EXECUTIVEOFFICEOFTHEPRESIDENTOFFICEOFMANAGEMENTANDBUDGETTHEPRESIDENT’SMANAGEMENTAGENDAFISCALYEAR2002TableofContentsPagePresident’sMessage.......................................................................................................1Introduction—ImprovingGovernmentPerformance..................................................3Government-wideInitiatives1.StrategicManagementofHumanCapital..................................................112.CompetitiveSourcing....................................................................................173.ImprovedFinancialPerformance.................................................................194.ExpandedElectronicGovernment...............................................................235.BudgetandPerformanceIntegration..........................................................27ProgramInitiatives336.Faith-BasedandCommunityInitiative......................................................357.PrivatizationofMilitaryHousing................................................................398.BetterResearchandDevelopmentInvestmentCriteria...........................439. EliminationofFraudandErrorinStudentAidProgramsandDeficienciesinFinancialManagement..............................................4710.HousingandUrbanDevelopmentManagementandPerformance........5111.BroadenedHealthInsuranceCoveragethroughStateInitiatives..........5512.A“Right-Sized”OverseasPresence...........................................................5913.ReformofFoodAidPrograms...................................................................6514. CoordinationofVeteransAffairsandDefenseProgramsandSystems.................................................................................................69ThePresident'sManagementAgendaiGENERALNOTES1.Allyearsreferredtoarefiscalyearsunlessotherwisenoted.2.Webaddress:’sMessageIampleasedtosendtotheCongressaboldstrategyforimprovingthemanagementandperformanceofthefederalgovernment.Governmentlikestobeginthings—todeclaregrandnewprogramsandcauses.Butgoodbeginningsarenotthemeasureofsuccess.Whatmattersintheendiscompletion.Performance.Results.Notjustmakingpromises,butmakinggoodonpromises.InmyAdministration,thatwillbethestandardfromthefarthestregionalofficeofgovernmenttothehighestofficeintheland.ThisReportfocusesonfourteenareasofimprovementwherewecanbegintodeliveronourpromises.Therecommendationswehavetargetedaddressthemostapparentdeficiencieswheretheopportunitytoimproveperformanceisthegreatest.Thesesolutionsarepracticalmeasures,wellwithinourreachtoimplement.TheseproposalswilloftenrequirethecooperationofCongress.Congress’agendaisacrowdedone,andthereisanunderstandabletemptationtoignoremanagementreformsinfavorofnewpoliciesandprograms.However,whatmattersmostisperformanceandresults.Inthelongterm,therearefewitemsmoreurgentthanensuringthatthefederalgovernmentiswellrunandresults-oriented.ThisAdministrationisdedicatedtoensuringthattheresourcesentrustedtothefederalgovernmentarewellmanagedandwiselyused.WeowethattotheAmericanpeople.GEORGEW.BUSHThePresident'sManagementAgenda1ImprovingGovernmentPerformanceToreformgovernment,wemustrethinkgovernment.Theneedforreformisurgent.TheGeneralAccountingOffice(GAO)“high-risk”listidentifiesareasthroughoutthefederalgovernmentthataremostvulnerabletofraud,waste,andabuse.Tenyearsago,theGAOfoundeightsuchareas.Todayitlists22.Perhapsassignificant,governmentprogramstoooftendeliverinadequateserviceatexcessivecost.Newprogramsarefrequentlycreatedwithlittlerevieworassessmentofthealready-existingprogramstoaddressthesameperceivedproblem.Overtime,numerousprogramswithoverlappingmissionsandcompetingagendasgrowupalongsideoneanother—wastingmoneyandbafflingcitizens.Thoughreformisbadlyneeded,theobstaclesaredaunting—aspreviousgenerationsofwouldbereformershaverepeatedlydiscovered.Theworkofreformiscontinuallyoverwhelmedbytheconstantmultiplicationofhopefulnewgovernmentprograms,eachofwhoseauthorsiscertainthatthisparticularideawillavoidthemanagerialproblemstowhichallpreviousgovernmentprogramshavesuccumbed.Congress,theExecutiveBranch,andthemediahaveallshownfargreaterinterestinthelaunchofnewinitiativesthaninfollowinguptoseeifanythingusefuleveroccurred.“Governmentlikestobeginthings—todeclaregrandnewprogramsandcausesandnationalobjectives.Butgoodbeginningsarenotthemeasureofsuccess.Whatmattersintheendiscompletion.Performance.Results.Notjustmakingpromises,butmakinggoodonpromises.InmyAdministration,thatwillbethestandardfromthefarthestregionalofficeofgovernmenttothehighestofficeoftheland.”GovernorGeorgeW.Bush“Congressandthenewadministrationfaceanarrayofchallengesandopportunitiestoenhanceperformanceandassuretheaccountabilityofthefederalgovernment.Increasedglobalization,rapidtechnologicaladvances,shiftingdemographics,changingsecuritythreats,andvariousqualityoflifeconsiderationsarepromptingfundamentalchangesintheenvironmentinwhichthegovernmentoperates.Weshouldseizetheopportunitytoaddresstoday’sc