Information Technology: DHS's Human Capital Plan Is Largely	 
Consistent with Relevant Guidance, but Improvements and 	 
Implementation Steps Are Still Needed (10-SEP-07, GAO-07-425).	 
                                                                 
In performing its missions, the Department of Homeland Security  
(DHS) relies extensively on information technology (IT).	 
Recognizing this, DHS's fiscal year 2006 appropriations act	 
required its Chief Information Officer (CIO) to submit a report  
to congressional appropriations committees that includes, among  
other things, an IT human capital plan, and the act directs GAO  
to review the report. GAO's review addressed (1) whether the IT  
human capital plan is consistent with federal guidance and	 
associated best practices and (2) the status of the plan's	 
implementation. In performing its review, GAO compared DHS's plan
and supporting documentation with 27 practices in the Human	 
Capital Assessment and Accountability Framework of the Office of 
Personnel Management, and examined plan implementation activities
at three DHS component agencies.				 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-425 					        
    ACCNO:   A75947						        
  TITLE:     Information Technology: DHS's Human Capital Plan Is      
Largely Consistent with Relevant Guidance, but Improvements and  
Implementation Steps Are Still Needed				 
     DATE:   09/10/2007 
  SUBJECT:   Best practices methodology 			 
	     Homeland security					 
	     Human capital					 
	     Human capital management				 
	     Human capital policies				 
	     Information technology				 
	     Interagency relations				 
	     IT human capital					 
	     IT personnel					 
	     Staff utilization					 
	     Strategic planning 				 
	     Program implementation				 
	     GAO High Risk Series				 

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GAO-07-425

   

     * [1]Results in Brief
     * [2]Background

          * [3]Overview of DHS Organizational Structure and Responsibility
          * [4]IT Is Critical to Achieving DHS's Mission
          * [5]Prior GAO Reviews Have Highlighted DHS IT Human Capital Chal
          * [6]GAO and OPM Have Developed Tools to Help Federal Agencies St

     * [7]DHS IT Human Capital Plan and Related Documentation Largely
     * [8]DHS Has Made Limited Progress in Implementing Its IT Human C
     * [9]Conclusions
     * [10]Recommendations for Executive Action
     * [11]Agency Comments and Our Evaluation
     * [12]Appendix I: Objectives, Scope, and Methodology
     * [13]Appendix II: Details on IT Human Capital Plan's Satisfaction
     * [14]Appendix III: Comments from the U.S. Department of Homeland
     * [15]Appendix IV: GAO Contact and Staff Acknowledgments

          * [16]GAO Contact
          * [17]Staff Acknowledgments

               * [18]Order by Mail or Phone

Report to Congressional Committees

United States Government Accountability Office

GAO

September 2007

INFORMATION TECHNOLOGY

DHS's Human Capital Plan Is Largely Consistent with Relevant Guidance, but
Improvements and Implementation Steps Are Still Needed

GAO-07-425

Contents

Letter 1

Results in Brief 3
Background 4
DHS IT Human Capital Plan and Related Documentation Largely Satisfy
Relevant Guidance, but Several Key Practices Have Not Been Fully Addressed
13
DHS Has Made Limited Progress in Implementing Its IT Human Capital Plan 19
Conclusions 23
Recommendations for Executive Action 23
Agency Comments and Our Evaluation 24
Appendix I Objectives, Scope, and Methodology 26
Appendix II Details on IT Human Capital Plan's Satisfaction of Practices
in OPM's Framework 29
Appendix III Comments from the U.S. Department of Homeland Security 39
Appendix IV GAO Contact and Staff Acknowledgments 41

Tables

Table 1: DHS's Principal Organizations and Their Respective Missions 5
Table 2: IT Funding for Fiscal Year 2007 8
Table 3: Summary of Extent to which DHS's IT Human Capital Plan Satisfies
27 Key Practices in OPM's Framework 17

Figure

Figure 1: DHS Organizational Structure (Simplified and Partial) 7

Abbreviations

ACE Automated Commercial Environment
CHCO Chief Human Capital Officer
CIO Chief Information Officer
DHS Department of Homeland Security
IT information technology
OMB Office of Management and Budget
OPM Office of Personnel Management

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wish to reproduce this material separately.

United States Government Accountability Office
Washington, DC 20548

September 10, 2007

The Honorable Robert C. Byrd
Chairman
The Honorable Thad Cochran
Ranking Member
Subcommittee on Homeland Security
Committee on Appropriations
United States Senate

The Honorable David E. Price
Chairman
The Honorable Harold Rogers
Ranking Minority Member
Subcommittee on Homeland Security
Committee on Appropriations
House of Representatives

Information technology (IT) is a critical tool in the Department of
Homeland Security's (DHS) quest to transform 22 diverse and distinct
agencies into 1 cohesive, high-performing department. Because of the
importance of this transformation together with the magnitude of the
associated challenges, we have designated it as a high-risk undertaking.^1
Among other things, DHS's ability to modernize its IT systems and
infrastructure to support this transformation depends on its human
capital, which is an area that we have designated as high risk across the
federal government.^2

Given the enormous role that IT plays in the department's transformation
efforts, DHS's fiscal year 2006 appropriations act required its Chief
Information Officer (CIO) to submit a report to congressional
appropriations committees that includes, among other things, an IT human
capital plan, and the act directs us to review the report.^3 The CIO
submitted this report to the committees in June 2006 and the IT human
capital plan on August 30, 2006.^4 As agreed with your offices, our
objectives in this report were to determine (1) whether the department's
IT human capital plan is consistent with federal guidance and associated
best practices and (2) the status of the plan's implementation.

^1GAO, High-Risk Series: An Update, [19]GAO-07-310 (Washington, D.C.:
January 2007).

^2 [20]GAO-07-310 .

To address our objectives, we reviewed the IT human capital plan and
supporting documentation and evaluated them against the Human Capital
Assessment and Accountability Framework issued by the Office of Personnel
Management (OPM).^5 This framework, which we collaborated with OPM and the
Office of Management and Budget (OMB) in developing, is consistent with
the practices in GAO's strategic human capital management model.^6 We
assessed the plan and supporting documentation against 27 practices in the
framework that are essential to a well-defined and executable plan. In
addition, we reviewed plan implementation activities within the department
CIO and Chief Human Capital Officer (CHCO) organizations and within three
DHS agencies: the Coast Guard, Customs and Border Protection, and the
Federal Emergency Management Agency. Collectively, these agencies account
for about 33 percent of the department's IT budget and about 60 percent of
its IT personnel. We performed our work from October 2006 through July
2007, in accordance with generally accepted government auditing standards.
Appendix I contains more details about our objectives, scope, and
methodology.

^3In addition to the human capital plan, the act also required the CIO to
include in the report the department's enterprise architecture and a
description of its IT capital planning and investment control process. The
results of our reviews of these aspects of DHS's report were provided to
the committees in April and May 2007. See GAO, Information Technology: DHS
Needs to Fully Define and Implement Policies and Procedures for
Effectively Managing Investments, [21]GAO-07-424 (Washington, D.C.: Apr.
27, 2007) and Homeland Security: DHS Enterprise Architecture Continues to
Evolve but Improvements Needed, [22]GAO-07-564 (Washington, D.C.: May 9,
2007).

^4DHS, Empowering the IT Workforce, DHS IT Human Capital Strategic Plan
(2005-2010), Draft Final for Discussion Purposes (Washington, D.C.: May
2005).

^5OPM, Human Capital Assessment and Accountability Framework (Washington,
D.C.: October 2002).

^6See, for example, GAO, A Model of Strategic Human Capital Management
(Exposure Draft), [23]GAO-02-373SP (Washington, D.C.: March 2002).

Results in Brief

DHS's IT human capital plan is largely consistent with federal guidance
and associated best practices. Of 27 practices in OPM's human capital
framework, DHS's plan and related documentation fully address 15 practices
and partially address 12. For example, the plan and supporting
documentation provide for developing an inventory of existing staff
skills, identifying future skills needed, and determining whether there
are gaps between the two and how such gaps will be filled. In addition,
they provide for involving key stakeholders--such as the CIO, the CHCO,
and component agency CIOs and human capital directors--in carrying out
workforce planning activities. According to DHS CIO officials, these
practices were addressed because the OPM framework was used as a guide in
developing the plan. Nevertheless, important elements of several key
practices have not been addressed because of other priorities, according
to these officials. In particular, the plan and supporting documents do
not include milestones for when most defined activities are to be
completed, and they do not define detailed roles and responsibilities for
carrying out planned activities. These missing elements are important
because they help to ensure effective implementation of planned
activities.

Overall, DHS's progress in implementing its IT human capital plan has been
limited. Although the plan and supporting documentation do not explicitly
assign detailed roles and responsibilities for executing planned
activities, the DHS CIO and the DHS CHCO have collaborated in executing
some steps in the plan. For example, they have performed a gap analysis
between existing and future skill needs and have begun examining
strategies for reducing the gaps. However, they have yet to take other key
steps. For example, while DHS is collecting information on the number of
increasing, decreasing, and new mission-critical occupations, it is not
identifying and analyzing year-to-year changes and trends to determine
whether recruitment and retention strategies need to be updated to meet
current organizational needs. Moreover, not all component agencies have
begun to implement the plan. In particular, CIO and human capital
officials with the Coast Guard, Customs and Border Protection, and the
Federal Emergency Management Agency told us that although they were aware
of the plan, they were in large part not aware of a requirement to
implement it. Nevertheless, these officials stated that they have been
taking actions consistent with some aspects of the plan as part of their
quarterly reporting to OMB on such issues as progress in filling
mission-critical positions and delivering IT training. Department and
component agency officials attributed the status of the plan's
implementation to competing priorities, such as consolidating data
centers, and ambiguity surrounding plan implementation roles and
responsibilities.

Until DHS has a fully defined IT human capital plan that, among other
things, clearly assigns roles and responsibilities and ensures stakeholder
commitment and accountability for implementation, it runs the continued
risk of not having the people it needs to effectively and efficiently
leverage IT in support of organization transformation. Accordingly, we are
recommending that the Secretary of Homeland Security make development and
implementation of a comprehensive IT human capital plan an imperative, and
ensure that (1) the plan fully satisfies relevant federal guidance and
related best practices, (2) roles and responsibilities for implementing
the plan are clearly defined and understood, (3) resources needed to
effectively and efficiently implement the plan are made available, and (4)
progress in implementing the plan is regularly measured.

In its written comments on a draft of this report, DHS agreed with our
recommendations, adding that the state of its IT human capital efforts
varies widely across the department, and acknowledging that these efforts
have been a lower priority relative to other IT imperatives. Nevertheless,
it stated that it will dedicate the resources needed to ensure that it has
a highly skilled and effective IT workforce. In this regard, it provided
information that it said would update and clarify the status of its more
recent IT human capital efforts. While our report already recognized most
of this information, we have incorporated or otherwise recognized new
information in our report as appropriate.

Background

In March 2003, DHS began operations and set about the daunting task of
merging 22 separate and autonomous federal agencies with homeland
security-related missions under the centralized leadership of a single
department. In doing so, DHS assumed operational control of about 209,000
civilian and military positions from these agencies. As we have previously
reported,^7 the creation and transformation of DHS is critically important
and poses significant management and leadership challenges, and failure to
address these challenges could have serious consequences for our national
security. Consequently, in 2003, we first designated the department's
implementation and transformation as high risk, and we continue to do so
today.^8

7 [24]GAO-07-310 .

IT is a critical tool in DHS's quest to transform itself and carry out the
department's critical missions on a day-to-day basis. For fiscal year 2008
alone, the department is requesting almost $4 billion in IT budgetary
authority.^9 The department's ability to effectively and efficiently
invest these funds and deliver IT systems and infrastructure that perform
as intended depends in large part on the capabilities of its IT human
capital. As we have reported, DHS and the other federal agencies
historically have been challenged in their ability to strategically manage
human capital. For this reason, we first designated strategic human
capital management as a governmentwide high-risk area in 2001, and we
continue to do so today.^10

Overview of DHS Organizational Structure and Responsibility for IT Human Capital
Management

To accomplish its mission, the department is organized into various
agencies and directorates, each of which is responsible for specific
homeland security missions and for coordinating related efforts with other
DHS organizations, as well as external entities. Table 1 shows DHS's
principal organizations and their respective missions.

Table 1: DHS's Principal Organizations and Their Respective Missions

Principal organizations  Missions                                          
Citizenship and          Administers immigration and naturalization        
Immigration Services     adjudication functions and establishes            
                            immigration services policies and priorities.     
Coast Guard              Protects the public, the environment, and U.S.    
                            economic interests in the nation's ports and      
                            waterways, along the coast, on international      
                            waters, and in any maritime region as required to 
                            support national security.                        
Customs and Border       Secures the nation's borders in order to prevent  
Protection               unauthorized persons and goods from entering the  
                            United States, while facilitating the flow of     
                            legitimate trade and travel.                      
Federal Emergency        Prepares the nation for hazards, manages federal  
Management Agency        response and recovery efforts following any       
                            national incident, and administers the National   
                            Flood Insurance Program.                          
Immigration and Customs  Investigates, identifies, and addresses           
Enforcement              vulnerabilities in the nation's border, economic, 
                            transportation, and infrastructure security.      
Management Directorate   Manages department budgets and appropriations,    
                            expenditure of funds, accounting and finance,     
                            procurement, human resources, IT systems,         
                            facilities and equipment, and the identification  
                            and tracking of performance measurements. This    
                            directorate includes the Offices of the CHCO,     
                            Chief Financial Officer, and the CIO.             
National Protection and  Supports the department's homeland security       
Programs Directorate     risk-reduction mission through an integrated      
                            approach that encompasses both physical and       
                            virtual threats and their associated human        
                            elements. This directorate includes the Offices   
                            of Cyber Security and Communications and          
                            Infrastructure Protection.                        
Science and Technology   Conducts research and development for the         
Directorate              department and provides federal, state, and local 
                            officials with the technology and capabilities to 
                            protect the homeland.                             
Secret Service           Protects the President and other high-level       
                            officials and investigates counterfeiting and     
                            other financial crimes (including financial       
                            institution fraud, identity theft, and computer   
                            fraud) and computer-based attacks on the nation's 
                            financial, banking, and telecommunications        
                            infrastructure.                                   
Transportation Security  Protects the nation's transportation systems to   
Administration           ensure freedom of movement for people and         
                            commerce.                                         

Source: GAO analysis of DHS data.

Note: This table does not show the organizations that fall under each of
the directorates. It also does not show all organizations that report
directly to the DHS Secretary and Deputy Secretary, such as Executive
Secretary, Legislative and Intergovernmental Affairs, Public Affairs,
Chief of Staff, Inspector General, and General Counsel.

^8GAO, High-Risk Series: An Update, [25]GAO-03-119 (Washington, D.C.:
January 2003); High-Risk Series: An Update, [26]GAO-05-207 (Washington,
D.C.: January 2005); and [27]GAO-07-310 .

^9OMB, Fiscal Year 2008 Report on Information Technology Budgets
(Washington, D.C.: Feb. 6, 2007).

^10GAO, High-Risk Series: An Update, [28]GAO-01-263 (Washington, D.C.:
January 2001), and [29]GAO-07-310 .

Within DHS, responsibility for IT human capital management resides with
the Management Directorate--specifically, the Offices of the CIO and the
CHCO--and with component agency CIO and human capital offices. More
specifically, the management directive of the DHS Office of the CIO's
states that the office is responsible for leveraging the best available
technologies and applying proven IT management and human capital practices
to provide shared services, coordinate acquisition strategies, maintain an
enterprise architecture, and advocate and enable business transformation,
among other things. To assist in managing these matters, DHS established
the DHS CIO Council made up of the CIOs from each of DHS's component
organizations. The council identified eight priorities, including IT human
capital, and for each priority, it assigned an executive sponsor that is
responsible for overseeing the department's efforts in that area. The
council also established the IT Human Capital Resource Center (formerly
called the IT Human Capital Center of Excellence) to support the council
and the executive sponsor responsible for IT human capital. In short, the
center is responsible for setting a DHS-wide vision and strategy for IT
human capital and the functions that IT staff perform. The center is
staffed by the component CIO organizations and, among other things, is
responsible for coordinating the implementation of the department's IT
human capital initiatives. Figure 1 shows a simplified and partial DHS
organizational structure, including the CIO IT human capital-related
entities.

Figure 1: DHS Organizational Structure (Simplified and Partial)

According to the DHS overall strategic human capital plan, which covers IT
and non-IT personnel, the Office of the CHCO is responsible for
implementing initiatives to achieve strategic human capital goals in
support of the department's mission.^11 With regard to IT, this includes
planning and managing human capital to meet current and future mission
needs, recruiting a high-quality workforce, developing a strong and
capable workforce, motivating and retaining high performers, and fostering
a culture of continuous learning and improvement. It also includes
applying human capital best practices in carrying out these
responsibilities.

^11DHS, Human Capital Strategic Plan FY 2004-2008 (Washington, D.C.).

Each of the department's component agencies has its own CIO and human
capital director to, among other things, manage the implementation of
their respective IT human capital initiatives. According to DHS, this
includes recruiting staff to close competency and skill gaps, coordinating
and delivering mission-essential training, analyzing workforce data, and
aligning component human capital plans with the department human capital
plans to achieve agency and department missions.

IT Is Critical to Achieving DHS's Mission

To accomplish its mission, DHS relies extensively on IT. For example, in
fiscal year 2007, about $4.16 billion dollars in funding was requested to
support 278 major IT programs. Table 2 shows the fiscal year 2007 IT
funding for key DHS components.

Table 2: IT Funding for Fiscal Year 2007

Dollars in millions                             
DHS agencies and directorates           Funding 
Citizenship and Immigration Services     $570.3 
Coast Guard                               196.7 
Customs and Border Protection             546.4 
Federal Emergency Management Agency        77.1 
Immigration and Customs Enforcement       134.0 
Management Directorate                  1,576.0 
Preparedness Directorate^a                213.5 
Science and Technology Directorate         34.1 
Secret Service                              3.8 
Transportation Security Administration    356.4 
US-VISIT^b                                407.4 
Other DHS components                       45.1 
Total                                  $4,160.8 

Source: GAO analysis of DHS data.

aOn April 1, 2007, this directorate was replaced by the National
Protection and Programs Directorate.

bOn April 1, 2007, US-VISIT became part of the National Protection and
Programs Directorate.

To manage the use of these funds and carry out these programs, the
department reports that it employs about 2,600 IT personnel. While these
personnel represent about 1 percent of the department's total workforce,
they nonetheless perform critical mission functions. Specifically, IT
personnel develop, manage, and operate mission-critical systems that are
intended to unify the department under a common IT infrastructure and to
facilitate agencies' ability to analyze intelligence to identify threats,
guard U.S. borders and airports, protect critical infrastructure,
coordinate national responses to emergencies, and implement other security
measures. Moreover, IT staff track and oversee the efforts of a sizable
workforce of support contractors.

Prior GAO Reviews Have Highlighted DHS IT Human Capital Challenges and Called
for a More Strategic Approach to Addressing Them

According to DHS, the need to successfully manage its IT human capital is
essential to effectively and efficiently leveraging technology in
achieving the department's mission. This need is compounded by the fact
that the department faces major near-term IT human capital challenges. For
example, DHS estimates that between 2005 and 2010, approximately 35
percent of its IT workforce will be eligible for retirement. Moreover, it
reports that in light of the continued growth in demand of experienced IT
professionals and the high rate of turnover experienced thus far, the
department faces significant risk of critical skill shortages, which could
hamper its mission imperatives.

During the last 3 years, we have reported on the importance of DHS
adopting a strategic approach to addressing its IT human capital
challenges. For example, in August 2004, we reported^12 that DHS had begun
strategic planning for IT human capital at the headquarters level, but it
had not yet systematically gathered baseline data about its existing
workforce. We also reported on CIO staffing concerns and slow progress in
this area. Accordingly, we recommended that the department analyze whether
it had appropriately allocated and deployed IT staff with the relevant
skills to obtain its institutional and program-related goals. In response,
the DHS CIO approved funding for the IT Human Capital Resource Center in
July 2004. Among other things, the center subsequently began work to
complete an IT human capital plan. Consistent with our recommendation, the
center was to ensure that the completed plan provided for an analysis of
IT workforce skill sets. In May 2005, the DHS CIO issued a draft version
of the IT human capital plan.^13 This draft version was sent to the Senate
and House Appropriations Committees on August 30, 2006, as part of the
CIO's report pursuant to requirements in DHS's fiscal year 2006
appropriations act. According to the CIO Council senior executive leading
the effort to develop this plan, it was developed in partnership with the
DHS CHCO's office and intended to direct the department's IT human capital
efforts.

^12GAO, Department of Homeland Security: Formidable Information and
Technology Management Challenge Requires Institutional Approach,
[30]GAO-04-702 (Washington, D.C.: Aug. 27, 2004).

^13DHS, Empowering the IT Workforce (2005-2010).

In March 2006, we testified^14 on a number of IT human capital and other
management challenges at DHS. We noted that DHS had undertaken a
departmentwide human capital initiative, MAX^HR, which was to provide
greater flexibility and accountability in the way employees are paid,
developed, evaluated, afforded due process, and represented by labor
organizations. Part of this initiative involved the development of
departmentwide workforce competencies. We testified that the department
had intended to implement MAX^HR in the summer of 2005 but had encountered
delays. More recently, DHS officials stated that MAX^HR had been canceled
and is to be replaced by another initiative called the Human Capital
Operational Plan. In May 2007, we reported^15 that while DHS continues
work to develop and implement departmentwide human capital initiatives,
its overall progress in managing its IT and non-IT human capital had been
limited.

Since 2002, we have also reported on human capital management weaknesses
associated with key DHS IT programs. For example:

           o In September 2005, we reported^16 that the program office for
           the Atlas program^17 was not adequately staffed. Accordingly, we
           recommended that the Atlas program conduct a staffing needs
           assessment to determine the positions and the level of staffing
           needed for all Atlas projects, and that it develop a human capital
           strategy for meeting its staffing needs. DHS agreed with our
           recommendations and has since completed a needs assessment,
           developed a human capital strategy, and used it to staff the
           program office and projects.

^14GAO, Homeland Security: Progress Continues, but Challenges Remain on
Department's Management of Information Technology, [40]GAO-06-598T
(Washington, D.C.: Mar. 29, 2006).

^15GAO, Homeland Security: Management and Programmatic Challenges Facing
the Department of Homeland Security, [41]GAO-07-833T (Washington, D.C.:
May 10, 2007).

^16GAO, Information Technology: Management Improvements Needed on
Immigration and Customs Enforcement's Infrastructure Modernization
Program, [42]GAO-05-805 (Washington, D.C.: Sept. 7, 2005).

^17Atlas is an Immigration and Customs Enforcement program to modernize IT
infrastructure.

           o In February 2006, we reported^18 that the US-VISIT program^19
           had developed a human capital strategy, as we had recommended^20 2
           years earlier, and had begun implementing it. However, we also
           reported that several activities in the plan had not been
           implemented, such as assessing the extent of current employees'
           competency gaps and developing a listing of competency-based
           training courses. To address this shortfall, among other things,
           the program recently developed a new human capital plan. We have
           not yet reviewed the new plan.

           o In May 2006, we reported^21 that the Automated Commercial
           Environment (ACE) program^22 had yet to develop and implement a
           human capital management strategy, as we had recommended several
           years earlier. Instead, program officials told us that they were
           following a less formal approach to bolstering ACE's workforce.
           Accordingly, we recommended that the department report to its
           appropriations committees on its strategy for managing ACE human
           capital needs. DHS agreed with our recommendation and has since
           been working to develop a strategy.
			  
^18GAO, Homeland Security: Recommendations to Improve Management of Key
Border Security Program Need to Be Implemented, [43]GAO-06-296
(Washington, D.C.: Feb. 14, 2006).

^19US-VISIT (United States-Visitor and Immigrant Status Indicator
Technology) is a DHS program to collect, maintain, and share information,
including biometric identifiers, on foreign nationals entering and exiting
the United States. US-VISIT uses these identifiers (digital fingerscans
and photographs) to screen persons against watch lists and to verify that
a visitor is the person who was issued a visa or other travel document.
Visitors are also to confirm their departure by having their visas or
passports scanned and undergoing fingerscanning at selected air and sea
ports of entry.

^20GAO, Homeland Security: First Phase of Visitor and Immigration Status
Program Operating, but Improvements Needed, [44]GAO-04-586 (Washington,
D.C.: May 11, 2004); and Homeland Security: Risks Facing Key Border and
Transportation Security Program Need to Be Addressed, [45]GAO-03-1083
(Washington, D.C.: Sept. 19, 2003).

^21GAO, Information Technology: Customs Has Made Progress on Automated
Commercial Environment System, but It Faces Long-Standing Management
Challenges and New Risks, [46]GAO-06-580 (Washington, D.C.: May 31, 2006).

^22ACE is a Customs and Border Protection program to modernize trade
processing systems and support border security. Its goals include
enhancing analysis and information sharing with other government agencies;
providing an integrated, fully automated information system for commercial
import and export data; and reducing costs for the government and the
trade community though streamlining.

           GAO and OPM Have Developed Tools to Help Federal Agencies
			  Strategically Manage Human Capital
           
			  A strategic approach to human capital management includes viewing
           people as assets whose value to an organization can be enhanced by
           investing in them. Such an approach enables organizations to
           effectively use their people and determine how well they integrate
           human capital considerations into daily decision making and
           planning for mission results. It also helps organizations remain
           aware of and be prepared for current and future needs as an
           organization, ensuring that they have the knowledge, skills, and
           abilities needed to pursue their missions.

           On the basis of our experience with leading organizations, we
           issued a model in 2002 for strategic human capital management.^23
           The model is built around four cornerstones: (1) leadership; (2)
           strategic human capital planning; (3) acquiring, developing, and
           retaining talent; and (4) results-oriented organizational
           cultures. We also issued a set of key practices in 2003 for
           effective strategic human capital management.^24 These practices
           are generic, applying to any organization or component, such as an
           agency's IT organization.

           Since then, OPM, in conjunction with OMB and us, issued a
           strategic human capital framework--called the Human Capital
           Assessment and Accountability Framework--to provide a consistent,
           comprehensive representation of human capital management to guide
           federal agencies.^25 Consistent with our 2002 model, OPM's
           framework provides six standards, along with associated indicators
           (practices) for achieving success. The six standards for success
           and related definitions are as follows:

           o Strategic alignment. The organization's human capital strategy
           is aligned with mission, goals, and organizational objectives and
           integrated into its strategic plans, performance plans, and
           budgets.
           o Workforce planning and deployment. Among other things, the
           organization strategically uses staff in order to achieve mission
           goals in the most efficient ways.
           o Leadership and knowledge management. The organization's leaders
           and managers effectively manage people, ensure continuity of
           leadership, and sustain a learning environment that drives
           continuous improvement in performance.

^23 [47]GAO-02-373SP .

^24GAO, Human Capital: Key Principles for Effective Strategic Workforce
Planning, [48]GAO-04-39 (Washington, D.C.: Dec. 11, 2003).

^25OPM, Human Capital Assessment and Accountability Framework.

           o Results-oriented performance culture. The organization has a
           diverse, results-oriented, high-performance workforce and a
           performance management system that effectively differentiates
           between high and low performance and links individual, team, or
           unit performance to organizational goals and desired results.
           o Talent management. The organization makes progress toward
           closing gaps or making up deficiencies in most mission-critical
           skills, knowledge, and competencies.
           o Accountability. The organization's human capital decisions are
           guided by a data-driven, results-oriented planning and
           accountability system.

           Our recent work has shown that DHS and other federal agencies,
           such as the Securities and Exchange Commission, have begun to use
           OPM's framework as the basis for preparing strategic IT and other
           human capital plans.^26 According to DHS CIO officials, they used
           the OPM framework in developing the IT human capital plan that
           they included in the August 2006 report to Congress.
			  
			  DHS IT Human Capital Plan and Related Documentation Largely Satisfy
			  Relevant Guidance, but Several Key Practices Have Not Been Fully
			  Addressed

           DHS has developed an IT human capital plan that is largely
           consistent with OPM guidance. Specifically, of 27 key practices in
           OPM's framework, the department's plan and related documentation
           fully address 15 practices and partially address the other 12,
           meaning that these 12 are missing elements that are essential to
           having a well-defined and executable plan. DHS officials
           responsible for developing the plan attributed the missing
           elements to, among other things, the department's decision to
           focus its resources on other IT priorities. These officials also
           stated that until the missing elements are fully addressed, it is
           unlikely that the plan will be effectively and efficiently
           implemented, which in turn will continue to put DHS at risk of not
           having sufficient people with the right knowledge, skills, and
           abilities to manage and deliver its mission-critical IT systems.

           Examples of the key practices that DHS has fully and partially
           addressed in its IT human capital plan and related documentation,
           organized according to OPM's six standards for success, are given
           in the following text. Also, table 3 is a summary of the DHS
           plan's satisfaction of all 27 key practices. Appendix II contains
           our full analysis of the plan's satisfaction of these 27
           practices. Both the summary and full analysis contain examples to
           demonstrate full or partial satisfaction of the practices. They do
           not contain all examples of DHS's accomplishments or limitations
           to a given key practice.

^26See, for example, GAO, Securities and Exchange Commission: Some
Progress Made on Strategic Human Capital Management, [49]GAO-06-86
(Washington, D.C.: Jan. 10, 2006).

           o Strategic alignment. DHS's plan and related documentation
           satisfy a number of strategic alignment practices. For example,
           they specify human capital goals for the IT organization and
           provide for linking them to departmental human capital goals. More
           specifically, the plan identifies such IT human capital goals as
           meeting current and future mission needs, recruiting a
           high-quality IT workforce, and motivating and retaining high
           performers. The plan further states that IT human capital programs
           and initiatives should produce performance outcomes that support
           the overall DHS strategic goal of operational excellence. In
           addition, the plan calls for involving key stakeholders--such as
           the CIO, the CHCO, and their component agency counterparts--in
           carrying out a range of workforce planning activities, such as
           conducting a workforce analysis, developing an inventory of
           current staff skills, and identifying the future skills that are
           needed for mission-critical positions. By addressing these key
           practices, the plan helps set the overall direction and tone for
           strategic management of IT human capital and lays a foundation for
           demonstrating management commitment and promoting buy-in across
           the organization.

           However, the plan and related documentation do not fully satisfy
           other key practices. For example, they do not include specific
           milestones for when most defined activities and steps are to be
           completed. This is a serious limitation because milestones help to
           ensure that resources needed to execute plans are allocated, and
           they provide a basis for measuring progress. In addition, although
           the plan provides for involving key stakeholders, it does not
           assign stakeholders responsibility and accountability for specific
           activities. Without fully addressing these practices, the plan
           does not provide an adequate basis for promoting accountability
           for results, and thus ensuring that the plan will be effectively
           implemented.

           o Workforce planning and deployment. The plan and related
           documentation satisfy a number of key practices in this standards
           area, including provision for incentives for new recruits,
           training for existing staff, and an exchange program to draw on
           private sector personnel with necessary skills. This is important
           because such practices are essential ingredients to acquiring,
           training, and deploying an effective workforce. However, the plan
           does not provide for regular collection and analysis of data on
           promotions, conversions, separations, and retirements to show an
           understanding of trends and related indicators of performance.
           Without this information, DHS will be limited in its ability to
           know whether the techniques being employed are effective, and thus
           performance results and accountability goals are being met.
           o Leadership and knowledge management. DHS's plan and supporting
           documentation provide for a number of leadership and knowledge
           management practices. For example, DHS planning documents (e.g.,
           DHS Succession Management Plan FY 2006-2009)^27 supporting the IT
           human capital plan describe and encourage leadership development
           across all DHS components through application of the department's
           Leadership Competency Framework and succession approach to
           workforce planning efforts. The plan also identifies succession
           planning goals and objectives, implementation strategies, and
           program evaluation critical success factors to achieve expected
           leadership outcomes. These efforts are important because they show
           how the department and components plan for and minimize the impact
           of changes to its leadership team arising from retirements and
           separations.

           However, the plan does not address how these activities are to be
           linked to and reflected in department annual performance plans and
           budgets. Having performance plans and budgets that address the IT
           human capital goals is vital to ensuring that the plan is properly
           funded to ensure implementation.

           o Results-oriented performance culture. DHS's plan and supporting
           documentation satisfy key practice elements under this standards
           area, such as identifying outcome-based human capital goals for
           its IT workforce and linking these goals to departmental strategic
           plans. However, the plan does not address linking each work unit's
           efforts and performance to these goals. Linking the work units to
           goals is important because it provides a framework for setting
           performance expectations, determining whether expectations are
           met, and establishing accountability, each of which is critical to
           effective and efficient plan implementation.
           o Talent management. DHS's plan addresses important practices
           related to talent management, including documenting
           mission-critical occupations, strategizing how to reduce
           competency gaps between the workforce's current skills and those
           needed to achieve mission goals, and tracking efforts to implement
           strategies. In particular, it provides for a monthly forum hosted
           by the IT Human Capital Resource Center for DHS components to
           share ideas and strategies for recruitment, retention, and
           training of their workforces. These initiatives are important
           because they provide a disciplined and systematic approach to
           identifying and reducing organizational skill shortfalls, and thus
           contribute to better ensuring that DHS has the right people with
           the right skills. However, neither the plan nor supporting
           documents fully provide for measuring whether its recruitment and
           training efforts are closing competency gaps. Such performance
           measurement is vital to effective plan implementation because it
           provides feedback on the effectiveness of efforts and the need for
           corrective action.
			  
^27DHS, DHS Succession Management Plan FY 2006-2009, draft.

           o Accountability. The plan addresses the key practice for
           establishing and using applicable merit principles and standards
           in appraising IT staff performance, and for establishing a process
           for employee grievances to be considered and addressed. However,
           the plan does not fully address other accountability-related
           practices. For example, it does not provide for proactively
           identifying where the department is at risk with regard to
           attaining its IT human capital goals and developing initiatives to
           mitigate any high risks. This is a significant omission because
           proactively managing risks is a proven means for avoiding problems
           before they can occur.

           According to DHS officials responsible for developing the plan,
           the 12 key practices were not fully addressed for several reasons.
           Specifically, they stated that uncertainty surrounding the source
           of resources for implementing the plan led to a lack of a clear
           definition of stakeholder roles and responsibilities, which in
           turn made setting realistic milestones impractical. They added
           that a number of other IT priorities that were competing for
           resources, such as consolidation of data centers, also contributed
           to the 12 practices not being addressed, while other omissions
           were purely an unintended oversight, such as not addressing
           central management of risks. According to the officials, the next
           version of the plan, which is tentatively scheduled to be released
           in the second quarter of fiscal year 2008 based on the assumption
           that resources are made available, is to address all of these
           omissions.

           Without a comprehensive IT human capital plan, DHS does not have
           an effective means for ensuring that it has the right people in
           the right place at the right time to achieve the department's
           mission-related IT goals. The department has acknowledged this
           risk and estimates there is currently a medium-to-high level of
           risk of not meeting DHS's mission due to personnel and competency
           and skill shortages.^28

           Table 3: Summary of Extent to which DHS's IT Human Capital Plan
           Satisfies 27 Key Practices in OPM's Framework
			  
                                                                Satisfied^a
Standard               Practice                            Fully Partially 
Strategic alignment    Key stakeholders participate in                     
                          the development and revision of                     
                          the agency's strategic plan and                     
                          facilitate workforce planning and                   
                          analysis efforts.                                   
                          The organization defines                            
                          successful achievement of its                       
                          mission in terms of valid and                       
                          reliable data, including both                       
                          long- and short-term human capital                  
                          performance goals.                                  
                          Trends in mission-critical                          
                          occupations are analyzed in terms                   
                          of suggested factors in order to                    
                          continually adjust the agency's                     
                          recruitment and retention strategy                  
                          to its current state of need.                       
                          An integrated human capital                         
                          planning process is in use,                         
                          including representatives from the                  
                          agency/unit human capital team,                     
                          the primary IT human capital                        
                          officer, and senior leaders and                     
                          managers from mission-specific                      
                          program areas.                                      
                          Mission-critical occupations and                    
                          competencies are identified in the                  
                          agency's strategic plan and/or                      
                          performance plan, and its                           
                          strategic human capital plan.                       
                          The strategic human capital plan                    
                          sets human capital progress                         
                          milestones and identifies those                     
                          responsible for meeting them.                       
                          Key human capital leaders and                       
                          agency stakeholders utilize                         
                          collaborative mechanisms/forums                     
                          that provide a venue for                            
                          consistent dialogue in the                          
                          planning process (e.g., team                        
                          members of review boards, working                   
                          groups, or executive off-sites).                    
                          The agency has a documented change                  
                          management process that identifies                  
                          necessary human capital practices                   
                          to achieve human capital                            
                          objectives.                                         
                          Studies indicate which occupations                  
                          and competencies are essential to                   
                          achieving the agency's strategic                    
                          goals.                                              
                          Line managers and key staff,                        
                          including human resources,                          
                          consider and prepare for possible                   
                          workforce changes in areas such as                  
                          mission/goals, technology, program                  
                          additions or deletions, functions,                  
                          and outsourcing initiatives.                        
                          Turnover indicators are monitored                   
                          regularly.                                          
                          A workforce analysis process is                     
                          used on a regular basis for                         
                          assessment and planning, and to                     
                          drive human capital decisions.                      
                          The agency has a clearly defined                    
                          strategy and plan to facilitate                     
                          human capital changes.                              
Workforce planning and Staffing data showing trends in                     
deployment             appointments, promotions,                           
                          conversions, separations, and                       
                          retirements are analyzed                            
                          regularly, and management                           
                          decisions regarding workforce                       
                          deployment are based on documented                  
                          data.                                               
                          The agency uses multifaceted                        
                          techniques to close competency                      
                          gaps within the organization                        
                          (e.g., strategic recruitment,                       
                          midcareer hiring, and training).                    
Leadership and         Leadership development and                          
knowledge management   succession needs are considered,                    
                          reflected in human capital plans                    
                          and strategies, and addressed                       
                          through related human capital                       
                          management efforts/programs.                        
                          The agency has a strategy and plan                  
                          for communication of human capital                  
                          changes and progress, and to                        
                          capture employee feedback related                   
                          to human capital practices and                      
                          needs.                                              
                          Annual performance plans, budgets,                  
                          and performance reports document                    
                          plans for and progress toward                       
                          human capital goals.                                
Results-oriented       Work units have documented                          
performance culture    performance goals and objectives                    
                          linked to the agency strategic                      
                          plan and performance plan.                          
Talent management      The agency's strategic planning                     
                          process documents and tracks                        
                          mission-critical occupations and                    
                          competency gap reduction efforts.                   
                          Strategies are developed and                        
                          implemented for reducing                            
                          competency gaps through training,                   
                          development, or alternative                         
                          sources.                                            
                          Staffing, training, and                             
                          performance data indicate success                   
                          in closing competency gaps.                         
                          Recruitment strategies are created                  
                          to maintain mission-critical                        
                          competencies at the desired level                   
                          using business forecasting and                      
                          workforce analysis results.                         
Accountability         Human capital risks are tracked,                    
                          documented, and reported to a                       
                          central advisory or management                      
                          board, and action is taken to                       
                          mitigate high-risk areas.                           
                          Applicable merit principles and                     
                          standards are upheld, and employee                  
                          grievances are considered and                       
                          addressed.                                          
                          Program and initiative                              
                          implementation efforts include                      
                          published plans that clearly                        
                          outline periodic review of                          
                          performance and desired outcomes.                   
                          Accountability for human capital                    
                          improvements is clearly assigned                    
                          and assessed regularly, and is an                   
                          input into future planning and                      
                          resource allocation decisions.                      
Total                                                      15    12        

           Source: GAO analysis of OPM and DHS data.

           ^a"Fully satisfied" means that the agency demonstrated, through
           verifiable evidence, that it has addressed all aspects of the key
           practice. "Partially satisfied" means that such evidence shows
           that some, but not all, aspects of the key practice have been
           addressed.

^28DHS, Office of the Chief Information Officer, IT Human Capital Plan to
Mitigate IT Competency and Skill Gaps (March 2006).

			  DHS Has Made Limited Progress in Implementing Its IT Human Capital Plan

           The DHS departmental offices and component agencies that share
           responsibility for implementing the IT human capital plan have
           collectively made little progress in doing so. In general, the DHS
           Offices of the CHCO and the CIO have done more to implement the
           plan than have the DHS component agencies, as described in the
           following text. The plan's state of implementation is due to both
           a lack of clarity around the respective implementation-related
           roles and responsibilities of the various DHS organizations
           involved, as well as the lower funding priority that these
           organizations have given to the plan's implementation relative to
           other competing IT efforts. Until a complete and well-defined IT
           human capital plan is effectively and efficiently implemented, the
           department will continue to run the risk of not having the people
           it needs to leverage technology in achieving organizational
           transformation and mission goals.

           At the department level, the CIO and the CHCO organizations,
           working with the CIO Council's Human Capital Resource Center, have
           together performed some of the tasks in the plan. For example,
           they have performed a gap analysis between existing and future
           skill needs and have begun examining strategies for reducing the
           identified gaps. They have also identified mission-critical
           occupations and skills necessary to achieve departmental goals.
           However, it is unclear which organization has primary
           responsibility for the plan. According to officials from both the
           Offices of the CHCO and the CIO, primary responsibility for the IT
           human capital plan and its implementation has recently moved from
           the CIO to the CHCO. However, these officials have yet to provide
           us with documentation of this transfer in responsibility.

           Despite the previously noted positive steps toward implementing
           the plan, officials from the CIO and the CHCO offices told us that
           the plan is largely not implemented. For example, while DHS is
           collecting information on the number of increasing, decreasing,
           and new mission-critical occupations, it is not identifying and
           analyzing year-to-year changes and trends to determine whether
           recruitment and retention strategies need to be updated to meet
           current organizational needs. In addition, although the department
           has documented performance goals and objectives for some work
           units (e.g., managers in Customs and Border Protection) and linked
           them to department-level organizational goals, it had not done so
           for much of the department.

           At the component level, none of the three agencies that we
           reviewed had begun implementing the plan, as described in the
           following text.

           o The Coast Guard had not implemented the plan. According to Coast
           Guard officials, including the Director, Future Force, and the
           Chief of Human Resource Information Services, they were aware of
           the plan's existence, but were unaware of any requirement to
           implement it. However, they stated that their own human capital
           efforts satisfy everything in the plan. For example, these
           officials said that they had performed workforce analyses to
           determine skill and competency gaps and have employed a range of
           strategies, such as strategic recruitment through direct hiring
           authority and internal training, to fill the gaps. The Coast Guard
           has yet to provide us with documentation to substantiate these
           statements.
           o Customs and Border Protection had not implemented the plan,
           although officials from its Office of Information Technology and
           the Office of Human Resources Management told us that they were
           aware of the plan and the need to implement it. According to these
           officials, the agency is in the process of developing a strategy
           to implement the plan. They also stated that the strategy was to
           be completed in June 2007, but it is still under development. On
           August 30, 2007, the officials reported that the strategy had been
           completed. We have not yet received the strategy and had an
           opportunity to analyze it.
           o The Federal Emergency Management Agency had not implemented the
           plan. Agency officials, including the Deputy CIO and the Chief of
           the Human Capital Branch, stated that they were aware of the plan
           but were unaware of a requirement to implement it. They also
           stated that their agency human capital efforts nevertheless were
           fully consistent with the plan. However, the officials have yet to
           provide analysis and related documentation to support these
           statements. In addition, the officials added that they are in the
           process of developing an agencywide human capital plan--addressing
           both IT and non-IT personnel--that is to be consistent with the
           plan and is to be issued on October 1, 2007.^29

           The lack of implementation progress can be attributed in part to
           ambiguity surrounding implementation roles and responsibilities.
           In particular, the plan itself is in large part silent on
           implementation roles and responsibilities as well as
           implementation accountability mechanisms. Moreover, as we have
           previously noted, the plan does not address important aspects of
           OPM's key practices that are implementation related. To help
           clarify the plan, including implementation roles and
           responsibilities, the DHS CIO Council's Human Capital Resource
           Center developed an implementation briefing and provided it to the
           CIO Council members in November 2005. However, the briefing does
           not assign specific implementation activities to specific
           organizations. Rather, it groups implementation activities into
           solution sets and then broadly assigns these sets to department
           and component agency CIOs, CHCOs, and human capital directors. As
           a result, department and component agency officials told us that
           they were not clear on who was responsible for what, particularly
           with regard to the sources of funding and staff. Moreover, as we
           have previously noted, officials for at least one component agency
           were not even aware that they were required to implement it, or
           what their roles and responsibilities were relative to
           implementation.

           The lack of implementation progress can also be attributed to
           resources being assigned to competing IT initiatives that were
           judged to be higher priorities. According to DHS CIO officials,
           including the CIO Council senior executive leading the effort,
           when it came time to fund implementation of the plan, the
           department and components decided to fund other priorities, such
           as DHS's effort to consolidate multiple component data centers and
           create a unified departmental network. Furthermore, the IT Human
           Capital Resource Center program manager responsible for
           implementing the plan resigned in January 2006, and his
           replacement left in November 2006. According to DHS CIO and CHCO
           officials, the department has not provided funding to fill the
           position, which still remains vacant.

^29With respect to the Federal Emergency Management Agency's overall
management of human capital, we recently reported that it lacks a
strategic workforce plan and related human capital strategies--such as
succession planning or a coordinated training effort--which are integral
to managing resources. They enable an agency to define staffing levels,
identify the critical skills needed to achieve its mission, and eliminate
or mitigate gaps between current and future skills and competencies. (For
the report, see GAO, Budget Issues: FEMA Needs Adequate Data, Plans, and
Systems to Effectively Manage Resources for Day-to-Day Operations,
[50]GAO-07-139 (Washington, D.C.: Jan. 19, 2007).)

           Department and component officials agreed that the IT human
           capital plan is largely not implemented. However, they stated that
           they are nonetheless following many of the OPM framework practices
           in the plan as a by-product of fulfilling their periodic reporting
           requirements to OMB on the President's Management Agenda^30 human
           capital initiatives. Specifically, the department and its
           components are required to report quarterly to OMB on progress in
           meeting certain human capital goals, such as filling
           mission-critical positions and delivering training to strengthen
           key IT knowledge, skills, and abilities. For example, the actions
           reported to OMB require the department and components to identify
           mission-critical occupations and competencies, develop recruitment
           strategies to maintain mission-critical competencies at desired
           levels, and report on progress toward achieving human capital
           goals, which are also called for by the plan and OPM's framework.
           Our analysis showed that efforts related to this reporting
           requirement align with about 12 of the 27 practices that we
           examined. DHS officials did not disagree with this analysis. This
           means that despite a number of IT human capital-related
           activities, the department and its component agencies are not
           implementing the full range of practices needed for effective
           management of IT human capital.

^30Started by OMB in fiscal year 2002, the President's Management Agenda
is an initiative intended to help reform federal government management in
several areas, one of which is the strategic management of human capital.
More specifically, the initiative calls for agencies to, among other
things, link human capital strategies to their mission goals, use
workforce planning and flexible strategies to recruit and train staff, and
determine the most effective means of achieving mission goals through
identifying the organization's core competencies.

           Conclusions

           An effective DHS IT workforce is essential to the department's
           efforts to leverage technology in transforming itself and
           achieving mission goals and outcomes. Central to creating and
           sustaining such a workforce is developing a comprehensive IT human
           capital plan that reflects relevant guidance and best practices,
           and ensuring that the plan is effectively implemented. While much
           of such a plan has been developed, and thus a planning foundation
           exists upon which to build, this plan is nevertheless lacking with
           respect to relevant guidance and best practices aimed at, among
           other things, ensuring that the plan is effectively implemented.
           Moreover, actual implementation of the plan to date has been
           limited, with much remaining to be accomplished by the department
           CIO and CHCO organizations as well as their DHS component agency
           counterparts. The status of the plan and its implementation is
           largely attributable to the lack of clarity surrounding
           implementation roles and responsibilities, and the lack of
           priority being given to the plan's implementation relative to
           competing IT priorities at the department and component agency
           levels. Until DHS has a comprehensive plan and follows through to
           ensure that it is effectively implemented departmentwide, it will
           remain challenged in its ability to have sufficient people with
           the right knowledge, skills, and abilities to effectively leverage
           technology in support of transformation and mission goals.
			  
			  Recommendations for Executive Action

           To strengthen DHS's management of IT human capital, we recommend
           that the Secretary of Homeland Security direct the Under Secretary
           for Management and the head of each DHS component agency to
           instruct their respective CIOs and human capital directors to make
           development and implementation of a comprehensive IT human capital
           plan an imperative within each organization. In this regard, we
           recommend that the Secretary direct the Under Secretary and the
           component agency heads to ensure that (1) IT human capital
           planning efforts fully satisfy relevant federal guidance and
           related best practices, (2) roles and responsibilities for
           implementing the resulting IT human capital plan and all
           supporting plans are clearly defined and understood, (3) resources
           needed to effectively and efficiently implement the plans are made
           available, and (4) progress in implementing the plans is regularly
           measured and periodically reported to DHS leadership and Congress.
			  
			  Agency Comments and Our Evaluation

           In written comments on a draft of this report, signed by the
           Director, Departmental GAO/Office of Inspector General Liaison and
           reprinted in appendix III, the department stated that it agreed
           with our recommendations. Consistent with our report, it also
           stated that the state of IT human capital management varies widely
           across DHS component organizations, and it acknowledged that a
           lower priority has been assigned to IT human capital relative to
           other IT-related matters. In addition, DHS stated that it
           understands the importance of IT human capital planning and that
           it will dedicate the resources needed to ensure that it has a
           highly skilled and effective IT workforce.

           DHS also provided what it termed additional information about
           ongoing and planned activities to update and clarify the status of
           its IT human capital efforts, particularly with regard to the key
           practices that we determined to be "partially satisfied." Among
           other things, DHS stated that some of our determinations were
           based on the DHS IT Human Capital Strategic Plan (2005), which was
           not intended to include certain details relative to achieving
           results, such as milestones, time frames, and roles and
           responsibilities. According to DHS, this plan is a high-level
           strategy and not a "blueprint for execution." Rather, it said that
           the IT Gap Analysis Report and Improvement Plan (2007) is the
           department's "operative diagram" for achieving its human capital
           goals and results. We agree that the IT Gap Analysis Report and
           Improvement Plan (2007) is relevant to our determinations.
           However, we disagree that our determinations were based solely on
           the strategic plan. As described in our report's scope and
           methodology, our determinations were based on examining all
           relevant documentation that the department provided for each key
           practice, including the IT Gap Analysis Report and Improvement
           Plan (2007), as well as on interviews with key officials from
           DHS's Offices of the CIO and CHCO, the CIO Council executive
           sponsor for Human Capital issues, and officials from the
           department's IT Human Capital Resource Center. Accordingly, the
           determinations in our draft report already recognized most of the
           additional information that DHS provided. In cases where new
           information was provided, we have incorporated, or otherwise
           recognized, this information in our report as appropriate.

           We are sending copies of this report to the Chairmen and Ranking
           Members of the Senate and House committees that have authorization
           and oversight responsibilities for homeland security and other
           interested congressional committees. We are also sending copies to
           the Directors of OMB and OPM; the DHS Secretary, Undersecretary
           for Management, CHCO, and CIO; the component agency heads; and
           other interested parties. In addition, the report will also be
           available without charge on GAO's Web site at
           [31]http://www.gao.gov .

           Should you have any questions about matters discussed in this
           report, please contact me at (202) 512-3439 or by e-mail at
           [32][email protected] . Contact points for our Offices of
           Congressional Relations and Public Affairs may be found on the
           last page of this report. Key contributors to this report are
           listed in appendix IV.

           Randolph C. Hite
			  Director, Information Technology Architecture and
           Systems Issues
			  
			  Appendix I: Objectives, Scope, and Methodology

           The objectives of our review were to determine (1) whether the
           Department of Homeland Security's (DHS) information technology
           (IT) human capital plan is consistent with federal guidance and
           associated best practices and (2) the status of the plan's
           implementation.

           To address our first objective, we reviewed the department's May
           20, 2005, IT human capital plan,^1 which DHS labeled as "Draft
           Final for Discussion Purposes" and submitted on August 30, 2006,
           to the Senate and House Appropriations Committees pursuant to
           requirements in DHS's fiscal year 2006 appropriations act. We
           evaluated this plan and supporting documentation against selected
           practices in the Office of Personnel Management's (OPM) Human
           Capital Assessment and Accountability Framework.^2 We used this
           framework because it is the federal guidance that DHS used in
           developing its plan, and because the framework reflects the human
           capital best practices in GAO's strategic human capital model.^3
           In addition, this framework provides a method for assessing the
           adequacy of a human capital plan. In applying this method, we
           focused on 27 practices in the framework that are essential to a
           well-defined and useful plan and that span the six standards areas
           in the framework.^4 We also validated our use of the 27 practices
           with OPM.

           Using the framework's method, we compared the DHS IT human capital
           plan and supporting documentation with each of the elements
           comprising the 27 practices.^5 We also interviewed (1) officials
           from DHS's Offices of the Chief Information Officer (CIO) and the
           Chief Human Capital Officer (CHCO); (2) the CIO Council executive
           sponsor for Human Capital issues; and (3) officials from the
           department's IT Human Capital Resource Center, which helped
           develop the IT human capital plan and supporting documentation. In
           performing our comparative analysis, we determined if the practice
           was fully satisfied, partially satisfied, or not satisfied. For
           purposes of this review, we defined "fully satisfied" to mean that
           the agency demonstrated, through verifiable evidence, that it had
           addressed all aspects of the key practice; "partially satisfied"
           to mean that such evidence showed that some, but not all, aspects
           of the key practice had been addressed; and "not satisfied" to
           mean that such evidence showed that none of the aspects of the key
           practice had been addressed.

^1DHS, Empowering the IT Workforce, DHS IT Human Capital Strategic Plan
(2005-2010), Draft Final for Discussion Purposes (Washington, D.C.: May
2005).

^2OPM, Human Capital Assessment and Accountability Framework (Washington,
D.C.: October 2002).

^3GAO, A Model of Strategic Human Capital Management (Exposure Draft),
[51]GAO-02-373SP (Washington, D.C.: March 2002).

^4OPM, Human Capital Assessment and Accountability Framework.

^5DHS, Office of the CIO, IT Human Capital Plan to Mitigate IT Competency
and Skill Gaps (March 2006); Empowering the IT Workforce: Solutions to
Address Critical IT Human Capital Gaps--Executive Brief and Detailed
Implementation Plan (Nov. 1, 2005); Empowering the IT Workforce: DHS IT
Human Capital Strategic Plan (2005-2010) Draft Final for Discussion
Purposes (May 20, 2005); DHS Workforce Plan FY 2005-2008; and DHS, Offices
of the CHCO and CIO, IT Gap Analysis Report and Improvement Plan (May 1,
2007).

           In addition, we shared all of our preliminary determinations with
           officials from the DHS CIO Council and the DHS Office of the CHCO
           and provided them with an opportunity to comment on these
           determinations. These officials agreed with many of our
           determinations but also provided additional evidence to support
           revising others, which we have done and incorporated in this
           report.

           For our second objective, we reviewed plan implementation
           activities within the DHS Offices of the CIO and the CHCO and
           three DHS component agencies: the Coast Guard, Customs and Border
           Protection, and the Federal Emergency Management Administration.
           We selected these components because based on DHS's fiscal year
           2006 budget, they were among the largest with respect to total
           budget, IT budget, and IT staff positions. Thus, the scope of our
           component agency coverage extended to about $20 billion of DHS's
           $40 billion total budget; $720 million of the department's $2.2
           billion IT budget; and 60 percent^6 of its IT personnel. In each
           of these organizations, we requested and reviewed available
           documentation on its respective efforts to implement the plan,
           including development of supporting implementation plans,
           completion of tasks, and the status of ongoing efforts related to
           IT human capital. We also interviewed responsible officials from
           DHS's Offices of the CIO and the CHCO; the Coast Guard's Human
           Resources Directorate; Customs and Border Protection's Office of
           Human Resources Management; and the Federal Emergency Management
           Administration's Office of the CIO and its Office of Human
           Resources Management.

^6This percentage is based on 1,276 of the 2,165 full-time equivalent
positions in fiscal year 2006.

           We performed our work at DHS headquarters in Washington, D.C.,
           from October 2006 through July 2007, in accordance with generally
           accepted government auditing standards.
			  
			  Appendix II: Details on IT Human Capital Plan's Satisfaction of
			  Practices in OPM's Framework 

                             Satisfied^a                                      
Key practice            Fully Partially  Comment                           
Strategic alignment                                                        
Key stakeholders                         Key stakeholders--identified by   
participate in the                       DHS as including the CIO, the     
development and                          CHCO, component agency CIO and    
revision of the                          human capital directors, and the  
agency's strategic                       IT Human Capital Resource         
plan (e.g., DHS's IT                     Center--participated in the       
human capital plan)                      development of the department's   
and facilitate                           IT human capital plan and         
workforce planning and                   workforce planning and analysis   
analysis efforts.                        efforts. For example, in March    
                                            2005, DHS held an off-site        
                                            meeting with these stakeholders   
                                            to facilitate collaboration and   
                                            to gather stakeholder input as    
                                            part of plan development efforts. 
                                            DHS's IT human capital plan also  
                                            states that the department        
                                            intends to involve these          
                                            stakeholders in efforts to        
                                            periodically revise the plan to   
                                            reflect current priorities and    
                                            conditions. Furthermore, the plan 
                                            and supporting documentation      
                                            identify these stakeholders as    
                                            participating in analyzing and    
                                            identifying the department's      
                                            workforce needs and in developing 
                                            a departmentwide workforce plan   
                                            to fill identified gaps.          
The organization                         In its IT human capital plan and  
defines successful                       supporting documentation, DHS     
achievement of its                       defines accomplishing its         
mission in terms of                      near-term and long-term IT human  
valid and reliable                       capital goals and objectives in   
data, including both                     terms of qualitative and          
long- and short-term                     quantitative measures that are to 
human capital                            be based on valid and reliable    
performance goals.                       data, and links them to           
                                            accomplishing DHS's mission.      
                                            Specifically, the plan identifies 
                                            departmental human capital goals, 
                                            such as recruiting a high-quality 
                                            IT workforce, training its IT     
                                            workforce to be capable, and      
                                            retaining high performers. It     
                                            also describes how these goals    
                                            support the strategic goal of     
                                            empowering the IT workforce and   
                                            how this helps to achieve DHS's   
                                            mission.                          
Trends in                                In the IT human capital plan and  
mission-critical                         supporting documentation, the     
occupations are                          department provides updates for   
analyzed in terms of                     fiscal years 2004 and 2005 on,    
suggested factors in                     for example, the number of        
order to continually                     mission-critical occupations that 
adjust the agency's                      are increasing, decreasing, or    
recruitment and                          new. However, the plan and        
retention strategy to                    supporting documentation          
its current state of                     generally do not identify and     
need.                                    analyze the year-to-year trends.  
                                            For example, supporting           
                                            documentation (e.g., the DHS      
                                            Workforce Plan FY 2005-2008) has  
                                            data for 2003 and 2004, but the   
                                            year-to-year changes and trends   
                                            in occupations are not identified 
                                            and analyzed to determine whether 
                                            the recruitment and retention     
                                            strategy needs to be updated to   
                                            meet the current state of         
                                            organizational need. In addition, 
                                            while DHS officials noted an      
                                            example of one component agency   
                                            (Transportation Security          
                                            Administration) adjusting its     
                                            recruitment and retention         
                                            strategy to meet the current      
                                            state of need, they stated that   
                                            most components are not adjusting 
                                            recruitment strategies on the     
                                            basis of available occupation     
                                            data.                             
An integrated human                      DHS's IT human capital plan and   
capital planning                         supporting documentation identify 
process is in use,                       use of a human capital planning   
including                                process that includes             
representatives from                     stakeholders from across the      
the agency/unit human                    department and component          
capital team, the                        agencies. For example, in         
primary IT human                         developing the IT human capital   
capital officer, and                     plan, the department used a       
senior leaders and                       process involving representatives 
managers from                            from the department's CHCO, CIO,  
mission-specific                         and component offices, among      
program areas.                           others. This was also the case    
                                            with regard to other supporting   
                                            documentation. For example, in    
                                            developing the DHS Workforce Plan 
                                            FY 2005-2008, the department      
                                            brought together stakeholders     
                                            from across the department to     
                                            collaborate on and produce this   
                                            product. This workforce plan also 
                                            defines a human capital planning  
                                            process whose stated purpose is   
                                            to help identify, in an           
                                            integrated and cost-effective     
                                            manner, the human capital         
                                            resources needed to meet mission  
                                            goals and develop strategies for  
                                            developing or acquiring those     
                                            resources.                        
Mission-critical                         Although documentation supporting 
occupations and                          DHS's IT human capital plan       
competencies are                         identifies mission-critical       
identified in the                        occupations (e.g., IT project     
agency's strategic                       managers and IT security          
plan and/or                              specialists), the IT human        
performance plan, and                    capital plan and other DHS        
its strategic human                      strategic and human capital plans 
capital plan.                            do not. Specifically, DHS's IT    
                                            Human Capital Plan to Mitigate IT 
                                            Competency and Skill Gaps and the 
                                            DHS Workforce Plan FY 2005-2008   
                                            identify technical competencies   
                                            and skills needed for IT          
                                            occupations. However, the DHS IT  
                                            human capital plan and the        
                                            departmentwide strategic and      
                                            human capital plans do not        
                                            identify mission-critical IT      
                                            occupations and competencies.     
The strategic human                      While documents supporting DHS's  
capital plan sets                        IT human capital plan (e.g., the  
human capital progress                   November 2005 implementation      
milestones and                           briefing and the May 2007 IT Gap  
identifies those                         Analysis Report and Improvement   
responsible for                          Plan) include milestones and      
meeting them.                            assign roles and                  
                                            responsibilities, neither these   
                                            documents nor the IT human        
                                            capital plan include specific     
                                            time frames or milestones for     
                                            when most defined activities and  
                                            steps are to be completed. In     
                                            addition, although the supporting 
                                            documents and the plan provide    
                                            for involving key stakeholders,   
                                            they do not assign stakeholders   
                                            responsibility and accountability 
                                            for specific activities.          
Key human capital                        DHS's IT human capital plan and   
leaders and agency                       supporting documentation describe 
stakeholders utilize                     the department's collaborative    
collaborative                            mechanisms and forums for         
mechanisms/forums that                   planning strategic human capital  
provide a venue for                      activities. They include, for     
consistent dialogue in                   example, the DHS CIO Council,     
the planning process                     which is made up of component     
(e.g., team members of                   agency CIOs and which has monthly 
review boards, working                   meetings to discuss, among other  
groups, or executive                     things, human capital matters.    
off-sites).                              The council used this forum and   
                                            off-site meetings to collaborate  
                                            with the DHS CHCO office, the IT  
                                            Human Capital Resource Center,    
                                            and component human capital       
                                            directors, among others, in       
                                            developing the IT human capital   
                                            plan. In addition, the department 
                                            tasks the Human Capital Resource  
                                            Center to bring together          
                                            representatives from DHS and the  
                                            components on a monthly basis to  
                                            share ideas and strategies on     
                                            emerging IT human capital issues. 
                                            Furthermore, DHS established a    
                                            Workforce Planning Council,       
                                            comprising department and         
                                            component agency officials, to    
                                            develop a workforce plan and      
                                            provide for analysis across DHS.  
The agency has a                         In the IT human capital plan and  
documented change                        supporting documentation, DHS     
management process                       documents a change management     
that identifies                          process that identifies human     
necessary human                          capital practices needed to       
capital practices to                     achieve the department's human    
achieve human capital                    capital objectives. For example,  
objectives.                              in the DHS Workforce Plan FY      
                                            2005-2008, the department         
                                            describes its change management   
                                            process that includes steps such  
                                            as identifying departmental       
                                            goals, identifying workforce      
                                            requirements, developing a        
                                            workforce strategy, and           
                                            evaluating the effectiveness of   
                                            the planning process. In          
                                            addition, the IT human capital    
                                            plan identifies certain           
                                            practices--such as analyzing      
                                            workforce needs and capabilities, 
                                            developing an IT training         
                                            strategy, implementing an IT      
                                            leadership development program,   
                                            and developing performance        
                                            measures for accountability--as   
                                            being critical to achieving DHS   
                                            human capital objectives.         
                                            Moreover, supporting              
                                            documentation (e.g., DHS's        
                                            November 2005 implementation      
                                            briefing) identifies traceable    
                                            linkages between the practices it 
                                            is intended to implement and IT   
                                            human capital goals and           
                                            objectives.                       
Studies indicate which                   Documentation supporting the IT   
occupations and                          human capital plan (e.g., DHS's   
competencies are                         IT Human Capital Plan to Mitigate 
essential to achieving                   IT Competency and Skill Gaps)     
the agency's strategic                   identifies occupations and        
goals.                                   competencies to achieve the       
                                            agency's strategic goals. For     
                                            example, the department           
                                            identified competencies within IT 
                                            project management, information   
                                            security, and enterprise          
                                            architecture as being critical to 
                                            achieving the department's        
                                            mission goals.                    
Line managers and key                    DHS's IT human capital plan and   
staff, including human                   supporting documentation include  
resources, consider                      guidance for managers and key     
and prepare for                          staff to consider, plan, and      
possible workforce                       prepare for changes in the        
changes in areas such                    department's mission, programs,   
as mission/goals,                        and workforce composition.        
technology, program                      Specifically, DHS's IT human      
additions or                             capital plan states that DHS      
deletions, functions,                    managers should consider and      
and outsourcing                          prepare for changes in            
initiatives.                             organizational goals, personnel,  
                                            and technology. In addition,      
                                            supporting documentation (e.g.,   
                                            the DHS Workforce Plan FY         
                                            2005-2008) acknowledges the       
                                            possibility of workforce changes  
                                            due to retirements and attrition. 
                                            The workforce plan also states    
                                            that it will serve as an          
                                            integrated approach for           
                                            addressing future business needs, 
                                            and identifies steps that         
                                            department managers should go     
                                            through in planning for changes,  
                                            including considering how changes 
                                            will impact mission goals,        
                                            programs, functions, and          
                                            workforce composition. The        
                                            workforce plan also states that   
                                            managers should consider using    
                                            alternative strategies, such as   
                                            outsourcing.                      
Turnover indicators                      Documentation supporting the IT   
are monitored                            human capital plan (specifically, 
regularly.                               the DHS Workforce Plan FY         
                                            2005-2008) identifies several     
                                            factors to be monitored,          
                                            including appointments,           
                                            separations, and retirements, and 
                                            assigns the responsibility for    
                                            monitoring the factors to the     
                                            department's Office of the CHCO.  
                                            This documentation also reports   
                                            on the department's appointments, 
                                            separations, and retirements      
                                            during fiscal years 2004 and      
                                            2005.                             
A workforce analysis                     The IT human capital plan and     
process is used on a                     supporting documentation show     
regular basis for                        that DHS uses a workforce         
assessment and                           analysis process for human        
planning, and to drive                   capital assessment, planning, and 
human capital                            decisions. For example,           
decisions.                               supporting documentation (e.g.,   
                                            the DHS Workforce Plan FY         
                                            2005-2008) identifies workforce   
                                            trends analyzed among             
                                            cross-cutting and high-profile    
                                            mission-critical occupations and  
                                            the process established and       
                                            followed to develop such trend    
                                            data. Furthermore, the            
                                            documentation also shows that DHS 
                                            established a Workforce Planning  
                                            Council that is responsible for   
                                            ensuring that workforce planning  
                                            and human capital initiatives are 
                                            integrated consistently and       
                                            cost-effectively across DHS.      
                                            According to DHS CHCO officials,  
                                            the department intends to conduct 
                                            workforce analysis efforts every  
                                            2 years. However, these officials 
                                            also report that not all          
                                            components are using the          
                                            workforce data on a regular basis 
                                            to drive human capital decisions. 
The agency has a                         The IT human capital plan and     
clearly defined                          supporting documents clearly      
strategy and plan to                     identify human capital strategies 
facilitate human                         and goals, but do not fully       
capital changes.                         provide for how and when human    
                                            capital changes will be made. For 
                                            example, the plan defines         
                                            strategic goals and objectives    
                                            and states that an implementation 
                                            plan is to be developed and       
                                            executed with performance         
                                            measures, such as milestones,     
                                            deadlines, and assignment of      
                                            personnel responsible for         
                                            achieving them. However, as we    
                                            have previously discussed, DHS    
                                            developed such a plan in November 
                                            2005 (i.e., the November 2005     
                                            implementation briefing) and      
                                            later updated it in the May 2007  
                                            IT Gap Analysis Report and        
                                            Improvement Plan, but these       
                                            documents do not include specific 
                                            time frames or milestones for     
                                            when most defined activities and  
                                            steps are to be completed. In     
                                            addition, although the document   
                                            provides for involving key        
                                            stakeholders, it does not assign  
                                            stakeholders responsibility and   
                                            accountability for specific       
                                            activities.                       
Workforce planning and                                                     
deployment                                                                 
Staffing data showing                    The IT human capital plan and     
trends in                                supporting documentation include  
appointments,                            analyses of staffing data for     
promotions,                              appointments, separations, and    
conversions,                             retirements that are reported to  
separations, and                         the Office of Management and      
retirements are                          Budget (OMB) on a quarterly       
analyzed regularly,                      basis. In addition, these         
and management                           documents (e.g., the DHS          
decisions regarding                      Workforce Plan FY 2005-2008)      
workforce deployment                     include workforce trends analyses 
are based on                             among cross-cutting and           
documented data.                         mission-critical occupations.     
                                            However, trends in these data are 
                                            not fully analyzed, and,          
                                            according to DHS CHCO officials,  
                                            not all components are using the  
                                            data on a regular basis to drive  
                                            human capital decisions.          
The agency uses                          The IT human capital plan and     
multifaceted                             supporting documentation provide  
techniques to close                      for a variety of recruitment and  
competency gaps within                   training techniques to be used in 
the organization                         closing competency gaps. For      
(e.g., strategic                         example, supporting documents     
recruitment, midcareer                   (e.g., DHS's IT Human Capital     
hiring, and training).                   Plan to Mitigate IT Competency    
                                            and Skill Gaps) describe efforts  
                                            planned and under way to mitigate 
                                            gaps using strategic recruitment  
                                            through outsourcing,              
                                            private/public cross training,    
                                            internal training, and            
                                            e-training.                       
Leadership and                                                             
knowledge management                                                       
Leadership development                   The IT human capital plan and     
and succession needs                     supporting documentation, in      
are considered,                          particular DHS's Succession       
reflected in human                       Management Plan FY 2006-2009,     
capital plans and                        describe practices to be followed 
strategies, and                          in developing the leadership      
addressed through                        skills of DHS personnel. These    
related human capital                    documents also identify           
management                               succession planning goals and     
efforts/programs.                        objectives, implementation        
                                            strategies, and program           
                                            evaluation critical success       
                                            factors to measure whether        
                                            expected outcomes are being       
                                            achieved.                         
The agency has a                         In its IT human capital plan and  
strategy and plan for                    supporting documentation, DHS     
communication of human                   identifies strategies and plans   
capital changes and                      for communicating changes and     
progress, and to                         progress to employees. For        
capture employee                         example, the IT human capital     
feedback related to                      plan includes initiatives to      
human capital                            improve communication on human    
practices and needs.                     capital changes and progress,     
                                            such as developing training       
                                            materials and courses to educate  
                                            supervisors on how to (1) take    
                                            advantage of hiring               
                                            flexibilities; (2) promote the    
                                            use and accessibility of          
                                            departmentwide training           
                                            opportunities, including          
                                            e-learning; and (3) provide       
                                            Web-based information on training 
                                            and human capital policies and    
                                            procedures. In addition,          
                                            supporting documentation, such as 
                                            the DHS Workforce Plan FY         
                                            2005-2008, includes a             
                                            communications plan on how to     
                                            keep DHS personnel informed on    
                                            workforce changes, including the  
                                            department's progress in          
                                            implementing them. Furthermore,   
                                            according to DHS CHCO and CIO     
                                            officials, the department         
                                            captures employee feedback on its 
                                            practices through representatives 
                                            to the IT Human Capital Resource  
                                            Center and also through annual IT 
                                            staff surveys.                    
Annual performance                       As directed by OMB, DHS reports   
plans, budgets, and                      quarterly on its progress on      
performance reports                      human capital goals. However,     
document plans for and                   DHS's IT human capital plan and   
progress toward human                    supporting documentation do not   
capital goals.                           provide for developing annual     
                                            performance plans, budget         
                                            documents, or performance reports 
                                            that discuss plans for and        
                                            progress against human capital    
                                            goals. In addition, the           
                                            information reported to OMB is    
                                            primarily on DHS efforts to close 
                                            IT competencies and skills gaps,  
                                            which is just one of the multiple 
                                            goals and objectives in DHS's     
                                            plan and supporting               
                                            documentation.                    
Results-oriented                                                           
performance culture                                                        
Work units have                          Although DHS's IT human capital   
documented performance                   plan and related documentation    
goals and objectives                     support having measurable         
linked to the agency                     performance goals for work units, 
strategic plan and                       such performance plans and        
performance plan.                        measures have not been fully      
                                            developed. For example, DHS CIO   
                                            and CHCO officials stated that    
                                            although the department has       
                                            documented performance goals and  
                                            objectives for some work units    
                                            (e.g., managers in Customs and    
                                            Border Protection) and linked     
                                            them to department-level          
                                            organizational goals, it had not  
                                            done so for much of the           
                                            department. Specifically, only    
                                            managers in the DHS CHCO's office 
                                            and also at Customs and Border    
                                            Protection have performance       
                                            objectives that are linked to     
                                            strategic plans.                  
Talent management                                                          
The agency's strategic                   DHS's IT human capital plan and   
planning process                         supporting documentation provide  
documents and tracks                     details on the department's       
mission-critical                         strategic planning process,       
occupations and                          including the reporting and       
competency                               tracking of mission-critical      
gap-reduction efforts.                   occupations and efforts to reduce 
                                            competency gaps. For example, in  
                                            supporting documentation (e.g.,   
                                            the DHS Workforce Plan FY         
                                            2005-2008), the department        
                                            describes a workforce planning    
                                            process that is to help identify  
                                            the human capital resources       
                                            needed to meet mission goals and  
                                            develop strategies for developing 
                                            or acquiring those resources. In  
                                            addition, other supporting        
                                            documentation (e.g., the IT Human 
                                            Capital Plan to Mitigate IT       
                                            Competency and Skill Gaps)        
                                            identifies mission-critical IT    
                                            occupations and high-level        
                                            efforts needed to close its       
                                            competency gaps. The department   
                                            uses its OMB quarterly reports to 
                                            document and track the status of  
                                            efforts to close those competency 
                                            gaps.                             
Strategies are                           As described in its IT human      
developed and                            capital plan and supporting       
implemented for                          documentation, DHS's strategies   
reducing competency                      to close its competency gaps      
gaps through training,                   consist of a number of human      
development, or                          capital initiatives, including    
alternative sources.                     training, staff development, and  
                                            an outside executive exchange     
                                            program. Specifically, DHS's IT   
                                            Human Capital Plan to Mitigate IT 
                                            Competency and Skill Gaps details 
                                            planned and ongoing efforts to    
                                            mitigate gaps using, for example, 
                                            strategic recruitment through     
                                            outsourcing, private/public cross 
                                            training, internal training, and  
                                            e-training.                       
Staffing, training,                      The IT human capital plan and     
and performance data                     supporting documentation state    
indicate success in                      that data on its progress toward  
closing competency                       meeting human capital goals will  
gaps.                                    be reported to OMB and DHS        
                                            management as required; they do   
                                            not, however, specify what data   
                                            are to be reported. The           
                                            department reports quarterly to   
                                            OMB on the status of efforts to   
                                            close competency gaps. In         
                                            addition, a recently completed    
                                            (May 2007) DHS workforce survey   
                                            and gap analysis^b identify       
                                            existing IT competency gaps, but  
                                            do not indicate any progress in   
                                            closing them. According to DHS    
                                            CHCO and CIO officials, the       
                                            department to date has had        
                                            limited resources and data        
                                            available to assess the           
                                            effectiveness of ongoing efforts  
                                            to close competency gaps. They    
                                            further stated that they intend   
                                            to use the newly completed        
                                            analysis as a baseline for        
                                            measuring the success of future   
                                            efforts.                          
Recruitment strategies                   Documentation supporting DHS's IT 
are created to                           human capital plan provides for   
maintain                                 developing recruiting strategies  
mission-critical                         based on workforce forecasting    
competencies at the                      and analysis results. For         
desired level using                      example, the DHS Workforce Plan   
business forecasting                     FY 2005-2008 states that the      
and workforce analysis                   department is to use a strategic  
results.                                 approach to recruitment and       
                                            workforce planning. In addition,  
                                            it identifies a DHS corporate     
                                            recruitment workgroup, which      
                                            includes senior human resources   
                                            and civil rights staff throughout 
                                            DHS, who are to assess            
                                            departmentwide recruitment        
                                            activities and tools; coordinate  
                                            participation in recruitment      
                                            fairs; and develop recruitment    
                                            strategies and activities for     
                                            crosscutting occupations,         
                                            primarily entry-level positions.  
                                            In May 2007, the department       
                                            developed an improvement plan     
                                            that provides updated strategies  
                                            for addressing competency gaps    
                                            and maintaining mission-critical  
                                            competencies. This plan is based  
                                            on the analysis of a recently     
                                            completed workforce survey.       
Accountability                                                             
Human capital risks                      Documents supporting DHS's IT     
are tracked,                             human capital plan (e.g., the IT  
documented, and                          Human Capital Plan to Mitigate IT 
reported to a central                    Competency and Skill Gaps and the 
advisory or management                   IT Gap Analysis Report and        
board, and action is                     Improvement Plan) identify and    
taken to mitigate                        document some but not all key     
high-risk areas.                         human capital risks and do not    
                                            provide for reporting risks to    
                                            management or a management board. 
                                            More specifically, these plans    
                                            document that failure to fill     
                                            critical competency and skill     
                                            sets (e.g., IT project management 
                                            and IT security) poses a          
                                            medium-to-high human capital risk 
                                            to DHS's ability to achieve       
                                            mission goals. However, DHS CHCO  
                                            and CIO officials acknowledged    
                                            that the department does not      
                                            track these risks through any     
                                            formal mechanism. In addition,    
                                            they stated that DHS has not      
                                            established a comprehensive       
                                            effort to identify and track the  
                                            full range of human capital risks 
                                            facing the department, as well as 
                                            reporting those risks to          
                                            management or a central advisory  
                                            or management board.              
Applicable merit                         DHS's IT human capital plan and   
principles and                           supporting documentation provide  
standards are upheld,                    for the application and           
and employee                             enforcement of merit principles   
grievances are                           and standards and for considering 
considered and                           and addressing employee           
addressed.                               grievances. For example, the plan 
                                            recognizes that the department    
                                            has legislative and regulatory    
                                            requirements to implement         
                                            performance-based management      
                                            practices, including merit        
                                            principles and standards, for its 
                                            IT workforce. In addition, an OPM 
                                            analysis of DHS's human resources 
                                            management operations reports     
                                            that the department's human       
                                            resources management operates in  
                                            a consistent manner with merit    
                                            principles.^c Moreover, DHS has a 
                                            policy directive that defines the 
                                            process for administering its     
                                            employee grievance system. The    
                                            department also regularly reports 
                                            to management and employees on    
                                            the number of grievances filed    
                                            and resolved as well as the       
                                            number of cases outstanding.      
Program and initiative                   DHS's IT human capital plan and   
implementation efforts                   supporting documentation provide  
include published                        for performance reviews of        
plans that clearly                       desired outcomes. For example,    
outline periodic                         supporting documentation          
review of performance                    (specifically, DHS's IT Human     
and desired outcomes.                    Capital Plan to Mitigate IT       
                                            Competency and Skill Gaps and IT  
                                            Gap Analysis Report and           
                                            Improvement Plan) provides        
                                            analyses and snapshots of the     
                                            department's performance in       
                                            trying to close gaps in           
                                            mission-critical competencies.    
                                            However, these competency gap     
                                            snapshots do not constitute a     
                                            comprehensive review and          
                                            evaluation of progress against    
                                            all of the objectives established 
                                            in the human capital plan. In     
                                            addition, DHS's IT human capital  
                                            plan and supporting documentation 
                                            do not clearly outline or         
                                            identify time frames for periodic 
                                            review. DHS CHCO and CIO          
                                            officials stated that they intend 
                                            to address this in future         
                                            revisions to the plan.            
Accountability for                       DHS's IT human capital plan does  
human capital                            not clearly assign accountability 
improvements is                          for human capital improvements or 
clearly assigned and                     provide for regular assessments   
assessed regularly,                      of that accountability. However,  
and is an input into                     documents supporting the plan     
future planning and                      (specifically, the department's   
resource allocation                      November 2005 implementation      
decisions.                               briefing and the May 2007 IT Gap  
                                            Analysis Report and Improvement   
                                            Plan) do assign accountability    
                                            and responsibility for human      
                                            capital improvements. For         
                                            example, the documents assign     
                                            accountability to the DHS CHCO,   
                                            DHS CIO, and component agency     
                                            heads to make improvements        
                                            related to closing selected       
                                            competency gaps. However, the     
                                            documents do not provide for      
                                            assessing accountability on a     
                                            regular basis and using the       
                                            results as an input into future   
                                            planning and resource allocation  
                                            decisions. DHS CHCO and CIO       
                                            officials stated that while data  
                                            related to competency gaps are    
                                            used as an input, data regarding  
                                            accountability are not.           

           Source: GAO analysis of OPM and DHS data.

           ^a"Fully satisfied" means that the agency demonstrated, through
           verifiable evidence, that it has addressed all aspects of the key
           practice. "Partially satisfied" means that such evidence shows
           that some, but not all, aspects of the key practice have been
           addressed.

           ^bDHS, Office of the Chief Information Officer/Office of the Chief
           Human Capital Officer, IT Gap Analysis Report and Improvement Plan
           (May 1, 2007).

           ^cOPM, Department of Homeland Security: Human Resources Operations
           Audit Report Q2 FY 2006 (Washington, D.C.: Aug. 23, 2006).
			  
			  Appendix III: Comments from the U.S. Department of Homeland Security
			  
			  Appendix IV: GAO Contact and Staff Acknowledgments
			  
			  GAO Contact

           Randolph C. Hite, (202) 512-3439, or [33][email protected]
			  
			  Staff Acknowledgments

           In addition to the individual named above, Gerard Aflague, Mathew
           Bader, Justin Booth, Barbara Collier, S. Mike Davis, Bill Doherty
           (Assistant Director), and Gary Mountjoy (Assistant Director) made
           key contributions to this report.
			  
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(310632)

[52]www.gao.gov/cgi-bin/getrpt?GAO-07-425 .

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and methodology, click on the link above.

For more information, contact Randolph C. Hite at (202) 512-3429 or
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Highlights of [53]GAO-07-425 , a report to congressional committees

September 2007

INFORMATION TECHNOLOGY

DHS's Human Capital Plan Is Largely Consistent with Relevant Guidance, but
Improvements and Implementation Steps Are Still Needed

In performing its missions, the Department of Homeland Security (DHS)
relies extensively on information technology (IT). Recognizing this, DHS's
fiscal year 2006 appropriations act required its Chief Information Officer
(CIO) to submit a report to congressional appropriations committees that
includes, among other things, an IT human capital plan, and the act
directs GAO to review the report. GAO's review addressed (1) whether the
IT human capital plan is consistent with federal guidance and associated
best practices and (2) the status of the plan's implementation. In
performing its review, GAO compared DHS's plan and supporting
documentation with 27 practices in the Human Capital Assessment and
Accountability Framework of the Office of Personnel Management, and
examined plan implementation activities at three DHS component agencies.

[54]What GAO Recommends

GAO is recommending that DHS make completion and implementation of a
compre-hensive IT human capital plan an imperative, and in doing so,
ensure that implementation roles and responsibilities are clearly defined
and adequate resources are made available. DHS agreed with GAO's
recommendations and acknowledged that IT human capital has been a lower
priority relative to other IT initiatives. It committed to having a highly
skilled IT workforce and described efforts planned and under way to do so.

DHS's IT human capital plan is largely consistent with federal guidance
and associated best practices; however, it does not fully address a number
of important practices that GAO examined. Specifically, the plan and
supporting documentation fully address 15 practices; for example, they
provide for developing a complete inventory of existing staff skills,
identifying IT skills that will be needed to achieve agency goals,
determining skill gaps, and developing plans to address such gaps. They
also provides for involving key stakeholders--such as the CIO, the Chief
Human Capital Officer (CHCO), and component agency CIOs and human capital
directors--in carrying out the skill gap analyses and other workforce
planning activities. Nevertheless, elements of 12 of the 27 practices are
not included in the plan or related documentation. For example, although
the plan and supporting documents describe the department's IT human
capital goals and steps necessary to implement them, most steps do not
include associated milestones. In addition, although the plan and
supporting documents provide for involving key stakeholders, they do not
specifically assign these stakeholders responsibility and accountability
for carrying out planned activities. These and other missing elements of
the practices are important because they help ensure that the plan is
implemented efficiently and effectively. DHS officials provided various
reasons why the missing practices were omitted, including uncertainty
surrounding the source of resources for implementing the plan and the
demands of other IT priorities, such as consolidating component agency
data centers.

To date, DHS has made limited progress in implementing the plan, according
to officials from the offices of the department's CIO and CHCO and three
DHS agencies (the Coast Guard, Customs and Border Protection, and the
Federal Emergency Management Agency). These officials said that they are
nonetheless following several of the practices because they are required
to report quarterly to the Office of Management and Budget on progress in
meeting such human capital goals as filling mission-critical positions and
delivering key IT training. DHS officials stated that the department's
limited progress in implementing the plan was due to its focus on other
priorities, and ambiguity surrounding plan implementation roles and
responsibilities. Until DHS has a complete plan that fully addresses all
practices and the department and components implement the plan, DHS will
continue to be at risk of not having sufficient people with the right
knowledge, skills, and abilities to manage and deliver the IT systems that
are essential to executing the department's mission and achieving its
transformation goals.

References

Visible links
  19. http://www.gao.gov/cgi-bin/getrpt?GAO-07-310
  20. http://www.gao.gov/cgi-bin/getrpt?GAO-07-310
  21. http://www.gao.gov/cgi-bin/getrpt?GAO-07-424
  22. http://www.gao.gov/cgi-bin/getrpt?GAO-07-564
  23. http://www.gao.gov/cgi-bin/getrpt?GAO-02-373SP
  24. http://www.gao.gov/cgi-bin/getrpt?GAO-07-310
  25. http://www.gao.gov/cgi-bin/getrpt?GAO-03-119
  26. http://www.gao.gov/cgi-bin/getrpt?GAO-05-207
  27. http://www.gao.gov/cgi-bin/getrpt?GAO-07-310
  28. http://www.gao.gov/cgi-bin/getrpt?GAO-01-263
  29. http://www.gao.gov/cgi-bin/getrpt?GAO-07-310
  30. http://www.gao.gov/cgi-bin/getrpt?GAO-04-702
  31. http://www.gao.gov
  32. mailto:[email protected]
  33. mailto:[email protected]
  34. http://www.gao.gov/
  35. http://www.gao.gov/
  36. http://www.gao.gov/fraudnet/fraudnet.htm
  37. mailto:[email protected]
  38. mailto:[email protected]
  39. mailto:[email protected]
  40. http://www.gao.gov/cgi-bin/getrpt?GAO-06-598T
  41. http://www.gao.gov/cgi-bin/getrpt?GAO-07-833T
  42. http://www.gao.gov/cgi-bin/getrpt?GAO-05-805
  43. http://www.gao.gov/cgi-bin/getrpt?GAO-06-296
  44. http://www.gao.gov/cgi-bin/getrpt?GAO-04-586
  45. http://www.gao.gov/cgi-bin/getrpt?GAO-03-1083
  46. http://www.gao.gov/cgi-bin/getrpt?GAO-06-580
  47. http://www.gao.gov/cgi-bin/getrpt?GAO-02-373SP
  48. http://www.gao.gov/cgi-bin/getrpt?GAO-04-39
  49. http://www.gao.gov/cgi-bin/getrpt?GAO-06-86
  50. http://www.gao.gov/cgi-bin/getrpt?GAO-07-139
  51. http://www.gao.gov/cgi-bin/getrpt?GAO-02-373SP
  52. http://www.gao.gov/cgi-bin/getrpt?GAO-07-425
  53. http://www.gao.gov/cgi-bin/getrpt?GAO-07-425
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