
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 106-554 Section 1(a)(3)[120]]
[Document affected by Public Law 107-67 Section 634]
[Document affected by Public Law 106-398 Section 1[832]]
[Document affected by Public Law 106-553 Section 1(a)(2)[208]]
[Document affected by Public Law 107-73 Section 108]
[Document affected by Public Law 107-77 Section 207]
[CITE: 31USC501]

 
                       TITLE 31--MONEY AND FINANCE
 
                           SUBTITLE I--GENERAL
 
               CHAPTER 5--OFFICE OF MANAGEMENT AND BUDGET
 
                       SUBCHAPTER I--ORGANIZATION
 
Sec. 501. Office of Management and Budget

    The Office of Management and Budget is an office in the Executive 
Office of the President.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 886.)

                                          Historical and Revision Notes
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---------------------------------
           Revised Section                    Source (U.S. Code                
Source (Statutes at Large)
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---------------------------------
501..................................  31:16(1st sentence).            June 10,
 1921, ch. 18, Sec.  207(1st
                                                                        sentenc
e), 42 Stat. 22; Reorg. Plan No.
                                                                        1 of 19
39, eff. July 1, 1939, Sec.  1,
                                                                        53 Stat
. 1423; Reorg. Plan No. 2 of
                                                                        1970, e
ff. July 1, 1970, Sec.  102(a),
                                                                        84 Stat
. 2085; restated Mar. 2, 1974,
                                                                        Pub. L.
 93-250, Sec.  1, 88 Stat. 11.
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---------------------------------

                      Short Title of 1990 Amendment

    Pub. L. 101-576, title I, Sec. 101, Nov. 15, 1990, 104 Stat. 2838, 
provided that: ``This Act [enacting sections 503, 504, 901 to 903, and 
3515 of this title, amending sections 502, 1105, 3512, 3521, 9105, and 
9106 of this title, sections 5313 to 5315 of Title 5, Government 
Organization and Employees, and section 3533 of Title 42, The Public 
Health and Welfare, renumbering sections 503 and 504 of this title as 
505 and 506 of this title, respectively, enacting provisions set out as 
notes under this section and sections 901, 3511, 3515, and 3521 of this 
title, and amending provisions set out as a note under section 301 of 
Title 38, Veterans' Benefits] may be cited as the `Chief Financial 
Officers Act of 1990'.''

                          Transfer of Functions

    Pub. L. 104-53, title II, Sec. 211, Nov. 19, 1995, 109 Stat. 535, as 
amended by Pub. L. 104-316, title II, Sec. 203, Oct. 19, 1996, 110 Stat. 
3845, provided that: ``Personnel transferred pursuant to this section, 
as in effect immediately before the effective date of section 303 [203] 
of the General Accounting Office Act of 1996 [Pub. L. 104-316, Oct. 19, 
1996], shall not be separated or reduced in classification or 
compensation for one year after any such transfer, except for cause.''

                    Emergency Preparedness Functions

    For assignment of certain emergency preparedness functions to 
Director of the Office of Management and Budget, see Parts 1, 2, and 28 
of Ex. Ord. No. 12656, Nov. 18, 1988, 53 F.R. 47491, set out as a note 
under section 5195 of Title 42, The Public Health and Welfare.


 Study of Policies and Procedures for Transfer of Commercial Activities

    Pub. L. 106-398, Sec. 1 [[div. A], title VIII, Sec. 832], Oct. 30, 
2000, 114 Stat. 1654, 1654A-221, provided that:
    ``(a) GAO-Convened Panel.--The Comptroller General shall convene a 
panel of experts to study the policies and procedures governing the 
transfer of commercial activities for the Federal Government from 
Government personnel to a Federal contractor, including--
        ``(1) procedures for determining whether functions should 
    continue to be performed by Government personnel;
        ``(2) procedures for comparing the costs of performance of 
    functions by Government personnel and the costs of performance of 
    such functions by Federal contractors;
        ``(3) implementation by the Department of Defense of the Federal 
    Activities Inventory Reform Act of 1998 (Public Law 105-270; 31 
    U.S.C. 501 note); and
        ``(4) procedures of the Department of Defense for public-private 
    competitions pursuant to the Office of Management and Budget 
    Circular A-76.
    ``(b) Composition of Panel.--(1) The Comptroller General shall 
appoint highly qualified and knowledgeable persons to serve on the panel 
and shall ensure that the following entities receive fair representation 
on the panel:
        ``(A) The Department of Defense.
        ``(B) Persons in private industry.
        ``(C) Federal labor organizations.
        ``(D) The Office of Management and Budget.
    ``(2) For the purposes of the requirement for fair representation 
under paragraph (1), persons serving on the panel under subparagraph (C) 
of that paragraph shall not be counted as persons serving on the panel 
under subparagraph (A), (B), or (D) of that paragraph.
    ``(c) Chairman.--The Comptroller General, or an individual within 
the General Accounting Office designated by the Comptroller General, 
shall be the chairman of the panel.
    ``(d) Participation by Other Interested Parties.--The chairman shall 
ensure that all interested parties, including individuals who are not 
represented on the panel who are officers or employees of the United 
States, persons in private industry, or representatives of Federal labor 
organizations, have the opportunity to submit information and views on 
the matters being studied by the panel.
    ``(e) Information From Agencies.--The panel may request directly 
from any department or agency of the United States any information that 
the panel considers necessary to carry out a meaningful study of the 
policies and procedures described in subsection (a), including the 
Office of Management and Budget Circular A-76 process. To the extent 
consistent with applicable laws and regulations, the head of such 
department or agency shall furnish the requested information to the 
panel.
    ``(f) Report.--Not later than May 1, 2002, the Comptroller General 
shall submit the report of the panel on the results of the study to 
Congress, including recommended changes with respect to implementation 
of policies and enactment of legislation.
    ``(g) Definition.--In this section, the term `Federal labor 
organization' has the meaning given the term `labor organization' in 
section 7103(a)(4) of title 5, United States Code.''


                       Use of Private Enterprises

    Pub. L. 106-53, title II, Sec. 227, Aug. 17, 1999, 113 Stat. 298, 
provided that:
    ``(a) In General.--The Secretary [of the Army] shall comply with the 
requirements of the Federal Activities Inventory Reform Act of 1998 (31 
U.S.C. 501 note; Public Law 105-270).
    ``(b) Compliance With Other Law.--
        ``(1) Inventory and review.--In carrying out this section, the 
    Secretary shall inventory and review all activities that are not 
    inherently governmental in nature in accordance with the Federal 
    Activities Inventory Reform Act of 1998.
        ``(2) Architectural and engineering services.--Any review and 
    conversion by the Secretary to performance by private enterprise of 
    an architectural or engineering service (including a surveying or 
    mapping service) shall be carried out in accordance with title IX of 
    the Federal Property and Administrative Services Act of 1949 (40 
    U.S.C. 541 et seq.).''


                   Federal Activities Inventory Reform

    Pub. L. 105-270, Oct. 19, 1998, 112 Stat. 2382, provided that:
``SECTION 1. SHORT TITLE.
    ``This Act may be cited as the `Federal Activities Inventory Reform 
Act of 1998'.
``SEC. 2. ANNUAL LISTS OF GOVERNMENT ACTIVITIES NOT INHERENTLY 
        GOVERNMENTAL IN NATURE.
    ``(a) Lists Required.--Not later than the end of the third quarter 
of each fiscal year, the head of each executive agency shall submit to 
the Director of the Office of Management and Budget a list of activities 
performed by Federal Government sources for the executive agency that, 
in the judgment of the head of the executive agency, are not inherently 
governmental functions. The entry for an activity on the list shall 
include the following:
        ``(1) The fiscal year for which the activity first appeared on a 
    list prepared under this section.
        ``(2) The number of full-time employees (or its equivalent) that 
    are necessary for the performance of the activity by a Federal 
    Government source.
        ``(3) The name of a Federal Government employee responsible for 
    the activity from whom additional information about the activity may 
    be obtained.
    ``(b) OMB Review and Consultation.--The Director of the Office of 
Management and Budget shall review the executive agency's list for a 
fiscal year and consult with the head of the executive agency regarding 
the content of the final list for that fiscal year.
    ``(c) Public Availability of Lists.--
        ``(1) Publication.--Upon the completion of the review and 
    consultation regarding a list of an executive agency--
            ``(A) the head of the executive agency shall promptly 
        transmit a copy of the list to Congress and make the list 
        available to the public; and
            ``(B) the Director of the Office of Management and Budget 
        shall promptly publish in the Federal Register a notice that the 
        list is available to the public.
        ``(2) Changes.--If the list changes after the publication of the 
    notice as a result of the resolution of a challenge under section 3, 
    the head of the executive agency shall promptly--
            ``(A) make each such change available to the public and 
        transmit a copy of the change to Congress; and
            ``(B) publish in the Federal Register a notice that the 
        change is available to the public.
    ``(d) Competition Required.--Within a reasonable time after the date 
on which a notice of the public availability of a list is published 
under subsection (c), the head of the executive agency concerned shall 
review the activities on the list. Each time that the head of the 
executive agency considers contracting with a private sector source for 
the performance of such an activity, the head of the executive agency 
shall use a competitive process to select the source (except as may 
otherwise be provided in a law other than this Act, an Executive order, 
regulations, or any executive branch circular setting forth requirements 
or guidance that is issued by competent executive authority). The 
Director of the Office of Management and Budget shall issue guidance for 
the administration of this subsection.
    ``(e) Realistic and Fair Cost Comparisons.--For the purpose of 
determining whether to contract with a source in the private sector for 
the performance of an executive agency activity on the list on the basis 
of a comparison of the costs of procuring services from such a source 
with the costs of performing that activity by the executive agency, the 
head of the executive agency shall ensure that all costs (including the 
costs of quality assurance, technical monitoring of the performance of 
such function, liability insurance, employee retirement and disability 
benefits, and all other overhead costs) are considered and that the 
costs considered are realistic and fair.
``SEC. 3. CHALLENGES TO THE LIST.
    ``(a) Challenge Authorized.--An interested party may submit to an 
executive agency a challenge of an omission of a particular activity 
from, or an inclusion of a particular activity on, a list for which a 
notice of public availability has been published under section 2.
    ``(b) Interested Party Defined.--For the purposes of this section, 
the term `interested party', with respect to an activity referred to in 
subsection (a), means the following:
        ``(1) A private sector source that--
            ``(A) is an actual or prospective offeror for any contract, 
        or other form of agreement, to perform the activity; and
            ``(B) has a direct economic interest in performing the 
        activity that would be adversely affected by a determination not 
        to procure the performance of the activity from a private sector 
        source.
        ``(2) A representative of any business or professional 
    association that includes within its membership private sector 
    sources referred to in paragraph (1).
        ``(3) An officer or employee of an organization within an 
    executive agency that is an actual or prospective offeror to perform 
    the activity.
        ``(4) The head of any labor organization referred to in section 
    7103(a)(4) of title 5, United States Code, that includes within its 
    membership officers or employees of an organization referred to in 
    paragraph (3).
    ``(c) Time for Submission.--A challenge to a list shall be submitted 
to the executive agency concerned within 30 days after the publication 
of the notice of the public availability of the list under section 2.
    ``(d) Initial Decision.--Within 28 days after an executive agency 
receives a challenge, an official designated by the head of the 
executive agency shall--
        ``(1) decide the challenge; and
        ``(2) transmit to the party submitting the challenge a written 
    notification of the decision together with a discussion of the 
    rationale for the decision and an explanation of the party's right 
    to appeal under subsection (e).
    ``(e) Appeal.--
        ``(1) Authorization of appeal.--An interested party may appeal 
    an adverse decision of the official to the head of the executive 
    agency within 10 days after receiving a notification of the decision 
    under subsection (d).
        ``(2) Decision on appeal.--Within 10 days after the head of an 
    executive agency receives an appeal of a decision under paragraph 
    (1), the head of the executive agency shall decide the appeal and 
    transmit to the party submitting the appeal a written notification 
    of the decision together with a discussion of the rationale for the 
    decision.
``SEC. 4. APPLICABILITY.
    ``(a) Executive Agencies Covered.--Except as provided in subsection 
(b), this Act applies to the following executive agencies:
        ``(1) Executive department.--An executive department named in 
    section 101 of title 5, United States Code.
        ``(2) Military department.--A military department named in 
    section 102 of title 5, United States Code.
        ``(3) Independent establishment.--An independent establishment, 
    as defined in section 104 of title 5, United States Code.
    ``(b) Exceptions.--This Act does not apply to or with respect to the 
following:
        ``(1) General accounting office.--The General Accounting Office.
        ``(2) Government corporation.--A Government corporation or a 
    Government controlled corporation, as those terms are defined in 
    section 103 of title 5, United States Code.
        ``(3) Nonappropriated funds instrumentality.--A part of a 
    department or agency if all of the employees of that part of the 
    department or agency are employees referred to in section 2105(c) of 
    title 5, United States Code.
        ``(4) Certain depot-level maintenance and repair.--Depot-level 
    maintenance and repair of the Department of Defense (as defined in 
    section 2460 of title 10, United States Code).
``SEC. 5. DEFINITIONS.
    ``In this Act:
        ``(1) Federal government source.--The term `Federal Government 
    source', with respect to performance of an activity, means any 
    organization within an executive agency that uses Federal Government 
    employees to perform the activity.
        ``(2) Inherently governmental function.--
            ``(A) Definition.--The term `inherently governmental 
        function' means a function that is so intimately related to the 
        public interest as to require performance by Federal Government 
        employees.
            ``(B) Functions included.--The term includes activities that 
        require either the exercise of discretion in applying Federal 
        Government authority or the making of value judgments in making 
        decisions for the Federal Government, including judgments 
        relating to monetary transactions and entitlements. An 
        inherently governmental function involves, among other things, 
        the interpretation and execution of the laws of the United 
        States so as--
                ``(i) to bind the United States to take or not to take 
            some action by contract, policy, regulation, authorization, 
            order, or otherwise;
                ``(ii) to determine, protect, and advance United States 
            economic, political, territorial, property, or other 
            interests by military or diplomatic action, civil or 
            criminal judicial proceedings, contract management, or 
            otherwise;
                ``(iii) to significantly affect the life, liberty, or 
            property of private persons;
                ``(iv) to commission, appoint, direct, or control 
            officers or employees of the United States; or
                ``(v) to exert ultimate control over the acquisition, 
            use, or disposition of the property, real or personal, 
            tangible or intangible, of the United States, including the 
            collection, control, or disbursement of appropriated and 
            other Federal funds.
            ``(C) Functions excluded.--The term does not normally 
        include--
                ``(i) gathering information for or providing advice, 
            opinions, recommendations, or ideas to Federal Government 
            officials; or
                ``(ii) any function that is primarily ministerial and 
            internal in nature (such as building security, mail 
            operations, operation of cafeterias, housekeeping, 
            facilities operations and maintenance, warehouse operations, 
            motor vehicle fleet management operations, or other routine 
            electrical or mechanical services).
``SEC. 6. EFFECTIVE DATE.
    ``This Act shall take effect on October 1, 1998.''


                Purpose of Amendments by Pub. L. 104-316

    Pub. L. 104-316, title II, Sec. 201, Oct. 19, 1996, 110 Stat. 3842, 
provided that: ``The purpose of this title [see Tables for 
classification] is to amend provisions of law to reflect, update, and 
enact transfers and subsequent delegations of functions made under 
section 211 of the Legislative Branch Appropriations Act, 1996 (Public 
Law 104-53, 109 Stat. 535) [see Transfer of Functions note above], as in 
effect immediately before this title takes effect [Oct. 19, 1996].''


               Department of Commerce Franchise Fund Pilot

    Pub. L. 106-553, Sec. 1(a)(2) [title II, Sec. 208], Dec. 21, 2000, 
114 Stat. 2762, 2762A-79, provided in part: ``That an amount not to 
exceed 4 percent of the total annual income to such fund [Commerce 
franchise fund] may be retained in the fund for fiscal year 2001 and 
each fiscal year thereafter, to remain available until expended, to be 
used for the acquisition of capital equipment, and for the improvement 
and implementation of department financial management, ADP, and other 
support systems: Provided further, That such amounts retained in the 
fund for fiscal year 2001 and each fiscal year thereafter shall be 
available for obligation and expenditure only in accordance with section 
605 of this Act [114 Stat. 2762, 2762A-104]: Provided further, That no 
later than 30 days after the end of each fiscal year, amounts in excess 
of this reserve limitation shall be deposited as miscellaneous receipts 
in the Treasury: Provided further, That such franchise fund pilot 
program shall terminate pursuant to section 403(f) of Public Law 103-356 
[set out below].''
    Similar provisions were contained in the following prior 
appropriation acts:
    Pub. L. 106-113, div. B, Sec. 1000(a)(1) [title II, Sec. 209], Nov. 
29, 1999, 113 Stat. 1535, 1501A-33.
    Pub. L. 105-277, div. A, Sec. 101(b) [title II, Sec. 209], Oct. 21, 
1998, 112 Stat. 2681-50, 2681-87.


                Department of the Interior Franchise Fund

    Pub. L. 104-208, div. A, title I, Sec. 101(d) [title I, Sec. 113], 
Sept. 30, 1996, 110 Stat. 3009-181, 3009-200, as amended by Pub. L. 106-
554, Sec. 1(a)(3) [title I, Sec. 120], Dec. 21, 2000, 114 Stat. 2763, 
2763A-135, provided that: ``There is hereby established in the Treasury 
a franchise fund until October 1, 2002 to be available without fiscal 
year limitation, for costs of capitalizing and operating administrative 
services as the Secretary determines may be performed more 
advantageously as central services: Provided, That any inventories, 
equipment, and other assets pertaining to the services to be provided by 
such fund, either on hand or on order, less the related liabilities or 
unpaid obligations, and any appropriations made prior to the current 
year for the purpose of providing capital shall be used to capitalize 
such fund: Provided further, That such fund shall be paid in advance 
from funds available to the Department and other Federal agencies for 
which such centralized services are performed, at rates which will 
return in full all expenses of operation, including accrued leave, 
depreciation of fund plant and equipment, amortization of automatic data 
processing (ADP) software and systems (either acquired or donated) and 
an amount necessary to maintain a reasonable operating reserve, as 
determined by the Secretary: Provided further, That such fund shall 
provide services on a competitive basis: Provided further, That an 
amount not to exceed four percent of the total annual income to such 
fund may be retained in the fund for fiscal year 1997 and each fiscal 
year thereafter, to remain available until expended, to be used for the 
acquisition of capital equipment, and for the improvement and 
implementation of Department financial management, ADP, and other 
support systems: Provided further, That no later than thirty days after 
the end of each fiscal year amounts in excess of this reserve limitation 
shall be transferred to the Treasury.


             Department of the Treasury Franchise Fund Pilot

    Pub. L. 104-208, div. A, title I, Sec. 101(f) [title I], Sept. 30, 
1996, 110 Stat. 3009-314, 3009-316, provided in part that: ``There is 
hereby established in the Treasury a franchise fund pilot, as authorized 
by section 403 of Public Law 103-356 [set out below], to be available as 
provided in such section for expenses and equipment necessary for the 
maintenance and operation of such financial and administrative support 
services as the Secretary determines may be performed more 
advantageously as central services: Provided, That any inventories, 
equipment, and other assets pertaining to the services to be provided by 
such fund, either on hand or on order, less the related liabilities or 
unpaid obligations, and any appropriations made for the purpose of 
providing capital, shall be used to capitalize such fund: Provided 
further, That such fund shall be reimbursed or credited with the 
payments, including advanced payments, from applicable appropriations 
and funds available to the Department and other Federal agencies for 
which such administrative and financial services are performed, at rates 
which will recover all expenses of operation, including accrued leave, 
depreciation of fund plant and equipment, amortization of Automatic Data 
Processing (ADP) software and systems, and an amount necessary to 
maintain a reasonable operating reserve, as determined by the Secretary: 
Provided further, That such fund shall provide services on a competitive 
basis: Provided further, That an amount not to exceed 4 percent of the 
total annual income to such fund may be retained in the fund for fiscal 
year 1997 and each fiscal year thereafter, to remain available until 
expended, to be used for the acquisition of capital equipment and for 
the improvement and implementation of Treasury financial management, 
ADP, and other support systems: Provided further, That no later than 30 
days after the end of each fiscal year, amounts in excess of this 
reserve limitation shall be deposited as miscellaneous receipts in the 
Treasury: Provided further, That such franchise fund pilot shall 
terminate pursuant to section 403(f) of Public Law 103-356.''


           Department of Veterans Affairs Franchise Fund Pilot

    Pub. L. 104-204, title I, Sept. 26, 1996, 110 Stat. 2880, provided 
in part that: ``There is hereby established in the Treasury a franchise 
fund pilot, as authorized by section 403 of Public Law 103-356 [set out 
below], to be available as provided in such section for expenses and 
equipment necessary for the maintenance and operation of such 
administrative services as the Secretary determines may be performed 
more advantageously as central services: Provided, That any inventories, 
equipment and other assets pertaining to the services to be provided by 
the franchise fund, either on hand or on order, less the related 
liabilities or unpaid obligations, and any appropriations made hereafter 
for the purpose of providing capital, shall be used to capitalize the 
franchise fund: Provided further, That the franchise fund may be paid in 
advance from funds available to the Department and other Federal 
agencies for which such centralized services are performed, at rates 
which will return in full all expenses of operation, including accrued 
leave, depreciation of fund plant and equipment, amortization of 
automated data processing (ADP) software and systems (either acquired or 
donated), and an amount necessary to maintain a reasonable operating 
reserve, as determined by the Secretary: Provided further, That the 
franchise fund shall provide services on a competitive basis: Provided 
further, That an amount not to exceed four percent of the total annual 
income to such fund may be retained in the fund for fiscal year 1997 and 
each fiscal year thereafter, to remain available until expended, to be 
used for the acquisition of capital equipment and for the improvement 
and implementation of Departmental financial management, ADP, and other 
support systems: Provided further, That no later than thirty days after 
the end of each fiscal year amounts in excess of this reserve limitation 
shall be transferred to the Treasury: Provided further, That such 
franchise fund pilot shall terminate pursuant to section 403(f) of 
Public Law 103-356.''


          Environmental Protection Agency Franchise Fund Pilot

    Pub. L. 104-204, title III, Sept. 26, 1996, 110 Stat. 2912, as 
amended, formerly set out as a note under this section, was transferred 
and is classified to section 4370e of Title 42, The Public Health and 
Welfare.


        Federal Emergency Management Agency Franchise Fund Pilot

    Pub. L. 104-204, title III, Sept. 26, 1996, 110 Stat. 2915, provided 
in part: ``For the establishment of a working capital fund for the 
Federal Emergency Management Agency, to be available without fiscal year 
limitation, for expenses and equipment necessary for maintenance and 
operations of such administrative services as the Director determines 
may be performed more advantageously as central services: Provided, That 
any inventories, equipment, and other assets pertaining to the services 
to be provided by such fund, either on hand or on order, less the 
related liabilities or unpaid obligations, and any appropriations made 
hereafter for the purpose of providing capital, shall be used to 
capitalize such fund: Provided further, That such fund shall be 
reimbursed or credited with advance payments from applicable 
appropriations and funds of the Federal Emergency Management Agency, 
other Federal agencies, and other sources authorized by law for which 
such centralized services are performed, including supplies, materials, 
and services, at rates that will return in full all expenses of 
operation, including accrued leave, depreciation of fund plant and 
equipment, amortization of automated data processing (ADP) software and 
systems (either acquired or donated), and an amount necessary to 
maintain a reasonable operating reserve as determined by the Director: 
Provided further, That income of such fund may be retained, to remain 
available until expended, for purposes of the fund: Provided further, 
That fees for services shall be established by the Director at a level 
to cover the total estimated costs of providing such services, such fees 
to be deposited in the fund shall remain available until expended for 
purposes of the fund: Provided further, That such fund shall terminate 
in a manner consistent with section 403(f) of Public Law 103-356 [set 
out below].''


                      Franchise Fund Pilot Programs

    Pub. L. 103-356, title IV, Sec. 403, Oct. 13, 1994, 108 Stat. 3413, 
as amended by Pub. L. 104-208, div. A, title I, Sec. 101(f) [title VI, 
Sec. 627], Sept. 30, 1996, 110 Stat. 3009-314, 3009-360, provided that:
    ``(a) Establishment.--There is authorized to be established on a 
pilot program basis in each of six executive agencies a franchise fund. 
The Director of the Office of Management and Budget, after consultation 
with the chairman and ranking members of the Committees on 
Appropriations and Governmental Affairs of the Senate, and the 
Committees on Appropriations and Government Operations [now Committee on 
Government Reform] of the House of Representatives, shall designate the 
agencies.
    ``(b) Uses.--Each such fund may provide, consistent with guidelines 
established by the Director of the Office of Management and Budget, such 
common administrative support services to the agency and to other 
agencies as the head of such agency, with the concurrence of the 
Director, determines can be provided more efficiently through such a 
fund than by other means. To provide such services, each such fund is 
authorized to acquire the capital equipment, automated data processing 
systems, and financial management and management information systems 
needed. Services shall be provided by such funds on a competitive basis.
    ``(c) Funding.--(1) There are authorized to be appropriated to the 
franchise fund of each agency designated under subsection (a) such funds 
as are necessary to carry out the purposes of the fund, to remain 
available until expended. To the extent that unexpended balances remain 
available in other accounts for the purposes to be carried out by the 
fund, the head of the agency may transfer such balances to the fund.
    ``(2) Fees for services shall be established by the head of the 
agency at a level to cover the total estimated costs of providing such 
services. Such fees shall be deposited in the agency's fund to remain 
available until expended, and may be used to carry out the purposes of 
the fund.
    ``(3) Existing inventories, including inventories on order, 
equipment, and other assets or liabilities pertaining to the purposes of 
the fund may be transferred to the fund.
    ``(d) Report on Pilot Programs.--Within 6 months after the end of 
fiscal year 1997, the Director of the Office of Management and Budget 
shall forward a report on the results of the pilot programs to the 
Committees on Appropriations of the Senate and of the House of 
Representatives, and to the Committee on Governmental Affairs of the 
Senate and the Committee on Government Operations [now Committee on 
Government Reform] of the House of Representatives. The report shall 
contain the financial and program performance results of the pilot 
programs, including recommendations for--
        ``(1) the structure of the fund;
        ``(2) the composition of the funding mechanism;
        ``(3) the capacity of the fund to promote competition; and
        ``(4) the desirability of extending the application and 
    implementation of franchise funds to other Federal agencies.
    ``(e) Procurement.--Nothing in this section shall be construed as 
relieving any agency of any duty under applicable procurement laws.
    ``(f) Termination.--The provisions of this section shall expire on 
October 1, 2001.''


             Simplification of Management Reporting Process

    Pub. L. 103-356, title IV, Sec. 404, Oct. 13, 1994, 108 Stat. 3414, 
as amended by Pub. L. 104-208, div. A, title I, Sec. 101(f) [title VI, 
Sec. 646], Sept. 30, 1996, 110 Stat. 3009-314, 3009-366; Pub. L. 106-
113, div. B, Sec. 1000(a)(5) [title II, Sec. 241], Nov. 29, 1999, 113 
Stat. 1536, 1501A-303, provided that:
    ``(a) In General.--To improve the efficiency of executive branch 
performance in implementing statutory requirements for financial 
management reporting to the Congress and its committees, the Director of 
the Office of Management and Budget may adjust the frequency and due 
dates of or consolidate any statutorily required reports of agencies to 
the Office of Management and Budget or the President and of agencies or 
the Office of Management and Budget to the Congress under any laws for 
which the Office of Management and Budget has financial management 
responsibility, including--
        ``(1) chapters 5, 9, 11, 33, 35, 37, 39, 75, and 91 of title 31, 
    United States Code;
        ``(2) the Federal Civil Penalties Inflation Adjustment Act of 
    1990 (28 U.S.C. 2461 note; Public Law 101-410; 104 Stat. 890).
    ``(b) Application.--The authority provided in subsection (a) shall 
apply only to reports of agencies to the Office of Management and Budget 
or the President and of agencies or the Office of Management and Budget 
to the Congress required by statute to be submitted between January 1, 
1995, and April 30, 2000.
    ``(c) Adjustments in Reporting.--The Director may consolidate or 
adjust the frequency and due dates of any statutorily required reports 
under subsections (a) and (b) only after--
        ``(1) consultation with the Chairman of the Senate Committee on 
    Governmental Affairs and the Chairman of the House of 
    Representatives Committee on Government Operations [now Committee on 
    Government Reform]; and
        ``(2) written notification to the Congress, no later than 
    February 8 of each fiscal year covered under subsection (b) for 
    those reports required to be submitted during that fiscal year.''


      Findings and Purposes of Chief Financial Officers Act of 1990

    Pub. L. 101-576, title I, Sec. 102, Nov. 15, 1990, 104 Stat. 2838, 
provided that:
    ``(a) Findings.--The Congress finds the following:
        ``(1) General management functions of the Office of Management 
    and Budget need to be significantly enhanced to improve the 
    efficiency and effectiveness of the Federal Government.
        ``(2) Financial management functions of the Office of Management 
    and Budget need to be significantly enhanced to provide overall 
    direction and leadership in the development of a modern Federal 
    financial management structure and associated systems.
        ``(3) Billions of dollars are lost each year through fraud, 
    waste, abuse, and mismanagement among the hundreds of programs in 
    the Federal Government.
        ``(4) These losses could be significantly decreased by improved 
    management, including improved central coordination of internal 
    controls and financial accounting.
        ``(5) The Federal Government is in great need of fundamental 
    reform in financial management requirements and practices as 
    financial management systems are obsolete and inefficient, and do 
    not provide complete, consistent, reliable, and timely information.
        ``(6) Current financial reporting practices of the Federal 
    Government do not accurately disclose the current and probable 
    future cost of operating and investment decisions, including the 
    future need for cash or other resources, do not permit adequate 
    comparison of actual costs among executive agencies, and do not 
    provide the timely information required for efficient management of 
    programs.
    ``(b) Purposes.--The purposes of this Act [see Short Title of 1990 
Amendment note above] are the following:
        ``(1) Bring more effective general and financial management 
    practices to the Federal Government through statutory provisions 
    which would establish in the Office of Management and Budget a 
    Deputy Director for Management, establish an Office of Federal 
    Financial Management headed by a Controller, and designate a Chief 
    Financial Officer in each executive department and in each major 
    executive agency in the Federal Government.
        ``(2) Provide for improvement, in each agency of the Federal 
    Government, of systems of accounting, financial management, and 
    internal controls to assure the issuance of reliable financial 
    information and to deter fraud, waste, and abuse of Government 
    resources.
        ``(3) Provide for the production of complete, reliable, timely, 
    and consistent financial information for use by the executive branch 
    of the Government and the Congress in the financing, management, and 
    evaluation of Federal programs.''


           Duties and Functions of Department of the Treasury

    Pub. L. 101-576, title II, Sec. 204, Nov. 15, 1990, 104 Stat. 2842, 
provided that: ``Nothing in this Act [see Short Title of 1990 Amendment 
note above] shall be construed to interfere with the exercise of the 
functions, duties, and responsibilities of the Department of the 
Treasury, as in effect immediately before the enactment of this Act 
[Nov. 15, 1990].''


                    REORGANIZATION PLAN NO. 2 OF 1970

Eff. July 1, 1970, 35 F.R. 7959, 84 Stat. 2085, as amended Pub. 
    L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068, 1085

Prepared by the President and Transmitted to the Senate and the House of 
    Representatives in Congress Assembled March 12, 1970, Pursuant to 
    the Provisions of Chapter 9 of Title 5 of the United States Code.

        OFFICE OF MANAGEMENT AND BUDGET; DOMESTIC COUNCIL

             PART I. OFFICE OF MANAGEMENT AND BUDGET


           Section 101. Transfer of functions to the President

    There are hereby transferred to the President of the United States 
all functions vested by law (including reorganization plan) in the 
Bureau of the Budget or the Director of the Bureau of the Budget.


                Sec. 102. Office of Management and Budget

    [Repealed. Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068, 
1085. Section designated the Bureau of the Budget as the Office of 
Management and Budget, provided for the officers and their duties, and 
provided for performance of the duties of the Director in the event of 
absence or disability or a vacancy in the office of Director.]


            Sec. 103. Records, Property, Personnel, and Funds

    [Repealed. Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068, 
1085. Section provided that the records, property, personnel, and 
unexpended balances etc., of the Bureau of the Budget shall become those 
of the Office of Management and Budget.]

                    PART II. DOMESTIC COUNCIL


                 Sec. 201. Establishment of the Council

    (a) There is hereby established in the Executive Office of the 
President a Domestic Council, hereinafter referred to as the Council.
    (b) The Council shall be composed of the following:
        The President of the United States
        The Vice President of the United States
        The Attorney General
        Secretary of Agriculture
        Secretary of Commerce
        Secretary of Health, Education, and Welfare
        Secretary of Housing and Urban Development
        Secretary of the Interior
        Secretary of Labor
        Secretary of Transportation
        Secretary of the Treasury
and such other officers of the Executive Branch as the President may 
from time to time direct.
    (c) The President of the United States shall preside over meetings 
of the Council: Provided, That, in the event of his absence, he may 
designate a member of the Council to preside.


                   Sec. 202. Functions of the Council

    The Council shall perform such functions as the President may from 
time to time delegate or assign thereto.


                      Sec. 203. Executive Director

    The staff of the Council shall be headed by an Executive Director 
who shall be an assistant to the President designated by the President. 
The Executive Director shall perform such functions as the President may 
from time to time direct.

                     PART III. TAKING EFFECT


                        Sec. 301. Effective Date

    The provisions of this reorganization plan shall take effect as 
provided by section 906(a) of title 5 of the United States Code, or on 
July 1, 1970, whichever is later.


                        Message of the President

To the Congress of the United States:
    We in government often are quick to call for reform in other 
institutions, but slow to reform ourselves. Yet nowhere today is modern 
management more needed than in government itself.
    In 1939, President Franklin D. Roosevelt proposed and the Congress 
accepted a reorganization plan that laid the groundwork for providing 
managerial assistance for a modern Presidency.
    The plan placed the Bureau of the Budget within the Executive Office 
of the President. It made available to the President direct access to 
important new management instruments. The purpose of the plan was to 
improve the administration of the Government--to ensure that the 
Government could perform ``promptly, effectively, without waste or lost 
motion.''
    Fulfilling that purpose today is far more difficult--and more 
important--than it was 30 years ago.
    Last April, I created a President's Advisory Council on Executive 
Organization and named to it a distinguished group of outstanding 
experts headed by Roy L. Ash. I gave the Council a broad charter to 
examine ways in which the Executive Branch could be better organized. I 
asked it to recommend specific organizational changes that would make 
the Executive Branch a more vigorous and more effective instrument for 
creating and carrying out the programs that are needed today. The 
Council quickly concluded that the place to begin was in the Executive 
Office of the President itself. I agree.
    The past 30 years have seen enormous changes in the size, structure 
and functions of the Federal Government. The budget has grown from less 
than $10 billion to $200 billion. The number of civilian employees has 
risen from one million to more than two and a half million. Four new 
Cabinet departments have been created, along with more than a score of 
independent agencies. Domestic policy issues have become increasingly 
complex. The interrelationships among Government programs have become 
more intricate. Yet the organization of the President's policy and 
management arms has not kept pace.
    Over three decades, the Executive Office of the President has 
mushroomed but not by conscious design. In many areas it does not 
provide the kind of staff assistance and support the President needs in 
order to deal with the problems of government in the 1970s. We confront 
the 1970s with a staff organization geared in large measure to the tasks 
of the 1940s and 1950s.
    One result, over the years, has been a tendency to enlarge the 
immediate White House staff--that is, the President's personal staff, as 
distinct from the institutional structure--to assist with management 
functions for which the President is responsible. This has blurred the 
distinction between personal staff and management institutions; it has 
left key management functions to be performed only intermittently and 
some not at all. It has perpetuated outdated structures.
    Another result has been, paradoxically, to inhibit the delegation of 
authority to Departments and agencies.
    A President whose programs are carefully coordinated, whose 
information system keeps him adequately informed, and whose 
organizational assignments are plainly set out, can delegate authority 
with security and confidence. A President whose office is deficient in 
these respects will be inclined, instead, to retain close control of 
operating responsibilities which he cannot and should not handle.
    Improving the management processes of the President's own office, 
therefore, is a key element in improving the management of the entire 
Executive Branch, and in strengthening the authority of its Departments 
and agencies. By providing the tools that are needed to reduce 
duplication, to monitor performance and to promote greater efficiency 
throughout the Executive Branch, this also will enable us to give the 
country not only more effective but also more economical government--
which it deserves.
    To provide the management tools and policy mechanisms needed for the 
1970s, I am today transmitting to the Congress Reorganization Plan No. 2 
of 1970, prepared in accordance with Chapter 9 of Title 5 of the United 
States Code.
    This plan draws not only on the work of the Ash Council itself, but 
also on the work of others that preceded--including the pioneering 
Brownlow Committee of 1936, the two Hoover Commissions, the Rockefeller 
Committee, and other Presidential task forces.
    Essentially, the plan recognizes that two closely connected but 
basically separate functions both center in the President's office: 
policy determination and executive management. This involves (1) what 
government should do, and (2) how it goes about doing it.
    My proposed reorganization creates a new entity to deal with each of 
these functions:
    --It establishes a Domestic Council, to coordinate policy 
        formulation in the domestic area. This Cabinet group would be 
        provided with an institutional staff, and to a considerable 
        degree would be a domestic counterpart to the National Security 
        Council.
    --It establishes an Office of Management and Budget, which would be 
        the President's principal arm for the exercise of his managerial 
        functions.
    The Domestic Council will be primarily concerned with what we do; 
the Office of Management and Budget will be primarily concerned with how 
we do it, and how well we do it.

                        DOMESTIC COUNCIL

    The past year's experience with the Council for Urban Affairs has 
shown how immensely valuable a Cabinet-level council can be as a forum 
for both discussion and action on policy matters that cut across 
departmental jurisdictions.
    The Domestic Council will be chaired by the President. Under the 
plan, its membership will include the Vice President, and the 
Secretaries of the Treasury, Interior, Agriculture, Commerce, Labor, 
Health, Education and Welfare, Housing and Urban Development, and 
Transportation, and the Attorney General. I also intend to designate as 
members the Director of the Office of Economic Opportunity and, while he 
remains a member of the Cabinet, the Postmaster General. (Although I 
continue to hope that the Congress will adopt my proposal to create, in 
place of the Post Office Department, a self-sufficient postal 
authority.) The President could add other Executive Branch officials at 
his discretion.
    The Council will be supported by a staff under an Executive Director 
who will also be one of the President's assistants. Like the National 
Security Council staff, this staff will work in close coordination with 
the President's personal staff but will have its own institutional 
identity. By being established on a permanent, institutional basis, it 
will be designed to develop and employ the ``institutional memory'' so 
essential if continuity is to be maintained, and if experience is to 
play its proper role in the policy-making process.
    There does not now exist an organized, institutionally-staffed group 
charged with advising the President on the total range of domestic 
policy. The Domestic Council will fill that need. Under the President's 
direction, it will also be charged with integrating the various aspects 
of domestic policy into a consistent whole.
    Among the specific policy functions in which I intend the Domestic 
Council to take the lead are these:
    --Assessing national needs, collecting information and developing 
        forecasts, for the purpose of defining national goals and 
        objectives.
    --Identifying alternative ways of achieving these objectives, and 
        recommending consistent, integrated sets of policy choices.
    --Providing rapid response to Presidential needs for policy advice 
        on pressing domestic issues.
    --Coordinating the establishment of national priorities for the 
        allocation of available resources.
    --Maintaining a continuous review of the conduct of ongoing programs 
        from a policy standpoint, and proposing reforms as needed.
    Much of the Council's work will be accomplished by temporary, ad hoc 
project committees. These might take a variety of forms, such as task 
forces, planning groups or advisory bodies. They can be established with 
varying degrees of formality, and can be set up to deal either with 
broad program areas or with specific problems. The committees will draw 
for staff support on Department and agency experts, supplemented by the 
Council's own staff and that of the Office of Management and Budget.
    Establishment of the Domestic Council draws on the experience gained 
during the past year with the Council for Urban Affairs, the Cabinet 
Committee on the Environment and the Council for Rural Affairs. The 
principal key to the operation of these Councils has been the effective 
functioning of their various subcommittees. The Councils themselves will 
be consolidated into the Domestic Council; Urban, Rural and Environment 
subcommittees of the Domestic Council will be strengthened, using access 
to the Domestic Council staff.
    Overall, the Domestic Council will provide the President with a 
streamlined, consolidated domestic policy arm, adequately staffed, and 
highly flexible in its operation. It also will provide a structure 
through which departmental initiatives can be more fully considered, and 
expert advice from the Departments and agencies more fully utilized.

                 OFFICE OF MANAGEMENT AND BUDGET

    Under the reorganization plan, the technical and formal means by 
which the Office of Management and Budget is created is by re-
designating the Bureau of the Budget as the Office of Management and 
Budget. The functions currently vested by law in the Bureau, or in its 
director, are transferred to the President, with the provision that he 
can then re-delegate them.
    As soon as the reorganization plan takes effect, I intend to 
delegate those statutory functions to the Director of the new Office of 
Management and Budget, including those under section 212 of the Budget 
and Accounting Act, 1921 [31 U.S.C. 1113].
    However, creation of the Office of Management and Budget represents 
far more than a mere change of name for the Bureau of the Budget. It 
represents a basic change in concept and emphasis, reflecting the 
broader management needs of the Office of the President.
    The new Office will still perform the key function of assisting the 
President in the preparation of the annual Federal budget and overseeing 
its execution. It will draw upon the skills and experience of the 
extraordinarily able and dedicated career staff developed by the Bureau 
of the Budget. But preparation of the budget as such will no longer be 
its dominant, overriding concern.
    While the budget function remains a vital tool of management, it 
will be strengthened by the greater emphasis the new office will place 
on fiscal analysis. The budget function is only one of several important 
management tools that the President must now have. He must also have a 
substantially enhanced institutional staff capability in other areas of 
executive management--particularly in program evaluation and 
coordination, improvement of Executive Branch organization, information 
and management systems, and development of executive talent. Under this 
plan, strengthened capability in these areas will be provided partly 
through internal reorganization, and it will also require additional 
staff resources.
    The new Office of Management and Budget will place much greater 
emphasis on the evaluation of program performance: on assessing the 
extent to which programs are actually achieving their intended results, 
and delivering the intended services to the intended recipients. This is 
needed on a continuing basis, not as a one-time effort. Program 
evaluation will remain a function of the individual agencies as it is 
today. However, a single agency cannot fairly be expected to judge 
overall effectiveness in programs that cross agency lines--and the 
difference between agency and Presidential perspectives requires a 
capacity in the Executive Office to evaluate program performance 
whenever appropriate.
    The new Office will expand efforts to improve interagency 
cooperation in the field. Washington-based coordinators will help work 
out interagency problems at the operating level, and assist in 
developing efficient coordinating mechanisms throughout the country. The 
success of these efforts depends on the experience, persuasion, and 
understanding of an Office which will be an expediter and catalyst. The 
Office will also respond to requests from State and local governments 
for assistance on intergovernmental programs. It will work closely with 
the Vice President and the Office of Intergovernmental Relations.
    Improvement of Government organization, information and management 
systems will be a major function of the Office of Management and Budget. 
It will maintain a continuous review of the organizational structures 
and management processes of the Executive Branch, and recommend needed 
changes. It will take the lead in developing new information systems to 
provide the President with the performance and other data that he needs 
but does not now get. When new programs are launched, it will seek to 
ensure that they are not simply forced into or grafted onto existing 
organizational structures that may not be appropriate. Resistance to 
organizational change is one of the chief obstacles to effective 
government; the new Office will seek to ensure that organization keeps 
abreast of program needs.
    The new Office will also take the lead in devising programs for the 
development of career executive talent throughout the Government. Not 
the least of the President's needs as Chief Executive is direct 
capability in the Executive Office for insuring that talented executives 
are used to the full extent of their abilities. Effective, coordinated 
efforts for executive manpower development have been hampered by the 
lack of a system for forecasting the needs for executive talent and 
appraising leadership potential. Both are crucial to the success of an 
enterprise--whether private or public.
    The Office of Management and Budget will be charged with advising 
the President on the development of new programs to recruit, train, 
motivate, deploy, and evaluate the men and women who make up the top 
ranks of the civil service, in the broadest sense of that term. It will 
not deal with individuals, but will rely on the talented professionals 
of the Civil Service Commission and the Departments and agencies 
themselves to administer these programs. Under the leadership of the 
Office of Management and Budget there will be joint efforts to see to it 
that all executive talent is well utilized wherever it may be needed 
throughout the Executive Branch, and to assure that executive training 
and motivation meet not only today's needs but those of the years ahead.
    Finally, the new Office will continue the Legislative Reference 
functions now performed by the Bureau of the Budget, drawing together 
agency reactions on all proposed legislation, and helping develop 
legislation to carry out the President's program. It also will continue 
the Bureau's work of improving and coordinating Federal statistical 
services.

                   SIGNIFICANCE OF THE CHANGES

    The people deserve a more responsive and more effective Government. 
The times require it. These changes will help provide it.
    Each reorganization included in the plan which accompanies this 
message is necessary to accomplish one or more of the purposes set forth 
in Section 901(a) of Title 5 of the United States Code. In particular, 
the plan is responsive to Section 901(a)(1), ``to promote the better 
execution of the laws, the more effective management of the Executive 
Branch and of its agencies and functions, and the expeditious 
administration of the public business;'' and Section 901(a)(3), ``to 
increase the efficiency of the operations of the Government to the 
fullest extent practicable.''
    The reorganizations provided for in this plan make necessary the 
appointment and compensation of new officers, as specified in Section 
102(c) of the plan. The rates of compensation fixed for these officers 
are comparable to those fixed for other officers in the Executive Branch 
who have similar responsibilities.
    While this plan will result in a modest increase in direct 
expenditures, its strengthening of the Executive Office of the President 
will bring significant indirect savings, and at the same time will help 
ensure that people actually receive the return they deserve for every 
dollar the Government spends. The savings will result from the improved 
efficiency these changes will provide throughout the Executive Branch--
and also from curtailing the waste that results when programs simply 
fail to achieve their objectives. It is not practical, however, to 
itemize or aggregate these indirect expenditure reductions which will 
result from the reorganization.
    I expect to follow with other reorganization plans, quite possibly 
including ones that will affect other activities of the Executive Office 
of the President. Our studies are continuing. But this by itself is a 
reorganization of major significance, and a key to the more effective 
functioning of the entire Executive Branch.
    These changes would provide an improved system of policy making and 
coordination, a strengthened capacity to perform those functions that 
are now the central concerns of the Bureau of the Budget, and a more 
effective set of management tools for the performance of other functions 
that have been rapidly increasing in importance.
    The reorganization will not only improve the staff resources 
available to the President, but will also strengthen the advisory roles 
of those members of the Cabinet principally concerned with domestic 
affairs. By providing a means of formulating integrated and systematic 
recommendations on major domestic policy issues, the plan serves not 
only the needs of the President but also the interests of the Congress.
    This reorganization plan is of major importance to the functioning 
of modern government. The national interest requires it. I urge that the 
Congress allow it to become effective.
                                                          Richard Nixon.
    The White House, March 12, 1970.

                      Abolition of Domestic Council

    Domestic Council, established by Reorg. Plan No. 2 of 1970, 
Sec. 201, eff. July 1, 1970, 35 F.R. 7959, 84 Stat. 2086, set out above, 
abolished by Reorg. Plan No. 1 of 1977, Sec. 3, 42 F.R. 56101, 91 Stat. 
1633, set out in the Appendix to Title 5, Government Organization and 
Employees, effective on or before Apr. 1, 1978, at such time as 
specified by President. Section 5D of Reorg. Plan No. 1 of 1977 
transferred all functions vested in Domestic Council to President with 
power to delegate performance of such transferred functions within 
Executive Office of President.

   Ex. Ord. No. 11541. Prescribing Duties of Office of Management and 
                       Budget and Domestic Council

    Ex. Ord. No. 11541, July 1, 1970, 35 F.R. 10737, as amended by Ex. 
Ord. No. 12013, Oct. 7, 1977, 42 F.R. 54931; Ex. Ord. No. 12027, Dec. 5, 
1977, 42 F.R. 61851; Ex. Ord. No. 12107, Dec. 28, 1978, 44 F.R. 1055; 
Ex. Ord. No. 12318, Aug. 21, 1981, 46 F.R. 42833, provided:
    By virtue of the authority vested in me by the Constitution and 
statutes of the United States, including section 301 of Title 3 of the 
United States Code, and pursuant to Reorganization Plan No. 2 of 1970 
(hereinafter referred to as ``the Plan'') [set out as a note under this 
section], it is ordered as follows:
    Section 1. (a) All functions transferred to the President of the 
United States by Part I of the Plan (including the function vested by 
section 102(f) of designating the officials of the Office of Management 
and Budget who shall act as Director during the absence or disability of 
the Deputy Director or in the event of a vacancy in the office of Deputy 
Director) are hereby delegated to the Director of the Office of 
Management and Budget in the Executive Office of the President. Such 
functions shall be carried out by the Director under the direction of 
the President and pursuant to such further instructions as the President 
from time to time may issue.
    (b) All outstanding delegations, rules, regulations, orders, 
circulars, bulletins, or other forms of Executive or administrative 
action issued or taken by or relating to the Bureau of the Budget or the 
Director of the Bureau of the Budget prior to the effective date of this 
order shall, until amended or revoked, remain in full force and effect 
as if issued or taken by or relating to the Office of Management and 
Budget or the Director of the Office of Management and Budget.
    (c) The delegation to the Director of the Office of Management and 
Budget, pursuant to subsection (a) of this Section, of the functions 
vested in the Director of the Bureau of the Budget by Section 103 of the 
Budget and Accounting Procedures Act of 1950 (31 U.S.C. 18b) [31 U.S.C. 
1104(d)] and subsequently transferred to the President by Part I of 
Reorganization Plan No. 2 of 1970 (5 U.S.C. App.), shall be implemented 
in accord with Section 3(a) of the Paperwork Reduction Act of 1980 (94 
Stat. 2825; 44 U.S.C. 3503 note), to the extent that provision is 
applicable.
    (d) The delegation to the Director of the Office of Management and 
Budget of the following executive development and personnel functions 
(which have been transferred to the Office of Personnel Management) is 
terminated on December 4, 1977:
    (1) Providing overall Executive Branch leadership, regulation, and 
guidance in executive personnel selection, development and management.
    (2) Studying and reporting on issues relating to position 
classification and the compensation of Federal civilian employees, 
including linkages among pay systems, and providing reports on average 
grade levels, work-years and personnel costs of Federal civilian 
employees.
    (3) Providing primary Executive Branch leadership in (i) developing 
and reviewing a program of policy guidance to departments and agencies 
for the organization of management responsibility under the Federal 
Labor Relations program; and (ii) monitoring issues and trends in labor 
management relations for referral to appropriate Executive Branch 
officials including the Federal Labor Relations Council.
    Sec. 2. (a) Under the direction of the President and subject to such 
further instructions as the President from time to time may issue, the 
Domestic Council in the Executive Office of the President shall (1) 
receive and develop information necessary for assessing national 
domestic needs and defining national domestic goals, and develop for the 
President alternative proposals for reaching those goals; (2) 
collaborate with the Office of Management and Budget and others in the 
determination of national domestic priorities for the allocation of 
available resources; (3) collaborate with the Office of Management and 
Budget and others to assure a continuing review of ongoing programs from 
the standpoint of their relative contributions to national goals as 
compared with their use of available resources; and (4) provide policy 
advice to the President on domestic issues.
    (b) The organizations listed herein are terminated and the functions 
heretofore assigned to them shall be performed by the Domestic Council:
    Council for Urban Affairs (Executive Order No. 11452 of January 23, 
1969)
    Cabinet Committee on the Environment (Executive Order No. 11472 of 
May 29, 1969, as amended by Executive Order No. 11514 of March 5, 1970)
    Council for Rural Affairs (Executive Order No. 11493 of November 13, 
1969)
    Sec. 3. This order shall be effective July 1, 1970.

                    Supersedure of Ex. Ord. No. 11541

    Supersedure of Ex. Ord. No. 11541 to the extent that it is 
inconsistent with Ex. Ord. No. 11609, July 22, 1971, 36 F.R. 13747, see 
section 11(6) of Ex. Ord. No. 11609, set out as a note under section 301 
of Title 3, The President; with Ex. Ord. No. 11713, Apr. 21, 1973, 38 
F.R. 10069, see section 3 of Ex. Ord. No. 11713, set out as a note under 
section 301 of Title 3; with Ex. Ord. No. 11717, May 9, 1973, 38 F.R. 
12315, see section 5 of Ex. Ord. No. 11717, set out below.

                        Executive Order No. 11647

    Ex. Ord. No. 11647, Feb. 10, 1972, 37 F.R. 3167, as amended by Ex. 
Ord. No. 11731, July 23, 1973, 38 F.R. 19903; Ex. Ord. No. 11892, Dec. 
31, 1975, 41 F.R. 751; Ex. Ord. No. 12038, Feb. 3, 1978, 43 F.R. 4957, 
which established Federal Regional Councils, was revoked by section 1-
307 of Ex. Ord. No. 12149, July 20, 1979, 44 F.R. 43248.

    Ex. Ord. No. 11717. Transfer of Certain Functions From Office of 
Management and Budget to General Services Administration and Department 
                               of Commerce

    Ex. Ord. No. 11717, May 9, 1973, 38 F.R. 12315, provided:
    By virtue of the authority vested in me as President by the 
Constitution and Statutes of the United States, particularly by section 
301 of title 3 of the United States Code, the Federal Property and 
Administrative Services Act of 1949, as amended, the Budget and 
Accounting Act, 1921, as amended, the Budget and Accounting Procedures 
Act of 1950, as amended, and Reorganization Plan No. 2 of 1970 [set out 
as a note above], it is hereby ordered as follows:
    Section 1. There are hereby transferred to the Administrator of 
General Services all functions that were being performed in the Office 
of Management and Budget on April 13, 1973 by:
    (1) The Financial Management Branch, the Procurement and Property 
Management Branch, and the Management Systems Branch of the Organization 
and Management Systems Division; and
    (2) the Management Information and Computer Systems Division with 
respect to policy control over automatic data processing (except those 
functions relating to the establishment of Government-wide automatic 
data-processing standards).
    Sec. 2. There are hereby transferred to the Secretary of Commerce 
all functions being performed on the date of this order in the Office of 
Management and Budget relating to the establishment of Government-wide 
automatic data processing standards, including the function of approving 
standards on behalf of the President pursuant to section 111(f)(2) of 
the Federal Property and Administrative Services Act of 1949, as amended 
[former 40 U.S.C. 759(f)(2)].
    Sec. 3. (a) The functions transferred to the Administrator of the 
General Services Administration and to the Secretary of Commerce by this 
order do not include those performed in connection with the general 
oversight responsibilities of the Director of the Office of Management 
and Budget, as the head of that agency and as Assistant to the President 
for executive management, and the functions transferred by this order 
shall be performed subject to such general oversight to the same extent 
that other functions of the General Services Administration and the 
Department of Commerce, respectively, are so performed.
    (b) The functions vested in the President by the first sentence of 
section 111(g) of the Federal Property and Administrative Services Act 
of 1949, as amended [former 40 U.S.C. 759(g)], with respect to fiscal 
control of automatic data processing activities shall continue to be 
performed by the Director of the Office of Management and Budget. No 
function vested by statute in the Director shall be deemed to be 
affected by the provisions of this order.
    Sec. 4. So much of the personnel, property, records and unexpended 
balances of appropriations, allocations, and other funds employed, used, 
held, available, or to be made available, in connection with the 
functions transferred by this order as the Director of the Office of 
Management and Budget shall determine, shall be transferred to the 
Department of Commerce and the General Services Administration, 
respectively, at such times as the Director shall specify.
    Sec. 5. Executive Order No. 11541 of July 1, 1970, is hereby 
superseded to the extent that it is inconsistent with this order.
    Sec. 6. This order shall be effective as of April 15, 1973.
                                                          Richard Nixon.

                    Supersedure of Ex. Ord. No. 11717

    Ex. Ord. No. 11717 superseded to the extent that it is inconsistent 
with Ex. Ord. No. 11893, Dec. 31, 1975, 41 F.R. 1040, see section 4 of 
Ex. Ord. No. 11893, set out as a note under section 4252 of Title 42, 
The Public Health and Welfare.

                        Executive Order No. 12013

    Ex. Ord. No. 12013, Oct. 7, 1977, 42 F.R. 54931, which related to 
transfer of certain statistical functions and the establishment of the 
Statistical Policy Coordination Committee, was revoked by section 4(a) 
of Ex. Ord. No. 12318, Aug. 21, 1981, 46 F.R. 42833, set out below.

Ex. Ord. No. 12027. Transfer of Certain Executive Development and Other 
                           Personnel Functions

    Ex. Ord. No. 12027, Dec. 5, 1977, 42 F.R. 61851, as amended by Ex. 
Ord. No. 12107, Dec. 28, 1978, 44 F.R. 1055, provided:
    By virtue of the authority vested in me by the Constitution and 
statutes of the United States of America, including Reorganization Plan 
No. 2 of 1970 (5 U.S.C. App.), Section 202 of the Budget and Accounting 
Procedures Act of 1950 (31 U.S.C. 581c) [31 U.S.C. 1531], and Section 
301 of Title 3 of the United States Code, and as President of the United 
States of America, in order to transfer certain functions from the 
Director of the Office of Management and Budget to the Office of 
Personnel Management, it is hereby ordered as follows:
    Section 1. The following functions which heretofore have been 
performed by the Director of the Office of Management and Budget, either 
alone or in conjunction with the Office of Personnel Management, are 
hereby reassigned and delegated to the Office of Personnel Management:
    (a) Providing overall Executive Branch leadership, regulation, and 
guidance in executive personnel selection, development, and management 
including:
    (1) Devising and establishing programs and encouraging agencies to 
devise and establish programs to forecast the need for career executive 
talent and to select, train, develop, motivate, deploy and evaluate the 
men and women who make up the top ranks of Federal civil service;
    (2) Initiating and leading efforts to ensure that potential 
executive talent is identified, developed and well utilized throughout 
the Executive Branch and;
    (3) Ensuring that executive training and motivation meet current and 
future needs.
    (b) Studying and reporting on issues relating to position 
classification and the compensation of Federal civilian employees, 
including linkages among pay systems, and providing reports on average 
grade levels, work-years and personnel costs of Federal civilian 
employees.
    (c) Providing primary Executive Branch leadership in (1) developing 
and reviewing a program of policy guidance to departments and agencies 
for the organization of management's responsibility under the Federal 
Labor Relations program; and (2) monitoring issues and trends in labor 
management relations for referral to appropriate Executive Branch 
officials including the Federal Labor Relations Council.
    Sec. 2. Section 1 of Executive Order No. 11541, as amended [set out 
above], is further amended by adding thereto the following new 
subsection:
    ``(d) The delegation to the Director of the Office of Management and 
Budget of the following executive development and personnel functions 
(which have been transferred to the Office of Personnel Management) is 
terminated on December 4, 1977:
    ``(1) Providing overall Executive Branch leadership, regulation, and 
guidance in executive personnel selection, development and management.
    ``(2) Studying and reporting on issues relating to position 
classification and the compensation of Federal civilian employees, 
including linkages among pay systems, and providing reports on average 
grade levels, work-years and personnel costs of Federal civilian 
employees.
    ``(3) Providing primary Executive Branch leadership in (i) 
developing and reviewing a program of policy guidance to departments and 
agencies for the organization of management responsibility under the 
Federal Labor Relations program; and (ii) monitoring issues and trends 
in labor management relations for referral to appropriate Executive 
Branch officials including the Federal Labor Relations Council.''.
    Sec. 3. Executive Order No. 11491, as amended [5 U.S.C. 7101 note], 
is further amended by amending Section 25(a) to read as follows:
    ``The Office of Personnel Management, in conjunction with the 
Director of the Office of Management and Budget, shall establish and 
maintain a program for the policy guidance of agencies on labor-
management relations in the Federal service and shall periodically 
review the implementation of these policies. The Office of Personnel 
Management shall be responsible for the day-to-day policy guidance under 
that program. The Office of Personnel Management also shall continuously 
review the operation of the Federal labor-management relations program 
to assist in assuring adherence to its provisions and merit system 
requirements; implement technical advice and information programs for 
the agencies; assist in the development of programs for training agency 
personnel and management officials in labor-management relations; and, 
from time to time, report to the Council on the state of the program 
with any recommendations for its improvement.''.
    Sec. 4. Section 5(a) of Executive Order No. 11636 of December 17, 
1971 [formerly set out as a note under 22 U.S.C. 801], establishing an 
Employee-Management Relations Commission as a committee of the Board of 
the Foreign Service, is amended by deleting: ``The representative of the 
Office of Management and Budget shall be the Chairman of the 
Commission'' and substituting therefor ``The representative of the 
Office of Personnel Management shall be the Chairman of the 
Commission''.
    Sec. 5. The records, property, personnel, and unexpended balances of 
appropriations, available or to be made available, which relate to the 
functions transferred or reassigned by this Order from the Office of 
Management and Budget to the Office of Personnel Management, are hereby 
transferred to the Office of Personnel Management.
    Sec. 6. The Director of the Office of Management and Budget shall 
make such determinations, issue such orders, and take all actions 
necessary or appropriate to effectuate the transfers or reassignments 
provided by this Order, including the transfer of funds, records, 
property, and personnel.
    Sec. 7. This Order shall be effective December 4, 1977.
                                                           Jimmy Carter.

                        Executive Order No. 12074

    Ex. Ord. No. 12074, Aug. 16, 1978, 43 F.R. 36875, which related to 
urban and community impact analyses, was revoked by Ex. Ord. No. 12350, 
Mar. 9, 1982, 47 F.R. 10503.

                        Executive Order No. 12149

    Ex. Ord. No. 12149, July 20, 1979, 44 F.R. 43247, which established 
Federal Regional Councils, was revoked by section 4(b) of Ex. Ord. No. 
12314, July 22, 1981, 46 F.R. 38330.

                        Executive Order No. 12301

    Executive Order No. 12301, Mar. 26, 1981, 46 F.R. 19211, as amended 
by Ex. Ord. No. 13118, Sec. 10(5), Mar. 31, 1999, 64 F.R. 16598, which 
established the President's Council on Integrity and Efficiency in 
Federal programs, was revoked by Ex. Ord. No. 12625, Jan. 27, 1988, 53 
F.R. 2812, formerly set out below.

                        Executive Order No. 12314

    Ex. Ord. No. 12314, July 22, 1981, 46 F.R. 38329, which established 
Federal Regional Councils, was revoked by Ex. Ord. No. 12407, Feb. 22, 
1983, 48 F.R. 7717.

  Ex. Ord. No. 12318. Transfer of Certain Statistical Policy Functions

    Ex. Ord. No. 12318, Aug. 21, 1981, 46 F.R. 42833, provided:
    By virtue of the authority vested in me as President by the 
Constitution and statutes of the United States, including Reorganization 
Plan No. 2 of 1970 (5 U.S.C. App.), Section 202 of the Budget and 
Accounting Procedures Act of 1950 (31 U.S.C. 581c) [31 U.S.C. 1531], 
Section 3(a) of the Paperwork Reduction Act of 1980 (Public Law 96-511, 
94 Stat. 2825, 44 U.S.C. 3503 note), and Section 301 of Title 3 of the 
United States Code, and in order to transfer, redelegate, and reassign 
certain statistical policy functions from the Secretary of Commerce to 
the Director of the Office of Management and Budget, and to require 
redelegation of certain functions to the Administrator for the Office of 
Information and Regulatory Affairs, it is hereby ordered as follows:
    Section 1. Sec. 1(c) of Executive Order No. 11541 of July 1, 1970, 
as amended [set out as a note above], is amended by deleting the last 
phrase ``is terminated on October 9, 1977'' and substituting therefor 
``shall be implemented in accord with Section 3(a) of the Paperwork 
Reduction Act of 1980 (94 Stat. 2825; 44 U.S.C. 3503 note), to the 
extent that provision is applicable''.
    Sec. 2. Executive Order No. 10253 of July 11, 1951, as amended [31 
U.S.C. 1104 note], is further amended as follows:
    (a) ``Secretary of Commerce'' is deleted in Section 1 and ``Director 
of the Office of Management and Budget'' is substituted therefor.
    (b) ``Secretary'' is deleted wherever it appears in Sections 1, 2, 
4, 5, and 6 and ``Director'' is substituted therefor.
    (c) ``Department of Commerce'' is deleted in Section 6 and ``Office 
of Management and Budget'' is substituted therefor.
    (d) Section 7 is deleted and a new Section 7 is substituted therefor 
as follows:
    ``Sec. 7. As required by Section 3(a) of the Paperwork Reduction Act 
of 1980 (94 Stat. 2825; 44 U.S.C. 3503 note), the Director shall 
redelegate to the Administrator for the Office of Information and 
Regulatory Affairs, Office of Management and Budget, all functions, 
authority, and responsibility under Section 103 of the Budget and 
Accounting Procedures Act of 1950 (31 U.S.C. 18b) [31 U.S.C. 1104(d)] 
which have been vested in the Director by this Order.''
    (e) Section 8 is revoked.
    Sec. 3. Executive Order No. 10033, as amended [22 U.S.C. 286f note], 
is further amended as follows:
    (a) ``Secretary of Commerce, hereinafter referred to as the 
Secretary,'', is deleted in Section 1 and ``Director of the Office of 
Management and Budget, hereinafter referred to as the Director,'', is 
substituted therefor.
    (b) ``Secretary'' is deleted wherever it appears in Sections 2(a), 
2(b), 2(c), 3, 4, and 5 and ``Director'' is substituted therefor.
    (c) Section 7 is revoked.
    Sec. 4. (a) Executive Order No. 12013 is revoked.
    (b) Section 4 of Executive Order No. 11961, as amended [22 U.S.C. 
3101 note], is further amended by deleting ``the Secretary of Commerce 
shall perform the functions set forth in Sections 4(a)(3) and 5(c) of 
the Act'' [22 U.S.C. 3103(a)(3), 3104(c)], and substituting therefor 
``the Secretary of Commerce shall perform the function of making 
periodic reports to the Committees of the Congress as set forth in 
Section 4(a)(3) of the Act'' [22 U.S.C. 3103(a)(3)].
    Sec. 5. The records, property, personnel, and unexpended balances of 
appropriations, available or to be made available, which relate to the 
functions transferred or reassigned from the Secretary of Commerce to 
the Director of the Office of Management and Budget by the delegations 
made in this Order, are hereby transferred to the Director of the Office 
of Management and Budget.
    Sec. 6. The Director of the Office of Management and Budget shall 
make such determinations, issue such orders, and take all steps 
necessary or appropriate to ensure or effectuate the transfers or 
reassignments provided by this Order, including the transfer of funds, 
records, property, and personnel.
    Sec. 7. Any rules, regulations, orders, directives, circulars, or 
other actions taken pursuant to the functions transferred or reassigned 
from the Secretary of Commerce to the Director of the Office of 
Management and Budget by the delegations made in this Order, shall 
remain in effect until amended, modified, or revoked pursuant to the 
delegations made in this Order.
    Sec. 8. This Order shall be effective August 23, 1981.
                                                          Ronald Reagan.

                        Executive Order No. 12479

    Ex. Ord. No. 12479, May 24, 1984, 49 F.R. 22243, which established 
President's Council on Management Improvement, assigned functions of 
Council and responsibilities of Chairman, and provided for 
administrative support, was revoked by Ex. Ord. No. 12816, Oct. 14, 
1992, 57 F.R. 47562, formerly set below.

                        Executive Order No. 12552

    Ex. Ord. No. 12552, Feb. 25, 1986, 51 F.R. 7041, which provided for 
establishment of a comprehensive program for improvement of productivity 
throughout all Executive departments and agencies, was superseded by Ex. 
Ord. No. 12637, Apr. 27, 1988, 53 F.R. 15349, formerly set out below, 
and was revoked by Ex. Ord. No. 13048, Sec. 5, June 10, 1997, 62 F.R. 
32469, set out below.

        Ex. Ord. No. 12615. Performance of Commercial Activities

    Ex. Ord. No. 12615, Nov. 19, 1987, 52 F.R. 44853, provided:
    By the authority vested in me as President by the Constitution and 
laws of the United States of America, and in order to facilitate ongoing 
efforts to ensure that the Federal Government acquires needed goods and 
services in the most economical and efficient manner, it is hereby 
ordered as follows:
    Section 1. The head of each Executive department and agency shall, 
to the extent permitted by law:
    (a) Ensure that new Federal Government requirements for commercial 
activities are provided by private industry, except where statute or 
national security requires government performance or where private 
industry costs are unreasonable;
    (b) Identify by April 29, 1988, in cooperation with the Director of 
the Office of Management and Budget all commercial activities currently 
performed by government. The department and agency heads are encouraged 
to consult with the President's Commission on Privatization in making 
such identification;
    (c) Schedule, by June 30, 1988, all commercial activities identified 
pursuant to subsection (b) for study in accordance with the procedures 
of OMB Circular No. A-76, as revised, and the Supplement thereto, to 
determine whether they could be performed more economically by private 
industry;
    (d) Meet the study goals for Fiscal Year 1988 set forth in 
``Management of the United States Government, Fiscal Year 1988''; and 
thereafter, beginning with Fiscal Year 1989, conduct annual studies of 
not less than 3 percent of the department or agency's total civilian 
population, until all identified potential commercial activities have 
been studied;
    (e) Include in each annual budget proposal to the Office of 
Management and Budget estimates of expected yearly budget savings from 
the privatization of commercial activities projected to be accomplished 
following the completion of scheduled studies, unless an exception is 
authorized by the Director of the Office of Management and Budget. These 
estimates shall be based on analysis of savings under previous studies 
and estimated savings to be achieved from future conversions to 
contract. A department or agency proposal may reflect retention of 
expected first-year savings as negotiated with the Office of Management 
and Budget for use as incentive compensation to reward employees covered 
by the studies for their productivity efforts, or for use in other 
productivity enhancement projects;
    (f) Develop and maintain an effective job placement program for 
government employees affected by privatization initiatives and cooperate 
fully in interagency placement efforts;
    (g) Designate a senior-level official to coordinate the OMB Circular 
No. A-76 studies and other privatization efforts; and
    (h) Report to the President on progress each quarter, through the 
Director of the Office of Management and Budget.
    Sec. 2. The Director of the Office of Management and Budget shall, 
to the extent permitted by law:
    (a) Issue guidance to departments and agencies to implement this 
Order. Such guidance shall be designed to ensure an equitable cost 
comparison of government-operated commercial activities with private 
industry performance of the same activities, and to improve the 
efficiency in the conduct of studies;
    (b) Publish for public review (i) not later than 30 days after its 
completion, the inventory of commercial activities identified pursuant 
to section 1(b) and the activities scheduled for study by departments 
and agencies in Fiscal Year 1988 pursuant to section 1(c); and (ii) not 
later than 30 days before the start of each successive fiscal year, the 
list of activities to be reviewed during that year pursuant to section 
1(d); and
    (c) Establish a tracking system to monitor, on a quarterly basis, 
progress by departments and agencies in carrying out this Order.
    Sec. 3. The Director of the Office of Personnel Management, in 
consultation with the heads of other Executive departments and agencies, 
shall review and revise, as necessary and to the extent permitted by 
law, personnel policies and regulations in order (a) to ensure that 
government managers have the flexibility to organize in the most 
effective and efficient manner to achieve levels of productivity 
comparable with those of private industry, and (b) to reduce any adverse 
effects of productivity improvements on employees.
    Sec. 4. For purposes of this Order, the terms ``commercial 
activity,'' ``conversion to contract,'' and ``cost comparison'' shall 
have the meanings set forth in OMB Circular No. A-76, as revised.
    Sec. 5. Nothing in this Order shall be construed to confer a private 
right of action on any person, or to add in any way to applicable 
procurement procedures required by existing law.
                                                          Ronald Reagan.

                        Executive Order No. 12625

    Ex. Ord. No. 12625, Jan. 27, 1988, 53 F.R. 2812, which established 
President's Council on Integrity and Efficiency as an interagency 
committee, was revoked by Ex. Ord. No. 12805, May 11, 1992, 57 F.R. 
20627, set out below.

                        Executive Order No. 12637

    Ex. Ord. No. 12637, Apr. 27, 1988, 53 F.R. 15349, which established 
a productivity improvement program for the Federal Government, was 
revoked by Ex. Ord. No. 13048, Sec. 5, June 10, 1997, 62 F.R. 32469, set 
out below.

            Ex. Ord. No. 12803. Infrastructure Privatization

    Ex. Ord. No. 12803, Apr. 30, 1992, 57 F.R. 19063, provided:
    By the authority vested in me as President by the Constitution and 
the laws of the United States of America, and in order to ensure that 
the United States achieves the most beneficial economic use of its 
resources, it is hereby ordered as follows:
    Section 1. Definitions. For purposes of this order:
    (a) ``Privatization'' means the disposition or transfer of an 
infrastructure asset, such as by sale or by long-term lease, from a 
State or local government to a private party.
    (b) ``Infrastructure asset'' means any asset financed in whole or in 
part by the Federal Government and needed for the functioning of the 
economy. Examples of such assets include, but are not limited to: roads, 
tunnels, bridges, electricity supply facilities, mass transit, rail 
transportation, airports, ports, waterways, water supply facilities, 
recycling and wastewater treatment facilities, solid waste disposal 
facilities, housing, schools, prisons, and hospitals.
    (c) ``Originally authorized purposes'' means the general objectives 
of the original grant program; however, the term is not intended to 
include every condition required for a grantee to have obtained the 
original grant.
    (d) ``Transfer price'' means: (i) the amount paid or to be paid by a 
private party for an infrastructure asset, if the asset is transferred 
as a result of competitive bidding; or (ii) the appraised value of an 
infrastructure asset, as determined by the head of the executive 
department or agency and the Director of the Office of Management and 
Budget, if the asset is not transferred as a result of competitive 
bidding.
    (e) ``State and local governments'' means the government of any 
State of the United States, the District of Columbia, any commonwealth, 
territory, or possession of the United States, and any county, 
municipality, city, town, township, local public authority, school 
district, special district, intrastate district, regional or interstate 
governmental entity, council of governments, and any agency or 
instrumentality of a local government, and any federally recognized 
Indian Tribe.
    Sec. 2. Fundamental Principles. Executive departments and agencies 
shall be guided by the following objectives and principles: (a) Adequate 
and well-maintained infrastructure is critical to economic growth. 
Consistent with the principles of federalism enumerated in Executive 
Order No. 12612 [formerly set out under section 601 of Title 5, 
Government Organization and Employees], and in order to allow the 
private sector to provide for infrastructure modernization and 
expansion, State and local governments should have greater freedom to 
privatize infrastructure assets.
    (b) Private enterprise and competitively driven improvements are the 
foundation of our Nation's economy and economic growth. Federal 
financing of infrastructure assets should not act as a barrier to the 
achievement of economic efficiencies through additional private market 
financing or competitive practices, or both.
    (c) State and local governments are in the best position to assess 
and respond to local needs. State and local governments should, subject 
to assuring continued compliance with Federal requirements that public 
use be on reasonable and nondiscriminatory terms, have maximum possible 
freedom to make decisions concerning the maintenance and disposition of 
their federally financed infrastructure assets.
    (d) User fees are generally more efficient than general taxes as a 
means to support infrastructure assets. Privatization transactions 
should be structured so as not to result in unreasonable increases in 
charges to users.
    Sec. 3. Privatization Initiative. To the extent permitted by law, 
the head of each executive department and agency shall undertake the 
following actions:
    (a) Review those procedures affecting the management and disposition 
of federally financed infrastructure assets owned by State and local 
governments and modify those procedures to encourage appropriate 
privatization of such assets consistent with this order;
    (b) Assist State and local governments in their efforts to advance 
the objectives of this order; and
    (c) Approve State and local governments' requests to privatize 
infrastructure assets, consistent with the criteria in section 4 of this 
order and, where necessary, grant exceptions to the disposition 
requirements of the ``Uniform Administrative Requirements for Grants and 
Cooperative Agreements to State and Local Governments'' common rule, or 
other relevant rules or regulations, for infrastructure assets; provided 
that the transfer price shall be distributed, as paid, in the following 
manner: (i) State and local governments shall first recoup in full the 
unadjusted dollar amount of their portion of total project costs 
(including any transaction and fix-up costs they incur) associated with 
the infrastructure asset involved; (ii) if proceeds remain, then the 
Federal Government shall recoup in full the amount of Federal grant 
awards associated with the infrastructure asset, less the applicable 
share of accumulated depreciation on such asset (calculated using the 
Internal Revenue Service accelerated depreciation schedule for the 
categories of assets in question); and (iii) finally, the State and 
local governments shall keep any remaining proceeds.
    Sec. 4. Criteria. To the extent permitted by law, the head of an 
executive department or agency shall approve a request in accordance 
with section 3(c) of this order only if the grantee: (a) Agrees to use 
the proceeds described in section 3(c)(iii) of this order only for 
investment in additional infrastructure assets (after public notice of 
the proposed investment), or for debt or tax reduction; and
    (b) Demonstrates that a market mechanism, legally enforceable 
agreement, or regulatory mechanism will ensure that: (i) the 
infrastructure asset or assets will continue to be used for their 
originally authorized purposes, as long as needed for those purposes, 
even if the purchaser becomes insolvent or is otherwise hindered from 
fulfilling the originally authorized purposes; and (ii) user charges 
will be consistent with any current Federal conditions that protect 
users and the public by limiting the charges.
    Sec. 5. Government-wide Coordination and Review. In implementing 
Executive Order Nos. 12291 and 12498 [formerly set out under section 601 
of Title 5, Government Organization and Employees] and OMB Circular No. 
A-19, the Office of Management and Budget, to the extent permitted by 
law and consistent with the provisions of those authorities, shall take 
action to ensure that the policies of the executive department and 
agencies are consistent with the principles, criteria, and requirements 
of this order. The Office of Management and Budget shall review the 
results of implementing this order and report thereon to the President 1 
year after the date of this order.
    Sec. 6. Preservation of Existing Authority. Nothing in this order is 
in any way intended to limit any existing authority of the heads of 
executive departments and agencies to approve privatization proposals 
that are otherwise consistent with law.
    Sec. 7. Judicial Review. This order is intended only to improve the 
internal management of the executive branch, and is not intended to 
create any right or benefit, substantive or procedural, enforceable by a 
party against the United States, its agencies or instrumentalities, its 
officers or employees, or any other person.
                                                            George Bush.

    Ex. Ord. No. 12805. Integrity and Efficiency in Federal Programs

    Ex. Ord. No. 12805, May 11, 1992, 57 F.R. 20627, provided:
    By the authority vested in me as President by the Constitution and 
the laws of the United States of America, and in order to coordinate and 
enhance governmental efforts to promote integrity and efficiency and to 
detect and prevent fraud, waste, and abuse in Federal programs, the 
establishment of two Councils of Federal Inspectors General and 
appropriate Federal officials is hereby ordered as follows:
    Section 1. Establishment of the President's Council on Integrity and 
Efficiency.
    (a) There is established as an interagency committee the President's 
Council on Integrity and Efficiency (PCIE).
    (b) The PCIE shall be composed of the following members:
        (1) The Deputy Director for Management of the Office of 
    Management and Budget, who shall be Chairperson of the Council;
        (2) All civilian Presidentially appointed Inspectors General 
    whose offices were established in the Inspector General Act of 1978 
    [5 App. U.S.C.] and subsequent amendments;
        (3) The Vice Chairperson of the Executive Council on Integrity 
    and Efficiency;
        (4) The Controller of the Office of Federal Financial 
    Management;
        (5) The Associate Deputy Director for Investigations of the 
    Federal Bureau of Investigation;
        (6) The Director of the Office of Government Ethics;
        (7) The Special Counsel of the Office of Special Counsel; and
        (8) The Deputy Director of the Office of Personnel Management.
    (c) The Chairperson may, from time to time, invite other officials 
to participate in meetings of the PCIE.
    (d) The Chairperson shall, to the extent possible, convene meetings 
of the PCIE monthly.
    Sec. 2. Establishment of the Executive Council on Integrity and 
Efficiency.
    (a) There is established as an inter-entity committee the Executive 
Council on Integrity and Efficiency (ECIE).
    (b) The ECIE shall be composed of the following members:
        (1) The Deputy Director for Management of the Office of 
    Management and Budget, who shall be Chairperson of the Council;
        (2) All civilian statutory Inspectors General not represented on 
    the PCIE;
        (3) The Vice Chairperson of the PCIE;
        (4) The Controller of the Office of Federal Financial 
    Management;
        (5) The Associate Deputy Director for Investigations of the 
    Federal Bureau of Investigation, or his or her designee;
        (6) The Director of the Office of Government Ethics, or his or 
    her designee;
        (7) The Special Counsel of the Office of Special Counsel, or his 
    or her designee; and
        (8) The Deputy Director of the Office of Personnel Management, 
    or his or her designee.
    (c) If any individual simultaneously serves as a Presidentially 
appointed Inspector General and as Inspector General of an entity 
represented on the ECIE, that individual may send a designee to ECIE 
meetings.
    (d) The Chairperson may, from time to time, invite other officials 
to participate in meetings of the ECIE.
    (e) The Chairperson or, in his or her absence, the Controller of the 
Office of Federal Financial Management shall, to the extent possible, 
convene meetings of the ECIE monthly.
    Sec. 3. Functions of the PCIE and the ECIE.
    (a) The Councils shall continually identify, review, and discuss 
areas of weakness and vulnerability in Federal programs and operations 
to fraud, waste, and abuse, and shall develop plans for coordinated, 
Governmentwide activities that address these problems and promote 
economy and efficiency in Federal programs and operations. These 
activities will include interagency and inter-entity audit and 
investigation programs and projects to deal efficiently and effectively 
with those problems concerning fraud and waste that exceed the 
capability or jurisdiction of an individual agency or entity. The 
Councils shall recognize the preeminent role of the Department of 
Justice in law enforcement and litigation.
    (b) The Councils shall develop policies that will aid in the 
establishment of a corps of well-trained and highly skilled Office of 
Inspector General staff members.
    (c) The individual members of the Councils should, to the extent 
permitted under law, adhere to professional standards developed by the 
Councils and participate in the plans, programs, and projects of the 
Councils.
    (d) The creation and operation of the Councils shall neither 
interfere with existing authority and responsibilities in the relevant 
agencies and entities nor augment or diminish the statutory authority or 
responsibilities of individual members of either Council.
    Sec. 4. Responsibilities of the Chairperson of the PCIE and the 
ECIE.
    (a) The Chairperson may appoint a Vice Chairperson from the PCIE and 
the ECIE to assist in carrying out the functions of each Council.
    (b) The Chairperson shall, in consultation with the members of each 
Council, establish the agenda for PCIE and ECIE activities.
    (c) The Chairperson shall, on behalf of the Councils, report to the 
President on the activities of the Councils. The Chairperson shall, as 
appropriate, advise the Councils with respect to the President's 
consideration of the Councils' activities.
    (d) The Chairperson shall provide agency and entity heads with 
summary reports of the activities of the Councils.
    (e) The Chairperson shall establish, in consultation with members of 
the Councils, such committees of the PCIE and the ECIE as deemed 
necessary and appropriate for the efficient conduct of PCIE and ECIE 
functions. The Chairperson may invite members of the ECIE to serve on 
each PCIE Committee. Similarly, the Chairperson may invite members of 
the PCIE to serve on each ECIE Committee.
    (f) The Chairperson shall convene joint meetings of the PCIE and the 
ECIE at least annually.
    Sec. 5. Administrative Provisions.
    (a) The Director of the Office of Management and Budget shall 
provide the PCIE and the ECIE with such administrative support as may be 
necessary for the performance of the functions of the Councils.
    (b) The heads of agencies and entities represented on the PCIE and 
the ECIE shall provide their representatives with such administrative 
support as may be necessary, in accordance with law, to enable the 
representatives to carry out their responsibilities.
    Sec. 6. Revocation. Executive Order No. 12625 of January 27, 1988, 
entitled ``Integrity and Efficiency in Federal Programs,'' is revoked.
                                                            George Bush.

                        Executive Order No. 12816

    Ex. Ord. No. 12816, Oct. 14, 1992, 57 F.R. 47562, which established 
the President's Council on Management Improvement and provided for its 
membership, functions, etc., was revoked by Ex. Ord. No. 13048, Sec. 5, 
June 10, 1997, 62 F.R. 32469, set out below.

Ex. Ord. No. 12837. Deficit Control and Productivity Improvement in the 
                Administration of the Federal Government

    Ex. Ord. No. 12837, Feb. 10, 1993, 58 F.R. 8205, provided:
    By the authority vested in me as President by the Constitution and 
the laws of the United States of America, including the Budget and 
Accounting Act of 1921, as amended (31 U.S.C. 1101 et seq.), and section 
301 of title 3, United States Code, and in order to assist in the 
control of the Federal deficit and improve the administrative 
productivity of the Federal Government, it is hereby ordered as follows:
    Section 1. All executive departments and agencies shall include a 
separate category for ``administrative expenses'' when submitting their 
appropriation requests to the Office of Management and Budget (OMB) for 
fiscal years 1994 through 1997. The Director of OMB (Director), in 
consultation with the agencies, shall establish and revise as necessary 
a definition of administrative expenses for the agencies. All questions 
regarding the definition of administrative expenses shall be resolved by 
the Director.
    Sec. 2. The purpose of this order is to achieve real reductions in 
the administrative costs of Federal agencies. In order to accomplish 
that goal, agencies shall submit budgets that reflect the following 
reductions from the fiscal year 1993 baseline:
    (a) For fiscal year 1994, all agencies shall submit budget requests 
that reflect no less than a 3 percent reduction in administrative 
expenses from the amount made available for fiscal year 1993 adjusted 
for inflation;
    (b) For fiscal year 1995, all agencies shall submit budget requests 
that reflect no less than a 6 percent reduction in administrative 
expenses from the amounts made available for fiscal year 1993 adjusted 
for inflation;
    (c) For fiscal year 1996, all agencies shall submit budget requests 
that reflect no less than a 9 percent reduction in administrative 
expenses from the amounts made available for fiscal year 1993 adjusted 
for inflation;
    (d) For fiscal year 1997, all agencies shall submit budget requests 
that reflect no less than a 14 percent reduction in administrative 
expenses from the amounts made available for fiscal year 1993 adjusted 
for inflation.
    Sec. 3. The Director shall review agency requests for administrative 
expenses. The Director shall ensure that all agency requests for such 
expenses are reduced in accordance with section 2. To the extent that 
any agency fails to comply with the mandates of section 2, the Director 
is authorized to reduce the request for administrative expenses in that 
agency's budget to achieve the appropriate reduction.
    Sec. 4. All independent regulatory commissions and agencies are 
requested to comply with the provisions of this order.
                                                     William J. Clinton.

         Ex. Ord. No. 12862. Setting Customer Service Standards

    Ex. Ord. No. 12862, Sept. 11, 1993, 58 F.R. 48257, provided:
    Putting people first means ensuring that the Federal Government 
provides the highest quality service possible to the American people. 
Public officials must embark upon a revolution within the Federal 
Government to change the way it does business. This will require 
continual reform of the executive branch's management practices and 
operations to provide service to the public that matches or exceeds the 
best service available in the private sector.
    NOW, THEREFORE, to establish and implement customer service 
standards to guide the operations of the executive branch, and by the 
authority vested in me as President by the Constitution and the laws of 
the United States, it is hereby ordered:
    Section 1. Customer Service Standards. In order to carry out the 
principles of the National Performance Review, the Federal Government 
must be customer-driven. The standard of quality for services provided 
to the public shall be: Customer service equal to the best in business. 
For the purposes of this order, ``customer'' shall mean an individual or 
entity who is directly served by a department or agency. ``Best in 
business'' shall mean the highest quality of service delivered to 
customers by private organizations providing a comparable or analogous 
service.
    All executive departments and agencies (hereinafter referred to 
collectively as ``agency'' or ``agencies'') that provide significant 
services directly to the public shall provide those services in a manner 
that seeks to meet the customer service standard established herein and 
shall take the following actions:
    (a) identify the customers who are, or should be, served by the 
agency;
    (b) survey customers to determine the kind and quality of services 
they want and their level of satisfaction with existing services;
    (c) post service standards and measure results against them;
    (d) benchmark customer service performance against the best in 
business;
    (e) survey front-line employees on barriers to, and ideas for, 
matching the best in business;
    (f) provide customers with choices in both the sources of service 
and the means of delivery;
    (g) make information, services, and complaint systems easily 
accessible; and
    (h) provide means to address customer complaints.
    Sec. 2. Report on Customer Service Surveys. By March 8, 1994, each 
agency subject to this order shall report on its customer surveys to the 
President. As information about customer satisfaction becomes available, 
each agency shall use that information in judging the performance of 
agency management and in making resource allocations.
    Sec. 3. Customer Service Plans. By September 8, 1994, each agency 
subject to this order shall publish a customer service plan that can be 
readily understood by its customers. The plan shall include customer 
service standards and describe future plans for customer surveys. It 
also shall identify the private and public sector standards that the 
agency used to benchmark its performance against the best in business. 
In connection with the plan, each agency is encouraged to provide 
training resources for programs needed by employees who directly serve 
customers and by managers making use of customer survey information to 
promote the principles and objectives contained herein.
    Sec. 4. Independent Agencies. Independent agencies are requested to 
adhere to this order.
    Sec. 5. Judicial Review. This order is for the internal management 
of the executive branch and does not create any right or benefit, 
substantive or procedural, enforceable by a party against the United 
States, its agencies or instrumentalities, its officers or employees, or 
any other person.
                                                     William J. Clinton.

           Implementing Management Reform in Executive Branch

    Memorandum of President of the United States, Oct. 1, 1993, 58 F.R. 
52393, provided:
    Memorandum for the Heads of Executive Departments and Agencies
    The National Performance Review has examined how well the government 
serves its citizens, where it can improve, and where it is necessary to 
make fundamental changes to make government work better. It has 
presented its findings and recommendations--including the adoption of 
new management principles and structural reforms--to improve government 
throughout the Executive branch.
    In order to establish and implement more effective and efficient 
leadership and management principles throughout the Executive branch as 
identified in the National Performance Review, I hereby direct the 
following:
    1. Establish Chief Operating Officers.
    Each agency head shall designate a Chief Operating Officer, who 
shall be the Deputy or another official with agency-wide authority. The 
Chief Operating Officer shall report directly to the agency head and 
shall be responsible for:
    (a) implementing the President's and agency head's goals and the 
agency's mission;
    (b) providing overall organization management to improve agency 
performance;
    (c) assisting the agency head in promoting ongoing quality 
improvement, developing strategic plans, and measuring results;
    (d) directing ongoing reengineering of the agency's administrative 
processes;
    (e) overseeing agency-specific application of performance measures, 
procurement reforms, personnel reductions, financial management 
improvements, telecommunications and information technology policies, 
and other government-wide systems reforms adopted as a result of the 
recommendations of the National Performance Review; and
    (f) reforming the agency's management practices by incorporating the 
principles of the National Performance Review into day-to-day 
management.
    2. Implement Additional Agency Reforms.
    Each agency head shall identify and implement additional changes 
within the agency that will promote the principles and standards of the 
National Performance Review and the strategic and quality management 
approaches described by the Federal Quality Institute's ``Presidential 
Award for Quality'' or its successor award(s).
    3. Establishment of President's Management Council.
    In order to advise and assist the President and the Vice President 
in ensuring that the reforms adopted as a result of the National 
Performance Review are implemented throughout the Executive branch, I 
hereby establish the President's Management Council (``The Council''). 
The Council shall comprise the:
    (a) The Deputy Director for Management, Office of Management and 
Budget;
    (b) The Chief Operating Officers from the following agencies:
        (1) Department of State;
        (2) Department of the Treasury;
        (3) Department of Defense;
        (4) Department of Justice;
        (5) Department of the Interior;
        (6) Department of Agriculture;
        (7) Department of Commerce;
        (8) Department of Labor;
        (9) Department of Health and Human Services;
        (10) Department of Housing and Urban Development;
        (11) Department of Transportation;
        (12) Department of Energy;
        (13) Department of Education;
        (14) Department of Veterans Affairs;
        (15) Environmental Protection Agency;
    (c) The following central management agency representatives:
        (1) Director of the Office of Personnel Management;
        (2) Administrator of General Services;
    (d) Chief Operating Officers of three other Executive branch 
agencies designated by the Chairperson, in his or her discretion;
    (e) Secretary of the Cabinet; and
    (f) Such other officials of Executive departments and agencies as I 
may, from time to time, designate.
    The Deputy Director for Management of the Office of Management and 
Budget shall serve as Chairperson of the Council. The Chairperson of the 
Council shall appoint a Vice-Chairperson from the Council's membership 
to assist the Chairperson in conducting the affairs of the Council.
    I also establish an Executive Committee of the Council. Members of 
the Executive Committee shall be: the Chairperson; the Vice Chairperson; 
the two central management agency representatives; two Chief Operating 
Officers serving on the Council, whom I shall designate, and any 
additional Council members whom I may, from time to time, designate.
    The Chairperson shall convene meetings of the Council, which shall 
be held at least once a month.
    The functions of the Council shall include, among others:
    (a) improving overall Executive branch management, including reform 
of government-wide management systems, such as management controls, 
financial management, personnel, budgeting, and procurement;
    (b) coordinating management-related efforts to improve government 
throughout the Executive branch and, as necessary, resolving specific 
interagency management issues;
    (c) ensuring the adoption of new management practices in agencies 
throughout the Executive branch; and
    (d) identifying examples of, and providing mechanisms for, 
interagency exchange of information about best management practices.
    The Council shall be provided with appropriate staff support and 
other resources as may be necessary to carry out its duties. In 
addition, the Federal Quality Institute shall serve as a resource to the 
Council.
    The Council shall seek advice and information as appropriate from 
nonmember Federal agencies, particularly smaller agencies. The Council 
shall also consider the management reform experience of corporations, 
nonprofit organizations, State and local governments, government 
employees, public sector unions, and customers of government services.
    Agencies shall cooperate with the Council and provide such 
assistance, information, and advice to the Council as the Council may 
request, to the extent permitted by law.
    4. Independent Agencies.
    Independent agencies are requested to adhere to this directive.
    5. Judicial Review.
    This directive is for the internal management of the Executive 
branch and does not create any right or benefit, substantive or 
procedural, enforceable by a party against the United States, its 
agencies or instrumentalities, its officers or employees, or any other 
person.
    6. Publication.
    The Director of the Office of Management and Budget is authorized 
and directed to publish this memorandum in the Federal Register.
                                                     William J. Clinton.

  Ex. Ord. No. 12893. Principles for Federal Infrastructure Investments

    Ex. Ord. No. 12893, Jan. 26, 1994, 59 F.R. 4233, provided:
    A well-functioning infrastructure is vital to sustained economic 
growth, to the quality of life in our communities, and to the protection 
of our environment and natural resources. To develop and maintain its 
infrastructure facilities, our Nation relies heavily on investments by 
the Federal Government.
    Our Nation will achieve the greatest benefits from its 
infrastructure facilities if it invests wisely and continually improves 
the quality and performance of its infrastructure programs. Therefore, 
by the authority vested in me as President by the Constitution and the 
laws of the United States of America, it is hereby ordered as follows:
    Section 1. Scope. The principles and plans referred to in this order 
shall apply to Federal spending for infrastructure programs. For the 
purposes of this order, Federal spending for infrastructure programs 
shall include direct spending and grants for transportation, water 
resources, energy, and environmental protection.
    Sec. 2. Principles of Federal Infrastructure Investment.
    Each executive department and agency with infrastructure 
responsibilities (hereinafter referred to collectively as ``agencies'') 
shall develop and implement plans for infrastructure investment and 
management consistent with the following principles:
    (a) Systematic Analysis of Expected Benefits and Costs. 
Infrastructure investments shall be based on systematic analysis of 
expected benefits and costs, including both quantitative and qualitative 
measures, in accordance with the following:
        (1) Benefits and costs should be quantified and monetized to the 
    maximum extent practicable. All types of benefits and costs, both 
    market and nonmarket, should be considered. To the extent that 
    environmental and other nonmarket benefits and costs can be 
    quantified, they shall be given the same weight as quantifiable 
    market benefits and costs.
        (2) Benefits and costs should be measured and appropriately 
    discounted over the full life cycle of each project. Such analysis 
    will enable informed tradeoffs among capital outlays, operating and 
    maintenance costs, and nonmonetary costs borne by the public.
        (3) When the amount and timing of important benefits and costs 
    are uncertain, analyses shall recognize the uncertainty and address 
    it through appropriate quantitative and qualitative assessments.
        (4) Analyses shall compare a comprehensive set of options that 
    include, among other things, managing demand, repairing facilities, 
    and expanding facilities.
        (5) Analyses should consider not only quantifiable measures of 
    benefits and costs, but also qualitative measures reflecting values 
    that are not readily quantified.
    (b) Efficient Management. Infrastructure shall be managed 
efficiently in accordance with the following:
        (1) The efficient use of infrastructure depends not only on 
    physical design features, but also on operational practices. To 
    improve these practices, agencies should conduct periodic reviews of 
    the operation and maintenance of existing facilities.
        (2) Agencies should use these reviews to consider a variety of 
    management practices that can improve the return from infrastructure 
    investments. Examples include contracting practices that reward 
    quality and innovation, and design standards that incorporate new 
    technologies and construction techniques.
        (3) Agencies also should use these reviews to identify the 
    demand for different levels of infrastructure services. Since 
    efficient levels of service can often best be achieved by properly 
    pricing infrastructure, the Federal Government--through its direct 
    investments, grants, and regulations--should promote consideration 
    of market-based mechanisms for managing infrastructure.
    (c) Private Sector Participation. Agencies shall seek private sector 
participation in infrastructure investment and management. Innovative 
public-private initiatives can bring about greater private sector 
participation in the ownership, financing, construction, and operation 
of the infrastructure programs referred to in section 1 of this order. 
Consistent with the public interest, agencies should work with State and 
local entities to minimize legal and regulatory barriers to private 
sector participation in the provision of infrastructure facilities and 
services.
    (d) Encouragement of More Effective State and Local Programs. To 
promote the efficient use of Federal infrastructure funds, agencies 
should encourage the State and local recipients of Federal grants to 
implement planning and information management systems that support the 
principles set forth in section 2(a) through (c) of this order. In turn, 
the Federal Government should use the information from the State and 
local recipients' management systems to conduct the system-level reviews 
of the Federal Government's infrastructure programs that are required by 
this order.
    Sec. 3. Submission of Plans. Agencies shall submit initial plans to 
implement these principles to the Director of the Office of Management 
and Budget (``OMB'') by March 15, 1994. Agency plans shall list the 
actions that will be taken to provide the data and analysis necessary 
for supporting infrastructure-related proposals in future budget 
submissions. Agency implementation plans should be consistent with OMB 
Circular A-94 that outlines the analytical methods required under the 
principles set forth in section 2 of this order.
    Sec. 4. Application to Budget Submissions. Beginning with the fiscal 
year 1996 budget submission to OMB, each agency should use these 
principles to justify major infrastructure investment and grant 
programs. Major programs are defined as those programs with annual 
budgetary resources in excess of $50 million.
    Sec. 5. Application to Legislative Proposals. Beginning March 15, 
1994, agencies shall employ the principles set forth in section 2 of 
this order and, at the request of OMB, shall provide supporting analyses 
when requesting OMB clearance for legislative proposals that would 
authorize or reauthorize infrastructure programs.
    Sec. 6. Guidance. The Office of Management and Budget shall provide 
guidance to the agencies on the implementation of this order.
    Sec. 7. Judicial Review. This order is intended only to improve the 
internal management of the executive branch and does not create any 
right or benefit, substantive or procedural, enforceable by a party 
against the United States, its agencies or instrumentalities, its 
officers or employees, or any other person.
                                                     William J. Clinton.

Ex. Ord. No. 13048. Improving Administrative Management in the Executive 
                                 Branch

    Ex. Ord. No. 13048, June 10, 1997, 62 F.R. 32467, provided:
    Improvement of Government operations is a continuing process that 
benefits from interagency activities. One group dedicated to such 
activities is the President's Council on Management Improvement (PCMI), 
established by Executive Order 12479 in 1984, reestablished by Executive 
Order 12816 in 1992. In the intervening years, some activities of the 
PCMI have been assumed by the President's Management Council, the Chief 
Financial Officers Council, and the Chief Information Officers Council. 
These organizations are also focussed on improving agencies' use of 
quality management principles. Other functions have been assigned to 
individual agencies. Nonetheless, remaining administrative management 
matters deserve attention across agency lines.
    By the authority vested in me as President by the Constitution and 
the laws of the United States of America and in order to improve agency 
administrative and management practices throughout the executive branch, 
I hereby direct the following:
    Section 1. Interagency Council on Administrative Management.
    (a) Purpose and Membership. An Interagency Council on Administrative 
Management (``Council'') is established as an interagency coordination 
mechanism. The Council shall be composed of the Deputy Director for 
Management of the Office of Management and Budget, who shall serve as 
Chair, and one senior administrative management official from each of 
the following agencies:
    1. Department of State;
    2. Department of the Treasury;
    3. Department of Defense;
    4. Department of Justice;
    5. Department of the Interior;
    6. Department of Agriculture;
    7. Department of Commerce;
    8. Department of Labor;
    9. Department of Health and Human Services;
    10. Department of Housing and Urban Development;
    11. Department of Transportation;
    12. Department of Energy;
    13. Department of Education;
    14. Department of Veterans Affairs;
    15. Environmental Protection Agency;
    16. Federal Emergency Management Agency;
    17. Central Intelligence Agency;
    18. Small Business Administration;
    19. Department of the Army;
    20. Department of the Navy;
    21. Department of the Air Force;
    22. National Aeronautics and Space Administration;
    23. Agency for International Development;
    24. General Services Administration;
    25. National Science Foundation; and
    26. Office of Personnel Management.
    Department and agency heads shall advise the Chair of their 
selections for membership on the Council. Council membership shall also 
include representatives of the Chief Financial Officers Council, the 
Chief Information Officers Council, the Federal Procurement Council, the 
Interagency Advisory Group of Federal Personnel Directors, and the Small 
Agency Council, as well as at-large members appointed by the Chair, as 
he deems appropriate. The Chair shall invite representatives of the 
Social Security Administration to participate in the Council's work, as 
appropriate. The Council shall select a Vice Chair from among the 
Council's membership.
    (b) The Council shall plan, promote, and recommend improvements in 
Government administration and operations and provide advice to the Chair 
on matters pertaining to the administrative management of the Federal 
Government. The Council shall:
        (1) explore opportunities for more effective use of Government 
    resources;
        (2) support activities and initiatives of the President's 
    Management Council, the Chief Financial Officers Council, the Chief 
    Information Officers Council, the Federal Procurement Council, and 
    the Interagency Advisory Group of Federal Personnel Directors 
    designed to develop, review, revise, and implement Governmentwide 
    administrative management policies; and
        (3) identify successful administrative management practices, 
    including quality management practices, and assist in their 
    Governmentwide dissemination and implementation.
    Sec. 2. Responsibilities of the Chair. The Chair or, if the Chair 
chooses, the Vice Chair shall:
        (1) convene meetings of the Council;
        (2) preside at formal council meetings;
        (3) establish committees or working groups of the Council, as 
    necessary for efficient conduct of Council functions; and
        (4) appoint, to the extent permitted by law and consistent with 
    personnel practices, other full-time officers or employees of the 
    Federal Government to the Council as at-large members for specific 
    terms, not exceeding 2 years, to provide expertise to the Council.
    Sec. 3. Responsibilities of Agency Heads. To the extent permitted by 
law, heads of departments or agencies represented on the Council shall 
provide their representatives with administrative support needed to 
support Council activities.
    Sec. 4. Judicial Review. This order is for the internal management 
of the executive branch and does not create any right or benefit, 
substantive or procedural, enforceable by a party against the United 
States, its agencies or instrumentalities, its officers or employees, or 
any other person.
    Sec. 5. Revocation. Executive Order 12816 (creating the President's 
Council on Management Improvement), Executive Order 12552 (establishing 
the executive branch productivity improvement program) and Executive 
Order 12637 (revising the executive branch productivity improvement 
program) are revoked.
                                                     William J. Clinton.
