Land Management Systems: BLM Faces Risks in Completing the Automated Land
and Mineral Record System (Letter Report, 03/19/97, GAO/AIMD-97-42).

Pursuant to a congressional request, GAO reviewed the Bureau of Land
Management's (BLM) efforts to complete the development of the Automated
Land and Mineral Record System/Modernization (ALMRS/Modernization),
focusing on: (1) whether risks remain that could seriously affect the
performance, capability, or cost of ALMRS; (2) whether BLM is
operationally and managerially ready to deploy ALMRS in fiscal year (FY)
1997; (3) the latest cost estimates for ALMRS and reasons for any cost
increases; (4) what Interior is doing to promote the use of ALMRS by its
other bureaus; (5) whether other Interior bureaus are planning to use
ALMRS for their land management needs.

GAO noted that: (1) BLM has recently encountered problems with the
ALMRS/Modernization development that increase the risk of degraded
performance and capability, and these problems have already resulted in
higher costs; (2) during expanded testing of the ALMRS/Modernization,
BLM discovered that the system performed some functions more slowly than
expected and did not process all transactions correctly during tests
using an operationally-sized database; (3) BLM also recently suspended
the development of an important reporting capability and substituted
some standard reports which cost less and take less time to finish; (4)
BLM and the prime contractor have progressed in correcting these
problems; (5) although BLM is preparing to begin deploying ALMRS in FY
1997 after development and testing are complete, it will not be ready to
deploy ALMRS until it has completed essential management plans,
policies, or procedures to help ensure a successful transition and
operating environment; (6) still lacking are a configuration management
plan and a system security plan and security architecture; (7) also,
transition and operations and maintenance plans are incomplete; (8)
these tools are essential to help ensure system availability and
performance and to avoid security and operational problems; (9) the
modernization is now expected to cost about $537 million through FY 2002
or about 33 percent above the +$403 million estimate provided to the
Office of Management and Budget in 1993; (10) according to BLM's
Assistant Director for Information Resources Management, some project
costs were underestimated and some were not included in the original
estimate; (11) project delays have also added to the increase; (12) the
Assistant Director also stated that the estimate could change as BLM
refines its life-cycle cost model; (13) Interior established a working
group of representatives from each of its bureaus to study the
feasibility of using ALMRS to support each bureau's requirements; (14)
the preliminary study indicates that, with modification, ALMRS can be
used to support the needs of all bureaus; (15) the department has stated
that it intends to use ALMRS to support the land title and record
management responsibilities of all bureaus but is waiting for the
successful completion of ALMRS and the results of the final study before
issuing procedures on the use of ALMRS; and (16) in the interim, the Bu*

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

 REPORTNUM:  AIMD-97-42
     TITLE:  Land Management Systems: BLM Faces Risks in Completing the 
             Automated Land and Mineral Record System
      DATE:  03/19/97
   SUBJECT:  Systems conversions
             Systems design
             Systems evaluation
             Testing
             Computer software verification and validation
             Life cycle costs
             Systems development life cycle
             Requirements definition
             Strategic information systems planning
             Computer security
IDENTIFIER:  BLM Automated Land and Minerals Record System
             New Mexico
             
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Cover
================================================================ COVER


Report to the Chairman and Ranking Minority Member, Subcommittee on
Interior and Related Agencies, Committee on Appropriations,
House of Representatives

March 1997

LAND MANAGEMENT SYSTEMS - BLM
FACES RISKS IN COMPLETING THE
AUTOMATED LAND AND MINERAL RECORD
SYSTEM

GAO/AIMD-97-42

BLM's Land and Mineral Record System

(511412)


Abbreviations
=============================================================== ABBREV

  ALMRS - Automated Land and Mineral Records System
  BIA - Bureau of Indian Affairs
  BLM - Bureau of Land Management
  COBOL - Common Business Oriented Language
  GCDB - geographic coordinate data base
  GIS - geographic information system
  IOC - initial operating capability
  INFOMIX -
  IRM - information resources management
  OMB - Office of Management and Budget
  UNIX -

Letter
=============================================================== LETTER


B-271929

March 19, 1997

The Honorable Ralph Regula
Chairman
The Honorable Sidney R.  Yates
Ranking Minority Member
Subcommittee on Interior
 and Related Agencies
Committee on Appropriations
House of Representatives

This report presents the results of our review of the Bureau of Land
Management's (BLM) efforts to complete the development of the
Automated Land and Mineral Record System/Modernization
(ALMRS/Modernization).  This project is intended to improve BLM's
ability to record, maintain, and retrieve land description,
ownership, and use information, and is the largest system development
project ever undertaken by BLM or the Department of the Interior, of
which BLM is a part.  Currently, BLM and the prime contractor are
approaching the final stages of software development and the
beginning stages of operational testing. 

In August 1995 we reported to you on BLM's progress and the potential
problems in developing and implementing the ALMRS/Modernization.\1 At
that time, we discussed the complexity of the effort and the
likelihood that the project schedule could be delayed because BLM had
planned insufficient time to accomplish certain steps and deal with
unanticipated problems. 

As a follow-up to that assignment, you asked that we ascertain (1) if
risks remain that could seriously affect the performance, capability,
or cost of ALMRS, (2) if BLM is operationally and managerially ready
to deploy ALMRS in fiscal year 1997, (3) the latest cost estimates
for ALMRS and reasons for any cost increases, (4) what Interior is
doing to promote the use of ALMRS by its other bureaus, and (5) if
other Interior bureaus are planning to use ALMRS for their land
management needs.  Details of our objectives, scope, and methodology
are provided in appendix I. 


--------------------
\1 Land Management Systems:  Progress and Risks in Developing BLM's
Land and Mineral Record System (GAO/AIMD-95-180, Aug.  31, 1995). 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

BLM has recently encountered problems with the ALMRS/Modernization
development that increase the risk of degraded performance and
capability, and these problems have already resulted in higher costs. 
During expanded testing of the ALMRS/Modernization, BLM discovered
that the system performed some functions more slowly than expected
and did not process all transactions correctly during tests using an
operationally-sized database.  BLM also recently suspended the
development of an important reporting capability and substituted some
standard reports which cost less and take less time to finish.  BLM
and the prime contractor have progressed in correcting these
problems.  Their correction efforts are continuing. 

Although BLM is preparing to begin deploying ALMRS in fiscal year
1997 after development and testing are complete, it will not be ready
to deploy ALMRS until it has completed essential management plans,
policies, or procedures to help ensure a successful transition and
operating environment.  Still lacking are a configuration management
plan and a system security plan and security architecture.  Also,
transition and operations and maintenance plans are incomplete. 
These tools are essential to help ensure system availability and
performance and to avoid security and operational problems. 

The modernization is now expected to cost about $537 million through
fiscal year 2002 or about 33 percent above the $403 million estimate
provided to the Office of Management and Budget in 1993.  According
to BLM's Assistant Director for Information Resources Management
(IRM), some project costs were underestimated and some were not
included in the original estimate.  Project delays have also added to
the increase.  The Assistant Director also stated that the estimate
could change as BLM refines its life-cycle cost model. 

Interior established a working group of representatives from each of
its bureaus to study the feasibility of using ALMRS to support each
bureau's requirements.  The preliminary study indicates that, with
modification, ALMRS can be used to support the needs of all bureaus. 
The department has stated that it intends to use ALMRS to support the
land title and record management responsibilities of all bureaus but
is waiting for the successful completion of ALMRS and the results of
the final study before issuing procedures on the use of ALMRS.  In
the interim, the Bureau of Indian Affairs (BIA) has already declared
that it will use as much of ALMRS as it can to meet its needs. 


   BACKGROUND
------------------------------------------------------------ Letter :2

BLM's mission is to manage public lands and resources to best serve
the needs of the American people.  The Bureau manages approximately
264 million acres of public land in 28 states--about one-eighth of
the land in the United States.  It also manages the mineral estate
underlying another 300 million acres of lands administered by other
government agencies or owned by private interests.  Public resources
managed by BLM include rangelands, timber, minerals, watersheds,
wildlife habitats, wilderness and recreation areas, and
archaeological and historical resources.  The Bureau has 210 state,
district, and resource area offices that manage over 1 billion paper
documents, including land surveys and surveyor notes, tract books,
land patents, mining claims, oil and gas leases, and land and mineral
case files.  According to BLM, most of the paper documents are
deteriorating and are becoming increasingly difficult to read. 

During the early 1980s, BLM found that it could not handle the case
processing workload associated with a peak in the number of
applications for oil and gas leases.  It recognized that to keep up
with increased demand, it needed to automate its manual records and
case processing activities.  Thus, in the mid-1980s, the Bureau began
planning to acquire an automated land and mineral case processing
system.  The scope and functionality of the planned system changed
over the years, ranging from a system to automate paper documents and
records and case processing activities to a system that would provide
automated information systems and geographic information system
(GIS)\2 capabilities. 

In 1993, BLM decided on the scope and functionality of the
ALMRS/Modernization.  The bureau designated it a critical system for
(1) automating land and mineral records and case processing
activities and (2) providing information to support land and resource
management activities.  The ALMRS/Modernization is expected to
provide an efficient means of recording, maintaining, and retrieving
land description, ownership, and use information to support BLM,
other federal programs, and interested parties.  It does this by
establishing a common information technology platform,\3 increasing
public access to BLM records through the Internet, integrating
multiple databases into a single geographically referenced database,
shortening the time to complete case processing activities, and
replacing costly manual records with automated ones. 

The ALMRS/Modernization consists of the ALMRS initial operating
capability (IOC), geographic coordinate database (GCDB),\4 and
modernization of BLM's computer and telecommunications infrastructure
and rehosting of selected management and administrative systems.\5
These components are described more fully below. 

  -- The ALMRS IOC is the flagship of the ALMRS/Modernization.  With
     new software and upgraded hardware, it is to provide (1) support
     for case processing activities, including leasing oil and gas
     reserves, recording valid mining claims, processing mineral
     patents, and granting rights-of-way for roads and power
     corridors and (2) information for land and resource management
     activities, including timber sales and grazing leases. 

  -- GCDB is the database that will contain geographic coordinates
     and survey information for land parcels and provide the basic
     geographic data for a GIS.  Other databases, such as those
     containing land and mineral records, are to be integrated with
     GCDB.  ALMRS IOC will tie BLM's records and land and mineral
     resource data to the GCDB's legal descriptions of specific land
     parcels. 

  -- The information technology modernization and rehost component
     consists of installing computer and telecommunications equipment
     and office automation applications, and converting selected
     management and administrative systems to a relational database
     system to be used throughout the Bureau. 

Some elements of the ALMRS/Modernization, such as new computer and
telecommunications equipment, e-mail and office automation, were
installed at BLM offices from fiscal year 1994 through fiscal year
1996.  Eleven of the 12 administrative applications to be rehosted
are now operational.\6

Concerned that BLM might deploy the system prematurely, the House and
Senate appropriations committees directed BLM to test, verify, and
validate that ALMRS operates as specified and certify to them that it
performs accurately and effectively, and provides the expected
capabilities prior to deployment.  BLM retained a contractor to
conduct the independent verification and validation testing.  The
Bureau expects to base its certification to the committees on the
independent verification and validation testing and operational
testing and evaluation. 


--------------------
\2 Geographic information system technology is the computer hardware
and software that allow for the assembly, storage, manipulation, and
display of geographically referenced data, i.e., data that are
associated with specific places on earth, such as the geographic
location of a lake or oil well. 

\3 An automated information systems environment that consists of
interoperable hardware, systems software, and communications. 

\4 We previously reported significant cost overruns and milestone
slippages on an earlier project to develop the GCDB.  See Land
Management Systems:  Extensive Cost Increases and Delays in BLM's
Major Data Base Project (GAO/IMTEC-91-55, Aug.  5, 1991). 

\5 BLM has been converting selected management and administrative
software from COBOL, a third-generation programming language that
uses flat data files, to INFORMIX, a fourth-generation query language
and relational database system. 

\6 There were 13 administrative applications, however, BLM canceled
the Fire Management System on January 21, 1997. 


      RECENT MANAGEMENT CHANGES
---------------------------------------------------------- Letter :2.1

ALMRS/Modernization project management has undergone significant
change in the past 6 months.  The project manager and deputy project
manager retired and were replaced with project comanagers.  A
technical director position was created to oversee the more technical
aspects of the project and support project management
decision-making.  Finally, BLM created a new senior-level post, the
Assistant Director for IRM, to oversee the bureau's IRM program.  The
former acting Director of the Department of the Interior's Office of
Information Resources Management was selected for this position. 


   ALMRS/MODERNIZATION SCHEDULE
   RISKS
------------------------------------------------------------ Letter :3

ALMRS IOC software development was nearing completion when software
problems were identified in the spring and summer of 1996. 
Correction of these problems has caused the project schedule to be
delayed almost 1 year.  According to the current project schedule,
BLM plans to deploy ALMRS IOC in its Arizona, Idaho, and New Mexico
offices by the end of fiscal year 1997 and complete the deployment to
the remaining states in fiscal year 1998. 

However, BLM may not be able to maintain this schedule.  As we
reported in August 1995, BLM continues to allow little time between
critical milestones for ALMRS IOC and, therefore, there is
insufficient time to deal with unknown problems that BLM acknowledges
are likely to surface.  In its January 29, 1997, Project Management
Plan working draft, BLM expressed concern that the current milestones
are overly optimistic and lists them as a major risk.\7 According to
the plan, the short time frames are influenced by BLM's desire to
begin deploying the system in fiscal year 1997. 

In addition to being overly optimistic, the current project schedule
has not been fully analyzed or updated.  As a result, the project
milestones may not be reliable.  The milestones could slip if BLM
fully analyzes the human resources usage and task relationships, and
estimates the critical path for the project.  A complete, current,
and accurate project schedule is essential to adequately manage and
control the hundreds of tasks that remain to complete the project. 

Table 1 shows the current milestones for qualifications testing
(functionality and integration), acceptance testing, and deployment. 
According to the current schedule, deployment will be about 15 months
behind the schedule that was in place at the time of our last report. 
This represents an 18-month delay in deployment from the schedule
delivered to OMB when the project was approved in 1993. 



                                Table 1
                
                ALMRS IOC Final Testing and Installation
                               Milestones

                                           Milestones as  Milestones
                                           of             as of
                                           August 31,     January 15,
                                           1995           1997
-----------------------------------------  -------------  ------------
Complete qualifications testing            2nd quarter    3rd quarter
                                           FY 1996        FY 1997

Complete acceptance testing                3rd quarter    3rd quarter
                                           FY 1996        FY 1997

Begin deployment                           3rd quarter    4th quarter
                                           FY 1996        FY 1997
----------------------------------------------------------------------

--------------------
\7 BLM defines a major risk as one which exceeds a 70-percent chance
of occurring and would have a detrimental effect on the program. 


   RECENT PROBLEMS THREATEN THE
   PERFORMANCE, CAPABILITY, AND
   COST OF THE ALMRS/
   MODERNIZATION
------------------------------------------------------------ Letter :4

The Bureau and the prime contractor recently reported correcting the
remaining performance problems and have made progress in correcting
software errors, but have not yet fully succeeded.  BLM also recently
suspended the software development and testing work for case
information reporting--a flexible report-generating capability that
has been identified as an important need to users--because completing
the work to develop the capability would cost too much and take too
much time.  Correcting software problems has caused about a year in
schedule delays which, according to BLM, will cost about $12 million. 


      PERFORMANCE PROBLEMS AND
      SOFTWARE ERRORS HAVE BEEN
      IDENTIFIED
---------------------------------------------------------- Letter :4.1

ALMRS IOC software development was progressing relatively smoothly
and nearing completion until the time of user evaluation testing at
some of the New Mexico pilot site offices in May 1996.  During this
testing, BLM users observed and assessed whether ALMRS successfully
performed various functions in field office environments.  A number
of problems were reported involving unacceptably slow system
performance.  Additional testing was performed throughout the summer
using an operationally-sized database rather than the smaller test
database used in earlier testing.  The additional testing uncovered a
large number of problems. 

The severity of these problems was brought to the forefront at an
August 1996 meeting to discuss the ALMRS/Modernization project. 
During the meeting, the prime contractor reported that there were 204
uncorrected high-priority problems.\8 Also, BLM estimated that the
overall performance of ALMRS IOC was about 20 times too slow to meet
its needs.  Since then, BLM and the prime contractor have been trying
to correct these problems.  As a result of the efforts, BLM and the
prime contractor reported that as of February 3, 1997, uncorrected
high-priority problems had been reduced to about 85.  The prime
contractor also reported on January 31, 1997, it had resolved the
remaining system performance problems. 

However, the true performance of ALMRS IOC will not be known until
testing has been performed in an operational environment with
realistic user loads and an operationally-sized database.  According
to BLM's plans, this will occur before full deployment, during
capability demonstration assessment testing at four offices in New
Mexico--a state expected to have one of the largest ALMRS workloads. 
This will be the opportunity for BLM users to test the functionality
and performance of ALMRS IOC in an operational environment with true
workloads before deployment. 

In regard to this issue, the Acting Deputy Assistant Director for IRM
stated that BLM is keenly aware of the need to deliver a responsive
system.  BLM is closely monitoring key performance indicators and
pending software tests as refinements are made to the software. 
Also, the official added that performance at less than desired speeds
will diminish expected work productivity increases, and lead to
worker dissatisfaction with the system. 


--------------------
\8 High-priority problems are defined as ones in which the software
does not work, causing the computer system to crash; or discontinue
operation or ones in which a critical function cannot be executed. 
Resolving these problems involves correcting the software or
implementing acceptable procedures to work around the problems. 


      SOME CAPABILITIES MAY BE
      DEFERRED
---------------------------------------------------------- Letter :4.2

While the ALMRS/Modernization is expected to provide the basic
functionality needed by BLM to perform its mission, work has been
deferred on a significant reporting capability.  Case information
reporting was to replace a number of standard reports and provide
users with an ad hoc reporting capability--the ability to select
information from databases and prepare reports they need--to help
them accomplish their work.  BLM users consider this capability an
important part of the support to be provided by ALMRS IOC.  From a
software development standpoint, case information reporting is a
complex software integration of multiple segments of the system. 

Because of its complexity, the development of the case information
reporting capability cost more and took more time than anticipated. 
According to the Acting Deputy Assistant Director for IRM, the former
ALMRS/Modernization project manager canceled the task order for case
information reporting in October 1996, believing that completing the
development and testing would cost at least $1 million more than the
estimated $1.5 million already spent and extend the project
completion date.  In lieu of case information reporting, BLM has been
working to provide some standard reports and a rudimentary ad hoc
reporting capability that it believes will provide needed information
to meet minimal staff requirements. 

In this regard, the Assistant Director for IRM said all mandatory
reporting requirements will be met before deployment.  In addition,
the Acting Deputy Assistant Director for IRM stated that BLM intends
to reactivate case information reporting to provide a more powerful
and user friendly reporting capability.  The official said he expects
this reporting capability to be included in the first set of
maintenance modifications after deployment. 

Other capabilities could also be deferred if they cannot be
successfully completed within the newly revised project schedule.  A
recent BLM task order for the contract included a provision that
would allow it to defer any ALMRS IOC capability that cannot be
successfully developed and tested on time. 

The House and Senate Appropriations Committees-directed testing
should provide information to the Committees on any remaining
significant problems or loss of capabilities.  Further, the testing
should help BLM prevent deployment before performance and capability
issues are satisfactorily resolved. 


      COSTS MAY INCREASE FURTHER
---------------------------------------------------------- Letter :4.3

Significant cost risks remain in completing the ALMRS/Modernization
project.  BLM estimates that the cost of the milestone delays to
correct software problems is about $1 million per month.  The 1-year
delay will cost about $12 million and any additional delay would also
cost about $1 million a month. 

Further, BLM recently identified other risks that could also increase
costs.  In its January 29, 1997, Project Management Plan working
draft, BLM noted the following major risks: 

  -- Telecommunications network traffic may be too high under a
     normal ALMRS IOC workload, especially in remote areas.  If this
     occurs, BLM may have to acquire additional communications lines
     at a significant cost. 

  -- Computer servers may not provide adequate performance for states
     with larger transaction volumes.  If this occurs, BLM may have
     to (1) acquire more capable servers at a higher cost and (2)
     extend the project schedule, which would also increase costs. 

According to the Acting Deputy Assistant Director for IRM, BLM has
been considering opportunities to mitigate the risks of increased
cost.  In this regard, BLM has placed increased emphasis on
enhancements to software design because it was determined to be the
most cost effective method of increasing performance.  The Acting
Deputy Assistant Director said the results of these efforts have been
effective thus far and testing indicates that further design changes
will continue to return significant performance increases.  Also, the
Assistant Director for IRM told us that improved telecommunications
capability is already planned and BLM expects to acquire more capable
computer servers. 


   BLM DOES NOT HAVE ESSENTIAL
   MANAGEMENT CONTROLS NEEDED
   BEFORE DEPLOYMENT
------------------------------------------------------------ Letter :5

The ALMRS project is approaching the end of software development and
the beginning of final testing.  Although BLM is preparing to begin
deployment of the ALMRS/Modernization in July 1997, it does not yet
have in place necessary management plans, policies, or procedures
essential for operating and maintaining a nationwide system.  BLM has
worked on these plans, policies, and procedures; however, at present,
they are not finished, approved, or ready to implement.  BLM will not
be ready to deploy ALMRS until it establishes a configuration
management plan, policies, and procedures; system security plan and
architecture; transition plan; and operations and maintenance plan. 
These management tools are needed before deployment to help avoid
system failures, degradation of system performance, unauthorized
access, system outages, and operational problems.  The Bureau must
also finish resolving preparedness issues at ALMRS sites to avoid
problems in the future. 


      CONFIGURATION MANAGEMENT
      PLANS, POLICIES, AND
      PROCEDURES ARE NOT COMPLETE
---------------------------------------------------------- Letter :5.1

Configuration management plans, policies, and procedures are a set of
management controls over the composition of and changes to computer
and network systems components and documentation, including software
code documentation.  Configuration management is essential to
successfully manage complex information systems and ensure their
integrity throughout their life cycles. 

According to the Acting Deputy Assistant Director for IRM, BLM has a
configuration management plan and the related policies and procedures
to manage ALMRS/Modernization hardware and software; however, these
plans have not been finalized and adopted.  Also, the
ALMRS/Modernization configuration management board--an organization
responsible for managing the system configuration and changes--does
not have the authority to control changes in non-ALMRS systems and
components installed in state, district, and area offices. 
Unrestrained by bureau-wide configuration management control, these
offices and the state-level configuration management boards could
modify any local non-ALMRS system--primarily personal computers,
networks, and applications--and perhaps adversely affect the
ALMRS/Modernization. 

System modifications without the safeguards imposed by the discipline
of configuration management could lead to undesirable consequences,
such as causing system failures, endangering system integrity,
increasing security risks, and degrading system performance. 
Site-readiness reviews, conducted in 1996 at several state, district,
and area offices show that more needs to be done to fully manage and
control the ALMRS/Modernization configuration.  For example, some BLM
offices lack local configuration management plans or policies, use
various versions of software, and use hardware that does not conform
to BLM's standards for the ALMRS/Modernization. 

On February 6, 1997, the Acting Deputy Assistant Director for IRM
told us that the scope of the ALMRS/Modernization configuration
management board responsibilities is being increased to include the
remainder of BLM's information technology architecture that is
networked to ALMRS.  Subject to the guidance of the
ALMRS/Modernization board, local configuration management boards in
each BLM state office and center will control the implementation of
any hardware or software. 


      BLM HAS NO SECURITY PLAN OR
      ARCHITECTURE
---------------------------------------------------------- Letter :5.2

Security focuses on the ability to ensure the confidentiality,
integrity, and availability of stored and processed data.  Unsecured
or poorly secured systems are highly vulnerable to external and
internal attacks and unauthorized use.  Security planning includes
the identification of high-level security requirements, including
mission, management, and technical security requirements; functional
security requirements that cover users' security needs;
data-sensitivity analysis to identify data requiring special
protection; and a security architecture that describes the security
controls and relationships among the various system components.  The
security plan should define the policies and procedures for operating
and maintaining a secure ALMRS/Modernization environment. 

While BLM has had a security planning effort underway, and has
finalized some policies, such as a security access policy for the
ALMRS/Modernization, it has taken no steps to develop a security plan
and architecture.  In addition, BLM has yet to finalize other key
security guidance for the ALMRS/Modernization, including

  -- a disaster recovery and contingency plan for the restoration of
     operations and data in the case of sabotage, natural disaster,
     or other operational disruption and

  -- a security test, evaluation, and certification plan to provide
     assurance that the system will protect information, as required
     by the security policy. 

On February 6, 1997, the Acting Deputy Assistant Director for IRM
told us that BLM is committed to following security requirements.  He
added that BLM is using risk assessment and contingency planning
software to ensure a standard approach to security planning at all
sites.  While these efforts are commendable, they are not a
substitute for a security plan and architecture. 


      TRANSITION PLANNING IS NOT
      COMPLETE
---------------------------------------------------------- Letter :5.3

BLM asked a contractor to help it develop a bureauwide plan for the
deployment of and transition to ALMRS IOC.  However, it is not clear
to what extent this plan will address the transition issues related
to the roles and responsibilities of BLM staff.  Because the
development of a transition plan not only requires detailed knowledge
of the ALMRS IOC, but also a thorough understanding of BLM's culture,
existing work processes, and the current operational environment, it
is important that BLM personnel play key roles in the transition
planning. 

Many of the 210 BLM offices nationwide that will receive the
ALMRS/Modernization system--designed to automate many manual
functions--have little or no experience implementing sophisticated
information systems.  The process of deploying a major information
system that people will use to do their jobs requires careful
planning.  The transition from automated capabilities provided by a
centrally-managed mainframe system to a locally-managed integrated
system will require changes in organizational roles,
responsibilities, and interrelationships among the units and people
using the system.  A transition plan should address these issues, and
guide BLM in defining new operational procedures. 

On February 6, 1997, the Acting Deputy Assistant Director for IRM
told us that BLM has begun discussions to form a team to address the
expected changes in work processes and the effect on local staff
functions.  In addition, BLM plans to (1) finish the preparation of a
final central transition plan and (2) prepare guidance on completing
final state plans as soon as experience has been garnered from the
capability demonstration assessment testing at four offices in New
Mexico. 


      OPERATIONS AND MAINTENANCE
      PLANS
      ARE NOT COMPLETE
---------------------------------------------------------- Letter :5.4

Operations and maintenance of information systems based on a
client-server architecture\9 require a large number of highly skilled
people.  Unlike the centrally-managed legacy mainframe systems that
have been supporting BLM operations, the ALMRS/Modernization system
will require management and technical support at each major BLM site. 
This support includes UNIX system managers, database administrators,
user support and telecommunication specialists, and security
officers. 

Site-readiness reviews of state, district, and area offices indicate
that BLM does not currently possess the managerial and technical
capability to support the ALMRS/Modernization system.  BLM recognizes
the risks associated with operations and maintenance issues.  In its
January 29, 1997, Project Management Plan working draft, it notes
significant risks associated with not being prepared to manage
staffing and skills issues related to deployment, implementation, and
operations and maintenance.  While BLM recognizes the need to develop
or acquire sufficient managerial and technical capability to operate
and manage the ALMRS/Modernization, and has launched an ambitious
training program, some of its offices are not yet prepared to operate
and maintain the system. 

On February 6, 1997, the Acting Deputy Assistant Director for IRM
stated that each BLM site has been operating the base
ALMRS/Modernization platform and network beginning as early as 1994. 
After a brief shakedown period, the staff at each site have proven
capable of operating and maintaining the system.  He said BLM has
been providing extensive technical training and achieved industry
certification of fourteen of its technical staff.  As to other
skills, the Acting Deputy told us implementation of the ALMRS IOC
application will require database administration skills which are
still being acquired.  The official said the sufficiency of numbers
of qualified staff varies from site to site; however, state directors
have committed to providing sufficient staffing prior to ALMRS
implementation.  Clearly, as noted in the discussions above, the
operations and maintenance of ALMRS is an area that must be managed
for BLM to achieve its objectives and the daily needs of its offices. 
Completion of an operations and maintenance plan would help to ensure
that BLM can meet these needs and mitigate the risk described in its
Project Management Plan working draft. 


--------------------
\9 A distributed system that splits software tasks between client
computers and server computers and allows clients and servers to be
independently located on a network.  Client systems typically request
services of server systems. 


   ESTIMATED COST OF ALMRS IS
   INCREASING
------------------------------------------------------------ Letter :6

As of January 1997, BLM estimates that the ALMRS/Modernization
project will cost about $537 million through 2002.  This latest
estimate is about $134 million over the initially-approved cost
estimate of $403 million, an increase of about a third.  According to
BLM's Assistant Director for IRM, most of the cost increases are
attributable to (1) the probable underestimation of costs in the
original estimate, such as the cost of hardware and software
maintenance and initial training, and (2) costs that were not
included in the original estimate, such as the cost of technology
refreshment, data communications line leases, facilities and
utilities, continuing training, and operations and maintenance costs
to be funded by BLM's program areas.  In addition, project delays
contributed to increased costs. 

The original project estimate of $403 million provided to OMB in 1993
covered a 10-year period.\10 During this 10-year period, the
ALMRS/Modernization was expected to be in operation for 6.5
years--mid-fiscal year 1996 through fiscal year 2002.  The latest
estimate, however, includes only 4.5 years of operation--mid-fiscal
year 1998 through fiscal year 2002. 

According to the ALMRS/Modernization project budget analyst, BLM told
OMB that it believed it could develop and implement the
ALMRS/Modernization for an estimated $403 million.  However, this
estimate was not based on a life-cycle cost model or sound cost
estimating techniques.  Therefore, this cost estimate was not
reliable.  In 1995, BLM tasked a contractor to develop a life-cycle
cost model for the ALMRS/Modernization to accurately capture the past
cost and estimate future costs.  The prototype model was completed in
April 1996.  BLM has been working to input cost data into the
database and examine the prototype model.  The $537 million cost
estimate was developed using a combination of the prototype model and
other financial data.  However, it appears that this estimate will
also change as BLM continues to try to improve its ability to
reliably estimate costs. 

In this regard, the Assistant Director for IRM told us accurate
project accounting is complicated because of the underestimations and
omissions described above and other factors.  Also, the Assistant
Director said that BLM has contracted with the consultant, who worked
with the bureau to develop the life-cycle cost model, to return in
February 1997 to help refine the model.  Finally, the official stated
that further study and work on the life-cycle cost model will enable
BLM to reasonably estimate cost allocations and more accurately
project costs for 1998 and future years. 


--------------------
\10 The total was based on the estimate for fiscal year 1993 through
fiscal year 2002 plus the funds that had been obligated in fiscal
years 1991 and 1992. 


   INTERIOR INTENDS TO PROMOTE THE
   DEPARTMENTWIDE USE OF ALMRS
------------------------------------------------------------ Letter :7

The Department of the Interior has stated that it intends to use
ALMRS as the core system to support its land management
responsibilities.  ALMRS IOC was designed to automate an important
part of those responsibilities--the creation and maintenance of land
and mineral ownership and use records.  As geographic capabilities
and data are developed over time, the department expects ALMRS to
provide the automated land ownership and use information to support
all of its bureaus.  The department stated that it will establish
procedures for the use of ALMRS by all bureaus after (1) the software
is developed and accepted by BLM and (2) BIA completes its study of
the adaptability of ALMRS to other bureaus' requirements. 

In 1993, the department established the Land Records Automation Work
Group, composed of representatives from each of its bureaus.  The
group was charged with identifying the land title and record
responsibilities of the bureaus and determining the feasibility of
using ALMRS to support those responsibilities.  The group found that,
after BLM, BIA had the largest requirement for automating land titles
and other land records.  Under the auspices of the work group, BIA
assessed whether ALMRS would satisfy the requirements of the bureaus
and what modifications would be necessary to meet the requirements. 

According to the report on its preliminary findings, BIA concluded
that the ability of ALMRS to meet its land records management needs
is quite positive, although modifications to ALMRS would be
necessary.\11 The Bureau also noted that it is highly likely that
ALMRS can be modified to meet the needs of the other bureaus, adding
that more analyses are required to determine the extent of the
modifications needed.  In discussing these findings, BIA officials
stated that the Bureau is planning to use ALMRS--or as much of it as
possible--to meet its land title and records system requirements. 

The Acting Deputy Assistant Director for IRM also noted that BLM
assigned two technical specialists to assist the BIA in the planning
stages of its land records project, in an effort to facilitate the
adoption or adaptation of ALMRS. 


--------------------
\11 ALMRS/Modernization Commonality Assessment, performed by the
Bureau of Indian Affairs for the Department of the Interior's Land
Records Automation Work Group. 


   CONCLUSIONS
------------------------------------------------------------ Letter :8

BLM faces risks that threaten the performance and capability of the
ALMRS/Modernization and resolving these may further increase costs. 
Several risks could also adversely affect the recently revised
project milestones, including the deployment and completion dates,
and the latest cost estimate.  The Bureau has been endeavoring to
correct the problems and mitigate these risks. 

The absence of completed versions of essential plans, policies, and
procedures on configuration management, system security, transition,
and operations and maintenance adds additional risks.  BLM
understands the importance of these essential tools, and has been
working to develop them.  However, until these plans, policies and
procedures have been completed, approved, and put into place, the
Bureau will not be ready to deploy the system. 


   RECOMMENDATIONS
------------------------------------------------------------ Letter :9

To reduce the risks and strengthen the management of the
ALMRS/Modernization, we recommend that the Director, of the Bureau of
Land Management: 

  -- fully update the ALMRS/Modernization schedule, including
     analyzing human resources usage and task relationships to
     establish reliable milestones and a critical path to complete
     the project;

  -- disclose in BLM's certification to the House and Senate
     appropriations committees, information on (1) how well the
     system performs and (2) any automated capability that has been
     removed, suspended, or deferred to ensure that ALMRS IOC is not
     deployed with degraded performance or capability loss;

  -- establish a robust configuration management plan, and related
     policies and procedures for establishing a program focused on
     managing the components of and all changes to all BLM
     information systems, including non-ALMRS/Modernization systems,
     to ensure successful management and integrity of the
     ALMRS/Modernization;

  -- establish a system security architecture and plan, including
     security policies and procedures; disaster and recovery plans;
     and security test, evaluation, and certification plans to reduce
     risks to the availability and integrity of stored and processed
     data;

  -- develop transition plans outlining the changes in organizational
     roles, responsibilities, and interrelationships among the units
     and people using the ALMRS/Modernization system to reduce the
     risk associated with those changes; and

  -- develop operations and maintenance plans addressing the
     acquisition, management, and maintenance of managerial and
     technical support for the ALMRS/Modernization system to help
     ensure successful operations. 


   AGENCY COMMENTS
----------------------------------------------------------- Letter :10

The Bureau of Land Management provided comments on a draft of this
report.  These comments are summarized below and reprinted in
appendix II.  BLM stated that it generally agrees with our
observations and will implement all of our recommendations.  In this
regard, BLM said it has actions underway and fully intends to have
the necessary plans, policies, and procedures in place by the time
ALMRS IOC is ready to be deployed to the first state. 

BLM's comments describe the accomplishments and progress it has made
in the overall ALMRS/Modernization project.  The Bureau said it is
acting to mitigate the risks that threaten the success of the project
and is working vigorously to ensure that ALMRS is developed and
deployed as quickly as possible without compromising quality. 
According to BLM, the new project management team is taking a number
of steps to increase the probability of successful project
completion.  Finally, the Bureau states that it is confident that the
ALMRS software will meet its requirements and is optimistic that the
software can be deployed close to the current schedule. 


--------------------------------------------------------- Letter :10.1

We are sending copies of this report to the Secretary of the
Interior, Director of the Bureau of Land Management, Director of the
Office of Management and Budget; and interested congressional
committees.  We will also make copies 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, Information Resources Management


OBJECTIVES, SCOPE, AND METHODOLOGY
=========================================================== Appendix I

Our objectives were to ascertain (1) if there are remaining risks
that could seriously affect the performance, capability, or cost of
ALMRS, (2) if BLM is operationally and managerially ready to deploy
ALMRS in fiscal year 1997, (3) the latest cost estimate for ALMRS and
reasons for any increases, (4) what the Department of the Interior is
doing to promote the use of ALMRS by its other bureaus, and (5) if
other bureaus are planning to use ALMRS for their land management
needs. 

To determine if there are any remaining performance, capability, and
cost risks, we reviewed ALMRS/Modernization project documents,
assessments by the independent verification and validation
contractor, prime contractor weekly and monthly status reports,
software problem reports, and project management schedules.  We also
attended quarterly Interior reviews of the development project at the
ALMRS/Modernization project office in Lakewood, Colorado, and
observed user evaluation testing at the ALMRS/Modernization pilot
site offices in Santa Fe, Albuquerque, Farmington, and Taos, New
Mexico. 

We discussed the project with prime contractor officials; contractor
officials involved with independent verification and validation
testing, and operational assessment testing and evaluation; a senior
technical analyst at Interior; and BLM's Assistant Director for IRM. 
We discussed software development risks, performance problems,
planned system capabilities, software problem reports, system
testing, technical complexity, costs associated with milestone
delays, and project management and scheduling procedures with project
officials responsible for systems engineering, software development,
budgeting, and project management.  We reviewed the results of user
evaluation testing, and database design and sizing analyses.  We
compared revised project milestones with past milestones, including
those discussed in our prior report,\1 and remaining project tasks. 

Because of the delays in the ALMRS/Modernization schedule, we were
unable to review the results of the formal qualifications testing,
pilot sites capability demonstration assessments, stress testing,
independent verification and validation testing, and operational
assessment testing and evaluation, as they had not taken place before
the end of our fieldwork. 

To determine if BLM is operationally and managerially ready to deploy
ALMRS/Modernization in fiscal year 1997, we reviewed draft
configuration management, security, and transition plans, policies,
and procedures, BLM's operations and maintenance strategic options
document, Carnegie Mellon University's Capability Maturity Model for
Software, and minutes of BLM configuration management board meetings. 
We reviewed the results of BLM site-readiness reviews and BLM's
revised testing and deployment schedules, and discussed them with
ALMRS/Modernization project managers, the Interior senior technical
analyst, and the independent verification and validation contractor. 

To obtain the latest cost estimates for the ALMRS/Modernization and
reasons for any increases, we reviewed and analyzed project estimates
and compared them with estimates and categories in the original
OMB-approved funding agreement.  We compared BLM's current
ALMRS/Modernization cost projections with estimates included in our
prior report.\2 Budget estimates were collected from and discussed
with BLM's Assistant Director for IRM and the ALMRS/Modernization
project budget analyst.  We did not independently verify the accuracy
of the estimates. 

To determine how Interior is promoting the use of ALMRS by other
bureaus and whether other bureaus are planning to use ALMRS for their
land management needs, we reviewed Interior's Land Automation Work
Group meeting minutes, hearings report on BIA appropriations for
fiscal year 1997 before the Subcommittee on Interior and Related
Agencies, House Committee on Appropriations, and BIA's Commonality
Assessment.  We discussed the department's actions with its senior
technical analyst and its former Acting Director, Office of
Information Resources Management. 

Our work was performed from April 15, 1996, through February 21,
1997, in accordance with generally accepted government auditing
standards.  We performed our work at Interior's information resources
management headquarters in Washington, D.C.; the ALMRS/Modernization
project office in Lakewood, Colorado; the prime contractor's office
in Golden, Colorado; and independent verification and validation
contractor's offices in McLean, Virginia and in the
ALMRS/Modernization project office in Lakewood, Colorado. 



(See figure in printed edition.)Appendix II

--------------------
\1 GAO/AIMD-95-180, Aug.  31, 1995. 

\2 GAO/AIMD-95-180, Aug.  31, 1995. 


COMMENTS FROM THE BUREAU OF LAND
MANAGEMENT
=========================================================== Appendix I



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)


GAO COMMENTS

The following are GAO's comments on BLM's February 21, 1997, letter. 

1.  This information is summarized in the "Agency Comments" section
of the report. 

2.  The components and status of the ALMRS/Modernization are
summarized in the "Background" section of the report.  BLM's letter
provides additional details that GAO believes are unnecessary to
address the Subcommittee's questions or understand the findings,
conclusions, and recommendations in the report. 

3.  BLM's actions to identify and mitigate risks are discussed in the
"ALMRS/Modernization Schedule Risks" and "Recent Problems Threaten
the Performance, Capability, and Cost of the ALMRS/Modernization"
sections of the report. 

4.  The cost estimation difficulties are discussed in the "Estimated
Cost of ALMRS Is Increasing" section of the report.  BLM's letter
states that the first estimate provided to OMB was $575 million. 
This estimate was reduced by BLM to $403 million after it awarded the
contract to develop ALMRS.  Since then, BLM has considered the $403
million estimate to be the official estimate.\1


--------------------
\1 GAO/AIMD-95-180, Aug.  31, 1995. 


MAJOR CONTRIBUTORS TO THIS REPORT
========================================================= Appendix III

ACCOUNTING AND INFORMATION
MANAGEMENT DIVISION, WASHINGTON,
D.C. 

David G.  Gill, Assistant Director
Mirko J.  Dolak, Technical Assistant Director
Keith Rhodes, Technical Director
Marcia C.  Washington, Senior Information Systems Analyst


*** End of document. ***