Internet Protocol Version 6: Federal Government in Early Stages  
of Transition and Key Challenges Remain (30-JUN-06, GAO-06-675). 
                                                                 
The Internet protocol (IP) provides the addressing mechanism that
defines how and where information such as text, voice, music, and
video move across interconnected networks. IP version 4 (IPv4),  
which is widely used today, may not be able to accommodate the	 
increasing number of global users and devices that are connecting
to the Internet. As a result, Internet version 6 (IPv6) was	 
developed to increase the amount of available address space. In  
August 2005, the Office of Management and Budget (OMB) issued a  
memorandum specifying activities and time frames for federal	 
agencies to transition to IPv6. GAO was asked to determine (1)	 
the status of federal agencies' efforts to transition to IPv6;	 
(2) what emerging applications are being planned or implemented  
that take advantage of IPv6 features; and (3) key challenges	 
industry and government agencies face as they transition to the  
new protocol.							 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-06-675 					        
    ACCNO:   A56236						        
  TITLE:     Internet Protocol Version 6: Federal Government in Early 
Stages of Transition and Key Challenges Remain			 
     DATE:   06/30/2006 
  SUBJECT:   Accountability					 
	     Computer networks					 
	     Information resources management			 
	     Internet						 
	     IP addresses					 
	     Standards						 
	     Technology 					 
	     TCP/IP						 
	     Computer network protocols 			 

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GAO-06-675

     

     * Results in Brief
     * Background
          * Internet Protocol Aids in the Transmission of Information ac
          * Key Characteristics of IPv6 Increase Address Space and Impr
               * IPv6 Dramatically Increases Address Space
               * Simplified Header Intended to Promote Flexibility and Functi
               * Improved Routing Offers More Efficient Movement of Informati
               * Enhanced Mobility Features Provide Seamless Connectivity
               * Enhanced Configuration Capabilities Can Ease Aspects of Netw
               * Enhanced Quality of Service Can Prioritize Information Deliv
               * Enhanced Integration of IP Security Can Assist in Data Prote
          * Previous GAO Work Noted Little Progress in Planning to Trans
          * OMB Specifies Activities, Deadlines for IPv6 Transition
     * Federal Agencies Are in the Early Stages of Transitioning to
     * Applications Taking Advantage of IPv6 Features Are Being Pla
          * Applications within the Federal Government
          * Applications Outside the Federal Government
          * Few Applications Are Being Planned and Implemented
     * Several Challenges Exist for Industry, Government Agencies d
          * Managing Information Security
          * Incorporating IPv6 Features into Application Business Cases
          * Interfacing with External Partners during the Transition Per
          * Other Challenges
     * Conclusions
     * Recommendation for Executive Action
     * Agency Comments and Our Evaluation
     * Appendix I: Objectives, Scope, and Methodology
     * Appendix II: GAO Contacts and Staff Acknowledgments
          * GAO Contacts
          * Acknowledgments
               * Order by Mail or Phone

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

United States Government Accountability Office

GAO

June 2006

INTERNET PROTOCOL VERSION 6

Federal Government in Early Stages of Transition and Key Challenges Remain

Internet Protocol Internet Protocol Internet Protocol Internet Protocol
Internet Protocol Internet Protocol Internet Protocol Internet Protocol
Internet Protocol Internet Protocol Internet Protocol Internet Protocol
Internet Protocol Internet Protocol Internet Protocol Internet Protocol
Internet Protocol Internet Protocol Internet Protocol Internet Protocol
Internet Protocol Internet Protocol Internet Protocol Internet Protocol
Internet Protocol Internet Protocol Internet Protocol

GAO-06-675

Contents

Letter 1

Results in Brief 2
Background 3
Federal Agencies Are in the Early Stages of Transitioning to IPv6 12
Applications Taking Advantage of IPv6 Features Are Being Planned and
Implemented, but They Are Few 14
Several Challenges Exist for Industry, Government Agencies during the IPv6
Transition 17
Conclusions 21
Recommendation for Executive Action 21
Agency Comments and Our Evaluation 22
Appendix I Objectives, Scope, and Methodology 23
Appendix II GAO Contacts and Staff Acknowledgments 25

Table

Table 1: IPv6 Transition Activities Defined by OMB 10

Figures

Figure 1: Internet Protocol Version 4 Address 3
Figure 2: An Internet Protocol Header Contains IP Addresses for the Source
and Destination of Information Transmitted across the Internet 4
Figure 3: Comparison of IPv4 and IPv6 Address Schema 6
Figure 4: Status of Agencies' Efforts to Address Activities Required by
November 15, 2005 12
Figure 5: Status of Agencies' Efforts to Address Activities Required by
February 2006 13

Abbreviations

CIO chief information officer DOD Department of Defense IETF Internet
Engineering Task Force IP Internet protocol IPv4 Internet protocol version
4 IPv6 Internet protocol version 6 NIST National Institute of Standards
and Technology OMB Office of Management and Budget

This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
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copyright holder may be necessary if you wish to reproduce this material
separately.

United States Government Accountability Office

Washington, DC 20548

June 30, 2006

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

Dear Mr. Chairman:

The Internet protocol (IP) defines how and where information such as text,
voice, music, and video moves across networks. Internet protocol version 4
(IPv4), which is widely used today, may not be able to accommodate the
increasing number of devices that are using the Internet. As a result, IP
version 6 (IPv6) was developed to allow millions more users by increasing
the amount of available IP address space.

In May 2005, we reported on the key characteristics of IPv6 and identified
important planning considerations for federal agencies in transitioning to
IPv6.1 The Office of Management and Budget (OMB) subsequently specified
activities and milestones for federal agencies to follow to transition
their network backbones to IPv6 by June 2008.

As agreed with your office, our objectives were to determine (1) the
status of federal agencies' efforts to transition to IPv6; (2) what
emerging applications are being planned or implemented that take advantage
of IPv6 features; and (3) key challenges industry and government agencies
face as they transition to the new protocol.

To conduct our work, we distributed a structured data collection
instrument to the 24 major agencies2 to determine their efforts in
completing key transition activities. We also obtained and reviewed
supporting documentation, including agencies' IPv6 transition plans, to
validate their responses. To identify emerging applications that are being
planned and challenges organizations are facing in the transition, we
researched and analyzed technical documents, reviewed relevant
publications, and interviewed IPv6 experts in government and industry. We
performed our work from August 2005 through May 2006 in accordance with
generally accepted government auditing standards. Details of our
objectives, scope, and methodology are included in appendix I.

1GAO, Internet Protocol Version 6: Federal Agencies Need to Plan for
Transition and Manage Security Risks, GAO-05-471 (Washington, D.C.: May
2005).

2The 24 major agencies are the Departments of Agriculture, Commerce,
Defense, Education, Energy, Health and Human Services, Homeland Security,
Housing and Urban Development, the Interior, Justice, Labor, State,
Transportation, the Treasury, and Veterans Affairs; and the Environmental
Protection Agency, General Services Administration, National Aeronautics
and Space Administration, National Science Foundation, Nuclear Regulatory
Commission, Office of Personnel Management, Small Business Administration,
Social Security Administration, and U.S. Agency for International
Development.

                                Results in Brief

Federal agencies have taken steps to plan for the transition to IPv6, but
several agencies have not completed key activities. For example, as of
April 2006, almost all of the 24 major agencies have assigned an official
to lead and coordinate the IPv6 transition. However, ten agencies had not
developed IPv6-related policies and enforcement mechanisms. Until agencies
complete key planning activities, their transition efforts risk not being
successful. To help address this, agencies are required to report to OMB
their status in completing these.

Applications that take advantage of IPv6 features are being planned or
implemented both within and outside of the federal government, including
applications to support emergency response, enhance warfighting
capabilities, and facilitate continuity of operations planning. However,
these applications are few, in large part because organizations are still
in the early stages of the transition or because they lack incentives to
use the new protocol.

Transitioning to IPv6 presents several challenges. Significant ones
include managing information security in an environment that is more
vulnerable to threats; incorporating IPv6 features into applications'
business cases to identify new and better ways of meeting mission goals;
and interfacing with partners that may be in various stages of the
transition. Other challenges include maintaining dual IPv4 and IPv6
environments for an extended period of time and implementing standards
required by the use of the new protocol. All of these challenges could
impede progress in transitioning to IPv6 if agencies do not address them
as they proceed with the transition.

To strengthen agencies' IPv6 transition planning efforts, we recommend
that the Director of OMB direct federal agencies to work through the CIO
Council Architecture and Infrastructure Committee and the IPv6 Working
Group, two of the groups that play key roles in transitioning the federal
government to IPv6, to address key challenges that they face as they
proceed with the transition.

Representatives of OMB's Office of Information and Regulatory Affairs and
Office of the General Counsel provided oral comments on a draft of this
report. In these comments, OMB generally agreed with the report results
and described actions being taken to address our recommendation.
Specifically, they stated that IPv6 Working Group subcommittees were
established in May 2006 to begin addressing challenges including security,
testing, and standards, and that agencies were working with these
subcommittees to find solutions to the challenges. OMB also provided
technical corrections, which we incorporated as appropriate.

                                   Background

Since the early 1990s, increasing computer interconnectivity-most notably
in the use of the Internet-has revolutionized the way that our government,
our nation, and much of the world communicate and conduct business. A key
factor in the growth of the Internet has been the protocols-such as the
Internet protocol-that enable the transmission of information across a
global network of networks. Currently, the most widely used version of IP
is version 4 (IPv4).

Internet Protocol Aids in the Transmission of Information across the Internet

The two basic functions of IP include (1) addressing and (2) fragmentation
of data, so that information can move across networks. An IP address
consists of a fixed sequence of numbers. The current IP version most
widely used is IPv4, which uses a 32-bit address format and provides
approximately 4.3 billion unique IP addresses. Figure 1 provides a
conceptual illustration of an IPv4 address.

Figure 1: Internet Protocol Version 4 Address

By providing a numerical description of the location of networked
computers, addresses distinguish one computer from another on the
Internet. In some ways, an IP address is like a physical street address.
For example, in the physical world, if a letter is going to be sent from
one location to another, the contents of the letter must be placed in an
envelope that contains addresses for the sender and receiver. Similarly,
if data is going to be transmitted across the Internet from a source to a
destination, IP addresses must be placed in an IP header. Figure 2
provides a simplified illustration of this concept. In addition to
containing the addresses of sender and receiver, the header also contains
a series of fields that provide information about what is being
transmitted.

Figure 2: An Internet Protocol Header Contains IP Addresses for the Source
and Destination of Information Transmitted across the Internet

The limited address space in IPv4 prompted organizations that need large
amounts of IP addresses to implement technical solutions to compensate. In
1994, the Internet Engineering Task Force (IETF) began reviewing proposals
for a successor to IPv4 that would increase IP address space and simplify
routing. IETF established a working group to be specifically responsible
for developing the specifications for and standardization of IPv6.

Key Characteristics of IPv6 Increase Address Space and Improve Functionality

The key characteristics of IPv6 include

           o  a dramatic increase in IP address space,

           o  a simplified IP header for flexibility and functionality,

           o  improved routing of data,

           o  enhanced mobility features,

           o  easier configuration capabilities,

           o  improved quality of service, and

           o  integrated Internet protocol security.

           These key characteristics of IPv6 offer various enhancements
           relative to IPv4 and are expected to increase Internet services
           and enable advanced Internet communications that could foster new
           software applications for federal agencies.

           IPv6 dramatically increases the amount of IP address space
           available from the approximately 4.3 billion addresses in IPv4 to
           approximately 3.4  * 1038. Because IPv6 uses a 128-bit address
           scheme rather than the 32-bit address scheme used in IPv4, it is
           able to allow many more possible addresses. The increase in the
           actual bits in the address and the immense number of possible
           combinations of numbers make the dramatic number of unique
           addresses a possibility. Figure 3 shows the difference between the
           length of an IPv4 address and that of an IPv6 address.

           Figure 3: Comparison of IPv4 and IPv6 Address Schema

           The IP header contains information such as the source and
           destination addressee, used to transmit data across the Internet.
           Simplifying the IPv6 header promotes flexibility and functionality
           for two reasons. First, the header size is fixed in IPv6. In the
           previous version, header sizes could vary, which could slow
           routing of information. Second, the structure of the header itself
           has been simplified. While the IPv6 addresses are significantly
           larger than in IPv4, the header containing the address and other
           information about the data being transmitted has been simplified.
           Another benefit of the simplified header is its ability to
           accommodate new features, or extensions. For example, the next
           header field provides instructions to the routers transmitting the
           data across the Internet about how to manage the information.

           The improved routing, or movement of information from a source to
           a destination, is more efficient in IPv6 because it incorporates a
           hierarchal addressing structure and has a simplified header. The
           large amount of address space allows organizations with large
           numbers of employees to obtain blocks of contiguous address space.
           Contiguous address space allows organizations to aggregate
           addresses under one prefix for identification on the Internet.
           This structured approach to addressing reduces the amount of
           information Internet routers must maintain and store and promotes
           faster routing of data. In addition, as previously mentioned, IPv6
           has a simplified header because of the elimination of six fields
           from the IPv4 header. The simplified header also contributes to
           faster routing.

           IPv6 improves mobility features by allowing each device (wired or
           wireless) to have a unique IP address independent of its current
           point of attachment to the Internet. As previously discussed, the
           IPv6 address allows computers and other devices to have a static
           interface ID. The interface ID does not change as the device
           transitions among various networks. This enables mobile IPv6 users
           to move from network to network while keeping the same unique IP
           address. The ability to maintain a constant IP address while
           switching networks is cited as a key factor for the success of a
           number of evolving capabilities, such as telephone technologies,
           personal digital assistants, laptop computers, and automobiles.

           IPv6 enhancements can ease difficult and time-consuming aspects of
           network administration tasks in today's IPv4 networks. For
           example, two new configuration enhancements of IPv6 include
           automatic address configuration and neighbor discovery. These
           enhancements may reduce network administration burdens by
           providing the ability to more easily deploy and manage networks.
           IPv6 supports two types of automatic configuration: stateful and
           stateless. Stateful configuration uses the dynamic host
           configuration protocol. This stateful configuration requires
           another computer, such as a server, to reconfigure or assign
           numbers to network devices for routing of information, which is
           similar to how IPv4 handles renumbering. Stateless automatic
           configuration is a new feature in IPv6 and does not require a
           separate dynamic host configuration protocol server as in IPv4.
           Stateless configuration occurs automatically for routers and
           hosts. Another configuration feature-neighbor discovery-enables
           hosts and routers to determine the address of a neighbor or an
           adjacent computer or router. Together, automatic configuration and
           neighbor discovery help support a plug-and-play Internet
           deployment for many devices, such as cell phones, wireless
           devices, and home appliances. These enhancements help reduce the
           administrative burdens of network administrators by allowing the
           IPv6-enabled devices to automatically assign themselves IP
           addresses and find compatible devices with which to communicate.

           IPv6's enhanced quality of service feature can help prioritize the
           delivery of information. The flow label is a new field in the IPv6
           header. This field can contain a label identifying or prioritizing
           a certain packet flow, such as a video stream or a
           videoconference, and allows devices on the same path to read the
           flow label and take appropriate action based on the label. For
           example, IP audio and video services can be enhanced by the data
           in the flow label because it ensures that all packets are sent to
           the appropriate destination without significant delay or
           disruption.

           IP security-a means of authenticating the sender and encrypting
           the transmitted data-is better integrated into IPv6 than it was in
           IPv4. This improved integration, which helps make IP security
           easier to use, can help support broader data protection efforts.
           IP security consists of two header extensions that can be used
           together or separately to improve authentication and
           confidentiality of data being sent via the Internet. The
           authentication extension header provides the receiver with greater
           assurance of who sent the data. The encapsulating security header
           provides confidentiality to messages using encrypted security
           payload extension headers.

           In May 2005, we reported that, with the exception of DOD, the
           majority of the 24 major federal agencies reported that they had
           not yet initiated key planning efforts for IPv6.3 Among other
           things,

           o  21 agencies reported not having plans for transitioning their
           infrastructure and applications to IPv6,

           o  19 agencies reported not having inventoried their IPv6-capable
           equipment, and

           o  22 agencies reported not having estimated costs for the
           transition.

           Although agencies had done little to prepare for the transition to
           IPv6, the transition was already under way for many federal
           agencies because their networks already contained IPv6-capable
           software and equipment. Introducing this equipment into an
           organization allows the organization to have the capability to
           carry IPv6 traffic. Therefore, we recommended that the Director of
           OMB instruct federal agencies to acknowledge that a key step in
           addressing planning and security challenges includes the
           recognition that IPv6-capable software and equipment exists in
           agency networks and that agencies follow this five-step process to
           guide their IPv6 planning and transitioning:

                        1. develop inventories and assess risks,
                        2. create business cases for an IPv6 transition,
                        3. establish policies and enforcement mechanisms,
                        4. determine the costs, and
                        5. identify timelines and methods for the transition.

           We further recommended that agencies take immediate action to
           ensure that their systems were not compromised as a result of not
           effectively recognizing and managing IPv6-capable software and
           hardware.

           Following the issuance of our May 2005 report on IPv6, OMB issued
           a memorandum4 to federal chief information officers (CIO)
           specifying a series of activities and associated deadlines for
           federal agencies to configure their infrastructure (network
           backbones) to carry IPv6 traffic by June 2008. For example, the
           memorandum required agencies to assign an official to lead and
           coordinate IPv6 transition planning efforts; conduct an inventory
           of existing routers, switches, and hardware firewalls; and begin
           an analysis of fiscal and operational impacts and risks of
           transitioning to IPv6 by November 15, 2005. The development of
           policies and enforcement mechanisms, training material, and the
           initiation of activities including maintaining and monitoring
           agency networks were to be documented in a transition plan. This
           transition plan was to be associated with the agencies' enterprise
           architecture and submitted to OMB by February 2006. The impact
           analysis and inventory started in November are to be completed by
           June 30, 2006. Table 1 lists the transition activities and
           deadlines defined in the OMB memorandum.

           Table 1: IPv6 Transition Activities Defined by OMB

           Source: OMB.

           aOMB asked agencies to address these actions to the extent they
           could in a transition plan that was due to OMB by February 2006.

           Collectively, the activities specified in the memorandum address
           four of the five planning steps we recommended agencies take to
           prepare for the IPv6 transition: developing inventories and
           assessing risks, establishing policies and enforcement mechanisms,
           determining transition costs, and identifying timelines and
           methods for the transition. The transition costs are to be
           identified in the impact analysis agencies were to start working
           on in November 2005.

           Federal agencies are to report their progress in completing the
           required activities to OMB. Specifically, according to the IPv6
           Transition Guidance document issued by the CIO Council
           Architecture and Infrastructure Committee5 in February 2006,
           agencies were to submit to OMB a progress report containing the
           following:

           o  status of the second IP devices and technologies inventory;

           o  status of the IPv6 impact analysis;

           o  overall agency progress toward an IPv6 transition;

           o  interim milestones and dates for each of the deadlines
           specified by OMB; and

           o  challenges, issues, or risks agencies are facing with
           completion of the second inventory, impact analysis, or other
           aspects of the agency's transition to IPv6.

           Following this initial submission, agencies are to submit
           quarterly IPv6 status reports to OMB showing progress against
           previously established milestones and updated transition plans.

           In addition to establishing milestones for the IPv6 transition,
           OMB has tasked the CIO Council's Architecture and Infrastructure
           Committee with establishing IPv6 transition guidance for all
           federal agencies. As noted above, the Committee recently issued
           this guidance.6 The Committee is to disseminate the guidance it
           issues and other information to agencies through the agency leads
           and the Council's Web site. OMB also established the IPv6 Working
           Group, which is comprised of the IPv6 lead personnel for all
           federal agencies as well as subject matter experts. The IPv6
           Working Group meets to share lessons learned and provide seminars
           on functional areas relevant to the federal government transition,
           including standards, testing, and training.

           Federal agencies have taken steps to plan for the transition to
           IPv6, but several have not completed key planning activities by
           February 2006 as required by the OMB memorandum. Until agencies
           complete key planning activities, their transition planning
           efforts risk not being successful.

           In response to OMB's memorandum, federal agencies have taken steps
           to plan for the transition to IPv6. Specifically, almost all of
           the 24 major agencies have assigned an official to lead and
           coordinate the IPv6 transition, have conducted an inventory of all
           routers and switches and hardware firewalls, and have begun a
           financial and operational impact analysis, in accordance with the
           requirements of the OMB memorandum. Figure 4 depicts the agencies'
           status as of April 2006 with completion of the OMB activities that
           were due by November 15, 2005.

  IPv6 Dramatically Increases Address Space

  Simplified Header Intended to Promote Flexibility and Functionality

  Improved Routing Offers More Efficient Movement of Information

  Enhanced Mobility Features Provide Seamless Connectivity

  Enhanced Configuration Capabilities Can Ease Aspects of Network Administration

  Enhanced Quality of Service Can Prioritize Information Delivery

  Enhanced Integration of IP Security Can Assist in Data Protection

Previous GAO Work Noted Little Progress in Planning to Transition to IPv6

3 GAO-05-471 .

OMB Specifies Activities, Deadlines for IPv6 Transition

4OMB, Memorandum for Chief Information Officers: Transition Planning for
Internet Protocol Version 6 (IPv6), M-05-22 (August 2005).

Activity                                                                   
Activities due by November 15, 2005                                        
(1) Assign an official to lead and coordinate IPv6 transition planning.    
(2) Complete an inventory of existing routers, switches, and hardware      
firewalls.                                                                 
(3) Begin an inventory of all other existing IP-compliant devices and      
technologies not captured in the first inventory.                          
(4) Begin an impact analysis to determine fiscal and operational impacts   
and risks of transitioning to IPv6.                                        
Activities to be addressed by February 2006a                               
(5) Conduct a requirements analysis to identify current scope of IPv6      
within the agency, current challenges using IPv4, and target requirements. 
(6) Develop a sequencing plan for IPv6 implementation, integrated with the 
agency's enterprise architecture.                                          
(7) Develop IPv6-related policies and enforcement mechanisms.              
(8) Develop IPv6-related training material for stakeholders.               
(9) Develop and implement a test plan for IPv6                             
compatibility/interoperability.                                            
(10) Begin migration to IPv6 using a phased approach.                      
(11) Begin IPv6-related maintenance and monitoring of the agency's         
networks.                                                                  
(12) Begin updating IPv6 requirements and target architecture.             
Activities due by June 30, 2006                                            
(13) Complete an inventory of existing IP-compliant devices and            
technologies not captured in the first inventory.                          
(14) Complete impact analysis of fiscal and operational risks.             
Activities due by June 2008                                                
(15) All agency infrastructures (network backbones) must be using IPv6 and 
agency networks must interface with this infrastructure. Agencies will     
include progress reports on meeting this target date as part of their      
enterprise architecture transition strategy.                               

5Federal CIO Council Architecture and Infrastructure Committee, IPv6
Transition Guidance, version 1.0. The document was issued in draft form in
February 2006 and released in final form in May 2006.

6A representative from OMB's Office of Information and Regulatory Affairs
noted that additional guidance will be issued as deemed necessary.

       Federal Agencies Are in the Early Stages of Transitioning to IPv6

Figure 4: Status of Agencies' Efforts to Address Activities Required by
November 15, 2005

Much remains to be accomplished before agencies will have completed key
planning activities. Specifically, as of February, only 9 of the 23
agencies that reported having begun an impact analysis had developed
preliminary costs for the transition as required as part of this analysis.
These costs ranged from $960,000 to more than $20 million. Agencies stated
a variety of reasons for not being able to develop preliminary costs at
this stage in the transition, including the many unknowns of the
transition, the need to first complete a business case and a requirements
analysis before a cost estimate was developed, and finally, the
anticipation that the funding for the IPv6 transition would be
accomplished using the existing agency budget. Nevertheless, until
agencies can determine all costs associated with the transition as we
previously recommended, they may not be able to adequately budget, among
other things, for the infrastructure and application upgrades, training,
and operation of multiple IP environments that are associated with IPv6
transition efforts.

In addition, as of April 2006, at least one-third of the 24 major agencies
had not completed 7 of the 8 activities that OMB required to be completed
by February. For example,

           o  9 agencies did not conduct a requirements analysis to identify
           the current scope of IPv6 within their agencies, current
           challenges using IPv4, and target requirements;

           o  10 agencies did not develop IPv6 policies and enforcement
           mechanisms, which, as previously noted, we also recommended in our
           prior IPv6 report;7 and

           o  14 agencies did not begin IPv6-related maintenance and
           monitoring of their networks.

           Figure 5 depicts the agencies' status as of April 2006.

Figure 5: Status of Agencies' Efforts to Address Activities Required by
February 2006

In accordance with the OMB memorandum, agencies are to complete two other
activities by June 30, 2006: agencies are to complete an inventory of
existing IP-compliant devices and technology not captured in the first
inventory that was due in November 2005 and complete an impact analysis of
fiscal and operational risks. According to the 24 major agencies, as of
April, all have begun their inventories and all but one has begun to
conduct an impact analysis.

7 GAO-05-471 .

Until agencies complete key planning activities, their transition efforts
risk not being successful. To help address this, as previously noted,
agencies are required to report their progress quarterly to OMB.

      Applications Taking Advantage of IPv6 Features Are Being Planned and
                         Implemented, but They Are Few

Applications that take advantage of IPv6 features are being planned or
implemented both within and outside of the federal government, including
applications to support emergency response and warfighting capabilities.8
However, these applications are few largely because organizations are
still in the early stages of the transition or because they lack
incentives to use the new protocol.

Applications within the Federal Government

Within the federal government, the Department of Defense (DOD) has begun
to develop applications that use IPv6 features to enhance warfighting
capabilities.9 The new protocol is to improve interoperability among many
information and weapons systems, known as the Global Information Grid
(GIG). The IPv6 component of GIG is to facilitate DOD's goal of achieving
network-centric operations by exploiting these key characteristics of
IPv6:

           o  increased address space,

           o  enhanced mobility features,

           o  enhanced configuration features,

           o  enhanced quality of service, and

           o  enhanced security features.

           The increased address space of IPv6 will provide DOD with an
           opportunity to reconstitute its address space architecture to
           better respond to the future proliferation of numerous unmanned
           sensors and mobile assets. For example, although no final
           decisions have been made, DOD could use the increased address
           space to render a three-dimensional map of the globe, or theater
           of combat, using IP addresses as coordinates. This, along with
           other GIG components, would allow tracking movements of, and
           maintaining detailed information on military vehicles and
           individual soldiers in real time.

           Permitting devices to directly communicate on the move is
           essential because DOD wants to use the enhanced mobility and
           automatic configuration to rapidly deploy networks across the
           globe. Further, DOD believes that the return to an end-to-end
           communications security model will allow it to provide greater
           information assurance by, among other things, providing for more
           secure peer-to-peer communications. Finally, DOD is developing
           applications that take advantage of IPv6's improved quality of
           service features to enhance many of its other initiatives, such as
           voice over IP, which is the transmission of voice data over an
           IP-based network instead of the traditional transmission over a
           general purpose circuit-switched network.

           Beyond DOD, applications that other agencies have begun to
           consider that use IPv6 features include

           o  hand-held devices that take advantage of IPv6's mobility
           feature to expedite the delivery of real time data gathered during
           field surveys and questionnaires, on-site investigations of
           industry and the work of revenue officers, security officers,
           auditors, and inspectors;

           o  the use of the IPv6 auto-configuration feature to enhance
           continuity of operations planning and to improve technology
           response time;

           o  the use of the end-to-end security feature of IPv6 to build
           more secure retail and wholesale transactions, including
           securities and commemoratives; and

           o  the use of IPv6's collective characteristics to improve
           existing network management schemas and reduce IT infrastructure
           costs.

           Through research and interviews with experts, we identified
           applications that are being planned or developed outside the
           federal government. They include the following:

           o  One broadband/cable provider is currently planning to migrate
           to IPv6 by 2008 to use the increased address space for better
           management of its cable equipment.

           o  The telecommunications industry is working on improving
           customer services by developing the next generation network. This
           is a new network model that is based on the extensive use of
           Internet protocols-particularly IPv6-to accommodate the diversity
           of applications inherent in emerging broadband technologies. The
           next generation network is characterized, among other things, by a
           shared core network for all access and service types, packet-based
           transport technologies, open standardized interfaces among the
           different network layers (transport, control, and services),
           support for user-adaptable interfaces, and variable access network
           capacity and type. This means that a single infrastructure would
           be used to support multiple services and that users would be able
           to access these services-Web pages, e-mail, movies, or a video
           conference-from one mobile device.

           o  The North American and California IPv6 Task Forces are making
           plans to develop a metropolitan network in Sacramento, California,
           called MetroNet6 using IPv6 to enhance first responder
           technologies. MetroNet6 is an effort to use voice, video,
           graphics, intelligence, medical, and other forms of data through
           multimedia communications for first responders. MetroNet6 would be
           connected over the Internet to the Department of Homeland Security
           for communications updates.

           o  The Japanese government reported making progress in
           implementing several IPv6 applications to improve existing
           operations. According to the Japanese IPv6 Promotion Council,
           Japan plans to have almost all of its telecommunications run on
           IPv6 to support applications that would improve telephone, cable,
           and facility management (e.g., security and electricity) services.
           For example, the use of an IPv6 infrastructure for facility
           management would support applications that minimize energy use in
           industrial buildings.

           While applications that take advantage of IPv6 features exist,
           they are few. Specifically, as of February 2006, of the 24 major
           agencies, only DOD reported that it was developing IPv6
           applications; 4 agencies stated they were considering
           applications; and none reported having implemented any.10 Several
           federal agencies reported that, because they are in the early
           stages of transitioning to IPv6, they have not yet considered how
           IPv6 applications could be used to improve their ability to meet
           their missions. They added that they will begin thinking of this
           once they have a better understanding of the benefits they can
           derive from using the protocol. Our review of technical
           publications and interviews with IPv6 experts did not identify
           many IPv6 applications, either. According to these sources, this
           is in large part because organizations outside the federal
           government currently have little incentive to transition their
           infrastructures and thereby implement applications to take
           advantage of IPv6.

           Transitioning to IPv6 presents several challenges. Significant
           challenges include managing information security in an environment
           that is more vulnerable to threats; incorporating IPv6 features in
           application business cases to identify new and better ways of
           meeting mission goals; and interfacing with partners that may be
           in various stages of the transition. Other challenges include
           maintaining dual IPv4 and IPv6 environments for an extended period
           of time and implementing standards required by the use of the new
           protocol. All of these challenges could impede progress if they
           are not addressed by agencies as they proceed with the transition.

           Federal agencies are required by law to take a risk-based approach
           to managing information security.11 Further, OMB guidance requires
           agencies to indicate whether their security policies include
           special procedures for using emerging technologies including
           IPv6.12 Nevertheless, for federal agencies, as well as for other
           organizations, managing the information security risks of IPv6 is
           a difficult challenge to address for the following reasons:

           o  Using IPv6 features during transition could make agencies more
           vulnerable to security threats. We previously reported that, as
           IPv6-capable software and devices accumulate in agency networks,
           they could be abused by attackers if not managed properly. For
           example, IPv6 is included in most computer operating systems and,
           if it is not enabled by default, it is easy for administrators to
           enable either intentionally or as an unintentional by-product of
           running a program. We previously reported on our tests of two IPv6
           features-automatic configuration and tunneling-and determined
           that, if not properly managed, they could present serious risks to
           federal agencies.13 Accordingly, we recommended that agency heads
           take immediate actions to manage near-term security risks,
           including determining what IPv6 capabilities they may have, and
           initiate steps to ensure that they can control and monitor IPv6
           traffic.

           o  Many of the current security tools are not mature enough to
           protect against breaches in IPv6 security. A recent federal plan
           on cyber security research concluded that the immaturity of
           current security tools (e.g., firewall software and intrusion
           detection systems) results in high levels of risk for breaches of
           security with IPv6.14 The report noted that not enough research
           has been done yet to provide a full suite of security tools and
           support to make IPv6 as secure as IPv4 and to fully assess the
           security implications of widespread IPv6 implementation. Taking
           the immaturity of current security tools into consideration will
           be critical to ensuring organizations' networks are adequately
           secure.

           o  Adopting end-to-end security-based models will become critical
           whereas perimeter-based approaches were previously more widely
           used. End-to-end based networking models lend themselves better to
           the implementation of IPv6 features and mobile technologies such
           as IP phones than the perimeter-based approaches that are more
           widely used. This presents a challenge in that many organizations
           will need to rethink the way they currently secure their networks.
           According to the Department of Commerce, most enterprises
           currently implement security measures at the perimeter of their
           corporate networks using firewalls, etc.15 This perimeter approach
           to protect a network means there are very few devices on an
           enterprise's network that are connected directly to the Internet.
           Most devices are connected to a central location where IP traffic
           travels through firewalls and intrusion detection systems.
           However, with the transition to IPv6 and the proliferation of
           laptop computers, personal directory assistants, and IP phones,
           more and more devices will be connected directly to each other
           without traveling through the enterprise perimeter firewall and
           securing this new topology will require a lot of effort.

           Incorporating IPv6 features into application business cases can be
           challenging because, as discussed earlier, there are currently few
           IPv6 applications available and, therefore, it is difficult for
           agencies to envision how IPv6 features could help them achieve
           their missions more efficiently or effectively. In addition, it
           may be very difficult for people in organizations who have been
           performing functions for a long time to think of how the protocol
           could be used to perform those functions in new ways. Further, the
           business executives who should be involved in determining how to
           incorporate IPv6 into their applications' business cases may be
           reluctant to commit their time to doing this if they do not see
           any immediate business benefit. Nevertheless, incorporating IPv6
           features into applications' business cases as appropriate, as we
           have previously recommended, is important because it could serve
           to maximize the benefits of transitioning to IPv6.

           Interfacing with external partners during the transition can be
           challenging in that a great level of coordination and testing
           among all players involved needs to occur to ensure that
           problems-for example, connection delays and network insecurity-are
           minimized. In addition, benefits that cannot be realized until all
           parties are communicating using IPv6 can be difficult to attain
           because external partners can be in various stages of
           transitioning to IPv6. While operating in dual-stack mode is
           expected to alleviate problems with interfacing, coordinating
           transition plans with external partners and running appropriate
           tests is critical to helping identify and resolve issues and
           ensure that key benefits are realized.

           Other challenges industry and government agencies face as they
           transition include the following:

           o  Dual IPv4 and IPv6 environments will be maintained for an
           extended period of time. Maintaining two network protocols is
           challenging in that it adds complexity to network maintenance and
           associated costs are higher. In addition, it requires skilled
           personnel. Further, it may be difficult to maintain hardware and
           software interoperability across dual environments.

           o  Multi-homing using IPv6 will be a challenge. Multi-homing
           occurs when a host is assigned an IP address from more than one
           Internet service provider providing the host with more than one IP
           address. Multi-homing gives an organization greater reliability
           because, if one provider stops working, it can rely on the other
           provider. However, the method used to implement multi-homing in an
           IPv4 environment creates routing issues in an IPv6 environment.
           Various proposals are being explored to address this challenge
           including a new standard developed by the Internet Engineering
           Task Force.

           o  Implementing the new IPv6 standards will be a challenge because
           (1) IPv6 standards are less mature than IPv4 standards and (2)
           some IPv6 standards are still evolving.

           Because IPv6 standards are less mature than IPv4 standards,
           different vendors may interpret and implement the standards in a
           slightly different way and this could lead to interoperability
           problems. In a recent report, the Alliance for Telecommunications
           Industry Solutions stated that certain tests (known as conformance
           tests) can measure how vendors' products conform to various
           standards, but they also noted that these tests rarely measure
           every nuance of a protocol.16

           With IPv6 standards evolving, it is important for organizations to
           ensure that the IPv6 capabilities they are implementing can be
           upgraded to incorporate newer standards. OMB acknowledged this
           challenge in its IPv6 Transition Guidance and asked that agencies
           consider these challenges in developing their transition plans.

           Federal agencies have taken steps to transition to IPv6, but
           several have not completed key activities, including determining
           transition costs as part of their impact analysis and developing
           IPv6-related policies and enforcement mechanisms. By missing
           deadlines for completing key activities, agencies risk
           jeopardizing their ability to successfully transition their
           infrastructures to IPv6 by the June 2008 target specified by OMB.
           OMB has the means to stay abreast of the status of agencies'
           efforts through quarterly progress reviews these agencies are
           required to submit.

           Applications are being planned or implemented to take advantage of
           IPv6 both within and outside the federal government. However, they
           are few, in large part because organizations are either too early
           in their transition efforts to begin considering them or they
           currently lack the incentive to do so. Nevertheless, with its key
           characteristics, IPv6 holds much promise for organizations as they
           better understand how they can take advantage of the new protocol.

           Transitioning to IPv6 presents several challenges to industry and
           government agencies. Some of the more significant challenges
           include managing information security in an environment that is
           vulnerable to threats, incorporating IPv6 features into
           applications' business cases to identify new and better ways of
           meeting mission goals, and interfacing with partners that are in
           various stages of the transition. Others include maintaining dual
           IPv4 and IPv6 environments for an extended period of time and
           implementing standards required by the use of the new protocol.
           All of these challenges could impede progress if they are not
           addressed by agencies as they proceed with the transition.

           To strengthen agencies' IPv6 transition planning efforts, we
           recommend that the Director of OMB direct federal agencies to work
           through the CIO Council Architecture and Infrastructure Committee
           and the IPv6 Working Group to address challenges agencies face
           such as interfacing with external partners during the transition
           period as they proceed with the transition.

           We have previously made recommendations that agencies take action
           to address security risks, determine transition costs, and develop
           business cases. We are, therefore, not making new recommendations
           on these issues in this report.

           Representatives of OMB's Office of Information and Regulatory
           Affairs and Office of the General Counsel provided oral comments
           on a draft of this report. In these comments, OMB generally agreed
           with the report results and described actions being taken to
           address our recommendation. Specifically, they stated that IPv6
           Working Group subcommittees were established in May 2006 to begin
           addressing challenges including security, testing, and standards,
           and that agencies were working with these committees to find
           solutions to the challenges. OMB also provided technical
           corrections, which we incorporated in the report as appropriate.

           As agreed with your offices, unless you publicly announce its
           contents earlier, we plan no further distribution of this report
           until 30 days from the date of this letter. At that time, we will
           send copies to interested congressional committees and to the
           Director, Office of Management and Budget. Copies of this report
           will be made available to others on request. In addition, the
           report will be available at no charge on GAO's Web site at
           http://www.gao.gov .

           If you have any questions about this report, please contact David
           Powner at (202) 512-9286, or [email protected] ; or Keith Rhodes at
           (202) 512-6412, or [email protected]. Contact points for our Offices
           of Congressional Relations and Public Affairs may be found on the
           last page of this report. Major contributors to this report are
           listed in appendix II.

           Sincerely yours,

           David A. Powner, Director, Information Technology Management
           Issues

           Keith A. Rhodes, Chief Technologist, Director, Center for
           Technology and Engineering

           The objectives of our review were to determine (1) the status of
           federal agencies' efforts to transition to IPv6; (2) what emerging
           applications are being planned or implemented that take advantage
           of IPv6 features; and (3) key challenges industry and government
           agencies face as they transition to the new protocol.

           To address our first objective, we distributed an information
           request to the 24 major agencies in January 2006 to inquire about
           their status in meeting key planning activities, including those
           outlined in our prior report and those laid out in the OMB
           memorandum. All 24 agencies responded to our information request.
           Throughout our engagement, we followed up with additional requests
           for information to stay abreast of agencies' progress in
           completing key planning activities and requested supporting
           documentation, as appropriate, to validate agencies' responses. To
           obtain an updated status of activities required by February, we
           requested and reviewed the transition plans in which these
           activities were to be documented. We obtained transition plans
           from 21 agencies. We followed up with agency officials to confirm
           the results of our analysis and obtained responses from 15 of the
           24 agencies. One agency neither responded to our request to update
           the status of activities required by February nor provided us with
           a transition plan documenting these activities. We therefore
           assumed the agency had not performed the activities.

           To address our second and third objectives, we used the January
           2006 information request mentioned above to determine whether any
           emerging applications were being planned or implemented by federal
           agencies and to understand the challenges these agencies face in
           the transition to IPv6. To learn more about federal agencies' and
           industry applications and challenges in transitioning to IPv6, we
           also researched and analyzed technical documents including
           Juniper's The IPv6 Best Practices World Report Series, the CIO
           Council's Architecture and Infrastructure Committee's IPv6
           Transition Guidance, the Department of Commerce's Technical and
           Economic Assessment of IPv6, and technical documents from agencies
           such as DOD. We interviewed IPv6 experts in government and
           industry, including key members of the telecommunications industry
           and officials from major software and hardware vendors.
           Organizations we interviewed include Comcast, Global Crossing,
           Gartner, AT&T, Internet2, MCI, New York University, Lumeta, and
           Microsoft. To identify which organizations to interview, we relied
           on our review of publications and research and on our interviews
           with IPv6 experts. Finally, we attended a number of IPv6 workshops
           and conferences featuring leaders in the field.

           We performed our work from August 2005 through May 2006 in
           accordance with generally accepted government auditing standards.

           David A. Powner, 202-512-9286 Keith A. Rhodes, 202-512-6412

           In addition to the contact names above, William Carrigg, Camille
           Chaires, Neil Doherty, Nancy Glover, Richard Hung, Sabine Paul,
           Harold Podell, Teresa Smith, and Eric Winter made key
           contributions to this report.

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8We are using the term "application" to refer to software that runs on the
IPv6 infrastructure. We are not including systems software such as
operating systems and other software used to manage computer networks.

9DOD has been planning these applications since 2003.

Applications Outside the Federal Government

Few Applications Are Being Planned and Implemented

Several Challenges Exist for Industry, Government Agencies during the IPv6
                                   Transition

Managing Information Security

10These numbers reflect February 2006 responses to our information request
to the 24 major agencies. When we met with OMB staff at the end of our
review, they indicated that a few more agencies were considering
applications as a result of developing a better understanding of the key
characteristics of the new protocol.

11Federal Information Security Management Act, Title III, E-Government Act
of 2002, Pub. L. 107-347 (Dec. 17, 2002).

12OMB, Memorandum for the Heads of Departments and Agencies: FY 2005
Reporting Instructions for the Federal Information Security Management Act
and Agency Privacy Management, M-05-15 (June 2005).

13 GAO-05-471 .

14Interagency Working Group on Cyber Security and Information Assurance,
Federal Plan for Cyber Security and Information Assurance Research and
Development (Washington, D.C.: April 2006).

Incorporating IPv6 Features into Application Business Cases

Interfacing with External Partners during the Transition Period

15U.S. Department of Commerce, Technical and Economic Assessment of
Internet Protocol Version 6 (IPv6) (Washington, D.C.: January 2006).

Other Challenges

16Alliance for Telecommunications Industry Solutions, Internet Protocol
Version 6 Report and Recommendation (Washington, D.C.: May 2006).

                                  Conclusions

                      Recommendation for Executive Action

                       Agency Comments and Our Evaluation

Appendix I: Objectives, Scope, and Methodology Appendix I: Objectives,
Scope, and Methodology

Appendix II: A Appendix II: GAO Contacts and Staff Acknowledgments

                                  GAO Contacts

                                Acknowledgments

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