Cathy Claunch                  Sid SchmidtPM Challenge   February, 2011
   Need to balance Agency portfolio within    tight budgets    ◦ Successful Programs    ◦ Robust Institutional Base   Ar...
11/12/2010 report from the Inspector General listed “Infrastructure and Facilities Management”             as a top Agency...
   Can the budget process help bridge the    apparent competition for scarce resources?   What is the content of these t...
   Lengthy budget formulation process   Small window of time for integration    of program and institution budgets      ...
Appropriation Process Takes ~18 Months      M     A      M      J     J      A      S     O      N      D     J    F    M ...
Feb           March          April         May              June            July            Aug            Sept           ...
   Agency budget is understandably mission    oriented   Center institutional component of budget    ◦ Relatively small ...
NASA FY10 Budget by Theme                            11
FY10 Cross-Agency Support Budget                                   12
FY10 Center M&O Budget   Science &   Engineering                            Institutional  Engineering Technical   $244M, ...
FY10 CMO Institutional Budget                Center Director                                      Center Multi-Media Suppo...
Profiles Vary Widely By CenterFY 2004   Center G&A – with CoF          • Focus on budget year                             ...
   During recent years, the institutional budget    portfolio has seen several process changes all    seeking to improve ...
   Goal:    ◦ Define content of Center Management & Ops budget for      ease of explanation to stakeholders    ◦ Minimize...
   Began as review of facilities require decision as    Shuttle Program ended    ◦ Continue operations – fund with next P...
   NASA Agency management proposed that a    process be instituted to manage Agency    strategic capabilities as corporat...
   Mission Directorate example   Center example   Civil Service budgeting                                  22
   A healthy institutional base enables    Programmatic success   Tension between two competing budget    entities can b...
Claunch.cathy
Claunch.cathy
Claunch.cathy
Claunch.cathy
Claunch.cathy
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Claunch.cathy

  1. 1. Cathy Claunch Sid SchmidtPM Challenge February, 2011
  2. 2.  Need to balance Agency portfolio within tight budgets ◦ Successful Programs ◦ Robust Institutional Base Are they really competing priorities? Is a competitive environment healthy? Can the Agency succeed with one or the other? 2
  3. 3. 11/12/2010 report from the Inspector General listed “Infrastructure and Facilities Management” as a top Agency challenge.“NASA is the ninth largest Federal Government property holder, controlling a network of approximately 5,400 buildings and structures that support Agency research, development, and flight activities. NASA’sability to effectively manage the necessary maintenance and renovation of this large and aging portfolio of facilities is a critical challenge facing the Agency.” 3
  4. 4.  Can the budget process help bridge the apparent competition for scarce resources? What is the content of these two budgets? What activities are underway to improve these efforts? How are these two entities linked? Can the synergy be improved? 4
  5. 5.  Lengthy budget formulation process Small window of time for integration of program and institution budgets 6
  6. 6. Appropriation Process Takes ~18 Months M A M J J A S O N D J F M A M J/J A S O FY11 Execution FY12 Execution 18 MONTHSStart PPBE-13 FY13 Appropriation • Final budget~March 2011 PRESIDENT approval • Budget message to Congress CONGRESS • Budget Resolution • Authorization Acts OMB • Appropriation Acts Review and integrate agency recommendations Markup and OMB reclama process • Midyear update / Secure final sequester report determinations by • Apportionment of President appropriated funds AGENCIES • Operating Plans Internal determination of requirements • Implementation of AGENCIES and authorities program Formation of budget recommendations • Obligations • Costs • Outlays 7
  7. 7. Feb March April May June July Aug Sept Oct Agency Budget Final Budget Leadership Governance/Decisions Reviews Decisions President’s Agency Budget Request Request to OMB Issues Issues Agency Budgets Book Book Decisions AmendedHQ Office of the Chief Financial Officer Update Made as Necessary Agency Program Program & Guidance Budgets Center Submitted Budgets Program Integrated Budget Mission Directorates Reviews Program Guidance Work actions as necessary based on decisions Programs/Projects & Centers Budget Development 8
  8. 8.  Agency budget is understandably mission oriented Center institutional component of budget ◦ Relatively small ◦ More than “overhead” 10
  9. 9. NASA FY10 Budget by Theme 11
  10. 10. FY10 Cross-Agency Support Budget 12
  11. 11. FY10 Center M&O Budget Science & Engineering Institutional Engineering Technical $244M, 51% ProgrammaticCenter Investments Authority $1,679 Ensure core science $483$65M, 13% $122M, 25% 78% and engineering 22%Independent Research & Engineering LeadershipSMA Technicalare capabilitiesDevelopment Authority &$52M, 11% to support availableBid and Proposal Chief Program/ProjectSafety and Mission at program activities Engineers a CenterAssurance Support 13 13
  12. 12. FY10 CMO Institutional Budget Center Director Center Multi-Media Support Equal Opportunity & Diversity Other Center Management Strategic Communications Chief Counsel Procurement Human Resources Financial Management Occupational Health LogisticsUtilitiesOperationsInactive Buildings & StructuresRoads & Grounds MaintenanceScheduled (proactive) MaintenanceUnscheduled (reactive) MaintenanceNew CapabilityOther Facilities Services 14Facility Management
  13. 13. Profiles Vary Widely By CenterFY 2004 Center G&A – with CoF • Focus on budget year knowing that out-year budgets could be adjusted inFY 2005 Center G&A – no CoF next cycle • Some Centers anticipating reduced workforceFY 2006 Center G&A Profiles Vary Widely By Center CMO - Center G&A,FY 2007 Facilities & IT Service Pools, Eng & SMA Existing G&A Out-yr budgets Technical Authority transferred to CMO as fixed budgetFY 2008 CMO – Added Indirect portion of remaining Service Pools Profiles Consistent Across Agency • Reallocated budget amongFY 2009 CMO Centers •Reallocated some funds (FY09) from Corporate G&A 16
  14. 14.  During recent years, the institutional budget portfolio has seen several process changes all seeking to improve efficiencies ◦ Baseline Services Level Review ◦ Institutional Gap Review ◦ Corporate Portfolio Management Review 17
  15. 15.  Goal: ◦ Define content of Center Management & Ops budget for ease of explanation to stakeholders ◦ Minimize or eliminate the variation in service levels provided across the Agency ◦ Minimize or eliminate variation in charging practices Conclusions ◦ City Management functions – goals met ◦ Technical Capability functions – more work to be done 18
  16. 16.  Began as review of facilities require decision as Shuttle Program ended ◦ Continue operations – fund with next Program with requirement? Mothball – until needed by future Program? Abandon – not needed in foreseeable future? Acknowledges need to maintain minimum critical skills for the Agency during a changing environment Review of all facilities and technical capabilities – focus is Human Spaceflight (ESMD/SOMD) ◦ What will be needed by future programs? Excellent example of ongoing debate that links infrastructure, capabilities, and Programmatic requirements 19
  17. 17.  NASA Agency management proposed that a process be instituted to manage Agency strategic capabilities as corporate portfolios ◦ Study underway ◦ Promotes increased collaboration across NASA 20
  18. 18.  Mission Directorate example Center example Civil Service budgeting 22
  19. 19.  A healthy institutional base enables Programmatic success Tension between two competing budget entities can be healthy – if kept in check Real-life budget pressures require both to be efficiently managed 24

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