Electronic Government: Selection and Implementation of the Office of Management and Budget's 24 Initiatives (22-NOV-02, GAO-03-229). In the President's Management Agenda, a key element for reforming the federal government is the expansion of electronic government (e-government)--that is, the use of technology, particularly the Internet, to enhance access to government information and services. Accordingly, the Office of Management and Budget (OMB) established a task force to select and manage strategic e-government initiatives. GAO was asked to review the completeness of information used for choosing and overseeing these initiatives. -------------------------Indexing Terms------------------------- REPORTNUM: GAO-03-229 ACCNO: A05604 TITLE: Electronic Government: Selection and Implementation of the Office of Management and Budget's 24 Initiatives DATE: 11/22/2002 SUBJECT: Electronic government Best practices ****************************************************************** ** This file contains an ASCII representation of the text of a ** ** GAO Product. ** ** ** ** No attempt has been made to display graphic images, although ** ** figure captions are reproduced. Tables are included, but ** ** may not resemble those in the printed version. ** ** ** ** Please see the PDF (Portable Document Format) file, when ** ** available, for a complete electronic file of the printed ** ** document's contents. ** ** ** ****************************************************************** GAO-03-229 A Report to the Committee on Governmental Affairs, U. S. Senate November 2002 ELECTRONIC GOVERNMENT Selection and Implementation of the Office of Management and Budget*s 24 Initiatives GAO- 03- 229 Lett er November 22, 2002 The Honorable Joseph I. Lieberman Chairman The Honorable Fred Thompson Ranking Minority Member Committee on Governmental Affairs United States Senate The President has identified the expansion of electronic government (e- government) 1 as one of the five priorities of his management agenda. To support this priority, the Office of Management and Budget (OMB) developed an implementation strategy that identified 24 e- government initiatives. These initiatives are expected to support the goal of the President*s management agenda and ultimately provide improved government services to citizens, businesses, and other levels of government. This report responds to your request that we review the information and documentation related to the selection and implementation of each of the e- government initiatives identified within OMB*s e- government strategy. Our objectives were to (1) describe the completeness of the business case information used by OMB to make the initial selection of e- government initiatives and (2) describe the completeness of the work plans and funding plans submitted to OMB in May 2002 for use in overseeing implementation of the initiatives. To fulfill our first objective, we reviewed best practices for preparing information technology (IT) business cases developed by leading government, academic, and private sector organizations. We then compared the initial business cases used in the selection of the 24 initiatives with these best practices. To fulfill our second objective, we compared the information in the May 2002 work plans and funding plans with identified best practices from GAO and OMB guidance on IT project management and oversight. We conducted our review from June through September 2002 in accordance with generally accepted government auditing standards. 1 E- government refers to the use of technology, particularly Web- based Internet applications, to enhance the access to and delivery of government information and services to citizens, business partners, employees, other agencies, and other entities. While we were able to obtain sufficient information to address the objectives in this report, OMB declined to provide certain information we requested. Specifically, OMB officials declined to provide business cases submitted by agencies in December 2001 and other relevant information submitted as part of the budget development process, stating that these documents were never updated by the agencies to reflect the final information presented in the President*s fiscal year 2003 budget. The OMB officials agreed to provide us this information as soon as it is updated after the 2004 budget is released. On October 8, 2002, we provided a detailed briefing to your office on the results of our review. The briefing slides 2 are included as appendix I. The purpose of this report is to provide the published briefing slides to you and to officially transmit our recommendations to the Director of OMB. Results in Brief The business cases, work plans, and funding plans obtained by OMB all contained at least some of the key information that we identified as necessary to select and oversee the initiatives. However, we also reported that OMB did not collect complete business case information before making its selection of 24 e- government initiatives. Specifically, despite the importance that OMB attached to collaboration and customer focus in its e- government strategy, fewer than half of the initiatives* initial business cases addressed these topics. In addition, the May 2002 work and funding plans provided OMB with insufficient information to monitor the status of its 24 e- government initiatives. Without addressing these issues, OMB increases the risk that the initiatives will not meet the President*s goal of a citizen- centric electronic government that seeks to enhance the federal government*s value to its citizens. Recommendations for In order to help ensure the success of the President*s objective of Executive Action expanding electronic government to improve the potential value of government to citizens, we recommend that the Director of OMB ensure that the managing partners for all 24 e- government initiatives (1) focus on customers by soliciting input from the public and conducting user needs assessments, (2) work with partner agencies to develop and document 2 We have amended the briefing as of October 31, 2002, to include technical corrections and clarifications. effective collaboration strategies, and (3) provide OMB with adequate information to monitor the cost, schedule, and performance of the 24 e- government initiatives. Agency Comments and In providing oral comments on a draft of this report, officials of OMB*s Our Evaluation Office of Information and Regulatory Affairs and its Office of General Counsel generally agreed with the facts, conclusions, and recommendations. These officials emphasized that while OMB leads the administration*s overall electronic government effort, federal agencies are responsible for leading the 24 individual initiatives. OMB officials also provided technical comments, and we have made changes where appropriate. As agreed with your office, unless you publicly announce the contents of this report earlier, we plan no further distribution until 30 days from the report date. At that time, we will send copies of this report to the Director of OMB and other interested congressional committees. We also will make copies available to others upon request. In addition, the report will be available at no charge on the GAO Web site at http:// www. gao. gov. Should you have any question on matters contained in this report, please contact me at (202) 512- 6240, or by E- mail at koontzl@ gao. gov. Other key contributors to this report included Barbara Collier, Felipe Colon, Jr., John de Ferrari, Elizabeth Roach, and Megan Savage. Linda D. Koontz Director, Information Management Issues Appendi xes Selection and Implementation of the Office of Appendi x I Management and Budget*s 24 Initiatives Electronic Government Selection and Implementation of the Office of Management and Budget s 24 Initiatives Senate Committee on Governmental Affairs October 8, 2002 Contents Introduction Objectives, Scope, and Methodology Data Limitations Background OMB s Selection Process Categorizing the Initiatives Overseeing Implementation Selection of Initiatives Oversight of Implementation Conclusions Recommendations Agency Comments Appendix I: Cost Information from Work Plans and Funding Plans Appendix II: Initiative- Specific Information 2 Introduction Electronic government ( e- government) refers to the use of technology, particularly Web- based Internet applications, to enhance access to government information and the delivery of information and services to citizens, business partners, employees, other agencies, and other entities. The President s Management Agenda designated the expansion of e- government as one of the five key elements for reforming the federal government. The stated goal was to champion citizen- centered electronic government that will result in a major improvement in the federal government s value to the citizen. 1 ( OMB used the term citizen to refer to individual citizens as well as businesses, state and local governments, and other customers. ) 1 The President s Management Agenda, Fiscal Year 2002 , page 23. 3 Introduction ( cont d) In July 2001, the Office of Management and Budget ( OMB) initiated a task force to plan how to implement the e- government portion of the President s management agenda. In August 2001, the E- Government Task Force began its effort, known as the Quicksilver Process, to gather information about potential strategic e- - government initiatives. The process resulted in 23 e- government initiatives being chosen for development, based on a review of abbreviated ( mini ) business cases. A 24 th initiative, e- Payroll, was subsequently added. 4 Objectives, Scope, and Methodology Our objectives were to describe the completeness of the information in the mini business cases used by OMB to make the initial selection of e- government initiatives and describe the completeness of the work plans and funding plans submitted to OMB in May 2002 for use in overseeing implementation of the initiatives. Our results are based on an analysis of ( 1) business case, work plan, and funding plan information provided by OMB and ( 2) status information for each of the 24 initiatives obtained from project managers. 5 Objectives, Scope, and Methodology ( cont d) To describe the completeness of the information in the mini business cases OMB used, we reviewed best practices for preparing information technology ( IT) business cases to determine which elements a e critical and determined whethe the mini business cases used for selection of the 24 initiatives addressed those critical elements. We did not make a qualitative assessment of the information provided in each element of the mini business cases. 6 Objectives, Scope, and Methodology ( cont d) To describe the completeness of the work plans and funding plans, we reviewed best practices contained in GAO and OMB guidance on IT project management and oversight to determine which elements are critical, determined whether the work plans and funding plans used to manage the 24 initiatives addressed those critical elements, and obtained and analyzed information from project managers on the status of work plan/ funding plan milestones. We did not make a qualitative assessment of the information provided in each element of the work plans and funding plans. We conducted our work from June through September 2002 in accordance with generally accepted government auditing standards. 7 Data Limitations Concerning the selection process, we obtained initial mini business cases prepared for 23 of the 24 initiatives that were selected. Although we requested complete documentation concerning the selection of the initiatives, OMB removed the initial order of magnitude cost estimates from the mini business cases because they considered them to be pre- decisional. However, OMB provided us with more recent cost information in the May 2002 work and funding plans. Our assessment of cost information focused on the May 2002 plans and is included in our analysis of OMB s oversight of the implementation of the initiatives. 8 Data Limitations ( cont d) Concerning implementation of the initiatives, we obtained work plans and funding plans for all 24 initiatives. OMB declined to provide the more extensive business cases drafted and submitted by agencies in December 2001, and elevant Exhibits 300, which were to include structured business case information as required by OMB Circular A- 11 and were submitted by agencies in conjunction with the fiscal year 2003 budget process. We based our review on the limited information we obtained from OMB. 9 Background: OMB s Selection Process The OMB E- Government Task Force identified over 350 potential projects through structured interviews with agency officials and suggestions received by E- mail in response to a solicitation fo ideas. The task force then sorted the more than 350 potential projects into approximately 40 portfolios of related ideas, , eliminating duplicate proposals and combining descriptions. On August 22, 2001, a steering committee ( composed of various members of the task force) selected 34 initiatives from these portfolios, and charged task force members with completing abbreviated ( mini ) business cases for each of them. According to OMB officials, the mini business cases were to include all the information necessary to make sound selection decisions based on OMB s stated criteria. 10 Background: OMB s Selection Process ( cont d) On September 25, 2001, the task force selected the final initiatives for approval, based on the mini business cases and consideration of a study conducted by OMB that identified governmentwide lines of business. The final selections included 21 initiatives approved for implementation and 2 additional initiatives ( entitled Consolidated Health Informatics and e- Vital) for which a final decision was deferred pending development of more extensive business cases. On October 3, 2001, the President s Management Council ( PMC) approved the final selections of the task force and assigned managing partner and partner agencies to implement the initiatives. At a subsequent date, the PMC added e- Payroll as a 24th initiative. 11 Background: OMB s Selection Process ( cont d) OMB s stated criteria for choosing the initiatives included potential value to customers, potential improvement in agency efficiency, and likelihood of deployment in 18 to 24 months. On February 27, 2002, OMB released its E- government Strategy , linking the initiatives to its study of governmentwide business lines, setting objectives, and documenting its action plan to carry out the strategy. A $ 5 million e- government fund was established in fiscal year 2002 to support implementation of the initiatives. The following slide depicts the overall selection process. 12 Background: OMB s Selection Process ( cont d) Over 350 project 40 portfolios ideas identified developed for the 34 initiatives 350 initiatives selected for further 23 initiatives 24 initiatives review selected approved and managing partners assigned Mini business 21 23 Initiatives Initial selected approved sorted screening cases developed for selection of 2 final initiatives to expand 1 added by business executive cases decision President s OMB E- Government Task Force Management Council Source: GAO analysis of information provided by OMB. 13 Background: Categorizing the Initiatives OMB organized the 24 initiatives into five categories: Government to individual citizens ( G2C) . Initiatives to deploy easy to find one- stop shops for citizens. Government to business ( G2B) . Initiatives to reduce burden on businesses by using Internet protocols and consolidating redundant reporting requirements. Government to government ( G2G) . Initiatives to make it easier for states and localities to meet reporting requirements while enabling better performance measurement and results. Internal efficiency and effectiveness ( IEE) . Initiatives to improve the performance and reduce costs of federal government administration by using e- business best practices. Cross- cutting . An initiative ( e- Authentication) to provide critical security services to support all the other initiatives. 14 Background: Categorizing the Initiatives ( cont d) E- Government Initiatives by Category 1 Government to individual citizens Government to business Recreation One- Stop Online Rulemaking Management GovBenefits/ Eligibility Assistance Online Expanding Electronic Tax Products for Businesses Online Access for Loans Federal Asset Sales USA Services International Trade Process Streamlining EZ Tax Filing One- Stop Business Compliance Information Consolidated Health Informatics Cross- cutting initiative: e- Authentication Government to government Internal efficiency & effectiveness Geospatial Information One- Stop e- Training e- Grants Recruitment One- Stop Disaster Management Enterprise HR Integration: Integrated HR & e- Clearance Project SAFECOM e- Payroll e- Vital e- Travel Integrated Acquisition Environment Electronic Records Management 1 A summary of each initiative appears in Appendix II. 15 Background: Overseeing Implementation To oversee implementation of the initiatives, OMB equired managing partners to submit expanded business cases by December 10, 2001; found that, in some cases, these business cases raised concerns as to the direction of the initiatives; convened executive meetings, from January to April 2002, with managing partners and partner agencies to reach final agreement on the scope and direction of each initiative; equired managing partners to submit work and funding plans for fiscal years 2002 and 2003 in May 2002 for each initiative, based on the results of the executive meetings; 1 and plans to obtain its next update on cost, schedule, and performance from managing partner agencies in fall 2002 in conjunction with the fiscal year 2004 budget deliberations, according to OMB officials. 1 A summary of estimated costs for each initiative appears in Appendix I. 16 Background: Overseeing Implementation ( cont d) Implementation Timeline Source: GAO analysis of information provided by OMB. 17 Selection of Initiatives: Best Practices for e- Gov Business Cases To identify best practices for the content of e- government business cases, we reviewed guidance from a variety of sources, including the following: Private research groups and national associations: Gartner Group, Giga, SAP, Pacific Edge Software, Solution Matrix, Inc. National Electronic Commerce Coordinating Council Educational institutions: Center for Technology in Government at the State University of New York, Albany Robert H. Smith School of Business at the University of Maryland State and local governments: North Carolina; Seattle, Washington Other national governments: Canada, New Zealand, United Kingdom Federal guidance: OMB regulations, agency business case development guidance 18 Selection of Initiatives: Best Practices for e- Gov Business Cases ( cont d) Based on the guidance we reviewed, the most frequently cited elements of a complete business case for an e- government project include discussions of the existing problematic situation or condition and its shortcomings, the concept for an improved future situation/ process, assumptions that predict, simplify, or clarify information about the future situation/ process, the benefits of implementing the future situation/ process, links to strategic objectives, and isks and how they will be mitigated. Additional elements that OMB specified for selecting e- government initiatives include whether the initiative is driven by identified customer needs or discusses plans to identify those customer needs and a strategy for successfully collaborating with other government and nongovernment entities. 19 Selection of Initiatives: Co pleteness of Initial Mini Business Cases: : The following chart shows how many of the mini business cases, which were the bases for selecting the 23 initiatives, included the best practice elements identified on the previous slide. 1 Problem statement/ current condition 14 Concept for future process 22 Assumptions 15 Expected benefits 23 Link to strategic o jectives 10 Risk mitigation strategies 8 Customer needs 9 Colla oration strategy 8 0 5 10 15 20 Source: GAO analysis of information provided by OMB. 1 OMB e- government task force members developed mini business cases for 23 of the 24 initiatives. We did not make a qualitative assessment of the information provided in each element of the mini business cases. 20 Selection of Initiatives: Completeness of Initial Mini Business Cases ( ( cont d) As the chart shows: All 23 business cases included a discussion of the expected benefits of the proposed initiative. Twenty- two identified objectives and future conditions. Only nine ( 39 percent) of the mini business cases discussed how customer needs were to be identified and addressed, even though OMB emphasized that it would choose initiatives for their potential value to customers. Collaboration among agencies and other government entities was addressed by only eight ( 35 percent) of the mini business cases, even though one of OMB s primary objectives was to integrate operations and simplify processes within lines of business and across agencies. 21 Selection of Initiatives: Completeness of Initial Mini Business Cases ( ( cont d) Without identifying and addressing customer needs or collaboration strategies in all of its 24 initiatives, OMB is at increased risk that its initiatives will not meet the President s goal of a citizen- centered electronic government that will result in a major improvement in the federal government s value to its customers. Without identifying and addressing customer needs, the Internet sites and e- government services created by the initiatives may not be useful to those customers that they were intended to serve. Improvements in the federal government s value to its customers may not be realized if agencies that perform similar services across government do not collaborate to ensure that the initiatives provide one- stop or integrated services through these initiatives. . 22 Oversight of Implementation: Best Practices for IT Oversight To identify best practices for the effective oversight and implementation of IT projects, we reviewed GAO and OMB guidance, including the following: GAO guidance: Information Technology Investment Management: A Framework for Assessing and Improving Process Maturity ( exposure draft) ( GAO/ AIMD- 00- 10. 1. 23) Executive Guide: Leading Practices in Executive Decision- Making ( GAO/ AIMD- 99- 32) OMB guidance: OMB Circular A- 130, Management of Federal Information Resources 23 Oversight of Implementation: Best Practices for IT Oversight ( cont d) According to the guidance we reviewed, project implementation documents ( such as funding plans and work plans) should include the following best practice components: estimates of near- term costs, description of the overall resource strategy, including how funds will be obtained, f om what sources, and for what period of time, and how staffing commitments will be obtained from collaborating ( partner) agencies, schedule/ milestones linked to deliverables through the completion of the project, and identification of deliverables. 24 Oversight of Implementation: Completeness of Work and Funding Plans The following chart shows how many of the 24 plans included the best practice elements identified on the previous slide. 1 Estimated costs 19 Funding strategy 9 Staffing 16 Schedule/ milestones 22 Delivera les 24 0 4 8 12 16 20 24 Source: GAO analysis of information provided by OMB. 1 We did not make a qualitative assessment of the information provided in each element of the work plans and funding plans. 25 Oversight of Implementation: Completeness of Work and Funding Plans ( cont d) As the chart shows: All 24 of the initiatives work and funding plans identified projects deliverables, and 22 of the initiatives plans contained a schedule with milestones. Only 9 ( 38 percent) of the initiatives identified a strategy for obtaining needed funds. In addition: Based on the information in the May 2002 work plans, a final completion date was identified for only 14 ( 58 percent) of the initiatives and six ( 25 percent) of the initiatives are not planned to be completed within the 18 to 24 month time frame established by OMB. Based on status information obtained from 23 of the 24 project managers, estimated costs from the May 2002 funding plans have changed more than 30 percent for 12 ( 52 percent) of the initiatives. 26 Oversight of Implementation: Completeness of Work and Funding Plans ( cont d) Without accurate cost, schedule, and performance information, OMB cannot ensure that its e- government initiatives will meet its goals of providing value to customers, improving government efficiency, and deploying in 18 to 24 months. Based on an analysis of the May 2002 work and funding plans, OMB did not have all the information needed to fully monitor the progress and development of the initiatives. OMB may have obtained additional cost, schedule, and performance information on the initiatives through other means. However, OMB did not provide such additional information to GAO. 27 Conclusions Based on the information we reviewed: The business cases, work plans, and funding plans obtained by OMB all contained at least some of the key information we identified as necessary to select and oversee the initiatives. OMB did not collect complete business case information before making its selection of 24 e- government initiatives. Specifically, despite the importance that OMB attached to collaboration and customer focus in its e- government strategy, fewer than half of the initiatives initial mini business cases addressed these topics. . The May 2002 work and funding plans provided OMB with insufficient information to monitor the status of its 24 e- government initiatives. 28 Recommendations The OMB Director should ensure that the managing partners for all 24 e- government initiatives focus on customers by soliciting input from the public and conducting user needs assessments, work with partner agencies to develop and document effective collaboration strategies, and provide OMB with adequate information to monitor the cost, schedule, and performance of the 24 e- government initiatives. 29 Agency Comments In providing oral comments on a draft of this briefing, officials of OMB s Office of Information and Regulatory Affai s and its Office of Gene al Counsel generally agreed with the facts, conclusions, and recommendations. These officials also provided technical comments ( we made changes where appropriate) ; told us that OMB did not provide the more extensive business cases we requested because the business case information that managing partners were required to submit to OMB was contained in the Exhibits 300; told us that OMB did not provide the Exhibits 300 we requested because those documents would not be released unless agencies updated them to reflect the President s 2003 budget ( they added that it is unlikely that these Exhibits would be updated because agencies are now working to develop the Exhibits for the President s 2004 budget) ; and agreed to provide us with the Exhibits 300 developed for the President s 2004 budget as soon as it is updated after the 2004 budget is released. OMB expects these updates to be completed in about a month after the release of the President s budget for most agencies. 30 Appendix I. Cost Information from Work Plans and Funding Plans Cost Estimates from Work Plans and Funding Plans .... .... ..... . . . .... . .... ... ..... . . ..... ..... ... ......... . !. ... .. .... . .. .... . ... .. .... . .. .... . ......... . . ... ..... ..... ..... ..... ..... ..... ..... ................ !...... .. . .. . ..... " .. " .. #.... " .. " .. . .. . !..... ... $.. . ..... ..... ..... "..% "..% "..% & ! ....... ..... ..... ..... ...... ..... ...... .' (.) *... . +.... +.... ..... ..... ..... ..... . .. . .,..-... . /. ...-. . ..... ..... ..... "..% "..% "..% .).. %. . ....... .. (.) 0..%,... ... .,.. ..... .1.+2. .1.+2. ..... .#...1 .#...1 ..... *.%.... !.... .... ..... ..... ..... ..1.. ..... ..1.. 3 ... .... .. (..%. 0...... ....-.. . . ..... ..... ..... ..... ..... ..... . . ... .,.. ... 4.-.... .. 3 ...-.... " .. " .. " .. " .. " .. " .. 4. ....%...% 5....6 3 ...-..... ..#.1 ..... ..#.1 ..... ..... ..... .......... 3 ...-.... . . ... ..1#. ..1#. ..... 2..1. 2..1. ..... . ... .. ...2. ..... ...2. ....1+ ..... ....1+ 7....... /. ...-. . ....#2 ..... ....#2 ...1.. ..... ...1.. 0..8... !*.4./ " .. " .. " .. " .. " .. " .. . 9.... ..#+# ..#+# ..... .2.+.. .2.+.. ..... . (... . . ..... ..... ..+.. ..1.. ...#2 ..... ....,..-. . . . ... ...+. ...+. ..... ..... ..... ..... . ........ 5. 3 . ....... : 3 .......% 5. ; . 4..... .. ...12 ...12 ..... ...... ..#.+ .....1 . 0. .... ..... ..... ..... ...2.. ..... ...2.. . (..... ....1 ..... ...#. .....# ..#.2 #.+.. 3 . ......% !.<,...... . .... -. . .2..2+ ....1. 2.... ...... ..... ...... ....... .. .....%. /. ...-. . ..... ..... ..... " .. " .. " .. . !,.6. ....... ..... ..... ..... .+.+.. ..... .+.+.. .". #. ....... ...... ...... ....... ...... ....... Dollars in millions. Source: Work plans and funding plans submitted to OMB in May 2002. 32 Appendix II. Initiative- Specific Information Government to citizen Government to business Government to government Internal efficiency and effectiveness Cross- cutting Government to Citizen Initiatives Recreation One- Stop GovBenefits/ Eligibility Assistance Online Online Access for Loans USA Services EZ Tax Filing 34 Recreation One- Stop ( Interior) Provide a user- friendly, Web- based resource to citizens with a single point of access to recreational information nationwide. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 350,000 Fiscal year 2003: $ 430,000 Major milestones: An enhanced recreation one- stop Web site was planned to be available in late September or early October 2002. No final completion date was provided in the May 2002 work plan. No tasks were scheduled beyond December 2002. Observation: Costs for fiscal year 2003 had been estimated at about $ 2.1 million in February 2002 but were reduced when a decision was made to use an agency- based approach rather than a contractor to build and operate the Web site. 35 GovBenefits/ Eligibility Assistance Online ( Labor) Provide citizens with an on- line tool for identifying government benefit programs from which they are eligible to receive assistance. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 3.0 million Fiscal year 2003: $ 9.4 million Major milestones: The GovBenefits. gov Web site became operational with 55 programs on April 29, 2002. Project officials plan to add 10 to 15 new programs on a biweekly basis. No final completion date was provided in the May 2002 work plan. Observation: According to the project manager, Labor is anticipating including approximately 200 benefit programs by December 31, 2002. 36 Online Access for Loans ( Education) Provide a single point of entry to allow citizens and businesses to find and apply for loan programs. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 30,000 Fiscal year 2003: to be determined Major milestones: According to the project manager, Education planned to conduct citizen focus groups in September 2002. According to the project manager, Education was rescoping this initiative and planned to obtain approval from OMB for the rescoped initiative by September 30, 2002. No other milestones were provided in the May 2002 work plan. Observation: According to the May 2002 work plan, the business case did not fully recognize differences between agency loan programs or fully explore existing relationships with private sector business partners. 37 USA Services ( General Services Administration) Enhance the way that customers interact electronically with the federal government. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 2.5 million Fiscal year 2003: $ 15.6 million Major milestones: A citizen- based needs and requirements analysis, scheduled to be completed by August 31, 2002, was stopped due to lack of funding. Deployment of USA Services is planned to begin in September 2003. The final completion date for the deployment was not provided in the May 2002 work plan. Observation: According to the project manager, the initiative s fiscal year 2002 budget was reduced from $ 2.5 million to $ 100,000, while estimated fiscal year 2003 costs increased to $ 15.5 million because of insufficient funding for fiscal year 2002. 38 EZ Tax Filing ( Internal Revenue Service) Allow certain citizens to electronically file tax returns free of charge. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 6.2 million Fiscal year 2003: $ 200,000 Major milestones: IRS reached preliminary agreements with a consortium of private tax preparation businesses on July 31, 2002. IRS plans to launch the site by January 15, 2003. Observations: The site will serve about 16 percent of taxpayers, according to the initial mini business case. Taxpayers must be in the 0 to 15 percent tax bracket and meet other requirements. IRS has revised FY 2003 total estimated costs to $ 4.4 million. 39 Government to Business Initiatives Online Rulemaking Management Expanding Electronic Tax Products for Businesses Federal Asset Sales International Trade Process Streamlining One- Stop Business Compliance Information Consolidated Health Informatics 40 Online Rulemaking Management ( Transportation) Provide a single portal for businesses and citizens to access the federal rulemaking process and comment on proposed rules. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 300,000 Fiscal year 2003: to be determined Major milestones: A regulations. gov portal linking to all agency docket sites was planned to be completed by June 17, 2002. According to the project manager, the Web site was planned to be implemented by September 27, 2002. The back- end knowledge management system to support e- dockets is planned to be completed by December 31, 2003. Observation: Other agencies continue to implement new rulemaking systems. For example, EPA launched its own on- line rulemaking system in spring 2002. 41 Expanding Electronic Tax Products for Businesses ( IRS) Through seven projects, reduce the tax- reporting burden on businesses. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 27.7 million Fiscal year 2003: $ 19.0 million Major milestones: Two of four on- line forms are planned to be implemented by January 2003. Decision papers are planned to be finalized by the fall of 2003 for three projects. Observations: The scope of the initiative remains undefined. IRS reported it plans to use decision papers to determine whether three of the seven projects should continue. The May 2002 work plan does not include a strategy for collaboration with other agencies. 42 Federal Asset Sales ( General Services Administration) Provide a one- stop online access point for federal asset sales. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 3.0 million Fiscal year 2003: $ 5.7 million Major milestones: A draft model for a seller- centric, end- to- end process to support on- line asset sales is planned to be submitted by October 15, 2002. The Federal Asset Sales Web site is planned to be in place by January 2003. Observation: According to the project manager, the estimated costs have increased to $ 9.9 million for fiscal year 2003. 43 International Trade Process Streamlining ( Commerce) Provide a single site where new or existing exporters can be assisted electronically through the entire export process. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 1.4 million Fiscal year 2003: $ 1.0 million Major milestones: Commerce plans to deploy a one- stop, one- form service by November 13, , 2002. Commerce plans to integrate its Web site content with BuyUSA. com by November 4, 2002. Commerce plans to begin live use of the online collaborative workspace by February 25, 2003. Observation: The work plan does not contain descriptions of deliverables associated with any of the milestones. 44 One- Stop Business Compliance Information ( Small Business Administration) Provide a single portal for businesses to easily access information about laws and regulations. Estimated costs from the May 2002 plans: Fiscal year 2002: no estimate provided Fiscal year 2003: no estimate provided Major milestones: Businesslaw. gov, the portal s predecessor, was unveiled in late 2001. Phase I of the One- Stop Business Compliance Information portal was planned to be implemented in late September or early October 2002. Observations: Phase I projects include purchasing, testing, and piloting information management software, launching four on- line business guides, and implementing a prototype for registering and licensing a business on line. In August 2002, the project manager reported that the estimated costs are $ 1.0 million and $ 5 million in fiscal years 2002 and 2003 respectively. 45 Consolidated Health Informatics ( Health & Human Services) Provide the basis for a unified system for sharing medical records information among government agencies and health care organizations. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 1.9 million Fiscal year 2003: $ 5.4 million Major milestones: Identification of key governmentwide definitions was planned to be completed by September 2002. A pilot project demonstration is planned to be completed by December 2004. No final implementation date was provided in the May 2002 work plan. Observations: The work plan does not describe the tasks to be completed. The work plan does not discuss a strategy for achieving partnership with private- sector health care providers and insurers. 46 Government to Government Initiatives Geospatial Information One- Stop E- Grants Disaster Management Project SAFECOM E- Vital 47 Geospatial Information One- Stop ( Interior) Provide a single portal for access to standardized and coordinated federal, state, and local geospatial data. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 4.8 million Fiscal year 2003: $ 8.5 million Major milestones: The inventory and documentation of existing geospatial data was planned to be completed in July 2002. According to the project manager, it is not known whether participating agencies have completed this task. A requirements analysis was planned to be completed by August 2002. According to the project manager, delays in contracting have moved the completion date to October 2002. Deployment of the portal is planned for September 2004. Observation: According to the project manager, fiscal year 2002 costs have increased to $ 7.2 million to support additional contracting requirements. 48 e- Grants ( Health & Human Services) Provide a single site intended to streamline the federal grants management process and allow customers of federal grants to find and apply for grants. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 4.1 million Fiscal year 2003: $ 13.5 million Major milestones: On July 1, 2002, HHS started a pilot to find federal grant opportunities via the Web ( www. fedgrants. gov) . HHS plans to deploy a simple, unified grants application mechanism by October 1, 2003. Observation: No funding sources for the estimated costs were identified. 49 Disaster Management ( Federal Emergency Management Agency) Provide a single portal for all disaster- related information and a secure private portal for data sharing and customer support. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 22.6 million Fiscal year 2003: $ 31.8 million Major milestones: The phase one version of the disasterhelp. gov portal was scheduled to be completed on August 15, 2002. As of mid- September 2002, the portal was not yet available. FEMA plans to deploy an integrated channel for access to disaster management organizations, information, services, and tools by October 1, 2003. Observations: According to FEMA s Chief Operating Officer, the agency has encountered difficulty achieving the level of participation it needs from its partners. No funding sources for the estimated costs were identified. 50 Project SAFECOM ( Treasury) Accelerate the implementation of interoperable public safety communications. Estimated costs from the May 2002 plans: Fiscal year 2002: no estimate provided Fiscal year 2003: no estimate provided Major milestones: Submit by the end of fiscal year 2002 a draft Executive Order to reallocate the federal portion of the radio frequency spectrum for public safety responders. No nationwide implementation date was provided in the May 2002 work plan. Observations: The May 2002 work plan did not contain information regarding estimated costs, agency partners, or required staffing. On May 31, 2002, FEMA assumed management of this initiative from Treasury. According to the current project manager, the scope and objectives of the project are currently being reassessed. 51 e- Vital ( Social Security Administration) Through two separate projects, expand ongoing efforts to exchange vital records data between federal agencies and state governments. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 3.0 million Fiscal year 2003: $ 38.6 million Major milestones: Implementation of Electronic Verification of Vital Events ( EVVE) in five states is planned to be completed by April 30, 2004. Implementation of Electronic Death Registration ( EDR) in three states is planned to be completed by April 30, 2004. No nationwide implementation date was provided in the May 2002 work plan. Observations: According to the project manager, neither project was intended to be complete in 18 24 months. state governments often lack incentives to participate. 52 Internal Efficiency & Effectiveness Initiatives E- Training Recruitment One- Stop Enterprise HR Integration: Integrated HR & e- Clearance E- Payroll E- Travel Integrated Acquisition Environment Electronic Records Management 53 e- Training ( Office of Personnel Management) Create an electronic training environment that supports the professional development of the federal workforce. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 2.1 million Fiscal year 2003: $ 2.7 million Major milestones: Initial launch of the Web site took place on July 23, 2002. An expanded site that will include fee- for- service courses is planned to be completed by October 31, 2002. Observations: OPM has not identified funding sources for all costs. OPM has received monetary contributions from two of the four agencies assigned as initiative partners. 54 Recruitment One- Stop ( Office of Personnel Management) Create a one- stop on- line recruiting resource for the federal government. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 1.2 million Fiscal year 2003: $ 1.2 million Major milestones: Appearance and usability changes to the USAJOBS Web site, planned for June 30, 2002, have been completed. Full implementation of the new Web site, including full application tracking and integration with agency systems, is planned to be completed by August 29, 2003. Observations: According to the project manager, the costs for fiscal year 2003 have increased to $ 8.3 million based on significant changes to the project plans, such as accelerated milestones. As of September 10, 2002, the project manager reported that the acquisition strategy, including the schedule for the request for proposal, was in development. 55 Enterprise HR Integration: Integrated HR & e- Clearance ( Office of Personnel Management) Through two separate projects, ( 1) provide accurate, up- to- date data on all federal employees, active and separated, and ( 2) improve processing of individuals for security clearance decisions. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 5.4 million Fiscal year 2003: $ 23.2 million Major milestones: A working prototype of an integrated human resource system is planned to be completed by September 29, 2003. OMB removed the completion date from the copy of the May 2002 work plan provided to us. Observations: According to the project manager, costs reported in the May 2002 plans did not reflect OMB s criteria to deploy in 18 to 24 months. Costs under such a schedule would be $ 18.2 million for fiscal year 2002 and $ 26.9 million for fiscal year 2003, and the full project implementation is scheduled for the end of fiscal year 2006. 56 e- Payroll ( Office of Personnel Management) Simplify and integrate payroll systems across the federal government. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 2.2 million Fiscal year 2003: $ 50.8 million Major milestones: OPM planned to select providers of payroll services by September 30, 2002. OPM plans to complete policy changes by March 31, 2003. Observation: According to OPM s May 2002 funding plan, the cost increase in fiscal year 2003 is due to $ 32.2 million in implementation support. This includes both contractor and internal government costs. 57 e- Travel ( General Services Administration) Streamline the government s travel administration by creating a governmentwide Web- based travel management service. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 2.5 million Fiscal year 2003: $ 13.5 million Major milestones: An initial assessment of employee requirements was planned to be completed by May 31, 2002. According to the project manager, the assessment completion date was revised to August 30, 2002. A fully integrated Web- based service is planned to be deployed by December 30, 2003. Observation: According to the project manager, full funding is expected from GSA for fiscal years 2002 and 2003, although a contingency funding plan has been developed. 58 Integrated Acquisition Environment ( General Services Administration) Create an Internet portal that provides a simpler, common, integrated business process for buyers and sellers of government goods and services. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 28.3 million Fiscal year 2003: $ 54.0 million Major milestones: According to the project manager, a directory of contracts was completed on July 15, 2002, and is being tested. Full deployment of the contract directory is planned for December 2002. Full operational capability is planned to be completed by January 2005. Observations: Funding plan includes a strategy for obtaining contributions from partner agencies for project development and for charging fees for operation and maintenance of the portal. According to the project manager, GSA and OMB are working to reach an agreement on a long- term funding model to distribute costs among all participating agencies. 59 Electronic Records Management ( National Archives & Records Administration) Establish procedures, requirements, and standards for electronic record keeping by federal agencies. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 450,000 Fiscal year 2003: no estimate provided Major milestones: NARA planned to prepare a white paper with an analysis of alternative options and recommendations by October 4, 2002. The adoption of DOD 5015. 2 STD Version 2.0 as the mandatory federal records management application standard is planned to be announced by December 31, 2002. No final completion date was provided in the May 2002 work plan. Observation: Cost and schedule information are missing for several components of the initiative in the May 2002 work plan. 60 Cross- Cutting Initiative e- Authentication 61 e- Authentication ( General Services Administration) Provide a verification of identity and electronic signatures gateway that allows citizens and businesses to conduct secure electronic transactions in conjunction with the other 23 e- government initiatives. Estimated costs from the May 2002 plans: Fiscal year 2002: $ 3.5 million Fiscal year 2003: $ 46.6 million Major milestones: Assessments of security risks for 12 of the initiatives were planned to be completed by July 2002. According to the project manager, the analyses were not completed because the tool used for the analyses needed significant modifications. Assessments for all initiatives are now planned to be completed by December 2002. The design, testing, and deployment of a prototype was planned to be completed by September 30, 2002. The production authentication gateway is planned to be completed in September 2003. Observation: According to the project manager, estimated costs for fiscal year 2003 were reduced to $ 25.0 million, reflecting a change in the strategy for purchasing smart cards. 62 (310355) GAO*s Mission The General Accounting Office, the investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. GAO examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help Congress make informed oversight, policy, and funding decisions. GAO*s commitment to good government is reflected in its core values of accountability, integrity, and reliability. Obtaining Copies of The fastest and easiest way to obtain copies of GAO documents at no cost is through the Internet. 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Orders for 100 or more copies mailed to a single address are discounted 25 percent. Orders should be sent to: U. S. General Accounting Office 441 G Street NW, Room LM Washington, D. C. 20548 To order by Phone: Voice: (202) 512- 6000 TDD: (202) 512- 2537 Fax: (202) 512- 6061 To Report Fraud, Contact: Waste, and Abuse in Web site: www. gao. gov/ fraudnet/ fraudnet. htm E- mail: fraudnet@ gao. gov Federal Programs Automated answering system: (800) 424- 5454 or (202) 512- 7470 Public Affairs Jeff Nelligan, managing director, NelliganJ@ gao. gov (202) 512- 4800 U. S. General Accounting Office, 441 G Street NW, Room 7149 Washington, D. C. 20548 a GAO United States General Accounting Office OMB*s e- government task force developed abbreviated (* mini*) business cases on which to base its selection of initiatives. GAO compared the content of these mini business cases with best practices for the content of e- government business cases. Based on this comparison, all the business cases contained at least some of the key information needed, but many elements were missing (see figure). In particular, fewer than half addressed collaboration and customer focus, despite the importance of these topics to OMB*s e- government strategy and the President*s stated goal: to *champion citizen- centered electronic government that will result in a major improvement in the federal government*s value to the citizen.* Similarly, the work and funding plans associated with the initiatives all contained at least some key information necessary for OMB oversight. However, based on GAO*s analysis, OMB did not have all the information needed to fully monitor the progress and development of the initiatives. For example, only 9 of the initiatives identified a strategy for obtaining needed funds. Also, the accuracy of the estimated costs in the funding plans may be questionable: since May 2002, estimated costs for 12 of the initiatives have changed significantly* by more than 30 percent. Without accurate cost, schedule, and performance information, OMB cannot ensure that its e- government initiatives are on schedule and achieving their goals of providing value to customers and improving government efficiency. Best Practice Elements Included in Mini Business Cases ELECTRONIC GOVERNMENT Selection and Implementation of the Office of Management and Budget*s 24 Initiatives www. gao. gov/ cgi- bin/ getrpt? GAO- 03- 229. To view the full report, including the scope and methodology, click on the link above. For more information, contact Linda Koontz at (202) 512- 6240 or koontzl@ gao. gov. Highlights of GAO- 03- 229, a report to the Committee on Governmental Affairs, U. S. Senate. November 2002 In the President*s Management Agenda, a key element for reforming the federal government is the expansion of electronic government (e- government)* that is, the use of technology, particularly the Internet, to enhance access to government information and services. Accordingly, the Office of Management and Budget (OMB) established a task force to select and manage strategic e- government initiatives. GAO was asked to review the completeness of information used for choosing and overseeing these initiatives. The OMB Director should ensure that the managing partners for all 24 e- government initiatives focus on customers by soliciting input from the public and conducting user needs assessments, work with partner agencies to develop and document effective collaboration strategies, and provide OMB with adequate information to monitor the cost, schedule, and performance of the 24 e- government initiatives. Page i GAO- 03- 229 Electronic Government Contents Letter 1 Results in Brief 2 Recommendations for Executive Action 2 Agency Comments and Our Evaluation 3 Appendix Appendix I: Selection and Implementation of the Office of Management and Budget*s 24 Initiatives 4 Abbreviations e- government electronic government G2B government to business G2C government to individual citizens G2G government to government IEE internal efficiency and effectiveness IT information technology MP managing partner OMB Office of Management and Budget PMC President*s Management Council Page 1 GAO- 03- 229 Electronic Government United States General Accounting Office Washington, D. C. 20548 Page 1 GAO- 03- 229 Electronic Government A Page 2 GAO- 03- 229 Electronic Government Page 3 GAO- 03- 229 Electronic Government Page 4 GAO- 03- 229 Electronic Government Appendix I Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 5 GAO- 03- 229 Electronic Government Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 6 GAO- 03- 229 Electronic Government Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 7 GAO- 03- 229 Electronic Government Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 8 GAO- 03- 229 Electronic Government Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 9 GAO- 03- 229 Electronic Government Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 10 GAO- 03- 229 Electronic Government Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 11 GAO- 03- 229 Electronic Government Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 12 GAO- 03- 229 Electronic Government Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 13 GAO- 03- 229 Electronic Government Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 14 GAO- 03- 229 Electronic Government Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 15 GAO- 03- 229 Electronic Government Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 16 GAO- 03- 229 Electronic Government Appendix I Selection and Implementation of the Office of Management and Budget*s 24 Initiatives Page 17 GAO- 03- 229 Electronic Government 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