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Phase Ib of the Major Capital Renewal program at the Museum of American History is substantially complete. The contractor has made most of the final adjustments to the systems. The project included replacement of utility systems, removal or containment of asbestos, and installation of fire protection systems in the east quadrant of the building. Phase II of the project, which includes the same kind of work in the west central quadrant, and is approximately 74% complete. Completion of the renovation project, including work in the office areas of the fourth and fifth floors, will be in fiscal year 1993; a subsequent project will renovate the systems serving the basement.

The Institution is preparing to contract for the design of the new underground chiller plant at the National Museum of Natural History. The staff has completed negotiation with an architectural/engineering firm for the planning of the East Court Building and will award a contract for this Spring, in anticipation of receipt of funds for design in fiscal year 1991.

The Smithsonian expects to award a contract in late spring to an architectural/engineering firm for development of an implementation plan for the Air and Space Museum Extension at Dulles Airport. The Institution will formally dedicate the new Research Facility of the National Zoological Park on April 27, 1990. The facility was completed in September and is in use. The final phase of the Olmstead Walk project, which includes landscaping, railings and other finishing work, is 95% complete. The Walk is fully open to the public. Demolition of the old Polar Bear Grotto to make way for the Amazonia Exhibit is approximately 90% complete; the design of the new exhibit is complete, and construction is expected to start in early Summer 1990.

INITIAL REPORT OF THE SECRETARY'S PLANNING ADVISORY GROUP

The small internal Planning Advisory Group (PAG), appointed in fall 1989 to advise the Management Committee on planning matters, has completed its initial task. Following an examination of bureau and office five-year plans submitted in January 1990 and interviews with various internal interest groups, the PAG submitted its initial report to the Management Committee on March 30, 1990.

In general, the report calls for greater reliance on the planning process, as a means to reconcile and prioritize competing program needs for increasingly scarce resources, and for greater clarity of management roles and responsibilities. The report endorses continued Institutional emphasis during the planning period on gaining and devoting resources to upgrading "infrastructure" areas in administration, exhibitions, collections, and facilities. In addition, PAG recommended further commitment to cultural diversity and strengthened affirmative action programs.

The report cited several ways the Institution should begin to plan and focus on strengthening specific program and management operations. The PAG recommended that educational activities become more explicit among the Institution's goals and that it be added as a new "Area of Emphasis" beginning with this planning cycle. (A revised version of the Institution's "Goals" and "Areas of Emphasis" statements appears as an Attachment.)

The PAG identified 17 cross-cutting issues as a result of its deliberations that Institutional management must address over the planning period. Many of these issues have been components of the Secretary's "Areas