Federal Manager's Daily Report

The Department of Homeland Security has addressed earlier

recommendations to strengthen management of the development

of a multiyear, multibillion-dollar trade processing

system, the “automated commercial environment,” but much

remains to be done, the Government Accountability Office

has said.

It said DHS has been slow to “proactively manage the

dependencies between ACE and related DHS border security

programs,” something that if not taken care of early could

lead to an expensive fix on down the line to get them to

work together.

As recommended the department has addressed cost and

schedule overruns by revising baselines, but that is

unlikely to solve the problem because DHS has relaxed

system quality standards and is passing milestones without

regard to material system defects, making future overruns

likely, according to GAO-05-267.

“Until the ACE program is held accountable not only for

cost and schedule but also for system capabilities and

benefits, the program is likely to continue to fall short

of expectations,” said GAO.

It also said the usefulness of the fiscal 2005 expenditure

plan for congressional oversight is limited because it

fails to “adequately describe progress against commitments

such as capabilities, schedule, cost, and benefits —

making it hard to judge overall progress compared to

previous plans.

GAO questioned the plan’s usefulness to Congress as an

accountability mechanism in light of recent program changes

such as additional program releases, and changes to the

roles and responsibilities of the ACE development contractor

and program office.