MINUTES

ICASS EXECUTIVE BOARD MEETING

Library of Congress

Thomas Jefferson Building, Whittall Pavilion

Washington, DC

10:00 AM

March19, 2015

Principals in Attendance:

AgricultureDaryl Brehm

Commerce Judy Reinke

DefenseDon Washington

Health and Human ServicesJenny Parker

Homeland SecurityMark Koumans

Intel CommunityMark Jackson

JusticeJolene Lauria-Sullens

Library of CongressBeacher Wiggins

Office of Management and BudgetAmanda Hill (Acting)

Peace CorpsJoseph Hepp

Social Security AdministrationMilt Beevers

StateAlaina Teplitz

TreasuryGordon McDonald

USAIDJeff Kramer (Acting)

  1. Welcome

Beacher Wiggins,Director, Acquisitions and Bibliographic Access, for the Library of Congress, welcomed IEB members and briefly explained the significance of the Whittall Pavilion meeting room’s musical theme. He then introduced Ms. Carol Lynn WardBamford, music specialist, who provided a brief history of and exhibited some of the rare antique musical instruments displayed in the room.

  1. Opening Remarks and Welcome of New Member:

Alaina Teplitz (Department of State), Chair of the ICASS Executive Board (IEB), thanked the Library of Congress for hosting the meeting and the introduction to the significance of items on display. She also introduced and welcomed new USDA Executive Board member, Daryl Brehm.

  1. Adoption of Minutes from December 18, 2014 IEB Meeting

Ms.Teplitz asked for approval of the minutes of the IEB meeting heldDecember 18. There were no questions or comments about the minutes, and they were adopted without objection.

  1. ICASS by the Numbers

Peter Hogan (ISC Deputy Director) noted that this presentation has been given to the Executive Board since 2008 to show the breakdown of ICASS costs and how they have changed over the years. Focusing on key elements impacting the ICASS budget, i.e. personnel growth, changes in programs within ICASS, and differences between controllable and non-controllable costs, Mr. Hogan walked through the slides to explain the changes. He noted that to keep the charts from becoming unwieldy from their last showing, years 2000-2003 were dropped and the slides were updated to include final 2014 and initial 2015 data.

Mr. Hogan explained some of the more notable increases in ICASS costs, beginning with the 18.7 percent increase in 2008. The increase that year was driven by the advent of the cost of Kabul guards in ICASS, plus a need to bill agencies for accumulated losses in the exchange rate set-aside fund within the ICASS working capital fund. Two years later, in 2010, the 17.4 percent rise was driven by an increase in that same Kabul guard contract, the start-up of American Comparability pay for ICASS US direct hires (USDH), and an increase for infrastructure needs in the regional bureau budgets. Larger than average percentage increases in 2012 (17.1%) and 2014 (19.1%) were driven almost entirely by the advent of Baghdad costs in ICASS in the first year, and the addition of Iraqi consulates in the second. Non-Iraq increases related to LE Staff wages and furniture pool implementation also impacted 2014. Finally, in 2013, the increase was driven by the costs of Residential Guards and Mobile Patrol, which were brought into ICASS for the first time that year.

Another factor impacting costs, Mr. Hogan advised, was the growth in customers from just over 17,000 in 2004 to almost 23,000 in 2015. Showing a growth chart comparing customers to ICASS service providers, he explained that the USDH service provider population has remained fairly static compared to increased customer growth. For the years displayed, USDH service providers increased in 2010, 2011, and 2012 related to State’s Diplomacy 3.0 initiative, which added substantial numbers of State program staff, as well.

After briefly comparing differences between State and the other agencies for both customer population and total invoice costs, he directed everyone’s attention to the major cost components: OBO leases, local guard program, domestic costs in ICASS, and regional bureau costs. He noted the importance of understanding the various cost drivers in ICASS, pointing out the significant eight-fold increase in local guard program costs during the period covered by the presentation. These guard costs rose from just over $100 million in 2004 to more than $800 million in the current year, faster than any other component.

After providing details about the domestic cost components, Mr. Hogan moved onto regional bureau costs, breaking those costs into two elements: controllable and non-controllable. He explained that the latter were costs that were part of the operating environment where managers have less control, including State-USAID consolidation, FSN wage annualization, exchange rate fluctuations, the costs of moving onto a NEC, and overseas inflation. He noted that the controllable costs were the focus of many cost savings initiatives, e.g. outsourcing motor pools, optimizing inventories in the warehouse, and reducing utilities. Mr. Hogan cautioned that if growth in the customer population begins to flatten out, then it will be more important to increase efforts with cost savings initiatives.

Several concerns were raised about increasing FSN salaries to a higher percentile and its impact not only on agency ICASS invoices but an agency’s operating budget, balanced by the importance of retaining staff in markets where businesses are offering higher wages, or recruiting the most qualified individuals for your jobs.

(Please see Mr. Hogan’s PowerPoint presentation which is attached below.)

  1. Service Provider Update - OCCI

Jennifer Bonner (Service Provider Rep.)provided an update on the progress of the Overseas Cost Containment Initiative (OCCI) for the Building Operations and General Services lines of business using charts which identify average growth trend lines for these areas. She noted that they were seeing some encouraging trends, with Building Operations slightly below its nine percent growth trend line and General Services falling below that service’s 14 percent trend line. For General Services, she advised that if the 14 percent growth trend line continued, budgeted costs would have exceeded $800 million, rather than $660 million from the two percent increase over FY2013. While these numbers are based on initial budgets, she noted that an updatewill be ready once final budgets are submitted, but assured members that the regional bureaus are encouraging their posts to take a hard look and come in under target where appropriate.

Ms. Bonner reported that nearly 200 posts have submitted OCCI plans containing 930 projects, e.g., Embassy Manila’s reductionof expendable supplies and vehicle parts stock, and Embassy San Salvador’s project to reduce after-hours usage of motor pool. She reported that the regional bureaus will continue to work with posts to ensure that plans include goals that are specific, measurable, and time-bound. She explained that as the fiscal year progresses, posts may edit their plans sosome of the numbers may change, but she felt it was a great start. She also expressed her appreciation of M/PRI’s job partnering with the regional bureaus to train posts.

Displaying some of the metrics collected for services, she explained that the ratio of customers-to-service provider remains around 18-to-1, customer satisfaction continues to be high based on data from the annual ICASS Customer Satisfaction Survey and the transaction level data from eServices, and posts meeting of the uniform service standards ranks at 65 percent of the time.

In closing, Ms. Bonner stated that the service provider anticipates measurable cost containment resulting from the concerted efforts of Washington and the field to identify, implement, and track progress on a number of cost containment projects.

  1. Policy Review and Vote – Evacuation Policy

Janet Buechel, IWG Chair, introduced the new Evacuation Policy developed in response to the increasing frequency of overseas events which necessitate the withdrawal of personnel from a post. Such events, she noted, come with a lot of questions from customer agencies on why they are still receiving an ICASS bill for a post which is under evacuation, while service providers want to know how to share the costs of ICASS during these drawdown periods.

Based on experiences from evacuatedposts, a draft policy was prepared and vetted through the ICASS Working Group’s (IWG) Policy Committee. It was then submitted for full IWG review at the March 11 meeting and was approved.

Ms. Buechel provided greater detail on costs when there is an evacuation, and answered a question as to why an agency might receive two invoices for the same post. She explained that even though the American personnel may depart a post, the mission is still there and its associated costs must be paid (i.e., leases, utilities, security, and LE Staff salaries) to ensure that the platform is there when staff returns to post. In some evacuations, some staff members may move to another post in the region to continue their work, while others return to their domestic headquarters offices. For those agencies that move to an overseas location, services received from the “hosting post” will be billed, thus generating a second invoice during a time of evacuation.

Though evacuations are usually short-term, Ms. Buechel advised, recent events have seen them extend for longer periods but that after 180 days it is no longer an evacuation and additional decisions must be made. Consequently, one major agreement coming out of the policy review process was that the regional bureaus will periodically meetwith affected agencies to review what is included in the budget for posts in a long-term evacuation. The service provider will look at what stays in the budget, and what could come out, knowing that when personnel return to post, there will be new startup costs. Asked about whether State is provided contingency funds to reopen a post, Ms. Buechel said in some circumstances the Department may receive funds, but not in every case. For example, in Libya, the Department did get special funding and therefore paid the lion’s share of the reopening costs for Tripoli, but DoDalso paid a large amount.

OMB raised a question about transparency vis-à-vis the other agencies when State requests funding to reopen a post – how do the agencies know what State has requested and what they (the agencies) might need to fund. Ms. Teplitz responded that such requests are done on a case-by-case basis and sometimes Congress specifically identifies some of the funding for other agencies. Such cases are fairly rare and typically occur when we have totally suspended operations in a particular country (e.g., Sanaa, Tripoli or Damascus). In those situations, the major costs relate to facilities and security, most of which is not handled in ICASS.

Mark Koumans (DHS) raised a question about the linkage of the NSDD-38 process with the new policy, noting that they were in the process of withdrawing from a post when operations were suspended. Ms. Buechel noted that the new policy included language that allows an agency to withdraw from a post during an evacuation if they believe they no longer have a clear mission at that post.

The policy was submitted for a vote and approved unanimously.

  1. FY2015 Budget Update

Duane Butcher, Bureau of Budget and Planning, provided an update on the FY2015 ICASS budgetnoting that the final target-setting process began the week before and the goal is to have the final target hearing with the IWG Budget Committee in late April. He said that there would also be separate informational prehearings before the final hearing to vote on the targets.

For FY2016, he advised that there is talk on the Hill about lifting the budget caps created in the Budget Control Act, but there would be significant challenges in doing so. The draft House Resolution unveiled earlier that week held to the caps, though Overseas Contingency Operations (OCO) funding was excluded. Though Congress said that they want to have a joint resolution on April 15th, he expressed doubts that it would happen and opined that FY2016 would start under a CR again.

  1. ICASS Service Center (ISC) Update

Richard Boohaker (ISC Director)reported on recent activities of the ICASS Service Center. He advised that the recently completed ICASS Customer Satisfaction Survey had reached its highest participation rate (73.8%) to date, with just over 57,000 responding, which surpassed last year’s record of 55,630. He noted that overall satisfaction scores continued to rise on the 5 point scale from 4.09 in 2013/14, to 4.16 in 2015. (N.B. The 2015 overall score was later corrected to read 4.12, not 4.16.)

Mr. Boohaker advised that ISC staff continues its training efforts for service provider staff and customer agencies. Staff recently participated in workshops for EAP HROs and WHA Management Officers, where the primary focus was on the importance of ensuring the collection and reporting of ICASS workload data that is accurate, timely and complete. Mr. Boohaker and Deputy Director Peter Hogan participated in the Undersecretary for Management’s Winter Management Webinar, where they reiterated those same pointsof ensuring accurate data. He also reported on other ISC’s trainingefforts, including webinars for post service providers, Councils and Budget Committees which are timed to the budget cycle activities at post, the provision of basic ICASS orientation training specific to customer agencies, i.e. CDC and DoD, and special topic webinars, i.e. “Managing with the Furniture and Appliance Pool (FAP) Data Model”designed for FMOs, GSOs, and LE Staff who manage the furniture and appliance pool program and are responsible for property management and warehouse operations.

In closing, Mr. Boohaker reported on recent budget activities, noting that the new ICASS 4.0 software performed very well throughout the FY 2015 Initial Budget process, the completion of the budget score-carding review, with scores to be released to the posts that week, and noted that FY 2015 Initial (informational) Invoices have been issued to customer agencies.

He also announced that this would be his last IEB meeting as the ISC Director, with his last day in the office May 22. He informed members that Sherrie Marafino will replace him when he departs for the Management Officer position in Erbil, Iraq. Mr. Boohaker remarked that the work had been as challenging as it was rewarding. He then turned to Trish Garate, Team Leader, ISC Reimbursements to introduce an action item regarding Agencies in Delinquent Status.

Ms. Garate explained that it was policy for any unauthorized invoices past the 90-day authorization point to be brought to the IEB for decision on next action. She reported that there were two invoices for a total of $5,000; putting it into perspective, she noted that ICASS is a $3 billion program. She mentioned that she has been in contact with the entities, and they are working internally to get their invoices authorized. Consequently, the ISC is comfortable in recommending to the IEB that they grant these two entities an additional 30 days to authorize their invoices.

The 30-day extension was submitted for a vote and approved unanimously.

  1. ICASS Working Group Report

Janet Buechel, IWG Chair, provided an update on the activities of the IWG and its various Standing Committees.

She advised that the Awards Committee reached agreement on a change in the annual ICASS awards. The most significant change affects the Outstanding Leadership Award (OLA) which carried a $10K prize; it will now be an award of up to $7,500 and the Committee may now award multiple OLAs of varying amounts, rather than just 1st & 2nd place. She explained that the Committee is also interested in emphasizing the outstanding Council Chair and outstanding DCM awards and will be doing more outreach to encourage nominations for these awards. She asked the IEB members for their assistance in remindingtheir representatives to take the time to submit nominations.

Ms. Buechel reported that the Policy Committee has been very busy on a wide range of issues, including: a new policy to address ICASS implications of domestic employees who telework from overseas (DETOs) which will be finalized when the larger State Department policy has been finalized; reviewing thenew policy regarding the handling of ICASS budgets and workload counts during post evacuations; and, following up on action items from the IEB Site Visits. She provided board members with a status for each action item, including arranging to have OBO address the June IEB meeting to discuss the various issues that arose during the site visits and to brief on current OBO issues of interest to the interagency group. Mark Koumans (DHS) asked that the term “DETO” be changed to “DETA” (“abroad” vice “overseas”) to accurately reflect such teleworking arrangements in Canada and Mexico, for example, if that is the policy’s intent.