The Government Performance and Results Act (GPRA), which was passed in 1993 and fully implemented on Oct. 1, 1997, set out to establish a system for measuring each agency's performance — both as a whole and for specific programs — that can be tied to the congressional appropriations process.

More specifically, GPRA requires:

• Each federal agency to develop a 5-year strategic plan that is to be updated every three years. These strategic plans are to include general agency goals and objectives, including outcome-related measures and how these relate to specific program performance goals.
  
  In creating the plans the agencies must consult with Congress and actively solicit the views of other affected or interested entities.
  
  OMB oversees the development of these plans and has provided guidelines for the preparation and submission of them (Part 2 of OMB Circular A-11). The first strategic plans were submitted to Congress and OMB in September 1997; they must be resubmitted every three years but may be resubmitted sooner.(1) Circular A-11 "strongly" encourages agencies to submit an agency-wide plan although many sub-agencies have created individual plans as well.


• Each federal agency to develop an annual performance plan that provides objective, quantifiable criteria by which to measure the success of each program activity. These performance plans must contain quantifiable measures and indicators for every program activity operated by the agency. The performance plans were submitted to Congress -- as required by the law -- with the FY 1999 U.S. Budget in February 1998.
  
  The performance goals must be described in detail including the organizational cost and validity of the measures. If the agency and OMB agree that the outcomes of a particular program cannot be quantified, a descriptive statement can be written which must include the infeasibility or impracticality of quantifying the program's goals. Thus, there is a heavy emphasis on quantifiable measures. Agencies can aggregate, disaggregate, or consolidate program areas to comply but may not minimize the significance of any single program in doing so.


• Starting in 2000, each federal agency must submit program performance reports to Congress. The program performance reports must review and evaluate the success of achieving the performance goals from the previous fiscal year. On March 31, 2000, the first annual reports must be submitted to Congress. The agency assessment is to reach back three years, starting in 2003, and must compare performance for the current fiscal year with that of the previous year. The reports must also assess the effectiveness of any waivers granted under GPRA (see next item).


• OMB may grant agency waivers in limited areas to help agencies achieve performance goals. In exchange for "accountability to achieve a performance goal," OMB may approve agency waivers dealing with: administrative procedures and controls; staffing levels; limitations on compensation; prohibitions or restrictions on funding transfers in specific areas.(2) These managerial waivers were designed to allow agencies the administrative flexibility that other countries found necessary to maximize performance measurement activities. Agencies may submit waiver requests to OMB starting with their first performance plan, and must describe and quantify the anticipated effects on agency performance. Since GPRA's passage other laws have given agencies many of these same waiver authorities.


• Creation of performance budgeting pilots. OMB is to designate five agencies to present budgets which would outline performance differences in program areas at different levels of funding. These pilots will be tested in fiscal years 1998 and 1999. A report on the outcomes of the pilot is required no later than March 31, 2001.

Notes

1. Circular A-11 requires agencies to submit plans 45 days before the deadline.

2. Waivers are limited to the following services: travel and transportation; rent, communications and travel; advisory; and supplies and maintenance.