Performance Budgeting: How NASA and SBA Link Costs and Performance
Dr. Blanchard’s report begins with a description of the statutory and conceptual foundations of costing requirements. He follows with a framework for integrating costs and performance. He then tells the story of how two very different federal agencies successfully met the PMA’s performance costing requirements. Blanchard draws upon published reports and articles, as well as his own experience leading PMA reform efforts at the National Aeronautics and Space Administration (NASA) and the Small Business Administration (SBA). NASA’s Full Cost initiative relies on a statistical-based approach to allocating indirect costs that cannot be directly attributed to program outputs. SBA’s survey-based approach uses an Activity-Based Costing model.
Blanchard concludes his report with practical recommendations based on the advantages and disadvantages of the two approaches and specific steps that agencies can take to improve their existing procedures and policies. Financial ManagementManaging for Performance and Results