USDA later disbanded the Info Share program. Service Center IT Modernization Is Massive and Complex

USDA’s service center IT modernization consists of four major projects, undertaken concurrently since fiscal year 1996: (1) developing new business processes, (2) acquiring and installing telecommunications equipment, (3) acquiring, implementing, and maintaining a common computing environment at about 3,100 locations, and (4) acquiring and developing geospatial data. Overall Life-Cycle Costs Estimated to Exceed $3 Billion

USDA’s life-cycle cost estimates show that the department could ultimately spend more than $3 billion on its four service center IT modernization projects from 1996 to 2011. Specifically, the department (1) has acquired, and plans to continue acquiring, new technology without first reengineering its processes to provide one-stop service in all service centers; (2) is not managing its service center IT modernization projects as investments using cost, benefit, risk, and performance information to select, control, and evaluate projects throughout their life-cycle; (3) lacks a comprehensive plan for its service center IT modernization that specifies dependencies among projects, critical milestones, and resources required; (4) is not following an incremental approach in acquiring technology using cost justifications and performance measures for each increment to reduce risks associated with large-scale acquisitions or projects; and (5) has not established the management structure with the requisite responsibility, accountability, and authority for managing and coordinating the separate service center IT modernization projects and ensuring that critical tasks are completed on time and within budget. Specifically, USDA has not assigned a senior-level official with overall responsibility, authority, and accountability for managing and coordinating the separate service center IT modernization projects and ensuring that critical tasks are completed on time, within budget, and in accordance with the Clinger-Cohen mandates. As a result, the plan had still not been completed as of May 31, 1998. Conclusions

USDA’s effort to modernize business processes and IT for its service centers is expected to be the biggest, most costly and complex IT modernization effort in its history, with estimated costs ultimately exceeding $3 billion. Until the department corrects these weaknesses, it is unlikely to achieve an adequate return on its investment, meet the needs of its customers, or achieve the Secretary’s vision of one-stop service. USDA also agreed to complete a comprehensive plan identifying critical milestones, project dependencies, and resources required for the modernization. 7. 8. USDA has misread the clear language of the report which correctly states that the department plans to spend over $200 million in fiscal years 1998 and 1999. A recorded menu will provide information on how to obtain these lists.
Why GAO Did This Study

Pursuant to a congressional request, GAO provided information on the Department of Agriculture's (USDA) effort to modernize information technology (IT) at its field service centers, focusing on: (1) USDA's plans and ongoing efforts, including estimated costs, to modernize IT for its service centers; and (2) any significant risks in these plans and ongoing efforts.

What GAO Found

GAO noted that: (1) USDA's service center IT modernization effort, as currently being planned, will be the biggest, most costly, and complex in the department's history; (2) it involves projects to: (a) develop new business processes; (b) acquire and install telecommunications equipment; (c) acquire, implement, and maintain a common computing environment at about 3,100 locations; and (d) acquire and develop geospatial data; (3) USDA's life-cycle cost estimates show that the department could ultimately spend more than $3 billion for these projects by 2011; (4) the department reported spending about $145 million since starting its service center IT modernization in 1996, and plans to spend over $200 million more during fiscal years 1998 and 1999; (5) USDA's multibillion dollar undertaking faces significant risks; (6) specifically: (a) USDA continues to acquire new technology before it has reengineered business processes for providing one-stop service in all of its service centers; (b) USDA is not managing its IT-related projects for its service centers as investments, using cost, benefit, risk, and performance information to select, control, and evaluate projects throughout their life-cycle; (c) USDA has not completed a comprehensive plan identifying critical milestones, project dependencies, and resources required for the modernization; (d) in acquiring technology, USDA is not following an incremental approach that uses cost justifications and performance measures for each increment to reduce risks associated with large-scale acquisitions or projects; and (e) USDA lacks the project management structure needed to manage a modernization of this magnitude; specifically, USDA has not assigned a senior-level official with overall responsibility, authority, and accountability for managing and coordinating the separate, service center IT modernization projects and for ensuring that the Clinger-Cohen mandates have been met and that critical tasks are completed on time and within budget; (7) as a result of these risks, even after spending billions of dollars on its service center IT modernization, the department may not obtain an adequate return on its investment, meet the needs of its customers, or achieve the Secretary of Agriculture's vision of one-stop service; and (8) many of the weaknesses GAO identified are similar to those that caused USDA's earlier Info Share program, which cost more than $100 million, to fail.