HHS - HHS Budget

	2003	2004	2005	2005 +/-2004
Expenses............	$491	$517	$545	+$28
FTE..............	1,289	1,419	1,419	0

The PSC was created to streamline and minimize duplication of traditional administrative services. The PSC provides services on a competitive, fee-for-service basis to customers throughout HHS, as well as to at least 14 other Executive departments and 20 independent Federal agencies. The activities and services of the PSC are supported through the HHS Service and Supply Fund, a revolving fund. The Fund does not receive appropriated resources, but is funded entirely through charging its customers for their use of services and products. Services are provided in six broad areas: human resources, financial management, administrative operations, strategic acquisitions service, Federal occupational health, and HR centers. The customers of the PSC include HHS agencies and other Federal agencies and organizations, such as components of the Departments of Agriculture, Commerce, Defense, Education, Energy, Housing and Urban Development, Interior, Justice, Labor, State, Transportation, Treasury, Veterans Affairs, and the U.S. Postal Service.

The FY 2005 estimated expenses for the Human Resources Service (HRS) are $53 million, representing an increase of $1 million above the FY 2004 funding level. The increase of $1 million is for increases in pay, rent, and contractual costs. HRS provides an extensive array of personnel and payroll systems administration and management, training, and payroll services. These include automated personnel and payroll systems support, equal employment opportunity, and workforce development. During FY 2004, the personnel operations portion of HRS was consolidated into the Human Resources Centers, described in a separate section entitled "Human Resources Centers" below.

The FY 2005 estimated expenses for the Financial Management Service (FMS) are $56 million, the same as FY 2004. FMS supports the financial operations of HHS and other departments through the provision of payment management services for Departmental and other Federal grant and program activities; accounting and fiscal services; debt management and travel management services; and rate review, negotiation, and approvals for departmental and other Federal grant and program activities to HHS and other Federal agencies.

The FY 2005 estimated expenses for the Administrative Operations Service (AOS) are $90 million, an increase of $2 million above the FY 2004 level. This increase reflects anticipated increases for pay, rent, and contracts. AOS provides a wide range of administrative and technical services within the Department, both in headquarters and in the regions, and to customers throughout the Federal Government. The major areas of service are real and personal property management, technical support and communications management, management of regional contracts for administrative support, freedom of information act services, and management of the business functions of the PSC.

The FY 2005 estimated expenses for the Federal Occupational Health Service (FOHS) are $195 million, an increase of $22 million above the FY 2004 level. The increase of $22 million represents anticipated increased reimbursements from other Federal agencies. The FOH provides occupational health services, including health, wellness, employee assistance, work/life, safety, and environmental and industrial hygiene-related services to more than 160 Federal components across the country.

The FY 2005 estimated expenses for the Strategic Acquisition Service (SAS) are $99 million, an increase of $2 million above the FY 2004 level. The increase reflects anticipated increased reimbursements. The SAS is responsible for providing leadership, policy, guidance, and supervision to the procurement operations of the PSC and for improving procurement operations within HHS. The SAS provides strategic sourcing services; acquisition management; and provides pharmaceutical, medical, and dental supplies to HHS and other Federal agencies. The SAS will streamline procurement operations in HHS through activities such as the reduction of duplicate contracts, the use of consolidated contracts, and implementation of new procurement practices designed to provide higher quality procurement services.

The FY 2005 estimated expenses for the Human Resources Center (HRC) are $46 million, an increase of $1 million above the FY 2005 level. The increase is for pay and other costs. The HR Centers represent a consolidation of human resources services within the Department, with sites located in Rockville, Baltimore, and Atlanta. The HR Centers will implement strategic human capital strategies designed to identify, recruit, hire, and retain employees with the skills to accomplish the mission of HHS.

FY 2005 Budget in Brief

Program Support Center