Telecommunications: Full Adoption of Sound Transition Planning	 
Practices by GSA and Selected Agencies Could Improve Planning	 
Efforts (06-JUN-06, GAO-06-476).				 
                                                                 
With the current governmentwide telecommunications contracts set 
to expire, the General Services Administration's (GSA) Federal	 
Technology Service (FTS) and its customer agencies must prepare  
to transition their services to a new contract vehicle. The	 
previous federal effort to transition telecommunications services
proved to be a large, complex task. GAO was asked to determine to
what extent (1) selected agencies used sound practices in	 
preparing for the transition and (2) GSA's FTS has prepared for  
the transition by addressing previous lessons learned and	 
providing agencies with guidance on sound transition planning.	 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-06-476 					        
    ACCNO:   A55180						        
  TITLE:     Telecommunications: Full Adoption of Sound Transition    
Planning Practices by GSA and Selected Agencies Could Improve	 
Planning Efforts						 
     DATE:   06/06/2006 
  SUBJECT:   Contract administration				 
	     Federal procurement				 
	     Federal procurement policy 			 
	     Government contracts				 
	     Telecommunications 				 
	     Strategic planning 				 
	     Lessons learned					 
	     Interagency relations				 

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GAO-06-476

     

     * Recommendations
     * Agency Comments
     * Appendix I: Briefing to the Staff of the Committee on Govern
     * Appendix II: Comments from the General Services Administrati
     * Appendix III: Comments from the Department of the Interior
          * Order by Mail or Phone

Report to the Chairman, Committee on Government Reform, House of
Representatives

United States Government Accountability Office

GAO

June 2006

TELECOMMUNICATIONS

Full Adoption of Sound Transition Planning Practices by GSA and Selected
Agencies Could Improve Planning Efforts

GAO-06-476

Contents

Letter 1

Recommendations 4
Agency Comments 5
Appendix I Briefing to the Staff of the Committee on Government Reform,
House of Representatives, March 24, 2006 7
Appendix II Comments from the General Services Administration 56
Appendix III Comments from the Department of the Interior 58

Abbreviations

BLM Bureau of Land Management DOE Department of Energy DOI Department of
the Interior DOJ Department of Justice FBI Federal Bureau of Investigation
FTS Federal Technology Service GSA General Services Administration IMC
Interagency Management Council RFP Request for Proposal

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separately.

United States Government Accountability Office

Washington, DC 20548

June 6, 2006

The Honorable Tom Davis Chairman, Committee on Government Reform House of
Representatives

Dear Mr. Chairman,

As you know, the previous effort by federal agencies to transition
telecommunications services to a new contract proved to be difficult. We
reported in 20011 that the transition to the current federal
telecommunications contracts, known as FTS2001, encountered delays and
increased telecommunications costs. The effort took more than 24 months
and lost an estimated $74 million in savings. As a result, we noted that
the process of planning and managing future telecommunications
acquisitions will be improved by applying lessons learned from the
transition to FTS20012. We also noted the need for comprehensive program
management, accurate inventories, and defined contractor and government
responsibilities.

As the FTS2001 contracts approach expiration, General Service
Administration's (GSA) Federal Technology Service (FTS) and its customer
agencies have begun to prepare for the transition to new contracts, known
as Networx. Past experience has shown that the importance of this planning
process should not be underestimated.

At your request, we reviewed the extent to which (1) selected agencies
used sound practices in preparing for the transition and (2) GSA's FTS has
prepared for the transition by addressing previous lessons learned and
providing agencies with guidance on sound transition planning.

To achieve our first objective, we obtained FTS2001 billing information
and identified the 50 departments and agencies with the highest total
charges for 1 month billed. From these, we selected six that would ensure
a representation of (1) departments, bureaus, and head agency/subagency
relationships; (2) complexity based on the number of current vendors used;
and (3) varying levels of attendance in an agency forum that is assisting
FTS in its efforts to plan for the transition. The departments and
agencies selected for review were the Department of the Interior, the
Bureau of Land Management (within the Department of the Interior),
Department of Energy, Department of Justice, the Federal Bureau of
Investigation (a component of the Department of Justice), and GSA.

1GAO, FTS2001: Transition Challenges Jeopardize Program Goals, GAO-01-289
(Washington, D.C.: Mar. 30, 2001).

2GAO, FTS2001: Contract Transition Delays and Their Impact on Program
Goals, GAO-544T (Washington, D.C.: Apr. 26, 2001).

We then researched available literature on telecommunications transitions
and interviewed those with experience in telecommunications transitions,
including industry experts, telecommunications vendors, and private sector
companies. We analyzed the results of our research and interviews,
synthesized common themes and issues, and identified five sound transition
planning practices against which agency efforts could be measured:

           o  establishing a telecommunications inventory,
           o  performing a strategic analysis of telecommunications
           requirements,
           o  establishing a structured transition management approach,
           o  identifying resources, and
           o  developing a transition plan.

           Once compiled, we provided these practices to the industry experts
           and FTS for comment and general agreement.

           Next, we obtained and reviewed documentation-including strategic
           plans, telecommunications inventories, and transition related
           plans-and interviewed officials from each of the selected
           agencies. We assessed this information against the five sound
           transition planning practices.

           To achieve our second objective, we reviewed transition guidance
           and other Networx documentation3 developed by FTS and the
           Interagency Management Council4. We also interviewed FTS Networx
           program officials to identify any planned guidance or activities
           for the Networx transition. We assessed this information against
           the published lessons learned from the FTS2001 transition, and
           determined whether FTS was providing guidance to agencies that
           correlated with the identified sound transition planning
           practices.

           We performed our work from June 2005 through March 2006 at the
           Washington, D.C., area offices of the selected agencies in
           accordance with generally accepted government auditing standards.

           On March 24, 2006, we provided your office with a detailed
           briefing on the results of this work, which is included as
           appendix I. The purpose of this letter is to provide the briefing
           slides to you and officially transmit our recommendations to the
           Administrator of General Services, the Attorney General, and the
           Secretary of Energy.

           In summary, the agencies we reviewed were generally planning to
           employ the five sound planning practices in their transition
           management efforts. However, officials at two of the agencies
           stated they did not plan to fully identify necessary resources.
           Specifically, officials from the Department of Justice indicated
           they would not need additional financial resources for the
           transition, even though they could not provide an analytical basis
           for their decision, and officials from the Department of Energy
           believed that because the agency's transition will be
           straightforward, identifying human capital resource needs would
           not be necessary. However, without addressing all of the sound
           practices, agencies risk entering into a complex transition
           without the level of preparation necessary to ensure a smooth
           transition.

           FTS, in preparing for the transition, has addressed the 21 out of
           27 lessons learned from the previous transition. For example, it
           has made efforts to clarify which parties are responsible for
           transition costs and to ensure that contractors have adequate
           operations support systems in place before the transition begins.
           FTS has not yet addressed lessons pertaining to securing incumbent
           contractor cooperation and developing guidance on establishing
           inventory management and validation processes. FTS stated that it
           plans to address the remaining lessons prior to contract award.
           Specifically, FTS stated it is currently working with the
           incumbent contractors to ensure cooperation and that high-level
           guidance on inventory maintenance will be provided in the last few
           months leading up to contract award.

           FTS has also provided agencies with guidance on performing a
           strategic analysis of telecommunications requirements and
           identifying necessary resources for the transition, two of the
           five sound transition planning practices. However, it did not
           provide comprehensive guidance on the remaining three practices
           (establishing a telecommunications inventory, establishing a
           structured management approach, and developing a transition plan).
           The specific aspects of the practices that its guidance does not
           address are establishing an inventory maintenance process, using
           key management processes (project management, configuration
           management, and change management), developing measures of
           success, and performing transition-specific risk assessments. As
           stated above, FTS plans to provide high-level guidance on
           inventory maintenance in the last few months leading up to
           contract award.

           Enough time remains for agencies to effectively address all the
           issues we identified, but they need to identify telecommunications
           inventories and conduct strategic analyses soon because these
           practices provide inputs for other sound practices. Further,
           although principal responsibility for the transition rests with
           individual agencies, FTS has an important program-level
           responsibility to plan and coordinate the transition. As a result,
           it is important that FTS work with its customer agencies to ensure
           that they fully and consistently address the full range of sound
           transition planning practices.

           Recommendations
			  
			  To ensure that the agencies we reviewed adequately prepare
           themselves for the transition, we recommend

           o  that the Attorney General ensure that the Department of
           Justice's planning efforts include an analysis of the extent to
           which current financial resources will be sufficient to conduct an
           effective transition;
           o  that the Secretary of Energy ensure that the department's
           planning efforts include identification of human capital resources
           needed to conduct an effective transition.

           To ensure that agencies are adequately prepared for the
           transition, we recommend that the Administrator of General
           Services, in working with the Interagency Management Council,
           develop and distribute guidance to ensure that our identified
           sound practices of transition planning are utilized. In
           particular, FTS should ensure that guidance addresses

           o  the use of project management, configuration management, and
           change management processes in transition planning efforts;
           o  the establishment of measures of success to help agencies'
           managers assess progress toward the objectives stated in their
           plans; and
           o  the development of a transition-specific risk assessment that
           would allow an agency to lessen problems and delays during the
           transition.

           Agency Comments
			  
			  In comments on a draft of this report, officials from the General
           Services Administration and the Departments of Justice, Energy,
           and the Interior generally agreed with our recommendations.

           The GSA's acting Administrator, in written comments, stated that
           the agency will work with the IMC to address our recommendations.
           The acting Administrator also stated that GSA has initiated
           discussions and planning activities to address our recommendations
           and that processes and guidelines for these issues will be
           included in a transition planning guide expected to be distributed
           to all agencies before December 2006. These comments are
           reproduced in appendix II.

           A Department of Justice Audit Liaison Specialist commented via
           e-mail that the agency agreed with our recommendation and
           findings.

           A Department of Energy Deputy Associate Chief Information Officer
           commented via e-mail that the agency will be in a position to
           determine if additional human capital resources are warranted once
           Networx has been awarded and a review and analysis of available
           services have been completed.

           The Department of the Interior's Assistant Secretary of Policy,
           Management, and Budget, in written comments, stated that the
           agency generally agreed with our recommendations and findings. He
           also expressed concern with the difficulty of the upcoming
           transition and stated that the department relies on GSA actions in
           order to timely allocate resources for this effort. These comments
           are reproduced in appendix III.

           As agreed with your office, unless you publicly announce the
           contents of this report earlier, we plan no further distribution
           of this report until 30 days from the report date. At that time,
           we will send copies of this report to interested congressional
           committees, the Administrator of General Services, the Attorney
           General, the Secretary of the Interior, and the Secretary of
           Energy. We will also make copies available to others upon request.
           In addition, the report will be available at no charge on the GAO
           Web site at http://www.gao.gov .

           Should you or your offices have any questions about matters
           discussed in this report, please contact me at (202) 512-6240 or
           by e-mail at [email protected]. Key contributions to this report
           were made by James R. Sweetman, Jr., Assistant Director; Jamey
           Collins; Alison Holland; David Hong; Teresa M. Neven; Kelly Shaw;
           and Amos Tevelow.

           Sincerely yours,

           Linda D. Koontz Director, Information Management Issues

Appendix I: Briefing to the Staff of the Committee on Government Reform,
House of Representatives, March 24, 2006

Appendix II: Comments from the General Services Administration 

Appendix III: Comments from the Department of the Interior

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3These included presentations, meeting minutes, projected time lines,
FTS2001 lessons learned, the Networx Request for Proposals, and the
Networx Transition Guide (Pre-Award).

4The Interagency Management Council is a group of senior federal
information resource officials that was established in 1992 to provide a
forum and focal point for FTS to work with its customer agencies in
planning and overseeing FTS's long-distance telecommunications services.

www.gao.gov/cgi-bin/getrpt? GAO-06-476 .

To view the full product, including the scope

and methodology, click on the link above.

For more information, contact Linda Koontz at (202) 512-6240 or
[email protected].

Highlights of GAO-06-476 , a report to the Chairman, Committee on
Government Reform, House of Representatives

June 2006

TELECOMMUNICATIONS

Full Adoption of Sound Transition Planning Practices by GSA and Selected
Agencies Could Improve Planning Efforts

With the current governmentwide telecommunications contracts set to
expire, the General Services Administration's (GSA) Federal Technology
Service (FTS) and its customer agencies must prepare to transition their
services to a new contract vehicle. The previous federal effort to
transition telecommunications services proved to be a large, complex task.

GAO was asked to determine to what extent (1) selected agencies used sound
practices in preparing for the transition and (2) GSA's FTS has prepared
for the transition by addressing previous lessons learned and providing
agencies with guidance on sound transition planning.

What GAO Recommends

GAO recommends that the Attorney General and the Secretary of Energy
perform the analyses necessary to identify required transition resources
for their agencies.

In addition, GAO recommends that the Administrator of General Services
provide guidance to GSA's customer agencies that reflects all of the sound
transition planning practices.

In commenting on a draft of this report, the General Services
Administration, the Department of Justice, the Department of Energy, and
the Department of the Interior generally agreed with our recommendations.

The agencies GAO reviewed-Department of the Interior, Bureau of Land
Management, Department of Energy, Department of Justice, Federal Bureau of
Investigation, and GSA-were generally planning to employ sound transition
planning practices (see table below). However, officials at two agencies
stated they did not plan to fully identify necessary resources.
Specifically, officials from the Department of Justice indicated they
would not need additional funding for the transition, even though they
could not provide an analytical basis for their decision, and officials
from the Department of Energy believed their transition planning efforts
would not require the identification of human capital needs. Without
addressing all of the sound practices, agencies risk entering into a
complex transition without the level of preparation necessary to ensure a
smooth transition.

FTS has addressed the majority of the lessons learned from the previous
transition. Areas that have not yet been fully addressed are securing
incumbent contractor cooperation and establishing guidance on inventory
management and validation processes. FTS plans to address all remaining
lessons prior to contract award. FTS has also provided agencies with
guidance that fully reflects two of the five sound transition planning
practices. However, guidance has not addressed all aspects of the
remaining three, including establishing an inventory maintenance process,
using key management processes, identifying measures of success, and
performing transition-specific risk assessments.

Although principal responsibility for the transition rests with individual
agencies, FTS has an important program-level responsibility to plan and
coordinate the transition. As a result, unless it works with agencies to
address the full range of sound transition planning practices, agencies
may not address the practices fully or consistently, which could, in turn,
affect their level of preparation.

Sound Transition Planning Practices

Source: GAO.
*** End of document. ***