Information Technology
Agencies Need to Establish Comprehensive Policies to Address Changes to Projects' Cost, Schedule, and Performance Goals
GAO-08-925, Jul 31, 2008
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The federal government plans to spend about $70 billion on information technology (IT) projects during fiscal year 2008. Consequently, it is important that projects be managed effectively to ensure that public resources are wisely invested. At times, a project's cost, schedule, and performance goals--known as its baseline--are modified to reflect changed development circumstances. These changes--called a rebaselining--can be done for valid reasons, but can also be used to mask cost overruns and schedule delays. GAO was asked to (1) determine the extent of and the primary reasons for IT project rebaselining and (2) determine whether federal agencies have sound policies for rebaselining projects. To do this, GAO surveyed the managers of a random sample of 180 projects selected from the 778 major IT projects the 24 major agencies plan to invest in during fiscal year 2008. GAO also compared agencies' rebaselining policies to best practices.
Based on GAO's survey, approximately 48 percent of the federal government's major IT projects have been rebaselined, and projects are rebaselined for several reasons, including changes in project goals, changes in funding, or inaccurate original baselines. Of the rebaselined projects, 51 percent were rebaselined twice or more, and 11 percent were rebaselined 4 times or more. The most commonly cited reasons for rebaselining were changes in project requirements, objectives, or scope (55 percent of IT projects), and changes in funding stream (44 percent of IT projects). While major agencies have all established rebaselining policies, these policies are not comprehensive. Specifically, none of the policies are fully consistent with best practices, such as describing a process for developing a new baseline. Agencies' policies vary in part because the Office of Management and Budget, which plays a key role in overseeing the federal government's IT investments and how they are managed, has not issued guidance specifying what elements these policies are to include. Without comprehensive policies to guide them, agencies may not be optimizing the effectiveness of rebaselining as a tool to improve performance management. In addition, their rebaselining processes may lack the transparency needed to ensure effective oversight.
Status Legend:
Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.
- In Process
- Open
- Closed - implemented
- Closed - not implemented
Recommendations for Executive Action
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of State should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of State
Status: Open
Comments: We have contacted officials to determine the status of actions to address our recommendation and are waiting to hear back from them.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of the Transportation should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of Transportation
Status: Open
Comments: We have contacted officials to determine the status of actions to address our recommendation and are waiting to hear back from them.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of the Treasury should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of the Treasury
Status: Open
Comments: We have contacted officials to determine the status of actions to address our recommendation and are waiting to hear back from them.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of Veterans Affairs should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of Veterans Affairs
Status: Open
Comments: We have contacted officials to determine the status of actions to address our recommendation and are waiting to hear back from them.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Administrator, U.S. Agency for International Development should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: United States Agency for International Development
Status: Open
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Administrator of the U.S. Small Business Administration should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Small Business Administration
Status: Open
Comments: We have contacted officials to determine the status of actions to address our recommendation and are waiting to hear back from them.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Administrator of the Environmental Protection Agency should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Environmental Protection Agency
Status: Open
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Commissioner of the Social Security Administration should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Social Security Administration
Status: Open
Comments: SSA provided documentation supporting actions taken to address our recommendation. We are currently reviewing this documentation.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of Defense should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of Defense
Status: Open
Comments: DOD provided documentation supporting actions taken to address our recommendation. We are currently reviewing this documentation.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of Education should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of Education
Status: Open
Comments: The department provided documentation supporting actions taken to address our recommendation. We are currently reviewing this documentation.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of Energy should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of Energy
Status: Open
Comments: We have contacted officials to determine the status of actions to address our recommendation and are waiting to hear back from them.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of Agriculture should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of Agriculture
Status: Open
Comments: We have contacted officials to determine the status of actions to address our recommendation and are waiting to hear back from them.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Director of the Office of Personnel Management should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Office of Personnel Management
Status: Closed - Not Implemented
Comments: In comments on a draft of our report, OPM stated that it did not agree with our assessment of the agency's rebaselining policy. In September 2010, OPM stated its position had not changed and it therefore would not be addressing our recommendation.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Director of the National Science Foundation should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: National Science Foundation
Status: Open
Comments: NSF officials reported they were in the process of addressing our recommendation and would follow up with us when they had fully addressed it.
Recommendation: To address the weaknesses identified in agencies rebaselining policies, the Director of OMB should issue guidance for rebaselining policies that would include a minimum set of key elements, taking into consideration the criteria used in this report.
Agency Affected: Executive Office of the President: Office of Management and Budget
Status: Closed - Implemented
Comments: On June 28, 2010, the Federal Chief Information Officer issued a memorandum addressing the establishment, management and changes to information technology (IT) investment baselines and providing a common structure for agencies' IT investment baseline management policies. This common structure defines a set of key elements, such as a reasons for a revised baseline, and a process for developing a new baseline, which are consistent with the criteria identified in our report.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of Homeland Security should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of Homeland Security
Status: Open
Comments: We contacted the Department of Homeland Security to determine the status of any actions made toward meeting our recommendation and are waiting for their response.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Administrator of the General Service Administration should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: General Services Administration
Status: Open
Comments: GSA officials stated that the fiscal year 2011 Control Review Guide addresses the weaknesses we had identified with the agency's rebaselining policy. We are currently reviewing this guide to confirm.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of Health and Human Services should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of Health and Human Services
Status: Open
Comments: HHS officials provided three documents they claim address the weaknesses we had identified with the agency's rebaselining policy: the Enterprise Performance Life Cycle guide, the IT Capital Planning and Investment Control guide, and the IT Performance Baseline Management policy. We are in the process of reviewing these documents to determine whether they address our recommendation.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of Housing and Urban Development should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of Housing and Urban Development
Status: Closed - Implemented
Comments: In April 2009, the U.S. Department of Housing and Urban Development issued the "Information Technology Investment Management Baseline Change Control Process Guide". This guide describes comprehensive rebaselining policies that address the weaknesses we identified.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of Interior should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of the Interior
Status: Open
Comments: We have contacted officials to determine the status of actions to address our recommendation and are waiting to hear back from them.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Attorney General should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of Justice
Status: Closed - Implemented
Comments: DOJ issued an Earned Value Management Implementation Guide in March 2009. This guide describes comprehensive rebaselining policies that address the weaknesses we identified.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of Labor should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of Labor
Status: Open
Comments: We have contacted officials to determine the status of actions to address our recommendation and are waiting to hear back from them.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Administrator of the National Aeronautics and Space Administration should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: National Aeronautics and Space Administration
Status: Open
Comments: NASA officials stated that the agency is in the process of updating its rebaselining policy and expects to finalize it by December 2011.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Chairman of the Nuclear Regulatory Commission should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Nuclear Regulatory Commission
Status: Open
Comments: NRC provided us documentation supporting actions to implement our recommendation. We are currently in the process of reviewing this documentation.
Recommendation: To address the weaknesses identified in agencies' rebaselining policies, the Secretary of Commerce should direct the development of comprehensive rebaselining policies that address the weaknesses we identified.
Agency Affected: Department of Commerce
Status: Closed - Implemented
Comments: In September 2010, the U.S. Department of Commerce issued revised IT investment performance mangement policy This policy describes comprehensive rebaselining policies that address the weaknesses we identified.