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    Subject Term: "Actual costs"

    12 publications with a total of 28 open recommendations including 9 priority recommendations
    Director: Timothy J. DiNapoli
    Phone: (202) 512-4841

    1 open recommendations
    Recommendation: The Under Secretary of Defense for Acquisition, Technology and Logistics should identify the specific types of information that would best meet the department's needs and, based on that determination, collect and analyze relevant data after contract performance is sufficiently complete to determine the extent to which contracts with incentives achieved their desired outcomes.

    Agency: Department of Defense: Office of the Secretary of Defense: Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Director: Michele Mackin
    Phone: (202) 512-4841

    2 open recommendations
    Recommendation: To ensure that the Coast Guard makes effective use of its resources, specifically regarding its budget, the Secretary of DHS should direct the Commandant of the Coast Guard to update the Joint Surface Engineering Change Process Guide to require a documented cost analysis to provide decision makers adequate data to make informed decisions regarding the expected costs and when it is most cost effective to install design changes.

    Agency: Department of Homeland Security: United States Coast Guard
    Status: Open

    Comments: The Coast Guard concurred with our recommendation and is working to determine a consistent, repeatable cost benefit analysis methodology that will be considered with other factors such as safety, schedule impacts, operational impacts, and crew impacts and technical aspects for making design change decisions. This methodology will be incorporated into the Coast Guard's next update to its Joint Surface Engineering Change Process Guide scheduled for December 2017.
    Recommendation: To ensure that the Coast Guard makes effective use of its resources, specifically regarding its budget, the Secretary of DHS should direct the Commandant of the Coast Guard to periodically update standard support levels to account for actual expenditures so that the Coast Guard follows best practices and to provide decision makers an understanding of the actual depot-level maintenance funds required for Coast Guard assets.

    Agency: Department of Homeland Security: United States Coast Guard
    Status: Open

    Comments: The Coast Guard concurred with our recommendation and is working to establish of formal process to use actual depot maintenance expenditure data to inform and update a vessel's life cycle cost estimate. For vessels in sustainment, the Coast Guard is developing a plan to periodically review depot maintenance expenditures and how they should affect the depot maintenance budget. These processes are expected to be completed by October 2017.
    Director: Valerie Melvin
    Phone: (202) 512-6304

    2 open recommendations
    Recommendation: To provide greater transparency in the reporting of FOIA litigation costs, Congress could consider requiring Justice to provide a cost estimate for collecting and reporting information on costs incurred when defending lawsuits in which the plaintiffs prevailed.

    Agency: Congress
    Status: Open

    Comments: Congress has not yet considered if it plans to amend FOIA regarding the reporting of costs for defending lawsuits in which the plaintiffs prevailed.
    Recommendation: Congress could consider amending the act to require Justice to reflect in its Litigation and Compliance reports, changes in the award of attorneys' fees and costs resulting from the appeals process and settlement agreements between agencies and plaintiffs, if deemed to be cost-effective.

    Agency: Congress
    Status: Open

    Comments: Congress has not yet considered if it plans to amend FOIA to require Justice to make changes to its Litigation and Compliance reports.
    Director: Robert Goldenkoff
    Phone: (202) 512-2757

    3 open recommendations
    including 3 priority recommendations
    Recommendation: To help ensure the Bureau produces a reliable cost estimate for the 2020 Census, the Secretary of Commerce and Under Secretary for Economic Affairs should direct the Census Bureau to take the following steps to meet the characteristics of a high-quality estimate: (1) Comprehensive--among other practices, ensure the estimate includes all life-cycle costs and documents all cost-influencing assumptions. (2) Well-documented--among other practices, ensure that its planned documentation plan captures the source data used; contains the calculations performed and the estimating methodologies used for each element; and describes step by step how the estimate was developed. (3) Accurate--among other practices, ensure the estimating technique for each cost element is used appropriately and that variances between planned and actual cost are documented, explained, and reviewed. (4) Credible--among other practices, ensure the estimate includes a sensitivity analysis, major cost elements are cross-checked to see whether results are similar, and an independent cost estimate is conducted to determine whether other estimating methods produce similar results.

    Agency: Department of Commerce
    Status: Open
    Priority recommendation

    Comments: Commerce agreed with this recommendation. The Bureau should provide a cost estimate more current than the October 2015 estimate and ensure that the estimate is comprehensive, well-documented, accurate, and credible. In doing this the Bureau should consult the GAO's cost assessment guide (GAO-09-3SP) and Standards for Internal Control in the Federal Government (GAO-14-704G). High-quality estimates will: explicitly consider all life-cycle costs and assumptions, offer a clear step-by-step account of the methods and data sources used to compile the estimate, ensure the proper estimation techniques are used, reconcile any variances between actual and estimated costs, and allow cross-checking with independent cost estimates as verification of results. In August 2016, the Bureau laid out its action plan to implement this recommendation. The Bureau planned to develop a Cost Estimation Enhancement Plan that would mature the 2020 Census cost estimate and its associated processes via a series of 3-month sprints. According to the Bureau, the areas targeted for improvement were (I) Documentation, (2) Process, (3) Cost Estimate, and (4) Cost Integration. The Bureau's action plan reported the following deliverables: Incorporating the Decennial Census Management Division program work breakdown structure into the 2020 Census Cost Estimate (target completion was Q4 FY 2016); developing a formal basis of estimate document to address the cost elements, process flow, and calculations for the 2020 Census Cost Estimate (Q2 FY 2017); internal communication and training efforts to ensure these changes are widely shared and communicated (Q2 FY 2017); engaging with internal stakeholders to increase the amount of source and derivation documentation for estimates/model parameters currently based on expert judgment (Q4 FY 2016); developing a formal BOE document to address how 2020 Census program risk and uncertainty are dealt with in the 2020 Census Cost Estimate (Q2 FY 2017); and regularly comparing the results of the independent cost estimate conducted by the Office of Cost Estimation, Analysis and Assessment to the 2020 Census Cost Estimate and investigate/reconcile any significant differences (Q3 FY 2017). As of July 2017, we await this and other documentation from Bureau that may address this recommendation.
    Recommendation: To further ensure the credibility of data used in cost estimation, the Secretary of Commerce and Under Secretary for Economic Affairs should direct the Census Bureau to establish clear guidance on when information for cost assumptions can and should be changed as well as the procedures for documenting such changes and traceable sources for information being used.

    Agency: Department of Commerce
    Status: Open
    Priority recommendation

    Comments: Commerce agreed with this recommendation. The Bureau should implement processes for controlling and changing cost assumptions. These processes should include methods for evaluating the justification for any changes and documentation requirements that clearly show the information changed and the basis for the change. In August 2016, Bureau officials laid out their action plan to address this recommendation. The action plan described developing a Decennial Census Cost Estimation and Analysis Process and supporting policy to improve the maturity levels in this area and mentioned developing a draft internal communication and training plan for staff--target date is Q2 FY 2017. As of July 2017, we await this and other documentation from Bureau that may address this recommendation.
    Recommendation: To ensure Bureau and congressional confidence that the Bureau's budgeted contingencies are at appropriate levels, the Secretary of Commerce and Under Secretary for Economic Affairs should direct the Census Bureau to improve control over how risk and uncertainty are accounted for and communicated with the Bureau's decennial cost estimation process, such as by implementing and institutionalizing processes or methods for doing so with clear guidance.

    Agency: Department of Commerce
    Status: Open
    Priority recommendation

    Comments: Commerce agreed with this recommendation. The Bureau should ensure that its budget for contingencies reflects an accurate accounting of risk and uncertainty. In doing this, the Bureau should improve controls over risk and uncertainty accounting, ensure that risk accounting informs any relevant budgets and cost estimates, and institutionalize these controls by providing clear methods for their use. In August 2016, the Bureau laid out its action plan to implement this recommendation, describing that it would ensure regular review of 2020 Census program risks that would have high cost impacts if they occur and ensure estimates of these impacts are accounted for and documented in each iteration of the life-cycle cost estimates--target date is Q2 FY 2017. As of July 2017, we await documentation from Bureau that may address this recommendation.
    Director: Shea, Rebecca
    Phone: (202) 512-2834

    1 open recommendations
    Recommendation: To enhance transparency and allow for more informed decision making related to VA's major medical facility leases, the Secretary of Veterans Affairs should annually assess how VA has benefited from flexibilities afforded by leasing its major medical facilities and use information from these assessments in its annual capital plans.

    Agency: Department of Veterans Affairs
    Status: Open

    Comments: On September 30, 2016, VA reported to GAO that as VA develops its fiscal year 2018 Budget Request to Congress, the Department will continue assessing the benefits of its major medical lease program and will include the related documentation in its capital budget request.
    Director: William J. Cordrey
    Phone: (404) 679-1873

    2 open recommendations
    Recommendation: To help provide better visibility of DOD's financial management status for decision makers and to improve oversight of DOD's audit readiness efforts to strengthen internal controls and improve financial practices and processes, the Under Secretary of Defense (Comptroller) should, while developing other formatting changes to be made in future reports, expand the semiannual FIAR Plan Status Report to include the extent to which assertions of audit readiness have been made without assurance that related controls are effective and the details of remediation activities taken and planned to correct the known internal control deficiencies.

    Agency: Department of Defense: Under Secretary of Defense (Comptroller)
    Status: Open

    Comments: DOD concurred with this recommendation and stated that its future FIAR Plan Status Reports will provide an increased level of detail regarding critical aspects of achieving audit readiness. DOD further stated that it would use the recommendation to develop and, where appropriate, enhance future semiannual Status Reports to include greater visibility into the progress and impediments related to PP&E audit readiness. Specifically, DOD stated that the Office of the Under Secretary of Defense (Comptroller) will work with the military departments to ensure that their audit readiness plans include specific milestones for addressing internal control deficiencies. The Comptroller expects completion by the November 2017 FIAR report. We will continue to evaluate DOD's actions to address this recommendation.
    Recommendation: To help provide better visibility of DOD's financial management status for decision makers and to improve oversight of DOD's audit readiness efforts to strengthen internal controls and improve financial practices and processes, the Under Secretary of Defense (Comptroller) should, while developing other formatting changes to be made in future reports, expand the semiannual FIAR Plan Status Report to include the details of military services' actions taken and progress made toward correcting the control deficiencies underlying the reported dealbreakers.

    Agency: Department of Defense: Under Secretary of Defense (Comptroller)
    Status: Open

    Comments: DOD concurred with this recommendation and stated that its future FIAR Plan Status Reports will provide an increased level of detail regarding critical aspects of achieving audit readiness. DOD further stated that it would use the recommendation to develop and, where appropriate, enhance future semiannual Status Reports to include greater visibility into the progress and impediments related to PP&E audit readiness. Specifically, DOD stated that the Office of the Under Secretary of Defense (Comptroller) will work with the military departments to ensure that their audit readiness plans include specific milestones for addressing internal control deficiencies. The Comptroller expects completion by the November 2017 FIAR report. We will continue to evaluate DOD's actions to address this recommendation.
    Director: Dave Wise
    Phone: (202) 512-2834

    3 open recommendations
    including 1 priority recommendation
    Recommendation: As part of its lease reform efforts and to increase possible cost savings, the GSA Administrator should fully explore strategies to enhance competition for GSA leases by encouraging tenant agencies to broaden their allowable geographic areas and to limit their specialized building requirements to those justifiably unique to the federal government.

    Agency: General Services Administration
    Status: Open

    Comments: When we confirm the action that GSA has taken to address the recommendation, we will update its status.
    Recommendation: As part of its lease reform efforts and to increase possible cost savings, the GSA Administrator should seek to reduce leasing costs for federal agencies by exploring, with relevant stakeholders, the possibility of loaning unobligated Federal Buildings Fund balances to agencies to cover tenant improvement costs that would otherwise have to be financed for new leases. If GSA finds that, with sufficient controls in place, tenant improvements can be safely funded this way, it should participate in the development of a legislative proposal to request that Congress make the necessary budget authority available.

    Agency: General Services Administration
    Status: Open
    Priority recommendation

    Comments: GSA agreed with the recommendation to reduce leasing costs for federal agencies by exploring the possibility of loaning unobligated Federal Building Fund (FBF) balances to agencies to cover tenants' improvement costs. In June 2016, GSA told us research is under way to establish the parameters of the annual financial impact of tenant improvement allowances on the unobligated Federal Buildings Fund balance. GSA's considerations will include defining the impact to the FBF balance of financing agencies' tenant improvement allowances, which would compete with the limited dollars available for new construction and major repairs and alterations. As of October 20, 2016, GSA had not provided GAO with additional updates to the status of this recommendation.
    Recommendation: As part of its lease reform efforts and to increase possible cost savings, the GSA Administrator should seek to reduce leasing costs for federal agencies by allowing tenant agencies the option of choosing non-cancelable occupancy agreements with lower administrative costs, particularly for leases with firm terms of 5 years or less.

    Agency: General Services Administration
    Status: Open

    Comments: When we confirm the action that GSA has taken to address the recommendation, we will update its status.
    Director: Beryl H. Davis
    Phone: (202) 512-2623

    3 open recommendations
    Recommendation: To strengthen BLM's controls and reasonably assure accountability over mining law program expenditures, both payroll and nonpayroll, the Secretary of the Interior should direct the Director of the Bureau of Land Management to establish procedures for regular and timely communication to all BLM employees on policy and procedural changes affecting the mining law program's expenditure-related processes.

    Agency: Department of the Interior
    Status: Open

    Comments: In support of closing this recommendation, officials from the Department of Interior's (DOI) Bureau of Land Management (BLM) provided us with an example of its timely communication (dated September 20, 2016) to BLM employees to announce the issuance of its revised Fund Code Handbook (dated August 12, 2016). They also re-iterated their policy about sending updates regarding guidance changes, which is included in its directives handbook. We reviewed the directives handbook and verified that it contains guidance for communicating policy and procedural changes affecting the mining law program's expenditure-related processes. However, we were unable to determine what procedures were established to ensure the regular and timely communication to all employees of policy and procedural changes take place. While we see the directives handbook is a good start towards meeting the intent of our recommendation, we did not see evidence within the directives handbook that requires these communications to be sent to employees within a specific timeframe (e.g., within 30 days of issuance of policy and procedural changes). We will continue to monitor the agency's actions to address this recommendation.
    Recommendation: To strengthen BLM's controls and reasonably assure accountability over mining law program expenditures, both payroll and nonpayroll, the Secretary of the Interior should direct the Director of the Bureau of Land Management to develop and implement a training program that provides all BLM employees with an understanding of the use of the mining law program funds to reasonably assure uniform application and effective execution of BLM policies and procedures. This training, to be successful, should be provided to all BLM employees who charge the program and communicate clear instructions on how employees should charge, document, and review transactions related to mining law program expenditures.

    Agency: Department of the Interior
    Status: Open

    Comments: The Department of Interior's (DOI) Bureau of Land Management (BLM) agreed with our recommendation. On September 22, 2016, DOI's BLM informed us that the training material that will address this recommendation has been developed and reviewed by the BLM's Mining Law Administration Program and Budget leads. The BLM's National Training Center is currently preparing the training to be posted to "DOI Learn", the Department of the Interior's training portal. Once the training is ready for use, BLM anticipates issuing an Information Memorandum that directs targeted staff to complete the training. At the present time, the training is expected to be ready by end of fiscal year 2017. We will continue to monitor the agency's actions to address this recommendation.
    Recommendation: To strengthen BLM's controls and reasonably assure accountability over mining law program expenditures, both payroll and nonpayroll, the Secretary of the Interior should direct the Director of the Bureau of Land Management to develop and implement internal control activities for regularly monitoring compliance with expenditure-related policies and procedures in the mining law program. These activities should, at a minimum, (1) determine whether transactions were recorded to the correct subactivity and verified by an approving official and (2) assure that documentary evidence of review is maintained, as required in BLM's policies and procedures.

    Agency: Department of the Interior
    Status: Open

    Comments: The Department of Interior's (DOI) Bureau of Land Management (BLM) agreed with our recommendation. On September 22, 2016, DOI's BLM informed us that DOI's BLM is developing a repeatable standardized annual internal control process which will include validation of Mining Law Administration Program (MLAP) expenditure transactions utilizing a "canned" report that is generated from the Financial Business Management System (FBMS), which is DOI's BLM's financial accounting system. This process will be incorporated into an existing DOI's BLM-wide budgetary review cycle requirement, such as the formal mid-year or 3rd quarter fiscal year reviews. The MLAP expenditures report will be distributed to DOI?s BLM state offices with instructions to obtain an adequate sample size from which to test MLAP fund transactions for compliance with Bureau policy. State budget officials will be required to identify their findings, corrective actions and certify the results from this exercise. It is anticipated that this requirement will be disseminated to the DOI's BLM state offices by Instruction Memorandum. The source report to be used for these reviews is still in the development stage and it is expected to be completed by end of fiscal year 2017. We will continue to monitor the agency's actions to address this recommendation.
    Director: Maurer, Diana C
    Phone: (202) 512-9627

    6 open recommendations
    including 5 priority recommendations
    Recommendation: The Secretary of Homeland Security should designate the headquarters consolidation program a major acquisition, consistent with DHS acquisition policy, and apply DHS acquisition policy requirements.

    Agency: Department of Homeland Security
    Status: Open
    Priority recommendation

    Comments: In alignment with GAO's recommendation, on September 16, 2014, DHS issued an Acquisition Decision Memorandum designating the DHS-funded portions of the headquarters consolidation program as a Major Acquisition Program to be overseen by the departmental Acquisition Review Board (ARB). DHS made further progress implementing this recommendation by conducting and documenting an ARB of the program on November 15, 2016. The ARB process provided DHS greater oversight of headquarters consolidation, and provided a forum for officials to consider a wide range of issues affecting consolidation efforts, such as funding and project scope. However, DHS and General Services Administration (GSA) were required to revise their cost and schedule estimates subsequent to the ARB's review. In addition, as of March 2017, DHS, in coordination with GSA, had not submitted the report to Congress on DHS Headquarters Consolidation mandated by Pub. L. No. 114-150. GAO will reassess the status of this recommendation after cost and schedule estimates are finalized and DHS and GSA submit the required report to Congress, i.e., when there is more certainty about the future direction of the project overall and DHS's funded portion in particular.
    Recommendation: In order to improve transparency and allow for more informed decision making by congressional leaders and DHS and GSA decision-makers, before requesting additional funding for the DHS headquarters consolidation project, the Secretary of Homeland Security and the Administrator of the General Services Administration should work jointly to conduct the following assessments and use the results to inform updated DHS headquarters consolidation plans: (1) a comprehensive needs assessment and gap analysis of current and needed capabilities that take into consideration changing conditions, and (2) an alternatives analysis that identifies the costs and benefits of leasing and construction alternatives for the remainder of the project and prioritizes options to account for funding instability.

    Agency: Department of Homeland Security
    Status: Open
    Priority recommendation

    Comments: The Department of Homeland Security Headquarters Consolidation Accountability Act of 2015 (Pub. L. No. 114-150) was enacted on April 29, 2016. Among other things, the act requires DHS, in coordination with GSA, to submit information to Congress about DHS headquarters consolidation efforts not later than 120 days of enactment. As of March 2017, DHS and GSA had not submitted the information to Congress required by Pub. L. No. 114-150. Officials stated that the information would be submitted as soon as possible, but exact timeframes were uncertain given ongoing project deliberations and internal reviews. Required information includes a comprehensive assessment of property and facilities utilized by DHS in the National Capital Region, and an analysis that identifies the costs and benefits of leasing and construction alternatives for the remainder of the consolidation project. DHS and GSA have made significant progress in developing a revised plan for headquarters consolidation since 2014, including the completion of a business case analysis to support the new plan. GAO will review the latest information on DHS headquarters consolidation efforts when it is provided to Congress, and will assess the materials in the context of this recommendation at that time. Continued DHS and GSA attention to following leading capital planning practices is critical given the project's multi-billion dollar cost and impact on future departmental operations.
    Recommendation: In order to improve transparency and allow for more informed decision making by congressional leaders and DHS and GSA decision-makers, before requesting additional funding for the DHS headquarters consolidation project, the Secretary of Homeland Security and the Administrator of the General Services Administration should work jointly to conduct the following assessments and use the results to inform updated DHS headquarters consolidation plans: (1) a comprehensive needs assessment and gap analysis of current and needed capabilities that take into consideration changing conditions, and (2) an alternatives analysis that identifies the costs and benefits of leasing and construction alternatives for the remainder of the project and prioritizes options to account for funding instability.

    Agency: General Services Administration
    Status: Open
    Priority recommendation

    Comments: GSA agreed with both recommendations to conduct a comprehensive needs assessment and gap analysis and to update cost and schedule estimates. The Department of Homeland Security Headquarters Consolidation Accountability Act of 2015 (Pub. L. No. 114-150), enacted on April 29, 2016, mirrors GAO recommendations in this area. Among other things, the act requires DHS, in coordination with GSA, to submit information to Congress about DHS's headquarters consolidation efforts not later than 120 days of enactment. As of March 2017, DHS and GSA had not submitted the information to Congress required by Pub. L. No. 114-150. Officials stated that the information would be submitted as soon as possible, but exact timeframes were uncertain given ongoing project deliberations and internal reviews. Required information includes a comprehensive needs assessment, a costs and benefits analysis, and updated cost and schedule estimates. Furthermore, the act requires the Comptroller General to evaluate the cost and schedule estimates not later than 90 days after their submittal to Congress. DHS and GSA have made significant progress in developing an Enhanced Plan for headquarters consolidation since 2014, including the completion of a business case analysis to support the new plan. In addition, GSA is leading efforts to revise the project's cost and schedule estimates, and according to GSA officials, the revised figures will take into account GAO's leading cost-estimation practices. We will review the latest information on DHS's headquarters consolidation efforts when it is provided to Congress, and will assess the materials in the context of these recommendations at that time. Continued DHS and GSA attention to following leading practices for capital planning and cost and schedule estimation is critical given the project's multi-billion dollar cost and impact on future departmental operations.
    Recommendation: In order to improve transparency and allow for more informed decision making by congressional leaders and DHS and GSA decision-makers, before requesting additional funding for the DHS headquarters consolidation project, after revising the DHS headquarters consolidation plans, the Secretary of Homeland Security and the Administrator of the General Services Administration should work jointly to develop revised cost and schedule estimates for the remaining portions of the consolidation project that conform to GSA guidance and leading practices for cost and schedule estimation, including an independent evaluation of the estimates.

    Agency: Department of Homeland Security
    Status: Open
    Priority recommendation

    Comments: The Department of Homeland Security Headquarters Consolidation Accountability Act of 2015 (Pub. L. No. 114-150) was enacted on April 29, 2016. Among other things, the act requires DHS, in coordination with GSA, to submit information to Congress about DHS headquarters consolidation efforts not later than 120 days of enactment. As of March 2017, DHS and GSA had not submitted the information to Congress required by Pub. L. No. 114-150. Officials stated that the information would be submitted as soon as possible, but exact timeframes were uncertain given ongoing project deliberations and internal reviews. Required information includes updated cost and schedule estimates for the consolidation project that are consistent with GAO's recommendations in GAO-14-648. Furthermore, the act requires the Comptroller General to evaluate the cost and schedule estimates not later than 90 days after their submittal to Congress. GSA is leading efforts to revise project cost and schedule estimates, and according to GSA officials, the revised figures will take into account GAO's leading estimation practices. GAO will review the latest DHS headquarters consolidation cost and schedule estimates when they are provided to Congress, and will assess the materials in the context of this recommendation at that time. Continued DHS and GSA attention to following leading cost and schedule estimation practices is critical given the project's multi-billion dollar cost and impact on future departmental operations.
    Recommendation: In order to improve transparency and allow for more informed decision making by congressional leaders and DHS and GSA decision-makers, before requesting additional funding for the DHS headquarters consolidation project, after revising the DHS headquarters consolidation plans, the Secretary of Homeland Security and the Administrator of the General Services Administration should work jointly to develop revised cost and schedule estimates for the remaining portions of the consolidation project that conform to GSA guidance and leading practices for cost and schedule estimation, including an independent evaluation of the estimates.

    Agency: General Services Administration
    Status: Open
    Priority recommendation

    Comments: The Department of Homeland Security Headquarters Consolidation Accountability Act of 2015 (Pub. L. No. 114-150) was enacted on April 29, 2016. Among other things, the act requires DHS, in coordination with GSA, to submit information to Congress about DHS headquarters consolidation efforts not later than 120 days of enactment. As of March 2017, DHS and GSA had not submitted the information to Congress required by Pub. L. No. 114-150. Officials stated that the information would be submitted as soon as possible, but exact timeframes were uncertain given ongoing project deliberations and internal reviews. Required information includes updated cost and schedule estimates for the consolidation project that are consistent with GAO's recommendations in GAO-14-648. Furthermore, the act requires the Comptroller General to evaluate the cost and schedule estimates not later than 90 days after their submittal to Congress. GSA is leading efforts to revise project cost and schedule estimates, and according to GSA officials, the revised figures will take into account GAO's leading estimation practices. GAO will review the latest DHS headquarters consolidation cost and schedule estimates when they are provided to Congress, and will assess the materials in the context of this recommendation at that time. Continued DHS and GSA attention to following leading cost and schedule estimation practices is critical given the project's multi-billion dollar cost and impact on future departmental operations.
    Recommendation: Congress should consider making future funding for the St. Elizabeths project contingent upon DHS and GSA developing a revised headquarters consolidation plan, for the remainder of the project, that conforms with leading practices and that (1) recognizes changes in workplace standards, (2) identifies which components are to be colocated at St. Elizabeths and in leased and owned space throughout the National Capital Region, and (3) develops and provides reliable cost and schedule estimates.

    Agency: Congress
    Status: Open

    Comments: The Department of Homeland Security Headquarters Consolidation Accountability Act of 2015 (Pub. L. No. 114-150) was enacted on April 29, 2016. Among other things, the act requires DHS, in coordination with GSA, to submit information to Congress about DHS headquarters consolidation efforts not later than 120 days of enactment. As of March 2017, DHS and GSA had not submitted the information to Congress required by Pub. L. No. 114-150. Officials stated that the information would be submitted as soon as possible, but exact timeframes were uncertain given ongoing project deliberations and internal reviews. Required information includes: a comprehensive assessment of property and facilities utilized by DHS in the National Capital Region; an analysis that identifies the costs and benefits of leasing and construction alternatives for the remainder of the consolidation project; and updated cost and schedule estimates for the project that are consistent with GAO's recommendations in GAO-14-648. Furthermore, the act requires the Comptroller General to evaluate the cost and schedule estimates not later than 90 days after their submittal to Congress. A comprehensive report to Congress on DHS headquarters consolidation, along with reliable project cost and schedule estimates, could inform Congress's funding decisions.
    Director: Cary Russell
    Phone: (202) 512-5431

    1 open recommendations
    Recommendation: To improve DOD's process for setting its standard fuel price, the Secretary of Defense should direct the Office of the Under Secretary of Defense (Comptroller), in coordination with the Defense Logistics Agency (DLA), to document its assumptions, including providing detailed rationale for how it estimates each of these components.

    Agency: Department of Defense
    Status: Open

    Comments: DOD partially concurred with our recommendation but has not yet completed actions to fully address the recommendation. Consistent with our recommendation, DOD reevaluated its methodology for establishing the fiscal year 2017 standard price and documented parts of the methodology it used. Specifically, DOD detailed the various options it considered, the reasons why it chose the methodology it used, and the calculations it used to arrive at its estimated standard price in an internal Office of the Under Secretary of Defense (Comptroller) memorandum. However, DOD has not documented a process for establishing the standard price in three areas. First, DOD has not documented a formalized process that describes the steps it will take on an annual basis to determine the standard price for future fiscal years. Second, documentation detailing the options DOD considered and the rationale behind the methodology it chose is not available to Congress and its fuel customers. Third, DOD has not document the formal review and approval of the new methodology by senior Comptroller officials. The DOD Comptroller official who is responsible for managing the bulk fuel program stated that the department does not have a similar formal process for determining rates for other commodities and working capital funds. Therefore, the official stated that DOD does not want to make the bulk fuel standard price determination unique and apart from these other commodities. Because of concerns with the quality and transparency of information available to Congressional decision makers and department fuel customers concerning the methodology selected each year and its application to relevant data used in estimating fuel rate prices for the next fiscal year, the Senate Armed Services Committee directed DOD to submit detailed guidance to the congressional defense committees no later than February 1, 2017 that, among other aspects, requires documentation of the rationale for using one methodology over another for estimating the next fiscal year's fuel rate price, to include the limitations and assumptions of underlying data and establishing a timeline for developing annual estimated fuel rate prices for the next fiscal year. Documenting DOD's assumptions would provide greater transparency and clarify for fuel customers and decision makers regarding the process DOD uses to set the standard price.
    Director: David A. Powner
    Phone: (202) 512-9286

    3 open recommendations
    Recommendation: To improve the reliability of reported cost and schedule variance information for major investments, the Commissioner of IRS should direct the Chief Technology Officer to report cumulative investment and investment segment cost and schedule information in the quarterly reports to Congress, consistent with the Office of Management and Budget (OMB) requirements for measuring progress towards meeting goals.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: In its fiscal year 2016 second quarter report to Congress, IRS included cumulative cost and schedule information for one of the five investments highlighted in the report. IRS stated that it was awaiting findings of our report issued in June 2016 to determine the future direction of the quarterly reporting to Congress. We will continue to monitor IRS's quarterly reporting to Congress to determine the extent to which this recommendation has been addressed.
    Recommendation: To improve the reliability of reported cost and schedule variance information for major investments, the Commissioner of IRS should direct the Chief Technology Officer to ensure that projected cost and schedule variances for in-process activities are updated monthly, for the six investments for which we reviewed monthly updates, consistent with OMB and Treasury reporting requirements, by ensuring investment staff have a consistent understanding of the information to be included in monthly reports.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: To address this recommendation, IRS provided training in October 2014, which focused on, among other things, the monthly update of investment performance information. As of July 2016, we are reviewing cost and schedule reporting for the six selected investments to determine the extent to which the training provided has improved the timeliness of cost and schedule performance reporting.
    Recommendation: To improve the reliability of reported cost and schedule variance information for major investments, until a quantitative measure of scope is developed, the Commissioner of IRS should direct the Chief Technology Officer to qualitatively report on how delivered scope compares to what was planned in its quarterly reports to Congress, for the seven investments for which we reviewed scope reporting.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: In its fiscal year 2016 second quarter report to Congress, IRS proposed a quantitative measure of scope solution for one investment; specifically, it listed specific scope elements for the Return Review Program investment and identified the elements it had implemented to date. In addition, in our June 2016, report summarizing our review of IRS's major IT investments, we noted that IRS had developed a quantitative measure of scope for two investments, although we noted that the measure could be improved by accounting for the work performed by IRS staff in accordance with best practices (see GAO-16-545). The measure used in the quarterly report to Congress and the one we noted during our recent review are positive steps. We will continue to monitor IRS's actions to address our recommendation.
    Director: Fennell, Anne-marie Lasowski
    Phone: (202) 512-3841

    1 open recommendations
    Recommendation: To improve communication between the Corps and nonfederal sponsors of flood control projects, the Secretary of Defense should direct the Chief of Engineers and Commanding General of the U.S. Army Corps of Engineers take steps to ensure that flood control project delivery teams comply with agency guidance to develop communications plans for flood control projects.

    Agency: Department of Defense
    Status: Open

    Comments: As of December 2016, GAO is awaiting action by the agency to implement this recommendation.