Appendix C: Performance Measures Definitions

MANAGEMENT INTEGRATION GOAL

Achieve organizational and management excellence

PERFORMANCE OUTCOME: Identify and effectively manage human and material resources critical to the success of the Department’s strategic goals (DM)

Performance Measure:

• Provide accurate and timely financial information and conform to federal standards, laws, and regulations governing accounting and financial management

This measure ensures that the Department is accountable to the American people, and that no reportable conditions (i.e., deficiencies in the design or operation of internal controls) remain unaddressed. To determine if financial information is being provided in a timely and accurate manner, the Department will assess whether those individuals who can best use the information are receiving it within timeframes that render it relevant and useful in their day-to-day decisions.

Performance Measure:

• Effectively use competitive sourcing

The Federal Activities Inventory Reform (FAIR) Act requires all federal agencies to provide OMB with a timely inventory of the activities performed by government employees that could be carried out by commercial sources. The Department developed an annual reporting process that meets this requirement. In FY 2001 and FY 2002, goals were established by OMB for competing these commercial activities between government’s most efficient organizations and private sector providers in order to put taxpayers’ dollars to the best use. This element measures the Department’s success in competing commercial activities in accordance with the FAIR Act.

Performance Measure:

• Obligate funds through performance-based contracting (% of eligible service contracting $)

Federal agencies have begun changing the way in which the procurement process is conducted, moving toward performance-based contracting—a method of procurement in which the federal government defines the results it is seeking rather than the process by which those results are to be attained—is part of that effort. With performance-based contracting, the government also defines the standards against which contractor performance will be measured and identifies the incentives that may be used.

Performance Measure:

• Obligate contracts to small businesses

It is important that all segments of U.S. society have an opportunity to compete for the business that is contracted out by federal agencies. This measure monitors the Department’s ability to increase opportunities for small businesses to participate in Department acquisitions. Historically, this has included small, disadvantaged, 8(a), and women-owned businesses. In FY 2001, three new categories were added. These are HUBZone, veteran-owned, and service-disabled veteran-owned small businesses (a subset of veteran-owned small businesses). Every two years, the Small Business Administration (SBA) negotiates procurement goals with each federal agency in an effort to increase contract and subcontract awards to small businesses. Through FY 2001, DM reported under GPRA on the percentage of contracts awarded in each of three categories: (1) small businesses; (2) women-owned businesses; and (3) minority-owned businesses, which included small disadvantaged and 8(a) businesses. To avoid making this measure overly cumbersome by adding categories, beginning with FY 2002, the Department simplified the method used to track its GPRA progress. It now reports on the percentage of procurement funds awarded to the umbrella group described as small businesses.

Performance Measure:

• Acquire and maintain diverse and highly qualified staff in mission-critical occupations

This measure represents a combination of indicators focusing on strategic recruitment, training and development, and the Department’s efforts to achieve and maintain a diverse workforce. These indicators permit a comprehensive assessment of the Department’s efforts to strategically manage its human capital. Such an assessment is critical if the Department is to ensure that it has the right people in the right place at the right time to carry out the Department’s work for the American people.

Performance Measure:

• Improve the management of information technology

The Department’s significant annual investment in information technology (IT) requires careful management and monitoring as part of the overall program to effectively manage IT resources to meet the mission needs of the Department and to fulfill its obligation to the taxpayer. Through the use of Earned Value Management and Operational Analysis, systems in the development and/or operational phases are monitored to ensure the required functionality is delivered on the schedule and at the cost projected. Program offices regularly report on the progress and status of their efforts against the cost, schedule, and performance goals, a process that provides early warning signals for corrective actions. Where needed, program managers are required to develop and implement corrective actions to meet the program goals. The successful implementation of each program critical to the Department’s missions depends in some way on the adequacy and security of the IT systems that operate throughout the Department. If security of any of these systems were to be compromised, the effective accomplishment of the Department’s mission would be in jeopardy. To ensure that these systems are adequately protected (and the Nation reaps the benefits of the Department’s work), certification and accreditation requirements have been established. Certification represents the complete testing of all management, operational, and technical controls that protect a system. These controls are documented in the security plan. By approving the plan, the system owner warrants that the controls provide adequate protection for the system. Certification verifies the adequacy of these controls and also validates that the controls are implemented and functioning effectively. Accreditation is the senior program official’s acknowledgement of the risk of operating the system. It provides official approval to run the system in the operational environment. Recertification and reaccreditation follow updates of risk assessments and security plans every three years or upon major system modification.

PERFORMANCE OUTCOME: Promote improvements to Commerce programs and operations by identifying and completing work that (1) promotes integrity, efficiency, and effectiveness; and (2) prevents and detects fraud, waste, and abuse (OIG)

Performance Measure:

• Percentage of OIG recommendations accepted by Departmental and bureau management

Many of the improvements to Department operations and programs come through recommendations made in various OIG work products. A measure of the OIG’s effectiveness is the extent to which it offers useful, practical recommendations for improvements. A measure of the usefulness and practicality of the OIG’s recommendations is the extent to which they are accepted by DM.

Performance Measure:

• Dollar value of financial benefit identified by the OIG

A key measure of the value of the OIG’s work is its dollar return on investment. Financial benefits include: (1) questioned costs agreed to by management; (2) funds put to better use; and (3) administrative, civil, and criminal recoveries.

Performance Measure:

• Percentage of criminal and civil matters that are accepted for prosecution

The OIG investigative work that helps prevent waste, fraud, and abuse results in either civil or criminal legal issues that are referred for prosecution. Thus, the percentage of investigative work that results in civil or criminal referrals for prosecution is a measure of the quality of OIG investigative work.