Advance the Department’s ability to
manage for results and innovation.
L
President Bush’s management agenda focuses
on long-term management of the Federal workforce and fostering a
citizen-centered, results-based government that is organized to
be agile, lean, and capable of making timely decisions. As we determine
our human capital requirements, DOT serves its customers by implementing
well-chosen, strategic human capital solutions.
We will use competitive sourcing as a key tool
for getting the Department’s commercial-type work done most
efficiently. By doing so, we can ensure that we are providing the
highest quality and the most economical service to Americans.
Improved financial performance is a key aspect
of improving the government’s performance. Knowing the full
cost of DOT’s goods and services is the first prerequisite
to managing DOT’s programs well. The General Accounting Office
and the DOT IG have also identified DOT financial management as
requiring focused effort to make needed improvements. Good financial
stewardship, excellent and efficient procurement and acquisition
systems, and improved financial performance are cornerstones of
excellent DOT management.
President Bush has called for citizen-centered
Government that improves service to individuals, businesses, and
State and local government through the use of information technologies.
DOT is committed to improving transportation through market-based
policies that foster competition, increase the range of transportation
choices available to travelers and shippers, and making the U.S.
transportation system as efficient as possible in order to enable
maximum economic growth. DOT is also committed to better use of
information technology to enable faster, easier, and more efficient
ways for citizens to transact their business with DOT and to provide
input on transportation policies and programs.
The President’s Management Agenda stresses
a sea change in Federal management – that of changing yearly
budgetary and resource management decision focus from the “increment”
to the “base” and by a relentless focus on accountability
for programmatic results. This focus will be achieved by holding
executives and managers accountable for results, and by making investment
decisions based upon what has been demonstrated to work. Regular,
systematic measurement, and accountability for program performance
compared to pre-established goals, will be the means to improve
DOT management.
• Improve customer satisfaction
• Improve employee satisfaction and effectiveness
• Improve organizational performance and productivity
DOT is committed to the President’s vision of
a citizen-centered, results-oriented government, and one that promotes
innovation in transportation through market-based policies and through
fostering competition in the transportation sector of the U.S. economy.
A well-managed organization with a strong customer focus, a skilled
and highly motivated workforce, and an emphasis on managing for
results is essential to achieving DOT’s goals. DOT is committed
to improving its overall effectiveness and efficiency by listening
to customers, providing top-quality service by reducing bureaucracy,
enabling employees to develop and utilize their full potential consistent
with the Department’s goals, and efficiently managing programs
for maximum performance. DOT’s ability to meet its strategic
goals is enabled through restructuring the entire DOT organization,
by investments in information technology for customer transactions
with the Department, by improving financial management systems,
and by thinking creatively and innovatively. In 2004, DOT expects
to achieve excellent progress in all five areas of the President’s
Management Agenda.
The FY 2004 budget proposes $284.5 million in
funding to promote organizational excellence and meet the President’s
management agenda. An analysis of DOT’s 2004 strategies follows.
By fall 2006 large numbers of DOT employees will become
eligible for retirement, and in DOT’s critical occupations,
such as engineers and executive managers, the numbers are especially
high. To maintain the capability we need, DOT will:
• implement human capital solutions derived
from the Departmental Human Capital Plan, including competitive
sourcing and restructuring;
• establish a corporate approach to target recruitment
efforts, with special emphasis on cross-modal mission critical occupations.
This includes a pilot program for centrally recruiting and training
entry-level employees for one or more mission-critical occupations;
• consolidate HR resources currently scattered
across the Department devoted to employee benefits and workers’
compensation (non-FAA). These consolidations will result in more
efficient use of resources, improved customer service, and improved
safety and significant future cost avoidance;
• convene a Diversity Summit to engage DOT leadership
in an open and constructive dialogue on the Department’s strategy
and progress for managing diversity; and
• expand telecommuting within DOT.
| Management
Challenge – Air Traffic System Organization and Management
(IG)
The IG identified carrying through with FAA
authorities to convert the Air Traffic Services line of business
to a performance-based organization as a major challenge.
FAA plans to redirect a major portion of its
organization - 37,300 employees - into a results-oriented
Air Traffic Organization (ATO), freeing most of the FAA to
manage better, and modernize faster and more efficiently.
|
| Management
Challenge – Strategic Human Resource Planning (GAO/OMB)
GAO has stated that the entire Federal Government
faces an impending wave of retirements of long-service, highly
competent Federal employees. From this arises a large-scale
strategic human resource planning issue. While this exodus
of talent will not happen overnight, DOT must plan now to
maintain required levels of experience, competencies, and
knowledge levels in the Department’s civilian and contract
workforce. Succession planning as well as managing and maintaining
adequate institutional knowledge will be crucial for DOT’s
ability to carry out its functions during this period of high
workforce turnover.
The Department’s Strategic Human Capital
Management Plan will addresses the President’s Management
Agenda and GAO’s management challenge. |
By the end of 2004, DOT will have competed 35%
of the commercial positions identified in DOT’s FAIR Act inventory.
FAA will compete the majority of its FTE associated with its Automated
Flight Service Centers (except in Alaska), which accounts for 77
percent of the total FTE to be competed by the end of FY 2003.
For major DOT systems acquisition projects, achieve
90 percent of cost and schedule milestones, and achieve 100 percent
of planned capability and performance benefits upon full fielding
of the capital equipment.
Award at least 5 percent of direct DOT contracts to
women-owned businesses, and at least 14.5 percent of direct DOT
contracts to small disadvantaged businesses.
| For major
DOT systems acquisitions, percentage of cost and schedule
goals established in acquisition project baselines that are
met.
Target: 1999 2000 2001 2002 2003 2004
New goal in 2002 90 80 80
Actual: New goal in 2002 74 |
| Percent share
of the total dollar value of DOT direct contracts that are
awarded to women-owned businesses.
Target: 1999 2000 2001 2002 2003 2004
5 5 5 5.1 5.1 5.1
Actual: 4.1 4.5 3.7(r) 3.8#
|
| Percent share
of the total dollar value of DOT direct contracts that are
awarded to small disadvantaged businesses.
Target: 1999 2000 2001 2002 2003 2004
14.5 14.5 14.5 14.5 14.5 14.5
Actual: 17.9 17.7 17.4(r) 16.2# |
(r) Revised; # Preliminary estimate.
Performance-based contracting – DOT's agency-wide
Procurement Performance Management System policy includes a measure
for Performance Based Service Contracting consistent with the 20%
by FY 2004 goal established in the Government-wide Acquisition Performance
Measurement Program. For 2004, DOT intends that 20% of all service
contract dollars will be performance based.
Small Disadvantaged (SDB) & Women-Owned Business
(WOB) Contracting: DOT’s SDB and WOB percentage goals are
set in cooperation with the Small Business Administration (SBA),
and total 19.5 of the total dollar value of direct DOT contracts.
WOBs do not have a special set-aside authority allowing them to
compete in a restricted market for Federal procurements. Therefore,
WOBs must successfully compete with other small businesses for small
business set-aside procurements or with all businesses for full
and open procurements. To assist WOBs to successfully compete, DOT
and the Office of Small and Disadvantaged Business Utilization (OSDBU)
conduct outreach, training and offer financial assistance. DOT is
increasing its outreach efforts to SDBs and the contracting community
itself. DOT’s $3 million outreach and technical assistance
program will help small businesses in general, many of which are
disadvantaged or women-owned businesses.
| Management
Challenge – FAA Acquisition Management (IG/GAO)
The IG and GAO have identified FAA’s management
of major systems acquisitions and taking increased advantage
of FAA’s acquisition flexibilities as major challenges.
It is critical that air traffic system modernization projects
be fielded on time and on budget for continued progress to
be made in reducing congestion in the nation’s air transportation
system as demand for flights grows back to and beyond pre-9/11
levels.
The discussion above and the performance measures
respond in full to this management challenge. |
DOT’s FY 2002 Consolidated Financial Statement
again received an “unqualified” opinion from the IG,
and DOT is confident that this will be the case for the future as
well. DOT continues to implement Delphi, the Department’s
commercial off-the-shelf core accounting system replacement.
DOT is making good progress in being able to report
quarterly financial results by FY 2003, and we will be better able
to manage unit costs of service delivery in all front-line functions
for citizens - for example, in issuing airman and merchant mariner
documents, and in processing innovative financing or grant applications.
As a result of this progress, the auditors have lowered FAA’s
vulnerability assessment in the asset management area from a material
weakness to a reportable condition. FAA continues to address asset
management problems through detailed corrective action plans extending
over multiple years and involving numerous offices. FAA has implemented
new policies and procedures and an interim fixed asset system that
will be converted to Delphi. When FAA fully implements Delphi, it
will have an integrated asset and financial management system.
DOT is making plans for implementing the cost
accounting functionality of the Delphi system, as it comes into
full use throughout DOT.
| DOT
and FAA Financial Systems (IG/GAO/OMB)
As indicated by the IG, GAO, and OMB, converting
all DOT activities to the Department’s improved financial
accounting system has presented a significant management challenge,
requiring DOT to develop more comprehensive cost accounting
systems, and most critically, to develop improved labor distribution
systems, and record keeping and valuation procedures for property,
plant, and equipment. This last requirement remains a significant
challenge for FAA, whose direct provision of services to the
public involves significant capital assets.
The foregoing discussion in its entirety
covers these management challenges.
|
Achieve 95 percent of schedule milestones for major
Federally funded transportation infrastructure projects, or miss
those milestones by less than 10 percent.
Achieve 95 percent of cost estimates for major Federally
funded transportation infrastructure projects, or miss them by less
than 10 percent.
| For major
Federally funded infrastructure projects, percentage that
meet schedule milestones established in project or contract
agreements, or miss them by less than 10%.
Target: 1999 2000 2001 2002 2003 2004
New goal in 2002 95 95 95
Actual: N/A N/A N/A 85 |
| For major
Federally-funded infrastructure projects, percentage that
meet cost estimates established in project or contract agreements,
or miss them by less than 10%.
Target: 1999 2000 2001 2002 2003 2004
New goal in 2002 95 95 95
Actual: New goal in 2002 85 |
| Percentage
of transit grants obligated within 60 days after submission
of a completed application.
Target: 1999 2000 2001 2002 2003 2004
New goal in 2002 60 80 80
Actual: N/A 21 51 67 |
DOT operating administrations will also ensure that
controls against fraud, waste and abuse of Federal infrastructure
grant funds are strengthened. DOT will conduct outreach to grant
recipients and will work with States to heighten awareness of ways
to curtail fraudulent activities, and to maintain good accountability
for grant expenditures. In its relationships with State and local
highway agencies, FHWA and FTA will continue to stress fraud indicators
and reporting procedures, and will work with the transportation
and highway industryto include the IG as a resource for reporting
allegations of fraud, waste, and abuse on Federal-aid infrastructure
construction projects. FAA will continue its coordination with airport
authorities for fraud awareness.
DOT requires its contracting officers to: (1) review
all completed contracts on an annual basis to ensure that only those
funds necessary to pay the contractor's final invoice are retained
under the contract, (2) determine the need for an independent audit,
(3) take full advantage of contract quick closeout procedures, (4)
comply with DOT policy on monitoring of contract closeouts, and
(5) reduce the backlog of completed contracts that need to be closed
out. Doing so will ensure that excess funds obligated to contracts
will be timely de-obligated and redeployed to the government’s
advantage. FAA is implementing a number of performance goals designed
to assure timely closeout of grants and expenditure of AIP grant
funds. FAA has set a performance goal for the share of grants to
be awarded based on project bids rather than estimates. In addition,
the FAA has established a goal of closing out grants within four
years after issuance and for closing out grants that have had no
drawdown activity for 18 months.
| Management
Challenges – Management of Large Transportation Infrastructure
Projects (IG/GAO/OMB)
Monitoring the cost, schedule, and performance
of “mega projects” is critical to identify problems
and initiate action to mitigate risks as soon as possible.
The IG has noted that FHWA can obtain better value for each
dollar invested in highway projects by refocusing its oversight
efforts to ensure that major projects are delivered on-time
and on budget; noting further that FHWA needs to move from
an engineering culture to a more multi-disciplined workforce
with the management, financial, environmental, program analysis,
and engineering oversight skills necessary to review modern
highway projects and programs.
The Department has improved its oversight of
these projects by developing a comprehensive, standard oversight
approach. Elements of this approach include vigorous enforcement
of financial reporting requirements, designating accountable
oversight managers for “mega projects”, and taking
timely action to protect Federal interests on projects designated
as “at risk.” FHWA and FTA have developed new
guidance for financial reporting on infrastructure projects
greater than $1 billion. Critical analysis of these plans
will ensure the Department is provided complete and consistent
reporting of basic standardized financial data. Fully developed
finance plans have been useful in identifying emerging cost
and funding shortfalls in projects.
DOT has taken the following actions:
Establishing project oversight, by designating
competent oversight managers who are personally accountable
for proper Federal oversight; and establishing Integrated
Product Teams to assist the oversight manager. Professional
certifications for Federal oversight managers will be funded,
and grant recipients’ project management staff will
be required to have professional certifications.
Establishing a formal management and reporting
framework, by creating a DOT Executive Council to review project
oversight; fostering a collaborative relationship between
Federal project oversight managers and grant recipients to
facilitate communications; and requiring grant recipients
to submit project management plans with agreed-upon oversight
provisions and which incorporate “Earned Value Management”.
Additionally, projects with significant deviations from cost
and schedule baselines will be designated as “at risk”.
Grant agreements will provide financial incentives for comprehensive
project management systems, and will insure that a dedicated
funding source exists for independent oversight reviews.
Insuring accountability by incorporating mega-project
oversight into DOT Performance Plans, inviting external audits,
and by providing proper incentives for excellent oversight
performance by DOT employees. The Department will continue
to improve institutional and personal accountability systems
to ensure that large transportation infrastructure projects
are adequately managed and periodically reviewed by a Departmental
Council. To further strengthen oversight activities beginning
in FY 2004, project management and financial plans will be
developed annually for each mega project. The project management
plan will provide information related to the costs, schedules,
and quality of projects, aswell as the Federal requirements
of the project. The financial plan will provide a detailed
estimate of the costs to complete the project. FHWA’s
FY 2004 budget request contains a request for 12 new FTE for
major project oversight. |
Ensure that transportation projects are accomplished
even-handedly, so that no community or group bears a disproportionate
burden.
| Percent of
Environmental Justice cases that remain unresolved after one
year.
Target: 1999 2000 2001 2002 2003 2004
N/A N/A N/A 40 35 35
Actual: 29 56 39 65 |
Executive Order 12898 directs each Federal agency
to identify and address disproportionately high and adverse human
health or environmental effects of its programs, policies, and activities
on minority populations and low-income populations. To achieve this
objective, DOT operates under existing authorities, such as the
National Environmental Policy Act (NEPA) and Title VI of the Civil
Rights Act of 1964. DOT’s Environmental Justice policy incorporates
these considerations in all DOT programs, policies, and activities.
DOT works with stakeholders and officials at the State,
regional, and local levels to ensure environmental justice concerns
are integrated into the transportation planning process. To counter
the factors that delay resolution, DOT employs two strategies: 1)
emphasizing public involvement by minority and low income communities
at a very early stage of transportation project planning; and 2)
encouraging improved analysis by metropolitan planning organizations
(MPOs) and State DOTs of the potential equity impacts of transportation
projects.
DOT will educate stakeholders, provide Title VI training,
and ensure public participation in the concept stage -- before project
designs are chosen -- by reaching out to potentially affected populations.
DOT works with other agencies to share expertise
and resolve jurisdictional overlaps and duplications, principally
through an interagency working group, chaired by EPA.
In FY 2004, DOT plans to increase its use of knowledge
management and information technologies to improve the services
we provide to citizens, businesses and State and local governments
by making best practices and innovations available to all DOT staff
via DOTnet. DOT will also encourage customer service training for
all front line employees and open lines of communication from the
front line to program managers to improve our products and services.
We recognize that our front line employees may provide vital information
to build partnerships and other long-range relationships with customers
as well as obtain feedback that can be used to help improve customer
satisfaction.
DOT is an active participant in many of the President's
government wide E-Government initiatives. Several DOT E-Government
successes, such as the Dockets Management System, Transportation
Virtual University, the self booking travel system and our executive
correspondence system are components of these initiatives.
DOT will continue to do more along these lines:
• FHWA implemented an improved, paperless financial
management information system in early 2002. The new system is a
user-friendly, web-enabled system, including electronic signatures,
so that State DOT’s can report data with about 30 percent
less internal reporting. More than two-thirds of States are now
using this improved system, and users of the system’s information
and reports have increased by 25 percent. State users of the system
total 50 percent of the user base.
• FAA is working on a rulemaking proposal that
will allow electronic collection of data associated with their anti-drug
program for personnel engaged in specified aviation activities.
In addition, they are exploring the use of electronic signatures
to further reduce the information collection burden for medical
standards and certification.
• FAA processes approximately 770,000 airman
certifications and/or rating applications annually. An automated
form is currently being beta tested that will allow this information
to be completed on-line.
• FAA processes approximately 475,000 pilot
medical certification applications annually. A pilot project is
under way to allow for electronic signature and submission of all
documentation electronically ($0.8 million).
• FAA is currently re-platforming the air carrier
activity information system to permit electronic submittal of passenger/cargo
information by airport owners and operators.
• FAA is currently testing E-grant initiative
that will permit electronic submittal of grant applications and
completed grant agreements.
• FMCSA customers can now obtain and pay for
a variety of DOT goods and services on-line by using their credit
card or electronic fund transfer from their bank account. This site
was established to allow FMCSA customers to conduct business at
their convenience. The site is available 24 hours a day.
• FMCSA customers can apply for motor carrier
certificates of authority, request name and address changes for
existing certificates of authority, request reinstatement of certificates
of authority, or pay fines or filing fees for motor carrier insurance
via the internet. 40% of motor carrier registration applications
are done via the Internet.
• MARAD has made significant progress towards
achieving full electronic procurement. Virtually all of MARAD’s
solicitations and contracts are now electronically issued to vendors
through the Department of Interior’s National Business Center
web site. Vendors may submit their quotes on-line in response to
requests for quotes. Further, DOT awarded 75 port security grants,
totaling over $92 million, which resulted from a completely on-line
and paperless solicitation, evaluation, and award process.
Key 2004 initiatives are:
• Oversee DOT's involvement in the President's
Management Council government wide E-government initiatives, as
requested by the managing partners.
• Develop and implement strategies and plans
to ensure future IT workforce competency/capability requirements
are met.
• Meet the Government Paperwork Elimination
Act (GPEA) requirements to deliver information and transact business
electronically by October 2003. Prepare and submit a report on the
Department’s compliance with GPEA to the Office of Management
and Budget.
• Ensure DOT organizations implement IT program
management initiatives that lead to improvements in the Department’s
Management Scorecard results.
• Ensure that DOT organizations maintain a basic
standard of quality on all publicly disseminated information by
reducing the number of legitimate correction requests from the FY
2003 baseline.
| Management
Challenge – DOT Information System Capital Planning
(IG)
The IG has identified the need to carry through
with DOT’s enterprise-wide information system planning
process as a major challenge. While DOT is responsible for
one of the largest IT investments among civilian agencies,
the departmental CIO has little oversight over these investments.
Over 90 percent of IT investments are controlled by DOT Operating
Administrations. In 2002, DOT issued new IT capital planning
guidance that established a DOT Investment Review Board chaired
by the Deputy Secretary with assistance from the CIO and other
departmental senior officials to review major IT investment
decisions.
Establishing the Investment Review Board is
a step in the right direction to implement this cultural change
in DOT. However, to ensure that the Board could influence
major IT investment decisions, DOT needs to take other initiatives
such as obtaining explicit senior management support from
the Operating Administrations, issuing clear guidance to identify
investments for review, and developing a system to implement
decisions issued by the Board.
DOT will ensure that DOT operating administrations
make sound IT business investments supportive of strategic
goals and electronic government by:
• overseeing and monitoring the Departmental
IT Capital Planning and Investment Control (CPIC) process
to maximize the value and assess and report the progress of
IT acquisitions; and
• ensuring that proposed investments
are consistent with and supported by the DOT Enterprise Architecture
(EA).
|
| Management
Challenge – Computer Security (Department-wide and FAA)
(IG/GAO/OMB)
The IG, GAO, and OMB have identified information
system security as a critical government-wide management challenge,
and in particular, have identified FAA air traffic control
information systems as needing special attention to harden
them against malicious or criminal attack.
The DOT Chief Information Officer (CIO) will
lead intermodal efforts to ensure the continued security of
our transportation information systems to make IT systems
less vulnerable to attack and other service disruptions, including
those caused by natural disasters. The primary goal of this
program is to ensure that the appropriate people, processes,
and technology are implemented to protect the confidentiality,
integrity, and availability of all DOT IT assets as required
by the Computer Security Act of 1987, the Federal Information
Security Management Act, OMB Circular A-130, and National
Institute of Standards and Technology guidance.
DOT has established an IT Security Program requiring
that all DOT IT Systems be assessed to identify vulnerabilities;
that vulnerabilities be evaluated and mitigated where justified;
and, that systems be tested and certified as adequately protected.
The DOT CIO will continue to implement and operate
the Network Intrusion Detection Systems (IDS) architecture
and plan for the rollout of the PKI and smart-card architecture
($9.7 million). During FY 2004, the focus will be on certifying
and accrediting mission-critical IT applications and systems.
Expected results are as follows:
• completed standards for a DOT-wide PKI
Infrastructure, Wireless, e-Authentication/e-Signature and
smart card architecture to selected DOT organizations with
interoperability with the Federal e-Authentication solution;
• certification and accreditation of at
least 50% of DOT’s IT assets;
• protection of the majority of DOT mission
critical systems by IDS;
• periodic vulnerability scanning of all
mission critical hosts to determine compliance with configuration
management/minimum security baselines established in FY 2003;
• new IT investments evaluated in the
departmental capital planning and investment control (CPIC)
and enterprise architecture (EA) processes to ensure that
IT Security issues are adequately addressed; and
• best practices and lessons learned inside
and outside DOT evaluated and their use by appropriate DOT
organizations mandated.
FAA has developed a concept of operations, approach,
and major milestones to address information security issues
and protect information assets. The FAA approach focuses on
protecting the operational capability of its facilities, which
requires an integrated approach to information systems, personnel,
and physical security at each facility. Other efforts to protect
both the air traffic system infrastructure and to ensure that
new systems incorporate security include:
• Authorizing and certifying computer
security systems;
• Training FAA personnel in security awareness
and vulnerability assessments; and
• Improving intrusion detection capability.
|
The Office of the Secretary, FAA, and BTS collect
and publish information regarding the airline industry to help ensure
a more effective and competitive industry. Reports are regularly
made public on airline service quality, flight delays and cancellations,
passenger oversales and denied boardings, flight departures and
passengers transported. DOT has the authority to prevent deceptive
practices and unfair methods of competition in the airline industry,
and this authority is exercised when appropriate to protect both
consumers and competition. The airline industry itself is also responsible
in the marketplace to treat its customers fairly.
FAA and OST are jointly implementing the AIR-21 requirement
for certain medium and large hub airports to file competition plans.
FAA and OST closely scrutinize each plan to assure that airports
are in fact providing meaningful opportunities for competition.
FAA has in many cases required airports to provide additional information
and consider alternative business practices before approving their
plans. Similarly, as plans are approved, FAA has required airports
to provide information and consider new, pro-competitive business
practices as part of submission of plan updates. FAA has also provided
additional guidance to airports on methods to enhance the competitive
environment.
In accordance with existing statutory authorities
and as a member of the Air Transportation Stabilization Board established
by the Air Transportation Safety and System Stabilization Act, DOT
is acting to ensure that the Nation’s airline industry remains
viable, safe, and secure after the events of September 11, and to
ensure that market forces, not terrorist acts, determine the long-term
economic future of the industry.
| Management
Challenge - Airline Consolidation and Service to Communities
(GAO)
As GAO has pointed out, the lack of effective
competition in certain markets has contributed to high fares
and poor service. Increased competition and better aviation
service will entail a range of solutions by DOT, the Congress,
and the private sector.
Government needs to be the watchdog of competition
to ensure that competitive conditions continue to exist. In
response to complaints by low-fare airlines that incumbent
airlines were engaging in unfair competitive practices, DOT
has conducted informal investigations. If such complaints
appear to have a substantial basis in fact, DOT has authority
to bring actions against the offending parties.
The Department of Justice is responsible for
determining whether mergers should be challenged on competitive
grounds. DOT conducts its own analysis of merger transactions
and provides its views on competitive issues to the Justice
Department.
DOT has a significant backlog of allegations
of unfair competition, hoarding airport capacity, oppressive
computer reservation system practices and civil rights violations.
Congress provided additional staff to address the complaint
backlog and improve accessibility to air travel for individuals
with disabilities, as mandated under the Air Carrier Access
Act. |
| Management
Challenge – Amtrak Financial Viability (IG/GAO)
The 1997 Amtrak Reform and Accountability Act
mandated that Amtrak develop a plan to eliminate its need
for Federal operating support by FY 2003. The DOT IG, in a
January 2002 report on Amtrak’s Financial Performance
and Requirements, observed that: 1) Amtrak is no closer to
operational self-sufficiency than it was in 1997; 2) There
is insufficient time for Amtrak to become self-sufficient
by the December 2, 2002 deadline; 3) Amtrak will likely need
additional funding this year to continue operating; 4) Additional
borrowing against assets—such as the 2001 mortgaging
of Penn Station—would adversely affect the long-term
prospects for the railroad; 5) Even if Amtrak becomes operationally
self-sufficient this year, it will still need substantial
Federal funds for capital improvements; and 6) Deferral of
routine maintenance is starting to catch up with Amtrak. Similarly,
GAO has discussed Amtrak’s need for greater progress
toward the goal of operating self-sufficiency.
Amtrak has not made sufficient progress toward
its goal of operating self-sufficiency in 2002, and the Administration
will work with Congress on a plan to restructure intercity
rail passenger service. |
By clearly focusing on investments on programs that
work, and by exerting effort to make well-designed programs achieve
their intended results; DOT will increase the value it creates for
the American people. The chief means to accomplish our intended
results is to hold executives and managers accountable for those
results. DOT has thoroughly revamped its performance plan and is
taking steps to revitalize and refocus its system of individual
and organizational accountability. Departmental leaders and senior
executives will be included in this system, which will increase
alignment of resource decision-making and programmatic effort with
DOT’s strategic purposes.
In the 2004 budget, DOT is presenting many of its
detailed requests to Congress in formats that more closely align
resource requests with expected performance benefits, thus better
informing Congress of the basis for the request. |
