2). In February 2008, OPM renamed the program RetireEZ and deployed a  limited initial version of DBTS. In October 2008, after 5 months of  attempting to address system quality issues, the agency terminated the  contract. The agency only partially implemented two of eight capabilities that it  identified to modernize retirement processing. Specifically, it had achieved partial implementation of an integrated  database of retirement information that was intended to be accessible to  OPM and agency retirement processing personnel. OPM has also partially implemented enhanced customer service  capabilities. Further, OPM has not implemented a planned capability for active and  retired federal employees to access online retirement information through  self-service tools. Specifically, although agency documents describe  program implementation activities, they do not include a definition of the  program, its scope, lines of responsibility and authority, management  processes, and schedule. Until the agency completes and uses a  plan that includes all of the above elements to guide its efforts, it will not  be properly positioned to obtain agreement with relevant stakeholders  (e.g., Congress, OMB, federal agencies, and OPM senior executives) for its  restructured retirement modernization initiative. Also, OPM has not established and validated a  performance measurement baseline, which is essential for reliable EVM. Further, although OPM is revising its previously developed system  requirements, it has not established processes and plans to guide this  work. Nor has the agency addressed test activities, even though  developing processes and planning test activities early in the life cycle are  recognized best practices for effective testing. Furthermore, although  OPM’s Executive Steering Committee and Investment Review Board have  recently become more active regarding RetireEZ, these bodies did not  exercise effective oversight in the past, which has allowed the  aforementioned management weaknesses to persist. Notably, OPM has not  established guidance regarding how these entities are to engage with the  program when corrective actions are needed. Until OPM addresses these  weaknesses, many of which we and others made recommendations to  correct, the agency’s retirement modernization initiative remains at risk of  failure. However,  the agency does not yet have a requirements management plan. Institutionalizing effective planning and  management is critical not only for the success of this initiative, but also  for that of other modernization efforts within the agency. Recommendations for Executive Action

To improve OPM’s effort toward planning and implementing its retirement  modernization program by addressing management weaknesses, we  recommend that the Director of the Office of Personnel Management  provide immediate attention to ensure the following six actions are taken:    Develop a complete plan for the restructured program that defines the  scope, implementation strategy, lines of responsibility and authority,  management processes, and schedule. To assess the status of OPM’s efforts toward planning and implementing  the RetireEZ program, we  reviewed and analyzed program documentation, including program  management plans, briefing slides, and project status documentation, to  identify planned retirement modernization capabilities and determine to  what extent these capabilities have been implemented;    evaluated the agency’s documentation about restructuring the program  and analyzed the extent to which the documentation describes current and  planned RetireEZ program activities;  identified and evaluated the agency’s program goals and measures and  compared them to relevant guidance to determine the extent to which the  goals and measures are described in results-oriented terms;    supplemented agency program documentation and our analyses by  interviewing agency and contractor officials, including the OPM Director,  Chief Information Officer, Chief Financial Officer, Director of  Modernization, Associate Director for Human Resources Products and  Services Division, and executives from Hewitt Associates and Northrop  Grumman Corporation; and    observed retirement operations and ongoing modernization activities at  OPM and contractor facilities in Washington, D.C.; Boyers, Pennsylvania;  and Herndon, Virginia. Specifically,  to evaluate whether OPM effectively developed a reliable program cost  estimate, we analyzed the agency’s program documentation and  determined to what extent the agency had completed key activities  described in our Cost Estimating and Assessment Guide;  to assess OPM’s implementation of EVM, we reviewed program progress  reporting documentation and compared the agency’s plans for restarting  its EVM-based progress reporting against relevant guidance, including our  Cost Estimating and Assessment Guide;  regarding requirements management, we evaluated OPM’s processes for  developing and managing retirement systems modernization requirements  and compared the effectiveness of those processes against recognized  guidance;  to determine the effectiveness of the agency’s test planning for the  retirement modernization, we reviewed program activities and test plans  against best practices and evaluated the extent to which the agency has  begun planning for these activities; and    we reviewed and analyzed documentation from program oversight entities  and evaluated the extent to which these entities took actions toward  ensuring the RetireEZ program was being effectively overseen.
Why GAO Did This Study

For the past two decades, the Office of Personnel Management (OPM) has been working to modernize the paper-intensive processes and antiquated systems used to support the retirement of federal employees. By moving to an automated system, OPM intends to improve the program's efficiency and effectiveness. In January 2008, GAO recommended that the agency address risks to successful system deployment. Nevertheless, OPM deployed a limited initial version of the modernized system in February 2008. After unsuccessful efforts to address system quality issues, OPM suspended system operation, terminated a major contract, and began restructuring the modernization effort, also referred to as RetireEZ. For this study, GAO was asked to (1) assess the status of OPM's efforts to plan and implement the RetireEZ program and (2) evaluate the effectiveness of the agency's management of the modernization initiative. To do this, GAO reviewed OPM program documentation and interviewed agency and contractor officials.

What GAO Found

OPM remains far from achieving the modernized capabilities it had planned. Specifically, the agency has partially implemented two of eight planned capabilities: (1) an integrated database of retirement information accessible to OPM and agency retirement processing personnel and (2) enhanced customer service capabilities that support customer needs and provide self-service tools. However, the remaining six capabilities have yet to be implemented because they depended on deliverables that were to be provided by a contract that is now terminated. Examples of these missing capabilities include: (1) automated submission of retirement information through interfaces with federal agencies and (2) Web-accessible self-service retirement information for active and retired federal employees. Further, OPM has not yet developed a complete plan that describes how the program is to proceed without the system that was to be provided under the terminated contract. Although agency documents describe program implementation activities, they do not include a definition of the program, its scope, lines of responsibility and authority, management processes, and a schedule. Also, modernization program documentation does not describe results-oriented performance goals and measures. Until the agency completes and uses a plan that includes all of the above elements to guide its efforts, it will not be properly positioned to move forward with its restructured retirement modernization initiative. Further, OPM has significant weaknesses in five key management areas that are vital for effective development and implementation of its modernization program: cost estimating, earned value management (a recognized means for measuring program progress), requirements management, testing, and oversight. For example, the agency has not developed a cost estimating plan or established a performance measurement baseline--prerequisites for effective cost estimating and earned value management. Further, although OPM is revising its previously developed system requirements, it has not established processes and plans to guide this work or addressed test activities even though developing processes and plans, as well as planning test activities early in the life cycle, are recognized best practices for effective requirements development and testing. Finally, although OPM's Executive Steering Committee and Investment Review Board have recently become more active regarding RetireEZ, these bodies did not exercise effective oversight in the past, which has allowed the aforementioned management weaknesses to persist and OPM has not established guidance regarding how these entities are to intervene when corrective actions are needed. Until OPM addresses these weaknesses, many of which GAO and others made recommendations to correct, the agency's retirement modernization initiative remains at risk of failure. Institutionalizing effective management is critical not only for the success of this initiative, but also for that of other modernization efforts within the agency.