Skip to main content

Information Technology: Agencies Need to Establish Comprehensive Policies to Address Changes to Projects' Cost, Schedule, and Performance Goals

GAO-08-925 Published: Jul 31, 2008. Publicly Released: Jul 31, 2008.
Jump To:
Skip to Highlights

Highlights

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.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Office of Management and Budget 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.
Closed – Implemented
On June 28, 2010, the Federal Chief Information Officer issued a memorandum addressing the establishment, management, and changes to information technology investment baselines and providing a common structure for agencies' information technology investment baseline management policies. This common structure defines a set of key elements, such as reasons for a revised baseline, and a process for developing a new baseline; both elements are consistent with the criteria identified in our report.
Department of Homeland Security 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.
Closed – Implemented
In October 2011, the Department of Homeland Security issued two documents- Instruction Manual 102-01-001: Acquisition Management Instruction/Guidebook and Acquisition Program Baseline. These two documents address the weaknesses that we identified in the report.
General Services Administration 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.
Closed – Implemented
In December 2010, the General Service Administration's Office of the Chief Information Officer updated its Quarterly Control Report User Guide (fiscal year 2011 Guidance V.6). This guidance describes comprehensive rebaselining policies that address weaknesses we identified in our report such as requiring that the new baseline be validated and describing the process for developing a new baseline.
Department of Health and Human Services 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.
Closed – Implemented
Since 2008, the Department of Health and Human Services has issued a number of documents that address rebaselining in the agency, including a Rebaseline Process Guide and an Information Technology Investment Performance Baseline Management policy, issued in May 2010 and December 2010, respectively. This set of documents address weaknesses identified in our report.
Department of Housing and Urban Development 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.
Closed – Implemented
In April 2009, the 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 weaknesses we identified in the report.
Department of the Interior 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.
Closed – Implemented
In March 2012, the Department of the Interior instituted a policy for establishing, managing, and changing performance measurement baselines for its major information technology investments. This policy describes comprehensive rebaselining policies that address the weaknesses we identified in our report, including describing the reasons when a rebaseline is warranted, describing the process for developing a new baseline, and requiring validation of the new baseline.
Department of Justice 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.
Closed – Implemented
In March 2009, the Department of Justice issued its Earned Value Management Implementation Guide. This guide describes comprehensive rebaselining policies that address the weaknesses we identified the report.
Department of Labor 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.
Closed – Implemented
In September 2010, the Department of Labor issued a memorandum that established a policy for managing its information technology investment baselines. In January 2012, as a companion to this policy, it issued the Information Technology Baseline Management Guide. This guide describes comprehensive rebaselining policies that address the weaknesses we identified in our report, including describing the process for developing a new baseline, requiring validation of the new baseline, requiring management review of the new baseline, and requiring that the process be documented.
National Aeronautics and Space Administration 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.
Closed – Implemented
In December 2011, the National Aeronautics and Space Administration released an update to its Information Technology and Institutional Infrastructure Program and Project Management Requirements. This policy describes comprehensive rebaselining policies that address the weaknesses we identified in our report, including describing reasons when a rebaseline is warranted, describing the process for developing a new baseline, requiring validation of the new baseline, requiring management review of the new baseline, and requiring that the process be documented.
Nuclear Regulatory Commission 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.
Closed – Implemented
In September 2011, the Nuclear Regulatory Commission issued a guidebook entitled the Nuclear Regulatory Commission Information Technology Project Cost Estimating and Earned Value Management Guidebook. This guidebook describes comprehensive rebaselining policies that address the weaknesses we identified, including describing reasons when a rebaseline is warranted, describing the process for developing a new baseline, requiring validation of the new baseline, requiring management review of the new baseline, and requiring that the process be documented.
National Science Foundation 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.
Closed – Implemented
In October 2011, the National Science Foundation issued the Baseline Request Procedure. This procedure describes comprehensive rebaselining policies that address weaknesses that we identified in our report, including describing the process for developing a new baseline, requiring validation of the new baseline, requiring management review of the new baseline, and requiring that the process be documented
Office of Personnel Management 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.
Closed – Not Implemented
The Office of Personnel Management did not implement the recommendation. In comments on a draft of our report, officials stated that they did not agree with our assessment of the agency's rebaselining policy. In September 2010, the office stated that its position had not changed and therefore they would not be addressing our recommendation.
Department of State 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.
Closed – Implemented
The Department of State issued Work Breakdown Structure Guidance and the IT Investment Baseline Management Guide in October 2009 and September 2012, respectively. These documents describe comprehensive rebaselining policies that address the weaknesses we identified in our report, which included describing the process for developing a new baseline, requiring validation of the new baseline, and requiring that the process be documented.
Department of Transportation 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.
Closed – Implemented
In October 2009, the Department of Transportation revised its Investment Baseline Management policy which is located in its Order 1351.x. This revised policy describes comprehensive rebaselining policies that addresses many weaknesses we identified in our report, including describing the reasons when a rebaseline is warranted, describing the process for developing a new baseline, requiring validation of the new baseline and requiring that the process be documented.
Department of the Treasury 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.
Closed – Implemented
The Department of the Treasury has developed a baseline change request policy. This policy is to be finalized by September 2012 but the department is already following the policy. The policy describes comprehensive rebaselining policies that address the weaknesses we identified, including describing the process for developing a new baseline, validating a new baseline, requiring management review, and requiring that the process be documented.
Department of Veterans Affairs 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.
Closed – Implemented
In September 2011, the Department of Veterans Affairs released an updated Project Management Accountability System Guide (version 3.0). This policy improves the department's rebaselining policies by addressing a weakness we identified in our report associated with requiring validation of the new baseline.
U.S. Agency for International Development 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.
Closed – Implemented
The United States Agency for International Development provided its Information Technology Capital Planning and Investment Control document (revised in August 2011) and its IT Project Governance Manual version 1.1 (revised in April 2010). These documents address weaknesses we identified, including describing the process for developing a new baseline and requiring that the process be documented.
Small Business Administration 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.
Closed – Implemented
In May 2011, the Small Business Administration issued its Information Technology Investment Performance Baseline Management Policy. This policy describes comprehensive rebaselining policies that address weaknesses that we identified, including describing the process for developing a new baseline, requiring validation of the new baseline, requiring management review of the new baseline, and requiring that the process be documented.
Environmental Protection Agency 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.
Closed – Not Implemented
The Environmental Protection Agency did not implement our recommendation. According to an agency official, the agency is revising its rebaseline policy. However, the agency did not provide a draft of this policy for review.
Social Security Administration 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.
Closed – Implemented
In September 2011, the Social Security Administration revised its policy entitled "Social Security Administration Earned Value Management System Description." The revised policy describes comprehensive rebaselining policies that address the weaknesses we identified in our report, which included describing the process for developing a new baseline, requiring validation of the new baseline, and requiring management review of the new baseline.
Department of Defense 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.
Closed – Implemented
Since November 2011, the Department of Defense has provided two policy documents--DOD Instruction 5000.02, December 8, 2008- Operation of the Defense Acquisition System and Directive Type Memorandum 09-027- Implementation of the Weapon Systems Acquisition Reform Act of 2009--that have sections that address acquisition program baseline policy. These documents describe comprehensive rebaselining policies that address the weaknesses that we identified in our report, including describing the process for developing a new baseline and requiring management review.
Department of Education 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.
Closed – Implemented
In December 2011, the department released its Information Technology Investment Baseline Change Request Guide and updated its procedures for the new baseline processes. This guide describes comprehensive rebaselining policies that address weaknesses we identified, including describing the process for developing a new baseline, and requiring validation of the new baseline.
Department of Energy 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.
Closed – Not Implemented
The Department of Energy did not implement the recommendation. Department officials were unable to provide evidence showing that the department had addressed the weaknesses we identified in the report.
Department of Agriculture 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.
Closed – Implemented
In January 2010, the United States Department of Agriculture released an update to its directive, Information Technology Earned Value Management. This policy describes comprehensive rebaselining policies that address the weaknesses we identified, including describing reasons when a rebaseline is warranted, describing the process for developing a new baseline, requiring validation of the new baseline, requiring management review of the new baseline, and requiring that the process be documented.
Department of Commerce 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.
Closed – Implemented
In September 2010, the Department of Commerce issued a revised Information Technology Investment Performance Management Policy. This policy describes comprehensive rebaselining policies that address weaknesses that we identified in the report.

Full Report

Office of Public Affairs

Topics

Agency missionsBest practicesBudgetingCost analysisCost overrunsFederal agenciesFuture budget projectionsInformation technologyIT acquisitionsIT investment managementIT policiesPerformance measuresPolicy evaluationProgram evaluationRequirements definitionSchedule slippagesSurveysSystems analysisSystems conversionsSystems development life cyclePolicies and proceduresTransparency