In addition to these ongoing programs and strategic goals, we have developed complementary plans in the areas of information technology investments, human capital planning, financial management and procurement. These areas are strategically important in that they provide vital support to achieving our stated objectives and strategic goals. Recognizing this interrelationship, these initiatives include measurable objectives and outcomes that are also reported and tracked as part of our Annual Performance Budget and related documents, as well as periodic reports required by statute, regulation or executive guidance.

Effectively Manage Information Technology for Results

Information technology not only provides the underlying support for the agency’s current day-to-day operations, but it also is a strategic means of improving the cost-effectiveness of our operations in the future. In that sense, information technology is a critical aspect of our goal to safeguard our trust funds and agency resources. We are continually striving for better ways to plan and control our information technology investments and initiatives, to ensure that they perform as expected, provide a meaningful return, and are delivered on time and within budget.

In recent years, the agency has taken steps to develop a consistent enterprise architecture and completed a major conversion of the databases underlying its benefit-processing systems to a more modern, robust platform. The next major step is to rewrite those systems to optimize use of the data housed in this new environment. We have also implemented a network-based project management system that allows us to estimate, track and monitor total costs and time schedules for information technology investments throughout the project life cycle.

Since information technology investments represent a substantial part of our annual operating budget, it is imperative that these investments pay the expected dividends. In this planning period, the RRB will develop metrics to analyze these investments for compliance with agency plans and needs. They will be reflected in the update of the RRB’s Strategic Information Resources Management Plan, and the agency’s Annual Performance Budget will include objectives based on them. As part of our efforts to implement this plan and track progress, we will continue to develop Information Technology Capital Plans that will be reflected in our budget requests and supporting documents.

Effectively Manage Human Capital for Results

The agency’s dedicated, experienced employees have been the foundation for our outstanding track record in customer service and satisfaction. However, we recognize that there is an ongoing need and responsibility to effectively manage our human capital resources. This is particularly important given the number of RRB employees who are eligible for retirement and those who soon will be. We have been working closely with OPM, as well as OMB, to develop a long-range plan that will position the agency for continued success in administering our programs.

In particular, the RRB has been focusing on several aspects of the human capital standards prescribed by OPM’s mandates under the Chief Human Capital Officers Act of 2002 and the Federal Workforce Flexibility Act of 2004. Following OPM guidelines, the RRB is developing a comprehensive plan which outlines the agency’s human capital policies, programs and practices as they support this Strategic Plan. This includes a detailed analysis of the demographic features of the RRB workforce and the skills needed to fulfill our mission. It will also establish a framework of actions over the planning period that will assist the RRB in recruiting, retaining and developing talented employees. Key challenges facing the agency include an aging workforce, employee attrition and the increasing complexity of information technology needs.

Currently, about one-third of RRB employees are eligible for retirement, escalating to more than one-half by fiscal year 2012. The agency has prepared a draft succession planning document that identifies human capital needed to meet organizational goals, any competency gaps that may exist and strategies for addressing these needs/gaps. We have also placed added emphasis on filling entry-level positions, focusing on front-line service employees in the field offices and claims examiners to the extent possible. These new employees, together with those expected to be hired over the next several years, will be key to effectively administering the RRB’s programs and continuing to provide outstanding service over the long term.

During the planning period, we will foster a leadership environment that inspires, motivates and guides employees toward our strategic goals, allows them to link their responsibilities with the agency’s strategic vision, and results in a stable, diverse workforce that has the competencies needed to fulfill our mission. As part of these efforts, we will incorporate human capital objectives in the Annual Performance Budget; will request funds in the agency’s budget submissions to fill key positions and provide training; and will ensure that employees are able to link their daily activities to relevant goals in the agency’s Strategic Plan.

In addition to the area of talent management, which deals with skills gaps in the agency workforce and effective recruitment/retention of new employees, the RRB’s plans in this area will address leadership/knowledge management and development of a results-oriented performance culture. The former is particularly important given the number of senior executives and managers who are or soon will be eligible for retirement. The RRB will also establish accountability for human capital management by systematically monitoring and evaluating the effectiveness of policies and practices in this area.

Enhance Information Security

Information security has taken on added importance in recent years, and has been identified as an issue of concern by the OIG. The RRB has taken steps to improve its policies and procedures in the areas of risk assessment, testing and evaluation, and implementation of logical access controls in our major application and general support systems. Our progress in this area includes documentation of the 357 tests of the agency’s common controls as specified by the National Institute of Standards and Technology (NIST), and the agency is also in the process of having all of its systems certified and accredited in accordance with NIST standards. A special project is also underway to address specific shortcomings identified by the OIG. While the RRB has made significant progress in this area, it will continue to make additional improvements during the planning period.

Enhance Financial Reporting

The RRB’s financial statements received an unqualified audit opinion for fiscal year 2008 for the ninth consecutive year. Nevertheless, the agency is taking steps to improve processes related to preparation of the financial statements, issuance of payments, internal controls and quality assurance. These actions will address items identified by the OIG’s audit of the financial statements as well as ensure continued compliance with the Federal Managers’ Financial Integrity Act, OMB circulars and related requirements. Current initiatives by agency financial staff include steps to improve the reconciliation of benefit-payment subsystems to the general ledger, provide additional training and controls on voucher preparation/processing and update accounting procedures, among others. During the planning period, we will continue to work to maintain a clean opinion for the financial statements.

Effectively Use Competition in Contracting

We will also strive to implement a first-class acquisition system that makes maximum use of competitive procedures, uses past performance as an evaluation factor in awarding contracts, and ensures that contractors meet all delivery requirements and schedules for goods and services. This will help ensure that the RRB consistently pays the lowest price for products and services commensurate with quality, service, delivery and reliability by promoting full and open competition to the maximum practical extent when procuring goods and services, awarding purchase orders only to responsible contractors, and closely managing solicitations and their resulting contracts.

Performance-based services contracting (PBSC) emphasizes objectives and measures performance requirements and quality standards in developing statements of work, selecting contractors, and determining contract type and incentives in performing contract administration.

In September 2004, OMB issued guidance on expanding use of PBSC on contracts of more than $25,000. In recent years, the agency has been able to achieve an increase both in terms of the numbers of contracts and percentages of dollars awarded competitively. The RRB’s purchasing staff publishes all required and many optional procurement notices on the government-wide, point-of-entry website (www.FedBizOpps.gov). The entries include pre-solicitation and award notices, as well as market surveys. The agency also has about 90 employees authorized to use procurement cards for rapid micro-purchases or other simplified acquisitions.

The RRB will continue to make use of strategic sourcing as well, which is a collaborative, structured process that critically analyzes agency needs so as to obtain commodities and services in the most effective, efficient manner. This involves awareness of Federal best practices in acquisition management and, in many cases, cooperating with other agencies to utilize shared contracts or other interagency agreements. The typical results of these efforts are increased value in the form of optimized performance and minimized price, improved vendor access to Federal business opportunities, and a greater likelihood of achieving socio-economic acquisition targets. Related to human capital planning, the RRB will also continue to have knowledgeable, well-trained acquisition specialists.

Lastly, as a small agency, it is not always economically feasible to retain staff expertise in extremely specialized areas so as to perform all activities in-house. As a result, we will also evaluate the use of outside resources, including partnerships with other Federal agencies, based on considerations such as cost and/or time savings, improved effectiveness, enhanced expertise and increased customer satisfaction.