[Congressional Record Volume 142, Number 120 (Thursday, September 5, 1996)]
[Senate]
[Page S9960]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     THE YEAR 2000 COMPUTER PROBLEM

  Mr. MOYNIHAN. Mr. President, on the 31st of July, I took the liberty 
of writing to the President concerning a problem that could have 
extreme negative economic consequences in the year 2000 when we will 
have to make the transition of computers from the 20th to the 21st 
century.
  This is a matter that will necessarily concern the Congress. I ask 
unanimous consent that my letter to the President and a summary of an 
accompanying report by Richard M. Nunno be printed in the Record at 
this point. Cost considerations prevent having the entire report 
printed in the Record. The report can be obtained from the 
Congressional Research Service.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:


                                                  U.S. Senate,

                                  Washington, D.C., July 31, 1996.
     The President,
     The White House,
     Washington, DC.
       Dear Mr. President: I hope this letter reaches you.
       I write to alert you to a problem which could have extreme 
     negative economic consequences during your second term. The 
     ``Year 2000 Time Bomb.'' This has to do with the transition 
     of computer programs from the 20th to the 21st century.
       The main computer languages from the '50s and '60s such as 
     COBOL, Fortran, and Assembler were designed to minimize 
     consumption of computer memory by employing date fields 
     providing for only six digits. The date of this letter in 
     ``computerese,'' for example, is 96-07-31. The century 
     designation ``19'' is assumed.
       The problem is that many computer programs will read 
     January 1, 2000 as January 1, 1900. Computer programs will 
     not recognize the 21st century without a massive rewriting of 
     computer codes.
       I first learned of all this in February and requested a 
     study by the Congressional Research Service. The study, just 
     now completed, substantiates the worst fears of the 
     doomsayers. (A copy of the CRS study is attached.) The Year 
     2000 problem (``Y2K'') is worldwide. Each line of computer 
     code needs to be analyzed and either passed on or be 
     rewritten. The banking system is particularly vulnerable. A 
     money center bank may have 500 million lines of code to be 
     revised at a cost of $1 per line. That's a $500 million 
     problem. (I learn from Lanny Davis that his client, the Mars 
     Company, estimates the cost of becoming Y2K date compliant at 
     $100 million to $200 million. Mars is only a candy company.) 
     One would expect that a quick fix of the problem would have 
     been found but it hasn't happened and the experts tell me it 
     is not likely.
       There are three issues. First, the cost of reviewing and 
     rewriting codes for Federal and state governments which will 
     range in the billions of dollars over the next three years. 
     Second, the question of whether there is time enough to get 
     the job done and, if not, what sort of triage we may need. I 
     am particularly concerned about the IRS and Social Security 
     in this respect. Third, the question of what happens to the 
     economy if the problem is not resolved by mid-1999? Are 
     corporations and consumers not likely to withhold spending 
     decisions and possibly even withdraw funds from banks if they 
     fear the economy is facing chaos?
       I have a recommendation. A Presidential aide should be 
     appointed to take responsibility for assuring that all 
     Federal agencies including the military be Y2K date compliant 
     by January 1, 1999 and that all commercial and industrial 
     firms doing business with the Federal government also be 
     compliant by that date. I am advised that the Pentagon is 
     further ahead on the curve here than any of the Federal 
     agencies. You may wish to turn to the military to take 
     command of dealing with the problem.
       The computer has been a blessing; if we don't act quickly, 
     however, it could become the curse of the age.
           Respectfully,
     Daniel Patrick Moynihan.
                                                                    ____


                    The Year 2000 Computer Challenge

                         (By Richard M. Nunno)


                                summary

       Most computer systems in use today can only record dates in 
     a two-digit format for the year. Under this system, computers 
     will fail to operate properly when years after 1999 are used, 
     because the year 2000 is indistinguishable from 1900. This 
     problem could have a serious impact on a wide range of 
     activities that use computers. Information systems must be 
     inspected, and modified, if necessary, before January 1, 2000 
     to avoid major system malfunctions.
       Many managers initially doubted the seriousness of this 
     problem, assuming that an easy technical fix would be 
     developed. Several independent research firms, however, have 
     refuted this view, with the conclusion that inspecting all 
     computer systems and converting date fields where necessary 
     and then testing modified software will be a very time-
     consuming and costly task. Research firms predict that due to 
     a lack of time and resources, the majority of U.S. businesses 
     and government agencies will likely not fix all of their 
     computer systems by the start of the new millennium.
       Most agencies and businesses have come to understand the 
     difficulties involved, although some have not yet started 
     implementing changes. Several companies have emerged offering 
     services to work on the year-2000 conversion, and software 
     analysis products are commercially available to assist with 
     finding and converting flawed software code. Even with the 
     assistance of these products, however, most of the work will 
     still have to be done by humans.
       Federal agencies are generally aware of the year-2000 
     challenge and most are working to correct it. Agencies that 
     manage vast databases, conduct massive monetary transactions, 
     or interact extensively with other computer systems, face the 
     greatest challenge. An interagency committee has been 
     established to raise awareness of the year-2000 challenge and 
     facilitate federal efforts at solving it. The interagency 
     committee has initiated several actions, such as requiring 
     vendor software listed in future federal procurement 
     schedules to be year-2000 compliant and specifying four-digit 
     year fields for federal computers. The shortage of time to 
     complete year-2000 computer changes may force agencies to 
     prioritize their systems. Agencies may also need to shift 
     resources from other projects to work on year-2000 efforts. 
     State and local governments, as well as foreign 
     organizations, will also have significant year-2000 
     conversion problems.
       Congressional hearings have been held recently to 
     investigate the year-2000 challenge, and a legislative 
     provision was introduced directing the Defense Department to 
     assess the risk to its systems resulting from it. Several 
     options exist for congressional consideration. One option is 
     to provide special funding to federal agencies for year-2000 
     conversion. While agencies are reluctant to request 
     additional funds, some observers contend this may be 
     necessary. Another option is to give agencies increased 
     autonomy in reprogramming appropriated funds for year-2000 
     efforts. A third, less controversial alternative is to 
     continue to raise public awareness through hearings and by 
     overseeing federal efforts.

                          ____________________