Detailed Information on the
International Trade Administration: U.S. and Foreign Commercial Service Assessment

Completing an impact evaluation that assesses achievement of the program's mission and goals.

Developing a plan for performance assessment with other trade promotion coordinating committee (TPCC) agencies to assess the overall U.S. Government's impact on export expansion, especially among SME's.

Implementing a financial system to better track how resources are applied to program goals and the actual cost of services provided.

Measure: Increase in the Percent of Small and Medium Sized (SME) firms that Export.

Explanation:The general purpose of US&FCS is to promote exports of goods and services from the United States, particularly by small and medium-sized enterprises (SMEs), and to advance U.S. business interests abroad through government-to-government contacts. Toward that end, the US&FCS engages in a broad spectrum of services targeted at SMEs to help them take advantage of potential business opportunities in foreign markets. The program also leverages public and private partners (states, cities, private organizations) to increase exports. This long-term measure captures a primary impact of the US&FCS mission. The measure assesses the program's success at increasing the number of SME firms exporting. Data collected by Census on the total number of SME exporters shows an average year on year growth rate of 2.52 percent between 2003 and 2006. US&FCS proposes to target this growth rate and to raise it to an average growth rate of 3 percent over the next five years. US&FCS considers this to be an ambitious, but achievable long-term outcome target.

Measure: Export Success Firms/Active Client Firms

Explanation:This measure illustrates US&FCS annual change in effectiveness in helping active clients achieve export success by comparing the number of firms successfully exporting to the number of firms helped by US&FCS.

Measure: Total US&FCS Export Value/Total US&FCS Costs

Explanation:Compares total export value supported by US&FCS to total US&FCS program costs. 'Capital Security Cost Sharing Program' costs are not included in budget figure. Total US&FCS Export Value includes: Export Success Value with field reported advocacy value removed; Advocacy Success Value; and Commercial Diplomacy Success Value.

Measure: US&FCS SME NTE/Total change in SME exporters

Explanation:This measure demonstrates US&FCS' ability to engage potential exporters and help them better negotiate the barriers to export success and is measured by comparing the number of SME New-to-Export firms assisted by US&FCS to the total change in SME exporters nationwide, as reported by the Census Bureau. (Note: Data is derived from a U.S. Census Report that has a lag time of one year.)

Measure: Number of SME NTM firms / Number of SME firms exporting to two to nine foreign markets

Explanation:This measure focuses on US&FCS ability to help existing exporters overcome the barriers to expansion into multiple markets by comparing the number of SME New-to-Market firms assisted by US&FCS to SME firms exporting in two to nine markets, as reported by the Census Bureau. (Note: Data is derived from a U.S. Census Report that has a lag time of one year.)

Measure: Number of Commercial Diplomacy Successes (CDS)

Explanation:This measure captures the results of US&FCS front-line diplomatic engagement with foreign governments in support of a U.S. company or the U.S. national economic interest.

Measure: Percentage of Advocacy Cases Won

Explanation:The general purpose of US&FCS is to promote exports of goods and services from the United States, particularly by small and medium-sized enterprises (SMEs), and to advance U. S. business interests abroad through government-to-government contacts. Toward that end, the US&FCS assists clients through advocacy efforts, on a government to government basis, to ensure U.S. firms are afforded fair treatment on major projects and government procurements in foreign markets. The metric directly addresses US&FCS' policy goal to "Advance U.S. Business Interests Abroad." This measure illustrates US&FCS effectiveness in winning bids by comparing the number of advocacy client successes over time to the US&FCS average annual advocacy caseload. Improvement in this long-term success rate is an indicator that US&FCS advocacy efforts are increasingly effective at ensuring that U.S. business interests receive fair treatment in foreign markets.

Is the program purpose clear?

Explanation: The general purpose of US&FCS is to promote exports of goods and services from the United States, particularly by small and medium-sized enterprises (SMEs), and to advance U. S. business interests abroad through government-to-government contacts. More specifically, the purpose of the US&FCS is to advance three public strategic goals: 1) Broaden and deepen the base of U.S. companies exporting??by identifying potential exporters, providing basic counseling and "how to" information, providing market research on opportunities and business environments, and by leveraging public and private partners (states, cities, private organizations). 2) Help SMEs overcome obstacles to export success and entry into foreign markets??by providing matchmaking services and information on other sources of business assistance, and by streamlining and simplifying access to all U.S. Government trade promotion and financing services. 3) Advance U.S. business interests abroad??by addressing trade barriers in foreign markets on behalf of exporters. US&FCS will work directly with foreign governments or government-owned enterprises to resolve specific issues affecting an American company's exports.

Evidence: 1) Section 4721 of the Omnibus Trade and Competitiveness Act of 1988 (P.L. 100-418) http://www.treas.gov/offices/management/asset-management/Omnibus.pdf; 2) DoC Department Organization Orders http://dms.osec.doc.gov/cgi-bin/doit.cgi?204:112:293fb0496bc89409a46ce2ce98b20330582141e35afc80ab8374491d61630d35:275 ; 3) DoC Strategic Plan 2007-2012, http://www.osec.doc.gov/bmi/Budget/07strplan/DOC07strplan.pdf; 4) ITA Strategic Plans 2007-2012 (on disc); 5) Balance Scorecard (BSC) and US&FCS Strategy Map (on disc).

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

Explanation: The US&FCS helps U.S. businesses realize their export potential by providing services to overcome market barriers that many businesses, especially SMEs, face, including imperfect information about export markets' legal frameworks and business practices. These barriers manifest themselves in relatively low participation in export markets by U.S. companies. For example, in Germany and the U.K. nine percent of firms are exporters while only one percent of U.S. firms export. In addition, exports continue to represent a low and flat share of the U.S. national economy (nine to 12 percent the last 15 years) compared to a greater and growing share for our industrial competitors (e.g., Germany - 45 percent of GDP, United Kingdom - 30 percent, Japan - 18 percent). The top reasons U.S. companies give for not exporting are better perceived prospects in the U.S., doubts about the profitability of exporting, belief that exporting is not for small companies, lack of information about markets/how to export, difficulty obtaining financing, and concern that exporting is too risky (Report Card on Trade II, p. 42). US&FCS trade education, counseling, and market research programs help companies become aware of exporting opportunities, available services to manage export risk, and tools and technologies available to make exporting easier; thereby increasing the number of U.S. exporters. Also, many SMEs face unqiue challenges to exporting, such as lack of a in foreign markets to deal with trade barriers or provide information on unfamiliar markets. For example, thirty percent of SMEs that do not export indicate that they would if they had more information. US&FCS programs address obstacles to exporting by producing trade leads and market research, by providing market entry services, and by providing in-country government-to-government contacts on the behalf of American companies.

Evidence: 1) National Export Strategy 2007, http://trade.gov/media/publications/pdf/nes2007FINAL.pdf Page 77-78; 2) U.S. Census Profile of U.S. Exporting Companies 2005-2006, http://www.census2010.gov/foreign-trade/Press-Release/edb/2006/ ; 3) Trade Promotion Coordinating Committee http://govinfo.library.unt.edu/npr/library/direct/orders/tradepromotion.html ; 4) US&FCS website, http://www.Export.gov ; 5) Trade Information Center http://www.export.gov/exportbasics/ticredirect.asp ; 6) "Report Card on Trade II: Assessing the Effectiveness of U.S. Government Support to small and Midsize Exporters," Chemonics International in cooperation with The Kenan Institute of Private Enterprise, Kenan-Flagler Business School, University of North Carolina at Chapel Hill, June 12, 2002, http://trade.gov/media/Publications/pdf/kenan2002FINAL.pdf Page 42.

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

Explanation: Although US&FCS continues to improve its coordination with private and public trade promotion agencies, and attempts to serve a niche of small and medium size enterprises (SME), studies indicate that businesses serviced by US&FCS can also obtain similar services from state, local and private sector entities. A University of North Carolina study found that the private sector is the overwhelming choice of SME's for export promotion services, which indicates that the US&FCS does not necessarily exclusively serve a SME niche.

Evidence: 1) National Export Strategy 2007, http://trade.gov/media/publications/pdf/nes2007FINAL.pdf Page 85; 2) US&FCS web site http://www.export.gov; 3) Kiplingers Forecasting "Slow Recovery for State Export Promotion", http://www.kiplinger.com/businessresource/forecast/archive/slow_recovery_for_state_export_promotion__.html ; 4) GAO Report: "Federal Efforts to Support Working Capital Needs of Small Business, GAO-NSIAD-97-20", http://www.gao.gov/archive/1997/ns97020.pdf ; 5) Trade Promotion Coordinating Committee http://govinfo.library.unt.edu/npr/library/direct/orders/tradepromotion.html ; 6) US&FCS http://www.Export.gov ; 7) Trade Information Center http://www.export.gov/exportbasics/ticredirect.asp; 8) ITA Advocacy Center, ; http://www.export.gov/Advocacy/ ; 9) ITA Market Access and Compliance http://trade.gov/mac/index.asp; 10) "Export Programs Guide" A Business Guide to Federal Export Assistance http://www.ita.doc.gov/media/Publications/pdf/epg_2006.pdf; 11) Report to the President and Congress on Coordination of Intellectual Property Enforcement and Protection http://149.101.1.32/criminal/cybercrime/NIPLECC_Report_2008_Final.pdf

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

Explanation: US & FCS uses program design tools, such as business-process mapping, a balanced scorecard and strategy maps, to help ensure that the program's design does not limit effectiveness or efficiency. This approach is reviewed on a regular basis by senior Department of Commerce officials in the context of performance measures to help ensure that this approach continues to contribute to better performance. Also, there is no discernible evidence that a different program structure, such as a grant program, would better provide services to promote exports and achieve the US&FCS's strategic goals.

Evidence: 1) Summary of ITA's Core Business Processes, August 2004. US&FCS has conducted extensive business process mapping in conjunction with ITA's reorganization to assess its business operations and ensure that the design is free of flaws and operates both efficiently and effectively. US&FCS developed a balanced scorecard and strategy map in 2006 and 2007 to improve the focus of its organization, the understanding of its program drivers and to drive towards identified long-term outcomes; BSC and US&FCS Strategy Map; 2) Customized Solutions Products/Services pilot program; 3) US&FCS web site http://www.export.gov ; 4) New User Fee Policy Fact Sheet; 5) Transformational Commercial Diplomacy, 2007 http://trade.gov/press/press_releases/2007/cs_032807.asp; 6) Market Segmentation Study Fact Sheet (on disc); 7) Client Tracking System Fact Sheet (on disc); 8) CBS Accounting System https://webapp04.nist.gov:4449/portal/page?_pageid=50,39370&_dad=portal&_schema=PORTAL; 9) ITA Customer Service Report by CFI Group, 2006; 10) GAO Reports: "Rightsizing approaches slowly taking hold but more action needed to coordinate and carry out efforts, GAO 06-737, June 2006" http://www.gao.gov/new.items/d06737.pdf, "Foreign Languages: workforce planning could help address staffing and proficiency shortfalls, GAO-02-514T, March 2002" http://www.gao.gov/new.items/d02514t.pdf

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

Explanation: US&FCS's primary goal is to promote the export of goods and services from the United States, particularly by small and medium-sized businesses by providing technical assistance, helping SMEs overcome obstacles to exporting, and to advocating for U.S. business interests abroad. The program attempts to achieve these goals through a network of domestic and international field offices. In 2007, US&FCS began moving offices, as part of their Transformational Commercial Diplomacy initiative, from developed countries to developing countries to more effectively target resources to areas of rapid grow and where more concentrated government assistance is warranted. This adjustment in program design should help ensure that resources are used in the most effective and direct manner to promote U.S. exports. Also, the US & FCS will implement a new fee-for-service structure in May 2008 for certain services that will charge estimated full cost recovery for large businesses, while providing price breaks for small businesses and first time users of US &FCS services. This replaces a structure that was based on price bands that were roughly related to the country a business targeted for export. The fee structure did not differentiate on a business's size or whether a business was a new exporter. The new fee structure's differentiation based on a business's size and experience exporting will help ensure that benefits are properly targeted towards SMEs and that business activities are not unnecessarily subsidized

Evidence: 1) Summary of ITA's Core Business Processes, August 2004. US&FCS has conducted extensive business process mapping in conjunction with ITA's reorganization to assess its business operations and ensure that the design is free of flaws and operates both efficiently and effectively. US&FCS developed a balanced scorecard and strategy map in 2006 and 2007 to improve the focus of its organization, the understanding of its program drivers and to drive towards identified long-term outcomes (on disc), 2) BSC and US&FCS Strategy Map (on disc); 3) National Export Strategy 2007, http://trade.gov/media/publications/pdf/nes2007FINAL.pdf ; 4) DoC Strategic Plan 2007-2012, http://www.osec.doc.gov/bmi/Budget/07strplan/DOC07strplan.pdf ; 5) ITA Strategic Plan 2007-2012 (on disc).

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: US&FCS has two long-term measures. The first is the annual growth rate of SME exporters to show progress towards its goal to broaden and deepen the American exporting base. This measure is related to the annual measure that tracks the percent of active clients in the US&FCS database who export. By increasing their success rate with SME businesses, US&FCS will help increase the number of SME exporters, as tracked by the Census bureau. The second long-term measure is the Advocacy cases won. Advocacy cases are those instances where the US&FCS supports U.S. business interests, by promoting, on a government-to-government basis, U.S. business interests abroad in an attempt to increase a company's exports. Government-to-government contact differentiates an advocacy case from an export success. Advocacy cases won support the US&FCS's goal of advancing U.S. businesses interests, and are a connected to the annual Commercial Diplomacy Success measure, which measures the number of trade barriers faced by individual companies that are overcome with the help of the US&FCS.

Evidence: 1) ITA Strategic Plan 2007-2012 (on disc); 2) ITA's FY 2007 Annual Performance and Accountability Report, http://www.osec.doc.gov/bmi/budget/FY07PARlink.htm; 3) ITA Customer Service Report by CFI Group, 2003 and 2006 (on disc); 4) Screen shot of eMenu Export Success Database (on disc); 5) Screen shot of Client Tracking System (on disc).

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

Explanation: US&FCS envisions helping to increase the percent of SMEs exporting from the current 2.53 percent, according to the Census Bureau, to three percent by 2013. While the percentage increase is not overwhelming, the actual increase in SMEs exporting would be substantial, given the raw number of SME in the United States. US&FCS envisions an eight percent increase in the success rate of advocacy bid over the next five years.

Evidence: 1) ITA Strategic Plan 2007-2012 (on disc); 2) ITA's FY 2007 Annual Performance and Accountability Report, http://www.osec.doc.gov/bmi/budget/FY07PARlink.htm ; 3) ITA FY 2007 Annual Performance Plan, http://www.osec.doc.gov/bmi/budget/09CBJ/ITA%20FY%202009%20Congressional%20Justification.pdf Page ITA-17; 4) Performance Measure Data (on disc).

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: US&FCS annual measures focus the program's progress and effectiveness in addressing its three strategic goals. To track progress in achieving its goal of Broadening and Deepening the Exporter Base, US&FCS tracks the Percentage of Active Clients who export with the help of US&FCS services. This measure shows the effectiveness of US&FCS outreach efforts and core services in increasing the number of businesses exporting. US&FCS's second strategic goal is to "Overcome Obstacles to SME Export Success." To measure US&FCS's success in reaching this goal, it tracks the "SME New-to-Export (NTE) firms divided by the Total change in SME exporters" obtained from U.S. Census data. Comparing the number of new SMEs that export with US&FCS help to the increase in SME exporters overall shows the effectiveness of US&FCS services in helping SMEs overcome export barriers. It should also drive US&FCS to continually hone services to better serve potential SME exporters. Also, US&FCS measures the number of "SME New-to-Market Export (NTM) firms divided by the Total number of SME firms exporting to two-nine markets" obtained from Census data to track how well US&FCS services help SMEs export to new markets. For US&FCS's final goal to "Advance U.S. Business Interests Abroad," it measures the "Number of Commercial Diplomacy Successes." A commercial diplomacy success is when in-country government-to-government contact on behalf of an individual U.S. firm by US&FCS employees lead to an export success.

Evidence: 1) Performance Measure Data (on disc); 2) FY 2009 President's Budget Request and ITA FY 2007 Annual Performance Plan http://www.osec.doc.gov/bmi/budget/09CBJ/ITA%20FY%202009%20Congressional%20Justification.pdf ; 3) DoC Strategic Plan 2007-2012, http://www.osec.doc.gov/bmi/Budget/07strplan/DOC07strplan.pdf ; 4) ITA's FY 2007 Annual Performance and Accountability Report http://www.osec.doc.gov/bmi/budget/FY07PARlink.htm

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

Explanation: US&FCS's annual target for Commercial Diplomacy Successes more than doubles, while the targets for the percentage of SME exporters moving to new markets, percentage of active client firms exporting, and value of exports supported by US&FCS resources are envisioned to experience steady increases.

Evidence: 1) ITA's FY 2009 Annual Performance and Accountability Report http://www.osec.doc.gov/bmi/budget/09CBJ/ITA%20FY%202009%20Congressional%20Justification.pdf ; 2) ITA's FY 2007 Annual Performance and Accountability Report, http://www.osec.doc.gov/bmi/budget/FY07PARlink.htm ; 3) Performance Measure Data (on disc); 4) US&FCS Customer Service Report (Net Promoter Score), 2007 (on disc).

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 main coordinating body for government export promotion services is the Trade Promotion Coordinating Committee (TPCC), which is housed in the US&FCS, and its plan for getting trade promotion agencies to commit to annual goals is the National Export Strategy (NES). However, a recent Commerce Inspector General (IG) report stated that the document lacked clear export promotion goals. THe NES could be improved with clear performance measurses that support clear goals for furture export promotion activities.

Evidence: 1)ITA Strategic Plan 2007-2012 (on disc); 2) National Export Strategy 2007, http://trade.gov/media/publications/pdf/nes2007FINAL.pdf ; 3) US&FCS Corporate Strategic Partner website, http://www.export.gov/cspartners/CSPartner_page.asp ; 4) Trade Promotion Coordinating Committee web site, http://govinfo.library.unt.edu/npr/library/direct/orders/tradepromotion.html ; 5) ITA Advocacy Center website, http://www.export.gov/Advocacy/

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: A comprehensive independent program evaluation of US&FCS is scheduled to begin in FY 2008. The evaluation will include an assessment of US&FCS's long-term impact on exports, its program structure, and ways to streamline the delivery of services. ITA will release a Request for Information (RFI) in June 2008 to the public. Within the past five years, US&FCS participated in several Government Accountability Office (GAO) and Inspector General (IG) studies intended to enhance program effectiveness. These reports recommended ways to improve US&FCS' export success verification procedures. US&FCS recently instituted an independent, on-going export success verification process for both the domestic field and overseas posts, where a random sample of international and domestic offices are audited to verify the accuracy of their export success data. US&FCS also uses customer satisfaction surveys to measure performance.

Evidence: 1) Scope of Work and Request for Information for an Independent Study on US&FCS, 2008; 2) ITA Customer Service Report by CFI Group, 2006; 3) GAO Report: "U.S. Involvement at Major International Air Shows" http://www.gao.gov/new.items/d071165r.pdf ; 4) OIG Reports: "Greater Interagency Involvement and More Effective Strategic Planning Would Enhance the National Export Strategy??Inspection: IPE-18589, September 2007" http://www.oig.doc.gov/oig/reports/2007/IPE-18589.pdf, "CS Brazil Is Operating Well Overall but Needs Management Attention in Some Areas ?? Inspection: IPE-18114, March 2007" http://www.oig.doc.gov/oig/reports/2007/IPE-18114.pdf, "Commerce Can Further Assist U.S. Exporters by Enhancing Its Trade Coordination Efforts ?? Inspection: IPE-18322, March 2007" http://www.oig.doc.gov/oig/reports/2007/IPE-18322%20Trade%20Coordination%20Report.pdf , "Commercial Service Operations in Argentina and Uruguay Are Mostly Sound but Financial Processes Need Attention - Inspection: ITA-IPE-18111, September 2006" http://www.oig.doc.gov/oig/reports/2006/Final%20Report%20Argentina.pdf , "CS China Generally Performs Well But Opportunities Exist for Commerce to Better Coordinate Its Multiple China Operations - Inspection: ITA-IPE-17546, March 2006" http://www.oig.doc.gov/oig/reports/2006/ITA-IPE-17546-03-06.pdf , "Commercial Service India: Challenges Remain for Management of Large and Economically Diverse Post - Inspection: ITA-IPE-16808, September 2004" http://www.oig.doc.gov/oig/reports/2004/ITA-IPE-16808-09-2004.pdf , "Pacific Northwest USEAC Network Generally Operates Well, but Export Success Reports Need More Management Scrutiny - Inspection: ITA-IPE-16507, March 2004" http://www.oig.doc.gov/oig/reports/2004/ITA-IPE-16507-03-2004.pdf , "USEACs Are Meeting Client Needs, but Better Management Oversight Is Needed - Inspection: ITA-IPE-16728, September 2004" http://www.oig.doc.gov/oig/reports/2004/ITA-IPE-16728-09-2004.pdf , "The Commercial Service Needs to Improve Management of its Operations in Turkey - Inspection: ITA-IPE-15370, March 2003" http://www.oig.doc.gov/oig/reports/2004/ITA-IPE-15370-08-04.pdf , "Philadelphia USEAC Network Provides Good Service to Clients, but Oversight and Export Success Reporting Need to be Improved - Inspection: ITA-IPE-16402, March 2004" http://www.oig.doc.gov/oig/reports/2004/ITA-IPE-16402-05-04.pdf , and "Chicago USEAC Network is Generally Operating Well But Needs to Improve Its Export Success Reporting - Inspection: ITA-IPE-16136, February 2004", http://www.oig.doc.gov/oig/reports/2004/ITA-IPE-16136-05-2004.pdf

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: US&FCS' program budget requests are aligned with ITA strategic priorities and organized by strategic goal to ensure that resources tie directly to US&FCS' mission objectives and strategic goals. The President's budget illustrates how resources are distributed across these goals. The budget estimates include direct support costs and indirect overhead costs, such as Departmental support and services provided to US&FCS by the Department of State, to ensure that cost information about each program is complete. Once the budget is approved and signed into law, US&FCS receives its allocation from ITA and obligations and expenses are tracked by goal and reported monthly to senior ITA and Departmental management. DoC, ITA and US&FCS senior leaders closely monitor these reports and use the information to make resource allocation decisions on program activities to achieve performance goals. On a quarterly basis the Deputy Secretary of Commerce reviews performance results, key program initiatives, and financial expenditures to ensure that resources are closely linked to performance. The US&FCS budget illustrates how budget and performance are integrated. The Executive Summary, base narrative, and Annual Performance Plan sections of the budget all demonstrate the impact of funding on expected performance as well as the resource mix required to achieve program goals.

Evidence: 1) FY 2009 President's Budget Request and ITA FY 2007 Annual Performance Plan http://www.osec.doc.gov/bmi/budget/09CBJ/ITA%20FY%202009%20Congressional%20Justification.pdf ; 2) FY 2008 President's Budget Request http://www.osec.doc.gov/bmi/budget/08CJB/ita.pdf ; 3) US&FCS 2007&2008 Budget Allocation Memo (on disc); 4) ITA Strategic Plan 2007-2012 (on disc); 5) Screen shot of PBViews (on disc)

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

Explanation: Over the past two years, US&FCS implemented a Balanced Scorecard (BSC), which allowed the organization to improve operations by marrying performance with goals. Through the BSC, US&FCS can better drive organization change, such as a renewed focus on developing markets and expansion of public/private partnerships. The US&FCS also has permanent members assigned to the ITA Strategic Planning Leadership Team (SPLT). The SPLT meets monthly to discuss key performance issues, evaluate performance targets and results.

Evidence: 1)BSC and US&FCS Strategy Map (on disc); 2)Strategic Planning Leadership Team (SPLT) Charter (on disc); 3) Commercial Diplomacy Successes http://trade.gov/press/speeches/hernandez_091506.asp ; 4) Screen shot of CTS; 5) CBS Accounting System https://webapp04.nist.gov:4449/portal/page?_pageid=50,39370&_dad=portal&_schema=PORTAL ; 5) ITA Strategic Plan 2007-2012 (on disc); 6) US&FCS Performance Quarterly Report "Dashboard"(on disc).

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: US&FCS collects performance information from its program offices each quarter and displays the information in a tracking system that is available to program managers. Tracked information includes data on individual employees' export successes and customer satisfaction. US&FCS also tracks performance information through its Client Tracking System (CTS), which tracks individual customers' information to better assess US&FCS's and other ITA units' performance in helping businesses export. As a shared system, CTS helps integrate service delivery across ITA units.

Evidence: 1) Screen shot of PBViews and Sample ITA Verification and Validation Review (on disc); 2) Screen shot of eMenu Export Success Database (on disc); 3) US&FCS Quarterly Performance Report "Dashboard"(on disc); 4) Client Tracking System Fact Sheet (on disc); 5) Annual Performance Plan for SCO (on disc); 6) Management and Program Review (MPR) Guidance (on disc); 7) Screen shot of Client Relationship Management Unit (CRMU) internal website (on disc), 8) FY06 Advocacy Center Audit

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: US&FCS managers are held accountable for cost, schedule, and performance results through annual office-level operating plans and staff-level performance plans that are linked to ITA goals and objectives. US&FCS' SES-level managers are held responsible for achieving key program results, such as export successes, and managing costs through their annual performance plans. For Civil Service employees, US&FCS re-introduced a five-level performance evaluation system that makes distinctions between various levels of performance to identify strong and weak performers. Program parterners are held accountable for cost, schedule and performance through memoranda of understanding.

Evidence: 1) Annual Performance Plans for SCO (on disc); 2) Senior Executive Service Performance Plan (on disc); 3) ITA Five-level Performance Evaluation System http://www.ita.doc.gov/hrm/documents/pmsfactsheet.pdf ; 4) US&FCS Quarterly Performance Report "Dashboard"(on disc); 5) Screen shot of eMenu Export Success Database (on disc); 6) Sample US&FCS MOU with a program partner (on disc).

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

Explanation: The US&FCS obligates appropriated and trust funds in a timely manner based on annual fiscal plans detailing expected expenditures for all accounts. In FY 2007, US&FCS obligated 99.3 percent of appropriated funds. The US&FCS has established procedures, such as monthly variance testing, that allow management to track and identify spending that deviates from annual spending plans. Independent auditors have verified that the US&FCS follows generally accepted accounting practices for the United States and that only limited amounts of unobligated funds remain at the end of each fiscal year.

Evidence: 1) In FY 2007, the US&FCS obligated 99.3percent of its available operations and administration funds. This trend has been in place for several years [FY 2001-97percent and FY 2007-99.3percent and includes all funds http://www.osec.doc.gov/bmi/budget/08CJB/ita.pdf ; 2) Independent auditors have verified that the US&FCS follows generally accepted accounting practices for the United States and as documented by KPMG in its 2007 Independent Auditors' Report of the Department's FY 2006 and FY 2007 consolidated financial statements and statement of net cost presented in the FY 2007 Performance and Accountability Report http://www.osec.doc.gov/bmi/budget/FY07PAR_Web/index.shtml ; 3) Budget Operating Plan (found in the Status of Funds Report (on disc); 4) US&FCS Budget Allocation Memo (on disc).

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: US&FCS uses an efficiency measure that compares total export value supported by US&FCS to total US&FCS program costs. In FY 2004 through FY 2007, US&FCS increased value returned for each appropriated dollar spent from $150 per dollar of cost to $415 per dollar of cost, which is an improvement of 180 percent. This increase corresponds to several initiatives, such as co-location of field offices with State export promotion agencies or other U.S. Government agencies, streamlining of the domestic field office management structure, and reducing overseas rental space costs. However, some of the gain may be due to better reporting of export values from commercial diplomacy successes

Evidence: 1) Performance Measure Data (on disc); 2) ODO Efficiency Briefing (on disc); 3) Transformational Commercial Diplomacy, 2007, http://trade.gov/press/press_releases/2007/cs_032807.asp ; 4) Client Tracking System Fact Sheet (on disc); 5) US&FCS Corporate Strategic Partner website, http://www.export.gov/cspartners/CSPartner_page.asp

Does the program collaborate and coordinate effectively with related programs?

Explanation: The TPCC, an interagency committee chaired by the Secretary of Commerce and administered by the TPCC Secretariat under US&FCS, coordinates the U.S. government's trade promotion activities. It was established under the Export Enhancement Act of 1992 to provide a unifying framework to coordinate the export promotion and export financing activities of the U.S. government and to develop a government-wide strategic plan for carrying out such programs. The TPCC Secretariat organizes the TPCC Interagency Trade Officer Training Program, chairs a TPCC Communications Working Group, and manages the interagency Export Pavilion at U.S. trade shows, in addition to its constant role facilitating senior management collaboration on priority initiatives, such as the Central American Free Trade Agreement. While the TPCC coordinates relatively effectively on many ad hoc issues, the group could strengthen its strategic planning role by incorporating shared performance measures into the National Export Strategy and ensuring that the strategy includes goals for the upcoming year, as opposed to simply recounting past trade promotion activities.

Evidence: 1) Trade Promotion Coordinating Committee http://govinfo.library.unt.edu/npr/library/direct/orders/tradepromotion.html ; 2) National Export Strategy 2007, http://trade.gov/media/publications/pdf/nes2007FINAL.pdf ; 3) DOC FY 2009 Budget in Brief, Mission of ITA, http://www.osec.doc.gov/bmi/BUDGET/09BIB/International%20Trade%20Administration.pdf ; 4) "Export Programs Guide" A Business Guide to Federal Export Assistance, http://www.ita.doc.gov/media/Publications/pdf/epg_2006.pdf ; 5) SIDO Survey 2006, Page 11 (on disc).

Does the program use strong financial management practices?

Explanation: US&FCS is in conformity with U.S. Government accounting principles. Per findings of clean financial audits, strong procedures are in place to ensure funds are spent as intended. Financial contractors also use strong financial management practices, as evidenced by clean financial audits

Evidence: 1) Inspector General's audit of FY 2007 Consolidated Financial Statements (1-16-20073, Audit Report No. FSD-15214-3-0002), http://www.osec.doc.gov/bmi/budget/FY07PARlink.htm; Page 275; 2) FY 2009 President's Budget Request and ITA FY 2007 Annual Performance Plan http://www.osec.doc.gov/bmi/budget/09CBJ/ITA%20FY%202009%20Congressional%20Justification.pdf ; 3) FY 2008 President's Budget Request http://www.osec.doc.gov/bmi/budget/08CJB/ita.pdf ; 4) US&FCS Letter of Assurance (on disc).

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

Explanation: US&FCS uses a Balanced Scorecard (BSC) strategic management system along with other procedures to improve its ability to identify and address management areas for improvement. In addition, Inspector General Reviews and the US&FCS' internal Management and Program Review (MPR) program supplement the management tools available US&FCS leadership. Examples of management deficiencies US&FCS have identified and addressed using these tools include improving measures for tracking activities, implementing a new user fee tracking system, and creating a new user fee model.

Evidence: 1) The Balanced Scorecard allows management to determine deficiencies in each of the 4 areas. BSC and US&FCS Strategy Map (on disc); 2) ODO & OIO MPR Manuals (on disc); 3) New User Fee Policy Fact Sheet (on disc); 4) Budget Operating Plan (found in Status of Funds Report) (on disc); 5) OIG Reports: "Greater Interagency Involvement and More Effective Strategic Planning Would Enhance the National Export Strategy??Inspection: IPE-18589, September 2007" http://www.oig.doc.gov/oig/reports/2007/IPE-18589.pdf, "CS Brazil Is Operating Well Overall but Needs Management Attention in Some Areas ?? Inspection: IPE-18114, March 2007" http://www.oig.doc.gov/oig/reports/2007/IPE-18114.pdf, "Commerce Can Further Assist U.S. Exporters by Enhancing Its Trade Coordination Efforts ?? Inspection: IPE-18322, March 2007" http://www.oig.doc.gov/oig/reports/2007/IPE-18322%20Trade%20Coordination%20Report.pdf , "Commercial Service Operations in Argentina and Uruguay Are Mostly Sound but Financial Processes Need Attention - Inspection: ITA-IPE-18111, September 2006" http://www.oig.doc.gov/oig/reports/2006/Final%20Report%20Argentina.pdf , "CS China Generally Performs Well But Opportunities Exist for Commerce to Better Coordinate Its Multiple China Operations - Inspection: ITA-IPE-17546, March 2006" http://www.oig.doc.gov/oig/reports/2006/ITA-IPE-17546-03-06.pdf , "Commercial Service India: Challenges Remain for Management of Large and Economically Diverse Post - Inspection: ITA-IPE-16808, September 2004" http://www.oig.doc.gov/oig/reports/2004/ITA-IPE-16808-09-2004.pdf ; 6) ITA FY 2006-2007 Annual Performance Plan "Actions Taken to Address Management Challenges", http://www.osec.doc.gov/bmi/budget/06appr/par_mda_09.shtml http://www.osec.doc.gov/bmi/BUDGET/07PAR/Actions.pdf ; 7) OIG Semiannual Report September 2007, http://www.oig.doc.gov/oig/reports/sar/Sept%202007%20SAR.pdf

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

Explanation: US&FCS has developed a new long-term measure to track the number of SMEs exporting for this evaluation, which makes it difficult to judge their success in reaching that long-term goal. They have seen some progress in improving their advocacy success rate, but it dropped from the initial year tracked. However, the recent upswing in exports and number of companies exporting may indicate that US&FCS is helping to contribute to their export promotion goals.

Evidence: 1) Screen shot of eMenu Export Success Database (on disc); 2) ITA Customer Service Report by CFI Group, 2003 & 2006 (on disc); 3) Performance Measure Data (on disc); 4) FY 2009 President's Budget Request and ITA FY 2007 Annual Performance Plan http://www.osec.doc.gov/bmi/budget/09CBJ/ITA%20FY%202009%20Congressional%20Justification.pdf ; 5) ITA Strategic Plan 2007-2012, http://trade.gov/PDFs/ITA_stratplan2007.pdf

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

Explanation: US&FCS tracks four annual performance measures, which are shown in the measures tab, to evaluate performance. They have seen a noticeable increase in their output measure of commercial diplomacy successes, but their other outcome measures have shown only limited successes

Evidence: 1) Screen shot of eMenu Export Success Database (on disc); 2) US&FCS Customer Service Report (Net Promoter Score), 2007 (on disc); 3) Performance Measure Data (on disc); 4) FY 2009 President's Budget Request and ITA FY 2007 Annual Performance Plan http://www.osec.doc.gov/bmi/budget/09CBJ/ITA%20FY%202009%20Congressional%20Justification.pdf ; 5) ITA Strategic Plan 2007-2012, http://trade.gov/PDFs/ITA_stratplan2007.pdf

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

Explanation: US&FCS's measure of efficiency, which compares the total value of export successes to US&FCS costs, showed marked improvement in 2006 and 2007. The timing of this improvement roughly corresponds with efforts to streamline domestic and international field offices by co-locating with partners and moving to lower cost areas and increased utilization of private sector partners, such as Fedex to provide services and conduct outreach. These efforts could be responsible for the improvement. For example, co-locating and moving to lower cost areas are estimated to have reduced overall office space costs by 27 percent between 2003 and 2007. However, no targets were in place before 2008 for US&FCS's efficiency measure because it was not in active use and many intervening factors, such as currency fluctuations, could be partly responsible for the noted gains.

Evidence: 1) Performance Measure Data (on disc); 2) ODO Efficiency Briefing (on disc); 3) World of Opportunity One Global Network, Moving Forward 2008, US&FCS (internal report); 4) FedEx and UPS websites referencing US&FCS Services, http://www.international.ups.com/resources/us-commercial-service.html ; 5) Announcement of US&FCS events organized with strategic partners, http://www.buyusa.gov/asianow/bechinasmart.html ; 6) FedEx Newsletter Referencing an US&FCS event (on disc).

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

Explanation: US&FCS scores reasonably well on customer service satisfaction surveys, when compared to similar private sector providers and is the leading provider of government export promotion assistance services used by SMEs. Also, while the private sector is the overwhelming choice of exporters to provide trade promotion services, the government is especially well-suited to provide basic information on exporting according to surveys of SME exporters. Finally, the United States' trade promotion efforts compare favorably to other industralized countries. The U.S. supports a higher value of exports per dolalr spent on trade promotion activities than every other major industralized country, except Germany.

Evidence: 1) Screen shot of Client Relationship Management Unit (CRMU) internal website (on disc); 2) US&FCS Customer Service Report (Net Promoter Score), 2007(on disc); 3) ITA Customer Service by CFI Group, 2003-2006 (on disc); 4) "Report Card on Trade II: Assessing the Effectiveness of U.S. Government Support to small and Midsize Exporters," Chemonics International in cooperation with The Kenan Institute of Private Enterprise, Kenan-Flagler Business School, University of North Carolina at Chapel Hill, June 12, 2002. http://trade.gov/media/Publications/pdf/kenan2002FINAL.pdf

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

Explanation: As stated before, surveys of exporters show that US&FCS scores reasonably well on customer satisfaction surveys. US&FCS is also planning to commission an independent study to evaluate the program's actual impact on increasing exports and other stated goals. However, this study has not begun yet and results demonstrating the program's effectiveness in achieving stated goals are not available.

Evidence: 1)"Report Card on Trade II: Assessing the Effectiveness of U.S. Government Support to small and Midsize Exporters," Chemonics International in cooperation with The Kenan Institute of Private Enterprise, Kenan-Flagler Business School, University of North Carolina at Chapel Hill, June 12, 2002. http://trade.gov/media/Publications/pdf/kenan2002FINAL.pdf; 2) Scope of Work for an Independent Evaluation on US&FCS, 2008 (on disc); 3) OIG Reports: "Greater Interagency Involvement and More Effective Strategic Planning Would Enhance the National Export Strategy??Inspection: IPE-18589, September 2007" http://www.oig.doc.gov/oig/reports/2007/IPE-18589.pdf, "CS Brazil Is Operating Well Overall but Needs Management Attention in Some Areas ?? Inspection: IPE-18114, March 2007" http://www.oig.doc.gov/oig/reports/2007/IPE-18114.pdf, "Commerce Can Further Assist U.S. Exporters by Enhancing Its Trade Coordination Efforts ?? Inspection: IPE-18322, March 2007" http://www.oig.doc.gov/oig/reports/2007/IPE-18322%20Trade%20Coordination%20Report.pdf , "Commercial Service Operations in Argentina and Uruguay Are Mostly Sound but Financial Processes Need Attention - Inspection: ITA-IPE-18111, September 2006" http://www.oig.doc.gov/oig/reports/2006/Final%20Report%20Argentina.pdf , "CS China Generally Performs Well But Opportunities Exist for Commerce to Better Coordinate Its Multiple China Operations - Inspection: ITA-IPE-17546, March 2006" http://www.oig.doc.gov/oig/reports/2006/ITA-IPE-17546-03-06.pdf , "Commercial Service India: Challenges Remain for Management of Large and Economically Diverse Post - Inspection: ITA-IPE-16808, September 2004" http://www.oig.doc.gov/oig/reports/2004/ITA-IPE-16808-09-2004.pdf ; 4) ITA FY 2006-2007 Annual Performance Plan "Actions Taken to Address Management Challenges", http://www.osec.doc.gov/bmi/budget/06appr/par_mda_09.shtml http://www.osec.doc.gov/bmi/BUDGET/07PAR/Actions.pdf ; 5) OIG Seminannual Report September 2007, http://www.oig.doc.gov/oig/reports/sar/Sept%202007%20SAR.pdf