Information Management: The National Archives and Records	 
Administration's Fiscal Year 2007 Expenditure Plan (27-JUL-07,	 
GAO-07-987).							 
                                                                 
Since 2001, the National Archives and Records Administration	 
(NARA) has been working to acquire the Electronic Records	 
Archives (ERA) system. As required by law, the agency submitted  
its fiscal year 2007 expenditure plan to congressional		 
appropriations committees, seeking the release of $23.4 million  
for the development of the system. GAO's objectives in reviewing 
the expenditure plan were to (1) determine the extent to which	 
the expenditure plan satisfied the legislative conditions	 
specified in the appropriations act; (2) determine the extent to 
which NARA has implemented GAO's prior recommendations; and (3)  
provide any other observations about the expenditure plan and the
ERA acquisition. GAO reviewed the expenditure plan and analyzed  
it against the legislative conditions and assessed NARA's	 
progress in addressing prior recommendations. In May 2007, GAO	 
briefed staff of the Senate subcommittee and sent a copy of the  
briefing to the House and Senate subcommittee staffs.		 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-987 					        
    ACCNO:   A73556						        
  TITLE:     Information Management: The National Archives and Records
Administration's Fiscal Year 2007 Expenditure Plan		 
     DATE:   07/27/2007 
  SUBJECT:   Cost overruns					 
	     Electronic records archive 			 
	     Fiscal policies					 
	     Reporting requirements				 
	     Risk management					 
	     Schedule slippages 				 
	     Strategic planning 				 

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GAO-07-987

   

     * [1]Report to Congressional Committees

          * [2]July 2007

     * [3]INFORMATION MANAGEMENT

          * [4]The National Archives and Records Administration's Fiscal Year
            2007 Expenditure Plan

     * [5]Contents

          * [6]Agency Comments and Our Evaluation

     * [7]Briefing to the Senate and House Subcommittee on Financial Services
       and General Government
     * [8]Comments from the National Archives and Records Administration
     * [9]GAO Contacts and Staff Acknowledgments

Report to Congressional Committees

July 2007

INFORMATION MANAGEMENT

The National Archives and Records Administration's Fiscal Year 2007
Expenditure Plan

Contents

Letter

July 27, 2007

The Honorable Richard J. Durbin
Chairman
The Honorable Sam Brownback
Ranking Minority Member
Subcommittee on Financial Services and General Government
Committee on Appropriations
United States Senate

The Honorable Jose E. Serrano
Chairman
The Honorable Ralph Regula
Ranking Minority Member
Subcommittee on Financial Services and General Government
Committee on Appropriations
House of Representatives

As required by law, the National Archives and Records Administration
(NARA) submitted its fiscal year 2007 expenditure plan in March 2007 to
congressional appropriations committees, seeking the release of $23.4
million for the Electronic Records Archives (ERA). ERA is a major
information system that is intended to preserve and provide access to
massive volumes and formats of electronic records. ERA is to automate
NARA's records management and archiving life cycle, and is to consist of

oinfrastructure elements, including hardware and operating systems;

obusiness applications that will support the transfer, preservation,
dissemination, and management of all types of records and the preservation
of and online access to electronic records; and

oa means for public access via the Internet.

The system is to be deployed in five separate increments. Increment 1
(known as the initial operating capability) consists of two releases that
are scheduled to be completed by September 7, 2007.

Our objectives in reviewing the plan were to (1) determine whether the
plan satisfied the conditions specified in the law,^1 (2) determine the
extent to which NARA has implemented our prior recommendations, and (3)
provide any other observations about the expenditure plan and the ERA
acquisition.

In May 2007, we transmitted a copy of our briefing to your staffs and
briefed staff from the Senate Appropriations Subcommittee on Financial
Services and General Government on the results of our review. This report
transmits the materials used at that briefing. The full briefing
materials, including our scope and methodology, are reprinted as appendix
I. In summary, we made the following major points:

oAs of May 2007, NARA's fiscal year 2007 expenditure plan satisfied five
of the six legislative conditions, and partially satisfied the remaining
condition--that ERA conform to the agency's life cycle methodology. The
methodology requires, among other things, that the agency develop an
agencywide risk management plan. The agency developed this plan; however,
the plan had not yet been approved by NARA's senior staff and signed by
the Archivist of the United States. (This plan was subsequently approved
in July 2007.)

oNARA had implemented all prior GAO recommendations. The agency (1)
completed a baseline and target architecture, completed a plan for
transitioning from the baseline to the target architecture, and
established an architecture review board to ensure the use of NARA's
enterprise architecture across the agency; (2) revised four of five key
acquisition policies and plans to comply with the Institute of Electrical
and Electronic Engineers (IEEE) standards (as of July 2006, the remaining
plan--the ERA Risk Management Plan--was revised to comply with IEEE
standards); and (3) developed a fiscal year 2007 expenditure plan that
contains an appropriate level and scope of information needed for the
Congress to understand its plans and commitments relative to system
capabilities, benefits, schedules, and costs.

1NARAï¿½s fiscal year 2006 appropriations act, the authority and conditions of which continue
into fiscal year 2007, mandates that the agency submit an expenditure plan before obligating
fiscal 2007 funds for the ERA program. The plan must (1) meet the capital planning and
investment control review requirements established by the Office of Management and
Budget (OMB), including Circular A-11; (2) comply with NARAï¿½s enterprise architecture; (3)
conform with NARAï¿½s enterprise life cycle methodology; (4) comply with the acquisition
rules, requirements, guidelines, and system acquisition management practices of the federal
government; (5) be approved by NARA and OMB; and (6) be reviewed by GAO. See Pub.L.
No. 109-115, 119 Stat. 2396, 2486 (Nov. 30, 2005) and Revised Continuing Appropriations
Resolution for Fiscal Year 2007, Pub. L. No. 110-5, ï¿½ 2, 121 Stat. 9 (Feb. 15, 2007).

oThe ERA project experienced schedule delays and cost increases. According
to analysis performed by NARA, the project was about 2 months behind
schedule as of May 2007. In addition, the contractor projected an
estimated cost at completion that was about $570,000 over budget. Factors
contributing to the delays included low productivity of contractor
software programmers, difficulties in securing an acceptable contract to
prepare the site that is to house the system, and problems with software
integration. Although the contractor took actions to address these
factors, NARA concluded that the project schedule should be revised so
that only release 1 and limited functionality from release 2 would be
completed by the initial operating capability date of September 7, 2007.^2
The remainder of release 2--originally scheduled for delivery on September
7--would be delayed until November 6, 2007.

After we briefed your staffs, NARA and contractor officials reported that
the project had experienced additional delays and overruns. Thus, as of
July 2007:

oThe estimated date for completion of initial operating capability (IOC)
is delayed from November 6, 2007, to March 31, 2008. According to NARA,
the contractor will (1) begin incremental delivery of three IOC software
releases on September 28, 2007, and (2) complete the IOC on March 31,
2008.

oNARA and the contractor project the estimated cost at completion of the
IOC to be between $8 million and $12 million over budget.

oNARA and the contractor are in the process of negotiating additional
mitigating actions needed and changes to the project's cost and schedule.

2Release 1 is to provide the hardware, software, and communications needed as a
foundation for the system. Release 2 is to enable online transfer of electronic records to
NARA, annual transfers of records, and secure storage of electronic records in original
formats.

Agency Comments and Our Evaluation

In written comments on a draft of this report, the Archivist of the United
States stated that he was pleased to note our recognition of the progress
that NARA has made toward implementing our recommendations. These comments
are reproduced in appendix II.

The Archivist also provided an update of the efforts concerning ERA
acquisition cost and schedule. In addressing the ERA schedule, the
Archivist noted that the contractor planned to begin incremental delivery,
on September 28, 2007, of functionality leading to an initial operating
capability that would include release 1 and limited functionality from
release 2. He also noted that the contractor would deliver the remainder
of release 2 functionality in the second-quarter of fiscal year 2008.
Regarding cost, the Archivist stated that the estimated cost of the
project on September 28, 2007, would be about $2.6 million over budget.
(However, in subsequent discussions, the Chief Information Officer stated
that the estimated cost overrun of the ERA development has risen from
about $2.6 million to between $8 million and $12 million.)

The Archivist also clarified that one of the factors that contributed to
schedule delays--the preparation of the ERA site--was a government
responsibility, and that the site preparation delays had little impact on
the overall delays for the development of the ERA system. He also provided
a technical comment, which we addressed in this report as appropriate.

We are sending copies of this report to interested congressional
committees and to the Archivist of the United States. We will make copies
available to others on request. In addition, the report will be available
at no charge on the GAO Web site at http://www/gao.gov.

If you or your staffs have any questions concerning this report, please
call me at 202-512-6240; I can also be reached by e-mail at
[10][email protected] . Contact points for our Offices of Congressional
Relations and Public Affairs may be found on the last page of this report.
GAO staff who made major contributions to this report are listed in
appendix III.

Linda D. Koontz
Director, Information Management Issues

Appendix I:  Briefing to the Senate and House Subcommittee on Financial Services and
General Government

Appendix II:  Comments from the National Archives and Records Administration

Appendix III:  GAO Contacts and Staff Acknowledgments

GAO Contacts

Linda D. Koontz, (202) 512-6240 or [11][email protected]

Staff Acknowledgments

In addition to the contact named above, key contributions to this report
were made by Mirko J. Dolak, Assistant Director; Nabajyoti Barkakati;
Barbara S. Collier; Marisol Cruz; Neil J. Doherty; Pamlutricia Greenleaf;
and Amos A. Tevelow.

(310792)

[12]www.gao.gov/cgi-bin/getrpt?GAO-07-987 .

To view the full product, including the scope
and methodology, click on the link above.

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

Highlights of [13]GAO-07-987 , a report to congressional committees

July 2007

INFORMATION MANAGEMENT

The National Archives and Records Administration's Fiscal Year 2007
Expenditure Plan

Since 2001, the National Archives and Records Administration (NARA) has
been working to acquire the Electronic Records Archives (ERA) system. As
required by law, the agency submitted its fiscal year 2007 expenditure
plan to congressional appropriations committees, seeking the release of
$23.4 million for the development of the system.

GAO's objectives in reviewing the expenditure plan were to (1) determine
the extent to which the expenditure plan satisfied the legislative
conditions specified in the appropriations act; (2) determine the extent
to which NARA has implemented GAO's prior recommendations; and (3) provide
any other observations about the expenditure plan and the ERA acquisition.
GAO reviewed the expenditure plan and analyzed it against the legislative
conditions and assessed NARA's progress in addressing prior
recommendations.

In May 2007, GAO briefed staff of the Senate subcommittee and sent a copy
of the briefing to the House and Senate subcommittee staffs.

[14]What GAO Recommends

At this time, GAO is making no recommendations. However, continued agency
attention will be important to help ensure the success of the project. In
commenting on a draft of this report, the Archivist provided an update
concerning the ERA cost and schedule.

As of May 2007, NARA's fiscal year 2007 expenditure plan fully satisfied
five of the six legislative conditions and partially satisfied the
remaining condition--that ERA conform to the agency's life cycle
methodology. This methodology requires, among other things, that the
agency develop an agencywide risk management plan. The agency developed
this plan; however, it had not been approved by senior staff and signed by
the Archivist of the United States. This plan was subsequently approved in
July 2007.

NARA implemented all prior GAO recommendations. The agency (1) established
a baseline and target architecture, a plan to transition from the baseline
to the target, and an architecture review board; (2) revised four of five
key acquisition policies and plans to comply with appropriate standards;
and (3) developed a fiscal year 2007 expenditure plan that contains an
appropriate level and scope of information needed for the Congress to
understand its plans and commitments relative to system capabilities,
benefits, schedules, and costs.

The ERA project experienced schedule delays and cost increases. According
to NARA's analysis, the project was about 2 months behind schedule as of
May 2007. In addition, the contractor projected the estimated cost at
completion of the initial operating capability (IOC) to be about $570,000
over budget. Factors contributing to the delays included low productivity
of contractor software programmers, difficulties in securing an acceptable
contract to prepare the site that is to house the system, and problems
with software integration. Although the contractor took actions to address
the factors causing these delays and overruns, NARA concluded that the
project schedule should be revised so that only limited functionality
would be available by the initial operating capability date of September
7, 2007.

Subsequent to the GAO briefing, NARA officials and the contractor reported
that the project had experienced additional delays and overruns. Thus, as
of July 2007, the estimated date for completion of the IOC is delayed to
March 31, 2008. NARA officials and the contractor project the estimated
cost at completion the initial operating capability to be between $8 and
$12 million over budget. They are also in the process of negotiating
additional mitigating actions needed and changes to the project's cost and
schedule.

References

Visible links
  10. mailto:[email protected]
  11. mailto:[email protected]
  12. http://www.gao.gov/cgi-bin/getrpt?GAO-07-987
  13. http://www.gao.gov/cgi-bin/getrpt?GAO-07-987
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