Business Management Oversight Process

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The Department of Energy (DOE) is changing the way it does business. We have moved from a compliance-based to performance-based system of contracting that encourages and rewards excellence and continuous improvement, and fosters improved and timely communications. To affect this change, DOE has implemented the Business Management Oversight Process (BMOP).

The passage of the Government Performance and Results Act, the National Performance Review, the Department's initiative in contract reform and a recognition that the department engaged in inefficient and non-value added management activities led to the creation of a series of pilot studies leading to a transition to a performance based management system for all business management activities of the Department and its contractors.

What is the BMOP?
The BMOP is a process for using performance-based management as the basis for relationships between DOE Headquarters, Field Organizations and Contractors in all business activities.

What are its objectives?
The objectives of the BMOP are:
  1. To improve DOE and contractor performance in business management functions through a
       performance-based process.
  2. To institutionalize a business management system that encourages and rewards excellence, continuous
       improvement, and timely communication.
  3. To effect a level of communication, partnership, and trust that minimizes the Department's need for
       conducting on-site reviews of contractor business management functions.
  4. To establish performance objectives, measures, and expectations that:
       - drive cost-effective performance improvement, focus on performance results, and maintain
          appropriate internal controls and compliance;
       - when possible, are objectively measurable, thereby allowing meaningful trend and rate of
          change analysis; and
       - encourage bench marking initiatives as a means of incorporating industry business standards
         that are meaningful, appropriate, and consistent with DOE requirements.

What are its key characteristics?
The key characteristics (requirements) of the BMOP include the following:
  1. Management of DOE and contractor business management functions is on a performance basis.
  2. A high value is placed upon partnering. Headquarters, field, and contractor organizations shall
      communicate and work in coordination and cooperation with each other to ensure mutual
      understanding of required performance.
  3. Performance in business management functions is results-oriented, focusing on agreed-to,
      predetermined performance objectives, measures, and expectations.
  4. Contractors shall establish their own management systems to meet performance objectives, measures,
      and expectations.
  5. Performance evaluations shall be based upon demonstration of performance results and appropriate
      internal controls and compliance.
  6. Self-assessments shall be the primary tool used at all levels to assess and evaluate results and to
      improve performance. Assessment and evaluation also includes:
      - operational awareness
      - annual reviews, and
      - "for cause" reviews.
  7. Success in meeting or exceeding performance expectations in a particular business management
      function shall be rewarded with less frequent--or no--review of that function. Conversely, poor
      performance or "for cause" situations may result in more frequent reviews.
  8. With the exception of "for cause" reviews, DOE Elements may conduct no more than one business
       management review of a field office or contractor per year. The on-site portion of such reviews shall
       last no more than 2 weeks.
  9. Annual business management reviews shall focus on validating the self-assessment, including validation
      of improvement results on a graded basis.

How are roles and responsibilities defined?
One of the key factors leading to improved performance in business management is to define a clear set of roles and responsibilities between Department of Energy elements and between the Department and its contractors. This is also critical to meeting   objective of improving communication in a relationship of partnership and trust. The new roles and responsibilities are:
  1. Headquarters
      - Policy Guidance
      - Performance Objectives
      - Departmental Measures
      - Field Assessment
  2. Field
      - Contract Administration
      - Site-Specific Measures
      - Contractor Assessment
      - Self-Assessments
  3. Contractor
      - Contract Measures
      - Management Systems
      - Self-Assessments
      - Action Plans

What are its business applications?
The BMOP includes the following business functions, or other functions, as agreed to:
  1. Administrative Services (includes mail, printing,and library)
  2. Congressional and Intergovernmental Affairs
  3. Diversity (includes minority education programs, affirmative action/EEO, and small
       business participation)
  4. Finance and Budget
  5. Human Resources Management
       - Federal
       - Contractor
  6. Information Management
  7. In-house Energy Management
  8. Laboratory Institutional Planning
  9. Life Cycle Asset Management
10. Nonproliferation and National Security
       - Nuclear Safeguards and Security
       - Classification/Declassification
       - Emergency Management
11. Personal Property
12. Procurement
13. Public Affairs
14. Scientific and Technical Information Administration
15. Technology Partnerships Administration
16. Training
17. Work-for-Others Administration

Who guides the BMOP?
At the direction of the Deputy Secretary, the Director, Office of Field Management sponsors a Steering Committee to facilitate implementation of the BMOP and resolution of problems associated with implementation. The steering committee manages most day-to-day operations such as setting the plans for implementation, including the schedule for preparing self assessments.

In the spirit of partnering and communication, the Steering Committee includes representatives from most headquarters business functions, headquarters program offices, the ten operations and field offices reporting to the Office of Field Management, and representatives from DOE laboratory and for-profit contractors. The committee meets monthly by telephone conference call.

What is the current BMOP schedule?
Key dates for 1998/99 include the following:
  - September 30, 1998 HQ and Filed offices agree on 1999 performance objectives, measures
     and expectations.
  - January 15, 1999 Field offices using fiscal year cutoff date submit 1998 self assessments.
  - February 26,1999 Field offices using calendar year cutoff date submit 1998 self assessments.
  - February- September, 1999 Conduct on-site reviews as required.

How can I get further information about the BMOP?
A number of documents and reports further describe or provide an authorization to conduct the pilot projects or implement the BMOP.  These can be found at the Business Management Oversight Process home page.



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