increase staffing and expand existing workplace electronic The CIAO is funded at $6 million in FY 1999. Commerce's systems to meet projected growth in workload. Assisting Distressed Communities FY 2000 Secretarial Initiative requests program increases of $7.3 million for NIST and NTIA Critical Infrastructure Protection. The Economic Development Administration (EDA) helps dis- The President's State of the Union Message noted the importance of building a fiscally responsible and effective government for the information age. Under the leadership of Secretary Daley, Commerce has made management reform a top priority. Building on the improvements in management and systems achieved to date, Commerce is proposing three management initiatives for FY 2000, requiring an investment of $6.1 million. As part of its Economic Adjustment Assistance Program, the Digital Department Critical Infrastructure Program President Clinton signed the Presidential Decision Directive (PDD-63) establishing the interagency Critical Infrastructure Program (CIP) to protect the Nation's critical infrastructures. Critical infrastructures are those physical entities and cyberbased systems essential to the minimum operations of the economy and government and include telecommunications, energy, banking and finance, transportation, water systems and emergency services, both public and private. The PDD calls for the creation of a National Infrastructure Assurance Plan over the next three years to raise defenses primarily against cyber, but also physical attack. In order to craft a comprehensive plan, federal agencies need to form strong partnerships with the private sector, which owns and maintains an estimated 90% of those critical entities vulnerable to attack. The Commerce Department has been assigned two components of the CIP: the Critical Infrastructure Assurance Office (CIAO) and the Lead Agency role for the information and communications (I&C) sector. The CIAO, an interagency office housed within the Bureau of Export Administration (BXA), will provide support to the National Security Council National Coordinator's work with government agencies and the private sector in developing a national plan for protecting critical infrastructure. NTIA will serve as the lead agency for the I&C sector and, along with the National Institute for Standards and Technology (NIST), will carry out the research needed for I&C. Modernizing the Department's information technology infrastructure will expand the range of electronic options available to each bureau, establish Department-wide systems, and enable Commerce to process and provide information in the most convenient media for its customers. Creating a Digital Department, a jointly funded effort through the Working Capital Fund, will consist of: Creating a fiber optic backbone and unified network architecture for the Herbert C. Hoover Building and all other bureau buildings; Consolidating telecommunications infrastructure across bureaus; Creating a central operations office run by one bureau providing service to the full Department; and Creating a smart-card based physical and information security access program. Clean Financial Audits The Chief Financial Officers Act of 1990 (CFO Act) and the Government Management Reform Act of 1994 (GMRA) were designed to improve overall financial management practices of federal agencies. The Department's ability to produce reliable information on the costs of federal programs and activities requires an internal control structure that provides management with assurance that transactions are executed in compliance with the laws, regulations, and any other guidelines that affect financial statements. This initiative will target specific problems and work to ensure the integrity of the Department's financial statements, thereby resulting in the attainment of 100% unqualified financial audit opinions. The increase will also help to provide an integrated financial management system to comply with federal accounting practices. PTO as a Performance Based Organization As part of the Administration's efforts to make government work better and cost less, this legislative initiative will enable the Patent and Trademark Office (PTO) to become a Performance Based Organization (PBO) capable of delivering services to its customers on a level comparable with the private sector. A PBO structure will remove current federally imposed administrative burdens that prevent it from operating more effectively. Theme 2. Keep America competitive with cutting-edge Theme 3. Provide effective management and stewardship of the Nation's resources and assets to ensure sustainable economic opportunity. (Resources/Assets and Management/Stewardship Theme.) A key advantage of our Strategic Plan's structure is its flex The PTO's role in protecting and promoting the use of intellectual property rights through issuance of patents and trade-ibility, based on the recognitionthat some programs can have marks is a key component of the Department's efforts to help American businesses compete successfully in the technology-based global economy. PTO must become more efficient in providing its services as product life-cycles become shorter. PTO meets the threshold requirements for becoming a PBO. It is revenue-producing and self-sustaining; involved in a large number of business-type transactions with the public; and capable of responding to the needs of a growing market for its services. Becoming a PBO would build upon PTO's current efforts to reduce processing time for patents, trademarks, and information dissemination requests by enhancing production; increase customer satisfaction through service quality improvement; increase organizational efficiency and effectiveness through consolidation of PTO office space; and enhance executive direction and policy support functions. STRATEGIC PLANNING AND THE FY 2000 BUDGET: The Government Performance and Results Act (GPRA) requires that agencies develop strategic plans that contain goals, objectives, and performance measures for all major programs. The Department of Commerce has embarked on an effort to capitalize on the synergy between our programs and to implement a Strategic Plan and an Annual Performance Plan that respond to these Congressional and stakeholder concerns. Our Mission Statement and three Strategic Themes are: The Department of Commerce promotes job creation, economic growth, sustainable development, and improved living standards for all Americans by working in partnership with businesses, universities, communities, and workers to: Theme 1. Build for the future and promote U.S. competitiveness in the global marketplace by strengthening and safeguarding the Nation's economic infrastructure. (Economic Infrastructure Theme.) dual applications. For example, some technology programs can be cited under Theme 1 because they support the expansion of the economic infrastructure, as well as Theme 2, because they focus on technological innovation. Similarly, the content and application of patentable new scientific and technological discoveries fall under Theme 2, but the protection of the rights to this intellectual property - an important National asset- makes these programs part of Theme 3 as well. Under the Secretary's leadership, the Department of Commerce is using its Strategic Plan to establish a context for the future. To pursue the Commerce mission, and to ensure the success of the three Strategic Themes, we need new insights, new information, and application of new technology, all brought together in a unique way. As America moves into the 21st century, the capabilities of and services delivered by the Department will be key to our domestic security and global competitiveness. Commerce is the only federal department whose structure encourages the integration of economics, trade and business development, environmental stewardship and technology and information. The integrated whole is far more powerful on behalf of the Nation than the sum of these separate parts. The Themes within the Commerce Strategic Plan chelp identify and capitalize on relationships among bureaus and on partnerships with other agencies and external groups. The Strategic Plan supports the concept that strong working relationships will serve to strengthen the effectiveness of the Department as a whole, as well as demonstrate how individual bureaus logically and critically support the core mission of the Department. The Commerce Strategic Plan provides the framework for strengthening existing relationships among bureaus and with external partners. Success for Commerce programs in the changing technological world and global economy will depend increasingly on alliances with businesses and industry, universities, State and local governments, and international parties. Partnerships promote the leveraging of resources and talent and often provide the means for meeting program requirements more effectively because of the mutual benefits involved. Partnerships will also be key to help establish per formance measures or goals where one agency lacks complete authority over the activities or policies that lead to a particular outcome. Partnerships with other agencies or entities make shared outcomes more achievable and enablebroader societal goals to be met more effectively. OVERVIEW: LINKING OUR PRIORITIES & INITIATIVES, STRATEGIC PLAN, ANNUAL PERFORMANCE PLAN, AND FY 2000 REQUEST The Administration priorities discussed above complement the Secretarial Initiatives and the Strategic Themes and their underlying goals and performance measures. The linkages between the Administration priorities, the Secretarial Initiatives, and the Strategic Themes are explained in the thematic discussions which follow. FY 2000 ADMINISTRATION PRIORITIES AND COMMERCE STRATEGIC THEMES These Strategic Themes are interdependent and help underscore how our programs serve the Nation. Examples of this, and of how the Strategic Plan's program goals and performance measures are supported through the FY 2000 budget request, are discussed in the bureau-specific chapters of this Budget in Brief. improving coordination and planning among federal export promotion programs and to reducing or eliminating unnecessary obstacles to private sector exports. In addition, Commerce actively promotes initiatives supporting development of the National Information Infrastructure, expansion of economic development and planning assistance to distressed areas, and expedited technology transfer to private sector users. The current activities conducted or supported by the Department of Commerce under Theme 1 are not confined to domestic or international trade. Commerce's overall focus is on the Nation's economic infrastructure — the farms, factories, small- and medium-size businesses, and universities that make up our economy and provide jobs for millions of Americans. Commerce programs combine to result directly in job creation and economic efficiency-through promoting trade, developing and protecting technological advances in production and communication—and in supporting job creation by leveraging capital and other resources, and providing needed information, physical resources, and environmental prediction. Each Commerce goal is a medium-to long-term effort we will pursue through shorter-term, measurable objectives. Progress in meeting these objectives will be shown in specific annual accomplishments (or performance measures). IMPLEMENTING THEME 1: SUPPORT FOR THE NATION'S INFRASTRUCTURE The Nation's Economic Infrastructure is defined broadly in the Strategic Plan reflecting Commerce's comprehensive mandates. Under this Theme, Commerce is concerned with the issues surrounding our domestic and international trading capacities, our Nation's job-creation capacities, our support for minority business, our leading technological innovation and improvements in production (and our protection of those new ideas), the economic health of our communities, our information infrastructure, and the provision of environmental predictions essential to protecting life and property. IMPLEMENTING THEME 2:SUPPORT FOR THE NATION'S SCIENCE, TECHNOLOGY, AND INFORMATION INITIATIVES The issues underlying Theme 2-Science/Technology/Information - have grown in importance as science and technology have become increasingly pervasive in our society. Under Theme 2, we set national policy and examine issues of technological development and innovation, conduct scientific studies and data analysis leading to longer-range environmental predictions, provide information-based support to U.S. business and relating to international trade (ranging from the Decennial Census to specific market analysis), focus on the radio frequency spectrum and technological ways in which The following FY 2000 Administration priorities are related to broadcasting is conducted, and conduct scientific and techniTheme 1: cal research in support of national needs. America's export performance. We are also committed to Maintaining cutting-edge science and technology and a world class information base are critical to keeping America competitive. Commerce bureaus work in concert to carry out this strategy and, in so doing, support the Departmental mission to promote job creation, economic growth, sustainable development, and improved living standards for all Americans. Promoting the application of cutting-edge science and technology by American businesses in their daily operation is critical to strengthening the international competitive position of American firms. Commerce programs support R&D and promote the application of innovative technologies to commercialization of business processes; ensure protection of intellectual property; expand opportunities in international markets through export licensing; provide management and technical support to small- and medium-sized businesses and to economically distressed areas; and, collect and disseminate economic data and environmental information used by private and public sector policy makers to measure our Nation's economic well-being. IMPLEMENTING THEME 3: SUPPORT FOR THE NATION'S RESOURCE MANAGEMENT AND STEWARDSHIP RESPONSIBILITIES The Resource/Asset Management/Stewardship activities under Theme 3 encompass several diverse Commerce Depart ment responsibilities. Under a series of legislative mandates Commerce has both direct and indirect management responsibilities for specific national resources, and stewardship responsibilities to ensure the optimum use of national assets. For example, Theme 3 focuses on intangible resources and assets - we grant access rights to intellectual property and to portions of the radio frequency spectrum. But at the same time, within Theme 3, Commerce has direct responsibilities |