Information Technology:

Status and Challenges of Employee Exchange Program

GAO-07-216: Published: Dec 15, 2006. Publicly Released: Dec 15, 2006.

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Recognizing the importance of human capital to information technology (IT) and the need to improve the skills of federal IT workers, Congress created the Information Technology Exchange Program (ITEP) as part of the E-Government Act of 2002. ITEP aims to improve federal IT skills through exchanges of staff between the government and the private sector. The Office of Personnel Management (OPM) was required to issue implementing regulations, which it did in September 2005, and to report semiannually to the Congress. OPM's regulations require that each participating agency develop an ITEP plan before proceeding with exchanges. Agencies' opportunity to begin exchanges ends in December 2007. GAO is required to evaluate the program by December 2006. As agreed, GAO's objectives were to determine (1) the status of the program and (2) challenges facing agencies. To address these objectives, GAO analyzed key documents and interviewed OPM, participating agencies, and others.

With only 1 year remaining to begin exchanges under the ITEP program, the seven agencies that volunteered to participate are still initiating their programs, and no exchanges have taken place. All participating agencies have drafted plans, but only three--Department of Homeland Security, Department of Defense, and Department of Commerce--have finalized them. Further, only Homeland Security has attempted to negotiate an exchange, but it was unsuccessful. In its last two semiannual reports, OPM has reported on the status of agency plans, but has not reported that no exchanges have taken place to date. OPM, agencies, and others have identified key challenges that will confront agencies as they finish their plans and begin to implement ITEP programs. First, employees with desired skills are in short supply in both the federal government and the private sector, particularly in enterprise architecture, project management, and information security, according to industry representatives. Second, companies are concerned that employee exchanges could hinder future business, since a company with an employee at an agency might be seen as having an unfair advantage in bidding on agency procurements. Third, federal ethics requirements, especially financial disclosure, could discourage private-sector employees from participating. And lastly, Federal agencies' current marketing through a Web site has not been productive, according to participating agencies; suggested improvements include using the media and making personal contacts with companies. OPM and the participating agencies are aware of the challenges and acknowledge that they need to be addressed. However, given the short time remaining before authority to begin new exchanges ends (see figure), it will be essential to expeditiously address the challenges to enable a significant number of successful exchanges.

Status Legend:

More Info
  • Review Pending-GAO has not yet assessed implementation status.
  • Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.
  • Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.
  • Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.
    • Review Pending
    • Open
    • Closed - implemented
    • Closed - not implemented

    Recommendations for Executive Action

    Recommendation: As part of OPM's responsibilities under the E-Government Act of 2002, the Director of OPM should include in its semiannual reports to Congress the number of exchanges that have occurred, as required by law.

    Agency Affected: Office of Personnel Management

    Status: Closed - Implemented

    Comments: OPM agreed with, and took action that addressed, this recommendation. Specifically, in its semiannual E-government reports that were submitted to Congress in April 2007 and October 2007, the agency included information pertaining to the number of ITEP exchanges that had occurred. In this regard, the reports noted that no exchanges had occurred.

    Recommendation: As part of OPM's responsibilities under the E-Government Act of 2002, the Director of OPM should include in its semiannual reports to Congress the status of efforts to address challenges facing agencies in implementing ITEP exchanges and whether these efforts are leading to exchanges.

    Agency Affected: Office of Personnel Management

    Status: Closed - Implemented

    Comments: OPM took action that addressed this recommendation. Specifically, OPM included in its April 2007 semiannual E-Government report to Congress information relating to agency efforts to address challenges in implementing ITEP exchanges. For example, among the challenges noted was that employee exchanges could hinder future business, since a company with an employee at an agency might be seen as having an unfair advantage in bidding on agency procurements. OPM stated in its reports that agency program officials were working with their general counsels to resolve the challenges.

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