|
January 15, 2003 New
E-Payroll Program Estimated to Save More Than $1 Billion
OMB Directs Agencies
to Consolidate from 22 Providers to Two Payroll Partnerships
Washington,
DC – Today the Office of Management and
Budget (OMB) and the U.S. Office of Personnel Management (OPM)
announced the selection of two payroll partnerships to consolidate
federal payroll systems and save the federal government an
estimated $1.2 billion over the next decade. A copy of the
memo that issues guidance for agencies on how to proceed with
payroll consolidation follows this release.
“Twenty-two payroll providers running
22 different systems is all too typical of government when
no one feels accountable. President Bush has told his appointees
that he holds us responsible to leave government better run
than we found it, and today’s reform responds to his
instruction to the benefit of both government workers and
taxpayers,” said OMB Director Mitchell E. Daniels, Jr.
“E-Government is about making the
government efficient and responsive to American citizens.
The e-Payroll initiative saves taxpayer money through consolidating
IT investments and eliminating costs of duplicative payroll
systems,” said Mark Forman, Associate Director of E-Government
and Information Technology at OMB.
As the managing partner of the e-Payroll
initiative, OPM conducted an internal competition and recommended
that two payroll partnerships be formed – one partnership
between the Defense and Accounting Service (DoD) and the General
Services Administration and the other between the National
Finance Center (USDA) and the National Business Center (DOI).
DOD and USDA are currently two of the largest government providers
of payroll processing.
Currently, the 22 federal payroll providers
serve anywhere from 1,250 to 680,000 government employees
at an average annual cost of $77 per employee. Last February
the President’s budget identified an objective of consolidating
the current payroll providers into two by FY 2004. With the
selection of two payroll partnerships, the payroll processing
will be consolidated into four agency providers for the entire
federal government.
Pursuant to Section 5113 of the Clinger-Cohen
Act of 1996, OMB evaluates the management practices of Executive
agencies including performance and IT investments. To ensure
timely and effective results for e-Payroll, the memo issues
agencies the following guidance:
- DoD, GSA, DOI and USDA will proceed
with payroll processing migration, consolidation to two
processing partnerships, and standardization under OPM’s
leadership
- Agencies who receive payroll processing
from DoD, GSA, DOI or USDA will remain with those providers
through September 30, 2004.
- Agencies identified to migrate to a
new provider must confirm selection of a payroll processing
provider with OPM no later than February 3, 2003.
- Agencies other than DoD, GSA, DOI and
USDA should not spend FY 2003 funds for modernization of
payroll processing unless it is an IT investment that will
facilitate the agency migration to one of the payroll providers.
E-Government is an integral part of the
President’s Management Agenda to make it easier for
citizens and businesses to interact with the government, save
taxpayer dollars and streamline citizen-to-government transactions.
A copy of the President’s E-Government strategy, which
includes information on each of the E-Government Initiatives,
is available on the OMB Web site at www.omb.gov.
Back
to top>
|