(original signed by)
FROM: Steven Kelman
Administrator
SUBJECT: Procurement Performance Measures for a World Class Acquisition System
This memorandum follows up on our work with the President's Management
Council (PMC) that resulted in the procurement performance measures
that were recently forwarded to your office. The OMB Memorandum
9625 (Attachment A) provided a copy of the PMC Procurement
Task Force Report entitled, "Measuring Up Procurement
Performance Measures and a Best Practices Campaign for a World
Class Acquisition System" and a supplemental guide to assist
you in selecting appropriate measures.
The Task Force Report includes a menu of measures that agencies
can use to measure progress in improving performance relating
to quality, timeliness, productivity, and price in order to achieve
an efficient procurement system. The measures selected by your
agency should be based on your mission, organizational structure,
types of procurements, and availability of data collection systems.
I would urge agencies to emphasize measures that relate to how
well the results of the procurement system serve taxpayers.
The Task Force Report also calls on each agency to develop a plan by October 1996 for utilizing procurement performance measures with implementation to begin during FY 1997. Further, the Report states that the measures that are chosen should ultimately be integrated with your agency's implementation of the Government Performance and Results Act (GPRA). We would like to begin working with you now so that appropriate procurement performance goals and measures can be included in the FY 99 annual performance plan required by GPRA which is due next September with the FY 99 budget submission.
Although the PMC will maintain oversight of this effort, we ask that you provide a copy of your plan and selected performance measures to OFPP by November 1, 1996. We are particularly interested that you target measures that will help us assess your agency's progress in implementing procurement reforms and other OFPP initiatives. We would expect that during FY 97 you will begin to develop the baseline data so that you will have a basis to establish performance goals for the FY 99 annual performance plan.
We look forward to working with you and your RMO to ensure that realistic goals are developed for the PMC measures. We would like a status report by February 1997 of your progress in this very important initiative. We urge you to work closely with your agency's GPRA official to ensure that your procurement goals and measures are integrated in the agency's submission next year. Should you have questions, please contact Linda Williams of my staff on 2023953302.
You should also be aware that under OMB Circular A11, Par 3 (Attachment B), OMB is working with agencies to review the achievement of cost, schedule, and performance goals for major acquisition programs. The information to support those reviews is not covered by the PMC procurement performance measures and should be submitted directly to your OMB Resource Management Office (RMO) rather than included in the response to this request. Questions concerning A11, Part 3 should be directed to Dave Muzio on 2023956805.
Attachments
Return to DOT Acquisition and Grant Management Home Page