Concept of Operations for Line of Business Initiatives Version 1.0

OMB - Office of E-Gov & IT - FEAPMO


With the release of the President’s Budget in February 2004, the Office of Management and Budget (OMB) announced it would pursue efforts to improve the efficiency in a number of different government-wide lines of business (LoBs), supporting the President's Management Agenda (PMA) goal to expand Electronic Government. In March 2004, OMB officially launched interagency Task Forces to perform government-wide analysis of the identified LoBs.

These interagency Task Forces examined business and information technology data and best practices for certain government-wide business functions – financial, human resources, and grants. The Task Forces also examined other multi-agency functions including federal health and case management. The goal of the effort was to identify opportunities to reduce the cost of government and improve services through business performance improvements.

Throughout 2004, cross-agency teams analyzed opportunities for integration and consolidation in the LoBs for Financial Management (FM), Human Resources Management (HR), and Grants Management (GM). The analysis suggested the Federal government could realize significant savings over a ten-year timeframe through the consolidation of FM and HR systems and the standardization and optimization of associated business processes and functions. To realize these benefits, OMB asked agencies with the skills, capabilities, and interest to function as government-wide FM or HR service providers and to submit business cases for doing so as part of the Fiscal Year 2006 budget process. The business cases were evaluated using a due diligence checklist developed in conjunction with third-party industry groups. This checklist assessed potential service providers’ abilities in terms of past performance, current capabilities, and ability to operate a customer-focused organization. On the basis of the review, certain agencies were designated as eligible to enter into competitions to become cross-agency service providers. In the future, these agencies may also compete with private sector companies to provide these services to other Federal agencies.

Leveraging experiences of the LoBs in 2004, OMB kicked off a Task Force in March 2005 to address the Information Systems Security (ISS) LoB. The ISS LoB Task Force identified problems and proposed solutions to strengthen the ability of all agencies to comply with the Federal Information Security Management Act (FISMA), including: (1) specialized training and knowledge sharing for threat awareness and incident response capability; program management; security lifecycle; selection, evaluation, and implementation of security products; and (2) defending against threats, correcting vulnerabilities, and managing resulting risks (including those specific to a single agency or shared among other agencies).

Moving forward, new candidate LoBs are being analyzed. OMB, in conjunction with the appropriate interagency councils and agencies will play a proactive role in their development, building upon lessons learned from past initiatives. The LoB initiatives are an important step in advancing the goal of citizen-centered government.