Detailed Information on the
Census Bureau: Economic Census Assessment

Implement Economic Census response improvement plan.

Continue implementing a plan to improve electronic response rates in the 2007 Economic Census.

Pursue additional independent evaluations of the economic census.

Measure: Response rate for the Economic Census. *Implies cycle target and actual (e.g., "2002" refers to the 2002 Economic Census cycle.)

Explanation:This measure is calculated by dividing the number of establishments that mail in a questionnaire by the total number of establishments that received a questionnaire by mail.

Measure: Number of Economic Census data products released. *Implies cycle target and actual (e.g., "2002" refers to the 2002 Economic Census cycle.)

Explanation:Data products include industry series, geographic area series, subject series (including product lines and merchandise line sales), comparative statistics between the 1997 and 2002 Economic Censuses, and e-commerce statistics.

Measure: Internal review of the Economic Census content, reporting methods, data processing, data products, and dissemination methods. *Implies cycle target and actual (e.g., "2002" refers to the 2002 Economic Census cycle.)

Explanation:A comprehensive, internal review of the Economic Census cycle should help identify improvements for the next cycle. For the 2007 Economic Census, the program is exploring the possibility of having the Conference on Research in Income and Wealth host a conference to evaluate the proposed content.

Measure: Efficiency measure based on unit cost. This is based on the Economic Census processing costs incurred by the National Processing Center (NPC) as compared to the number of data items captured. *Implies cycle target and actual (e.g., "2002" refers to the 2002 Economic Census cycle.)

Explanation:This unit cost measure highlights the Economic Census NPC processing costs for each data item captured during the two years of census processing. 2002 unit cost is based on estimated total cycle costs of $34 million divided by 206 million data items captured.

Measure: Efficiency measure based on unit cost. This is based on the full cycle cost of the Economic Census as compared to the GDP. *Implies cycle target and actual (e.g., "2002" refers to the 2002 Economic Census cycle.)

Explanation:This unit cost measure highlights the total Economic Census cycle costs compared to all the information covered for the GDP. 2002 Cycle estimated cost per % of GDP coverage is $3.8 million.

Measure: Detailed project plan for all phases of the Economic Census. *Implies cycle target and actual (e.g., "2002" refers to the 2002 Economic Census cycle.)

Explanation:Milestone measure that supports the long-term goal of conducting the Economic Census.

Measure: Initial mailing of 5 million Economic Census. *Implies cycle target and actual (e.g., "2002" refers to the 2002 Economic Census cycle.)

Explanation:Milestone measure that supports the long-term goal of conducting the Economic Census.

Measure: Release of the Economic Census advance report. *Implies cycle target and actual (e.g., "2002" refers to the 2002 Economic Census cycle.)

Explanation:The advance report shows a snapshot of the economy at broad NAICS levels. It marks the beginning of the data dissemination process for the Economic Census and is an indicator of the ability of the Economic Census program to meet future dissemination dates.

Measure: Imputation rate. *Implies cycle target and actual (e.g., "2002" refers to the 2002 Economic Census cycle.)

Explanation:The imputation rate differs from the response rate in that it measures the percent of data estimated for using an imputation methodology, whereas the response rate measures the actual response over the number of units surveyed. This will be a new measure for the 2007 Economic Census.

Is the program purpose clear?

Explanation: The Economic Census provides the Nation with comprehensive and detailed information about the changing structure of the U.S. economy and serves as the statistical foundation for continuing economic analyses by government and businesses.

Evidence: Title 13 U.S.C. §131; DOC FY 2004 -2009 Strategic Plan; Census Bureau 2004-2008 Strategic Plan; FY 2005 President's Budget and Annual Performance Plan; Economic Programs Directorate Strategic Plan.

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

Explanation: The Economic Census addresses the need to provide comprehensive economic statistics not available from the private sector due to market failure in providing this type of public good. Further, the necessity of protecting the confidentiality of respondent's data and ensuring the impartiality of economic estimates is addressed by having the Federal government conduct the Economic Census. Conducted every five years, the Economic Census is the primary source of facts about the structure and function of the economy, providing essential information to government and businesses to help guide sound decisions.

Evidence: Confidentiality protections in Title 13, U.S.C. Economic policymakers in federal, state, and local governments use Economic Census data to project trends, guide economic development, and assess the impact of economic policy. Businesses use Economic Census data for many purposes including calculating market share, making decisions about site location, and evaluating new business opportunities.

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

Explanation: The Economic Census is the only source of comprehensive, detailed information about the US economy. The Census collects information about the number of establishments (or companies), number of employees, payroll, and measures of output (e.g. sales, receipts, revenue) for businesses from over 1,000 industry categories, covering 84 percent of all U.S. goods and services (The Censuses of Agriculture and Government cover an additional 14 percent). Economic Census data are also available at detailed levels of geography (e.g. Nation, states, counties, MSAs, and places with 2,500 or more inhabitants).

Evidence: Title 13, U.S.C.; DOC Strategic Plan; Census Bureau Strategic Plan; Economic Programs Directorate Strategic Plan; and OMB 'Paperwork Reduction Act Submissions' for the 2002 Economic Census reporting forms.

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

Explanation: The Economic Census covers 84 percent of the U.S. economy in its basic collection of establishment statistics. In general, the program design is considered efficient because the program uses Federal administrative records to obtain information from most small establishments (approx. 18 million in 2002). This helps to minimize reporting burden from small businesses. The program sends questionnaires to larger establishemts (approx. 5 million in 2002). The Econ. Census program also conducts ongoing consultation and collaboration with data users to ensure needs are being met (e.g. by changing questionnaire design and content, offering electronic reporting, accelerating data releases, and/or offering new data products). After each Economic Census, an extensive evaluation is conducted. For example, problems identified in the 1997 Economic Census resulted in significant content expansion to the 2002 Economic Census, increased products, improved timeliness, and re-engineering of its collection infrastructure to improve response and reduce operating costs.

Evidence: DoC Strategic Plan; Census Bureau Strategic Plan; Economic Census Goal Statement in FY 2005 President's Budget; and Oct 2002 memo to ESA Under Secretary from BEA Director regarding accelerated estimates. OMB 'Paperwork Reduction Act Submissions' for the 2002 Economic Census reporting forms.

Is the program effectively targeted, so that resources will reach intended beneficiaries and/or otherwise address the program's purpose directly?

Explanation: In general, Econ. Census program resources are effectively targeted to reach beneficiaries and address the program's purpose. The program collaborates with both public- and private-sector partners to ensure that user needs are being meet. The Census Bureau's Advisory Committee also reviews the program to ensure it address the agencies goals and objectives and meets the needs of data users. For example, the 2002 Economic Census consisted of eight core program components and four related data collections. The core components were separately tailored for each major domestic business sector and provided comprehensive information on the structure of 84 percent of the U.S. economy. The related data collections were more specialized and provided supplementary information on businesses owned by minorities, supplementary information on expenditures and expenses for non-goods producing businesses, detailed information on vehicle characteristics, and periodic census information on the economies of Puerto Rico and the island territories.

Evidence: Title 13 U.S.C.; Economic Census Goal Statement in the FY 2005 President's Budget; Census Advisory Committee reports; various interagency memorandums concerning the Economic Census; feedback received from private-sector associations.

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 performance goal of the Economic Census is to support the economic foundation of the U.S. by producing accurate, timely, and relevant benchmark measures of the economy. Long term measures include the number and release schedule of data products, data quality (as measured by response rates, imputation rates, internal reviews, comparisons to IRS administrative data, and feedback from users), and efficiency (as measured by the unit cost of processing costs and the cost of estimating a percentage share of GDP over the total cycle cost of each census). The program also uses IRS payroll and employment data to validate employment, receipts, and payroll entries collected in the Economic Census.

Evidence: DoC Strategic Plan; Census Bureau Strategic Plan; FY 2003-2005 Annual Performance Plans; FY 2003 Performance & Accountability Report; and FY 2004-2006 Economic Programs Directorate Strategic Plan.

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

Explanation: In general, the targets of the long-term measures are ambitious. The 2007 Econ Census performance targets include: obtaining an 86% response rate, a 2% improvement over the 2002 rate; improving data quality by decreasing the imputation rate by 5%; releasing all Economic Census data reports on schedule; expanding service sector coverage, and increasing the use of electronic reporting by 20%. Following the review of the 2002 Econ Census, the 2007 Econ Census will likely have additional coverage improvements and possible changes to the release schedule to meet stakeholder needs. The Bureau should consider making the unit cost measures more ambitious.

Evidence: DOC Strategic Plan; Census Bureau Strategic Plan; FY 2005 President's Budget; FY 2003-2005 Annual Performance Plans; October 2002 memorandum to ESA Under Secretary from BEA Director regarding accelerated estimates of industry Input-Output (I-O) accounts; the 2002 Economic Census release schedule; and the Economic Programs Directorate Strategic Plan.

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: The Economic Census has several annual performance measures that relate to the long-term goals and measures of the program. These annual measures include: preparation of a detailed project plan for all phases of an Econ Census, mailing of questionnaires, releasing data products, and offering help desk assistance to respondents.

Evidence: FY 2003-2005 Annual Performance Plans; FY 2003 Performance and Accountability Report

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

Explanation: In general, the annual targets of the Econ Census program are ambitious. The 2002 Econ Census provided a significant expansion to content and coverage, as well as an accelerated release schedule. The accelerated schedule results in a 4 month improvement in the release time of the manufacturing industry series, a 11-14 month improvement in the product class data release, a 20 month improvement in the first release of the merchandise and commodity line data. To curb lower than expected response rates in FY 2003, the program conducted several previously unplanned outreach activities including more telephone non-response follow-up. The program also offered the 24/7 Internet help-desk a month ahead of schedule. Following the review of the 2002 Econ Census, the 2007 Econ Census will likely have additional changes to its annual targets to include more electronic reporting, and possible changes to the release schedule to meet stakeholder needs.

Evidence: FY 2003-2005 APPs; and FY 2003-2005 President's Budgets

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 Economic Census program regularly consults with its partners to ensure commitment to program goals. The major federal partners are BEA, BLS, and the Federal Reserve Board. Feedback is provided by the BEA through regular quarterly meetings. Meetings with BLS and the Federal Reserve Board are on an as needed basis. The Census Bureau is also a member of the Interagency Council on Statistical Policy, the Federal Economic Statistics Advisory Committee, the Economic Classification Policy Committee (ECPC), and other joint organizations and meets regularly with staff from these agencies to ensure everyone is working together toward the program goals. Census and BLS also share industry classification information as evidenced by a MOU between the two agencies in which BLS provides industry codes to Census for the purposes of improving the completeness, accuracy, and efficiency of Census programs and to reduce the reporting burden that would result from separate Census collections for these data.

Evidence: October 2002 memorandum to ESA Under Secretary from BEA Director regarding accelerated estimates of industry I-O accounts. BEA and the Census Bureau reduced the time to release the benchmark I-O accounts from 9 to 5 years. The Census Bureau's advisory committee expressed support for the goals of the 2002 Economic Census, and continues to assess and advise the program on efforts to meet these goals. The various Federal agencies that will use the Economic Census results also have endorsed the goals through inter-agency efforts such as the Interagency Council on Statistical Policy.

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: External and internal evaluations are conducted on an as-needed basis to support and evaluate program effectiveness. The Census Advisory Committee of Professional Associations regularly makes recommendations on the scope, content, and methodology of the Econ. Census. A 2003 NAS Panel on BTS Programs reviewed the Commodity Flows Survey (CFS). A 2004 DOC OIG report assessed Census performance measures. In the 1990s, the Economic Classification Policy Committee examined the SIC classification system and recommended adoption of NAICS because it was more reflective of the US economy. In 1989, a CEA Economic Policy council working group report, comprised of representatives of Federal agencies, developed recommendations to improve the quality of economic statistics. A 1986 NRC report assessed the statistics of service industries. During the fall of 2004, the program plans to begin a comprehensive review of the 2007 Economic Census program components and measures with the Bureau of Economic Analysis (BEA). After the review is completed, the program plans to meet with other governmental agencies, industry groups, and major data users to seek their input. The program is also considering additional independent evaluations of the proposed 2007 Economic Census content.

Evidence: NRC reports; OIG reports; Economic Classification Policy Committee; CEA Economic Policy report; Letter from NAS Panel to Review BTS Programs;

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: Economic Census budget requests are tied to the accomplishment of performance goals and are presented in an integrated manner within the budget. Specific performance measures, targets, and unit costs are embedded in the budget. In addition, performance goals contained in the Census Bureau's Strategic and Annual Performance Plans are linked to budget exhibits.

Evidence: FY 2005 President's Budget request; and FY 2003 -2005 Annual Performance Plans. Unit cost information for the 2002 Economic Census is contained in the Exhibit 12 and specific performance measures and targets for 2005 in the Exhibit 13. Additonal performance measures and targets are included in the FY 2003-2005 Annual Performance Plans.

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

Explanation: The DOC, Census Bureau and Economic Programs Directorate review and update their strategic plans periodically. The review involves senior staff and solicits comments from staff, Census Advisory Committee and data users. The Economic Programs Directorate is currently in the process of updating its plan to extend its coverage through September 2008. Correction of strategic planning deficiencies have resulted in significant improvements to process and cost efficiencies, data quality, and respondent reporting. Specific changes to the 2002 Econ Census included an expanded and more relevant form content, replacing and upgrading aging equipment, expansion of electronic reporting and Internet help site, and improvement in the timeliness of data releases.

Evidence: DoC, Census Bureau, and Economic Programs Directorate's strategic plans; FY 2005 President's Budget and APP.

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: Econ Census program collects performance data on response rates (by type of questionnaire, establishment, and paper and electronic submissions), extensive feedback from public and private data users to ensure the Econ Census accurately profiles and describes the economy and that questionnaires are meaningful to respondents, and the program also monitors the processing and release schedules of Econ Census products. Information collected on response rates to the 2002 Econ Census lead to the implementation of 24/7 Internet Help Desk earlier than expected as well as targeted outreach activities to improve response rates. The Economic Census also maintains a detailed project management system that manages all aspects of Economic Census operations.

Evidence: FY 2003-2005 Annual Performance Plans; and FY 2005 President's Budget. Actual performance is reported in various monthly, quarterly, and annual cost and performance reports, financial reports and Performance Accountability Reports. The Economic Census project management system provides information about the status and progress of sample and form design, data collection, data keying, analysis, and dissemination is tracked and monitored daily by program managers. In addition, Economic Census managers are provided monthly data on Economic Census costs.

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: Economic Census managers and partners are held accountable for cost, schedule, and performance results. Annual performance plans for managers include goals and measures linked to the strategic goals of the Economic Census. Individual performance plans contain performance standards and targets for areas the manager is responsible for. All work, including contracts, is carefully monitored.

Evidence: Individual performance plans. Performance plans are a part of each manager's annual review and evaluation. In addition, at least two interim reviews are conducted.

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

Explanation: Actual obligations are consistent with budget requests. Over 99% of the budgetary resources for the 2002 Economic Census were obligated as of the end of FY 2003.

Evidence: FY 2003 Year End Financial Report

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 Econ. Census program has efficiency measures (unit cost of processing costs and % of GDP). To reduce respondent burden, the program tailors questionnaire forms to respondent needs and obtains much of the basic econ. census data for smaller establishments from administrative records. Labor intensive processes of the Economic Census are regularly reviewed by management and, where inefficiencies are identified, they are redesigned or modified. In the 2002 Econ. Census, extensive use of administrative record data reduced respondent burden and reduced operating and processing costs at the Census Bureau The program also offered electronic reporting in the 2002 Econ. Census and nearly 500,000 establishments filed electronically; representing about 12% of the reports filed. During the 1997 Econ Census, laser printing enabled the construction of multi-form packages; resulting in improved mailing accuracy, timing, and cost savings.

Evidence: FY 2005 President's Budget; Economic History document; Electronic Reporting documentation; Keystroke metrics; 'Paperwork Reduction Act Submissions' for the 2002 Economic Census reporting forms

Does the program collaborate and coordinate effectively with related programs?

Explanation: The Econ Census program works extensively with other federal statistical agencies including BEA, BLS, IRS, and the Federal Reserve Board; participates in the Interagency Council on Statistical Policy (ICSP), the Federal Economic Statistics Advisory Committee, the Conference on Research in Income and Wealth (CRIW), Economic Classification Policy Committee (ECPC), and other joint organizations; and works closely with the National Association for Business Economics (NABE) and other private-sector organizations.

Evidence: Coordination efforts with the ICSP has resulted in the FedStats website, initiated by the ICSP in May 1997, and has contributed to the passage of the Confidential Information Protection and Statistical Efficiency Act of 2002 (CIPSEA), which in part permits the sharing of business data among BEA, BLS, and Census. Because the Econ Census contributes an important part of the framework for BEA's composite measures, such as the GDP and input-output analyses, the two agencies worked together to accelerate the release of data from the 2002 Econ Census to enable BEA to reduce the time to release the benchmark I-O accounts from 9 to 5 years (Oct 2002 memorandum to ESA Under Secretary from BEA Director). MOU between Census and BLS for the joint project in which BLS provides industry codes to Census for the purposes of improving the completeness, accuracy, and efficiency of Census programs and to reduce the reporting burden that would result from separate Census collections for these data.

Does the program use strong financial management practices?

Explanation: The Census Bureau's financial management practices have resulted in a clean opinion on its financial audit since FY 1999.

Evidence: DOC Financial Audits Reports

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

Explanation: All aspects of the Economic Census are now managed using project management techniques and tools. All program managers have received Project Management training and areas of competency have been identified that managers must meet.

Evidence: Project Management Master Certificate program

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

Explanation: The Econ. Census program has made consistent progress acheiving its long-term performance goals, by successfully conducting the Economic Census to obtain statistically reliable data to meet the needs of policymakers, businesses, non-profit organizations, and the public by furnishing an important part of the framework for composite measures such as the GDP and input-output analyses. The program accomplished its long-term goals including mailing out 5 million census forms, providing an electronic reporting capability for 3.5 million participating businesses (or to 70% of respondents receiving questionnaires), and obtaining an 84% response rate for the 2002 Econ. Census. The program also accelerated the release schedule of Econ. Census products to support BEA's plans to improve the timeliness of the I-O accounts. The 2002 Econ Census also expanded coverage of the service sector, collected information on e-commerce, and produced more data on supply-chain relationships.

Evidence: FY 2003 DOC Performance and Accountability Report.

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

Explanation: FY 2003 and 2004 goals met included the initial mail-out of 5 million Economic Census forms; establishment of the 24/7 Internet/Help Desk; offering more than 3.5 million businesses the opportunity to file electronically via the Internet; and achieving an 84% response rate for the 2002 Economic Census cycle. Although the overall response rate was met, the target date of September 2003 slipped by three months. One of the major performance goals for FY 2004, the release of the Advance Report, has been successfully met, and other performance targets are on schedule.

Evidence: DOC Strategic Plan; Census Bureau Strategic Plan; Economic Programs Directorate's Strategic Plan 2004-2006; Census Bureau FY 2003-2005 Annual Performance Plans; FY 2003 Performance and Accountability Report; and Economic Census release schedule.

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

Explanation: In general, the Economic Census uses its resources efficiently to achieve a high-quality result. The 2002 Economic Census collected data on over 23 million establishments. It worked to minimize respondent burden and processing costs by using administrative records for 18 million establishments (which is over 80% of all establishments); reduced keying costs by using a newly designed key from image data entry system; and established a 24/7 Internet/Help Desk that reduced the volume of telephone calls handled compared to the 1997 Economic Census. The program also offered electronic reporting to 3.5 million establishments (or approx. 70% of establishments that received a questionnaire by mail). However, only 12% of the total reports were filed electronically. As electronic reporting can save money and improve accuracy, the program is evaluating the reasons for the electronic reporting response rates in the 2002 Econ. Census. The program plans to improve the electronic reporting software by soliciting feedback from respondents on their needs for electronic reporting and by providing demonstrations of the new software for respondents before the 2007 Econ. Census.

Evidence: FY 2005 President's Budget submission; Census Bureau Strategic Plan FY 2004-2008; Economic Programs Directorate's Strat Plan 2004-2006; FY 2003-2005 Annual Performance Plans; FY 2003 Performance & Accountability Report

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

Explanation: While other countries conduct economic censuses, the Economic Census is considered to have one of the broadest levels of scope and coverage and collected and published data.

Evidence: FY 2003 PAR; FY 2005 President's Budget submission.

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

Explanation: In general, independent evaluations of the Economic Census processes and performance indicate the program is efficient and achieving results. The program has incorporated several recommendations from various evaluations and studies including the following: expanded coverage of the service sector and non-profit activities, changed the classification systems from SIC to NAICS to better describe the economy and to be consistent with an international agreement with Canada and Mexico, included census questions on e-commerce, and accelerated the release schedules. The program is working with BTS to continue to improve the usefulness and cost-effectiveness of the Commodity Flows Survey (CFS), a survey that is part of the Econ. Census data collection program.

Evidence: Watkins Commission Report; NRC reports; GAO/OIG reports; Economic Classification Policy Committee; CEA Economic Policy report; GNP Improvement Project report; Letter from NAS Panel to Review BTS Programs