	Background

The E-Gov Act created ITEP to improve the skills of the federal workforce  in using information technology. The opportunity to begin exchanges is due  to end in December 2007. In addition to  OMB, OPM worked with the Department of Justice and the Office of  Government Ethics to finalize the regulations. In the ITEP regulations, OPM established a requirement that each  participating agency develop an ITEP plan. Seven Agencies Are Initiating Programs, but No Exchanges Have Taken Place

With only 1 year to go before the opportunity to begin exchanges ends, the  seven agencies participating are still initiating their programs, and no  exchanges have taken place. All seven agencies have drafted plans, but  only three—DHS, DOD, and Commerce—have finalized them. The skills most frequently identified  by agency officials were enterprise architecture, project management, and  information security. In its last two  semiannual reports, in April and October 2006, OPM has reported on the  status of agency plans but has not reported that no exchanges have taken  place. Agencies Face Implementation Challenges

OPM, agencies, and others have identified key challenges that will confront  agencies as they finish their plans and implement ITEP programs, including  limited availability of private-sector employees with the skills agencies  want, concern that sending employees to agencies may hinder companies’  ability to bid on future contracts, possible reluctance of private-sector  employees to be subject to federal ethics rules, and more effectively  marketing the program. Desired Skills Are in Short Supply in Both the Federal Government and the Private Sector

Federal agencies face a challenge in finding employees from the private  sector with the skills they are most interested in pursuing. For example, although this has not yet  occurred, agencies and IAC agreed that the need to file a financial  disclosure statement could discourage some potential private company  participants. IAC has actively marketed ITEP to its  member companies and other federal IT associations; however, marketing  efforts through OPM’s USAJOBS Web site, have not been productive,  according to federal agencies. OPM and the  participating agencies are aware of the challenges and acknowledge that  they need to be addressed. However, given the short time remaining for  beginning exchanges, it will be essential to expeditiously address the  challenges to enable a significant number of successful exchanges. Recommendations for Executive Action

We recommend that, as part of OPM’s responsibilities under the E-Gov Act,  the Director of OPM include in its semiannual reports to the Congress (1)  the number of exchanges that have occurred, as required by law, and (2)  the status of efforts to address challenges facing agencies in implementing  ITEP exchanges and whether these efforts are leading to exchanges. Objectives, Scope, and Methodology

Our objectives were to determine the (1) status of the Information  Technology Exchange Program and (2) challenges facing the program.
Why GAO Did This Study

Recognizing the importance of human capital to information technology (IT) and the need to improve the skills of federal IT workers, Congress created the Information Technology Exchange Program (ITEP) as part of the E-Government Act of 2002. ITEP aims to improve federal IT skills through exchanges of staff between the government and the private sector. The Office of Personnel Management (OPM) was required to issue implementing regulations, which it did in September 2005, and to report semiannually to the Congress. OPM's regulations require that each participating agency develop an ITEP plan before proceeding with exchanges. Agencies' opportunity to begin exchanges ends in December 2007. GAO is required to evaluate the program by December 2006. As agreed, GAO's objectives were to determine (1) the status of the program and (2) challenges facing agencies. To address these objectives, GAO analyzed key documents and interviewed OPM, participating agencies, and others.

What GAO Found

With only 1 year remaining to begin exchanges under the ITEP program, the seven agencies that volunteered to participate are still initiating their programs, and no exchanges have taken place. All participating agencies have drafted plans, but only three--Department of Homeland Security, Department of Defense, and Department of Commerce--have finalized them. Further, only Homeland Security has attempted to negotiate an exchange, but it was unsuccessful. In its last two semiannual reports, OPM has reported on the status of agency plans, but has not reported that no exchanges have taken place to date. OPM, agencies, and others have identified key challenges that will confront agencies as they finish their plans and begin to implement ITEP programs. First, employees with desired skills are in short supply in both the federal government and the private sector, particularly in enterprise architecture, project management, and information security, according to industry representatives. Second, companies are concerned that employee exchanges could hinder future business, since a company with an employee at an agency might be seen as having an unfair advantage in bidding on agency procurements. Third, federal ethics requirements, especially financial disclosure, could discourage private-sector employees from participating. And lastly, Federal agencies' current marketing through a Web site has not been productive, according to participating agencies; suggested improvements include using the media and making personal contacts with companies. OPM and the participating agencies are aware of the challenges and acknowledge that they need to be addressed. However, given the short time remaining before authority to begin new exchanges ends (see figure), it will be essential to expeditiously address the challenges to enable a significant number of successful exchanges.