OMB

While planning at federal agencies is likely to remain in disarray as a result of Congress’ latest failure to resolve federal deficits, the actual financial statements at 23 out of 24 earned their best audit reviews yet, the Office of Management and Budget announced Friday.

The declaration meant that each agency, with the exception of the Pentagon, had satisfied independent auditors that their financial statements were accurate and reflected sound financial management practices. The results were the best record to date in the two decades since the passage of the 1990 Chief Financial Officers Act, when major agencies were required to produce audited financial statements comparable to what private corporations must produce. Keep reading →

Government Executive magazine’s cover story, “A Thousand Cuts,” by Joseph Marks, paints a graphic picture of what it is like to be in government today. Here’s a list of the various directives that direct many of these cuts.

President Obama’s Campaign to Cut Waste was launched in June 2011, but it started earlier than that. It was presaged in his 2011 State of the Union address, when he said the government needed to be reorganized. While that hasn’t happened yet, there are a number of initiatives federal managers have been inundated with to develop plans and implement. Keep reading →

The White House Office of Management and Budget declared today that it had made genuine progress in cutting wasteful and improper payments to the tune of $17.6 billion in fiscal year 2011, with significant decreases in payment errors coming from Medicare, Medicaid, Pell Grants, and Food Stamps.

Combined with the improper payment cuts in 2010, administration officials said agencies avoided making over $20 billion in improper payments in the two years since President Obama issued an executive order initiating an aggressive campaign against wasteful payment errors.

OMB Director Jack Lew, in a press briefing today, attributed the progress to “an unparalleled commitment” by the White House, and the use of “forensic technologies” in rooting out sources of improper payments. Keep reading →

President Obama signed an executive order today directing federal agencies to limit the number of electronic devices issued to federal employees, expand their use of teleconferencing in lieu of travel and reduce the volume of documents the government prints each year.

Agencies have within 45 days to develop plans to reduce by 20 percent the combined federal spending associated with these and other expenses, including what agencies spend on vehicle fleets and the production of “non-essential items” for promotional purposes. Keep reading →

I got a chance to look through the Government Accountability Office’s latest report recommending that the Office of Management and Budget “needs to improve its guidance on IT investments” in government.

No doubt, the biggest underlying issue driving over investment in federal information technology is redundancy in government. Keep reading →

Federal government efforts to identify and track federal information technology investments remain insufficient to curtail duplicative spending, according to the latest in a series of a reports released by the Government Accountability Office critical of government IT spending practices.

The GAO report, released Oct. 27, took primary aim at the the White House Office of Management and Budget, and the way it categorizes and tracks IT investments, citing a number of principle shortcomings, although those familiar with OMB’s operating levers note the problem goes beyond OMB. Keep reading →


The Obama Administration launched a new interactive map and a new online dashboard to help support and monitor its efforts to dispose of unneeded federal real estate. Office of Management and Budget Personnel Chief Performance Officer Jeffrey Zients commented on the the administration’s progress in the following White House blog post yesterday.

Over the years the federal government accumulated tens of thousands of properties that are no longer needed, wasting hundreds of millions of taxpayer dollars annually on upkeep. Last June, President Obama directed Federal agencies to end this waste and improve the management of the government’s real estate by getting unneeded properties off our books – setting an initial goal of netting $3 billion in savings by the end of 2012. Since then, agencies across the government have been hard at work scrutinizing their real estate holdings and identifying properties that have outlived their utility.

Today, I’m pleased to report that these efforts are paying off. Agencies have already identified real estate savings opportunities that exceed the President’s goal, and that put the federal government on pace to shed $3.5 billion in real estate costs by the end of 2012. To help track the Administration’s progress with these efforts – and to give the American people an unprecedented window into the government’s management of federal real estate – today we’re launching two new online tools.

The first is an updated White House Excess Property map (see image above) that uses new data to pinpoint the location and status of federal properties that agencies have targeted for closure or consolidation. Ranging from small sheds in rural locations to sprawling warehouses and office complexes in urban and suburban areas, the map shows some 12,000 properties scattered all across the country. We’re also rolling out a new dashboard on Performance.gov that allows the American people to track the Administration’s progress in meeting the President’s $3 billion goal.

The dashboard now shows that agencies plan to surpass the President’s goal by the end of 2012 and have already achieved $1.5 billion in savings through a combination of sales, consolidations, canceled projects, and reduced maintenance and utility costs. And in the coming years, we’ll continue to target more and more unneeded properties that squander billions of dollars and make the government less efficient.

One such property is the U.S. General Service Administration’s (GSA) West Heating Plant, a two-acre property in the Georgetown section of Washington, DC. It’s been 10 years since this facility last played a role in the boiler and pipe network that heats many of the capital’s government buildings. In the decade since it was last in use it has racked up $3.5 million in maintenance costs. The plant was retained as a back-up for emergencies, but GSA has determined the facility is no longer needed and ready for closure so we are labeling it “excess” today.

Getting this property off the books is a win-win for the American people. It will eliminate maintenance costs, ensure that this property will be put to a more productive use, and could earn the government tens of millions in revenue from potential sales proceeds. This is exactly the type of waste and inefficiency the President and Vice President pledged to root out when they launched the Campaign to Cut Waste.

Closing these types of facilities represents important progress, but more work needs to be done in the long-term to get excess properties off our books. For too long, the sale of excess federal real estate has been slowed by a process fraught with delays and hurdles.
That’s why in his budget last year, the President put forward a proposal called the Civilian Property Realignment Act – legislation that would cut through red tape and politics to accelerate the disposal of unnecessary government properties well beyond 2012. We look forward to continuing to work with Congress to ensure passage of this legislation to end wasteful Federal spending on properties that we simply do not need and return billions of dollars to American taxpayers.

Stopping the waste of taxpayer dollars is a priority for this Administration. Particularly in these tough budgetary times, we have a responsibility to deliver the American people an efficient, effective government that makes smart use of its resources. By aggressively targeting unneeded federal real estate, that’s exactly what we are doing.

Keep reading →


COMMENTARY:
Once, back when such events were in vogue, I helped lead a troupe of 100 executives on a journey of self-discovery in the rain forests of Central America. It was a very cool trip-and very costly. The logistics alone must have run into the millions, given the planes, jeeps, boats and more planes used to ferry the participants half way around the world, deep into the jungle, and back out again.

Was it worth it? Well, there were thoughtful meetings around the campfire. There were some frank discussions with the CEO. The group bonded – sort of. And one executive had either an epiphany or cardiac arrest when he accidentally bumped into me moments after someone flipped the switch on the generator and plunged the campsite into the inkiest nothingness most of us had ever experienced. Keep reading →

This commentary was adapted from a White House blog posted by Office of Federal Procurement Administrator Daniel Gordon.

As part of the administration’s campaign to cut waste, OMB’s Office of Federal Procurement Policy (OFPP) released guidance (Sept. 29) to reduce wasteful duplication in federal contracting.

Too often in the past, agency spending for many commonly-used items was fragmented across multiple departments, programs, and components, which means that agencies often spent time writing hundreds of separate contracts, with pricing that varies widely. The result is a waste of limited staff time and energy, and prices that are not as good as they should be.

At a cabinet meeting earlier this month, Vice President Biden pointed out that by leveraging their purchasing power agencies can save taxpayer dollars. He directed each agency leader to conduct a waste and efficiency review, targeting unnecessary or inefficient spending in areas like contracting.


OFPP’s new guidance will aid agencies in eliminating waste and carrying out the reviews ordered by the vice president by addressing concerns, raised by GAO and others, that agencies may be unnecessarily duplicating each other’s contracting efforts. This guidance requires agencies to prepare “business cases” – analyses to ensure they aren’t duplicating an existing contract and that they are getting the best value for taxpayers- before they establish or renew certain interagency and agency-specific contracts for commonly-used goods and services, such as office supplies and wireless services.

Doing this kind of due diligence and comparison-shopping is something that many families across the country do, and it is especially important that the Federal government weigh all the options before entering into large contracts and agreements whose scope would overlap contracts that already exist. In the business case, agencies are required to balance the value of creating a new contract against the benefit of using an existing one, and whether the expected return from investment in the proposed contract is worth the taxpayer resources. Insisting on that cost/benefit analysis in the business cases should go a long way to avoiding duplicative contracts.

The progress we’ve made in this area is a key reason why we think GAO should take interagency contracting off its ‘high risk’ list.” Keep reading →

Government leaders know there will be no silver bullets, only hard choices, when it comes to preparing the inevitable budget cuts now facing federal agencies.

The question is, how will they proceed? Keep reading →

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