First, Customs is redesigning the import process to better meet customer needs and improve operational efficiency and effectiveness. Second, Customs is developing its new automated import processing system (ACE) applications to support the new import process and comply with NCAP-mandated functions. Customs plans to begin deploying ACE in October 1998. Customs Is Not Effectively Applying Critical Management Practices

In implementing its NCAP strategy, Customs has not adhered to strategic information management best practices that help organizations (1) mitigate the risks associated with modernizing automated systems and (2) better position themselves to achieve success. Specifically, Customs did not (1) conduct the requisite analyses (e.g., cost-benefit, feasibility, alternatives) before committing to the CDC-2000 project, (2) redesign its import and other business processes before the agency selected the hardware for ACE and other systems, (3) manage ACE as an investment, and (4) designate strict accountability for ensuring that it successfully incorporates all NCAP-mandated functions into the agency’s modernization effort. This configuration is commonly referred to as an architecture and serves as a guide for modernizing automated systems. In response to these findings, Customs hired contractors to help perform these analyses, but it continues to develop ACE on CDC-2000 hardware and plans to continue making CDC-2000 purchases. We found, however, that clear accountability for meeting NCAP requirements is lacking. However, Customs has not assigned responsibility for ensuring that NCAP is successfully implemented. Customs is in the early stages of its modernization and has time to implement these best practices. Ensure that the export and passenger business processes are completed and the requirements generated from these two tasks, along with those of the import process requirements, are used to determine how Customs should accomplish its mission in the future, including who will perform operations and where they will be performed, what functions must be performed as part of these operations, what information is needed to perform these functions, and where data should be created and processed to produce such information, what alternative processing approaches could be used to satisfy Customs’ requirements, and what are the costs, benefits, and risks of each approach, and what processing approach is optimal, and not resume CDC-2000 purchases unless CDC-2000 is determined to be the optimal approach. Scope and Methodology

To determine the status of Customs’ strategy for implementing the National Customs Automation Program (NCAP), we reviewed the law—and its legislative history—establishing NCAP.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Customs Service's efforts to modernize its automated systems, focusing on: (1) the status and adequacy of Customs' implementation of the National Customs Automation Program (NCAP); and (2) whether Customs is using a best-practices approach to improve mission performance through strategic information management and technology in implementing NCAP.

What GAO Found

GAO found that: (1) Customs is redesigning its import process and plans to develop a new automated import system while it enhances its present system to meet NCAP mandates in the interim; (2) the new import process will serve customer needs better and improve operational efficiency and effectiveness; (3) Customs plans to deploy its new import system in October 1998; (4) Customs' modernization efforts are vulnerable to failure because it has not effectively applied best practices to the implementation of its NCAP strategy; (5) Customs selected new systems before it redesigned its key business processes and is not applying specific criteria in assessing projects, alternatives, costs and benefits, and systems architecture; (6) Customs has not managed its new automated system acquisition as an investment nor planned how to incorporate NCAP requirements into it; (7) two contractors' studies have highlighted the weaknesses in Customs' modernization plans and recommended ways to improve its efforts; (8) Customs plans to hire additional contractors to perform the needed modernization analyses, but it also intends to continue with system development and equipment purchases before these analyses are completed; and (9) Customs has not established clear accountability for ensuring that NCAP requirements are successfully implemented.