http://www.gcn.com/vol1_no1/daily-updates/35278-1.html

03/15/05 

Customs automation project still troubled, GAO says 

By Wilson P. Dizard III 
GCN Staff

The Homeland Security Department's Automated Commercial Environment
project to build a new trade processing system faces further cost and
schedule overruns unless it tightens program management, the
Government Accountability Office said in a new report. 

The Border and Transportation Security Directorate's Customs and
Border Protection agency runs the ACE project, which it inherited from
the Treasury Department's Customs Service. The government auditing
agency issued recommendations last year in a report that criticized
cost and schedule overruns in the $1.3 billion, 15-year program [See
GCN story]. 

In GAO's new report issued yesterday, auditors said that DHS had dealt
with previous cost and schedule problems by shifting its baselines for
program goals, as last year's audit report recommended. 

But the new report added that "it is unlikely that these actions will
prevent future overruns because DHS has relaxed system quality
standards, meaning that milestones are being passed despite material
system defects." 

The auditors said that fixing the new ACE problems would force program
officials to pilfer resources from future system releases. 

Auditors also criticized the department's fiscal 2005 expenditure plan
submitted for congressional oversight, saying it lacks needed details
and is based on outdated information. "Without complete information
and an up-to-date plan, meaningful congressional oversight of program
progress and accountability is impaired," the report said. 

In a written response to the report, DHS agreed with the auditors'
recommendations and said it would respond to them. Customs issued a
systems integration contract to IBM for ACE in 2001.











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