Having States submit project management plans for all Federal aid projects costing $1 billion or more. Requesting States to prepare annual financial plans for all projects receiving $100 million or more in Federal aid funds. • Establishing cost-estimate standards to provide more reliable and consistent project cost expectations. • Strengthening the Department's suspension and debarment policies to prevent contractors from continuing to defraud the Government. Allowing States to share in monetary recoveries from Federal fraud cases. SAFETEA would also establish a new highway pilot program where States could manage as a block grant funds from the following programs: Interstate Maintenance, National Highway System, Surface Transportation (except for the Transportation Enhancement funds), Highway Safety Improvement, Highway Bridge, and Minimum Guarantee. Under the pilot program, States would work with the Department to develop and meet specific system performance measures. Credit Programs DOT operates loan programs that provide substantial financing for rail, highway, maritime, and multimodal projects that improve mobility and safety, and enhance the environment. Over the past year, DOT has established a process to better manage its loan portfolio and limit its credit risk. DOT uses a standardized process for reviewing loan applications, regardless of the loan program, and top agency management make final recommendations. DOT also employs independent financial advisors to assess the financial viability of applicants. The result is consistent standards and better decisionmaking. On a related issue, the 2006 Budget proposes to de-authorize the Railroad Rehabilitation and Improvement Financing loan program because recent tax law changes will better advance rail infrastructure investment. Research and Special Programs Administration Reorganization The recent enactment of the Research and Special Programs Improvement Act will permit the Administration to improve coordination and strengthen oversight by realigning the Department's research, pipeline safety, and hazardous materials safety programs. The restructuring will create two new operating administrations in place of the existing Research and Special Programs Administration. The new Research and Innovative Technology Administration will focus on research and development activities, transportation analysis, and statistics. Inspection and policy responsibilities for pipeline and hazardous materials transportation safety programs will be placed within the other newly established operating administration: the Pipeline and Hazardous Materials Safety Administration. Managing for Results The Administration continues to assess the management and performance of DOT programs using the Program Assessment Rating Tool (PART). Last year, nine programs were assessed using PART, which reviews each program's design and purpose, strategic planning, internal management, and whether they are generating positive results for taxpayers. For example, the PART review of FAA's Facilities and Equipment program found that, despite appropriate long-term goals, projects consistently experience large cost and schedule overruns. In response to the PART recommendations, FAA will focus on increasing the use of performance-based contracts as a means of controlling costs. Evaluations of the Maritime Administration's Maritime Security Program found a need for a new measure MAKING GOVERNMENT MORE EFFECTIVE-Continued of the program's contribution to the total commercial sealift capacity requirement. This new measure will help DOT, which is working with the Department of Defense, evaluate whether the current mix of vessel types in the Maritime Security Program fleet are appropriate to meet the needs of the Department of Defense. Update on the President's Management Agenda The table below provides an update on DOT's implementation of the President's Management Agenda as of December 31, 2004. Through the Human Capital initiative, DOT has established a new strategic plan for managing its human capital and is progressing toward implementing multi-tier employee evaluation systems for each of its operating administrations. DOT completed its first two standard competitions in August 2003, with expected savings of $9 million over 10 years. DOT has implemented a Department-wide integrated financial system to make the Department's accounting practices more streamlined and accurate. The Department still faces several challenges relating to financial management, including a need to improve the oversight of highway and transit grants. DOT has created an Enterprise Architecture that focuses on information technology (IT) investments and plans to address “at risk” programs in the Department. Over the next year, DOT will work towards achieving the challenging goal of securing all of its IT systems. DOT's 2006 Budget submissions incorporated PART findings and are structured to show full costs by strategic goal. Initiative Real Property Asset Management Eliminating Improper Payments Status Progress FAA holds over 98 percent of the DOT property and leads the Department's Real Property Initiative. There are many challenges ahead, including a gap analysis between the FAA asset management plan, inventory system, and performance measures and the Federal Real Property Council standards. FAA will use this assessment to determine an aggressive strategy for addressing deficiencies. For its Improper Payment Initiative, DOT's major challenge is to gain insight into how grantees and subgrantees spend DOT funds. Currently, DOT has limited information for its major grant programs. (Because this is the first quarter that agency efforts in the Eliminating Improper Payments Initiative were rated, progress scores were not given.) 2 Reflects reorganization of programs under the Research and Special Programs Improvement Act. 3 Includes both discretionary budget authority, obligation limitations, and rescissions. • Reforming the tax code to make it simpler and fairer for average taxpayers. • Ensuring a safe and sound banking system through regulation and supervision of banks and thrifts. • Promoting and coordinating efforts of Federal agencies and the private sector to increase financial literacy for all Americans. Protecting America • Combating terrorist financing and financial crime, especially through efforts of the new Office of Terrorism and Financial Intelligence, which will provide a comprehensive approach to Treasury's contribution to the War on Terror. Agency-specific Goals • Producing the world's most accepted coins and currency and ensuring the integrity of the U.S. dollar. Making Government More Effective • Providing new tax enforcement initiatives to promote fair and equitable tax enforcement and increase revenue. |