TREASURY DIRECTIVE 12-81

DATE: August 29, 2024

SUBJECT: Program and Project Management at Treasury

  1. PURPOSE. This Directive sets forth the Department of the Treasury’s (“the Department”) policy for program and project management and authorizes the issuance of a publication (TD P 12-81) to outline key considerations for the implementation of program and project management, including risk-based program and project management oversight, and specific certification standards for program and project managers. The objective of this Directive is to improve program outcomes by strengthening program and project management practices. Congress passed the Program Management Improvement Accountability Act (PMIAA) in December 2016 to improve the quality and effectiveness of program and project management in federal agencies. Implementation provides an opportunity for agencies to better identify and assess the major projects and programs that support strategic goals and to ensure key project and program managers have the relevant skills and training they need to achieve outcomes and comply with government certification requirements.
  2. SCOPE. This Directive applies to all bureaus in the Department of the Treasury, including the Offices of Inspectors General within the Department. The provisions of this Directive shall not be construed to interfere with or impede the authorities or independence of the Department’s Inspectors General.
  3. POLICY. It is the Department’s policy to:
    1. Provide risk-based oversight to programs and projects that are determined to be the most critical for the Department (see publication TD P 12-81 for definitions of oversight, critical, and other key terms). Those programs and projects that meet the definition of being critical shall be candidates for additional oversight based on capacity and other determining factors. This oversight shall be carried out in such a way as to create minimal administrative burden and maximum benefits, including by leveraging Treasury’s strategic management processes to the extent practicable.
    2. Set standards and provide guidance to bureaus regarding the Department’s expectations for program and project management practices and program and project managers.
    3. Identify every four years and review no less than annually a list of critical programs and projects using appropriate governance procedures.
  4. RESPONSIBILITIES.
    1. Chief Operating Officer. Pursuant to 31 U.S.C. 1123(a), the Deputy Secretary serves as the Chief Operating Officer (COO) and oversees overall organization management to improve and achieve the mission and goals of the Department. The COO is responsible for setting clear and ambitious goals, improving results, reducing costs, and assigning and empowering senior leaders to drive progress for strategic objectives and agency priority goals.
    2. Heads of Bureaus. Heads of bureaus may designate a Bureau Accountable Official who has visibility into all areas of the organization and the authority to speak for their bureau on matters of program and project management policy. They may also designate bureau-level portfolio managers for subsidiary portfolios aligned to bureau strategic goals.
    3. Bureau Accountable Official. Responsible for implementing this policy within their bureau and ensuring that program and project managers and supporting staff have the necessary skills and experience commensurate with the complexity and size of the program or project.
    4. Program Management Improvement Officer. By Secretarial delegation, the Assistant Secretary for Management (ASM) serves as the Program Management Improvement Officer (PMIO). The PMIO supports the Secretary and COO in leading Department efforts to improve outcomes through strengthened program and project management practices. The PMIO coordinates the designation of critical programs and projects in consultation with the COO and appropriate program leadership (e.g. bureau head or Under Secretary). The PMIO manages oversight of Treasury-level critical programs and projects and is accountable for Treasury’s portfolio structure.
    5. Deputy Program Management Improvement Officer. By Secretarial delegation, the Deputy Assistant Secretary for Strategy, Planning, and Performance Improvement (OSPPI) serves as the Deputy Program Management Improvement Officer (DPMIO). The DPMIO supports the COO and PMIO, with responsibility for implementing PMIAA requirements and integrating with Treasury’s strategic management processes.
    6. Portfolio Manager. Goal leads designated by the COO for the implementation of the Department’s Strategic Plan. Responsible for providing oversight to critical programs and projects in their portfolio.
    7. Office of Strategy, Planning, and Performance Improvement (OSPPI). Responsible for coordinating portfolio, program, and project management oversight needs for critical programs and projects. OSPPI will also maintain an inventory of core processes that support Treasury's critical programs and projects.
    8. Executive Steering Committee. Group composed of Treasury senior accountable officials who recommend to the PMIO, in consultation with program staff and strategic objective leads, which programs and projects to designate as critical. At a minimum, this will include the DPMIO, Chief Risk Officer (CRO), Deputy Performance Improvement Officer (DPIO), Chief Information Officer (CIO), Treasury Budget Director, Deputy Chief Acquisition Officer (DCAO), and Chief Human Capital Officer (CHCO), or their designees.
    9. Program and Project Management Advisory Council. Consists of Bureau Accountable Officials, who support implementation of this Directive, and the program and project managers responsible for managing successful delivery of critical programs and projects.
    10. Program Manager. Coordinates and prioritizes resources across projects, monitors overall costs and risks, manages links between projects, monitors and identifies dependencies between projects, and oversees all related change management efforts.
    11. Project Manager. Accountable for achieving a project’s objectives and leveraging the assigned resources effectively, including planning, managing scope, schedule, cost, quality of project execution, and closing out the project. The project manager is responsible for coordinating and integrating activities across multiple functional lines and managing stakeholder communications.
    12. Critical Program or Project Manager. Program or project managers of designated critical programs or projects shall be accountable for leading implementation efforts to successfully complete or administer a critical program or project and for reporting status and issues to Treasury leadership, as appropriate.
  5. REFERENCES.
    1. Public Law 114–264, “Program Management Improvement Accountability Act (PMIAA),” dated December 14, 2016.
    2. Public Law 115–88, “Federal Information Technology Acquisition Reform Act Enhancement Act (FITARA),” dated November 21, 2017.
    3. OMB Circular A-11, “Preparation, Submission, and Execution of the Budget,” dated June 2019.
    4. OMB Memorandum M-18-19, “Improving the Management of Federal Programs and Projects through Implementing the Program Management Improvement Accountability Act (PMIAA),” dated June 25, 2018.
    5. Office of Federal Procurement Policy (OFPP) Memorandum, “Revisions to the Federal Acquisition Certification for Program and Project Managers (FAC-P/PM),” dated December 16, 2013.
    6. Treasury Order 102-28, “Strategic Management Delegation of Authority”, dated July 12, 2024.
    7. Treasury Directive 12-11, “Authorities of the Senior Procurement Executive,” dated May 8, 2023.
    8. Treasury Directive 76-01, “Department of the Treasury Acquisition Regulation and Department of the Treasury Acquisition Procedures,” dated January 25, 2015.
    9. Treasury Directive 81-01, “Treasury Information Technology (IT) Programs,” dated October 20, 2022.
    10. Treasury Policy, “Federal Acquisition Certification for Program and Project Managers,” dated March 2016.
  6. OFFICE OF PRIMARY INTEREST. Office of Strategy, Planning and Performance Improvement (OSPPI) under the Office of the Assistant Secretary for Management (ASM).

 

/S/
Aditi Hardikar
Assistant Secretary for Management 

Attachment: Treasury Directive Publication 12-81 (click on title to view attachment)