The e-Payroll vision for the transformation of Federal payroll is
"Simple, easy to use, cost effective, standardized, integrated e-HR/Payroll
services to support the mission and employees of the Federal Government."
The E-Payroll Initiative is leading the effort to the consolidate
twenty-six executive branch federal payroll providers, standardize
payroll policies and procedures, implement new technology for payroll
service delivery, and develop a Federal Enterprise Architecture for
payroll in support of the Human Resources line of business. E-Payroll
system solutions will make federal payroll processing far more efficient,
with a projected savings of $1.1 billion over 10 years.
Overview
The e-Payroll Initiative will standardize and consolidate Governmentwide
Federal civilian payroll services and processes by simplifying and
standardizing HR/payroll policies and procedures and better integrating
payroll, human resources, and finance functions.
Consolidation
The consolidation of twenty-six Federal payroll providers will result
in a reduction of payroll providers and significant savings of tax
dollars by reducing operating costs and avoidance of duplicative systems
modernization investments. Consolidating payroll data across the Federal
Government will improve the link between performance and budgets,
and improve financial management by providing both program managers
and finance officers with information needed to make well-informed
decisions.
This Initiative represents a strategic investment in human capital,
as government employees realize improved, effective service through
implementation of best practices in a simplified, easy to understand
delivery approach. E-Payroll is part of a larger integrated approach
to human capital management.
Standardization
E-Payroll will establish payroll policies and procedures that will
be uniform and easy to understand and administer. Interoperable Governmentwide
e-Payroll system solutions will be "best in class" in terms of overall
costs and ease of administration while delivering high quality service.
The e-Payroll initiative advances the e-Government agenda by creating
greater efficiencies in Federal payroll processing.
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Description
The e-Payroll effort is transforming the current Federal payroll
service delivery environment into one that achieves President Bush's
five management agenda initiatives: strategic management of human
capital; competitive sourcing; improved financial management; expanded
electronic Government; and budget and performance integration. As
the managing partner, OPM established and led a working group to analyze
Federal civilian payroll service delivery from a governmentwide perspective
in order to identify options for future investments in the modernization
and improvement of payroll systems and processes. The working group
(OPM, the Office of Management and Budget (OMB), and payroll providers)
determined that consolidation of payroll service delivery and standardization
of payroll processes were the first steps in achieving the desired
end state of integrated HR and Payroll services.
To achieve consolidation, OPM conducted an internal government sourcing
process that allowed existing executive branch payroll providers an
opportunity to submit responses to set criteria if they were interested
in continuing to provide payroll services. OPM and agency representatives
reviewed these responses and selected the four best qualified providers:
- The Department of Agriculture's National Finance Center (NFC);
- The Department of Defense's Defense Finance and Accounting Service
(DFAS);
- The Department of Interior's National Business Center (NBC); and
- The General Services Administration (GSA).
(GSA) as the best qualified. Since none of the selected agencies
could independently meet all of the Federal Government's payroll needs,
a partnership model has been put in place to strengthen the capabilities
of the Providers overall. Partnership arrangements have been negotiated
between DFAS and the GSA as well as NFC and the NBC. Those agencies
no longer continuing to provide payroll services have been aligned
with and will migrate to one of the Partnerships.
In addition to consolidation, OPM has also led the effort to standardize
payroll delivery. A cross-agency Standardization Action Team (SAT)
was formed to analyze opportunities to standardize and simplify payroll
processing and to identify other areas where improvements are necessary.
The SAT identified over 80 opportunities for standardization which
are currently being worked by OPM. A standard set of baseline services
are being offered by the Partnerships and additional standardization
opportunities will be identified and put in place as the Partnerships
adopt migrating agencies best practices.
A Payroll Advisory Council (PAC) has been established to support
and provide advice to the Director of OPM on payroll matters. As
a part of its responsibilities, the PAC will provide strategic direction
for the e-Payroll initiative in terms of achieving the end state
of a single payroll solution and assist in the management and implementation
of standardization and payroll policy. The PAC is comprised of representatives
from the Small Agency Council, the Intelligence Community, the Chief
Financial Officers Council, the Chief Information Officer Council,
the Chief Human Capital Officers Council, and representatives from
the payroll Partnerships.
The e-Payroll initiative will also lead the effort in deciding
upon modern technology solutions for the Partnership operations
going forward. Partnership legacy systems are being used to migrate
non continuing agencies in order quickly reduce the number of redundant
payroll systems and operations. These systems are outdated and will
be replaced by leveraging modern technology solutions.
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Consolidation
Strategy
As the managing partner for the e-Payroll initiative, OPM is consolidating
payroll service providers and monitoring provider performance for
in support of the development of an integrated Human Resources/Payroll
solution. The key elements of the strategy are:
- Stage an internal competition among interested payroll providers
to determine the best outcome for Federal agencies;
- Allow human resource and payroll experts from agencies surrendering
their payroll operations to develop the detailed selection criteria
and then serve as evaluators of the proposals submitted by agencies
wishing to continue as consolidated service providers. A Consolidation
Action Team (CAT) was established for this purpose by the e-Payroll
Project Manager;
- Align and migrate agencies no longer furnishing payroll services
with one of the selected consolidated providers;
- Encourage provider agencies to form alliances and partnerships
in developing proposals for consideration.
Schedule
Target Date
 |
Activity
|
Status
|
Nov 2, 2002
Nov 2, 2002 |
Payroll Provider Kickoff Conference |
Completed |
| Dec 5, 2002 |
Customer Education Forum |
Completed |
| Jan 15, 2003 |
Announcement of selected providers |
Completed |
| Feb 3, 2003 |
Confirmation of assignment of Customers to Providers |
Completed |
| Feb 10, 2003 |
Customer migrations begin |
Completed |
Mar 1, 2003 -
Apr 30, 2003 |
Customer Entrance Sessions with OPM, Customers
and Providers |
Completed |
| Sep, 2004 |
Customer migrations complete |
On Target |
Customer Migration
Customer
|
Alignment
|
Complete |
| American Battlefield Monuments Commission |
GSA |
|
| Broadcasting Board of Governors |
TBD |
|
| Department of Energy |
DoD, DFAS |
|
| Department of Health and Human Services |
DoD, DFAS |
|
| Department of Homeland Security |
USDA NFC |
1/4  |
| Department of Labor |
USDA, NFC |
|
| Department of Transportation |
DOI, NBC |
1/4 |
| Department of Veterans Affairs |
DoD, DFAS |
|
| Environmental Protection Agency |
DoD, DFAS |
|
| Federal Bureau of Investigation |
USDA, NFC |
|
| Federal Energy Regulatory Commission |
USDA, NFC |
|
| Federal Reserve Board |
Exempt |
|
| National Aeronautics and Space Administration |
DOI, NBC |
|
| National Science Foundation |
DOI, NBC |
|
| Nuclear Regulatory Commission |
DOI, NBC |
|
| Office of Thrift Supervision |
USDA, NFC |
|
| Railroad Retirement Board |
GSA |
|
| Tennessee Valley Authority |
TBD |
|
GSA |
Standardization
Strategy
A Standardization Action Team (SAT) composed of human resources,
compensation, and payroll experts from various agencies identified,
reviewed and analyzed standardization opportunities. The Joint Financial
Management Improvement Program (JFMIP) Interagency Study, conducted
for OMB, served as the baseline for this analysis. This baseline
was then augmented with additional improvement areas provided by
agency payroll operation and systems specialists and the OPM staff.
A total of 87 standardization targets of opportunity were identified
by the e-Payroll SAT. In addition, a sub-group with representatives
from Department of Defense, Veterans Affairs, and the Department
of Health and Human Services (DHHS) was established to identify
standardization opportunities for the special pay authorities provided
to VA employees in health care occupations under title 38, United
States Code authorities.
As a follow on to the SAT, the Payroll Advisory Council (PAC) approved
the formation of a focus group to provide recommendations for previously
identified payroll service delivery standardization opportunities.
The focus group was comprised of members from various organizations
with a variety of backgrounds including payroll policy, operations,
information technology and others. The group was responsible for
developing final recommendations and vetting them thought their
respective agencies and organizations before presenting them to
the PAC. A final report of recommendations was approved by the PAC
and will be submitted to the Director of OPM for final approval.
Standardization must be considered a life-cycle activity requiring
ongoing discussion and analyses that will lead to stages of multiple
changes in statutes, regulations, agency policies and procedures,
and collective bargaining agreements.
Schedule
Target Date
|
Activity
|
Status
|
| Jun 15, 2002 |
Review and identify changes needed in major
HR and payroll policies |
Completed |
| Jul 15, 2002 |
Submit final draft revisions to OMB |
Completed |
| June 2003 |
Standardization Focus Group Creation |
Completed |
| February 5, 2004 |
Focus Group Report Out to the PAC |
Completed |
| April 2004 |
Submit Final Report to the Director |
On Target |
The e-Payroll team is currently developing a schedule for going
forward with the standardization efforts along with coordinating
these efforts within the OPM program offices and major stakeholders.
The schedule will include the development of payroll guidance, payroll
regulation, legislation, process steps, and target dates.
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Overview
Overview
Feature