Detailed Information on the
Saint Lawrence Seaway Development Corporation - Operations and Maintenance Assessment

To develop a performance rating system/index related to the U.S. Seaway infrastructure to assist in determining structural conditions.

Measure: Results of annual independent audit of the Corporation's financial statements.

Explanation:As a government corporation, the SLSDC is subject to an annual independent audit of the Corporation's financial statements, with concurrence by the Department's Office of Inspector General on the auditor's report. The annual auditor's report opines on the agency's budget and financial reporting and serves to inform SLSDC management of any deficiencies or weaknesses in internal controls identified in the audit that require management intervention. The performance result is reported following the completion of the annual audits.

Measure: Number of vessel transits through the Saint Lawrence Seaway.

Explanation:Through its trade development activities as well as operational improvements to sailing dimensions and lockage efficiencies, the SLSDC seeks to attract the highest percentage of the world's commercial fleet possible, which in turn, produces increased global trade to and from North America. To support this objective, the SLSDC annual target is to increase commercial vessel transitts each year by one percent from a baseline established during the year 2000 navigation season. Each additional commercial vessel transit through the Seaway produces approximately eight jobs, $225,000 in personal income, and $175,000 in business revenue within the U.S. Great Lakes region. Performance results are reported internally on a daily basis and externally on a monthly and annual (calendar year) basis.

Measure: Hours of system disruption due to lock equipment malfunction at the U.S. locks in Massena, N.Y.

Explanation:This measure is a sub-component of the larger "system availability" measure. Of all the factors that can cause system downtime, the factor most influenced by SLSDC programs and activities is lock equipment malfunction. The SLSDC aggressively challenges its leadership and workforce with an annual target of zero hours of vessel transit disruption due to lock equipment malfunction during each navigation season (the Seaway is closed during the winter). This measure is reported on a weekly, monthly, and annual (calendar year) basis.

Measure: Percentage of U.S. Seaway sector commercial availability during each navigation season, including the two U.S. locks in Massena, N.Y.

Explanation:The SLSDC strives to ensure that the U.S. portion of the St. Lawrence Seaway, including the two U.S. locks, are available 99.0% of each navigation season. Delays are measured in hours and minutes for weather, vessel incidents, water level and rate of flow, and lock equipment malfunction and reported on a weekly, monthly, and annual basis.

Measure: Percentage of SLSDC administrative overhead expenses as a percentage of total operating expenses, excluding depreciation and imputed expenses.

Explanation:This measure was originally developed in during the 1970s when SLSDC was a user-fee funded government corporation. Althought the SLSDC did not receive appropriated funding at that time, the Congress examined the Corporation's administrative cost ratio relative to the administrative cost ratio of comprarable organizations in the private sector and determined, in conjuntion SLSDC leadership, that a 25 percent annual target for administrative overhead would be a sufficiently aggressive objective to help ensure that budgetary resources are principally dedicated to core operations and the maintenance of capital assets. Administrative expenses include executive management and administration of the Corporation such as legal, policy, civil rights, accounting, procurement, human resources, information technology, and related administrative support services.

Measure: Percentage of SLSDC completed first transit inbound ocean vessel safety and compliance inspections.

Explanation:Prior to the inception of the Seaway inspection program, foreign flag vessels experienced numerous delays at the U.S. locks to accommodate USCG-required safety-related inspections, as well as ballast water management activities. Vessel inspection is now performed in Montreal by SLSDC inspectors to eliminate duplicative inspections, allow for a seamless and efficient transit of the Seaway, and provide a better location for repair resources, if required. Performance results are reported weekly, monthly, and annually.

Is the program purpose clear?

Explanation: The Saint Lawrence Seaway Development Corporation (SLSDC) has statutory responsibility for the operations and maintenance of the U.S. portion of the St. Lawrence Seaway, including the two U.S. Seaway locks in Massena, N.Y. The SLSDC coordinates its activities with its Canadian counterpart, The St. Lawrence Seaway Management Corporation (SLSMC), particularly with respect to rules and regulations, the Tariff of Tolls, overall day-to-day operations, ship inspections, traffic management, navigation aids, safety and environmental programs, operating dates, and trade development programs.

Evidence: SLSDC's enabling statute (Saint Lawrence Seaway Act, approved May 13, 1954, as amended through September 30, 1994), provides the SLSDC with direct responsibility for the construction, operations, and maintaining of the U.S. portion of the St. Lawrence Seaway. It also clearly directs the agency to conduct joint operations of the Seaway with its Canadian counterpart. Source(s): Saint Lawrence Seaway Act, May 13, 1954

Does the program address a specific and existing problem, interest, or need?

Explanation: Created in 1954, the SLSDC was charged with the construction, operations, and maintenance of the U.S. assets of the binational St. Lawrence Seaway to address the need of connecting the Atlantic Ocean with the five Great Lakes, creating a new commercial transportation route for ocean vessels to and from the U.S. and Canadian heartland of North America. Prior to the opening of the St. Lawrence Seaway, the principal modes of transportation to the Great Lakes region were rail, road, and barge via the Erie Canal. Today, the St. Lawrence Seaway continues to provide a waterborne transportation route into the region for both U.S. and Canadian interests, moving more than 40 million metric tons of cargoes each year, including steel, grain, iron ore, and coal. There is strong industrial and political support for the continuation of waterborne commerce on the St. Lawrence Seaway, which has been documented in competitiveness and cost savings studies as vitally important to the U.S. and Canadian economies.

Evidence: The original intent for the Seaway was detailed in a questions and answers document prepared by the SLSDC for the Senate Committee on Foreign Relations in June 1960. Additionally, recent studies found that the Seaway remains the lowest cost route for moving numerous bulk and general cargoes to and from the Great Lakes region, providing end users with a low-cost, environmentally-friendly transportation alternative to rail and truck. One study concluded, "Without this system, it is unlikely that these industries would have initially located in the Great Lakes area, nor could they maintain the current operations at competitive costs." Source(s): SLSDC Responses to Questions for the Record, Senate Committee on Foreign Relations, June 1960, Page 3, Question 14; 2002 Competitiveness Study, Research and Traffic Group, January 2003; Economic Impact Study of the Great Lakes St. Lawrence Seaway System - Transportation Cost Savings, Martin Associates, August 2001, www.greatlakes-seaway.com/en/pdf/impact_costanalysis_en.pdf

Is the program designed so that it is not redundant or duplicative of any other Federal, state, local or private effort?

Explanation: The SLSDC was created by the Congress as a government corporation and the U.S. counterpart to the Canadian Seaway entity. The two Seaway entities share binational jurisdiction and responsibilities for all facets of lock operations, emergency response, vessel traffic control, rules and regulations, and trade development initiatives. Due to the uniqueness of the St. Lawrence Seaway and its binational approach, the SLSDC remains the sole statutory provider within the U.S. Government of these services in the St. Lawrence Seaway.

Evidence: No other Federal, state, local, or private organization has the authority to conduct operations and maintenance of the U.S. portion of the Seaway. The SLSDC's enabling statute provided the agency with unique authorities as a government corporation. In addition, the statute directs the SLSDC to work in cooperation with its Canadian counterpart. This requirement clearly places an international responsibility on the Corporation that is unmatched by any other Federal entity. Source(s): Saint Lawrence Seaway Act, May 13, 1954

Is the program design free of major flaws that would limit the program's effectiveness or efficiency?

Explanation: As a government corporation, the SLSDC utilizes many of its inherent business-like practices to ensure that its operations and maintenance programs are not limited. To ensure agency and program effectiveness, the Corporation has very broad financial powers, including the collection and usage of non-federal revenues. These financial powers would be further enhanced with the proposed re-establishment of U.S. Seaway commercial tolls receipts, which would provide the agency with greater financial autonomy. Additionally, the SLSDC's recent migration to an Automatic Identification System (AIS) vessel traffic control system has improved vessel traffic control efficiencies.

Evidence: The Corporation's enabling act provides in Section 4 (a)(9) that the Corporation, "Shall determine the character of and a necessity for its obligations and expenditures, and the manner in which they should be incurred, allowed and paid, subject to the provisions of law specifically applicable to Government Corporations." Also, the SLSDC improved its vessel traffic control operations with the implementation of AIS technologies which provide the agency with greater safety, security, and efficiency of operations. Source(s): Saint Lawrence Seaway Act, May 13, 1954; Seaway Automatic Identification System (AIS) Brochure, www.greatlakes-seaway.com/en/pdf/ais_brochure_en.pdf

Is the program design effectively targeted so that resources will address the program's purpose directly and will reach intended beneficiaries?

Explanation: Since the Seaway opened in 1959, the SLSDC has been effective in ensuring that its resources, both financial and human capital, work cohesively toward the common goal of providing a safe, efficient, secure and reliable transportation route. Through customer surveys, customer meetings, and performance results, the SLSDC is able to track the effectiveness of its programs and activities. These results have proven the Corporation's effectiveness and efficiency.

Evidence: The SLSDC's financial management practices and human capital plans ensure that all agency resources are properly aligned to our key core mission goals. In addition, the agency's efficiency measure of keeping administrative overhead costs to 25 percent or lower ensures that operations and maintenance programs receive the highest level of funding possible. Finally, customer survey results confirm the program's effectiveness. The 2004 customer survey found overall customer satisfaction as favorable, especially in the area of vessel inspections which scored an overall rating of 4.6 out of 5.0. Overall survey results achieved a mean score rating of 4.1 out of 5.0. Source(s): SLSDC Comptroller's Manual, September 2004; SLSDC Workforce Plan, FY 2003-2007, January 2005; SLSDC/SLSMC 2004 Customer Satisfaction Report -- Survey of Agents, Owners, and Operators

Does the program have a limited number of specific long-term performance measures that focus on outcomes and meaningfully reflect the purpose of the program?

Explanation: The SLSDC has long-term measures related to the operations of the Seaway, most notably for the number of commercial vessel transits moved through the waterway. Many of the SLSDC's historic long-term goals have developed over time into annual goals once the long-term goals were achieved. For example, the SLSDC's measurement of system availability was once a long-term goal seeking growth to 99 percent availability; in recent years, this goal was converted to an annual goal of 99 percent once the goal was achieved consistently over a number of years. In addition, there are several annual goals that serve as long-term "standards", including the measurements related to clean financial audits and performance of ocean vessel safety and compliance inspections.

Evidence: The SLSDC's strategic and performance plans detail all measures, including the long-term measure related to transits (see "Measures" tab for details). Transits not only result in higher usage and capacity rates but also produce increased tonnage levels having a direct and positive economic impact on the Great Lakes region of North America. Source(s): SLSDC FY 2004/2005 Strategic Plan, January 2005, www.greatlakes-seaway.com/en/pdf/slsdc_stratplan.pdf; SLSDC FY 2004/2005 Performance Plan, January 2005

Does the program have ambitious targets and timeframes for its long-term measures?

Explanation: The SLSDC's strategic and performance plans detail its various long-term measures, with ambitious targets, related to Seaway operations that capture the effectiveness of the program.

Evidence: The SLSDC's strategic and performance plans detail all measures, including the principal long-term outcome measure related to transit levels (see "Measures" tab for details). Source(s): SLSDC FY 2004/2005 Strategic Plan, January 2005, www.greatlakes-seaway.com/en/pdf/slsdc_stratplan.pdf; SLSDC FY 2004/2005 Performance Plan, January 2005

Does the program have a limited number of specific annual performance measures that can demonstrate progress toward achieving the program's long-term goals?

Explanation: All SLSDC annual performance measures work directly toward the common agency and systemwide goal of providing a safe, reliable, secure and efficient waterway and lock system, and serve as long-term "standards". Delays to shipping can ultimately result in commercial users seeking alternative modes of transportation. Annual goals with direct impact on the long-term goal include ocean vessel safety and compliance inspections, system availability and lock availability, with supporting management goals that include low administrative expenses and clean financial audits. SLSDC influences these measures through long-term capital planning and consistent facility maintenance and investment.

Evidence: The SLSDC's strategic and performance plans detail all annual measures (see "Measures" tab for details). Source(s): SLSDC FY 2004/2005 Strategic Plan, January 2005, www.greatlakes-seaway.com/en/pdf/slsdc_stratplan.pdf; SLSDC FY 2004/2005 Performance Plan, January 2005

Does the program have baselines and ambitious targets for its annual measures?

Explanation: In each annual performance plan since the early 1990s, the SLSDC has captured baselines for each performance measure and has established targets that reflect progress toward achieving all goals and measures.

Evidence: The SLSDC's strategic and performance plans detail all annual measures (see "Measures" tab for details). Source(s): SLSDC FY 2004/2005 Strategic Plan, January 2005, www.greatlakes-seaway.com/en/pdf/slsdc_stratplan.pdf; SLSDC FY 2004/2005 Performance Plan, January 2005

Do all partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) commit to and work toward the annual and/or long-term goals of the program?

Explanation: The SLSDC's key stakeholder base, which includes Great Lakes/Seaway ports, terminals, freight forwarders, vessel operators and the Canadian SLSMC, all work toward the common industry goal of providing the safest, most secure, most competitive, and efficient waterway to attract new business to the system. The Canadian SLSMC shares many of the same performance metrics on availability, transit growth, and strong fiscal policies. In the area of marketing and promotion, the SLSDC and Canadian SLSMC have developed an industry-wide branding campaign called, "Highway H2O" to ensure that all parties involved work towards the common goal of increased trade with a common message.

Evidence: The SLSDC's strategic and performance plans detail the agency's key goals, which are shared by all stakeholders -- providing a safe, reliable, secure, and efficient waterway. The SLSMC's strategic plan highlights its core mission goals that also work towards the common long-term goals. Finally, the "Highway H2O" initiative, developed and sponsored by the SLSDC and SLSMC, brings together all stakeholders in an "umbrella" marketing organization. Source(s): SLSDC FY 2004/2005 Strategic Plan, January 2005, www.greatlakes-seaway.com/en/pdf/slsdc_stratplan.pdf; SLSDC FY 2004/2005 Performance Plan, January 2005; SLSMC 2004/05-2006/07 Strategic Plan, January 2004, www.greatlakes-seaway.com/en/pdf/slsmc_stratplan_en.pdf; "Highway H2O" Background Brochure and SLSDC/SLSMC Sponsorship Letter, September 2004

Are independent evaluations of sufficient scope and quality conducted on a regular basis or as needed to support program improvements and evaluate effectiveness and relevance to the problem, interest, or need?

Explanation: The U.S. Army Corps of Engineers, as part of its on-going Great Lakes Navigation System Review, concluded in its Reconnaissance Report in 2003 that there was a Federal interest in proceeding with further studies of the Great Lakes and St. Lawrence Seaway System, confirming the continued need for the binational waterway. This conclusion was based on vessel and traffic profiles and projections, economic analysis, and environmental considerations. The Corps also inspects the two U.S. Seaway locks on an "ad hoc" basis to measure the structural stability of the locks. In addition, the SLSDC's annual financial audit, performed by independent auditors and validated by the DOT Office of Inspector General, provides an independent evaluation of the agency's financial management practices and management/internal controls. As part of its ISO 9001:2000 compliance, the SLSDC completes customer surveys every two years to rate Seaway services, evaluate program effectiveness, and gain customer insight and comments on additional areas of improvement.

Evidence: The Corps of Engineers' Reconnaissance Report concluded that there is a Federal interest in further examining improvements to the binational waterway system based on current and projected traffic, economic, and environmental impacts. The SLSDC's annual financial audit is completed by an independent accounting firm, with a validation/concurrence memo from the DOT OIG. In addition, the SLSDC updates its five-year capital maintenance plan annually based on inspections and periodic Corps of Engineers lock assessments based on the Corps' schedule. The SLSDC's ISO 9001:2000 requires the completion of customer surveys and meetings to measure agency programs and activities against customer satisfaction. Source(s): Reconnaissance Report (Executive Summary), Great Lakes Navigation System Review, U.S. Army Corps of Engineers, February 2003, www.lre.usace.army.mil/_kd/go.cfm?destination=ShowItem&Item_ID=2882; SLSDC FY 2004 Financial Audit Report, September 30, 2004; SLSDC Quality Manual, Revision 4, November 2004; SLSDC/SLSMC 2004 Customer Satisfaction Report

Are Budget requests explicitly tied to accomplishment of the annual and long-term performance goals, and are the resource needs presented in a complete and transparent manner in the program's budget?

Explanation: SLSDC's budget is fully integrated with its principal Government Performance Results Act (GPRA) performance measure of system availability. Additionally, beginning in FY 2005, the SLSDC's budget request includes $1.5 million each year for four years to complete major concrete rehabilitation work at the two U.S. Seaway locks, which directly supports the Corporation's ability to meet its principal performance measure of U.S. system availability.

Evidence: SLSDC annual budget requests and performance plans reflect strategic goals and the necessary resources to accomplish these goals. Source(s): SLSDC FY 2006 President's Budget Request; SLSDC FY 2004/2005 Strategic Plan, January 2005, www.greatlakes-seaway.com/en/pdf/slsdc_stratplan.pdf; SLSDC FY 2004/2005 Performance Plan, January 2005

Has the program taken meaningful steps to correct its strategic planning deficiencies?

Explanation: The SLSDC extensively reevaluates and redesigns its strategic and performance plans every 2-3 years. The most current strategic plan incorporated new security measures to reflect the post-9/11 environment and refined the short and long-term goals so that they represent outcomes. In addition, customer feedback and customer surveys have resulted in new performance measures as warranted.

Evidence: A transmittal memorandum from the Administrator to all employees that accompanied the latest redesign of the agency's strategic and performance plans details the process involved in updating the plans. Source(s): SLSDC FY 2003-2004 Strategic and Performance Plan Transmittal Memo, February 10, 2003

Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?

Explanation: The SLSDC is not dependent on any outside sources for its performance measurement data. All measurement data are calculated through in-house systems and are reviewed throughout the year by senior management to ensure agency efficiency and performance. The binational SLSDC/SLSMC Traffic Management System (TMS), which assists the agencies in performing vessel traffic control, generates all availability and operational data.

Evidence: Weekly and monthly performance reports are distributed to staff and other stakeholders to highlight agency progress in attaining its performance measures. Source(s): Sample of SLSDC Weekly and Monthly Performance Reports

Are Federal managers and program partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) held accountable for cost, schedule and performance results?

Explanation: All SLSDC employees have SLSDC strategic goals in their annual performance plans/appraisals. The annual bonus pool for the SLSDC's Wage Grade employees is directly contingent on the results of key agency-wide annual performance metrics. The Canadian SLSMC Strategic Plan also focuses on similar operational measures related to navigation and lock operations.

Evidence: The SLSDC's Performance Management System (PMS), dated October 1, 2004, details the agency's commitment to ensuring that all staff are held accountable to agency performance measures. In addition, the SLSDC's AFGE Local 1968 and agency management worked on a year-end bonus system that utilizes agency goals and ties bonus levels to results. Source(s): SLSDC Performance Management System, October 2004; SLSDC Bargaining Unit Employee Awards Memo, January 7, 2005; SLSMC 2004/05-2006/07 Strategic Plan, January 2004, www.greatlakes-seaway.com/en/pdf/slsmc_stratplan_en.pdf

Are funds (Federal and partners') obligated in a timely manner and spent for the intended purpose?

Explanation: All SLSDC funds and obligations are managed internally and are made timely and categorized by project and performance area. Each fiscal year, the SLSDC outlays 100 percent of its appropriations level. In addition, SLSDC cost accounting measures ensure that all agency funds are tracked to specific programs, projects, and activities.

Evidence: Overall agency financial management practices ensure that obligations are made in a timely fashion and that monthly and "ad hoc" expense reports provided to senior managers accurately reflect current financial position. Source(s): SLSDC Comptroller's Manual, September 2004

Does the program have procedures (e.g. competitive sourcing/cost comparisons, IT improvements, appropriate incentives) to measure and achieve efficiencies and cost effectiveness in program execution?

Explanation: The SLSDC has several programs in place to ensure agency-wide efficiencies and cost effectiveness, including its administrative expense percentage performance measure to ensure that agency funds are obligated directly to key operational activities. Additionally, the SLSDC's recent migration to an Automatic Identification System (AIS) vessel traffic control system has improved vessel traffic control efficiencies, providing greater efficiency in managing traffic control. The information provided on the binational Seaway web site (www.greatlakes-seaway.com) has reduced the number of mailings of stakeholder publications and notices.

Evidence: The SLSDC performance plan and background paper on administrative expense efficiency measure highlight agency strategies for ensuring that agency resources are property tied to operational programs and activities. As the Seaway nears 50 years in operation, lock equipment repairs and replacements are growing, while funding remains relatively static. It is crucial that the SLSDC focus its funding priorities on operational activities and programs. The SLSDC senior staff are provided with detailed monthly and "ad hoc" expenditure reports that detail various financial goals, including the administrative cost ratio. Also, the SLSDC improved its vessel traffic control operations with the implementation of AIS technologies which provide the agency with greater safety, security, and efficiency of operations. Source(s): SLSDC FY 2004/2005 Performance Plan, January 2005; SLSDC Management Accountability/Administrative Expenses Performance Measure Background Paper; Seaway Automatic Identification System (AIS) Brochure, www.greatlakes-seaway.com/en/pdf/ais_brochure_en.pdf

Does the program collaborate and coordinate effectively with related programs?

Explanation: The SLSDC collaborates its operations and promotional activities with the Canadian SLSMC to ensure uniformity and continuity for its customers/stakeholders. Examples of joint collaborations include the binational web site, vessel tracking system/AIS, and economic/trade-related studies and initiatives, including Seaway trade missions. In the late 1990s, the two entities developed and implemented a joint strategic and business development plan that focused on improving waterway management as one seamless system, increasing trade, increasing competitiveness, and increasing customer satisfaction. Currently, the two entities are working on a follow-up to that plan focusing on joint business development under the "Highway H2O" brand, which also includes the U.S. and Canadian port communities.

Evidence: The previous SLSDC/SLSMC joint strategic and business development plan was created to formalize the operational and trade development initiatives that required a strong, binational approach. The followup to that plan is the development of the "Highway H2O" initiative. Source(s): SLSDC/SLSMC Joint Strategic and Business Development Plan, July 2001; "Highway H2O" Background Brochure and SLSDC/SLSMC Sponsorship Letter, September 2004

Does the program use strong financial management practices?

Explanation: The SLSDC has demonstrated strong financial management practices since its creation in the mid-1950s. The agency has received an unqualified or "clean" audit every year of its existence. In addition, the agency performs accurate cost-accounting, manages its own independent financial management system, and has no erroneous payments.

Evidence: Source(s): SLSDC FY 2004 Financial Audit Report, September 30, 2004

Has the program taken meaningful steps to address its management deficiencies?

Explanation: SLSDC leadership reviews on a weekly basis key performance metrics during the navigation season. Any remedial steps necessary to improve performance can be made throughout the year, as necessary. The SLSDC's ISO 9001:2000-certified Quality Management System and all agency business practices are audited every two years by the London, U.K.-based Lloyd's Register Quality Assurance, the independent accrediting agency that evaluated and recertified the SLSDC business functions and practices. The ISO 9001:2000 recognition is only conferred on those service firms and organizations that meet the highest quality customer service and management standards set by the Geneva, Switzerland-based ISO. A requirement of ISO compliance is the completion of external customer surveys and customer meetings to measure agency programs and activities against customer satisfaction as well as capturing random customer complaints.

Evidence: The SLSDC's Quality Management System, the core to its ISO 9002 certification, requires constant review and updates to insure that all management practices and deficiencies, if found, are addressed and remedied. Source(s): SLSDC Quality Manual, Revision 4, November 2004; SLSDC ISO Surveillance Report/Audit, Lloyd's Registry Quality Assurance, January 2005

Has the program demonstrated adequate progress in achieving its long-term performance goals?

Explanation: The SLSDC has worked diligently over the past decade to attract new business to the binational waterway and to maximize its non-federal income and investments to ensure that sufficient emergency funding is available. Related to its long-term standards that have evolved over the past few decades, the SLSDC continues to either meet all its goals or provide additional resources to those goals that are missed.

Evidence: The SLSDC's strategic and performance plans detail all measures, including its principal long-term measure related to vessel transits (see "Measures" tab for details). Source(s): SLSDC FY 2004/2005 Strategic Plan, January 2005, www.greatlakes-seaway.com/en/pdf/slsdc_stratplan.pdf; SLSDC FY 2004/2005 Performance Plan, January 2005

Does the program (including program partners) achieve its annual performance goals?

Explanation: The SLSDC has a strong historical record of meeting its core performance measures each year. The agency's key program partner, the SLSMC, met its key business objectives in its most recent five-year business plan from 1998-2003.

Evidence: The SLSDC's strategic and performance plans detail all annual measures (see "Measures" tab for details). Source(s): SLSDC FY 2004/2005 Strategic Plan, January 2005, www.greatlakes-seaway.com/en/pdf/slsdc_stratplan.pdf; SLSDC FY 2004/2005 Performance Plan, January 2005

Does the program demonstrate improved efficiencies or cost effectiveness in achieving program goals each year?

Explanation: As one of the smallest agencies in the federal government, the SLSDC has consistently been dependent on sound business practices and fiscal responsibility to ensure that all mission-critical programs and activities are completed within the boundaries of historic "current services" budgets. The agency continues to manage its resources efficiently and effectively in order to meet its annual and long-term goals. In recent years, the development of an Automatic Identification System (AIS) vessel traffic control system and a binational Seaway Internet web page (www.greatlakes-seaway.com) have led to agency efficiencies and cost savings.

Evidence: The SLSDC's strategic and performance plans highlight the SLSDC's long-standing record of success in meeting its program goals consistently. Source(s): SLSDC FY 2004/2005 Strategic Plan, January 2005, www.greatlakes-seaway.com/en/pdf/slsdc_stratplan.pdf; SLSDC FY 2004/2005 Performance Plan, January 2005; Seaway Automatic Identification System (AIS) Brochure, www.greatlakes-seaway.com/en/pdf/ais_brochure_en.pdf

Does the performance of this program compare favorably to other programs, including government, private, etc., with similar purpose and goals?

Explanation: The programs and activities of the SLSDC compare quite favorably as relates to other waterway and lock systems around the world. In the early 1990s, the SLSDC created an International Waterways and Canals Forum to bring together executives from the world's other waterway systems to discuss and share operational, technological, and maintenance "best practices". Many of the world's leading waterway systems have developed new programs based on SLSDC practices and initiatives. No formal evaluations comparing waterway and lock systems currently exist. In the area of financial management performance, the Corporation's annual financial audit results indicate financial position and internal controls and its 41 consecutive clean audits make it a leader in the federal government.

Evidence: The SLSDC FY 2004 SLSDC financial audit report highlights the agency's strong financial management practices. The Panama Canal developed its GPS-based vessel tracking system after meeting with SLSDC officials and witnessing the system firsthand. Source(s): SLSDC FY 2004 Financial Audit Report, September 30, 2004; "St. Lawrence Seaway Officials Visit Panama Canal to Benchmark", Canal News, April 19, 2002

Do independent evaluations of sufficient scope and quality indicate that the program is effective and achieving results?

Explanation: The U.S. Army Corps of Engineers, as part of its on-going Great Lakes Navigation System Review, concluded in its Reconnaissance Report in 2003 that there was a Federal interest in proceeding with further studies of the Great Lakes and St. Lawrence Seaway System, confirming the continued need for the binational waterway. This conclusion was based on vessel and traffic profiles and projections, economic analysis, and environmental considerations. The SLSDC undergoes annual financial audits performed by independent auditors, as well as audits of its ISO 9002 certification. In addition, third-party economic impact statements have highlighted the need and importance for Seaway System waterborne commerce. Also, third-party environmental studies show that maritime commerce causes far less environmental damage than either rail or truck. Additionally, the unique binational nature of the Seaway was designed to ensure that the governments of both countries have a vested interest in the operations of the waterway.

Evidence: The Army Corps Reconnaissance Report concluded that there is a positive and effective impact of the program to the nation. The SLSDC's annual financial audit is completed by an independent accounting firm, with concurrence from the DOT OIG. This audit includes reviews of financial position, and internal and management controls. Economic and environmental impact studies are also completed periodically confirming program impacts. Source(s): Reconnaissance Report (Executive Summary), Great Lakes Navigation System Review, U.S. Army Corps of Engineers, February 2003, www.lre.usace.army.mil/_kd/go.cfm?destination=ShowItem&Item_ID=2882; SLSDC FY 2004 Financial Audit Report, September 30, 2004; SLSDC ISO Surveillance Report/Audit, Lloyd's Registry Quality Assurance, January 2005; Economic Impact Study of the Great Lakes St. Lawrence Seaway System, Martin Associates, August 2001, www.greatlakes-seaway.com/en/pdf/ impact_study_en.pdf; "Transport and the Environment - Some Surprising Studies", Highway H2O Web Site, http://207.61.229.100/h2o/en/transport.html