Management Oversight Process
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
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
The objectives of the BMOP are:
1. To improve DOE and contractor performance in business management functions
2. To institutionalize a business management system that encourages and rewards
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
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
The key characteristics (requirements) of the BMOP include the
1. Management of DOE and contractor business management functions is on a
2. A high value is placed upon partnering. Headquarters, field, and contractor
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
predetermined performance objectives, measures, and
4. Contractors shall establish their own management systems to meet performance
5. Performance evaluations shall be based upon demonstration of performance results
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
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
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:
- Policy Guidance
- Performance Objectives
- Departmental Measures
- Field Assessment
- Contract Administration
- Site-Specific Measures
- Contractor Assessment
- Contract Measures
- Management Systems
- Action Plans
What are its business
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
4. Finance and Budget
5. Human Resources Management
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
- Emergency Management
11. Personal Property
13. Public Affairs
14. Scientific and Technical Information Administration
15. Technology Partnerships Administration
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
Key dates for 1998/99 include the following:
- September 30, 1998 HQ and Filed offices agree on 1999 performance objectives,
- January 15, 1999 Field offices using fiscal year cutoff date submit 1998 self
- February 26,1999 Field offices using calendar year cutoff date submit 1998 self
- 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