Recommendation: The Secretary of Defense should ensure that the Under Secretary of Defense for Research and Engineering revise its IR&D instruction to require USD (R&E) personnel to annually review defense industry IR&D investments to inform DOD's science and technology strategic planning efforts. (Recommendation 1)

Agency: Department of Defense
Status: Open

Comments: DOD concurred with this recommendation stating that USD(R&E) will investigate and revise its IR&D Instruction to require annual review of defense industry IR&D investments.

Recommendation: The Secretary of Defense should ensure that the Administrator, Defense Technical Information Center, assess and determine whether the DTIC IR&D database should require contractors to include additional information on IR&D projects, such as: (a) The IR&D project's linkage, if any, to DOD's modernization priorities; (b) The allowable category (basic research, applied research, technology development, or concept study) to which the IR&D project belongs; (c) The nature of the project as either potentially disruptive or potentially incremental research and development; and (d) The actual IR&D project costs when the project is completed. (Recommendation 2)

Agency: Department of Defense
Status: Open

Comments: DOD concurred with the recommendation stating that the DTIC Administrator will assess whether the DOD IR&D database should require contractors to include additional information on IR&D projects, and make his recommendation to the Director of Defense Research and Engineering for Research and Technology for its decision.

Recommendation: The NNSA Administrator should require the W80-4 program, when it issues its baseline cost report prior to entry into phase 6.4, to adopt a date for the delivery of a first production unit, and dates for other key program milestones, based on the program's current schedule risk analysis, or document its justification for adopting alternative schedules and milestones based on other factors. If necessary, the Administrator should alert the Secretary of Energy to the need to engage in the extension or notification processes identified in statute for adopting a first production unit delivery date after September 2025. (Recommendation 1)

Agency: Department of Energy: National Nuclear Security Administration
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The NNSA Administrator should revise the Program Execution Instruction or other related directives to require future LEPs and nuclear weapon modernization programs of similar complexity, when they issue a WDCR or baseline cost report, to establish program schedules and key milestone dates (including the FPU delivery date) on the basis of a formal schedule risk analysis that aligns with best practices, or document the justification for any decision to adopt alternative schedules and milestones based on other factors. (Recommendation 2)

Agency: Department of Energy: National Nuclear Security Administration
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The OUSD (A&S) should direct the F-35 program office to provide information that is similar to that which is statutorily required after the milestone C review to Congress ahead of the milestone C review (full-rate production decision). This submission should include an evaluation of the production risks associated with critical production processes that are not in control, reliability and maintainability (R&M) targets that are not met, and supplier readiness—particularly for those replacing Turkish suppliers, along with the steps it is taking to address those risks. (Recommendation 1)

Agency: Department of Defense
Status: Open

Comments: DOD did not concur with this recommendation, citing updates the F-35 program office provides to oversight entities within DOD. We maintain that the program office should provide these same updates to Congress as well. Without a substantive assessment highlighting specific production risks, as well as the steps DOD will take to mitigate them, Congress may not have key insights into the risks that remain with the program and to the overall effort to deliver F-35s to the warfighter. DOD has agreed to keep the Congress apprised of these matters in its quarterly briefings to the defense committees.

Recommendation: The OUSD (A&S) should direct the F-35 program office to establish a Block 4 cost estimate baseline that includes all Block 4 costs, including incurred costs and future costs in its reports to Congress as required by the NDAA for Fiscal Year 2017, so that Congress has a complete understanding of all Block 4 costs and can compare this baseline to future cost estimates and performance. (Recommendation 2)

Agency: Department of Defense
Status: Open

Comments: DOD concurred with this recommendation. In response to our report, DOD stated that future reports to Congress will include prior and future costs, outside of the Future Years Defense Program costs. As of September 15, 2020, DOD has not yet issued an updated report to Congress. We will monitor DOD's efforts to address this recommendation once it releases its next report.

Recommendation: The OUSD (A&S) should direct the F-35 program office to complete a program office level, product-oriented work breakdown structure for the next update to its Block 4 cost estimate to ensure that the estimate meets the comprehensive leading practices. (Recommendation 3)

Agency: Department of Defense
Status: Open

Comments: Though DOD did not concur with this recommendation, in response to this report, DOD agreed to evaluate moving to a program-level, product-oriented work breakdown structure in 2021. We will continue to monitor DOD's efforts to address this recommendation.

Recommendation: The OUSD (A&S) should direct the F-35 program office to conduct risk and uncertainty analyses for the next update to its Block 4 cost estimate to ensure that the estimate meets the credible leading practices. (Recommendation 4)

Agency: Department of Defense
Status: Open

Comments: DOD concurred with this recommendation. In response to this report, DOD stated that the F-35 program office estimate is aligned with the DOD's Cost Assessment and Program Evaluation's approach and methodology for performing development cost estimates. However, DOD did not identify specific actions it plans to take to include risk and uncertainty into its next Block 4 cost estimate update. We will continue to monitor any actions DOD takes in this regard.

Recommendation: The OUSD (A&S) should direct the F-35 program office to consider the results of its future technology readiness assessment of all Block 4 technologies and incorporate the cost and schedule risks of developing those technologies in the next update to its Block 4 cost estimate to ensure that the estimate meets the comprehensive leading practices. (Recommendation 5)

Agency: Department of Defense
Status: Open

Comments: DOD concurred with this recommendation. In response to this report, DOD stated that it continues to evaluate technology readiness levels for Block 4. It noted that Office of the Under Secretary of Defense for Research and Engineering would conduct and independent technology readiness assessment of the Block 4 effort, which the program would use to inform future cost estimates. In May 2020, the F-35 Program Office issued a Technology Readiness Assessment Plan for Block 4. This plan outlines an incremental assessment approach aligned with Block 4 capability drops beginning with the drop scheduled for April 2021. We will continue to monitor DOD's efforts to address this recommendation.

Recommendation: Congress should consider revising Section 224(d) of the National Defense Authorization Act for Fiscal Year 2017, Pub. L. No. 114-328, to extend DOD's Block 4 reporting requirement until all Block 4 capabilities are fielded to ensure that Congress is aware of cost and schedule growth beyond 2023. (Matter for Consideration 1)

Agency: Congress
Status: Open

Comments: Congress has not extended the Block 4 reporting requirement in Section 224(d) of the National Defense Authorization Act for Fiscal Year 2017. We will continue to monitor any action the Congress may take in this regard.

Recommendation: The Secretary of the Army should direct the Commanding General of Army Futures Command, in coordination with relevant Army entities, to establish command-wide performance measures and develop a plan to use these measures to systematically assess the effectiveness of small business engagement in support of research and development. (Recommendation 3)

Agency: Department of Defense: Department of the Army
Status: Open

Comments: In fiscal year 2020, AFC developed both short-term and long-term performance measures to capture and monitor information on small business engagements across the command, but are still developing a database to systematically track the progression of engagements and outcomes. Officials expect to establish a database by fiscal year 2021.

Recommendation: The Secretary of Veterans Affairs should ensure that the role and responsibilities of the Interagency Program Office are clearly defined within the governance plans for acquisition of the department's new electronic health record system. (Recommendation 1)

Agency: Department of Veterans Affairs
Status: Open
Priority recommendation

Comments: The Department of Veterans Affairs (VA) concurred with our recommendation to ensure that the role and responsibilities of the Interagency Program Office (IPO) were clearly defined within the governance plans for acquisition of the department's new electronic health record system. As of December 2019, VA and the Department of Defense (DOD) have replaced the IPO with a new joint governance body. Specifically, the Federal Electronic Health Record Modernization (FEHRM) program office has been established to serve as the single point of accountability in the delivery of a common health record between the departments and the advancement of interoperability with the private sector. In its charter, the FEHRM was described as a single decision-making authority to manage issues in support of the departments' integrated electronic health record objectives and its leadership is responsible for, among other things, working to formulate, oversee, de-conflict, and ensure adherence to electronic health record-related VA and DOD policies. However, the corresponding Implementation Plan that is intended to document how the FEHRM executes its full responsibilities has yet to be issued. To fully implement this recommendation, VA needs to document the role and responsibilities of the FEHRM with respect to VA's acquisition of its new electronic health record system, explaining the role, if any, the FEHRM will have in the governance process. We will continue to monitor the departments' incorporation of the FEHRM into the plans for the ongoing acquisition.

Recommendation: The DHS Under Secretary for Management should develop and implement effective processes and improve guidance to reasonably assure that future AAs fully follow AOA process best practices and reflect the four characteristics of a reliable, high-quality AOA process. (Recommendation 1)

Agency: Department of Homeland Security
Status: Open

Comments: DHS stated that it remains committed to its financial system modernization program and agrees that effective processes and guidance are necessary to assure best practices. In September 2020, DHS officials informed us that they did not have any updates to report on efforts to address this recommendation. We will continue to follow-up with DHS on actions to address this recommendation.

Recommendation: The DHS Under Secretary for Management should improve the Risk Management Planning Handbook and other relevant guidance for managing risks associated with financial management system modernization projects to fully incorporate risk management best practices, including (1) defining thresholds to facilitate review of performance metrics to determine when risks become unacceptable; (2) identifying and analyzing risks to include periodically reconsidering risk sources, documenting risks specifically related to the lack of sufficient, reliable cost and schedule information needed to help properly manage and oversee the project, and timely disposition of IV&V contractor-identified risks; (3) developing risk mitigation plans with specific risk-handling activities, the costs and benefits of implementing them, and contingency plans for selected critical risks; and (4) implementing risk mitigation plans to include establishing periods of performance for risk-handling activities and defining time intervals for updating and certifying the accuracy and completeness of information on risks in DHS's risk register. (Recommendation 2)

Agency: Department of Homeland Security
Status: Open

Comments: DHS stated that it is committed to its financial system modernization program and agrees that effective processes and guidance are necessary to assure best practices. In September 2019, DHS provided documentation that cross walked DHS' Risk Management Training Aide to the Capability Maturity Model Integration (CMMI) for acquisition risk management best practices. However, the optional nature of the language used in the Training Aide does not reasonably assure that program offices will follow the suggested guidance. Also, the Training Aide does not specifically require the linking of thresholds to cost, schedule, and performance elements of identified risks. Based on our review of the information provided, DHS's corrective actions were not sufficient for addressing the intent of our recommendation. We will continue to evaluate DHS actions to address this recommendation.

Recommendation: The Chief Executive Officer should direct the Chief Information Officer to take steps needed to ensure that system requirements are defined to align with the business needs of CNCS's future risk-based grants monitoring process (Recommendation 1).

Agency: Corporation for National and Community Service
Status: Open

Comments: In November 2018, CNCS officials stated that the agency made the decision to terminate the development of the Grants and Member Management (GMM) system. They subsequently awarded a contract to assess the state of development for the GMM system and to provide recommendations on the actions CNCS needed to take in order to implement a commercial off-the-shelf (COTS) application for core grants management functions. According to CNCS officials, based on the findings from that assessment, further investments in developing customized applications (even an implementation of a COTS application) were not likely to be successful. As of September 2019, CNCS officials stated that they were pursuing the option of a federal shared service as a solution to grants management. As of November 2019, according to CNCS officials, the agency had not yet defined requirements for the grant monitoring system project because the decision to pursue the federal shared services as a solution for grants management is very recent. CNCS officials agreed to provide GAO with an update as further progress is made on this recommendation.

Recommendation: The Chief Executive Officer should direct the Chief Information Officer to ensure that the system development project schedule identifies in the baseline both planned and actual dates for completing all project-level activities, and can be used to monitor and measure progress of the grant monitoring system project (Recommendation 2).

Agency: Corporation for National and Community Service
Status: Open

Comments: In November 2018, CNCS officials stated that the agency made the decision to terminate the development of the GMM system. They subsequently awarded a contract to assess the state of development for the GMM system and to provide recommendations on the actions CNCS needed to take in order to implement a COTS application for core grants management functions. According to CNCS officials, based on the findings from that assessment, further investments in developing customized applications (even an implementation of a COTS application) were not likely to be successful. As of September 2019, CNCS officials stated that they were pursuing the option of a federal shared service as a solution to grants management. As of November 2019, according to CNCS officials, the agency had not yet established a project schedule for completing the grant monitoring system project because the decision to pursue the federal shared services as a solution for grants management is very recent. CNCS officials agreed to provide GAO with an update as further progress is made on this recommendation.

Recommendation: The Chief Executive Officer should direct the Chief Information Officer to ensure that test plans are defined and implemented to include the second version of the grant monitoring system in all stages of testing during development, and results of initial stages are approved before conducting subsequent test stages (Recommendation 3).

Agency: Corporation for National and Community Service
Status: Open

Comments: In November 2018, CNCS officials stated that the agency made the decision to terminate the development of the GMM system. They subsequently awarded a contract to assess the state of development for the GMM system and to provide recommendations on the actions CNCS needed to take in order to implement a COTS application for core grants management functions. According to CNCS officials, based on the findings from that assessment, further investments in developing customized applications (even an implementation of a COTS application) were not likely to be successful. As of September 2019, CNCS officials stated that they were pursuing the option of a federal shared service as a solution to grants management. As of November 2019, according to CNCS officials, the agency had not yet established a timeframe to define test plans for the selected solution for the grant monitoring system project because the decision to pursue the federal shared services as a solution for grants management is very recent. CNCS officials agreed to provide GAO with an update as further progress is made on this recommendation.

Recommendation: To address weaknesses in the department's financial management systems modernization efforts, the Secretary of HUD should direct the Chief Financial Officer to work with the Chief Information Officer in managing subsequent initiatives to define a high-level depiction of the IT systems anticipated in the future state, a description of the operations that must be performed and who must perform them, and an explanation of where and how the operations are to be carried out.

Agency: Department of Housing and Urban Development
Status: Open

Comments: In its comments on our draft report, HUD neither agreed nor disagreed with our recommendations, but noted that it planned to improve management practices and IT governance for future modernization efforts. In April 2019, HUD reported that the Office of the Chief Information Officer and Office of the Chief Financial Officer had collaborated through an IT technical assessment initiative, identifying four primary financial management modernization initiatives remaining from the New Core Program. In July 2020, HUD officials, including the Deputy Chief Financial Officer, provided a roadmap that defined a high-level depiction of the financial management systems anticipated in the future state. However, the department had not yet completed more detailed plans that (1) identify operations that must be performed and who must perform them and (2) explain where and how operations are to be carried out. We will continue to monitor HUD's efforts to address this recommendation.

Recommendation: To address weaknesses in the department's financial management systems modernization efforts, the Secretary of HUD should direct the Chief Financial Officer to work with the Chief Information Officer in managing subsequent initiatives to develop comprehensive plans for scope, schedule and cost.

Agency: Department of Housing and Urban Development
Status: Open

Comments: In its comments on our draft report, HUD neither agreed nor disagreed with our recommendations, but noted that it planned to improve management practices and IT governance for future modernization efforts. In April 2019, HUD reported that the Office of the Chief Information Officer and Office of the Chief Financial Officer had identified a need to pursue financial management systems modernization. As of July 2020, the department had begun taking action to address this recommendation. Specifically, HUD planned to integrate loan and property management into its current financial management shared service and had begun planning for how to modernize its budget formulation and cost accounting systems. For the budget formulation effort, HUD had developed high-level plans for the scope of the program, planned an implementation schedule, and estimated on the cost for implementation and operating and maintaining the system for two years. We will continue to monitor HUD's efforts to address this recommendation.

Recommendation: To address weaknesses in the department's financial management systems modernization efforts, the Secretary of HUD should direct the Chief Financial Officer to work with the Chief Information Officer in managing subsequent initiatives to ensure requirements are fully documented and traceable.

Agency: Department of Housing and Urban Development
Status: Open

Comments: In its comments on our draft report, HUD neither agreed nor disagreed with our recommendations, but noted that it planned to improve management practices and IT governance for future modernization efforts. In March 2017, the department reported that the Chief Financial Officer and the Chief Information Officer intended to partner on future departmental financial management systems modernization efforts to fully document requirements and trace requirements to the functionality in the modernized system. In April 2019, HUD reported that the Office of the Chief Information Officer and Office of the Chief Financial Officer had identified a need to pursue financial management systems modernization in 4 areas previously identified for the New Core program. As of July 2020, HUD was in the early phases of planning for modernization in these areas. According to officials from the Office of the Chief Financial Officer, the department intended to address this recommendation for budget formulation modernization by developing applicable plans and artifacts for managing requirements from the department's project planning and management framework. However, that effort has not yet started. We intend to continue to follow up on HUD's actions.

Recommendation: The Secretary of HUD should also direct the Deputy Secretary to ensure that the Chief Information Officer takes action to improve IT governance control activities used for monitoring programs and identifying needed corrective actions, and strengthen investment oversight by improving coordination with stakeholders and alignment among IT modernization efforts.

Agency: Department of Housing and Urban Development
Status: Open

Comments: In its comments on our draft report, HUD neither agreed nor disagreed with our recommendations, but noted that it planned to improve management practices and IT governance for future modernization efforts. Since 2016, HUD has revised its IT governance boards, which provide oversight of all its IT investments, including financial management initiatives, several times. While the department has not yet completed those improvement efforts, HUD updated its project planning and management framework to tailor requirements and artifacts for different program types. According to an official from the Office of the Chief Financial Officer, updates to the requirements for shared services projects incorporated lessons learned from the New Core program. In April 2019, HUD reported that the Office of the Chief Information Officer and Office of the Chief Financial Officer had identified a need to pursue financial management systems modernization in 4 areas previously identified for the New Core program. Officials from both offices have described improvements in their coordination and collaboration on efforts to plan for modernization. We intend to continue to follow up on HUD's actions to ensure that planned improvements to governance and oversight mechanisms are effectively implemented and institutionalized.

Recommendation: The Secretary of the Interior should direct the Director of the Bureau of Land Management to identify and take necessary steps to ensure communitization agreements are reviewed within required time frames.

Agency: Department of the Interior
Status: Open

Comments: This recommendation is similar to recommendations in GAO-16-553 regarding the timely review and approval of Indian communitization agreements (CAs). In September 2018, Interior added a tracking module for Indian CAs, as well as other mineral lease agreements, to its Trust Asset and Accounting Management System (TAAMS). Then in February 2019, BIA officials told us the agency had drafted suggested time frames for the review and approval of Indian CAs for both BIA and BLM. BIA was revising the Onshore Energy and Mineral Lease Management Interagency Standard Operating Procedures to include these time frames. The officials also said that the Indian Energy and Minerals Steering Committee (IEMSC) would meet to discuss the proposed time frames. IEMSC is a committee within Interior that includes senior managers from BIA, BLM, and other agencies with a focus on Indian trust energy and mineral policies and issues. As of February 2020, we were told that BIA officials are still working collaboratively with BLM officials to fully address our recommendation, and that they may be able to provide documentation in April 2020.

Recommendation: To ensure effective management and modernization of HUD's IT environment, the Secretary of Housing and Urban Development should direct the department's Chief Information Officer to define the scope, implementation strategy, and schedule of its overall modernization approach, with related goals and measures for effectively overseeing the effort.

Agency: Department of Housing and Urban Development
Status: Open
Priority recommendation

Comments: In July 2018, the Office of the Chief Information Officer (OCIO) reported that the goal of the Chief Technology Officer's technical assessment of HUD's IT environment was to identify gaps and develop an implementation strategy and approach to establish a modernization roadmap. As of March 2020, OCIO reported that it had completed the technical assessment to identify gaps in IT. The department has also taken action to define an overall modernization approach, including the scope, implementation strategy, and schedule for modernizing its IT environment and systems. However, as of March 2020, HUD had not yet established measures for overseeing its modernization efforts.

Recommendation: Congress may wish to consider requiring the Departments of Justice, Homeland Security, and Treasury to collaborate on the development and implementation of a joint radio communications solution. Specifically, Congress may wish to consider requiring the departments to (1) establish an effective governance structure that includes a formal process for making decisions and resolving disputes, (2) define and articulate a common outcome for this joint effort, and (3) develop a joint strategy for improving radio communications.

Agency: Congress
Status: Open

Comments: Legislation has been enacted to provide funding for, among other things, the development of a nationwide, interoperable broadband network that is aimed at improving interoperable radio communications among public safety officials. However, the use of the broadband network by public safety users will be voluntary. In addition, officials from the Departments of Justice, Homeland Security, and the Treasury stated that, once mission-critical voice capabilities have been developed for the broadband network, their respective departments will determine whether they will use the network to support their mission-critical operations. Therefore, until the three departments have the information they need to make a decision to use the nationwide public safety broadband network to support mission critical voice capabilities, it is uncertain if the legislation will remedy these agencies' fragmented approaches to improving interoperable radio communications. As of March 2020, there has been no legislative action taken in the current Congress.