The US Senate has unanimously approved the Program Management Improvement and Accountability Act (S1.550). The Act has now cleared both chambers and will go back to the President for signature. PMI is pretty excited about the bill – they have been vocal about their endorsement of the law and see it as a good thing for both the US federal government and Project Management professionals.

So let’s take a look at the Act and what it will mean for the Project Management Profession. The Act requires the Office of Management and Budget to:

adopt and oversee implementation of government-wide standards, policies, and guidelines for program and project management for executive agencies;

chair the Program Management Policy Council (established by this Act);

establish standards and policies for executive agencies consistent with widely accepted standards for program and project management planning and delivery;

engage with the private sector to identify best practices in program and project management that would improve federal program and project management;

conduct portfolio reviews to address programs identified as high risk by the Government Accountability Office (GAO);

conduct portfolio reviews of agency programs at least annually to assess the quality and effectiveness of program management; and

establish a five-year strategic plan for program and project management.

To make sure the Act has a genuine impact, the bill states that the head of every major federal agency must assign a Program Management Improvement Officer. The role of the officer is to implement agency program management policies and develop a strategy for enhancing the role of program managers. Furthermore, the US Government Accountability Office is obliged to issue a report within three years of enactment, examining the effectiveness of:

the standards, policies, and guidelines for program and project management;

the strategic plan;

Program Management Improvement Officers; and

the Program Management Policy Council.

Why is the government doing this? According to research by PMI, only 64% of government strategic initiatives ever meet their goals and business intent. They calculated that the government entities waste $101 million for every $1 billion spent on projects and programs. The research also shows that these best practices result in improved efficiency and less money wasted. Most importantly, organizations see more projects delivering expected value to stakeholders on time and within budget.

The government is banking on this investment in Project and Program management saving money and ensuring more strategic initiatives are successful. Or, to paraphrase PMI’s President and Chief Executive Officer Mark A. Langley, it will increase the value that Americans receive for their tax dollars.