As part ofthis analysis, 0MB, DHS, and 000 will eyaluate the existing authorities of Federal agencies to rapidly mobilize talent, including those ofthe U.S. Digital Seryice, which recruits talent from the priyate sector. These organizations will also eyaluate the feasibility of extending a reseryist program to support non-Federal major cybersecu rity incidents within the United States, such as those affecting critical infrastructure. These programs will be coordinated with existing cyber seryices, including those in the National Guard. Empioyees to High-Voiue Cybersecurity Roies In addition to hiring new cybersecuritytalent, the Goyernment must look for opportunities to maximize the potential of its existing workforce. Th is includ es efforts to reskill employees whose skills haye become less releyant due to automation. 0MB, DHS, and 0PM will build aptitude and skills assessments to identify and select current Goyernment staff who can be reskilled to fill critically-needed cybersecurity jobs. By reskilling the current workforce, agencies will be able to quickly shift its workforce into the highest-priority yacancy gaps. OMB and DHS will establish a job reskilling work plan by the first quarter of FY 2019. OMB and DHS will then update the CIO Council on a quarterly basis on the implementation ofthe reskilling work plan. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" Buiio?ing Pipeiine onybersecurity Toient While solving the immediate needs of the Federal workforce is a major challenge, the Administration will also work to educate America?s vouth to build an enduring cvbersecuritv talent pipeline. As part of the FY 2020 Budget development process, 0MB will evaluate options to rationalize the size and scope of current Federal cvbersecuritv education programs, including the National Science Foundation vaerCorps, the Scholarship for Service program, the National Securithgencvr Centers for Ac ad emic Excellence program, NSF and Genvaer Program, th Department of Lab or?s apprenticeship program, vaersecuritv Education and TrainingAssistance Program, the US. Armv vaer Center of Excellence, and the U.S. Navyr Information Operations Command program, among others. While the cvbersecuritv workforce shortage has been a known challenge for Federal agencies, no other Administration has taken a whole-of-Government approach tofixing it. OMB and DHS lookforward to solving this major challenge through smart analvsis and creative solutions. REFURM PLAN AND REDRGANIEATIDH RECUMMEN DATIDNS 111 The GEAR Center Government-wide 1319 Summaryr of Proposal: This proposal would establish a public-private partnership to help the Government respond to innovative technologies, business practices, and research findings that present opportunities to improve mission deliverv, services to citizens, and stewardship of public resources. The Government Effectiveness Advanced Research Center would be a on-governmental public-private partn ership that would en gage researchers, academics, non -profits, and private industrv from disciplines ranging from behavioral economics,to computer science, to design thinking to use creative, data-driven, and interdisciplinarv approaches to re-imagine and realize new possibilities in how citizens and Government interact. THE CHALLENGE Most Federal Government entities and programs were designed manv decades ago, while still others have their organizational roots aligned to the missions of the 19?? Centurv. Their designers could not have anticipated how technologv and societv would evolve or how the mission demands on the Federal Government would evolve in the 215t Centurv. Government has also been slower than the private sector to adapt operations to new realities. The bottom line is that the Government hasfallen behind the curve, with reported decreases in trust1 and lower customer satisfactionl. The inabilitv to keep pace with the private sector on adoption of technologv has likelv contributed to these failures to meet expectations as well as inef?cient se of resources. This proposal makes progress toward afuture vision ofa more efficient and effective Government that provides a level of service that citizens deserve. Although disparate research is available in the public and private sector, there is little work directed toward providing a forward-looking view on how the operating entities of Executive Branch should evolve management practices for the Centurv. The Executive Branch currentlv lacks the capabilityr to work with State and local governments, businesses, and institutions of high ereducation to assess the [on g-term strategic needs of the Government enterprise, and to ?test and learn" how to innovative approaches to meeting the mission, service and stewardship needs of the 215L Centurv. This capabilityr is needed to effectivelv applv theoryr to practice in a low-risk environment. THE OPPORTUNITY The GEAR Center would be a public-private partnership bringing together experts from disciplines rangingfrom behavioral economics, to computer science, to design thinking, in orderto take a creative, data-driven, and interdisciplinarv approach to imagining and realizing new possibilities in how citizens and government interact. 1 Pew Research Center, Mav, 2017, ?Public Trust in Government Remains Near Historic Lows a Partisan Attitudes Shift.? 1 ea csi.o ews?an d?resourc esfcustomer?satisfa ction csi ?retail?repo rt?2 017. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY WHAT PROPOSING AND WHY THE RIGHT THING TO DO To establish the GEAR Center, the General ServicesAdministration could, for example, issue a new Challenge under the America COMPETES Act3, and as a parallel effort, issue a Request for Information (not leadingto a traditional contract but to get more information on the art ofthe possible] to maximize inputfrom the public, universities, and industrv to sh ow transparencv while promoting innovation from the largest group possible. New ?Challenges" under the America COMPETES Act provide agencies with the authoritv to conduct prize competitions to spur innovation, solve tough problems, and advance their core mission. Prize competitions under this new statute mav be funded jointlv bv more than one agencv and bv the private sector. These challenges can be monetaryr or non-monetarv, and thev allow for multiple phases of engagements, ideations, and competitions. The America COMPETES Act authoritv offers a flexible and fast method to obtain inputfrom a wide swath ofthe public, including industrv, non-profits, universities, and other entities. Based on the results ofthe Challenge, the GEAR Center could be established at a universitv, think tank, or other prominent research institution as a public-private partnership to inform critical areasfor programs and services to meet the needs of the American public. The GEAR Center would call upon researchers, academics, non-profits, and private industrv to help test hvpotheses, rapidlv prototvpe new strategies and models, and help the Government anticipate and respond to changes in technologv with implications for service to citizens and Government mission. The Center would provide the Federal Government with the opportunitvr to not onlv catch up to where the private sector services and capabilities are todav, but to lavr the groundwork for where Government operations and services need to be in five, 10, or 20 vears or more bv bringing together researchers, academics, non-profits, and private industrv to inform leaders in the Federal Government ofthe future deliverv models for programs and services th at meet the needs ofthe American public. This Center will enable the testing of hvpotheses and shape future direction in order to help the Government anticipate and respond to changes in technologv and societv with implicationsfor how the Government can better serve its citizens. For example, the GEAR Center could examine the impacts to Government that are likelv to occur due to broader economic forces self-driving cars, automation], improving service in programs that rate the worst in terms of public feedback immigration svstem, farmers], and exploring strategies to leverage Big Data and manage data as an asset across Government silos. Developing this capacitv supports innovation as an engine to transform the public?s experience with Government. Researchers will validate andfor develop improved wavsto serve the needs and desires of the customers of Government services, and rethink the experience of Government-public interactions. 3 TheAmerica Creating Dpportunitiesto Meaningfullv Promote Excellence in Technology, Education, and ScienceAct of or Ameri ca CD MPETE 5 Act was signed by Presid ent George W. Bush and became law on Au gust 9, 2007. This was an Act, ?To invest in innovation through research and development, and to improvethe competitiveness of the United States.? On Januarv4, lull, PresidentBarack Dbama signed into law theAmerica CDMPETES Rea uthorization Act of 2010. REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS Further, the GEAR Center would provide capacityr to explore questions concerning how Government can best harn ess technological ad vances to address evolving challenges concerning citizen interactions with the Government, Federal workforce skillfreskilling requirements, the leveraging of Big Data, and collaboration with the private sector via grant-makin g, procurement and public- private partnerships. In addition, it would explore opportunities to better integrate public and private sector innovative fee for service and co-investment models to ensure that infrastructure for the digital age receives appropriate investments and attention. DELIVERING GDUERNMEHT SDLUTIDNS IN THE 215" Transfer of Background Investigations from the Office of Personnel Management to the Department of Defense U.S. Office afPersanne! Management and Department afDetense Summary of Proposal: That the National Background Investigations Bureau currently und er the Office of Personnel Management be transferred to the Department of Defense THE CHALLENGE The placement and performance of background investigations for the Executive Branch has been an evolving and open issue for years. - In October 2016, the National Background Investigations Bureau was established to succeed the Office of Personnel Man agement?s Federal Investigative Services The NBIB absorbed the background investigation capabilities, inventory, and operational challenges, and began the conduct of background investigations for 95 percent of Executive Branch agencies. - In August 201?, an implementation plan was provided to the Congress for DOD to conduct background investigations for DOD personnel, pursuant to the National Defense Authorization Act for Fiscal Year 201? 114-328]. - In December 201?, the NDAA for Fiscal Year 2018 {?925{b] of P.L. 115-91] was enacted into law, legislating a phased transfer of DOD background investigations conducted by BIBfrom DOD. The pending transfer of DOD Investigations from NBIB comprises TD percent of background investigation volume and raises questions with Government-wide implications regardingthe remaining 30 percent. With no easy or obvious answers regarding the placement of the 30 percent, the Security, Suitability, and Credentialing Performance Accountability Council principal agencies DOD, the Office of Management and Budget, and the Office of the Director of National Intelligence] initiated an interagency review to determine a path forward. THE OPPORTU This proposal would transfer the NBIB background investigation program, currently under 0PM, to DOD. The transfer provides the opportunityto achieve an ef?cient, effective, fiscally viable, and secure operation that meets all agencies? needs. It avoids a variety of potential problems inherent in splitting the existing program into two pieces, and provides the means to achieve bold, transform ative reform in the mannerin which background investigations are conducted. The opportunity exists to improve timeliness, strengthen management of sensitive information and ensure a more trusted workforce. REFORM PLAN AND REDRGANIEATIDH RECUMMEN DATIDNS 115 PROPOSING AND THE RIGHT THING TO DO The Administration recognizes that background investigations are critical to enabling national securityr missions and ensurin gpublic trust in the workforce across th Government. The congression allv mandated transfer of T0 percent of background investigation caseload has significant implications for the con duct of backgroun investigations Govern ment-wid e. Add itionallv, th mandate comes at a time when significant challenges in securitv, suitabilitv, and credentialing processing continue to adverselv affect Government operations. The background investigation inventoryr has risen to approximatelv 725,000; the average Top Secret background investigation takes four times longer than the target completion date; and costs have risen more than 40 percent since Fiscal Year 2014. This is an unsustainable wav to do business. How is the time for bold, transformational change in how we vet our workforce. To that end, the Administration has concluded that to achieve an efficient, effective, fiscallvr viable, and secure operation that meets the needs ofthe Executive Branch, it is necessarvfor the background investigation program to remain consolidated through a complete transfer of NBIB to DOD. Given the urgencv and complexityr ofthe issue, the Administration believes this transfer is the right thing to do because: - Consolidation retains ?economies of scale?. Keepingthe program together prevents unnecessaryr duplication of functions headquarters, back office, etc .I, removes operational complexitv, and provides increased opportunitiesfor centralization and specialization that will increase continuous process improvement benefits. - Residing within DOD facilitates better leveraging of existing enterprise capabilities. DOD alreadvr provides capabilities to the enterprise bv servicing industrial securitv clearances for 31 agencies through the National Industrial Securitv Program, and manages adjudicationsfor four agencies through the DOD Consolidated Adiudications Facilitv. DOD alreadv has strong, established research and training programs under the Personnel and Securitv Research Center and Center for Development of Security:r Excellence, is developing continuous evaluation capabilities that will benefit non-DOD agencies, and has a global footprint that is well-suited to the increased need for international contact and emplovment investigations. Drawing on significant national securitv, IT, and cvbersecuritv expertise, DOD is also responsible fordesigning,building, securing, and operating, a suite ofend-to-end vettingshared services to be made available to all Executive Branch agencies. - Trulv bold and transformational reforms are more achievable through consolidation. Despite improvements, the Federal government?s vetting policies, processes, and tools, have failed to keep pace with emerging technological capabilities and opportunities to continuouslv identifv, assess, and integrate kev sources of information. Reform initiatives chartered bv the Securitv and Suitabilitforedentialing Executive Agents are underwav to revamp the fundamental approach and supporting policv framework, overhaul the business process, and modernize the information technologv architecture. Implementation of these reforms across a single, consolidated provider can best serve the sustain ment of a trusted workforce for the Nation. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" CENTURY The Administration will take the requisite executive actions to ensure the background investigation program remains consolidated within DOD. Transition planning and implementation over the next several years will be critical to success and will involve interagency cooperation and coordination. The PAC will provide oversight ofthattransition, and will continue to be accountablefor ongoingreform of the broader Executive Branch vetting program, including background investigations. The existing Security Executive Agent {the Director of National Intelligence] and Suitability and Credentialing Executive Agent {the Director of will continue to fulfill their respective policy and oversight roles for the security, suitability, and credentialing enterprise. REFURM PLAN AND REDRGANIEATIDH RECUMMEN DATIDNS 11}r Strengthening Federal Evaluation Government-wide Summaryr of Proposal: Brin ging evid en ce to bear in decision -making is a critical component of good government. However, there are large gaps and inconsistencies across Federal agencies in their abilityr to formally evaluate their programs. These reforms would expand upon existing capabilities and push agenciesto adopt stronger practicesthat would generate more evidence about what works and what needs improvement in orderto inform mission-critical decisions and policies. THE CHALLENGE Decisions about how best to allocate taxpaverd ollars and improve government services involve a complex set of factors, including political priorities, resistance to change, and the availabilityr of credible evidence. In manyr policv domain s, however, we lack keyr information on program effectiveness that could help the Congress and the President make better decisions. Program evaluation is a valuable tool that can help us learn what works in orderto focus limited funding on effective programs, discontinue programsthat fall short of desired results, and identifv wavs to improve continuallv funded programs. For example, a decade of rigorous evaluations of the Maternal, Infant, and Early Childhood Home Visiting Program demonstrated positive impacts and future savings that warranted scaling up the program. In contrast, Project D.A.R.E., a substance abuse prevention program for adolescents, lost all Federal fundingfollowing several high-quality evaluations that determined the program was ineffective and in some cases had negative effects. These examples illustrate how, absent program evaluation, we would not know whether what we think works, does in fact work. ?fet, building evaluation into program design so that we can learn and improve is currently the exception rather than the rule, and there are no formal Government-wide incentives, expectations, or guidance to Federal agencies regarding program evaluation. We must increase the capacity of Federal agencies to conduct evaluation and fill a critical gap in the Federal govemment?s abilityr to generate evidence about what works and how we can improve programs. This will lead to more and better information that the Congress and the President can use to make decisions about how to best spend taxpayer dollars and provide services for our citizens. THE OPPORTUNITY Passage ofthe Foreign Aid Transparencv and Accountabilithct of2016 set an important precedentthat our Nation must have expectationsfor monitoring and evaluatingforeign assistance programs. guidance for these programs {see was a first step, but there is much more that can be done across Government. We must set standards for evaluation across all program activities and agencies so that Federal agencies, 0MB,the Congress, and taxpavers have critical information about the effectiveness of Government programs and policies, which will lead to improved services, increased ef?ciencies, and a greater return on investment. 113 DELIVERING GUUERNMENT SULUTIDNS IN THE 11!? CENTURY WHAT 1liliE?RE PROPOSING AND WHY THE RIGHT THING TO DO The Congress is increasingly compelling agen cies to focus fun ding on evidence-based programs that we know work. Executing this vision requires evaluation to answer essential questions regarding program effectiveness and cannot be answered through performance measurement, statistics, or data analvtics alone. Unlike Federal statistical and performance functions, there is no formal Federal svstem or underlving infrastructure to support evaluation. As a result, there are manv programs and policies across the Government for which we have no evidence on program effectiveness, thus making evidence-based policvmaking difficult. If we expect agencies to test innovative strategies and execute effective programs, we must enhance Federal agencies? abilitv to conduct program evaluation and other evidence-building activities. The bipartisan Commission on Evidence-Based Policvmaking?s recommendations and subsequent draft legislation would furtherthese goals. However, manvof the necessarvimprovements can be accomplish ed administrativelv. Doing so will require a change in Federal agencies? cultures and standard operating procedures so that program evaluation is integrated into program design, and evaluation experts are part of decision-making processes. We must strengthen the role of program evaluation and better understand how we are investing in evaluation across the government. At minimum, 0MB intends to ask Federal agencies to: - Designate a senior official responsible for coordinatingthe agencv?s evaluation activities, learning agenda, and information reported to 0MB on evidence. This official must have expertise and experience in program evaluation, which is a different skill setthan performance, statistics, and other agencv functions. One approach that has worked well in some agencies is to create a centralized independent evaluation office and designate a senior career official to lead this office who is given lead responsibilitv for evaluation at the agencv. Other agencies have multiple sophisticated evaluation offices serving different components. - Document the resources dedicated to program evaluation. If taxpavers, the Congress, or the Administration were to ask how much is currentlv spent on program evaluation, we would not be able to state an amount nor easilvr calculate a reasonable estimate. Absent this information, we cannot know where our investments in evaluation are adequate and where we are under- or over-investing. We must also strengthen the Government?s abilitv to build and use a portfolio of evidence, including program evaluations,to inform decision-making. To dothis, 0MB will provide direction and set expectations that encourage agencies to: - Strengthen the qualityr of the information provided to OHS on evid ence-building activities. including program evaluation, as part ofthe annual budget process. Currentlv, agen cv submissions varv greatlv in qualitv and completeness. If improved, however, theyr could be a useful wav for ONE to understand agencies? current and planned evidence-building activities, the evidence base behind kevr priorities, and evidence gaps that should be addressed. Bv designating a senior official at agencies with relevant experience responsible for this submission, 0MB expects the qualitv and breadth of submitted information will improve and better inform the budget and policvmaking processes. REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS - Establish and utilize multi-year learning agendas. Learning agendas are a powerful tool that allow Federal agencies to strategically plan eyaluation and other eyidence-building actiyities oyer a multi-year period. The structured agenda setting process requires coordination within an agency to identify priority research questions and knowledge gaps. Learning agendas should be informed by key stakeholders and the public, and the resulting documents should be made ayailable to the public to promote tran sparency and accountability. The studies, eyaluation s, and other learning th at results from these agendas should be shared within the agency and with other stakeholders, 0MB, the Congress, and the public in order to facilitate policy and program improyement. A broad consensus has emerged regardingthe importance of eyaluation as a key part ofeyidence-based policymaking. We acknowledge the potential risk that establishing a more formal structure for Federal eyaluation could introduce administratiye rigidity and complexityin ways that may detract from inn oyation in the small number of agencies already excelling in this area. During implementation, howeyer, we could mitigate this risk by allowing appropriate flexibility, recognizing the unique circumstances and capacities of yarious agencies, and soliciting input from stakeholders both inside and outside of the Federal Goyernment. DELIVERING GDUERNMENT SDLUTIDNS IN THE 215" CENTURY Let President Trump reorganize the government like a business.? Michelle Delaware APPENDIX: REFORM PROPOSALS DEPARTMENT OF AGRICULTURE Reorganizing theAgricultural Marketing Service As part of the U.S. Department ongriculture?s internal reorganization effort, it has undertaken significant changes to the Agricultural Marketing Service to improve customerengage- me nt, maximize efficiency, and improve agency collaboration. The Packers and Stockyards Program, Federal Grain Inspection Service, U.S. Warehouse Act Program, and International Commodity Purchas- ingwere transferred to the Agricultural Marketing Service as new program areas in 2018. Realigning Mission Areas The USDA has begun realigning and consolidating certain offices into more logical organizational reporting The realign- me nt has included the creation of an Under Secretary for Trade and Foreign AgriculturalAffairs, an Assistant to the Secretary for Rural Development and an Under Secretary for Farm Production and Conservation. Additionally, USDA is mergingthe CenterforNutrition Policy and Promotion into the Food and Nutrition Service These effortswill improve service delivery by providing a simplified one-stop shop for farm erand rancher customers, advance agriculturaltrade and address the needs of Rural America. DEPARTMENT OF ENERGY Strea mline Environmental anagement Headquarters Organization This effort will review the Environmental Management organiza- tional structure to identify opportunities to streamline the manage- me nt team. EM will specifically review supervisor-to-worker ratios, skill gaps, and cost reduction measures such as consolidatingfacili- ties and reducing administrative support. This proposal focuses on completion ofthe EM clean-up mission in an efficient and cost-effec- tive manner. Consolidate International Staff Under Office oflnternationalAffairs The Department is consolidating international affairs offices from applied energy programs into the headquarters Office of IntemationalAffairs. This effort ce ntralizes staff and resources with technical expertise and foreign affairs policy knowledge to advise on and carry out the Department?s intemational engagement efforts. Merge Shared Service Centers and OtherActivities The Department continues to merge Human Resources Shared Service Centers, consolidate human capitalfunctions across the DOE enterprise, and merge DOEtraining and development functions. This effortwill streamline processes, reduce costs, and improve services. Office ofScience Restructuring The Department of Energy?s Office of Science is evaluating several proposals to merge and consolidate field and headquarters activities to improve efficiency and reduce costs. Potential options for con- sideration include: merging geographically associated site offices, reorganizingthe Integrated Service Centers; realigning safety and technical se rvices; streamlining the Office of Science organization; and reducing staff andfor administration support costs. DEPARTMENT OF HEALTH AND HUMAN SERVICES Optimize National Institutes Health Restructure administrative functionsto ensure operations are effective and efficient. This initiative represents the largest change management initiative in the history of NIH, and will align man- agementwith best practices and break down administrative silos through standardization of structures and processes age ncy-wide. Consolidate Health Research Programs into National Institutes of Health Integrate the research of three programs into NIH - the Agency for Healthcare Research and Quality the National Institute for Occupational Safety and Health and the National Institute on Disability, Independent Living, and Rehabilitation Research to improve research coordination and outcomes. These entities would be initially established as three new NIH institutes: the National Institute for Research on Safety and Quality, the National Institute for Occupational Safety a nd ealth, including the Energy Employees Occupational Illness Compensation Program; and the National Insti- tute on Disability, Independent Living, and Rehabilitation Research. NIH will assess the feasibility of integrating health services research activities more fully into existing NIH Institutes and Centers overtime. Reorganize the Strategic National Stockpile to the Assistant Secretaryr for Preparedness and Response Restructure the Centers forDisease Controland Prevention to ASPR to consolidate strategic decision making around the develop- ment and procurement ofmedical countermeasures, and streamline operational decisions during responses to public health and other emergencies and improve responsiveness. This reorganization is intended to enhance enterprise effectiveness by more fully integrating the Stockpile with other preparedness and response capabilities. DEPARTMENT OF HOMELAND SECURITY OHS Air S: Maritime Progra ms This proposalwould identify efficiencies and budgetary savings to be achieved by eliminating unnecessary duplication between U.S. Customs and Border Protection and U.S. Coast Guard air and maritime programs. This could include facility consolidation, stan- dardized data, enhanced domain awareness and coordination, and common future capability requirements. REFDRM PLAN AND REDRGANIEATIDN RECDMMENDATIDNS Coordinated perations, Planning 31 Intelligence This proposalwill evaluate how DHS headquarters and components will produce information and intelligence that is comprehensive, cur- rent, coordinated, operationally-focused and analytically-defensi- ble, and increase the effectiveness ofcoordinated operational plans and policies. Office of Intelligence and Analysis, the Office of Strategy, Policy and Plans, and Office of Operations Coordination will explore areas such as analysis overlap, duplication andforfrag- mentationgjoint and integrated strategies and operations, common operating picture and alert warning; and operations centers overlap, duplication andforfragmentation. National Bio and Agro-Defense Facility Transfer from OHS to USDA This F?r? 2019 Budget proposal would transfer operational responsibil- ity forthe National Bio and Agro-Defe nse Facility from Science and Technology Directorate (SSJJI to USDA?sAgricultural Research Service in F?r' 2019. DHS would finish the construction and commissioning ofthe laboratory facility, while USDAwould oper- ate the facility in the future. Organizing Head quarters Function 5 This proposalwould identify how DHS Headquarters can more effectively align Business Support and Mission Support functions to support Homeland Security mission delivery by enabling: strate- gic governance, oversight, policymaking, and internal and external coordination; and strengthening service and delivery ofthe busi- ness support and mission support functions to the Department. In tandem, the DHS Management Directorate is advancing agency-wide initiatives such as field efficiencies, modernizingfinancial systems and processes, and SOC consolidation. DEPARTMENT OF HOUSING my" AND URBAN DEVELOPMENT Reform Rental Assistance HUD is seeking legislative reforms to decade s-old rent policies that are confusing and costly, and often failto support HUD-assisted indi- viduals in increasing their earnings. Making Affordable Hous- ingWork Act would offer public housing authorities property owners, and HUD-assisted families a simplerand more transparent set of rent structuresto reduce administrative burden, incentivize work, and place rental assistance programs on a more fiscal- ly-sustainable path. Consolidate Headquarters Offices HUD spends approximately $11.3 million peryear onfour leases within walking distance of its main headquarters at the Robert C. Weaver Federal building. HUD is in the process of consolidating these satellite offices into the reducing its real property footprint and annual leasing costs. DELIVERING GOVERNMENT SDLUTIDNS IN THE 215" DEPARTMENT OF STATE Modernizing IT, HR Operations, and Data Analytics The State Department seeks to advance information technology modernization, including: allowing real-time collaboration; strengtheningworkforce readiness and performance management; and improving enterprise-wide data availability. This will involve enhancing data analytics to better inform decisions and investing in and implementing cloud technologies to allow employees to work more easily from any location, improve cyber security, streamline work processes, and consolidate duplicative systems. Cloud imple- mentation has been underway since the end of 201?. By the end of March 2018, the Department had already migrated 16.5 percent of user mailboxes to cloud-based e-mail. This effort will also seekto improve connectivity between the State and United States Agency forlnternational Development platforms, thus ensuring increased collaboration and information access to improve effective- ness and efficiency. Leadership Development and Training The State Department seeks to enhance leadership training and development opportunities. To this end, the Foreign Service Insti- tute is working to modernize and expand formal leadership training forall levels ofthe workforce and is implementing a program of mid- level leadership projects. The Leadership Advisory Board is review- ing the Department?s Leadership and Management Principles and promoting leadership development activities more broadly. Special Envoys The State Department is integrating selected envoys and special representative offices into the regional and functional bureaus, and eliminating those envoys and representatives that have accom- plished their original purpose, or have overlapping roles and responsibilities. This effort will empowerregional and functional bureaus? policy direction, provide clarity in reporting authority, and strengthen communication channels. In consultation with the Con- gress,1? such offices are being realigned as of May 2018. Enhance Global Presence and Policy Processes The State Department seeks to improve oversight ofthe U.S. Govern- me nt?s global presence under Chief of Mission authority, including enhanced interage ncy coordination to foster increased collaboration and oversight. The goal is to ensure the most efficient allocation of personnel consistent with U.S. interests around the world. State and USAID will work together to advance ta rgeted reforms in this area, where changes are mutually reinforcing and can be effectively syn- chronized to maximize benefits as appropriate. Enhance Operational Efficiencies The State Department is examining ways to enhance human resources service delivery in orderto simplify processes and reduce wasted time. Enhancements will also strengthen real property man- agement both domestically and overseas, and achieve efficiencies in our acquisitions process to improve service delivery. State and USAID will work together to advance ta rgeted reforms in this area, where changes are mutually reinforcing and can be effectively syn- chronized to maximize benefits as appropriate. DEPARTMENT OF THE INTERIOR m1?? IJ Aligning DDI Regions Across Bureaus The Department ofthe Interior seeks to establish common regional boundariesforits bureaus and offices to provide better coordination across the department, focus resources in the field, and ultimately, improve mission delivery. Currently, ea ch DOI bureau manages its responsibilities using regional structures that follow different geographical boundaries. This inconsistency slows coordina- tion between DOI bureaus and offices, other Federalagencies, and the American public that DOI serves. lm proving Efficiency through Shared Services DOI is working to collocate bureau offices wherever possible and to emphasize the use of shared administrative support services across its organizational units. This will drive more efficient use of resources and ensure employees within each region and at the local level receive adequate support. Betterutilization ofthe Interior Business Center and DOl?s consolidated Financial and Business Management System will also further these objectives. DEPARTMENT OF THE TREASURY Consolidate Alcohol an Tobacco Enforcement at Treasury The F?r? 2019 Budget proposes to transfer all alcohol and tobacco responsibilities from the Department of Justice?s Bureau of Alcohol, Tobacco, Firearms and Explosives to Treasury?s Alcohol and Tobacco Tax and Trade Bureau This transferwould leverage resources and expertise relating to the alcohol and tobacco industries and allow ATF to continue to focus on its firearms and explosives mandates, enabling both agencies to more efficiently and effectively carry outtheir core missions of prote ctingthe public. gr 0 DEPARTMENT UP TRANSPORTATION Shared Services The Department of Transportation is taking a comprehen- sive look at implementing a shared services modelfor acquisitions, human resources, information technology, and motor vehicle pools across the Department. DOT is also working to consolidate office space and leases. DST Streamlining DOT is committed to rightsizingthe Office ofthe Secretary which plays a critical role in overseeing Operating Administra- tions To better support the OAs, offices and positions will be consolidated in areas such as research and development. Workforce Development DOT workforce development grants will be transferred to the new Department of Education and the rce to centralize work- force development policy and to deliver more efficient and effec- tive outcomes. DEPARTMENT OF VETERANS AFFAIRS Electronic Health Record Modernization This willtransition the Department of Veterans Affairs to a new Electronic Health Records system allowingfor interoperabil- ity betwe en the Department of Defense and VA, a nd other community providers. The new system will permit efficient exchange of patient health information as military servicemembers transition from DOD to VA healthcare, and will enhance the coordination of care forveterans. Having a veteran?s complete and accurate health infor- mation in a single common EHR system is criticalto that care, and to patient safety. The new EHR system will enable VA to easily adopt improvements in health information technology and cyber security, which ?v?A?s current system is unable to do. Community Care To ensure veterans get the right care, atthe right time,with the right provider, the TmmpAdministration and VA have worked closelywiththe Congress and vete ran Service Organizations {?v?SOs} to create legisla- tion to merge all of?v?A?s community care efforts, including the Choice Program, into a single, streamlined Federal program. The new commu- nity care program will improve veterans? experiences and healthcare outcom es and transform ?v'A into a high-performing and integrated 215't Century healthcare system for more than 9 million veteran enrollees. Appeals Modernization ?v'A is undertaking an initiative to replace its current claims appeals process, adopted afterWorld 1Al'ar l, which is slow, complex, and confusingforveterans to navigate. In an effort to enhance veterans? experience, VA is accelerating implementation of a new system under which veterans have the option to submit appeals using one of three lanes based on their unique circumstances. Fin ancial Ma nagem ent Business Transformation This ambitious effort willtransform ?v?A?s financial management business processes and systems using an integrated approach. A modern integrated financial management and acquisition solu- tion will enhance transparency, data accuracy, and improve fiscal accountability across the department, and will provide opportunities to improve the care and services provided to veterans. Legacy IT Systems Modernization Many of the 130 legacy information technology systems that ?v'A relies on to administerand deliver veteran benefits are no longer support- able, and do not meet security compliance standards orsupport new, more efficient business processes. In addition, the inability of these systems to interface with one another results in severe redundancies which, in turn, results in inefficiencies and impedes the department?s custom er service to veterans. Collectively, modem- izing legacy systemswill streamline benefit delivery and appeals processing, ensure compliance with new security and accessibility standards, and expand veteran self-service capabilities while also promoting greate rtransparency. REFDRM PLAN AND REDRGANIEATIDN RECDMMENDATIDNS Am :W?g ENVIRONMENTAL A. PROTECTION AGENCY -L af?- Tailoring State Oversight The Environmental Protection Agency will recalibrate resources devoted to oversight of State-delegated programs, includingthe role of EPA National Programs and Regions, and their respective levels of effort. EPA will recognize States as the primary implem enters and enforcement authorities where States have authorized delegation of Federal environmental programs. With input from the Environmen- tal Council of the States and the States, EPAwill streamline, reduce, and tailor its oversight activities to focus on national consis- tency and technical assistance to States as needed. Exa mining EPA Field Presen ce Afterstreamlining and tailoring State oversight activities, EPA will assess the best locations from which to provide key functions and servicesto customers. Some functions may be performed more effectively with enhanced proximity to customers, while others may be more efficient, but equally effective, if consolidated. EPAwill assess owned space vs. leasing space forfield operations. lm proving Management of EPA Laboratories EPA will review the current laboratory enterprise in an effortto ope r- ate labs in a more strategic, corporate, and efficient manner. This project starts with the identification and implementation of an ente rprise-wide fram ework to create a more agile work environ- ment and manage lab capabilities and capacityto meet the scientific demands associated with achieving the Agency?s mission more effi- ciently and effectively. GENERAL SERVICES ADMINISTRATION Federal Motor Vehicle Fleet Management The Federal Government operates more than 40 0,000 motorvehi- cle s, including cars, trucks, SU?v's, buses, and other spe cialty vehicles. The cost of operating motorvehicles can vary widely among Federal agencies. The President?s Management Agenda initiative on improv- ing mission support services includes consolidating Federal fleet management. This will reduce taxpayer costs and introduce efficien- cies into Fe deralfleet management. To achieve these objectives, the General Services Administration will conduct studies of agency fleets to identify recommendations on improving fleet management. The study will include analysis ofoperational, maintenance, and inven- tory data to a ssess whether centrally leasing and managing motor vehicles is more cost effective than separate agency ownership and management of ve hicles. GSA studies will also identify opportunities forreducing the overall size of the Federal fleet through car sharing or other such shared activities. DELIVERING GOVERNMENT SOLUTIONS IN THE 215" NATIONAL SCIENCE FOUNDATION Introduce Two Convergence Accelerators to Support lnterdisciplina ry Research The National Science Foundation will introduce two ?Conver- gence Accelerators? that willfacilitate the age ncy?s funding ofinter- disciplinary research. The Accelerators will focus on ?Harnessing the Data Revolution? and the ?Future of Work at the Human-Technology Frontier.? Staff, budget, and resources for the Accelerators will be realigned from the current directorates and offices. Accelerator directors willbe pa rt ofthe NSF scientific leadership team. With separate staff, budget, and resources, the Acceleratorswill be primary units for conceiving, funding, and managing NSF-wide inter- disciplinary activities in these areas. OFFICE OF PERSONNEL MANAGEMENT Implement a 215?Centuryr Approach to Federal Employee Records and Data Management The Office of Personnel Management seeks to establish a secure Employee Digital Record with as close to live updates as technologically feasible. By creating a permanent EDR, OPM can drive a data collection strategy that, among otherthings, collects employee data once and uses it many times across the employee lifecycle. This willreduce redundancy, inefficient and inaccurate reporting, costly vendor management, and incomplete data that creates challenges in applying modern business processes to core HRfunctions. 1 ?at. ilf'l .9 4' NUCLEAR REGULATORY COMMISSION Merge the Office of New Reactors and the Office of Nuclear Reactor Regulation The NuclearRegulatory Commission recognizes that a merger of NRO and NRR will provide flexibility and improved agility to man- age uncertainties associated with the workloads in both the new and operating reactor business lines. As part of the merger of NRO and NRR, the NRCwill conduct an assessment oftechnical reviewfunc- tions to identify efficiencies and eliminate redundancies. M.SOCIAL SECURITY ADMINISTRATION jig?. wrap IT Modernization The Social Security Administration?s IT Modernization Plan is a thoughtful and deliberate multi-year agency initiative to modern- ize major systems using modern architectures, agile software engineering methods, cloud provisioning, and shared services. SSA is embarking on an initiative to transform the way they design and build systems, and ultimately the way they work and serve the public. The IT modernization vision is to establish a fully integrated IT and Business team that delivers modern business platforms that improve our abilityto respond more rapidly to changing needs at manageable costs. SSAwill provide an enhanced customer experi- ence for millions of beneficiaries across an expanded mix of service options in a cost effective and secure manner. Eliminate ln-Kind Support and Maintenance and the Holding Dut Policy for SSI This proposal simplifies administration ofthe Supplemental Security Income program and reduces improper payments. The pro- posal eliminates the counting of In-Kind Support and Maintenance in lieu of a flat rate benefit reduction for adults living with other adults. The proposal also ends the intrusive and burdensome ?hold- ing out? policy, which currently reduces benefits for couples that presentthemselves as married to the community. Eliminate Services to Claimant Representatives This proposalwould eliminate the Federal Government as the mid- dleman in the relationship between applicants and the represen- tatives they voluntarily hire. It would eliminate administration of fee agreements, fee petitions, and claimant representative travel. The current workload is expensive, error prone, and not core mission. In 2016, SSA spent about $122 million on the activity, but collected only about $30 million {due to a statutory fee cap} to reim- burse the trust funds. The $30 million collected is not currently part of administrative resources. Establish a Consistent National State Disa bility Appeal Process As resources permit, SSA plans to reinstate the reconsideration process in the disability determination services located inthe prototype States. Once fully implemented, SSA can return to a single nationwide appellate process. This change will allow claimants to receive benefits soonerat a lower administrative cost. In addition, it will provide some reliefto hearings backlog. Elimin ate SSI Dedicated Accounts This proposalfacilitates financial independence by eliminating dedicated accounts for past-due benefits to SSI youth recipients. It also reduces the administrative burden of monitoring expenses from dedicated accounts. Implement Metrics and Quality The proposalwould implement quantity and quality metrics for employees across SSA. This change will provide several significant benefits, including: improving productivity and accuracy; ensur- ing that employees are fully engaged in work and can learn from feedback abouttheirwork; ensuring efficient and effective use oftax- payerdollars; and helping managers better address both outstand- ing and poor performance. Implement Standard Office Design SSA is improvingfacility design to meet business requirements and reduce design and build costs foroffices while at the same time eval- uatingthe security ofthese offices. Additional Footprint Reduction SSA continues to find ways to increase real property efficiency and reduce the size of its real property portfolio. SSAwill continue to co-locate offices, consolidate space while merging components, and ensure space savings when implementingtelework. a, U. S. AGENCY FOR INTERNATIONAL DEVELOPMENT Journey to Self-Reliance USAID will realign its strategies, policies, and programs to more thoughtfully, strategically, and purposefully assist developing coun- tries in becoming more self-reliant. USAID will reorient its relation- ship with partner countries by more clearly defining expectations up front, giving more cla rity and focus to the obje ctives of assistance, and establishingta ngible and meaningful goals to which partner countries can aspire. Advance National Security This USAID effort includes three components: operating more effec- tively in non-permissive environments; preventing violent extrem- ism; and improving coordination with DOD. Empower People to Lead USAID seeks a human capital system that leverages and supports employees, enables a high return on investment, and supports workforce mobility and agility. This effort includes: management of human capital, workforce flexibility and mobility, knowledge ma n- agement; streamlining coordinators; reviewing HRfunctions; and creating a culture of accountability and learning. Respecting the Taxp ayer?s I nvestm ents USAID will maximize how each and every dollar ofthe taxpayer?s money is spent by developing systems and processes that allow for structuring presence domestically and abroad inthe most efficient way possible. REFDRM PLANANDREDRGANIEATIDN RECDMMENDATIDNS BIBLIOGRAPHY OevelopmentoFthis report and its proposalsdrewon inputfrom avarietyoFsources, including FederalstaFF,managers, and senior leaders; research institutions and thought leaders;the Individuals interested in learning more about reorganization eFiortsin government and the private sector may be interested in consulting thefollowingresources. Thislist is not exhaustive, and does notrepresent endorsementofanyone particularviewpointor publication by the U.S. Government. - Alden, Edward and LauraTaylor-Kale. ?The WorkAhead: Machines, US teadershipin thezlgCentury.? Counci lon Foreign Relations Independent Task Force, April2013, Arn old, Peri E. ?Making the ManageriaiPresidency: Comprehensive Reorganization Pianning, 1905-1395.? University Pres of Kansas, 1993. Carlisi, Cathi, et al. ?Purpose with thePower to Transform 'r'ourOrganization.? Boston Cons ltin Group, ay 1 5, 201T, tion-he- ho vior-cuiture-p urpose-po wer-trons Christens en, To and Per La egreid. ?Competing Principies ongency Organiza? tion The Reorganization ofa Reform.? rope an Group for Public Ad ministration, Sept em berT-10, 2011 ,sochuieu REED Christensen_i_oegreid.pdf Council oithe Inspectors eneral on Integrity and Efficiency. ?TopManagementand Performance Chaiienges Facing Moitipie Federai Agencies: Con5oiidated Reportoi the Offices ofinspectors Generai.? Council oFthe In spectors General on Integrity and i cy, a 2013, oversightgo visitesfdefo ui Top_ Choi- ienges_ Repor t_Aprr'i_ 20.15.de evi e, a ld J. ?Poiitioai Managemen of the Bureaucracy:A Guide to Poiitioai Reform and Con troi.? Jam son Books,20 lT. Er st&Toung. ?Winning with Purpose.? E'f Entrepren uri al Winning Women Confer - en: E, May 2013, eycomfPubiicotionfvaUAssetsff Y?p Y?p urpose-ied-orgonizo tions.pdE Egg ers, Bill, et al. ?Artificiai in and the Ru ture of Government Work.? Beloitte, February 201T. Fae ste, Lars and Jim em erli g. ?Transformation: Deiivering and Sustaining Break- through Performance.? Bo ston Cons lti Group, 2013, media -p ubiico tronsiormo tipdt Ka mensky, M. "CrossAgency Coiiahoration: A CaseStudy oi Cross-Agency Prior? ity Goais.? 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"Peopie on Peopie on Peopie: The Continued Thickemng oi Govern? ment.?The Into lcker Alliance, Otto ber201T, ot tochmentsfissue%2DPoper_ Peopie%20on PHOTO CREDITS Light, Paul C. ?The True Size of Go vern? men t: Tracking Washington ?5 Biending Workforce 1934-2015.? The Uolc ker Alli - an e, eptem be 201T, voickeroiir'onceorgy" true -size-go vernment. McKinsey Center For Government. ?Gov- ernment Productivity: Uniocking the $3.5 Opportunity.? i sey 3; Co - pany, A pril 201T, mcirinseycomf-vfmediof McKinseyfindustriesfPubiic %2DSec tori The %20opport unit y%20 in%20go vernn'ren Go vern- men Trit- ir'on- Opportunity-Fuii-reportoshx Mourkogiannis, iIto 5. ?Purpose: The tarting Poin tof Great Companies.? Palgrave Mac mi llan,2003. Muh lhau sen, 0 avid B. ?Biueprin tfor Reorganization: An Anaiy? sis ofFederai Departmen ts andAgencies.? The eritage Found ati n, June 201T, ww wheritog e. orgfb udget-ond-sp endingfrep or if biu eprin t-reorgo nizotion-ono Iysis -federoi-depor tn". ents-o rid-pg encies lhau sen, avid B. ?Biueprin tfor Reorganization: Path ways to Reform and Cross?Cuttingissues.? The eritage Foundation, June 2017, w. eritog e. orgfb udg t-ond-sp endingfrepor ti biu eprr'n t-reorgo nizotion-poth es Nohria, Nitin and ichael Beer. ?Cracking the CodeofChange.? arvard Business Review, May-J une2000, -the-code-of?chonge. Ra ls er, To m. for Nonprofitsley, 2009Major Trends in HR Shared Sevioes. HR Trends Institute, Janu ary 4,2013,hrtrendinstitute. come?I -mojor-trends-in-hr-shored-ser vice-organize tionsri Ro 5 en blo m, 0 avid H. ,et a l. ?The Handbook of Federai Govemmen Leadership and Administration: Transforming, Perionning, and inno vating in a Compiex Worid.? Ro utledg e, 201T. ender, Steven W. "Systematic agreemen t:A theory Human Resource Development Quarterly, arch 199T. Sto km an 0 avid Ala n. 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World Economic Forum, 2T Ju ly 201T, we ?arumorgiwhitepopersf occeiero ting-work -for-the tion. Cover: US. Department of A gric ultu re. 20 131022-00-AC-0 00 T. l-j? aware}. Hm?nrphotoiis US. Department of Education, SAD_Horto ns_Kids 10 4, w. tmentoiedf?tf?jjm 943,! Page 6: 0.5. Air Force, Air Force loo king to boost acqu isition, cy her career ields medreidfl 5593}. if Page 19: 0.5. Department of Ed ucatio n, 1152620 17 - IDEA schoolvisita? tni-entoiedf34?4 :39 -v8t5th-vn.tRzg- U3t3rN-UMHsL'5-Ll'jrco'i Page 11: NationalOcean Service, Port of Los Ange les, httpefrww pho toiist - i eri?ie 3v yF Lia .u L-vivi'l [is Jo's EB 91 Catt-i -8Ng Pee obs pHP-ajH 3n;- r-r Iii. 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