The management side of OMB oversees and coordinates the Federal procurement policy, performance and personnel management, information technology (e-Government), and financial management. In this capacity, OMB oversees agency management of programs and resources to achieve legislative goals and Administration policy. It also oversees agency program evaluation activities to determine their net effects, success or failure, and how agencies respond to these findings by making management improvements and developing new budget and policy proposals. Show OMB’s Management Offices include:The Office of Federal Financial Management (OFFM) develops government-wide policies and provides strategic direction to improve financial management, reporting, and systems; to reduce improper payments; to improve grants management; and to “right-size” Federal real property. OFFM also coordinates the activities of agency Chief Financial Officers and Senior Real Property Officers. The Office of Federal Procurement Policy (OFPP) is responsible for setting government-wide acquisition priorities and policies, which shape the full range of federal agency procurement practices. In addition to its formal role leading the regulation-writing process for the entire federal government, OFPP works with agencies to strengthen the acquisition workforce, and initiates and fosters cost-saving and risk-reduction practices across the government. OFPP also works to ensure that agencies rely on and manage contractors in fiscally responsible ways. The Office of the Federal Chief Information Officer (OFCIO), headed by the Federal Government’s Chief Information Officer, develops and provides direction in the use of technology to make it easier for citizens and businesses to interact with the Federal Government, save taxpayer dollars, and streamline citizen participation. The Office of Performance and Personnel Management (OPPM) leads the effort to drive mission-focused performance gains across the Federal government. OPPM coordinates the Administration’s goal-setting and performance review process for agencies’ high priority performance goals and guides agency strategic and annual planning, performance reviews and performance reporting. OPPM also functions as the Resource Management Office for the U.S. Office of Personnel Management (OPM) and guides Federal personnel policy, working closely with OPM to implement effective personnel policies and practices. The Made in America Office (MIAO) is responsible for ensuring that the United States Government, consistent with applicable law, use terms and conditions of Federal purchasing and financial assistance (such as grants and loans) to maximize the use of goods, products, and materials produced in, and services offered in, the United States. MIAO works with Federal agencies to ensure that, whenever possible, they procure goods, products, materials, and services from sources that will help American businesses compete in strategic industries and help America’s workers thrive. As part of this effort, MIAO promotes accountably and transparency by working with agencies to review proposed exceptions from Made in America laws and policies.
OMB is responsible for overseeing Federal agencies’ information technology practices. As a part of this core function, OMB develops and ensures implementation of policies and guidelines that drive enhanced technology performance and budgeting across the Executive Branch. The Federal CIO heads OMB’s Office of E-Government and Information Technology (E-Gov), which develops and provides direction in the use of Internet-based technologies. The two major policies and guidelines are FITARA and FISMA. With FITARA, the Common Baseline was set forth and the role of Agency CIOs was expanded with increased responsibilities through the National Defense Authorization Act for Fiscal Year 2015. (Public Law 113-291. Sec. 831. National Defense Authorization Act for Fiscal Year 2015.) Per OMB M-15-14, the specific requirements of FITARA include: With FISMA, information security requirements were set forth based on NIST compliance documents. (NIST. Federal Information Security Management Act (FISMA) Implementation Project.) FISMA requires annual evaluations of the information security program at each federal agency, which are reviewed by DHS and OMB, and incorporated into an annual report to Congress. FISMA states:
Each year, not later than such date established by the Director [OMB], the head of each agency shall submit to the Director [OMB] the results of [their agency’s] evaluation required under this section. (CIO Council. CISO Handbook.)
The core mission of OMB is to serve the President of the United States in implementing his vision across the Executive Branch. OMB is the largest component of the Executive Office of the President. It reports directly to the President and helps a wide range of executive departments and agencies across the Federal Government to implement the commitments and priorities of the President. As the implementation and enforcement arm of Presidential policy government-wide, OMB carries out its mission through five critical processes that are essential to the President’s ability to plan and implement his priorities across the Executive Branch:
Organizationally, OMB has offices devoted to the development and execution of the Federal Budget, various government-wide management portfolios, and OMB-wide functional responsibilities. Budget Formulation and ExecutionOMB has five resource management offices (RMOs), organized by agency and by program area. These offices, together with OMB’s Budget Review Division, help to carry out OMB’s central activity of assisting the President in overseeing the preparation of the Federal Budget and supervising its administration of Executive Branch agencies. In helping to formulate the President’s spending plans, the RMOs assess the effectiveness of agency programs, policies, and procedures, weigh competing funding demands within and among agencies, and help work with agencies to set funding priorities. Once the Budget is enacted, RMOs are responsible for the execution of Federal budgetary policies and provide ongoing policy and management guidance to Federal agencies. As part of these and other responsibilities, the RMOs provide analysis and evaluation, oversee implementation of policy options, and support government-wide management initiatives. The Budget Review Division (BRD) plays a central role in developing and implementing the President’s Budget. BRD provides leadership and analytic support across the agency by analyzing trends in and the consequences of aggregate budget policy. It aggregates data provided by the RMOs, provides strategic and technical support for budget decision-making and negotiations, and monitors congressional action on appropriations and other spending legislation. In addition, BRD provides technical expertise in, and guidance on, budget concepts and execution. The Management Side of OMBThe Deputy Director for Management (DDM) also serves as the nation’s first Federal Chief Performance Officer (CPO). The DDM/CPO develops and executes a government-wide management agenda that includes information technology, financial management, procurement, performance, and human resources. The management side of OMB is comprised of five offices, four of which are statutory, that oversee and coordinate the Administration’s procurement, financial management, e-government, performance and personnel management, and information and regulatory policies. In each of these areas, OMB’s role includes not only administrative management functions, but also program and policy management (e.g., program delivery and outcomes). This role encompasses oversight of how agencies devise, implement, manage, and evaluate the statutory programs and policies for which they are responsible. This responsibility is central to OMB’s efforts to assist in agency strategic planning, goal-setting, performance measurement, information management, evaluation, and policy research. These functions are essential parts of the policy and program direction advice that OMB provides. The management offices develop and oversee the President’s management plan and other government-wide management policies, and work primarily with and through the RMOs and the agencies to ensure that these policies are implemented:
Regulatory Review and Paperwork ReductionExecutive Order 12866, "Regulatory Planning and Review," issued by President Clinton on September 30, 1993, gives OIRA within OMB the responsibility to review agencies’ draft proposed and final regulatory actions. With respect to regulatory policy, OIRA’s mission includes ensuring coordination and interagency review within the Executive Branch, including offices within OMB and the Executive Office of the President; promoting adherence to the law and to the President’s priorities and commitments; and ensuring that regulations are based on sound analysis and serve the purposes of the statutes that authorize them and the interests of the public. Specifically, OIRA’s review of draft proposed and final significant regulations helps ensure that the agency has adequately defined the problem that it intends to address; considered alternatives; assessed available information, risks, costs, and benefits (both qualitative and quantitative); consulted affected parties and promoted transparency and participation; and tailored the regulation to focus on the problem in a simple and clear way that does not conflict with other rules or statutes. OIRA seeks to ensure, to the extent permitted by law, that the benefits of agency regulations justify the costs and that the chosen approach maximize net benefits to society. OIRA also administers the Paperwork Reduction Act of 1995, which calls for clearance and assessment of information collection requests by agencies. Legislative Clearance and CoordinationOMB clears agency views on legislative proposals and testimony to ensure consistency in the Administration’s policy positions.
President’s Executive Orders and Memoranda to Agency HeadsUnder Executive Order 11030, as amended, OMB substantively reviews and clears all draft Presidential Executive Orders and Memoranda to Agency Heads prior to their issuance. Any agency head or White House component wishing to sponsor an executive order or Presidential memorandum formally requests such an order or memorandum from OMB. OMB works with the policy sponsor to draft or refine the proposed order or memorandum; submits the draft to an interagency clearance process; and works with the policy sponsors to address agency comments and resolve disputes. The OMB General Counsel also obtains “form and legality” approval of draft executive orders from the Department of Justice, and seeks legal authority approval from the Department of Justice for Presidential memoranda as well. Draft executive orders and Presidential memoranda are submitted for signature to the President by the Director of OMB and the General Counsel of OMB. Other OMB OfficesOther OMB offices include Intellectual Property Enforcement Coordinator, Management and Operations, Communications, Economic Policy, General Counsel, Legislative Affairs, and Legislative Reference. The Office of the Intellectual Property Enforcement Coordinator (IPEC) is responsible for formulating and implementing the Administration’s strategic plan to combat counterfeiting and other forms of intellectual property infringement. The IPEC office collaborates closely with the array of agencies responsible for intellectual property enforcement to develop an effective government-wide strategy to maximize the effectiveness of available resources. The IPEC office also works closely with the Director, components of OMB, and other offices within the White House, to establish intellectual property policies that promote innovation and to provide advice on a host of intellectual property issues. The Office of Economic Policy (EP), along with the Department of the Treasury and the Council of Economic Advisers (CEA), develops economic assumptions for the President’s Budget and works closely with BRD on budgetary issues. EP assists RMOs with budget estimates, policy proposals, cost models, and other data analytics, especially in the areas of credit and insurance, health, labor, education, and tax policy. EP plays a leadership role in government-wide program evaluation efforts. EP is responsible for the Circular setting Federal discount rate policy. EP also assists the management side of OMB by analyzing procurement policy and issues related to Federal pay and benefits. OMB’s Office of General Counsel provides legal advice and counsel to the Director and the OMB components and staff. In addition, the General Counsel’s Office manages the Executive Order and Presidential Memoranda process for OMB and the Administration; reviews and clears all legal and constitutional comments by the Department of Justice and other agencies on proposed legislation before such comments are conveyed to Congress; participates in the drafting of bill signing statements for the President; reviews all proposed legislative text comprising the President’s Budget and for all budget-related legislative proposals; evaluates legal issues in proposed regulations; convenes meetings of all agency general counsels and coordinates legal issues across agencies; and ensures OMB’s compliance with ethics laws, the Freedom of Information Act, the Federal Records Act, and other statutory requirements. OMB’s Office of Legislative Affairs works closely with White House Office of Legislative Affairs, Federal Agency Legislative Affairs offices, and congressional offices on current legislative issues. The office conveys information and strategies to the Director to inform decisions on Administration policies. The office, in turn, disseminates budget materials, descriptions of relevant concerns, and statements to Congress to communicate the Administration’s positions. The Office of Legislative Affairs also advises the OMB Director and the organization on legislative issues and developments, provides expertise on the congressional budget process, supplies daily congressional reports to the Director and the OMB staff, oversees correspondence with the Hill, and manages the clearance and transmittal of the President’s Budget and the Administration’s Statements of Administration Policy. The Legislative Reference Division coordinates the articulation of the Administration’s position on legislation by overseeing the review and clearance of the Administration’s legislative proposals, testimony, and statements on bills progressing through Congress. The remaining offices provide OMB-wide support and guidance in a number of areas. For example, the Management and Operations Division helps ensure that OMB has the staff resources, physical facilities, equipment, and information systems needed to accomplish its mission. The Strategic Planning and Communications Office is the principal resource of national, regional, and local media organizations for information about the Federal Budget and other areas of OMB responsibility. OMB also shares responsibility for space management and building construction policy with GSA and responsibility for personnel policy with Office of Personnel Management. |