The Office of Management and Budget (OMB) has unveiled the latest quarterly updates to the President’s Management Agenda (PMA), focusing on “Managing the Business of Government.” This update introduces new goal statements for Federal procurement and financial management, two vital components of government operations.
One of the central objectives of this PMA update is to publish success metrics and milestones for government business management in subsequent quarterly updates. The challenges faced in this area encompass implementing continuous improvements in the Federal government’s procurement, financial assistance, and financial management systems, which collectively oversee a staggering $1.5 trillion in annual Federal contracting and financial assistance expenditures, and sometimes even more during crises.
Achieving these ambitious objectives will necessitate overhauling procurement, financial assistance, and financial management processes. This shift will entail the introduction of new measures and processes, additional training for the Federal workforce, and collective decision-making within agencies to address evolving needs.
Under the business management segment of the PMA, several strategies have been outlined. Firstly, there is a focus on fostering lasting improvements in the Federal acquisition system. This includes strengthening the U.S. domestic manufacturing base, supporting American workers, championing sustainable climate solutions, and creating opportunities for underserved communities. The Federal Government’s role as the world’s largest buyer of goods and services underscores the significance of these efforts.
To realize this strategy, three key goals have been established:
- Creating a Diverse and Resilient Federal Marketplace: This goal aims to enhance the Federal acquisition system’s adaptability and resilience while promoting diversity in procurement.
- Ensuring Interoperability and Data Sharing: This goal underscores the importance of data interoperability and sharing tools to streamline acquisition processes.
- Developing an Inspired and Engaged Acquisition Workforce: Building a workforce that is motivated and engaged is critical for the success of the Federal acquisition system.
The second business management strategy outlined by OMB is centered on enhancing capacity in Federal financial management, including Federal financial assistance programs. This strategy seeks to catalyze American industrial strategy, address climate-related risks, and deliver equitable results. It emphasizes the need to break down silos and focus on managing the business of government as a Federal enterprise to drive system-wide, continuous improvement.
To achieve this, two essential goals have been identified:
- Strengthening and Formalizing Governance: This goal involves enhancing the governance of Federal financial assistance across agencies to effectively implement the PMA and statutory requirements.
- Building a Robust Financial Assistance Community: Establishing a community that identifies and bolsters the core competencies of grants managers is crucial for the success of financial assistance programs.
The Biden-Harris administration has already taken proactive measures to leverage Federal acquisition and financial assistance as tools to address pressing national challenges. By strengthening government business management, the administration aims to enhance efficiency, equity, and stewardship in government operations.
In conclusion, the latest President’s Management Agenda updates underscore the critical role of business management in government operations. These updates introduce clear goals and strategies aimed at improving procurement, financial management, and financial assistance. As the government continues to evolve, effective business management practices will play a pivotal role in achieving its objectives and serving the needs of the American people.