The partnership with SEED provides NBC an opportunity to give back to the community by fostering student interest in American history, cultural and natural resources, conservation, public service and financial and business practices. It also gives both organizations opportunities to explore avenues for joint programs, activities, and initiatives that enhance learning experiences and engage students in understanding the ongoing operations of their government. Students will participate in existing NBC programs and help design joint activities for next year. I am excited about the opportunity to form a meaningful relationship with an organization whose focus is to provide innovative educational opportunities, and that gives back to the community we serve. I want to thank NBC managers Susan Leonard and Vivian Clark for making this SEED partnership the success story that it is!

NBC continues to expand, both as an organization and individually. Our Chief Information Officer, Bob Scheibel, was recently asked by the Department (DOI) to assume full operational oversight of information technology for the Office of the Secretary. This is in addition to his NBC roles and is an enormous personal undertaking. Along with this, one of Bob's key staff, Matthew Stewart, was asked to assume the responsibilities as the Office of the Secretary Chief Technical Officer. Charles Nethaway was asked to tackle the Chief Architect job. We are honored to have the opportunity to provide this type of critical leadership for Interior. It's gratifying to know that NBC talent is being increasingly recognized and tapped to lead DOI initiatives.

Brian Holly continues to work with NBC, on detail from the Department of Justice, as the Department's Acting Chief Appraiser. Brian, Karen Burke, Maggie Torres-Wilking, Jen Pfancuff, and the entire NBC Appraisal Services Transition Team has been feverishly working to get the 80+ appraisers from over 28 locations across the country integrated into our NBC culture, IT network, systems, and business practices. Brian is leading the effort to develop standard appraisal policies and procedures, as well as elevate the professional standards and career path for Interior's appraisers. His report to Congress is in the final review stages and will clearly illustrate that the consolidation is exceeding all expectations. We are achieving greater appraisal independence and objectivity, higher standards of quality and professionalism, and increased business efficiencies. The seven Acting Regional Supervisory Appraisers share workforce resources, utilize an NBC-developed, state-of-the-art electronic appraisal request system (ARRTS), and will soon be completely migrated to the NBC e-mail system for seamless communication and collaboration. Sharon Williams and her top-notch E-Applications staff, led by Linda Wenri, designed a sleek website that will serve as a one-stop desktop work station for the appraisers, as well as a source of information for customers and stakeholders. Through the dedication and single-minded focus of all the people involved, this has been a complete success story. Not only has the success been appreciated by the DOI's top leaders, but by some of our key supporters on Capital Hill, as well.

The entire staff of NBC's Federal Personnel Payroll Systems and Services Directorate continue to earn the enormous honor they received when chosen as one of the Federal government's four payroll service providers. To date, they have successfully led the migration of over 4,700 government employees to NBC's payroll system. By summer's end, we are scheduled to complete the migration of NASA's 19,000 employees. During FY2005, we bring the remainder of the Department of Transportation (DOT) onboard (about 60,000 employees). While this might sound simple, this is a massive project unlike anything the Federal government has undertaken in the past. It required the NBC team to set out a project blueprint for success, coordinate milestones and resolve issues with the managing partners - the Office of Personnel Management (OPM) and OMB. It took months of collaboration on complex standardization issues with the other three providers; and most importantly, it required the Team to negotiate requirements, budgets and milestones with their four new customers: the Department of Transportation, the National Aeronautical and Space Administration, the Nuclear Regulatory Commission, and the National Science Foundation. Without missing a step, the DOI team continued providing the exceptional customer service levels for which it has been known with other DOI clients as well as the 30 other government agencies it currently supports. OPM has repeatedly singled out the DOI team among all providers for their systematic and responsive approach to the e-Payroll initiative.

But the e-Payroll project is just the beginning. NBC is busy preparing responses to government-wide Requests for Information on both the Human Resources and Finance Lines of Business initiatives. OMB and OPM are sponsoring these initiatives. They continue the government's consolidation efforts of key business systems and practices in order to simplify, unify, and streamline how we do business. If selected, NBC could ultimately provide significantly more finance and human resources support for the entire Federal government. And on the home front, we are preparing to submit a proposal to host the Financial and Business Management System (FBMS) and look forward to receiving that work.

NBC continues internal efforts to achieve greater organizational efficiency begun through the NBC reorganization in early FY 2004. By consolidating business functions such as acquisition management, human resources, information technology, and budget and finance, our managers now have greater workforce transparency, a clearer line of sight for revenue and expense, and the ability to monitor increased accountability. Most recently, we closed the DC Finance shop in order to consolidate the work in Denver and strengthen the operation. I want to thank Sherry Morrissette, Acting Associate Director for Budget and Finance, for the professional manner in which she handled the closure, and I also want to thank Linda Mayfield, Wanda Pratt, Shirley Spruill, and Antoinette Warren for making the courageous transition to the Denver office. I know each of you will be warmly received by the staff already in Denver. Let us know if there is anything further we can do to make your transition a smooth one. Additionally, despite continued efforts across all fronts, I am still not satisfied with communication in NBC and will be meeting personally with a cross section of people to continue to look for ways to improve communication and enhance our ability to work cooperatively and collaboratively.

The annual fire season has begun in earnest and already the severe drought has wrecked havoc in the West. Exacerbating the situation, both Interior and the Forest Service recently took the extreme measure of canceling the contract for wildland fire airtanker support due to serious safety concerns. While alternative firefighting strategies have been adopted, NBC's Aviation Management Directorate is geared up for a long, hot, treacherous fire season.

But that isn't the only thing that's hot around here. NBC heated up pressure on all NBC and Office of the Secretary employees to meet their responsibilities for completing IT Security Training. This is something we don't negotiate and we don't take lightly. IT Security is a critical part of our business culture. We monitor training statistics on a weekly basis and continue pressing managers to achieve 100% compliance. We fully intend on disconnecting any employee who fails to complete the mandatory training, as we will not compromise the integrity of our critical information technology infrastructure.

Let me close by thanking the 1,200+ NBC staff in 24 States across this great country for making FY 2004 one of continued excitement, energy, outstanding achievement, and unsurpassed collaboration. Each of you continues to astound me with your talent, your personal drive, and your enduring passion. Because of you this organization continues to expand, to shine, and to bring pride to the Department. I encourage you to continue the strong partnerships you have forged with our contract staff, with private industry, with other Federal agencies, and with our Departmental colleagues. Together we have built a strong foundation and guiding legacy for the future. Thank you.