TAKING STOCK & MAKING CHANGE...be a continued reduction in related contracts. As always, Treasury...

TAKING STOCK & MAKING CHANGE

Office of Minority and Women Inclusion

Departmental OfficesU.S. Department of

the Treasury

FY

&

Annual Report to Congress

TABLE OF CONTENTSContentsMESSAGE FROM THECHIEF DIVERSITY & INCLUSION OFFICER……………………………………………………………………………………1EXECUTIVE SUMMARY………………………………………………………………………………………………………………3OVERVIEW………………………………………………………………………………………………………………………………5LEADERSHIP COMMITMENT & STRATEGIC PLAN …………………………………………………………………………7

BUSINESS DIVERSITY & INCLUSION ……………………………………………………………9Minority Owned and Women Owned Business Utilization……………………………………………………………9 Trends in Minority Owned Business Utilization Trends in Women Owned Business Utilization Trends in MWOB Small Business Utilization MWOBParticipationinSpecificAcquisitionCategoriesInitiatives & Accomplishments ……………………………………………………………………………………………………17 Outreach Accountability GoodFaithEffortMandateWORKFORCE DIVERSITY & INCLUSION ……………………………………………………………21WorkforceDemography…………………………………………………………………………………………………………21 Racial/EthnicandGenderProfiles Benchmark Comparisons SeniorManagement AllGradeGroupings HiringandAttrition Mission Critical Occupations New IQ Inclusion Index Initiatives & Accomplishments ……………………………………………………………………………………………………31 Accountability Quantitative and Qualitative Analysis Outreach InclusiveDiversityAwarenessandTraining Economic Empowerment Challenges……………………………………………………………………………………………………………………………35CONCLUSIONS AND FISCAL YEAR 2016 PLANS …………………………………………………36Business Diversity and Inclusion …………………………………………………………………………………………………36Workforce Diversity and Inclusion………………………………………………………………………………………………37

1fy2016 Annual Report to Congress

The values of diversity and inclusion are fundamental priorities within the Treasury Departmental Officers(headquarters).Wetakeseriouslyourcollectivecommitmenttocreateaworkplaceinwhichinclusivediversitybecomesembeddedwithinitsculturalfabric.Everyemployeeisencouragedtousethesebasicvaluesintheirdailyworktofurtherbuildandsustainaninclusiveworkplaceenvironment.Furthermore,itisexpectedthatthecharacteristicsembodiedinthesevalueswillbevisible,intentional,andcontinualinallthatwedoeveryday.Weknowthatsuchbehaviorsholdthepromiseofincreasedproductivity,creativity,andinnovationinourservicetotheAmericanpeople.

Taking Stock and Making Change FY16isthesixthannualreporttoCongressthatdescribesthewayswehave implemented the mandates of the Dodd-Frank Wall Street Reform and Consumer Protection Act(Dodd-FrankAct)§342(P.L.111-203).Ourcommitmenttodiversityisapparentthroughthevariousdisplaysofdemographicrepresentationacrossourworkforce.But,beyonddemography,thisreportdescribesoureffortstowardoptimalinterpersonalinteractionsbetweenco-workerstoleveragethefullrangeofperspectivesofourdiverseworkforce.Forinstance,wehavetrainedmanagersandsupervisorstobepersonallyaccountabletoidentifyandconfrontunintentionalbias.Employeesatalllevelsareexpectedtodemonstratefairness,openmindedness,cooperation,supportiveness,andempowerment.Wealsohaveeffortstoidentifyandovercomebarriersthatmayinhibitfullparticipationinourworkplace.

Thisreportalsoprofilesoursuccessestowardensuringfairutilizationofminority-ownedandwomen-ownedbusinessesinourbusinessactivitiestothemaximumextentpossible.FY2016wasaparticularlystrongyearofcontractingwithminority-ownedandwomen-ownedbusinesseswithoutregardtosize,butparticularlywithsmalldisadvantagedbusinesses(whicharelargelyminorityowned)andsmallwomen-ownedbusinesses.

Taking Stock and Making Change FY16 is our opportunity to tout the successes toward continuously improvingdiversityandinclusionthroughoutTreasuryDepartmentalOffices.But,bythesametoken,westillhavemuchmoreworktodo.

MESSAGE FROM THE CHIEF DIVERSITY &

INCLUSION OFFICER

Lorraine Cole, Ph.D. ChiefDiversityandInclusionOfficer

OfficeofMinorityandWomenInclusionDepartmentalOffices

U.S.DepartmentoftheTreasury

Lorraine Cole, Ph.D.ChiefDiversityandInclusionOfficerOfficeofMinorityandWomenInclusion


EXECUTIVE SUMMARY

BUSINESS DIVERSITY: Despite reductions in the overall Treasury-wide procurement budget and the absence of mandated contracting goals for other than small businesses,thecommitmenttodisadvantagedbusinessutilizationwithinTreasuryDepartmentalOfficesremainedstrong.InFY2016,TreasuryDepartmentalOffices’totalprocurementcontractsforgoodsandservicesrepresented$332millioninobligations(with1,973contractobligations),with nearly one-third (30.49percent)ofcontractdollarstotalingmorethan$60milliongoingtoeitherminority-ownedorwomen-ownedbusinesses.Atotalof$59million,or18percentof total contracts, was awarded tominority-owned businesses. Furthermore, $57million

or17percentwasawardedtowomen-ownedbusinessesofallsizes.Amongthesmallbusinesscategories,contractobligations tosmalldisadvantagedbusinessesrepresented13percentofallDepartmentalOfficescontracts;andcontractobligationstowomen-ownedsmallbusinessesrepresented15percent–bothwellabovethe5percentstatutorygoal.

AchallengetoimplementingthecontractordiversityprovisionsofDodd-FrankAct§342istheoutlookforopportunitiesintheforeseeablefuture.Overall reducedbudgets fordiscretionaryspendingare likely tohavean impactonavailablecontractingopportunities.Similarly,strategicsourcinginitiativestoincreaseefficienciesmayfurtherreducespendingandmayreducethenumberofvendorsreceivingawards.Inaddition,asprogramsrelatedtotherecentfinancialcrisiscontinuetowinddown,suchastheTroubledAssetReliefProgram,therewillbeacontinuedreductioninrelatedcontracts.Asalways,TreasuryassuresthatallcontractingisconductedinamannerconsistentwiththeEqualProtectionClauseoftheConstitution,whichprohibitsmanyformsofaffirmativeactionandtheestablishmentofquotasbasedonraceandgender,amongotherthings.

The Office of Minority and Women Inclusion (OMWI)intheDepartmentoftheTreasuryDepartmentalOfficeswasestablishedbytheDodd-FrankWallStreetReformandConsumerProtectionAct(Dodd-FrankAct)§342(P.L.111-203)and is responsible forallmatters relating todiversity inmanagement,employment,andTreasury’sbusinessactivities inDepartmentalOffices,excludingtheenforcementofstatutes,regulations,orexecutiveorderspertainingtocivilrights.ThissixthannualreportissubmittedtoCongresspursuanttotheDodd-FrankActregardingtheactionstakenbyTreasuryandtheOMWIduringFiscalYear(FY)2016.

WORKFORCE DIVERSITY: In FY 2016, the Treasury Departmental Officespermanentworkforceof 1,894 representedabout 2percentof the total Treasury-wideworkforce. Approximately one-third (36%)of TreasuryDepartmentalOfficespermanentemployeesacrossallgradelevelsareracialorethnicminorities.Blacksrepresent the largest of theminority groups at 21 percent. Asians andHispanicscomprise 9percent and5percent, respectively. NativeHawaiianorOther PacificIslanders,AmericanIndianorAlaskaNatives,andthosewhoidentifythemselvesasTwoor More Races each represent less than 1 percent of the total Treasury Departmental Officespermanentworkforce.Withinseniormanagementpositions,minoritiesrepresent17percentofthepermanentGS-15level,and17percentofthepermanentseniorexecutiveservice(SES)positions.WithregardtogenderrepresentationwithinTreasuryDepartmentalOffices,45percentarewomenand55percentaremen.Withinseniormanagementpositions,womenfill39percentofthepermanentGS-15leveland35percentofthepermanentSESpositions.

TreasuryDepartmentalOfficeshasfacedsignificantchallengestoimplementingtheworkforcediversityprovisionsoftheDodd-FrankAct§342.Thethreemostprominentchallengeshavebeenbudgetaryrestraints,retentionrates,andperceptionsoftheexistingworkplaceculture.First,thetightbudgetenvironmentthatTreasuryhasbeenoperatinginrecentyearshashadadirectimpactonhiring.Therefore,althoughtherewillbeacontinuedneedforproactivestrategiestoensurebroadoutreachtodiversecandidatepools,therewillbefeweravailablepositions.Inaddition,Treasurymustensurethatallhiringpracticesareconductedinamannerconsistentwithfederallaw,whichconflictswithsomeformsofaffirmativeactionandprohibitstheestablishmentofquotasbasedonrace/ethnicityandgender.Second,therespectiveattritionratesofHispanicsandwomenexceedtheirhireratesintheTreasuryDepartmentalOfficespermanentworkforce.Third,basedontheNewIQInclusionIndexdevelopedbytheOfficeofPersonnelManagement,itisevidentthatworkplaceinclusionischallengingacrossfederalagencies.Therefore,buildingamoreinclusiveworkplaceenvironmentwithinTreasuryDepartmentOfficeshasbeenpartofthecoordinatedefforttotransformtheworkplacecultureacrossthefederalgovernment.


U.S. Department of the Treasury MissionMaintainastrongeconomyandcreateeconomicandjobopportunitiesbypromotingconditionsthatenableeconomicgrowthandstabilityathomeandabroad;strengthennationalsecuritybycombatingthreatsandprotectingtheintegrityofthefinancialsystem;andmanagetheU.S.government’sfinancesandresourceseffectively.

GOALSPromotedomesticeconomicgrowthandstabilitywhilecontinuingreformsofthefinancialsystem

Fairlyandeffectivelyreformandmodernizefederalfinancialmanagement,accounting,andtaxsystems

Createa21stcenturyapproachtogovernmentbyimprovingefficiency,effectiveness,andcustomerinteraction

EnhanceU.S.competitivenessandjobcreation,andpromoteinternationalfinancialstabilityandmorebalancedglobalgrowth

Safeguardthefinancialsystemandusefinancialmeasurestocounter national security threats

12345

ThissixthannualreportissubmittedtoCongresspursuanttotheDodd-FrankWallStreetReformandConsumerProtectionActof2010(Dodd-FrankAct)§342(P.L.111-203)regardingtheactionstakenbyTreasuryandtheOfficeofMinorityandWomenInclusion,DepartmentalOffices(OMWI)duringFiscalYear(FY)2016.1

1.ForthepurposesofthisreportandconsistentwithDoddFrankAct§342(g)(3),thestandardsemployedbytheOfficeofPersonnelManagement(OPM),andtheEqualEmploymentOpportunityCommission(EEOC),thedefinitionusedfortheterm“minority”is:HispanicorLatino;BlackorAfricanAmerican;Asian;NativeHawaiianorOtherPacificIslander;andAmericanIndianorAlaskaNative.

OVERVIEW

U.S. Department of the Treasury Throughoutitsrichhistory,Treasury’scoremissionhasnotchanged.Withnearly100,000employeesinitsranks,TreasuryisstillthestewardoftheU.S.economy–takinginrevenue,payingbills,and,whenappropriate,borrowingandinvestingpublicfunds.Inmorerecentyears,Treasury’srolehasexpandedtobeingaleaderinsafeguardingandgrowingthenation’seconomy.

Treasury is organized into the Departmental Offices, seven operating bureaus, and three inspectors general.The Departmental Offices are primarily responsible for policy formulation, while the bureaus are primarily theoperating units of the organization. Internally, the Departmental Offices are responsible for overall management ofTreasury.

Treasury Departmental Offices

TheOfficeofDomesticFinance

TheOfficeofEconomicPolicy

TheOfficeofGeneralCounsel

TheOfficeofInternationalAffairs

TheOfficeofLegislativeAffairs

TheOfficeoftheAssistantSecretary

forManagement

TheOfficeofPublicAffairs

TheOfficeofTaxPolicy

TheOfficeofTerrorismand FinancialIntelligence

The Treasurer of the United States

Treasury Departmental Offices (Headquarters)

Domestic FinanceworkstopreserveconfidenceintheU.S.Treasurymarket,effectivelymanagefederalfiscaloperations,strengthenfinancialinstitutionsandmarkets,promoteaccesstocredit,andimprovefinancialaccessandeducationinserviceofAmerica’slong-termeconomicstrengthandstability.

Economic Policy reports on current and prospective economic developments and assists in the determination of appropriate economic policies.

The Office of General CounselprovideslegalandpolicyadvicetotheSecretaryandotherseniorDepartmentalofficials.

International AffairsprotectsandsupportsU.S.economicprosperityandnationalsecuritybyworkingtohelpensurethemostfavorableexternalenvironmentforsustainedjobsandeconomicgrowthintheUnitedStates.

Legislative Affairsdevelopsstrategiestoimplementlegislativeinitiatives,communicatesTreasury’spositionstotheCongress,andkeepstheDepartmentinformedofCongressionalobjectives,concerns,activities,andinterests.

The Office of Management and the Chief Financial OfficerareresponsibleformanagingtheDepartment’sfinancialresourcesandoverseeingTreasury-wideprograms,includinghumancapital,informationtechnology,acquisition,anddiversityissues.

Public Affairsdevelopsand implementscommunicationsstrategy for theDepartmentandadvisesofficialswithin theDepartmentanditsbureaushowbesttocommunicateissuesandprioritiesofpublicinterest.

Tax Policy developsandimplementstaxpoliciesandprograms,reviewsregulationsandrulingstoadministertheInternalRevenueCode,negotiatestaxtreaties,andprovideseconomicandlegalpolicyanalysisfordomesticandinternationaltaxpolicydecisions.TaxPolicyalsoprovidesrevenueestimatesforthePresident’sBudget.

Office of Minority & Women Inclusion

Primary Duties

The Office of Minority and Women Inclusion was establishedon January21,2011 inaccordancewith theDodd-FrankWallStreetReformandConsumerProtectionActof2010(Dodd-Frank Act) § 342 (P.L. 111-203). The express statutoryauthority of OMWI covers Treasury Departmental Offices. ForTreasuryDepartmentalOffices,OMWIisresponsibleforallmattersrelatingtodiversityinmanagement,employment,andbusinessactivities,excluding theenforcementofstatutes, regulations,orexecutiveorderspertainingtocivilrights. OMWIisrequiredtodevelop standards for equal employment opportunity and theracial,ethnic,andgenderdiversityoftheworkforce.OMWIisalsorequiredto takesteps toseekdiversity, inamannerconsistentwithapplicable law, in theworkforceofTreasuryDepartmentalOffices at all levels of the organization, but particularly withinseniormanagement.Inadditiontoworkforcediversity,OMWIischargedwithseekingincreasedparticipationofminority-ownedandwomen-ownedbusinessesintheprogramsandcontractsoftheagency.OMWIisresponsibleforestablishingprocedurestodetermine if agency contractors and their subcontractors havemadegoodfaitheffortstoincludeminoritiesandwomenintheirworkforce.2

Terrorism and Financial IntelligencemarshalstheDepartment’sintelligenceandenforcementfunctionswiththetwinaimsofsafeguardingthefinancialsystemagainstillicituseandcombatingroguenations,terroristfacilitators,weaponsofmassdestruction(WMD)proliferators,moneylaunderers,drugkingpins,andothernationalsecuritythreats.Theofficeisresponsibleforthereviewandanalysisofdomesticeconomicissuesanddevelopmentsinthefinancialmarkets.

The Treasurer of the United States chairs theAdvancedCounterfeitDeterrenceSteeringCommitteeand isakeyliaisonwiththeFederalReserve.Inaddition,theTreasurerservesasasenioradvisortotheSecretaryintheareasofcommunitydevelopmentandpublicengagement.

• Develop standards for diversity of the workforceandseniormanagement

• Supportrecruitment/advancementeffortstoward workforce diversity at all levels

• Develop standards for increased minority-owned and women-owned business contracts

• Develop standards for technical assistance to businesses

• Developproceduresforcontractingthatconsiders the diversity of the applicant

• Develop standards to determine whether contractorsandsubcontractorsaremakinga good-faithefforttoincludeminoritiesandwomen in their workforce

• SubmitanannualreporttoCongress

• Conduct data analysis and produce internal reports

• Provide advice and advocacy

2.ItshouldbenotedthatTreasuryDepartmentalOfficesisnotafinancialregulatoryagency.Thus,therequirementintheDodd-FrankAct§342toassessthediversitypoliciesandpracticesofentitiesregulatedbytheagencyisnotapplicabletotheTreasuryDepartmentalOfficesOMWI.

the commitment to minority owned and women owned business utilization remained strong


BUSINESS DIVERSITY & INCLUSION

MINORITY OWNED AND WOMEN OWNED BUSINESS UTILIZATIONOfthetwentyagenciesandfederalreservebankswithanOMWI,TreasuryDepartmentalOfficesisoneofthefewrequiredtoadheretotheFederalAcquisitionRegulation(FAR)fortheprocurementofgoodsandservices.TheFARrequiresafullandopencompetitiveprocessforfederalprocurements,withsomeexceptionsforsmallbusinesssetasidesunderspecificcircumstances.Additionally,itisimportanttonotethat,duetolegalrestrictionspertainingtocivilrights,nospecificgoalscanbeestablishedforcontractingwithminority-ownedbusinessesregardlessofsizeorwomen-ownedbusinesseswiththeexceptionofcertainsmallbusinessparameters.

Treasury-wide,thetotal(appropriatedandnon-appropriated)contractprocurementwasincreasedfrom$5.7billioninFY2015to$6.2billioninFY2016.WithinTreasuryDepartmentalOffices,procurementforproductsandserviceswasincreasedfromatotalof$250millioninFY2015to$332millioninFY2016(with1,973contractactions).Despitetheabsenceofmandatedcontractinggoals,thecommitmenttominority-ownedandwomen-ownedbusinessutilizationwithinTreasuryDepartmentalOfficesremainedstronginFY2016,withover30percentofcontractdollarstotaling$100milliongoingtoeitherminority-ownedorwomen-ownedbusinesses(MWOB).Specifically,$57million(17percent)ofcontractobligatedawarddollarswenttowomen-ownedbusinessesand$59million(18percent)wenttominority-ownedbusinesses(dollaramountstominoritywomen-ownedbusinessesareincludedwithineachcategory).[Table1]

Table 1DepartmentalOfficesFY2016ContractObligationsbyDemographicGroups,TotalAwardsandPercentagesofAwards*

Category Total Awards in Dollars Percentage of AwardsAll Departmental Offices Awards $332,909,235.14 100.0%

Minority-owned or women-owned3 $101,516,157.97 30.49%

Woman-owned $56,624,561.58 17.01%

Minority-owned4 $59,481,712.21 17.87%

Asian American $16,069,452.66 4.83%

Black American $13,637,392.61 4.10%

Hispanic American $10,123,031.13 3.04%American Indian $2,516,840.33 0.81%Other minority5 $113,269.30 0.03%

Neither Minority-owned nor Woman-owned $231,393,077.17 69.51%*ContractingdollaramountsarebasedonFederalProcurementDataSystem(FPDS-ng)dataextractedSeptember5,2017forFY16;Dollarsandpercentagesarerounded.

____________________

3.Thetotalamountofawardstominoritywomen-ownedbusinesseswas$14,590,115.82.However,awardstobusinessesthatarebothminority-andwomen-ownedarecountedwithinFederalProcurementDataSystem(FPDS-ng)inallapplicableindividualminority-andwomen-ownedindividualcategories.Therefore,toensuretherewasnoduplicatecountingofoverlappingcategoriesofrace/ethnicityandgender,thetotaldollarsandpercentageshavebeenreducedtoadjustforthe$14,590,115.82

4.Thesumoftheawarddollarstobusinesswithintheminority-ownedsub-categoriesdoesnotequalthetotalminority-ownedawardamountbecauseseveralawardsundertheminoritycategorieswerenotidentifiedinthereportingsystemasminority-ownedbusinesses.

5.“Otherminority”meansthosebusinessesdesignating“minority-owned”intheSystemforAwardManagement,butnotdesignatingAsianAmerican,BlackAmerican,HispanicAmerican,or AmericanIndian.

10

TRENDS IN MINORITY OWNED BUSINESS UTILIZATIONUtilization of minority-owned businesses overall within TreasuryDepartmentalOfficeshaslargelyremainedthesame relative to total spending. In FY 2016, a total ofalmost$59millionor18percentofthetotalincontractobligationswereawardedtominority-ownedbusinesses.[Figure1]Comparatively,inFY2015,atotalof$43millionor17percentoftotalcontractobligationswasawardedtominority-ownedbusinesses.

Contract obligations to minority-owned businesses byspecific racial and ethnic designation of the ownershiparedelineatedinTable2.6

Table2DepartmentalOfficesFY2012-2016OverallContractObligationsbySpecificRacial/EthnicMinorityGroup*

FY 2016 FY 2015 FY 2014 FY 2013 FY 2012Minority Owned Businesses $59million(18%) $43million(17%) $45million(18%) $45million(18%) $42million(19%)

Black-owned $14million $14million $16million $15million $23million

Hispanic-owned $10million $5million $5million $12million $4million

Asian-owned $24million $22million $18million $14million $9million

American Indian-owned $1million $4million $4million $3million $2million

Non-Minority Businesses $274million(82%) $205million(83%) $203million(82%) $210million(82%) $223million(81%)

*ContractingdollaramountsarebasedonFederalProcurementDataSystem(FPDS-ng)dataextractedSeptember5,2017forFY16;Dollarsandpercentagesarerounded.

Minority Owned

Non-Minority Owned

82%

18%

Figure1DepartmentalOfficesFY2016OverallContractObligationsbyMinorityStatus*

*Percentageshavebeenrounded to whole numbers

6.Somebusinesseshaveself-identifiedinmorethanonecategory;theircontractamountsarereflectedwithinallcategoriesindicated.

TAKING STOCK &MAKING CHANGE


TRENDS IN WOMEN OWNED BUSINESS UTILIZATIONThere has been a variable trend in the utilization of women-owned businesses within Treasury DepartmentalOffices.InFY2016,atotalof$57millionor17percentof the total incontractobligationswereawarded to women-owned businesses (includingminoritywomen).Comparatively,inFY2015,atotalof$31millionor12percentofthetotalcontractobligationswasawarded towomen-ownedbusinesses;and inFY2014,a totalof$51millionor21percentof the totalcontract obligations was awarded to women-ownedbusinesses(includingminoritywomen).[Figure2].

Table 3DepartmentalOfficesFY2012-2016OverallContractObligationsby Gender-specificBusiness*

FY 2016 FY 2015 FY 2014 FY 2013 FY 2012Minority Owned Businesses $57million(17%) $31million(12%) $51million(21%) $40million(15%) $31million(12%)

Black-owned $15million(4%) $13million(5%) $11million(5%) $15million(5.5%) $15million(6%)

Hispanic-owned $42million(13%) $18million(7%) $40million(16%) $25million(9.5%) $16million(6%)

Asian-owned $276million(83%) $220million(88%) $197million(79%) $222million(85%) $223million(88%)

American Indian-owned $1million $4million $4million $3million $2million

Non-Minority Businesses $274million(83%) $205million(83%) $203million(82%) $210million(82%) $223million(81%)

*ContractingdollaramountsarebasedonFederalProcurementDataSystem(FPDS-ng)dataextractedSeptember5,2017forFY16;Dollarsandpercentagesarerounded.

83%

13% 4%

Non-Minority Women

Minority Women

Non-Women Owned


Figure2DepartmentalOfficesFY2016OverallContractObligationsbyGenderCategories*

12

TRENDS IN MWOB SMALL BUSINESS UTILIZATIONThe vast majority of minority-owned businesses andwomen-ownedbusinesses(MWOB)intheUnitedStatesare small businesses with 98 percent of all MWOBearningrevenueunder$1million,accordingtothemostrecentlyavailablecensusdata.ConsistentwiththeDodd-FrankAct§342mandatetofocusonminority-ownedandwomen-ownedbusinesses,therearestatutorygoalssetby the Small Business Administration (SBA) for smalldisadvantaged businesses (which are largely minority-owned)andwomen-ownedsmallbusinesses.

In FY 2016, contract obligations to small businessesby Treasury Departmental Offices were 40 percent,exceeding the 35 percent statutory goal. Contractobligations to small disadvantaged businessesrepresented13percent,almosttriplethe5percentgoal;similarly, contract obligations to women-owned smallbusinessesrepresented15percent,triplethe5percentgoal.7[Figure3]

Table4DepartmentalOfficesFY2012-2016OverallContractObligationstoSmallMWOB*

FY 2016 FY 2015 FY 2014 FY 2013 FY 2012TotalContractObligations(regardlessofsize) $333million $250million $248million $255million $223million

Overall Small Businesses Contract Obligations $134million(40%) $135million(54%) $125million(51%) $119million(47%) $95million(42%)

SmallDisadvantagedBusinesses(SDB) $42million(13%) $32million(13%) $25million(14%) $37million(14%) $40million(18%)

Women-owned Small Businesses $51million(15%) $25million(10%) $44million(18%) $32million(13%) $20million(9%)*SDBisusedinthiscontextasaproxyforminority-ownedbusinesses;contractingincludesoverlapbetweencategories.ContractingdollaramountsarebasedonFederalProcurementDataSystem(FPDS-ng)dataextractedSeptember5,2017forFY16;Dollarsandpercentagesarerounded.

72%15%

13%

SmallDisadvantagedBusinesses

Women Owned Small Businesses

Other


Figure3DepartmentalOfficesFY2016SmallMWOBContractObligations*

7.ContractingdollaramountsarebasedonFederalProcurementDataSystem(FPDS-ng)dataextractedSeptember5,2017forFY16.



MWOB PARTICIPATION IN SPECIFIC ACQUISITION CATEGORIESEachyear,listsarepostedonlineofthetopacquisitioncategories,byNorthAmericanIndustryClassificationSystem(NAICS)codes,ofcontractsawardedbytheDepartmentofTreasury,TreasuryDepartmentalOffices,andtheindividualTreasurybureaus.Theaimistoencouragefirmsthatprovideproductsorserviceswithinthosecategoriestomarkettheirfirms’capabilitiestoTreasurybureaus.8 In FY2015,87percentofallTreasuryDepartmentalOfficescontractswereintheareaofservices.22percentofDepartmentalOfficesservicecontractswereawardedtominority-ownedorwomen-ownedbusinesses:11percentwenttowomen-ownedbusinessesand16percentwenttominority-ownedbusinesses.Thisresultedin$48.7millionincontractstominority-ownedorwomen-ownedbusinessesforservices.

WithinTreasuryDepartmentalOffices,approximately79percentofcontractawardsaremadeinonlysevenNAICScodecategoriesandminorityorwomen-ownedbusinessutilizationishighestamongsixofthosecategories.Thehighestutilizationofminorityorwomen-ownedbusinessesisin“OtherComputerRelatedServices”(NAICS541519)intheamountof$32millionandreceiving37percentoftheawards.[Table5].

8.Refertowww.treasury.gov/about/organizational-structure/offices/Mgt/Pages/dcfo-osdbu-mp-top25.aspx.

14

TotalDepartmentalOfficesAnnualObligatedDollars$250,382,037andprocessed1,958actions

NAICS Codes and Descriptions541519 541611 493110

Other Computer Related Services

Administrative Management and

General Management Consulting Services

General Warehouse and Storage

Number of businesses with DO awards in NAICS

317 154 6

Category $Awards %Awarded $Awards %Awarded $Awards %Awarded

Total DO Awards in NAICS 88,033,146 26.44% 53,862,880 16.18% 33,549,458 10.08%

Minority- or women-owned9 32,770,955 37.23% 517,830 1.33% 12,823,713 38.22%

· Women-owned 17,439,482 19.81% 0 0.00% 3,284,169 9.79%

· Minority-owned 15,979,107 18.15% 517,830 1.33% 10,949,318 32.64%

Asian American 9,519,098 10.81% 0 0.00% 135,754 0.40%

Black American 310,891 0.35% 0 0.00% 1,958,647 5.84%

Hispanic American 884,520 1.00% 0 0.00% 3,239,255 9.66%

Native American 130,418 0.15% 0 0.00% 0 0.00%

Other minority 562,579 0.64% 0 0.00% 0 0.00%

Neither minority- nor woman-owned 55,262,191 62.77% 53,345,050 98.67% 20,725,745 61.78% *ContractingdollaramountsarebasedonFederalProcurementDataSystem(FPDS-ng)dataextractedSeptember5,2017forFY16

Table5:AwardsbyDemographicGroupsintheDO’sTopSevenNAICSCodes,FiscalYear2016InDollarsandPercentageofDollarAwardsinTopSevenNAICSCodes*

9.Awardstobusinessesthatarebothminority-andwomen-ownedarecountedwithinFederalProcurementDataSystem(FPDS-ng)inallapplicableindividualminority-andwomen-ownedindividualcategories.Toensuretherewasnoduplicatecountingofoverlappingcategoriesofrace/ethnicityandgender,thetotaldollarsandpercentageshavebeenreduced.



541512 928120 541511 611420

Computer Systems Design Services International Affairs

Custom Computer Programming

ServicesComputer Training

106 366 78 46

$Awards %Awarded $Awards %Awarded $Awards %Awarded $Awards %Awarded

31,679,920 9.52% 31,484,716 9.46% 14,957,059 4.49% 10,831,815 3.25%

21,074,869 66.52% 0 0.00% 3,085,861 20.63% 10,771,191 99.44%

8,607,553 27.17% 0 0.00% 2,781,125 18.59% 10,771,191 99.44%

16,688,555 52.68% 0 0.00% 403,926 0.00% 0 0.00%

4,031,098 12.72% 0 0.00% 99,189 0.66% 0 0.00%

995,943 3.14% 0 0.00% 0 0.00% 0 0.00%

1,337,428 4.22% 0 0.00% 337,175 2.25% 0 0.00%

0 0.00% 0 0.00% -32,438 -0.22% 0 0.00%

198,353 0.63% 0 0.00% 0 0.00% 0 0.00%

10,605,051 33.48% 31,484,716 100.00% 11,871,198 79.37% 60,624 0.56%

Table 5 continued

NAICS Codes and Descriptions

Treasury’s Mentor-Protégé program is designed to motivate and encourage large firms to assist small businesses


Initiatives & Accomplishments

OUTREACH Federal Acquisition Regulation (FAR) Contracting: Treasury has achieved itsmosteffectiveengagementwithminority-ownedandwomen-ownedbusinessesthroughsubstantialeffortstoreachouttosmallbusinesses.Treasuryemploysmultiplestrategiesandcommunicationchannelstoreachcandidatevendors,including:

• PostingrequestsforproposalsontheFederalBusinessOpportunitieswebsiteatwww.fbo.gov

• Conductingmultiplevendoroutreachsessionsthroughouttheyear

• ProvidingresourcesontheTreasuryOfficeofSmallandDisadvantagedBusinessUtilizationwebsiteatwww.treasury.gov/osdbuandontheOMWIhomepageofwww.treasury.gov

• Extendingthetechniquesandtoolseffectivelyusedtoengagethesmallbusinesscommunitytothebroaderindustryaudience,includingminority-ownedandwomen-ownedfirms

• Reviewingvendorengagementstrategyaspartofacquisitionplanningforhigh-impactacquisitions

• Conductingstrategicreviewsoftargetedacquisitionstoensurethatacquisitionplanningincludesadequateandappropriateindustryoutreachandcommunicationsconsistentwithlaw,regulation,andTreasurypolicy

18

ThroughoutFY2016,OMWIsponsoredeightvendoroutreachsessionsthatprovidedindividualcounselingtoapproximately400smallbusinessconcerns,includingonethatprovidedcounselingbyTreasuryprimecontractorsandTreasuryprogrammanagers.Approximatelyone-thirdoftheparticipatingsmallbusinesseswereminority-ownedand/orwomen-owned.Treasuryalsoparticipatedinmorethan30smallbusinessoutreacheventseventssponsoredbySBA,otherfederalagencies,localgovernment,membersofCongress,andexternalorganizationsthatrepresentSMWOB,servingaspanelists,speakers,facilitators,planningcommitteemembers,andexhibitors.Asamplingofthoseeventsislistedbelow:

• NMSDC–SanDiego,CA

• 8(a)NationalWinterConference–Orlando,FL

• NationalSmallBusinessFederalContractingSummit,Washington,DC

• VeteransinBusiness,Arlington,VA

• 26thAnnualProcurementConference,Washington,DC

• EPA’sHUBZoneSmallBusinessSummit,Chicago,IL

• USHHCLegislativeSummit,WashingtonDC

• HHS/GettingBacktoBusiness,Boston,MA

• HHSGettingBacktoBusiness,Fairfax,VA

• MCCCGovConNetProcurementConference–Rockville,MD

• Women’sPowerConference,WashingtonDC

Mentor-Protégé Program:Treasury’sMentor-Protégéprogramisdesignedtomotivateandencouragelargefirmstoassistsmallbusinesses,includingsmalldisadvantagedbusinesses(whicharelargelyminority-ownedbusinesses)andwomen-ownedsmallbusinesses.TheprogramisalsodesignedtoimprovetheperformanceofTreasurycontractsandsubcontracts,fostertheestablishmentoflong-termbusinessrelationshipsbetweentheseentitiesandTreasuryprimecontractors,andincreasetheoverallnumberofsmallbusinessesthatreceiveTreasurycontractandsubcontractawards. InFY2016,therewere2Treasurymentor-protégéagreementsinplace.Amongtheprotégés,onewasaServiceDisabledVeteranOwnedBusiness(SDVOB)andonewasaHispanicownedbusiness.

Financial Agent Authority (Non-FAR): InadditiontotheprocurementofgoodsandservicesthroughprocessesgovernedbytheFederalAcquisitionRegulation(FAR),Treasuryalsohasfinancialagentauthority(FAA).UniquetotheTreasuryandgranted150yearsagobytheNationalBankActsof1863and1864,theFAAallowsTreasurytodesignatefinancialinstitutionstoprovidecertainservicesonthegovernment’sbehalf.Thesefirmsactonbehalfofthegovernmentduringtheperformanceoftheirdutiesunderanagent-principalrelationshipwithTreasury.FinancialagentsalsohavethefiduciaryobligationtoprotecttheinterestsoftheUnitedStates.Duringtheheightoftherecentfinancialcrisis,TreasurymadegreateruseofitsFAAauthorityinthemanagementoftheTroubledAssetRecoveryProgram(TARP),engagingexternalbrokerdealersandassetmanagers,includingminorityownedandwomenownedfinancialservicesfirms.However,astheTARPprogramhaswounddown,suchFAAopportunitieshavebeenverylimited.

ACCOUNTABILITY

Leadership Monitoring:OMWIdevelopsdetailedweeklyreportsofSMWOBcontractingfortheDeputySecretary,AssistantSecretaryforManagement,SeniorProcurementExecutive,BureauChiefProcurementOfficers,andBureauSmallBusinessSpecialists.Eachbureau’ssmallbusinessandMWOBcontractingperformancealsoisreportedtotheDeputySecretaryinquarterlyperformancereviewsessionswithBureauHeads.TheSeniorProcurementExecutiveholdsquarterly“ProcureSTAT”performancereviewsessionswithindividualBureauChiefProcurementOfficerstoassesseachbureau’ssmallbusinesscontractingperformanceandtotrackMWOB



contracting.Additionally,theSeniorProcurementExecutiveutilizesmonthlyTreasuryAcquisitionCouncilmeetingswithBureauChiefProcurementOfficerstoaddressthestatusofTreasury’soverallsmallbusinessgoalsandMWOBcontracting.

SES Performance Plans: Toestablishaccountabilityrelativetobusinessdiversityandinclusion,theperformanceelementonwhichallSESlevelacquisitionstaffareevaluatedincludesthefollowingcriteria:Activelysupporteffortstoensurefairinclusionandutilizationofminority-ownedandwomen-ownedbusinesses,withoutregardtosize,incontractingopportunitiestothemaximumextentpossible,throughearlyacquisitionplanning,regularprocurementforecasting,strategicmarketresearchandoutreach,andotherstrategiesfordiversificationofthevendorbase.

Recognition:OMWIconductedanannualawardsrecognitionprogramforoutstandingperformanceinsmallbusinesscontracting,whichhasprovidedanadditionalachievementincentivetotheacquisitioncommunity.Awardsincluderecognitiontobureausthatachievedthehighestpercentagesofcontractobligationswithminority-ownedandwomen-ownedbusinesses.ForFY2016,thetwoleadingbureauswithtotalprocurementspendinginexcessof$100millionexpended29percentoftheircontractingdollarswithminority-ownedbusinesses(BureauofFiscalServices)and23.8percentwithwomen-ownedbusinesses(DepartmentalOffices).ItisworthytonotethattwoTreasuryorganizationswithtotalprocurementspendingunder$100millionexpended69.4percentoftheircontractingdollarswithminority-ownedbusinesses(CommunityDevelopmentFinancialInstitutionsFund)and36.2percentwithwomen-ownedbusinesses(FinancialCrimesEnforcementNetwork).

Good Faith Effort Mandate

InaccordancewiththecontractorworkforcediversitymandateintheDodd-FrankAct§342,theTreasuryDepartmentalOfficesOMWI,incollaborationwithotherOMWIagencies,developedproposedlanguagethatwouldbeincludedinallDepartmentalOfficesservicecontractsinexcessoftheSimplifiedAcquisitionThreshold($150,000).ThefinalrulewaspublishedintheFederalRegisteronMarch20,201410and,subsequently,thisprovisionhasbeenincludedinallapplicablecontracts.

TheDepartmentofLabor(DOL),OfficeofFederalContractCompliancePrograms(OFCCP)conductsdiversity-relatedreviewsoncontractorsacrosstheFederalgovernment,includinggoodfaitheffortassessmentsofcontractorworkforcediversity.TreasurydeterminedthatrelianceonOFCCP’seffortswouldreduceoverlappingreviews,andhelpavoidtheneedtoduplicateOFCCP’sexpertisewithinOMWI.UtilizingOFCCPevaluationandinvestigationdata,OMWIhasdevelopedandimplementedaproceduretomakeadeterminationwhetherapplicableDepartmentalOfficescontractorshavefailedtomakeagoodfaitheffort(GFE)toincludeminoritiesandwomenintheirworkforce.

TreasuryDepartmentalOfficeshad192contractsinFY2016thatmettherequirementsforGFEreview.Ofthosecontracts,therewere118uniqueDepartmentalOfficescontractors.21percent(25)ofthesecontractorshadundergoneeitherOFCCPcomprehensivecomplianceevaluationsorOFCCPinvestigationsfordiscrimination.

19.5percent(23)ofthe118contractors($55millionoutof$124millionincontracts)hadundergoneanOFCCPcomplianceevaluation.OftheOFCCPevaluationsforviolationsinrecruitment,hiring,and/orsystemicdiscrimination,whichOMWIusestoestablishgoodfaithefforts,itwasdeterminedthat65percent(15contractors)receivedaNoticeofCompliance.Alleightcontractors($7millionoutof$124millionincontracts)thatdidnotreceivea“NoticeofCompliance”werecitedforrecruitmentviolations.30percent(7)ofthosecontractorsremediedtheviolationbyenteringaConciliationAgreementwithOFCCPtocorrecttheviolationwithinasetperiodoftime.1percent(1)ofthosecontractorsenteredintoafinancialarrangementwithOFCCPtorectifytheviolation.

2percent(2)ofthe118contractors($7.4millionincontracts)underwentOFCCPinvestigations.Forbothcontractors,nofindingswereidentifiedpertainingtorace/ethnicityorgenderinthecontractorworkforce.

10.Refertohttp://www.gpo.gov/fdsys/pkg/FR-2014-03-20/html/2014-05846.html

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Challenges

Continuedbudgetreductionsfordiscretionaryspendinghaveanimpactonavailablecontractingopportunities.Inaddition,strategicsourcingandsharedservicesinitiativestoincreaseefficienciesfurtherreducespendingandmayreducethenumberofvendorsreceivingawards.

Furthermore,TreasurymustbecarefulthatallcontractingisconductedinamannerconsistentwiththeEqualProtectionClauseoftheConstitution,whicheffectivelyprohibitsmanyformsofaffirmativeaction,includingtheestablishmentofquotasbasedonraceandgender.Therefore,OMWImustmaintainafocusonstrategicoutreachtohelpensurethatminority-ownedandwomen-ownedbusinessesareawareofopportunities and track trends in outcomes



WORKFORCE DIVERSITY & INCLUSION

WORKFORCE DEMOGRAPHY AllTreasuryDepartmentalOfficesemployeesplayimportantrolesinthefulfillmentoftheoverallTreasurymission.Eachemployeebringsperspectivestohisorherworkthatareinfluencedbyhisorherbackground,culture,andexperience.Analyzingtheracial,ethnic,andgenderrepresentationaldiversityofTreasuryDepartmentalOffices,weexamineworkforceprofiles,trends,benchmarks,hiringandattritionrates,pipelineprograms,anddemographicdifferentiationatupperandseniorlevelsandinmission-criticaloccupationsinFY2016.11However,justasimportantly,wehaveexaminedemployeeperceptionsoftheTreasuryDepartmentalOfficesworkplaceenvironmentrelativetoinclusion.ThiscomprehensiveexaminationinformstherecommendationsfortheworkofOMWIgoingforward.

RACIAL/ETHNIC AND GENDER PROFILESThe total Treasury-wide workforce across all bureausand theDepartmentalOffices in FY2016was 96,892 permanent employees (99,251 inFY 2015). The Treasury Departmental Officespermanentworkforcerepresentsabout2percentofthetotalTreasury-wideworkforce.AsofthecloseofFY2016,TreasuryDepartmentalOfficeshad1,894permanent employees, an increase of 88 (closeto 5 percent net change) from FY 2015 (1,732).Permanent employees comprised approximately 85percentof the totalDOworkforce. Temporaryemployees (including non-career employees)comprised approximately 15 percent of the total DOworkforce.

Approximately one-third (36 percent) of TreasuryDepartmentalOfficespermanentemployeesacrossall grade levels are racial or ethnic minorities.The percentage ofminorities increased slightly (1percent)fromtheFY2015percentageof34percent.Hispanicrepresentationincreasedby1percentinFY2016andrepresent5percent.Blackrepresentationremainedunchangedat21percentinFY2016andFY2015.Asianrepresentationalsoremainedunchangedat9percentinFY2015andFY2016.[Figure4.]

64%

21%

9%

5%

1%Other

WhiteBlack

Asian

Hispanic

Figure4FY2016TreasuryDepartmentalOffices

Total Permanent Workforce by Race/Ethnicity

*Percentageshavebeenroundedtowholenumbers

11.Doesnotincludetheracialethniccategories,NativeHawaiianorOtherPacificIslanders,AmericanIndianorAlaskanNatives,orTwoorMoreRacesbecausetherepresentationofeachofthesegroupsiszerotolessthanonepercentofthetotalDepartmentalOfficespermanentworkforce.

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55% 45%

ThepercentagesofemployeesbygenderinTreasuryDepartmentalOfficesinFY2016remainedunchangedfromFY2015.[Figure5]

BENCHMARK COMPARISONSTo assess the relative status of the diversity profileof Treasury Departmental Offices, the TreasuryDepartmentalOfficesworkforcewascomparedwiththefederal government-wide workforce (FWF), Treasury-wide workforce, Civilian Labor Force (CLF), and theRelevantCivilianLaborForce(RCLF)byrace/ethnicityandgenderparticipation.12 Table 6 depicts the comparison of the Treasury Departmental Offices total permanentworkforce for FY 2016 with the demography of thesebenchmarks. Table 6PermanentFY2016TreasuryDepartmentalOfficesWorkforceDemographyComparedtoFederalGovernment,Treasury-wide,CivilianLaborForceDemography,andtheRelevant CivilianLaborForceDemography*

Demographic Groups

TreasuryDepartmental

Offices

FederalGovernmentWorkforce**

Treasury-wideWorkforce

Civilian Labor

Force (CLF)

Relevant Civilian Labor Force (RCLF)

Men 55% 57% 38% 52% 52%

Women 45% 43% 62% 48% 48%

Hispanic Men 2% 5% 4% 5% 3%

Hispanic Women 2% 4% 7% 4% 4%

White Men 39% 39% 25% 38% 42%

White Women 25% 25% 31% 34% 35%

Black Men 7% 8% 6% 6% 4%

Black Women 14% 10% 20% 7% 6%

Asian Men 6% 3% 3% 2% 3%

Asian Women 3% 3% 3% 2% 3%

Men

Women


Figure5FY2016TreasuryDepartmentalOfficesTotal Permanent Workforce by Gender

12.Forthepurposeofthisanalysis,RelevantCivilianLaborForce(RCLF)referstotheCivilianLaborForce(CLF)datathataredirectlycomparableonlytoprevalentoccupationsinTreasuryDepartmentalOffices.



*Percentageshavebeenroundedtowholenumbers**FederalWorkforcedataisderivedfromOPMFederalEmploymentReports,September2006-September2015.

SENIOR MANAGEMENTConsistentwiththeEEOCdefinitionofseniormanagementasFederalGeneralSchedule(GS)15andabove,theTreasuryDepartmentalOfficesfocushasbeenoversightandmonitoringofrecruitment/outreach,hiring,professionaldevelopment,andattritioninGS-15andSESpositions.TreasuryDepartmentalOfficesalsotrackedandmonitoredtheracial/ethnicandgenderrepresentationoftheGS-13-14gradelevelworkforce,whichcanserveasthepipelineforseniormanagement.Althoughtherearenospecificgoalsfordemographicrepresentationbyrace/ethnicityandgender,comparisontothetotalTreasuryDepartmentalOfficespermanentworkforcerepresentationprovideageneralbenchmarkfortherelativeinclusionbygroupatupperandseniormanagementlevels.[Table7]

Table 7PermanentFY2016TreasuryDepartmentalOffices(DO)WorkforcebyUpperManagementGradeGroupingsComparedtotheTotalTreasuryDOWorkforce*

Demographic Groups

Total Treasury DO Workforce

Treasury DO SES

Treasury DO GS-15

Treasury DO

GS-13-14

Treasury DO GS-12- below

Men 55% 65% 61% 56% 38%

Women 45% 35% 39% 44% 62%

Hispanic 5% 5% 3% 4% 7%

White 64% 83% 83% 60% 41%

Black 21% 5% 7% 23% 43%

Asian 9% 7% 6% 11% 8%*Percentageshavebeenroundedtowholenumbers

Permanent Positions: ForFY2016,therepresentationofminoritiesandwomeninpermanentGS-13-14,GS-15,andSESlevelpositionsaredescribedbelowcomparedtotherepresentationwithinthetotalTreasuryDepartmentalOfficespermanentworkforce.ItshouldbenotedthattherearenocivilianlaborforcedatacomparabletoSESlevelpositionsorthecombinedpipelineGS-13-14category.Withinseniormanagementpositions,womenfill39percentofthepermanentGS-15levelpositionsand35%percentofthepermanentSESpositions.ThisunchangedattheGS-15levelcomparedtoFY2015(39percent);andanincreaseof7percentattheSESlevelcomparedtoFY2015(28percent).Minoritiesrepresent17percentofthepermanentworkforceattheGS-15leveland17percentofthepermanentworkforceattheSESlevelposition.Thisrepresentationof17percentattheGS-15levelisanincreaseof2percentcomparedtotherepresentationinFY2015(15percent)andanincreaseof2percentattheSESlevelcomparedtoFY2015(15percent).

Presidential Appointed and Senate Confirmed Positions: InFY2016,thereweresevenwomenamongthehighestrankingPresidentialappointedandSenateconfirmedpositionsinTreasuryDepartmentalOffices.TheTreasuryDeputySecretarywasawoman(thefirstwomentoholdthispositioninTreasury’shistory)andthereweresixwomenAssistantSecretaries,whichincludestheTreasureroftheUnitedStates.AppointedpositionsarenotincludedbytheEqualEmploymentOpportunityCommissionincalculationsofthepermanentworkforcecensus.

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All Grade Groupings

AcomparisonoftherepresentationbygenderandminoritygroupstatusacrossallgradegroupswithintheTreasuryDepartmentalOfficesPermanentWorkforceshowsthegreatestconcentrationofwomenandminorityemployeesareinGS-12andlowerpositions.[Figures6and7]

Figure6FY2016TreasuryDepartmentalOfficesPermanent Workforce Grade Comparison by Gender

Figure7FY2016TreasuryDepartmentalOfficesPermanent Workforce Grade Comparison by Minority Status

HIRING AND ATTRITION Hiring:Inthissection,thehiringratesforthevariousgroupswerecomparedoverafiveyearperiod (FY2012throughFY2016).Thisanalysisincludeshiringratetrendsofonlythepermanentworkforce.[Table8]

80%

62%

38%

GS 12 & below GS-13 - 15

Men Women

SES

42%

58%

35%

65%60%

40%

20%

0%

80%

100%

59%

41%

GS 12 & below GS-13 - 15

White Non White

SES

31%

69%

17%

83%

60%

40%

20%

0%



Table8New Hire Trends of Permanent Workforce byPercentageofEmployeesHired(FY2012-FY2016)

Fiscal year Men Women H W B A2012 60% 40% 2% 76% 10% 11%2013 52% 48% 2% 75% 11% 10%2014 59% 41% 6% 70% 11% 12%2015 56% 44% 6% 63% 16% 15%2016 53% 47% 7% 58% 20% 12%

[Key:H-Hispanic,W-White,B-Black,A-Asian]

Attrition: Inthissection,comparisonsaremadebetweentheattritionratesforthevariousgroupsoverafiveyearperiod(FY2012throughFY2016).Thistrendanalysisoftheattritionratesincludesonlythepermanentworkforce.[Table9]

Table 9AttritionRatesbyRace/EthnicityandGender(FY2012-FY2016)

Fiscal year Men Women H W B A2012 52% 48% 4% 67% 25% 6%2013 53% 47% 3% 68% 22% 7%2014 47% 53% 4% 69% 15% 11%2015 49% 51% 3% 70% 16% 10%2016 56% 44% 2% 68% 18% 12%

[Key:H-Hispanic,W-White,B-Black,A-Asian]

Attrition by Type: InFY2016,therewasanattritionof192employees.AreviewofDOvoluntaryseparationsbytyperevealsthatresignations,retirements,andtransfersarethetopthreereasonsemployeesseparatefromtheworkforce.[Table10]

Table10AttritionbyTypeandDemographicGroup(FY2016)

Demographic group Resignation Retirements Transfers Death TotalMen 44 21 39 3 107Women 31 15 37 2 85Hispanics 1 0 3 0 4Whites 58 22 46 4 130Blacks 7 12 15 1 35Asians 9 2 12 0 23Total Attrition 75 36 76 5 192Percentages 39% 19% 40% 3% 100%


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Ofthefourcategoriesofattrition,minorityemployeesweremorelikelytotransfertoanotherpositionwithingovernment(48percentofallminorityattrition).Whiteemployeesweremorelikelytoresign(45percentofallwhiteattrition).Overall,attritionbyrace/ethnicityandgenderwasgenerallyproportionaltotheiroverallrespectiverepresentationwithintheTreasuryDepartmentalOfficesworkforce.Whitesaccountedfor68percent(130)ofthetotalattrition.Blacksaccountedfor18percent(35)ofthetotalattrition.Asiansaccountedfor12percent(23)ofthetotalattrition.And,Hispanicsaccountedfor2percent(4)ofthetotalattrition.Womenaccountedfor44percent(85)ofthetotalattrition.

Net Attrition of Minority Employees:Thissectionshowsthenetchangeinminorityrepresentationduetothecombinationofhiresandseparationratesincomparisontothepastfivefiscalyears(FY2012through2016).Thepastyearsresultedinanetattritionrateof,-12percent,-9percent.,-3percent,7percent,and10percent,respectively.[Table11]

Table 11NetChangeinMinorityRepresentation(FY2016)

WorkforceDemographics 2012 2013 2014 2015 2016Minority Rate of Hire 23% 23% 28% 37% 42%Minority Rate of Attrition 35% 32% 31% 30% 32%Net -12% -9% -3% 7% 10%


Net Attrition Women Employees:Thissectionshowsthenetchangeintherepresentationamongwomenemployeesduetothecombinationofhiresandseparationrates,comparingthepastfivefiscalyears(FY2012throughFY2016).Thisresultedinanetattritionrateof-8percent,1percent,-9,-7percentand3percent,respectively.[Table12]

Table12NetChangeintheRepresentationofWomen(FY2016)

WorkforceDemographics 2012 2013 2014 2015 2016Minority Rate of Hire 40% 48% 45% 44% 47%Minority Rate of Attrition 48% 47% 54% 51% 44%Net -8% 1% -9% -7% 3%


MISSION CRITICAL OCCUPATIONS TRENDS BY RACE/ETHNICITY AND GENDERWithinTreasuryDepartmentalOffices(DO),therearefiveoccupationalseriesthatareregardedas“critical”tosupportingthemissionandvisionofTreasury.Theyarecomprisedofthefollowing:Economist,GeneralAttorney,FinancialAnalyst,InformationTechnologySpecialist,andIntelligenceAnalysts.Inthissection,comparisonsaremadebetweentheparticipationratesofthevariousracial/ethnicgenderrepresentationswithineachoftheseoccupationsinTreasuryDepartmentalOfficespermanentworkforcefromFY2012throughFY2016comparedtotheirrespectiveOccupationalCivilianLaborForce(OCLF)data.

a. Economist:TrendswithintheEconomist(GS-0110)occupationalseriesrevealaconsistentlylowerthanexpectedparticipationrateforHispanics,Blacks,andWhitefemaleswhencomparedtotheirOCLFduringafiveyearperiodfromFY2012throughFY2016.(SeeTable13)



Table 13EconomistSeriesTrendsbyRace/EthnicityandGenderPercentages

Fiscal Year HM HW WM WW BM BW AM AWFY 2012 0.49% 0.00% 56.59% 33.66% 1.46% 0.00% 3.41% 3.90%FY 2013 0.48% 0.48% 56.04% 31.88% 0.97% 0.00% 5.80% 4.35%FY 2014 1.06% 0.00% 57.98% 31.38% 0.53% 0.00% 5.32% 3.72%FY 2015 2.02% 0.00% 56.06% 29.29% 1.01% 0.51% 7.58% 3.54%FY 2016 2.46% 0.00% 58.62% 25.12% 0.99% 0.49% 8.89% 3.45%

OCLF 3.30% 1.80% 55.80% 25.20% 2.80% 2.70% 4.50% 3.10%[Key:PurplecolordenotesthatthepercentageisbelowtheOCLF;HM–HispanicMen;HW–HispanicWomen; WM–WhiteMen;WW–WhiteWomen;BM–BlackMen;BW–BlackWomen;AM–AsianMen;AW–AsianWomen]

b. General Attorney: IntheGeneralAttorney(GS-0905)occupationalseries,trendsrevealthatmalescontinuetohaveaparticipationratebelowtheirrespectiveOCLFratesduringafiveyearperiodfromFY2012throughFY2016withtheexceptionofAsianmales.Overall,allfemalegroupsandAsianmalesareshowingparticipationratesatorabovetheirrespectiveRCLFrates.(SeeTable14)

Table14GeneralAttorneySeriesTrendsbyRace/EthnicityandGenderPercentages



c. Information Technology (IT) Specialist: IntheITSpecialist(GS-2210)occupationalseries,trendsrevealthatHispanicsandWhiteshaveparticipatedsubstantiallybelowtheOCLFrateacrossafiveyearperiodfromFY2012throughFY2016,whileBlacksandAsianshaveconsistentlyparticipatedwellabovetheOCLFrateinthatsametimeperiod.(SeeTable15)

Table 15InformationTechnologySpecialistSeriesTrendsbyRace/EthnicityandGenderPercentages



d. Financial Analyst: TrendswithintheFinancialAnalyst(GS-1160)occupationalseriesacrossafiveyearperiodfromFY2012throughFY2016revealaconsistently lower thanexpectedparticipationrate forHispanics females,Whitemales,andAsiansmalesandfemaleswhencomparedtotheirOCLFparticipationrate.(SeeTable16)

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Table 16FinancialAnalystSeriesTrendsbyRace/EthnicityandGenderPercentages



e. Intelligence Analyst: Trendswithin the IntelligenceAnalyst (GS-0132)occupational seriesacrossafive yearperiod fromFY2012throughFY2016revealaconsistentlylowerthanexpectedparticipationrateforHispanics,Whitefemales,andBlackscomparedtotheirrespectiveOCLFparticipationrates.However,inFY2016,participationratesofAsianmenandwomenwereabovetheirrespectiveOCLFparticipationrates.(SeeTable17)

Table 17IntelligenceAnalystSeriesTrendsbyRace/EthnicityandGenderPercentages



STUDENT EMPLOYMENT Internships: InternshipsandfellowshipprogramsofferanexcellentopportunityforTreasuryDepartmentalOfficeshiringofficialstoassessthequalificationsandperformanceofpromisingstudentswhomayprovetobecandidatesforfuturepositions.TreasuryDepartmentalOfficesoffersthreeopportunitiesforstudentinternships:anunpaidstudentvolunteerinternshipprogram,thePathwaysProgramthatprovidespaidinternships,andalong-standingoutreachefforttorecruitdiversegroupsofstudentsforpaidinternshipsthroughpartnershipswithminority-servingorganizationsandacademicinstitutions.ThislattereffortisknownastheTreasuryScholarsProgram,aimingtofurtherexpandthediversityofhighlyqualifiedcandidatesinterestedininternshipsintheTreasuryDepartmentalOffices.

InFY2016,therewere275studentinternswhoservedinTreasuryDepartmentalOffices:17percentAsian(47),13percentBlack(35),6percentHispanic(18),and64percentWhite(175).Thegreatestproportionofallofthe275totalstudentinternsinTreasuryDepartmentalOfficescamethroughtheVolunteerprogram.33percent(80)ofthe245Volunteerprogramstudentswereracialorethnicminoritystudents:18percent(45)Asian,9percentBlack(22),5percent(13)Hispanic;67percentwereWhite(165).TheTreasuryScholarsprogramaccountedfor17percent(17of100)oftheplacementsofminorityinterns(theadditional1TreasuryScholarsstudentwasWhite).ThePathwaysprogramincluded12internsofwhich25percent(3of12)wereminoritystudents.[Table18]



Table18FY2016TreasuryDepartmentalOfficesStudentEmployment

Student programs Asian % Black % Hispanic % White % TotalVolunteer 45 18% 22 9% 13 5% 165 67% 245

Treasury Scholars 1 6% 11 61% 5 27% 1 6% 18Pathways 1 8% 2 17% 0 0 9 75% 12

Total 47 17% 35 13% 18 6% 175 64% 275

NEW IQ INCLUSION QUOTIENTTheFederalEmployeeViewpointSurvey(FEVS)isagovernment-widetoolthatmeasuresemployees’perceptionsofwhether,andtowhatextent,conditionscharacterizingsuccessfulorganizationsarepresentintheiragencies.Surveyresultsprovidevaluableinsightintothechallengesagencyleadersfaceinensuringthefederalgovernmenthasaneffectivecivilianworkforceandemployees’perceptionabouttheirworkplaceexperience.TheOfficeofPersonnelManagement(OPM)recentlydevelopedtheInclusiveEnvironmentAssessment,consistingofasubsetof20questionsderivedfromarigorousstatisticalfactoranalysis.These20questionsclusteredaroundfivefactors,regardedasbehavioralhabits:fairness,openmindedness,cooperation,supportiveness,andempowerment.ScorescanbederivedforeachofthesefactorstocomprisetheNewIQInclusionQuotient.

The most recent survey was administered by the OPM from April through June 2016. Overall scores below65percenton the New IQ Index are regarded as areas of challenge.TreasuryDepartmentalOffices has an overall Diversity andInclusion Index score of 64.03 percent in FY 2016, a 2.13percent increase fromthescoreof61.9percent inFY2015.By comparison, the overall New IQ Index scores Treasury-wide and government-wide are 57.74 percent and 60.02,respectively.

For the specific factors associated with inclusion, TreasuryDepartmentalOffices scoreswere: 54.28percent - fairness,63.08 percent - open mindedness, 60.40 percent –cooperation79.74percent-supportiveness,and62.63percent-empowerment.TreasuryDepartmentalOffices’scoresonallfivefactorsarehigherthanthoseinFY2015.[Table19]

Table 19 FY2016ComparisontoGovernment-wide,Treasury-wideandDepartmentalOfficesScoresontheInclusiveEnvironmentIndex

Behaviors Gov Treasury DOFairness 44.90 49.14 54.28

Open-mindedness 57.00 58.10 63.08Cooperativeness 53.85 57.10 60.40Supportiveness 75.16 79.98 79.74Empowerment 57.78 55.78 62.63

Average 57.74 60.02 64.03

recruits, retains, and develops the talent needed to achieve a high quality, diverse workforce that reflects the nation


Initiatives & Accomplishments

ACCOUNTABILITYLeadership Monitoring:Racial/ethnicandgenderrepresentationandemployeeperceptionsaboutinclusionwithintheTreasuryDepartmentalOfficesaremonitoredbytheDeputySecretaryandAssistantSecretaryforManagementinquarterlyperformancereviewsofeachoftheprogramandpolicyoffices.OMWIparticipatesineachofthequarterlyperformancereviewstoprovideinsightintotheworkforcediversityandworkplaceperceptiondatafortherespectiveoffices.

SES Performance Plans: Toestablishaccountabilityrelativetoworkforcediversityandinclusion,theLeadingPeopleperformanceelementonwhichallSESlevelTreasuryemployeesareevaluatedincludesthefollowingcriteria:

Recruits, retains,anddevelopsthetalentneededtoachieveahighquality,diverseworkforcethatreflectsthenation,withtheskills neededtoaccomplishorganizationalperformanceobjectiveswhilesupportingworkforcediversity,workplaceinclusion, andequalemploymentpoliciesandprograms.

ThroughoutTreasury,theLeadingPeopleperformanceelement,whichisoneofthefourExecutiveCoreQualificationsforseniorexecutivesinthefederalgovernment,isweightedtwiceashighastheotherthreeelementsrated,i.e.,LeadingChange,BusinessAcumen,andBuildingCoalitions.ThishighervalueaccountsforthediversitycomponentofLeadingPeopleelementinadditiontootherleadershipcharacteristics.

All Employee Performance Plans: InFY2015, OMWIparticipatedinthedraftingofdiversityandinclusionelementsthateventuallywillbeincludedintheperformanceplansofemployeesatalllevels.Specificlanguagehasbeendevelopedformanagers/supervisors,aswellasemployeeswhoarenotinamanagerialorsupervisoryrole.Becausethiswidespreadchangeinperformancestandardswillincludeemployeeswhoarepartofthebargainingunit,adoptionrequiresunionreviewandapprovalwhichhasdelayedimplementationofthenewlanguagethisyear.

QUANTITATIVE AND QUALITATIVE ANALYSISDiversity in the Hiring Process:Applicantflowanalysiswasreviewedtodeterminethepercentageofminorityandwomencandidatesparticipatingatvariousstagesofthehiringprocess. Throughthisanalysis,OMWIprovideseachmajorofficewithavisualrepresentationshowingtheaggregatedflowofallapplicants,qualifiedapplicants,bestqualifiedapplicantsandselections,comparingmenversuswomenandminorityversusnon-minorityapplicants.Thepurposeofthismonitoringistoidentifydisparitiesateachhiringstage.

32

Representational Diversity:OMWIconductsquantitative“deepdive”analysisoftheworkforcedemographyforeachofthemajorpolicyandprogramofficesthatincludes:

1. Overall representation by race, gender, disability and veteran status

2. Representation in the major occupations

3. Demography of direct hires

4. Demography of applicants

5. Perceptions of the workplace environment

6. Exit surveys and the reasons for leaving

7. Performance ratings by race and gender

Infollow-uptobriefingswiththeofficesontheseanalyses,OMWIworkswitheachoftheprogramandpolicyofficestoreviewanydisparitiesinrepresentationandareasofconcernpertainingtoworkplaceculturetodeterminethepotentialsourcesofproblemareasandstrategiestoaddressthem.

Inclusion Index:TheOfficeofPersonnelManagementdevelopedtheInclusiveEnvironmentAssessment(NewIQ)indextoolforusebyfederalagenciestoassessfactorswithintheworkplacethatarecloselyassociatedaninclusiveenvironment.UsingtheNewIQinclusionindextool,OMWIbeganprovidingindividualpolicyandprogramofficeswithinTreasuryDepartmentOfficeswithaqualitativemeasureofemployeeperceptionsoftheirworkplaceenvironment.So,beyondthedatarepresentativeofworkforcediversitybyraceandgender,thismeasure,derivedfromaqualitativesurvey,providestheextenttowhichtheworkplacecultureisperceivedasinclusive.

OUTREACHSocial Media Employment Outreach: Throughapplicantflowanalysis,itwasdeterminedthatmoretargetedrecruitmentcouldbebeneficialtoincreasingthenumbersofhighlyqualifiedminorityandwomenapplicantsforupperandseniorlevelemploymentopportunities.Towardthatend,OMWIinitiatedtheuseofsocialmediatopushjobannouncementstospecificmulticulturalgroups.Inprioryears,OMWIeffectivelyusedtheLinkedInonlinecommunitytopostselectedpositionstothemostrelevantgroups.

InFY2015,OMWIlaunchedathree-yearcontractualarrangementwiththeProfessionalDiversityNetwork(PDN),thenation’sleadingrelationshiprecruitmentnetworkfordiversetalentwithoverfivemillionregisteredusers.ThisarrangementextendedthroughoutFY2016. WiththeProfessionalDiversityNetwork,OMWIhasamoreexpansivesocialmediareachtorelevantnetworkgroups.AllTreasuryDepartmentalOfficespositionvacancyannouncementsthatarepostedonUSAjobs.govaresenttomultiplenetworksofpotentialjobseekersfromdiversebackgrounds.TheobjectiveofthisserviceistopromotediversityoftheapplicantpoolsforTreasuryDepartmentalOfficespositions.ThetopviewsforTreasuryDepartmentalOfficeshavecomethroughthefollowingPDNnetworks:Women’sCareerChannel(womenprofessionals),BlackCareerNetwork(AfricanAmericanprofessionals),Military2Career(veterans),AsianCareerChannel(Asianprofessionals),iHispano(Hispanicprofessionals),ProAble(personswithdisabilities),andOutPro(LGBTQprofessionals).

Internship Outreach:TreasuryDepartmentalOfficeshashadlongstandingpartnershipswithexistingexternalinternshipprogramsthatattractdiverseandhighlyqualifiedstudents.OMWIestablishedtheTreasuryScholarsProgramin2012,asapaidinternshipprogramincollaborationwithminoritystudentservingorganizations,suchastheNationalAssociationforEqualOpportunityinHigherEducation,HispanicAssociationofCollegesandUniversitiesNationalInternshipProgram,theWashingtonCenter,theInternationalLeadershipFoundation,andtheCongressionalHispanicCaucusInstitute,andothers.However,becauseoftheproliferationinrecentyearsofseveralotherorganizationswithsimilarcapabilities,itbecameimpossibletojustifycontinuedsolesourcecontractingwithspecificorganizations.

InFY2015,OMWIissuedacompetitivesolicitationforsuchorganizationstobecomepartofafive-yearBlanketPurchaseAgreementfortheTreasuryScholarsProgram.ThreeorganizationsrespondedtothesolicitationtosupporttheTreasuryScholarsProgram:INROADS,theHispanicAssociationofCollegesandUniversitiesNationalInternshipProgram,andtheWashingtonCenter. InFY2016,OMWIofferedpaidinternships



to18studentsviatheTreasuryScholarsProgram.Thesestudentswereplacedin11differentpolicyandprogramofficesthroughoutTreasuryDepartmentalOffices.Studentscamefromavarietyofcollegesanduniversities,includingHistoricallyBlackCollegesandUniversities(e.g.,Howard,Morehouse,Spelman,FloridaA&M)andHispanicServingInstitutions(.e.g.,UniversityofPuertoRico,NewMexicoState).ThiswasthelargestcohortofTreasuryScholars,thebroadestarrayofofficeplacements,andthegreatestdiversityofstudentinternseverhostedinTreasuryDepartmentalOffices.

INCLUSIVE DIVERSITY AWARENESS AND TRAININGMulti-tiered Diversity and Inclusion Training: SinceFY2013,aseriesofmulti-leveltrainingindiversityandinclusion,withafocusonunconsciousbias,hasbeenofferedforseniorleaders,managersandsupervisors,aswellasallotheremployees. Theaimofthistrainingisculturaltransformationoftheworkplacebycreatingacadreoflike-mindeddiversityandinclusionchampionswhocanserveascatalyststochangingmanagementbehaviorsandamoreinclusiveworkplaceenvironment.

InFY2016,specialemphasiswasplacedontrainingseniorexecutivesinunconsciousbias. Aseniorexecutivesummitwasconductedduringwhichtwopresentationswereconductedondiversity,inclusion,andunconsciousbias. Thespeakerswere:LeslieTraub,aprincipalatCookRoss,whichspecializedinunconsciousbiastrainingandorganizationalculture;andMichaelFosberg,whofacilitatesgroupdiscussionaboutattitudestowardraceusingadramaticproduction.

Further,Treasury’sExecutiveInstitute(TEI)establishedacurriculumandhosteddiversityandinclusiontrainingsessionsforDepartmentalOfficesemployeesandmanagersattheGS14throughSESlevels.Thesesessionsincludedthefollowingseminars:

SuspendingJudgement:AKeytoBeingCulturallyCompetentWomenCanBreaktheGlassCeilingandBeThemselvesBuildingYourGenerationalCompetencySeven Leadership Principles from Women in National SecuritySkills,Techniques,andStrategiesforEffectiveNegotiationsGenYDecoded:InsightsandTacticsforLeadersCrucial ConversationsCrucial AccountabilityConnectionCulture:TheCompetitiveAdvantageofSharedIdentify,EmpathyandUnderstandingatWorkEmotionalIntelligenceforLeadershipTheNeuroscienceofEmployeeEngagementThe Next GEN LeadersNeuro DiversityYourGuidetoLivingandWorkinginaMulticulturalWorldBreakingBiasWorkshopCoachingintheWorkPlace:SupportiveConversationsTheNextGenYou:SixStrategiesforMeetingFutureLeadershipDemandsNeverSplittheDifference:NegotiatingasifYourLifeDependedonItTheRespectEffect: TheNeuroscienceofEmployeeEngagementTrustworthy LeaderEmotionalIntelligenceforLeadership

Inadditiontolivepresentations,Treasuryalsoofferstraining“ondemand”viaitsonlinelearningsystemthatisaccessibletoallemployees. Thereiscurrentlyaone-hourinteractivevideopresentationonunconsciousbiasbyHowardRoss,oftheCookRossfirm. Additionalvideoswillbeaddedtotheonlinelearningsystemin2017entitled,Defeating Unconscious Bias and Anyone Can Be An AllywhichaddressesbiaspertainingtotheLGBTcommunity.

Leadership Commitment: TreasurySecretaryJacobLewissuedaDiversityandInclusionCalltoActionStatementin2013thatwasdisseminatedtoallTreasuryemployees,whichremainsakeypolicydocumentrepresentingtheagency’sbasicprinciplespertainingtodiversityandinclusion.Inhisstatementheindicatesthat“allemployeesmustdemonstratethecharacteristicsoffairness,openmindedness,cooperation,supportiveness,andempowermentthroughoutTreasury.Thisinvolvementmustbevisible,intentional,andcontinuous.” TheDeputySecretary,SarahBloomRaskin,hasreinforcedthiscalltoactionbyensuringthatdiversityandinclusionremainsafocusinthequarterlyperformancereviewsofeachTreasuryBureauandmajorofficewiththeTreasuryDepartmentalOffices.

ECONOMIC EMPOWERMENTTheOfficeofConsumerPolicy,withintheDomesticFinanceOfficehastheprimaryresponsibilityforprogrammingpertainingtofinancialinclusion,literacy,andpoliciesthataddresstheeconomicrealitiesofeverydayAmericans.InFY2016,theOfficeofConsumerPolicycoordinatedtwolandmarkeventsonthesetopics.

Financial Inclusion Forum:Atwo-dayFinancialInclusionForum(FIF)washeldtoincreaseunderstandingoffinancialinclusion,thefinanciallivesofglobalanddomesticconsumers,andthemultiplerolesthattheU.S.Governmentservesinaddressingfinancialinclusion.SpeakersandworkinggroupsessionswereledbykeyeconomicthoughtleaderswithinTreasuryDepartmentalOffices,otherfederalagencies,andtheprivatesector,includingglobalorganizations.OneofthefeaturedspeakerswasBillGates,Co-Chair,Bill & Melinda Gates Foundation and both the Treasury Secretary and the Treasury Deputy Secretary participated prominently in this importantprogram.

Freedman’s Bank Forum:ThesecondeventcoordinatedbytheOfficeofConsumerPolicywastheFreedman’sBankForum,scheduledtocoincidewiththeopeningofthenewNationalMuseumofAfricanAmericanHistoryandCulture.ThisForum broughttogetherpublic,private,andnonprofitleaderstodiscussstrategiestoimprovejobs,economicopportunity,financialinclusion,andsharedprosperityforallcommunities. ThisForum’snameisatributetotheFreedman’sSavingsandTrustCompany,whichwascreatedtoprovideeconomicopportunityfornewlyemancipatedpeoplemorethan150yearsearlier,andwhichwascommemoratedbytheTreasuryDepartmentearlierintheyear.SpeakersandpanelistsdiscussedrecentprogressandnewopportunitiesfortheAdministrationandprivate,non-profitandlocalgovernmentsectorsinfosteringbroad-basedeconomicgrowth.


Freedman’s Bank Commemoration: TheFreedman’sSavingsandTrustBankwascharteredbyCongressandsignedintolawbyPresidentLincolnin1865tohelpformerlyenslavedAmericanstobecomepartoftheeconomicmainstream.TheFreedman’sBankwaslocatedonthesitethatlaterbecamethelocationoftheTreasuryAnnex.InJanuary2016,theTreasuryAnnexwasnamedtheFreedman’sBankBuildingincommemorationofthesesquicentennialanniversaryoftheestablishmentofthebanktohonoritshistoryandlegacyoffinancialinclusion.IncollaborationwiththeTreasuryOfficeoftheCuratorandtheFederalReserveBankofCleveland,OMWIplacedaneducationalexhibitonthegroundflooroftheFreedman’sBankBuildingthatchronicledthehistoryofthebank.OMWIalsodevelopedamini-documentaryvideotopromoteawarenessamongthegeneralpublicofthehistoryoftheFreedman’sBank.

myRA: InFY2015,TreasurylaunchedmyRA (myRetirementAccount),aretirementsavingsaccountwithanewtypeofRothIRAinvestmentdesignedtoencouragesavingforretirement.OMWI,incollaborationwiththeOfficeofSmallDisadvantagedBusinessUtilization,promotedthisprogramtosmallbusinessesatTreasury’svendoroutreachsessionsthroughouttheyear.

CHALLENGESTreasuryDepartmentalOfficesiscommittedtoadoptingleadingedgestrategiestosecureahighperformingworkforcedrawnfromadiversepoolofcandidates.ThethreemostpressingchallengestoimplementingtheworkforcediversityprovisionsofDodd-FrankAct§342havebeenbudgetaryrestraints,retentionrates,andperceptionsoftheexistinggovernment-wideworkplaceculture.

First,TreasuryDepartmentalOfficescontinuestooperatewithinatightbudgetaryenvironment,whichhasadirectimpactonhiring.Therefore,althoughtherewillbeacontinuedneedforsupportfromOMWIinformulatingproactivestrategiestoensurebroadoutreachtodiversecandidatepools,therewillbefeweravailablepositions.OMWImustfocusonstrategicoutreach,recruitment,internalsuccessionplanning,andawarenessofimplicitbiasesinselectiontohelpensurethatminoritiesandwomenareawareofopportunitiesatalllevelsandobjectivityintheselectionprocess.

Second,inprioryears,thehiringratesforwomenandacrossminoritygroupshavebeennegatedbyhigherattritionratesintheTreasuryDepartmentalOfficespermanentworkforce.Inparticular,theattritionrateofBlackemployeeshasconsistentlyexceededtherateofhires.However,inFY2015andFY2016,thisnegativetrendhasbeenreversing.InFY2016,Blackemployeeswerehiredatarate(20percent)higherthantheirseparationrate(18percent),resultinginapositivenetattrition.Theoverallrateofhiringofminorities(42percent)exceededminorityattrition(32percent),resultinginapositivenetattritionof10percent.Similarly,inFY2016,thenetattritionrateforwomenwasapositive3percent,contrarytothepriortwoyearsinwhichthenethiretoseparationrateswerenegative.Forbothrace/ethnicityandgender,thenewchallengemustbetocontinuetosustainthesepositivetrajectories.

Third,itisevidentfromthegovernment-widescoresderivedfromtheOPMNewIQinclusionquotienttoolthatworkplaceinclusionischallengingacrossfederalagencies.However,therewasanotableincreaseintheTreasuryDepartmentalOfficesoverallinclusionscorefrom61.9percentinFY2015to64.3percentinFY2016.ThisscoreishigherthantheTreasury-wide(60percent)andgovernment-wide(57.74percent)scores.Therefore,thenewchallengeistocontinuethemomentumofcreatingaworkplaceenvironmentthatisperceivedbyemployeesasbeinginclusive.

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CONCLUSIONS AND FISCAL YEAR 2017 PLANS

BUSINESS DIVERSITY AND INCLUSION DespitereductionsintheoverallTreasury-wideprocurementbudgetinrecentyearsandwithoutmandatedcontractinggoals,thecommitmenttominority-ownedorwomen-ownedbusiness(MWOB)utilizationwithinTreasuryDepartmentalOfficesremainedstrong.InFY2016,nearlyone-third (30.49percent)ofcontractdollarstotalingmorethan$100millionwenttoeitherminority-ownedorwomen-ownedbusinesses(MWOB).Thisrepresentedanincreasecomparedtotheprioryear(24.15%.inFY2015).AlthoughtherearenogoalsforMWOBcontracting,thecongressionallymandatedsmallbusinessgoalscanserveasusefulbenchmarkstogaugeperformance.TheTreasuryDepartmentalOfficesMWOBcontractingperformanceisonparwiththecongressionallymandatedsmallbusinessgoalestablishedforTreasury,whichwas35percentinFY2016.Similarly,contractingwithminority-ownedbusinesseswasat18percentinFY2016,whichiswellabovethecongressionallymandatedgoalof5percentforcontractingwithsmalldisadvantagedbusinesses(andarelargelyminority-owned).Further,contractingwith women-ownedbusinesseswasat17percentinFY2016,whichalsoiswellabovethecongressionallymandatedgoalof5percentforcontractingwithsmallwomen-ownedbusinesses.ItisalsoimportanttonotethatMWOBcontractingisnotlimitedtolessprominentbusinesscategories.ThereisstrongMWOBrepresentationamongcontractsinsixoftheTreasuryDepartmentalOfficestopsevenindustrycodes. OMWIwillstrivetosupporteffortsthatwillnotonlymaintain,butimproveupon,thisperformance.SpecificeffortsthatwillbeundertakeninFY2017includethefollowing:

Accountability: OMWIwillcontinuetomonitoranddevelopregularreportsontheutilizationofminorityandwomenownedbusinessesbyeachoftheBureaus.Suchreportswillprovideongoingtrackingofprogressforusebytheacquisitioncommunityandleadership,includingthequarterlyperformancereviewsconductedbytheDeputySecretary.Additionally,OMWIwillcontinuetoexploretheuseofnewmetricsandbenchmarkstoincreaseunderstandingofpossiblebarriersandaspirationalstandardsforbusinessdiversityandinclusion.

MWOB Utilization:Forsixconsecutiveyears,TreasuryDepartmentalOfficeshasfarexceededstatutorygoalsincontractingwithsmalldisadvantagedbusinessesandwomenownedsmallbusinesses.Inaddition,contractingwithminorityownedandwomenownedbusinessesofallsizeshavebeenwellabovegovernmentbenchmarks.InFY2017,TreasurywillcontinuetostriveforsmallbusinessgoalattainmentbycontinuingtoemploythestrategiesthathaveprovensuccessfulforTreasurysinceFY2011,includingtargetedoutreach,enhancedleadershipaccountability,newpolicies,newtoolsandresources,andincreasedintra-agencycommunication.

OMWIwillbefurtherbuildingthecapacitywithinTreasuryDepartmentalOfficestoreachouttominority-ownedbusinessesbyleveragingresourcessuchastheMinorityBusinessDevelopmentAgency(MBDA)intheDepartmentofCommerce.

Financial Agent Authority(Non-FAR): Treasurywillmaintainactiveengagementandrelationshipbuildingwithindustrystakeholdergroupsthatrepresentminority-ownedandwomen-ownedfinancialservicesfirmsandminorityandwomenprofessionals.ThisopendialogueandengagementwillsupportdiverseparticipationinfutureprogramopportunitiesthatmayariseundertheTreasuryfinancialagentauthority.Treasurywillcontinuetoensurethatrequestsforproposals(RFP)orothersolicitationprocessesarefairandwillencouragemeaningfulparticipationofminority-ownedandwoman-ownedbusinesseseitherasfinancialagentsorcontractorstofinancialagents.



Outreach:OMWIiscommittedtoconductingrobustandeffectiveoutreachtominority-ownedandwomen-ownedsmallbusinesses.InadditiontopublicpostingontheFederalBusinessOpportunitiesweb-site,Treasurywillcontinuetoconductregularvendoroutreachsessionsandpresentationsatconferencesandeventsconductedbyindustryorganizationsandfederalagencies,suchas:

• U.S.WomenChamberofCommerce(USWCC)

• U.S.HispanicChamberofCommerce(USHCC)

• U.S.BlackChambers(USBC)

• NationalMinoritySupplierDevelopmentCouncil(NMSDC)

• MinorityBusinessDevelopmentAgency(MBDA)

• TheWomen’sBusinessEnterpriseNationalCouncil(WBENC)

• NationalAssociationofSecuritiesProfessionals(NASP)

WORKFORCE DIVERSITY AND INCLUSIONOverall,theworkforcedemographywithinTreasuryDepartmentalOfficesisdiverse,butcanbedescribedbythefollowingcharacteristics:

• Therepresentationofwomenandminoritygroupsisatorabovethatinthecivilianlaborforce,withtheexceptionofHispanicemployees.However,forHispanicemployees,thenumberhiredexceededthenumberwhoseparatedinFY2016,resultinginapositiveattritionrate.

• Womenandracial/ethnicminoritygroupsaredisproportionatelyrepresentedinlowergradelevelpositions.

• Genderandracial/ethnicdisparitiesexistattheGS13-15andSESpositionsandinspecificmissioncriticaloccupations,i.e.,economists,generalattorneys,andintelligenceanalysts.

• WomenapplyforGS-15andSESpositionsatmuchlowerpercentagesthanmen.

• Racial/ethnicminoritiesapplyforpositionsatalllevelsatpercentagesratesthataresimilartoWhiteapplicants,butareselectedlessoften.

• EmployeeperceptionsofinclusionwithintheTreasuryDepartmentalOfficesworkplaceenvironmenthaveincreasedcomparedtoprioryears,butarestillbelowthescoreof65thattheOfficeofPersonnelManagementregardsasgood.However,perceptionsamongTreasuryDepartmentalOfficesemployeesregardingworkplaceinclusionarehigherthanthoseofthefederalgovernment-wideworkforce.

OMWIwillcontinuetoleadeffortstoincreaseworkplacediversityatthehigherlevels,i.e.,GS-13-15andSES,andinmissioncriticaloccupations.Programswillbecontinuedtotrainacriticalmassofemployeeswhocanbringaboutsocialtransformationtowardagreatercultureofinclusionwithintheworkplace.SpecificprogramsandactivitiesthatwillbeundertakenintheareaofworkforcediversityandinclusioninFY2017includethefollowing:

Accountability: OMWI,incollaborationwiththeOfficeofCivilRightsandDiversity,willcontinuetomonitoranddevelopregularreportsontheracial/ethnicandgenderdemographyoftheworkforceacrossTreasuryDepartmentalOfficesandwithinthemajorpolicyandprogramofficestoidentifyareasofdisparity.Suchreportswillprovideongoingtrackingforusebythepolicyandprogramofficesandleadership,includingthequarterlyperformancereviewsconductedbytheDeputySecretary.Additionally,OMWIwillcontinuetoexploretheuseofnewmetricsandbenchmarkstoincreaseunderstandingofpossiblebarriersandestablishaspirationalstandardsforworkplacediversityandinclusion.

IncollaborationwiththeTreasuryHumanCapitalOfficeandtheOfficeofCivilRightsandDiversity,OMWIwillsupporteffortstoimplementthespecificperformanceelementsfordiversityandinclusionforsupervisors,managers,andallotheremployees.

Workplace Culture: OMWI will continue to conductmulti-tieredtrainingtopromoteagreatercultureofinclusionwithinTreasuryDepartmentalOfficesfortheseniorleadership,managersandsupervisors,andallotheremployeesthroughvariousmethods.TheaimistoproduceanoverallculturaltransformationwithinTreasuryDepartmentalOfficesandtoincreasethenumberofemployeesthroughoutthevariouspolicyandprogramofficeswhohavecommoncoreknowledgeregardingworkplaceinclusion.

Recruitment/Hiring/Outreach: OMWIwillcontinuetousesocialmediaoutreacheffortstoincreasethenumberofminorityprofessionalswhoaremadeawareofallpositionannouncements,particularlyuppermanagement,seniorexecutive,andmission-criticaloccupationpositionsinTreasuryDepartmentalOffices.ThehiringratesofwomenandBlackemployeeswillcontinuetobetrackedtodeterminestrategiestomaintainthepositivetrajectory.

OMWIwillcontinuetoutilizeitsblanketpurchaseagreementcontractvehicletoaccessrecruitmentservicesfromorganizationsandinstitutionsthatserveminoritystudentsforinternshipstoincreasethediversityofinternswithinTreasuryDepartmentalOffices.

TAKING STOCK & MAKING CHANGE...be a continued reduction in related contracts. As always, Treasury...

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