Land Management Systems: Status of BLM's Actions to Improve Information
Technology Management (Letter Report, 02/24/2000, GAO/AIMD-00-67).

Pursuant to a congressional request, GAO followed up on the Bureau of
Land Management's (BLM) efforts to implement GAO's recommendations for
improving the development of its Automated Land and Minerals Record
System (ALMRS),focusing on whether BLM has: (1) adequately assessed the
usability of the ALMRS Initial Operating Capability (IOC) and
alternatives to meet its business needs; (2) adequately assessed and
strengthened its investment management processes and practices; (3)
obtained an independent assessment of its systems acquisition
capabilities and strengthened its systems acquisition processes; and (4)
made or is making sizable investments prior to strengthening its
investment management and systems acquisition processes.

GAO noted that: (1) BLM has begun to address GAO's recommendations to
analyze the usefulness of ALMRS IOC and to assess and strengthen its
investment management and systems acquisition capabilities; (2) BLM
prepared a preliminary report of its technical and functional analysis
of ALMRS IOC and concluded that the system was not operationally ready
for deployment because it did not meet the bureau's business needs; (3)
according to BLM, ALMRS IOC usability problems could not be repaired
without a major technical effort and significant costs; (4) BLM has not
yet developed a plan, schedule, or milestones for completing the
analysis of ALMRS IOC and other alternatives; (5) BLM has now assessed
its information resources management (IRM) methodologies, policies and
strategies, and organizational structures; (6) the assessment contractor
identified numerous problems and deficiencies and made over 90
recommendations to improve BLM's investment management and IRM
functions; (7) BLM is beginning to address the recommendations and
strengthen its investment management practices; (8) BLM has also
obtained an independent assessment of its systems acquisition
capabilities; (9) the assessment contractor found that BLM's acquisition
processes are immature, the characteristics of which include the lack of
a stable software development and maintenance environment and
abandonment of planned procedures when executing projects; (10) the
assessment contractor found that BLM's acquisition capabilities were
immature; (11) BLM has drafted revised systems acquisition procedures
and plans to implement a formal systems acquisition policy after it
completes a bureauwide architecture; (12) BLM's chief information
officer stated that the bureau is not planning any major systems
acquisition or development efforts until after its architecture is
completed and its business needs have been documented; (13) BLM is in
the early stages of addressing GAO's recommendations to strengthen its
investment management and systems acquisition capabilities; and (14) as
a result, it is too early to tell whether BLM's efforts will be fully
responsive to GAO's recommendations or help reduce its future
information technology risks.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-00-67
     TITLE:  Land Management Systems: Status of BLM's Actions to
	     Improve Information Technology Management
      DATE:  02/24/2000
   SUBJECT:  Land management
	     Management information systems
	     Systems conversions
	     Systems design
	     Information resources management
	     Computer software verification and validation
	     Strategic information systems planning
	     Computer software
	     ADP procurement
IDENTIFIER:  BLM Automated Land and Minerals Record System
	     BLM National Integrated Land System

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Report to the Subcommittee on Interior and Related Agencies, Committee on
Appropriations, House of Representatives

February 2000

LAND MANAGEMENT SYSTEMS

Status of BLM's Actions to Improve Information Technology
Management
*****************

*****************

GAO/AIMD-00-67

Letter                                                                     3

Appendixes

Appendix I:  Objectives, Scope, and Methodology

                                                                         16

Appendix II:  Comments From the Department of the Interior

                                                                         18

Appendix III:  GAO Contact and Staff Acknowledgements

                                                                         21

ALMRS   Automated Land and Mineral Record System

BLM     Bureau of Land Management

CIO     chief information officer

CMM     Capability Maturity Model

IOC     Initial Operating Capability

IRM     information resources management

NILS    National Integrated Land System

OMB     Office of Management and Budget

SEI     Software Engineering Institute

Land Management Systems: Progress and Risks in Developing BLM's Land and
Mineral Record System (GAO/AIMD-95-180, August 31, 1995), Land Management
Systems: BLM Faces Risks in Completing the Automated Land and Mineral
Record System 
(GAO/AIMD-97-42, March 19, 1997), Land Management Systems: Information on
BLM's Automated Land and Mineral Record System Release 2 Project (GAO/AIMD-
97-109R, June 6, 1997), Land Management Systems: Actions Needed in
Completing the Automated Land and Mineral Record System Development
(GAO/AIMD-98-107, May 15, 1998), and Land Management Systems: Major
Software Development Does Not Meet BLM's Business Needs 
Assessing Risks and Returns: A Guide for Evaluating Federal Agencies' IT
Investment Decision-making (GAO/AIMD-10.1.13, February 1997), and
Evaluating Information Technology Investments: A Practical Guide, Office
of Information and Regulatory Affairs, Information Policy and Technology
Branch, Office of Management and Budget 
                                                 Accounting and Information
                                                        Management Division

B-284472

February 24, 2000

The Honorable Ralph Regula
Chairman
The Honorable Norman D. Dicks
Ranking Minority Member
Subcommittee on Interior
  and Related Agencies
Committee on Appropriations
House of Representatives

On March 4, 1999, we testified before you on the Bureau of Land
Management's (BLM) efforts to develop and deploy the Automated Land and
Mineral Record System (ALMRS)/Modernization./Footnote1/ The
ALMRS/Modernization project was intended to improve BLM's ability to
record, maintain, and retrieve land description, ownership, and use
information. In our testimony statement we reported that the major
software component of the ALMRS/Modernization-known as the ALMRS Initial
Operating Capability (IOC)-failed to meet BLM's business needs and was not
deployable. We cited numerous problems and risks that had threatened the
successful development and deployment of the ALMRS/Modernization and
recommended actions to help BLM strengthen its information technology
management practices and reduce the risks that future information
technology efforts would fail.

At your request, we reviewed BLM's actions to implement those
recommendations. Our objectives were to determine whether BLM has 
(1) adequately assessed the usability of the ALMRS IOC and alternatives to
meet its business needs, (2) adequately assessed and strengthened its
investment management processes and practices, (3) obtained an independent
assessment of its systems acquisition capabilities and strengthened its
systems acquisition processes, and (4) made or is making sizable
investments prior to strengthening its investment management and systems
acquisition processes. Our objectives, scope, and methodology are
presented in appendix I. We performed our work from July 1999 through
January 2000 in accordance with generally accepted government auditing
standards. The Department of the Interior provided written comments which
are discussed in the "Agency Comments" section of this report and are
reprinted in appendix II.

Results in Brief

The bureau has begun to address our recommendations to analyze the
usefulness of ALMRS IOC and to assess and strengthen its investment
management and systems acquisition capabilities. BLM prepared a
preliminary report of its technical and functional analysis of ALMRS IOC
and concluded that the system was not operationally ready for deployment
because it did not meet the bureau's business needs. According to BLM,
ALMRS IOC usability problems could not be repaired without a major
technical effort and significant costs. BLM plans to complete the analysis
of ALMRS IOC and other alternatives once it has established a bureauwide
architecture and documented its business needs. At that time, BLM plans to
determine whether any of the ALMRS IOC software could be cost beneficially
used or modified to meet those needs. However, BLM has not yet developed a
plan, schedule, or milestones for completing the analysis of ALMRS IOC and
other alternatives.

BLM has now assessed its current information resources management (IRM)
methodologies, policies and strategies, and organizational structures. The
assessment contractor identified numerous problems and deficiencies and
made over 90 recommendations to improve BLM's investment management and
IRM functions. The bureau is beginning to address the recommendations and
strengthen its investment management practices. For example, it is working
to finalize and implement a capital asset plan, update its strategic IRM
plan, and has revised its Information Technology Investment Board charter
to improve the selection, control, and evaluation of information
technology investments. BLM has also begun to assess and restructure its
IRM staffing and organization and is developing a bureauwide architecture
that is to identify and document BLM's business processes and associated
information needs. The bureau expects a significant portion of the
architecture to be completed by 
March 31, 2000.

BLM has also obtained an independent assessment of its systems acquisition
capabilities. The assessment contractor found that BLM's acquisition
processes are immature, the characteristics of which include the lack of a
stable software development and maintenance environment and abandonment of
planned procedures when executing projects. BLM has drafted revised
systems acquisition procedures and plans to implement a formal systems
acquisition policy after it completes a bureauwide architecture.

BLM's chief information officer (CIO) stated that the bureau is not
planning any major systems acquisition or development efforts until after
its architecture is completed and its business needs have been documented.
At the same time, BLM is continuing its planning efforts for a major
geographic information system for managing land record data.

BLM is in the early stages of addressing our recommendations to strengthen
its investment management and systems acquisition capabilities. As a
result, it is too early to tell whether BLM's efforts will be fully
responsive to our recommendations or help reduce its future information
technology risks. In addition, BLM's improvement actions are currently
being carried out as separate projects and have not yet been integrated to
form a comprehensive investment management program. Also, BLM has not yet
finalized an overall project plan, schedule, and milestones for completing
its actions to address our recommendations. However, during discussions at
the conclusion of our review, BLM's CIO told us that, based on our work,
the bureau has begun to address these issues. Accordingly, we are
recommending that the Secretary of the Interior direct BLM to (1) complete
the integration of the projects to strengthen its investment management
and systems acquisition processes and practices and (2) complete an
overall project plan, schedule, and milestones for its investment
management and systems acquisition improvement projects. In its comments
on a draft of this report, the Department of the Interior agreed with our
recommendations and stated that BLM has begun corrective actions.

Background

BLM's mission is to sustain the health, diversity, and productivity of
public lands for the use and enjoyment of present and future generations.
The bureau manages approximately 264 million acres of public land in 28
states and public resources including rangelands, timber, minerals,
watersheds, wildlife habitats, wilderness and recreation areas, and
archeological and historical resources. It also manages the subsurface
mineral resources underlying another 300 million acres of land
administered by other government agencies or owned by private interests.
The bureau has 189 offices that manage over 1 billion paper documents,
including land surveys and surveyor notes, records of land ownership,
mining claims, and oil and gas leases. According to BLM, most of the paper
documents are deteriorating and are becoming increasingly difficult to read.

In the mid-1980s BLM began planning to acquire a land and mineral case
processing system to keep up with its increasing workload, and automate
its manual records and case processing activities. By 1993 BLM decided on
the scope and functionality of the project, called the
ALMRS/Modernization. The project consisted of three major components-the
ALMRS IOC, a geographic information system,/Footnote2/ and the
modernization of BLM's computer and telecommunications infrastructure and
rehost of selected management and administrative systems. The ALMRS IOC-
the flagship of the ALMRS/Modernization-was to provide the capability to
more efficiently record, maintain, and retrieve land description,
ownership, and use information to support BLM, other federal programs, and
interested parties.

Since 1995 we have conducted reviews and issued several reports on
problems and risks that threatened the successful development and
deployment of the ALMRS/Modernization./Footnote3/ In October 1998 an
operational assessment test and evaluation showed that the ALMRS IOC was
not ready to be deployed because it did not meet BLM's business needs. The
bureau subsequently stopped the ALMRS project. At the time the project was
terminated, BLM estimated that from 1983 through 1998 it had obligated
about $411 million for the ALMRS/Modernization project, of which more than
$67 million was spent to develop ALMRS IOC software.

Preliminary ALMRS IOC Analysis Completed, Final Analysis Expected After
March 2000
---------------------------------------------------------------------------

Because of the enormous investment made in the ALMRS IOC and the failure
of the software to meet BLM's needs, we recommended that the Secretary of
the Interior ensure that BLM thoroughly analyze the ALMRS IOC software to
determine whether it could be cost beneficially modified to meet the
bureau's needs. We pointed out that this analysis should be part of an
overall effort to identify and assess all alternatives, including 
(1) modifying ALMRS IOC software, (2) modifying existing land and
recordation systems, (3) acquiring commercial, off-the-shelf software, or
(4) developing new systems. We also stated that the alternatives analysis
should clearly identify the risks, costs, and benefits of each alternative
and should be performed after BLM is assured that it has verified its
current business requirements.

BLM prepared a preliminary report in June 1999 on its technical and
functional analysis of ALMRS IOC. BLM concluded that ALMRS IOC was not
operationally ready for deployment because it did not meet the bureau's
business needs. This conclusion was based on the determination that ALMRS
IOC (1) was difficult to use and labor-intensive, (2) was poorly
integrated into BLM's business processes, (3) was too slow, and (4) would
be difficult and costly to maintain and operate. The bureau stated that
although some of these problems could be solved, ALMRS IOC could not be
repaired without a major technical effort and significant costs.

BLM's CIO told us that the bureau plans to complete its analysis of ALMRS
IOC and other alternatives after it establishes a bureauwide architecture.
As noted by the CIO, establishing an architecture is a necessary precursor
to completing the analysis of ALMRS IOC and other alternatives because the
architecture will document the bureau's business processes and information
needs. BLM plans to have its business needs documented by the end of March
2000.

The CIO said that once BLM's business needs have been documented, the
bureau plans to complete its analysis of ALMRS IOC to determine whether
any of the software can be cost beneficially used or modified to meet
those needs. As part of its final analysis, BLM plans to determine whether
parts of ALMRS IOC could be useful for future information technology
efforts. For example, an earlier independent technical contractor's
analysis showed that some parts of ALMRS IOC could be useful.

BLM has not developed a plan, schedule, or milestones for completing the
analysis of ALMRS IOC and other alternatives. Developing such tools is
essential for BLM to effectively plan and manage this project and help
ensure that its efforts will result in a timely and sound analysis of
alternatives that will meet BLM's business needs.

Investment Management Processes and Practices Assessed, Corrective Action
Recently Begun 

The absence of adequate investment management processes and practices at
BLM was a significant factor contributing to the failure of ALMRS IOC. To
reduce the risk that future information technology efforts will fail and
to help establish disciplined investment management as required by the
Clinger-Cohen Act of 1996,/Footnote4/ we recommended that the Secretary of
the Interior ensure that BLM assess and strengthen its investment
management practices to help avoid future problems, assess staff skills to
meet agency IRM requirements, and develop an information technology
architecture./Footnote5/

BLM retained a contractor to assess its current IRM program-methodologies,
policies, strategies, and organizational structure-including the
management of information technology investments. The assessment
contractor reported in October 1999 on problems and deficiencies in 
27 areas including BLM's investment planning, project selection, and
review processes and organizational effectiveness. The contractor made
over 90 recommendations to BLM to improve investment management and IRM
functions, including finalizing and implementing its capital asset plan,
updating its strategic IRM plan, and implementing procedures to establish
consistent processes to select and manage information technology
investment projects.

BLM has begun to strengthen its investment management processes and
practices by addressing the assessment contractor's recommendations and
provisions of the Clinger-Cohen Act of 1996. For example, BLM's CIO and
chief financial officer have approved the bureau's October 25, 1999,
information technology capital asset plan which outlines capital planning
procedures for major information technology acquisitions. The plan
specifies the relationship between BLM's information technology assets and
the program performance goals identified in its strategic business plan.
According to BLM, the capital asset plan is expected to help ensure that
BLM's information technology assets are adequately managed and associated
risks are identified and controlled.

BLM is also revising its strategic IRM plan and expects to complete these
revisions by March 30, 2000. According to BLM's IRM Policy Group Manager,
the bureau is planning to add a section on organizational effectiveness to
its IRM plan to closely link it to BLM's strategic business plan.

GAO and Office of Management and Budget (OMB) guidance offer agencies an
integrated approach to managing information technology investments that
provides for the continuous identification, selection, control,
management, and evaluation of information technology investments, as
mandated by the Congress./Footnote6/ BLM is beginning to establish
processes, policies, and procedures to more effectively select, control,
and evaluate its information systems and technology projects. For example,
on January 20, 2000, the bureau formalized the charter for its Information
Technology Investment Board to expand the board's roles and
responsibilities and help improve the selection, control, and evaluation
of information technology investments. The new charter specifies that the
board is responsible for decisions regarding the initiation, development,
implementation, and evaluation of major information technology
investments. The charter also outlines the functions of the board,
including (1) developing an information technology architecture, (2)
selecting information technology investments, (3) controlling and managing
information technology activities, and 
(4) evaluating information technology investments.

BLM is also assessing its current information technology staffing and
future skills needs. The assessment covers BLM's entire IRM organization
and uses human resources teams to interview staff, perform skills and
process assessments, and document position descriptions. BLM's CIO told us
that the assessment teams plan to make recommendations in January 2000 to
enhance and restructure the national information technology office.
Recommendations to enhance or restructure the field information technology
offices are expected after the assessments of those offices are completed.

Finally, BLM, with the assistance of an independent contractor, is
developing the planned bureauwide architecture. In November 1999 BLM
decided to merge and manage its existing architecture projects into one
bureauwide architecture effort. On December 17, 1999, BLM approved a
single architecture team charter which outlines the purpose, methodology,
organization, and project plan for the bureauwide architecture effort.
According to BLM, the bureauwide architecture will be comprised of two sub-
architectures-the business architecture and the information technology
architecture. Development of the bureauwide architecture is being driven
by the bureau's business goals and processes and is a joint project with
both program and technical staff that is expected to address every type of
work BLM performs. BLM also expects that the architecture will support
business process reengineering prior to automation efforts. By March 31,
2000, BLM expects to complete (1) documentation of the business
architecture and BLM's business processes, (2) a framework for its future
architecture, and (3) a set of architectural criteria for evaluating new
information technology project and investment proposals.

BLM's investment management improvement actions are being carried out as
separate projects and are not yet integrated to help ensure that they will
result in an effective, data-driven investment management process to
support BLM's needs. Also, BLM has not yet finalized a plan, schedule, and
milestones for completing its work to improve its investment management
processes and practices. Such tools are essential to help ensure that
these projects are adequately planned and managed and result in an
effective investment management program at BLM. However, based on
discussions at the conclusion of our review, BLM's CIO told us that the
bureau is now planning to hire a contractor to assist in integrating its
investment management projects. BLM has not yet determined when the
contractor will begin work. Also, based on our discussions, BLM is now
beginning to develop an overall plan, schedule, and milestones for
completing its investment management improvement work. 

Systems Acquisition Capabilities Assessed, Corrective Action Recently Begun

As stated in our March 4, 1999, testimony, BLM did not develop several key
management controls for the ALMRS IOC project, including a credible
project schedule and adequate transition plans. In addition, the lack of a
configuration management program, security plan and architecture, and
operations and maintenance plans further increased BLM's risks. To reduce
the risk that future information technology efforts would fail, we
recommended that the Secretary of the Interior ensure that BLM obtain an
independent assessment of its systems acquisition capabilities, and ensure
that it uses sound systems acquisition processes.

BLM subsequently obtained a high-level independent assessment of its
systems acquisition capabilities that was based on the Software
Engineering Institute's (SEI) Software and Software Acquisition Capability
Maturity Models (CMM)SM./Footnote7/ BLM's software acquisition processes
were found to be immature-level 1. According to SEI, characteristics of a
level 1 organization include the (1) lack of a stable environment for
developing and maintaining software, (2) over-commitment of staff and
resources, and (3) abandonment of planned procedures when executing
projects. Research by SEI has shown that defined and repeatable processes
for managing software acquisitions are critical to an organization's
ability to consistently deliver high-quality information systems on time
and within budget. The critical management process areas, designated by
SEI as necessary to reach CMM level 2/Footnote8/ include (1) software
acquisition planning, (2) requirements development and management, (3)
project management, (4) contract tracking and oversight, (5) evaluation,
and (6) transition to support.

According to BLM's CIO, the bureau is now beginning to strengthen its
systems acquisition processes and practices and is planning to make the
improvements needed to move from a level 1 to a level 2 organization
within the next 12 to 18 months. BLM has also drafted an interim
acquisition policy to guide the acquisition of information technology. It
plans to complete and implement formal acquisition policies and processes
once the bureauwide architecture is established.

BLM's systems acquisition improvement efforts have not yet been integrated
with its investment management efforts to ensure that they are brought
together as part of a comprehensive IRM program that supports the business
and information technology needs of the bureau. Also, BLM has not yet
developed an overall plan, schedule, or milestones for completing the
actions to improve its systems acquisition capabilities. Such tools are
essential for BLM to adequately plan and manage these efforts in a timely
manner to help ensure that any future systems acquisition efforts will
result in systems that meet BLM's needs. Based on discussions at the
conclusion of our review, BLM's Deputy CIO told us that the bureau is
planning to integrate these efforts, but had not yet established a time
frame for completing the integration. BLM's CIO added that, based on our
work, the bureau has begun to develop an overall plan, schedule, and
milestones to address this and our other recommendations. 

BLM Has Temporarily Suspended Sizable Information Technology Investments

Because of the information technology investment management and systems
acquisition problems identified during the ALMRS/Modernization, we
recommended that BLM not undertake any sizable systems acquisition or
development efforts until the assessments we recommended were completed
and corrective actions taken.

BLM has temporarily suspended all major systems acquisition and
development projects, according to the bureau's CIO. Based on our review
of acquisition and contract documentation provided by BLM, the bureau is
continuing work on several ongoing systems maintenance projects, as well
as planning for a major system called the National Integrated Land System
(NILS). NILS is being planned as a joint project with the United States
Forest Service to develop a common data model and tools in a geographic
information system environment for managing cadastral and land record
data. BLM's CIO said that although planning continues, the bureau does not
plan to begin development of NILS until after the bureauwide architecture
is complete and its business needs have been documented.

Conclusions 

BLM is acting to address our recommendation to thoroughly analyze ALMRS
IOC and identify and assess all alternatives. Because its work is still
underway, we cannot yet determine whether these actions will be fully
responsive to our recommendations or result in an adequate assessment of
ALMRS IOC and other alternatives to meet BLM's business needs. We believe
it is prudent for BLM to reach final conclusions about the usefulness of
ALMRS IOC after its architecture is substantially completed and its
business needs are known.

BLM is also addressing our recommendations to assess and strengthen its
investment management processes and practices and to use sound systems
acquisition practices. These corrective actions, still in the early
stages, are important to help BLM avoid future problems and failures
similar to ALMRS IOC. Consequently, we cannot yet determine whether these
actions will be fully responsive to our recommendations or result in an
effective investment management program or sound systems acquisition
capabilities at BLM.

Also, BLM's investment management and systems acquisition efforts have
thus far not been integrated. As a result of our work, the CIO stated that
the bureau is now planning to integrate these efforts. Until the
integration is completed, BLM cannot assure that its efforts will form a
comprehensive IRM program that can help support the continuous
identification, selection, control, life-cycle management, and evaluation
of information technology investments.

BLM has also not completed a project plan, schedule, and milestones for
completing its actions to address our recommendations. BLM's CIO told us
that, as a result of our work, the bureau has begun to develop an overall
plan, schedule, and milestones for completing these actions. Until that
plan is completed, BLM cannot document the expected results of its overall
effort or provide accurate estimates for when its actions will be
completed. Finally, the CIO's efforts to establish integrated investment
management and systems acquisition processes and practices are important
and challenging and will require the full support of BLM's senior
management team.

Recommendations

We recommend that the Secretary of the Interior direct BLM to take the
following actions to help it strengthen its investment management and
systems acquisition processes:

o Develop a comprehensive and integrated information technology
  investment management program as defined by the Clinger-Cohen Act by
  completing the integration of BLM's projects to strengthen its
  investment management and systems acquisition processes and practices.

o Complete the development of an overall project plan, schedule, and
  milestones for actions to strengthen its investment management
  processes and practices and systems acquisition capabilities.

Agency Comments

The Acting Assistant Secretary for Land and Minerals Management stated
that the Department of the Interior concurs with our recommendations and
has been taking action to implement them. These actions include the
bureau's efforts to (1) strengthen its software acquisition capabilities, 
(2) review, focus, and restructure the IRM organization, (3) restructure
the Information Technology Investment Board and strengthen the investment
management process, (4) establish a program management office to provide
disciplined information technology project screening and support project
development, and (5) deploy a system to improve service delivery and
strengthen the management of the information technology infrastructure.
Most of these actions are discussed earlier in this report and represent
important efforts to help BLM strengthen its information technology program.

We are sending copies of this report to Senator Slade Gorton, Chairman,
and Senator Robert C. Byrd, Ranking Minority Member, Subcommittee on
Interior, Senate Committee on Appropriations. We are also sending copies
of this report to The Honorable Jacob J. Lew, Director, Office of
Management and Budget; The Honorable Bruce Babbitt, Secretary of the
Interior; and Mr. Tom Fry, Acting Director, Bureau of Land Management.
Copies will also be made available to others upon request.

Should you or your staff have any questions concerning this report, please
contact me at (202) 512-6253. I can also be reached by e-mail at
[email protected]. Major contributors to this report are listed in
appendix III.

*****************

*****************

Joel C. Willemssen
Director, Civil Agencies Information Systems

--------------------------------------
/Footnote1/-^Land Management Systems: Major Software Development Does Not
  Meet BLM's Business Needs (GAO/T-AIMD-99-102, March 4, 1999).
/Footnote2/-^A geographic information system is computer technology
  designed to assemble, store, manipulate, and display geographically
  referenced data, such as the location of a lake or oil well.
/Footnote3/-^(GAO/AIMD-99-135, April 30, 1999).
/Footnote4/-^The Clinger-Cohen Act of 1996 seeks to maximize the return on
  investments in information systems by requiring agencies to institute
  sound capital investment decision-making. Under the act, agencies must
  design and implement a process for maximizing the value and assessing
  and managing the risks of information technology acquisitions.
/Footnote5/-^An information technology architecture provides a
  comprehensive blueprint that systematically details the breadth and
  depth of an organization's mission-based mode of operation. An
  architecture provides details first in logical terms, such as defining
  business functions, providing high-level descriptions of information
  systems and their interrelationships, and specifying information flows;
  and second in technical terms such as specifying hardware, software,
  data, communications, security, and performance characteristics.
/Footnote6/-^(November 1, 1995).
/Footnote7/-^Capability Maturity ModelSM is the service trademark of
  Carnegie Mellon University, and CMM(r) is registered with the U.S.
  Patent and Trademark Office.
/Footnote8/-^Level 2 organizations are defined as having basic project
  management processes to track cost, schedule, and functionality, with
  the necessary process discipline in place to repeat earlier successes on
  projects with similar applications.

OBJECTIVES, SCOPE, AND METHODOLOGY
==================================

As requested by the Subcommittee on Interior and Related Agencies,
Committee on Appropriations, House of Representatives, our objectives were
to determine whether BLM has (1) adequately assessed the usability of the
ALMRS IOC and alternatives to meet business needs, (2) adequately assessed
and strengthened its investment management processes and practices, (3)
obtained an independent assessment of its systems acquisition capabilities
and strengthened its systems acquisition processes, and (4) made or is
making sizable investments prior to strengthening its investment
management and systems acquisition processes.

To meet our first objective, we analyzed BLM's technical and functional
analysis of ALMRS IOC as well as the supporting documentation and reports.
We also interviewed bureau officials to determine BLM's plans to conduct
further analyses. 

To meet our second objective, we reviewed the independent analysis of
BLM's IRM practices and interviewed assessment contractor officials. We
also interviewed contractor officials responsible for developing BLM's
bureauwide architecture and reviewed documentation of ongoing work. We
reviewed documentation and analyses of BLM's information technology
management processes, practices, and improvement efforts and compared this
information with OMB and our investment management guidance and with
requirements in the Clinger-Cohen Act of 1996. We interviewed BLM
officials to identify the bureau's planned and ongoing actions to
strengthen its investment management processes and practices.

To meet our third objective, we reviewed the independent assessment of
BLM's systems acquisition capabilities and practices and compared it to
criteria developed by SEI. We interviewed the assessment contractor to
identify and discuss the assessment methodology used and interviewed
bureau officials to determine what actions BLM plans to take to strengthen
its systems acquisition processes.

To address our final objective, we interviewed bureau officials and
reviewed documentation of BLM's information technology contracts provided
by BLM to determine whether BLM has made sizable systems investments prior
to strengthening its information technology investment management and
acquisition processes and practices.

We performed our work at BLM and Department of the Interior headquarters
in Washington, D.C., and BLM's National Information Resources Management
Center headquarters in Denver, Colorado. We requested and received
comments on a draft of our report from the Department of the Interior and
incorporated those comments as appropriate. We performed our work from
July 1999 through January 2000 in accordance with generally accepted
government auditing standards.

COMMENTS FROM THE DEPARTMENT OF THE INTERIOR
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GAO CONTACT AND STAFF ACKNOWLEDGEMENTS
======================================

GAO Contact

David G. Gill (202) 512-6250

Acknowledgements

In addition to the individual named above, Mirko J. Dolak, Phoebe Furey,
Elizabeth A. Roach, and E. Randolph Tekeley made key contributions to this
report.

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