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Highlights

GAO discussed the Resolution Trust Corporation's (RTC) management of its Real Estate Owned Asset Management System, which tracks RTC management and disposal of real estate assets. GAO noted that: (1) RTC strengthened its information resources management (IRM) activities by developing strategic IRM principles and systems architecture; (2) the absence of adequate management planning and controls could result in cost overruns, schedule delays, and delivery of systems that do not meet mission needs; and (3) a broad contract could lock RTC into a technology solution before it completes its strategic IRM planning and formulation of systems architecture. GAO believes that: (1) RTC actions to develop its IRM framework are steps in the right direction; (2) the broad scope of the contract could prematurely establish the foundation for all RTC systems; and (3) sound management principles would minimize the risk of incurring unnecessary costs, long delays, and elusive benefits.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Resolution Trust Corporation 1. Before awarding the Real Estate Owned Asset Management System contract, RTC should develop a strategic IRM plan and systems architecture to meet its information needs.
Closed - Implemented
RTC prepared a strategic IRM plan and systems architecture in December 1990, 1 month before the REOMS contract was awarded in January 1991. However, the plan and architecture were incomplete in that they did not show how corporate data would flow or RTC systems, including the REOMS system, would fit together to accomplish the RTC mission.
Resolution Trust Corporation 2. Before awarding the Real Estate Owned Asset Management System contract, RTC should ensure that the system requirements and technical approach for automating its real estate asset information and other information needs are in accordance with this plan and architecture.
Closed - Implemented
In February 1991, after the contract was awarded, RTC established a REOMS task force to define its real estate asset information needs and system requirements. However, this task force never formally defined REOMS system requirements or identify REOMS information and system needs at all operating levels. Until these needs are identified and assessed, RTC will not know all the functions needed.
Resolution Trust Corporation 3. Before awarding the Real Estate Owned Asset Management System contract, RTC should establish a project management process for tracking the contractor's progress, providing direction to the contractor's efforts, and formally accepting the system.
Closed - Implemented
RTC established a project management process at the time of the contract award to track the contractor's progress, provide direction to the contractor's efforts, and formally accept the system deliverables and the system upon implementation.

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