TABLE OF CONTENTS
EXECUTIVE SUMMARY
- INTRODUCTION
- SUMMARY OF GOVERNMENT-WIDE
PROGRESS
Table 1 -- Government-wide Summary of Year
2000 Status
- GOVERNMENT-WIDE ISSUES
Verification Efforts
Contingency Planning and Continuity of Business
Planning
Funding
Government-wide Initiatives
- Telecommunications Systems
- Buildings Systems
- Biomedical Devices and Laboratory
Equipment
- State Issues
- Other Information Sharing Initiatives
- Table 2 -- Tier 2 Agencies -- Progress, But
Concerns
Tier Three Agencies
Small
and Independent Agencies
- Table 3 -- Summary of Small and Independent Agency
Reports
Appendix A -- Summary Tables of
Agency Progress
- Table A1 -- Agency Goals for Compliance of
Mission-Critical Systems
- Table A2 -- Progress on Status of Mission-Critical
Systems
- Table A3 -- Status of Mission-Critical Systems
Being Repaired
- Table A4 -- Agency Year 2000 Cost
Estimates
Appendix B -- Agency Exception
Reports
- Mission Critical Systems Behind Schedule
Appendix C -- Key Federal Web
Sites on the Year 2000
EXECUTIVE SUMMARY
- President Clinton is committed to ensuring that Federal agencies are
meeting the challenges posed by the year 2000 computer problem and to making
sure that critical government services will not be disrupted by the transition
to the year 2000. Since the last quarterly report, agencies have continued to
make progress in their year 2000 efforts. As of August 15:
- Of the Government's 7,343 mission-critical systems, 50 percent
are now year 2000 compliant -- up from 40 percent in May. Of the remaining
systems, 40 percent are being repaired, 9 percent are being replaced, and 1
percent are being retired.
- Of the systems being repaired, 71 percent have now been renovated
-- up from 55 percent in May.
- For instances where system failures are possible, agencies are
developing plans to assure continuity of their core business functions.
Completing and testing these plans will become increasingly important as we
approach the year 2000.
- Individually, nine of the 24 major Federal agencies, grouped into
Tier 3, are identified as continuing to make adequate progress on the year 2000
problem. Among these agencies, 74 percent of mission-critical systems are now
year 2000 compliant, and 89 percent of systems being repaired have now been
renovated.
- At the same time, many agencies continue to face significant
challenges in their year 2000 efforts. Eight agencies are identified as making
progress, but with concerns (Tier 2), and seven are identified as not making
adequate progress (Tier 1). In this report, one agency, the State Department,
was downgraded to Tier 1. While increased high-level focus on the problem has
resulted in improvement at some of the most troubled agencies, their overall
progress must increase if they are to meet the Government-wide year 2000
milestones for completing their work by March 31, 1999.
- To ensure that agencies are prioritizing their year 2000 efforts, on
June 19, 1998, OMB directed all agencies of concern (Tiers 1 and 2) to provide
to OMB their plans for monthly progress, and to subsequently provide to OMB, on
a monthly basis, a report which measures progress against those plans. In
addition, John Koskinen, Assistant to the President and Chair of the
President's Council on Year 2000 Conversion, now attends monthly senior
management meetings of the Tier 1 Cabinet agencies about the year 2000 problem.
- Moreover, based on the rankings of this report, Vice President Gore
on September 2 met with heads and senior officials of the Departments of
Defense, Education, Energy, Health and Human Services, State, and
Transportation, and of the U.S. Agency for International Development to review
their plans for prioritizing year 2000 efforts.
- On cost, agencies now estimate they will spend $5.4 billion fixing
the problem in Federal systems -- up from $5 billion in May. This increase is
consistent with the President's budget request, which anticipated that
additional requirements would emerge over the course of the year and included
an allocation to provide flexible funding to address emerging needs. In fact,
additional needs for one-time funding have been arising as anticipated. This
increase is due, in part, to the success of verification and validation efforts
which have enabled agencies to better ascertain the compliance of their
systems. In response to these needs, the Administration supports Congressional
action to create an emergency funding mechanism for Y2K computer conversion
requirements. This action is consistent with the President's budget.
- A number of Government-wide efforts are underway to coordinate
progress in the areas of telecommunications, buildings systems, and bio-medical
devices and laboratory equipment. These efforts have encountered resistance
from some vendors, who, at times, are reluctant to provide the Federal
Government with information about the compliance of their products. The
Administration's proposed "Year 2000 Information Disclosure Act" would help to
eliminate many of the barriers to information sharing. In the areas of
Federal/State data exchanges, most Federal agencies have provided status
information, as have most States.
Progress on Year 2000
Conversion
Report of the U.S. Office of Management and Budget
as
of August 15, 1998
I. INTRODUCTION
- This report is the sixth in a series of quarterly summary reports to
Congress on the Administration's progress in fixing the year 2000 ("Y2K")
computer problem in Federal systems. It outlines the continuing work to avert
the problems that could occur if systems are not able to correctly process the
year 2000. This summarizes data received from the 24 agencies that make up the
Federal Chief Information Officers' (CIO) Council and from nine small and
independent agencies. These data were due to OMB on August 15, 1998.1/ It also describes the
status of government-wide activities underway. This report and all previous
reports are available on OMB's web site [/OMB], on
the web site for the President's Council on Year 2000 Conversion [http://www.y2k.gov], or on the Federal Chief
Information Officers' web page [http://cio.gov].2/
- OMB's initial Y2K report, entitled "Getting Federal Computers Ready
for the Year 2000," was transmitted February 6, 1997. The report outlined the
Federal Government's strategy to address the Y2K problem in its systems, one
that remains predicated on agency accountability. The Government's approach
follows the five phases of awareness, assessment, renovation, validation, and
implementation. Working with the CIO Council, OMB set government-wide
milestones for the completion of each phase. Agencies then established
plans for each phase. The five phases overlap -- for example, validation
of some systems begins while renovation of others continues.
- The Administration has taken several significant steps during the
last quarter to spur progress on the problem within and beyond the Federal
Government. At a July 14 event on the Y2K problem, President Clinton and Vice
President Gore underscored the importance of preparing systems for the year
2000, not only within the Federal government, but in the private sector as
well. The President's Council on Year 2000 Conversion, which began operations
in March and is chaired by Assistant to the President John Koskinen, has
continued its efforts to increase awareness of the problem beyond the Federal
Government. Under the Council's direction, agencies are reaching out to private
sector organizations, State and local governments, and international
institutions in their policy areas and are participating on 35 Council working
groups to address year 2000 activities in key economic sectors. The working
groups are working closely with industry to facilitate and coordinate
information sharing on year 2000 progress and solutions. Their efforts are an
important part of the Council's "National Campaign for Year 2000 Solutions,"
which was kicked-off at a July 28 event focused on the Y2K problem's
implications for the electric power industry.
- 1/ Except where
noted, the summary data provided in this report refer solely to the 24 agencies
on the CIO Council.
- 2/ A list of key
Federal year 2000 web sites may be found on the last page of this report.
- The Administration also recognizes a critical need for industry to
share information about their year 2000 problems and solutions with each other
and with the public. Such sharing and cooperation is essential to making sure
that companies can avoid "reinventing the wheel" and can proceed with their
fixes in the most effective and timely way. Accordingly, the Administration has
proposed the "Year 2000 Information Disclosure Act," which would encourage
companies to share information about possible solutions to year 2000 problems.
- The Administration has taken significant actions in the last quarter
to ensure that agencies are focusing on compliance. On June 19, 1998, OMB
directed all agencies in Tier 1 (those where there is insufficient evidence of
adequate progress) and Tier 2 (those that have demonstrated progress, but still
are of concern) to provide to OMB plans for monthly progress, and to
subsequently provide to OMB, on a monthly basis, reports which measure actual
progress against those plans. In addition, John Koskinen is now attending the
monthly senior management meetings of Tier 1 agencies on the year 2000 problem
to work with them on their programs. And on September 2, the Vice President met
with heads and senior officials of Tier 1 Cabinet agencies, based on this
report -- the Departments of Defense, Education, Energy, Health and Human
Services, State, and Transportation, and the U.S. Agency for International
Development. He stressed the importance surmounting obstacles to year 2000
progress.
II. SUMMARY OF GOVERNMENT-WIDE PROGRESS
This summary report shows that:
- Only two agencies -- AID and HHS -- are working toward dates that
are beyond the Government-wide milestones or the completion of their Y2K work.
The government-wide milestones are completion of renovation by September 1998,
validation by January 1999, and implementation by March 1999. Some agencies --
Justice, Treasury, GSA, OPM, SBA, and SSA -- have set goals ahead of the
Government-wide milestones. (See Appendix A, Table 1.)
- Senior Federal managers continue to reevaluate which systems are
truly critical to their organizations' missions and reset their priorities
accordingly. Agencies now identify 7,343 mission critical systems, which is
slightly more than the 7,336 identified in the May report. (See Appendix A,
Table 2.)
- Of the 7,343 mission critical systems, 50 percent (3,692) are now
year 2000 compliant, compared to 40 percent in the previous report. This
includes systems repaired, replaced, and those that were already compliant.
(See Appendix A, Table 2.)
- Of the 7,343 mission critical systems, 40 percent (2,910) are
still being repaired; 9 percent (650) are still being replaced; and 1 percent
(91) will be retired. (See Appendix A, Table 2.)
- Of those systems that have been or will be repaired, 71 percent
have completed renovation, an increase from 55 percent in the previous report.
Forty-four percent have now completed validation, while implementation is now
37 percent complete. (See Appendix A, Table 3.)
- Agencies now estimate they will spend $5.4 billion fixing the
problem from fiscal year 1996 through fiscal year 2000, an increase from $5.0
billion in the previous report.3/ (See Appendix A, Table 4.) This is
consistent with the President's budget, which anticipated that requirements
would emerge over the course of the year and included an allocation to provide
flexible funding to address emerging needs. In fact, as anticipated, additional
needs for one-time funding have been rising.
- This increase in estimated cost is attributable to refinement of
estimates as agencies move through the phases of renovation and validation and
to the newly-found costs associated with fixing the embedded chip problem. To
the extent that agencies encounter unexpected difficulties, these estimates
will continue to rise. Moreover, as agencies work through the validation phase
and develop continuity of business plans, it is possible that some agencies
will determine that they require significant additional funding. Such funding
must be made available quickly in order to ensure that work proceeds without
interruption. The Administration supports Congressional action to create an
emergency funding provision for Y2K computer conversion requirements. This
action is consistent with the President's budget.
- Most agencies report that they have completed their assessments
of non-mission critical systems. By definition, such systems are less critical
to the functioning of the agencies, but many are still important. All of the
agencies reported they have an active program to fix these systems, albeit as a
lower priority.
- Most agencies report that they have taken steps to assess
embedded chip problems. This area is of increasing concern.
- 3/ These estimates
include the costs of identifying necessary changes, evaluating the cost
effectiveness of making those changes (fix or scrap decisions), making changes,
testing systems, and preparing contingencies for failure recovery. They include
the costs for fixing both mission critical and non-mission critical systems, as
well non-information technology products and systems such as air conditioning
and heating. They do not include the costs of upgrades or replacements that
would otherwise occur as part of the normal systems life cycle. They also do
not include the Federal share of the costs for state information systems that
support Federal programs.
- The Federal Government continues to make progress in addressing the
year 2000 problem. However, the overall rate of progress for some agencies is
still not fast enough. OMB has categorized agencies into one of three tiers.
Tier 1 comprises agencies where there is insufficient evidence of adequate
progress. For agencies in Tier 2, OMB sees evidence of progress, but also has
concerns. The remaining agencies in Tier 3 are making satisfactory progress.
- Although 74 percent of Tier 3 agency systems are compliant, only 42
percent of Tier 1 agency are compliant. The following table provides detail on
the progress of the agencies by tier.
Table 1
Government-wide Summary --
Year 2000 Status
Mission-Critical Systems
| Agency Status |
All Systems |
Systems Being Repaired |
Y2K
Compliant 4/ |
Renovation
Complete 5/ |
Implementation
Complete 6/ |
Tier Three
(VA, EPA, FEMA, GSA,
NASA, NRC, NSF, SBA,
SSA) |
74% |
89% |
70% |
Tier Two
(USDA, DOC, HUD, DOI,
DOL, DOJ, Treasury,
OPM) |
56% |
72% |
42% |
Tier One
(DoD, Education, DOE, HHS,
State,
Transportation, AID) |
42% |
66% |
24% |
| All Agencies |
50% |
71% |
37% |
- 4/ Percentage of all
mission-critical systems that will accurately process data through the century
change; these systems have been tested and are operational and includes systems
that have been repaired and replaced, as well as those that were found to be
already compliant.
- 5/ Percentage of
mission-critical systems that have been or are being repaired; "Renovation
complete" means that necessary changes to a system's databases and/or software
have been made.
- 6/ Percentage of
mission-critical systems that are being or have been repaired; "Implementation
Complete" means that the system has been tested for compliance and has been
integrated into the system environment where the agency performs its routine
information processing activities. For more information on definitions, see
GAO/AIMD-10.1.14, "Year 2000 Computing Crisis: An Assessment Guide," September
1997, available at http://cio.gov under Year
2000 Documents.
- During the last quarter, the Administration took several steps to
focus management attention and resources to this problem in order to ensure
that solving the year 2000 problem is the agencies' top management priority. As
mentioned previously, John Koskinen attending the monthly senior management
meetings of the Tier 1 Cabinet agencies on the year 2000 problem to engage in
discussions of ways to evaluate and prioritize work. In addition, to better
focus management attention on plans and progress, all agencies that were rated
as Tier 1 or Tier 2 were requested to provide to OMB their plans for meeting
their renovation, validation, and implementation goals with monthly benchmarks.
These agencies are now reporting monthly on their progress against those
benchmarks. These plans and progress reports are a factor in OMB's evaluation
of agency-specific progress as outlined in section IV.
- Finally, agencies are required to report on any mission-critical
systems for which year 2000 renovation or replacements have fallen more than
two months behind schedule. Agencies are also required to report on any system
that will not meet the March 1999 target for completion of implementation.
These agency exception reports are summarized in Appendix B.
- A significant number of these plans show agencies completing work on
a large number of systems in the month just before their target dates --
usually March 1999. This is troubling, as information technology projects in
general are prone to unanticipated complications and delays. In response to
this end-loading of work in plans, some agencies have taken strong and
aggressive management action to make sure that their goals are met. For
example, the Secretary of Defense, on August 7, 1998, directed detailed reviews
and reports of the status of year 2000 implementation by each of the Unified
Commanders-in-Chief and warned that, as of October 1, IT funding for the owners
of some systems may be withheld if there is not sufficient evidence of
progress.
III. GOVERNMENT-WIDE ISSUES
VERIFICATION EFFORTS
- Independent verification assists senior management by providing a
double-check that their mission-critical systems will, in fact, be ready. All
large agencies have independent verification programs underway for that reason.
These activities are paying off, as agencies have realized that some systems,
which were considered compliant, were not. This process allows management
sufficient time to take action.
- It is essential that accurate information be reported to senior
management in a timely manner, so that they can take appropriate action. Agency
Inspectors General have been helpful to senior management in this regard as
well. They are, for example, taking an active role in verifying the accuracy of
reports to senior agency management and reports to OMB and the Congress.
CONTINGENCY PLANNING AND CONTINUITY OF
BUSINESS PLANNING
- In the reports this quarter, agencies have provided more detailed
information on contingency planning for those systems that are expected to miss
the March 1999 deadline for implementation. (See Appendix 5.) In addition,
although most agencies provided some information on the steps they are taking
to develop continuity of business plans, a great deal of work remains to be
done. These plans should describe risk mitigation strategies and work-around
alternatives to ensure the continuity of the agency's core business functions.
Such functions rely not only on the agency's internal systems, but also on
services outside of the agency's control, such as the ability of suppliers to
provide products, services, or data, or the loss of critical infrastructure.
This work remains in its early stages, but, given its importance, will be
addressed by agencies in coming months.
- To support agencies in these efforts, the Year 2000 Committee of the
CIO Council worked with GAO to develop guidance on continuity of business
planning.7/ The Business
Continuity and Contingency Plan of the Social Security Administration was
shared with other agencies as a model. In addition, on July 22, 1998, OMB
issued "Revised Reporting Requirements for Year 2000 Efforts" (M-98-12), which
asked for additional information on contingency planning and continuity of
business planning.
FUNDING
- The President's budget anticipated that additional requirements would
emerge over the course of the year and included an allocation to provide
flexible funding to address emerging needs. In fact, additional needs for
one-time funding have been rising as anticipated.
- In response to these additional needs, on August 13, 1998, OMB asked
agencies to provide to OMB their comprehensive plans and associated funding
requirements for achieving year 2000 compliance. This information will augment
the quarterly reports to OMB and will be used to assess the possible need for
additional funding for each agency.
- The Administration supports Congressional action to create an
emergency fund mechanism for Y2K computer conversion requirements. This action
is consistent with the President's budget. If approved by the Congress, such a
fund could make up to $3.25 billion available to the agencies, to be used
exclusively for the direct costs of addressing the year 2000 problem. The
availability of these funds would be contingent upon the President's
certification that these are, in fact, emergency requirements. These funds
would be available to cover the unanticipated costs of agency year 2000 efforts
for all types of information technology, including computer software and
hardware, telecommunications systems and their components, and other systems
and components (such as building security systems and medical devices) that
contain or depend on embedded microchips. OMB expects that such funding will be
particularly important for problems uncovered as a result of verification and
validation efforts and for contingency planning and continuity of business
planning.
- 7/ GAO report,
"Year 2000 Computing Crisis: Business Continuity and Contingency Planning."
July, 1998; GAO/AIMD-10.1.19.
GOVERNMENT-WIDE INITIATIVES
- The Chief Information Officers (CIO) Council Committee on the Year
2000 has a established Subcommittees on Telecommunications, on Buildings, and
on Biomedical Devices and Laboratory Equipment, to work on government-wide
areas where the Y2K problem occurs outside of computer systems. In these areas,
the problem occurs in commercial products that rely on computers or have
computer chips inside them; the problem needs to be fixed by manufacturers of
those products. The Committee has also established a subcommittee on State
Issues that is focusing on ensuring that exchanges of data between the Federal
government and the States will not be interrupted.
- Information sharing among vendors, manufacturers, service providers,
and customers -- in this case, Federal agencies -- about year 2000 problems and
solutions is critical. Despite intense efforts on the part of the Federal
Government, many vendors, manufacturers, and service providers are reluctant to
share information. In most cases, they fear that such information will be used
as the basis for a liability lawsuit later -- despite the fact that failure to
share information increases the probability that their products will not be
ready in time. In response, the Administration has proposed the "Year 2000
Information Disclosure Act," which would encourage companies to share
information about possible solutions to year 2000 problems.
Telecommunications
Systems
- Like the private sector, the Federal agencies are reliant upon
commercial vendors and the information they supply to address the compliance of
their telecommunications systems. GSA owns, manages, or resells consolidated
telecommunications services to Federal agencies throughout the United States.
In most cases, agencies must work with telecommunications vendors to receive
system upgrades; a number of agencies have expressed frustration that some
vendors have been slow to either provide information about the status of their
products or to repair the system.
- The Telecommunications Subcommittee, chaired by GSA's Federal
Technology Service (FTS), is working with industry to ensure that the
telecommunications services and systems provided to the Federal Government are
year 2000 compliant. FTS has completed its inventory and assessment for all GSA
Consolidated Systems, which provide local telecommunications services
(including hardware, licensed proprietary software, and features such as voice
mail) to Federal agencies nationwide.
- Through special interest groups for testing telecommunications
equipment, the Subcommittee has established a government-wide database with
information about compliant and non-compliant telecommunications products. This
database is available for vendors to post the status of their products at
http://y2k.fts.gsa.gov. The site also
provides links to the Web sites of more than 50 vendors.
- The Federal Government will participate in network interoperability
testing of certain critical systems scheduled by industry for early 1999. Thus
far, testing has shown that 90 percent of the PBXs owned by GSA are already
compliant. For the remaining 10 percent, manufacturers have indicated that they
will provide upgrade solutions. With respect to service obtained from Local
Exchange Carriers (LECs), GSA is contacting LEC service providers for
information on their year 2000 status which it is then providing to other
Federal agency users.
- In the Washington Metropolitan Area, the Washington Interagency
Telecommunications Systems (WITS) provides approximately 170,000 analog and
digital lines supporting both data and voice applications to Federal agencies.
The system was fixed in July 1998.
FTS 2000
- Through the Government's FTS 2000 contract, GSA is responsible for
ensuring year 2000 compliance for all Federal Government long distance
telecommunications. GSA intends to transition to FTS2001 contracts where
possible before the onset of the year 2000 to ensure compliance and a smooth
transition. In the event that the transition to FTS2001 has not been completed
by January 1, 2000, GSA has a contingency plan to use Sprint and AT&T
FTS2000 services. Both companies have made formal commitments that their
systems will be year 2000 compliant prior to the year 2000.
International Telecommunications
- Within the United States, the International Direct Distance Dialing
contract with AT&T that is managed by FTS has been certified compliant.
Overseas, however, Federal agencies that have extensive foreign operations are
reviewing the effect that the year 2000 may have on their ability to
communicate with their overseas offices, which depend on the telecommunications
infrastructures of other countries. The State Department has determined that
more than 90 percent of the telecommunications equipment it operates overseas
is compliant or can be operated in a manual mode. Roughly 5 percent of its
telecommunications services are supported by equipment that is operated by the
host nation. Several agencies, including the Peace Corps and the Agency for
International Development, have expressed concern that overseas operations in
some countries may be adversely affected by host nation telecommunications
problems. In these instances, international agencies are working together to
develop contingency plans or to identify backup systems, such as satellites, to
ensure communications are maintained.
Other Government-wide Telecommunications Services
- The equipment supplied by the Federal Wireless Telecommunications
Service (FWTS) has been certified compliant by GTE. Contracts for the Wire and
Cable Service; Electronic Commerce, Internet, and E-Mail Access; and Technical
and Management Support contain year 2000 compliance clauses. All task orders
for the Telecommunications Support Contract 2, which provides consulting and
telecommunications services, include year 2000 compliance clauses.
Buildings Systems
- Many products or systems in buildings, such as security systems,
elevators, or heating and air conditioning systems, contain embedded chips.
Frequently, these chips include a date function that helps run the system --
for example, to time maintenance procedures or to regulate temperature. If this
date function is not year 2000 compliant, then the chip may not work. This
problem is particularly complex, because chip manufacturers do not closely
track how these chips are used. In addition, a manufacturer of equipment (such
as a security system) is unlikely to know the status of the chips it is using.
It may also be difficult to accurately test the compliance of these chips in a
working environment. Once non-compliant chips are identified, they must be
replaced. This otherwise simple task of replacement is complicated by the large
numbers of such chips and the lack of complete information about where they are
located.
- In response, GSA is contacting the vendors and manufacturers of all
equipment in all GSA-owned or GSA-managed buildings to determine the compliance
or non-compliance of equipment and to determine any necessary remedial action.
Based on this outreach, elevators, once thought to be highly susceptible, are
no longer considered to be a concern. On the other hand, security/access
systems are now coming under closer scrutiny.
- In addition, GSA has established a website (http://globe.lmi.org/lmi_pbs/y2kproducts/)
that provides year 2000 information for building systems products. While there
are now over 9,000 products listed on this site (up from 6,000 in the previous
report), less than 5 percent of all products are identified as non-compliant.
Another website has been established which allows personnel from Federal
agencies to determine the year 2000 compliance status of Federally owned and
leased facilities. This site is for Federal Government use only.
GSA Owned or Managed Buildings
- To ensure that Federal buildings are ready for the year 2000, the CIO
Council established the Building Systems Subcommittee, which is chaired by
GSA's Public Buildings Service (PBS). Their charge is to ensure that any
equipment that contains embedded chips in GSA- owned or GSA-managed buildings
is year 2000 compliant. In space where GSA is the owner, PBS continues to
thoroughly review inventory and coordinate with vendors and manufacturers of
equipment that contains embedded chips. Approximately 75 percent of the GSA
building inventory has been surveyed to identify equipment considered
susceptible to year 2000 issues.
GSA Leased Buildings
- GSA is also working closely with the owners of buildings that are
leased by GSA. For leased space, GSA sent letters that describe potential
problems associated with building systems containing embedded microchips and
requesting that lessors certify their space as year 2000 compliant. About 40
percent responded. GSA will send follow-up letters to non-responsive lessors
and will forward brief surveys for "high-risk" leased locations within 60 days.
Through a contractor, GSA is developing compliance reports for each building in
order to provide building managers with the basis for developing remedial
action plans. Finally, a year 2000 clause was developed for inclusion in all
Solicitations For Offers for all new leased space.
Other Federal Government Buildings
- The Subcommittee also holds monthly meetings with representatives
from 45 Federal agencies and bureaus in order to disseminate information to
tenant agencies as well as share information with agencies that own or manage
their own buildings.
Contingency Planning for Buildings
- GSA has also established a Business Continuity and Contingency
Planning (BCCP) Task Force. This interagency task force is developing a model
BCCP for buildings for use by Federal agencies. The BCCP will be organized
around core business processes. The BCCP will also be made available to the
public.
- Biomedical devices and laboratory equipment often rely on computer
chips to help provide timing and maintenance functions. Although the effects on
many devices are not serious, for others, they may result in equipment failure.
Such failure will put patients at risk. Federal agencies and private sector
users of biomedical devices and laboratory equipment need to know which
equipment is susceptible to failure and must take corrective action.
- To provide better information on the status of biomedical devices and
laboratory equipment to the Federal agencies that own and use such devices, the
CIO Council Year 2000 Committee established the Biomedical Equipment
Subcommittee, chaired by the Department of Health and Human Services. On
January 21, 1998, the Deputy Secretary of the Department sent a letter to over
14,000 manufacturers of biomedical devices and laboratory equipment, asking
them to verify the compliance of their products. On June 29, the FDA sent a
follow-up letter to 1,935 manufacturers whose products were likely to contain
electronic components. To date, only a little over 10 percent of manufacturers
have responded to the initial inquiry and to follow-up inquiries.
- This information has been made publicly available to health care
providers, facilities, and consumers on a web site located at
http://www.fda.gov/cdrh/yr2000/html.
The web site contains information about products that still need to be made
year 2000 compliant, as well as solutions that the manufacturer will offer to
mitigate the problem (e.g., software updates), and the date on which a
compliant product will be available.
- Ultimately, the responsibility for informing the public about the
compliance of products lies with manufacturers. It is critical that
manufacturers provide information about the compliance of their products in
order to prevent year 2000 date problems in biomedical equipment from
endangering the nation's patient care and health research activities.
Accordingly, the Federal Government is considering taking action to prohibit
the acquisition of biomedical equipment from any manufacturer if the
manufacturer has not informed the Federal Government of the year 2000
compliance for all of its products.
- Federal agencies exchange data with each other; with foreign, State,
and local governments; and with private entities. Because States operate many
vital Federal programs, such as unemployment insurance and Medicaid, these
exchanges are extremely important. (Although the Federal Government exchanges
very little data with local governments, it remains concerned about progress
there.) The Subcommittee on State Issues of the CIO Council's Year 2000
Committee is working with the National Association of State Information
Resource Executives to focus on the exchanges between the Federal Government
and State governments. All Federal agencies have inventoried their data
exchanges and have discussed both the format of the exchanges and the timing of
making fixes to them with their data exchange partners.
- On behalf of the CIO Council, GSA has established a secure web site
for use by the Federal agencies and the States, and in July, all parties began
to post the status of their data exchanges on the web. 8/ The status of each data exchange is
shown as one of five categories: (1) compliant and successfully tested by both
parties; (2) successfully bridged with both parties concurring in the format;
(3) Federal side ready but not yet tested; (4) State ready but not yet tested;
and (5) not yet compliant or testing still in progress. This information is
being updated by both parties on a monthly basis.
- At this point, the database is being set up and both sides are making
sure that data are accurate. Most Federal agencies have posted the status of
their data exchanges. Some agencies have requested that their data exchanges
not be posted for security reasons. In these cases, the information has been
sent to NASIRE for distribution to State CIOs. Over half of the States have
verified the data posted by the Federal agencies. As more status information is
posted, standard reports will be distributed to Federal agencies and States
which will provide an up-to-date view of data exchanges.
- 8/ Access to the
site is limited to authorized personnel from the Federal agencies and State
governments.
Year 2000 Information Directory
- GSA also manages and maintains the Governmentwide Year 2000
Information Directory web site on behalf of the CIO Council. The directory
provides one-stop access to information, solutions, and Internet sites dealing
with the year 2000 problem. It acts as a clearinghouse for information for
Federal, State and local governments, as well as for private industry and the
public. This web site [http://www.itpolicy.gsa.gov/mks/yr2000/y2khome.htm]
was selected for inclusion in The Dow Jones Business Directory. The web
site includes articles and information on year 2000 product compliance,
contingency planning, and health care and industry concerns, as well as a guide
on the legal issues surrounding procurement and contracts. The site also
includes links to sites with information on telecommunications,
commercial-off-the-shelf (COTS) products, facilities, and biomedical equipment.
Database of Compliant COTS Products
- On behalf of the CIO Council, the Office of Governmentwide Policy at
GSA also maintains a directory of compliant, COTS Products that are used by
Federal agencies. This information is also available to the public. [http://y2k.policyworks.gov] Information
contained in the database is based on vendor assertions about their products
and agency statements about their experiences with particular COTS products.
IV. AGENCY SPECIFIC PROGRESS
PROCESS OF AGENCY EVALUATION
- Virtually all of the agencies have made progress in the last quarter,
although in many cases there are serious concerns about the rate of that
progress. To evaluate agency progress, OMB used four criteria:
- Measurable improvement -- Is there measurable and adequate
progress on renovation, validation, and implementation of computer systems,
including data exchanges? Is there progress on addressing other systems,
including buildings, telecommunications, and systems and products containing
embedded chips?
- Schedule for completion of best practices phases and overall
prognosis -- Has the agency adopted a realistic schedule that is consistent
with the government-wide goals? Has there been a change in the number of
mission-critical systems that are expected to miss the March 1999
implementation date? Does the agency have a strong management team and a
credible strategy in place?
- Risk management -- Is the agency preparing a workable
continuity of business plan for its core business functions? Does the agency
have a deadline for when plans must be complete? Does the agency have an
effective and independent validation and verification program in place? Is
there adequate oversight of efforts to replace non-compliant systems? Are
systems previously reported behind being brought back on schedule?
- Dramatic changes in previously reported information or other
indications of concern -- Have there been dramatic changes in cost,
schedule, changes to the number of systems, or changes to the number of systems
behind schedule? Are there any concerns with the availability of key personnel?
TIER ONE AGENCIES
- Tier One comprises agencies where there is insufficient evidence of
adequate progress. The six agencies in the first tier are:
Department of Defense
- The Department of Defense has a massive year 2000 challenge which
must be accomplished on a tight schedule. The Department has improved its rate
of progress in addressing the challenge, but the pace must be increased to meet
government-wide milestones. The percentage of mission critical systems that are
now compliant has risen to 42 percent, up from 29 percent in May. Additionally,
the percentage of mission-critical systems being repaired that have completed
renovation stands at 70 percent, up from 58 percent, and the percentage of
those systems that have been implemented has risen to 27 percent from 17
percent. On August 7, the Secretary ordered greater effort by the Unified
Commanders-in-Chief, inaugurated operational evaluations of the affects of the
year 2000, and created an expanded management team to address this critical
national defense issue.
Department of Education
- The Department of Education has made significant progress in the past
quarter. Of the Department's eight mission-critical systems, renovation went
from zero to four. However, rate of repair on the remaining systems is cause
for concern. Renovation of the Pell Recipients Financial Management System is
expected in December 1998, five months later than scheduled. Renovation of ED's
Local Area Network is expected in November 1998, two months late. Two other
systems are scheduled to be renovated by September 1998, but will require close
monitoring to meet their tight deadline. In addition, four of the six systems
that are in the validation stage have completed testing for year 2000
compliance, but will be re-tested -- prior to certification as compliant --
once recent programmatic changes have been incorporated.
- The Department has made significant progress the systems it calls
"mission-important" and "mission-supportive." Of the 168 systems in these
categories, Education has completed all work on 130 systems, (84 of which were
completed during the most recent quarter). The Department is aggressively
validating data exchanges and it continues to communicate year 2000 information
to the entire education community through its outreach efforts.
Department of Energy
- Compliance has increased from 36 percent to 40 percent in the last
quarter, and modest progress has been made in the other phases. However, the
Department has not identified all mission-critical systems at its Government
and contractor sites, and assessment of the Department's embedded chips and lab
equipment continues. Although DOE has defined 411 systems as mission critical,
explicit departmental prioritization and allocation of resources among those
systems has not occurred. The Department's independent Office of Oversight
Review has recommended that DOE "focus management attention on complex,
critical systems that face moderate to significant risk."
- All State and local government data exchanges with the Department are
reported compliant. Intra-departmental data exchanges are 63 percent compliant,
data exchanges with other Federal agencies are 56 percent compliant, and data
exchanges with private organizations are 43 percent compliant. The Department's
Acting CIO is conducting site compliance reviews in cooperation with the Office
of the Inspector General and Office of Oversight, but no independent
verification and validation contractors are being used for compliance reviews.
Department of Health and Human Services
- The Department's Health Care Financing Administration (HCFA) remains
a serious concern as a result of its internal and external systems remediation
schedule and escalating cost estimates. As of this report, only 56 percent of
HCFA's internal systems and 14 percent of external contractor systems have been
renovated. While HCFA's remediation schedule indicates that most systems will
be renovated and implemented by the HHS deadline of December 31, 1998, it is
likely that some internal and many external systems will fail to meet that
date. Furthermore, OMB is concerned that at least some Medicare contractors may
fail to meet the March 1999 government-wide deadline for completing
implementation. Achievement of the HHS and government-wide milestones will
require an extraordinary acceleration of the remediation process in the last
three months of 1998, leaving very little margin for error to deal with
unforeseen and unanticipated problems. Finally, HCFA's cost estimates for Y2K
remediation have increased dramatically since the last quarterly report.
- HCFA is attempting to address these concerns. It has delayed non-Y2K
systems work, such as standard system transitions and implementation of certain
statutory provisions, to increase the resources available for Y2K. HCFA has
also negotiated a contract amendment with its fiscal intermediaries and
carriers that makes Y2K compliance a performance measure. In addition, HCFA has
increased its Y2K staff by hiring retired Federal employees with Medicare
systems experience, and is informing physicians and other health care providers
of the importance of ensuring their systems are Y2K compliant.
- HCFA has also begun developing contingency plans in case some
mission-critical systems fail in 2000. HCFA's lack of contracting flexibility,
which limits its ability to competitively contract for claims processing
activities, may negatively affect contingency planning. The Administration
urges Congress to pass contracting reform legislation, transmitted to Congress
on May 19, 1998, as soon as possible to ensure that HCFA is able to contract
with any qualified entity to ensure the continued operation of the Medicare
program in the case of a claims processing system failure.
- Other HHS operating divisions have made some progress this quarter.
However, although all but one mission-critical system are projected to be
implemented by the government-wide deadline of March 1999, only 62 percent of
non-HCFA mission-critical systems are compliant. With respect to embedded
chips, facilities, and telecommunications, the relatively late start in
assessing costs in this area has produced a significant increase in estimated
costs. Increased emphasis on verification has also added to costs -- but
generally all operating divisions are doing a good job of incorporating
independent validation and verification into their schedules appropriately.
Virtually all critical systems will be subject to independent verification.
Non-HCFA operating divisions have also begun serious programs for contingency
and continuity of business planning and for outreach.
Department of State
- The Department of State faces a significant challenge in managing its
extensive Y2K project while, at the same time, completely replacing information
systems installed at over 230 locations around the world as part of the ALMA (A
Logical Modernization Approach) program. Additionally, State is the major
provider of telecommunications services to U.S. Government agencies operating
overseas. State has done an impressive assessment of its Y2K situation,
particularly its embedded systems, and is asserting a leadership role in
providing Y2K support to U.S. operations overseas. The Department has assembled
a strong program management capability and successfully raised awareness of the
problem among the Foreign Service and U.S. Diplomatic communities.
- Although State is making progress in replacing and modernizing its
information and telecommunications infrastructure, progress on renovation,
verification and implementation of mission-critical systems is of increasing
concern. In the last quarter, State did not report adequate progress on
completion of systems it is renovating, nor did it report adequate progress on
final validation of systems. The Department also must accelerate progress on
replacing 26 mission-critical applications if it is to meet the March 1999
government-wide milestone for completing implementation.
- It should be noted that State's ALMA deployment includes several
mission-critical applications that the Department will not take credit for
having completed implementation until ALMA installation is completed worldwide
in April 1999. Deployment of ALMA is proceeding at about 90 percent of State's
deployment plan, which could further affect the ability of several smaller
posts to operate in 2000. State has begun contingency planning to ensure that
operations at these locations are not adversely affected.
Department of Transportation
- The Department of Transportation's improved management oversight,
combined with an accelerating rate at which the Federal Aviation Administration
(FAA) is remediating air traffic control system components, is significantly
mitigating risk. At the end of July 1998, the Department-wide percentage of
mission-critical systems renovated stood at 65 percent, a significant
improvement over the 25 percent reported in the previous quarter. However, with
only 23 percent of its mission-critical systems validated and 11 percent
implemented, the Department continues to lag well behind the government-wide
schedule.
- The FAA reflects this improved trend with 59 percent of
mission-critical systems renovated, up from 11 percent reported in May.
However, with 10 percent of its systems validated and 3 percent implemented, it
remains significantly behind schedule. The FAA has taken decisive action
concerning the HOST computer system and other critical air traffic control
systems. It has initiated procurement of new HOST computers while
simultaneously verifying, to a reasonable degree of certainty, that the
existing HOST microcode is free of year 2000 vulnerabilities which would affect
the operational processing of flight and radar data. In addition, an ongoing
date roll-back test has been very promising and serves as a contingency plan
should replacement efforts be delayed and should HOST experience unexpected
year 2000 problems.
- Notwithstanding this improvement, more needs to be done in three
areas. First, more work is needed concerning system interfaces. A number of
systems that were reported as fully renovated have not had their system
interfaces completely evaluated. At a minimum, individual system interfaces
need to be tested and validated before end-to-end system testing can be
successfully completed. Second, the year 2000 compliance status of a number of
systems that are under development is uncertain. The FAA needs to work with the
contractors and modify contracts, if necessary, to have a reasonable assurance
of compliance prior to the testing phase. Finally, the FAA needs to reevaluate
its master schedule and make a concerted effort to accelerate its
implementation schedule for all systems to March 1999, or as soon thereafter as
possible.
- The U.S. Coast Guard's improved management and operational attention
to year 2000 issues has also minimized risk. While still facing challenges
associated with antiquated hardware and software on some critical systems, the
Coast Guard is presently well positioned to ensure continuity of its
safety-related systems. The Department's other operating administrations seem
to be on track to a smooth millennial transition.
U.S. Agency for International Development
- AID again reported no progress in terms of the total number of
systems renovated, validated, or implemented. While AID has made a number of
management improvements, including plans to increase independent validation and
verification of contractor deliverables and increasing agency-wide Y2K
awareness, they are not expected to make measurable progress in renovating or
replacing any of their mission-critical systems until the end of August 1998.
Renovation of AID's most important system, the New Management System, has
begun. With contractor assistance, AID is evaluating options to reprogram
resources to accelerate progress.
- AID has selected three vendors to replace desktop hardware and
software and intends to award a contract for Independent Verification and
Validation services for all mission-critical applications this September. AID
has begun continuity of business planning in August, identifying critical
functions that must be supported and assessing the need for related contingency
plans. The agency has assumed a leadership role in performing year 2000
outreach and awareness training in the over 80 nations in which it operates,
providing management assistance to host nations and other international aid
organizations operating in these countries.
TIER TWO AGENCIES
- For agencies in Tier 2 the second tier, OMB sees evidence of
progress, but also has concerns. Some of these agencies have strong Y2K
programs and OMB expects them to continue to improve. The eight agencies in
Tier 2 are: the Departments of Agriculture and Commerce, Housing and Urban
Development, Interior, Justice, Labor, and Treasury, and the Office of
Personnel Management. A summary of progress and concerns for these agencies
appears below.
Table 2
Tier 2 Agencies -- Progress, But Concerns
| Agency |
Progress |
Concerns |
| USDA |
Management team active. Guidance on
business continuity and contingency planning and independent validation and
verification has been finalized. |
Pace of work must increase if
government-wide goals are to be met, particularly with the Forest Service.
Embedded systems, facilities, and telecommunications issues are not yet
resolved. |
| DOC |
Overall, making progress. The new
CIO is providing leadership on the Y2K issue; undertaking IV&V and
contingency planning; anticipates completing renovation phase for all but one
mission-critical system by September and implementation by March, 1999. PTO has
prepared a contingency plan for the Classified Search and Image Retrieval
System. |
Lags behind government-wide goals.
NOAA must accelerate implementation of IV&V for mission-critical systems.
|
| HUD |
Good progress in renovating
mission-critical systems and non-mission critical systems. Inspector General is
auditing Year 2000 Program and HUD has retained an independent validation and
verification contractor. Completed continuity of business plan and is preparing
contingency plans. |
HUD must increase and sustain its
rate of progress if it is to meet the March 1999 goals. HUD has 84,000 data
exchange partners using 34 systems that must be resolved. Reported a $12.2
million (26 percent) increase in total year 2000-related costs. |
| DOI |
Project management continues to be
refined. Good progress on embedded chip, telecommunications, and data exchange
issues. Independent validation and verification efforts have been formally
established. |
Pace of renovation, validation, and
implementation must improve if Department and government-wide goals are to be
met. |
| DOJ |
Good renovation progress. Justice
has assessed most of its embedded systems, and is making good progress in
assessing and upgrading its non-wireless telecommuni-cations systems. Office of
the Inspector General actively reviewing bureau status. Independent
verification and validation contractor is reviewing test plans and improving
compliance verification. Continuity of business and continency plans are being
developed. |
Pace must improve if Department and
government-wide goals are to be met. DOJ has also identified $27 million in new
costs, almost doubling its previous estimate. An extensive number of data
exchanges must be verified as year 2000 compliant. |
| DOL |
Good progress on data exchanges,
especially with State unemployment systems; good progress against internal
schedule; anticipates completing the renovation phase for all but one system by
September and implementation for all systems by March 1999. The Department has
completed the assessment of embedded chips. |
Despite some progress, still well
behind government-wide goals for agency mission-critical systems. Two large,
critical systems at the Bureau of Labor Statistics and the Pension and Welfare Benefits Administration will miss the
September renovation goal. |
| Treasury |
Strong project team in place. Good
progress on embedded chip, telecommunications, contingency planning, and data
exchange issues. |
Rate of renovation, validation, and
implementation must improve if the Department and government wide goals are to
be met -- particularly for IRS, Customs, and FMS. |
| OPM |
Continued senior management
involvement is resulting in progress according to OPM's schedule. Expect
significant accomplishments in next quarter. Contingency planning
underway. |
Rate of renovation, validation and
implementation of mission critical systems repairs must increase to meet
government-wide goals. |
TIER THREE AGENCIES
- The remaining agencies are in Tier 3 and appear to be making
satisfactory progress. These nine agencies are the Environmental Protection
Agency, the Federal Emergency Management Administration, the National
Aeronautics and Space Administration, the Social Security Administration, the
General Services Administration, the National Science Foundation, the Nuclear
Regulatory Commission, the Small Business Administration, and the Department of
Veterans Affairs.
SMALL AND INDEPENDENT AGENCIES
- Based on the results of a request for reports from 41 small and
independent agencies, OMB asked nine agencies to report again on their
progress, because of the importance of these agencies' missions, because of
concerns about the rate of progress, or because their initial reports did not
provide sufficient detail. Those agencies are: the Federal Communications
Commission, the Federal Housing Finance Board, the National Archives and
Records Administration, the National Labor Relations Board, the Office of
Administration in the Executive Office of the resident, the Peace Corps, the
Tennessee Valley Authority, the U.S. Postal Service, and the Office of the U.S.
Trade Representative. John Koskinen will meet with selected small and
independent agencies in the next quarter. OMB will continue to work with all
small and independent agencies, as appropriate, to ensure that they are
prepared for the year 2000. OMB is asking all small and independent agencies to
report again on May 15, 1999.
Table 3
Summary of Small and Independent Agency Reports
|
Agency |
No.
MC
Systems |
No. MC
Systems
Compliant |
Total
Cost
(in
millions) |
Progress |
Concerns |
| Federal Communications
Commission |
30 |
13 |
15.2 |
Major licensing systems compliant.
Work started on 16 mission-critical systems. Will obtain IV&V contractor.
IG involved. Leading outreach efforts to telecommunications
industry. |
Rate of progress must be
accelerated, particularly in replacement systems. Move to new headquarters
building addresses embedded systems, but complicates year 2000 work.
|
| Federal Housing Finance
Board |
6 |
1 |
0.34 |
Key staff are on board. Progress
continues on renovation, validation, and implementation. |
IV&V process has not been
formalized. Contingency planning needs strengthening. |
|
National Archives and Records Administration |
22 |
10 |
5.7 |
Assessment will be complete by
September 30, 1998. Ten of its 22 mission-critical systems are now
compliant. |
Seven of 22 mission critical
systems will miss the March 1999 implementation goal. Contingency planning has
not begun. Security and environmental control systems at Presidential Libraries
are a significant challenge. |
| National Labor Relations
Board |
29 |
11 |
7.5 9/ |
Two systems have been implemented.
When it became clear the Case Tracking System (CATS) designed to replace seven
existing systems would not be implemented in time, a contingency plan was
adopted to renovate existing systems. |
Two mission-critical systems will
miss the March 1999 goal, including one which is a contingent system for CATS.
No plans for independent verification. No continuity of business plan.
|
| Office of Administration,
EOP |
86 |
1 |
16.4 |
Assessment completed, strategy
established, and critical projects to upgrade information technology
infrastructure are underway. |
Behind government-wide goals due to
limited FY 1998 funds; virtually all work is to be accomplished in FY
1999. |
| Peace Corps |
17 |
5 |
9.0 |
Payroll is shifting to USDA by June
1999. Renovation of all mission-critical systems should complete by September
1998. Good contingency and continuity planning process. |
Needs to accelerate validation and
implementation. Renovated financial management system will not be ready for
testing until May 1999. Dependent on foreign banks for disbursement. Need a
formal and independent verification capability. |
| Tennessee Valley
Authority |
347 |
104 |
37.0 |
Good overall management. Completed
assessment of embedded chip problem. |
A number of mission critical
applications will miss March 1999 deadline. Need continuity of business
plan. |
| U.S. Postal Service |
166 |
56 |
504 |
Comprehensive program addresses all
known areas where year 2000 can
have a significant impact on the Postal Service. The USPS year
2000 initiative is receiving considerable executive management
attention. |
USPS has a massive challenge, given
its size and potential role in the contingency plans of many other
organizations, including Federal agencies. |
| U.S. Trade Representative,
EOP |
6 |
0 |
1.2 |
Funding includes replacement of
LAN/desktop infrastructure. Mission-critical systems are standard COTS office
support packages or simple databases that have been renovated and are being
tested. Systems in Geneva will be compliant in September. |
Need to complete inventory, repair
and verification of data exchanges. Embedded systems, while minimal, should be
identified and assessed. Impending award of task order for IV&V services
should be accelerated if possible. |
- 9/ Represents only
FY1998 and 1999 costs.
Appendix A
Table 1
Agency Goals for Compliance of Mission Critical
Systems
|
|
Assessment
Date |
Renovation
Date |
Validation
Date |
Implementation
Date |
| Gov't-wide
Goal |
Jun-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
Agriculture
|
Oct-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
Commerce |
Mar-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
Defense |
Jun-97 |
Jun-98 |
Sep-98 |
Dec-98 |
|
Education |
Nov-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
Energy |
Jan-97 |
Sep-98 |
Feb-99 |
Mar-99 |
|
HHS |
Jun-98 |
Dec-98 |
May-99 |
Jun-99 |
|
HUD |
Jun-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
Interior |
Mar-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
Justice |
Jun-97 |
Jul-98 |
Oct-98 |
Jan-99 |
|
Labor |
Jun-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
State |
Jun-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
Transportation
|
Aug-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
Treasury |
Jul-97 |
Oct-98 |
Dec-98 |
Dec-98 |
|
VA |
Jan-98 |
Sep-98 |
Jan-99 |
Mar-99 |
|
AID |
Nov-97 |
Mar-99 |
Jun-99 |
Sep-99 |
|
EPA |
Jun-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
FEMA |
Jun-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
GSA |
Jun-97 |
Jul-98 |
Sep-98 |
Jan-99 |
|
NASA |
Aug-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
NRC |
Sep-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
NSF |
Jun-97 |
Sep-98 |
Jan-99 |
Mar-99 |
|
OPM |
Jun-97 |
Oct-98 |
Jan-99 |
Jan-99 |
|
SBA |
May-97 |
Sep-98 |
Sep-98 |
Sep-98 |
|
SSA |
May-96 |
Sep-98 |
Dec-98 |
Jan-99 |
Note: Bold dates are earlier than those reported previously.
Italicized dates are later than those reported previously.
Appendix A
Table 2
Progress on Status of Mission-critical Systems
|
Mission-critical Systems
|
|
|
Total
Number |
Number
Compliant |
Percent of
Total |
Number Being
Replaced |
Number Still Being
Repaired |
Number Being
Retired |
|
Agriculture
|
647 |
406 |
63% |
56 |
171 |
14 |
|
Commerce |
455 |
348 |
76% |
49 |
58 |
0 |
|
Defense |
2965 |
1236 |
42% |
184 |
1521 |
24 |
|
Education |
14 |
4 |
29% |
2 |
8 |
0 |
|
Energy |
411 |
164 |
40% |
110 |
109 |
28 |
|
HHS |
298 |
122 |
41% |
34 |
135 |
7 |
|
HUD |
62 |
37 |
60% |
7 |
17 |
1 |
|
Interior |
91 |
29 |
32% |
8 |
54 |
0 |
|
Justice |
207 |
64 |
32% |
16 |
127 |
0 |
|
Labor |
61 |
24 |
39% |
15 |
22 |
0 |
|
State |
59 |
21 |
36% |
26 |
12 |
0 |
|
Transportation
|
616 |
286 |
46% |
60 |
264 |
6 |
|
Treasury |
323 |
144 |
45% |
44 |
132 |
3 |
|
VA 10/ |
319 |
196 |
61% |
0 |
123 |
0 |
|
AID |
7 |
1 |
14% |
2 |
4 |
0 |
|
EPA |
58 |
46 |
79% |
3 |
8 |
1 |
|
FEMA |
49 |
34 |
69% |
7 |
8 |
0 |
|
GSA |
58 |
45 |
78% |
8 |
5 |
0 |
|
NASA |
158 |
99 |
63% |
6 |
49 |
4 |
|
NRC |
7 |
2 |
29% |
2 |
3 |
0 |
|
NSF |
17 |
14 |
82% |
0 |
3 |
0 |
|
OPM |
111 |
53 |
48% |
10 |
46 |
2 |
|
SBA |
42 |
31 |
74% |
0 |
11 |
0 |
|
SSA |
308 |
286 |
93% |
1 |
20 |
1 |
|
TOTAL |
7343 |
3692 |
50% |
650 |
2910 |
91 |
- 10/ In the last
quarterly report VA identified 11 mission critical areas. For government-wide
consistency in the tracking process, VA has disaggregated these areas into 319
separate applications that support these mission critical areas.
Appendix A
Table 3
Status of Mission Critical Systems Being Repaired
|
|
Number of
Systems |
Assessment Percent
Complete |
Renovation Percent
Complete |
Validation Percent
Complete |
Implementation
Percent Complete |
|
Agriculture
|
334 |
100% |
71% |
51% |
50% |
|
Commerce |
141 |
100% |
71% |
60% |
59% |
|
Defense |
2075 |
99% |
70% |
34% |
27% |
|
Education |
8 |
100% |
50% |
13% |
13% |
|
Energy |
154 |
99% |
50% |
32% |
29% |
|
HHS |
163 |
100% |
31% |
12% |
14% |
|
HUD |
40 |
100% |
80% |
58% |
40% |
|
Interior |
83 |
100% |
73% |
42% |
33% |
|
Justice |
160 |
99% |
83% |
24% |
18% |
|
Labor |
27 |
100% |
52% |
22% |
19% |
|
State |
12 |
100% |
50% |
25% |
0% |
|
Transportation
|
297 |
100% |
65% |
23% |
11% |
|
Treasury |
234 |
100% |
72% |
51% |
44% |
|
VA |
319 |
100% |
94% |
84% |
61% |
|
AID |
5 |
100% |
20% |
20% |
20% |
|
EPA |
29 |
100% |
86% |
79% |
72% |
|
FEMA |
15 |
100% |
67% |
53% |
47% |
|
GSA |
20 |
100% |
80% |
80% |
75% |
|
NASA |
101 |
100% |
76% |
54% |
51% |
|
NRC |
4 |
100% |
50% |
25% |
25% |
|
NSF |
9 |
100% |
100% |
78% |
67% |
|
OPM |
79 |
100% |
52% |
42% |
42% |
|
SBA |
42 |
100% |
74% |
74% |
74% |
|
SSA |
289 |
100% |
93% |
90% |
87% |
|
TOTAL |
4640 |
99% |
71% |
44% |
37% |
Appendix A
Table 4
Agency Year 2000 Cost Estimates 11/ (in millions)
|
|
1996 |
1997 |
1998 |
1999 |
2000 |
TOTAL |
|
Agriculture
|
2.7 |
16.9 |
62.1 |
30.3 |
7.8 |
119.8 |
|
Commerce
|
2.6 |
12.4 |
35.6 |
32.1 |
6.5 |
89.2 |
|
Defense |
23.9 |
375.6 |
1069.4 |
435.3 |
52.1 |
1956.3 |
|
Education
12/ |
0.1 |
1.7 |
23.3 |
7.4 |
1.2 |
33.7 |
|
Energy |
1.0 |
20 |
93.3 |
68.1 |
19.3 |
201.7 |
|
HHS
13/ |
7.9 |
33.1 |
143.0 |
325.8 |
14/ |
509.8 |
|
HUD
|
0.7 |
6.2 |
21.8 |
25 |
6.2 |
59.9 |
|
Interior
|
0.2 |
2.8 |
10.6 |
21.1 |
0.7 |
35.4 |
|
Justice
|
1.5 |
6.6 |
29.8 |
19.1 |
2 |
59.0 |
|
Labor
15/ |
1.7 |
5.4 |
14.5 |
18.1 |
8.8 |
48.5 |
|
State |
0.5 |
49.3 |
63.1 |
47.9 |
6.8 |
167.6 |
|
Transportation
|
0.4 |
10.7 |
114.5 |
74.9 |
12.5 |
213.0 |
|
Treasury
16/ |
8.1 |
200.2 |
592.7 |
407.9 |
261.2 |
1470.1 |
|
VA
|
4.0 |
22 |
70 |
93 |
11 |
200.0 |
|
AID |
1.1 |
3 |
18.3 |
13.7 |
3.2 |
39.3 |
|
EPA |
0.8 |
5.3 |
13 |
6.1 |
1 |
26.2 |
|
FEMA |
3.8 |
4.4 |
3 |
0.9 |
0.5 |
12.6 |
|
GSA |
0.2 |
0.8 |
8.7 |
4.2 |
0 |
13.9 |
|
NASA
|
0.1 |
6.4 |
27.7 |
11.2 |
1.5 |
46.9 |
|
NRC |
0.0 |
2.4 |
4 |
3.9 |
0.6 |
10.9 |
|
NSF |
0.0 |
0.5 |
0.8 |
0.1 |
0 |
1.4 |
|
OPM |
1.7 |
2.1 |
1.5 |
0.8 |
0.3 |
6.4 |
|
SBA |
1.7 |
3.3 |
2.7 |
2.4 |
0.5 |
10.7 |
|
SSA |
2.2 |
13.3 |
12.2 |
5 |
0.5 |
33.2 |
|
TOTAL |
66.9 |
804.4 |
2435.6 |
1654.3 |
404.2 |
5365.5 |
- 11/ These
estimates do not include the Federal share of the costs for State information
systems that support Federal programs. For example, the Agriculture total does
not include the potential 50 percent in Federal matching funds provided to
States by Food and Consumer Services to correct their year 2000 problems.
Similarly, the HHS total does not include the Medicaid baseline costs for the
Federal share of State systems. And, while Labor's FY 1998 appropriation
includes $200 million for States to correct year 2000 problems in State
unemployment insurance systems, that amount is not included in this estimate.
- 12/ The FY 1999
cost estimate does not include $4.4 million planned for outreach to the
education community.
- 13/ Increase in
FY 1999 from May quarterly report is $213 million. Of this, $142.6 million is
for HCFA.
- 14/ HHS' most
recent estimate of Y2K costs for FY 2000, as reported in their August 1998
quarterly report to OMB, is not reflected in this table. The approximately $550
million in FY 2000 costs is still being reviewed by OMB. Almost all of these
costs are attributable to HCFA.
- 15/ The FY 1999
and 2000 cost estimates do not include $1.4 and $1.2 million, respectively,
planned for outreach to industry by the Mine Safety and health Administration
and the Occupational Safety and Health Administration.
- 16/ Costs
displayed differ from those reported previously, as they do not include costs
for non-appropriated activities, other sources of funding such as
reimbursements, and diversions of base resources that are not identified in the
99 Budget or as part of official reprogrammings. Costs for programs that do not
receive appropriations are as follows: FY 96: $.2 M, FY 97: $9.4 M, FY 98:
$53.2 M, FY 99: $38.1 M, FY00: $5.4 M. Costs that Treasury is funding through
other sources, such as reimbursements, are as follows: FY: 97: $3.1 M, FY 98:
$15.4 M, FY 99: $48.0 M. Diversions of base resources not identified in the 99
Budget or as part of an official reprogramming are as follows: FY 98: $17.2 M,
FY 99: $70.8 M. (Costs displayed above for FY 1999 include additional needs
verified by OMB.) Additional costs of $34.4 M for FY 2000 have not been
verified by OMB and therefore are not included in the above table.
Appendix B
Agency Exception Reports
Mission-critical Systems Behind Schedule
Department of Commerce
- The Patent and Trademark Office reports that the Classified Search
and Image Retrieval (CSIR) system will not be year 2000 compliant by March 31,
1999. The CSIR provides patent examiners with the capability to electronically
search and retrieve U.S. patent images from their desktop workstations. PTO
indicates that the CSIR system will be compliant by June 30, 1999. This system
is delayed due to the contractor's inability to place qualified staff on the
task. A contingency plan was submitted on August 14, 1998 for this system.
Department of Defense
- The Department of Defense reports 51 mission critical systems are
behind schedule for fixing year 2000 problems. This is an increase from the 9
reported last quarter. Seven of those previously reported systems remain behind
schedule. In addition, DoD reports that 69 mission critical systems will miss
the March 1999 deadline for being fixed, an increase from the 34 that were
reported in May. These increases are due to DoD's efforts to improve reporting,
impose more stringent validation and testing criteria, and provide senior
management with early warning of any problems that may occur.
Department of Education
- In the May quarterly report, Education reported two systems which had
fallen two or more months behind schedule: 1) the Title IV Wide Area Network
(TIVWAN), and 2) the National Student Loan Data System (NSLDS). TIVWAN had
slipped from a renovation date of 2/98 to 8/98 and NSLDS had slipped from a
renovation date of 6/98 to 8/98. In the August quarterly report, both of these
systems had completed their renovation phases as scheduled and are no longer
listed as exceptions. Also in the August quarterly report Education listed
three systems which have fallen two or more months behind schedule: the Impact
Aid Payment System, the Education Local Area Network, and the Pell Recipients'
Financial Management System. For the Impact Aid Payment System, which is a
replacement system, the renovation phase has been completed, but the validation
and implementation phases have slipped by three and two months respectively
from June 1998 to September 1998, and from July 1998 to September 1998. For the
Education Local Area Network, which is a system being renovated, the renovation
phase completion date has slipped by two months from September 1998 to November
1998. That slippage is being driven by difficulties with one of five
components, the Enterprise Mail Messaging package, which will not be done with
renovation until late November, 1998. For the Pell Recipients' Financial
Management System, the slippage is more severe. The Pell System renovation
phase has slipped by five months, from July 1998 to December 1998. Education
has currently completed 40 percent of the work necessary to finish the
renovation phase for the Pell System.
Department of Energy
- In the May quarterly report, the Department had identified six
systems with implementation dates beyond the March 1999 milestone. These six
systems remain with implementation dates beyond the March 1999 milestone in the
August quarterly report. The six systems are at two DOE facilities -- Sandia
National Lab and Savannah River. At the Sandia National Laboratories the system
with the implementation date October 1, 1999, is the Oracle Financial System.
At the Savannah River site there are five systems. The Nuclear Materials
Stabilization Program Operations System (implementation date of September 30,
1999), the Tank Farm Process Control System (implementation date of October 31,
1999), the Tank Farm Manufacturing Support System (implementation date of
August 19, 1999), the Defense Waste Processing Facility Process Control System
(implementation date of October 31, 1999) and the Defense Waste Processing
Facility Manufacturing Support System (implementation date of October 31,
1999).
- These are the six system reported by the Department in its August
quarterly report; in addition, however, the Department tracks progress against
its own milestones and has identified 51 systems that are behind their internal
renovation milestones. The Department has 27 systems out of 411 that are behind
their schedule by more than 60 days. DOE also has 43 systems that are being
renovated which are scheduled to be implemented in March 1999.
Department of Health and Human Services
- From June status data, HCFA indicated that there were three Medicare
contractors who had deadlines for implementation after March 1999. HCFA
submitted a revision to that data on August 12 indicating that no
systems were more than two months behind schedule and that there were no
systems which would not be repaired before March 31, 1999. However, there is
still serious concern that some contractors may fail to meet the March
deadline.
- In the May quarterly report the Health Resources and Services
Administration's (HRSA) contractor-operated National Organ Transplant System
was projected not to be compliant until a new replacement system was
implemented in July 1999. In the August quarterly report, HRSA reports that the
schedule has been advanced at least 3 months: the National Organ Transplant
System is scheduled to be validated by March 31, 1999, and is scheduled to be
implemented in early April 1999.
Department of Interior
- The Supervisory Control and Data Acquisition (SCADA) System for the
Colorado River Storage Project within the Bureau of Reclamation is used to
manage the Glen Canyon Dam's Power plant and water flow. In the May report,
this system was discussed primarily because the preliminary estimates to
renovate the system were significantly higher than anticipated. A statement of
work was developed requiring a three-phase effort to reassess costs, make
repairs, and test the system for year 2000 compliance. Additionally, a waiver
to the Dual-Compensation Act has been granted for 10 Power plant Operators as
part of a contingency plan that will allow all of the bureau's dams to be
operated in a manual mode. Currently all of the bureau's continuity of
operations manuals are being reviewed with regard to Y2K impact. SCADA is now
considered be back on schedule with renovation, testing, and implementation to
be completed by March 1999.
- The Global Seismic Network (GSN) of the U.S. Geological Survey
collects and provides data from the global digital seismic network to
incorporated research institutions. This system is integrated with the global
positioning system and includes information on earthquake assessments, oil
drilling distribution and maintenance and water resource management. Earlier
schedule and budget estimates for GSN were based on data that was incomplete
relative to the severity of several problems in the field system operating
software. A new schedule has been developed to overcome these problems and
result in a compliant system by February 1999.
- The Seismic Event Data Analysis System (SEDAS) of the U.S. Geological
Survey contains information pertaining to earthquakes throughout the world. It
is used by USGS researchers for information dissemination. Earlier schedule and
budget estimates for SEDAS were based on repairing an older computer system
which was then discovered to be too old for reliable Y2K renovation. A new
system is now being procured and a revised schedule has been developed for a
compliant system to be in place by January 1999.
- The U.S. National Seismograph Network (USNSN) of the U.S. Geological
Survey (USGS) provides the hardware and the software for the Water Resources
Division of USGS for scientific, accounting, and personnel information. Earlier
schedule and budget estimates for USNSN were revised after determining that
there is a much more comprehensive method for testing and validating total
system Y2K compliance than was originally envisioned. The slip in the
validation schedule is due to expanded testing of the system and revisions to
the testing schedule itself. The system is currently scheduled for validation
in October 1998, implementation in November 1998, and IV&V in December
1998.
Department of Justice
- The most recent quarterly report shows that 13 systems will miss
internal Justice milestones for assessment, renovation or validation, but the
Department insists that all these systems will meet the Department's January
1999 deadline for completion of implementation. In addition, Justice has
identified three mission critical systems that will miss the government-wide
March 1999 implementation deadline. First, the Digital Monitoring Workstations
in the Federal Bureau of Investigation (FBI) support investigative collections
for authorized foreign counterintelligence surveillance and were found to be
non-year 2000 compliant. The FBI is replacing the twelve systems at the rate of
approximately one per month, and they should be fully implemented by October
1999. Second, the Immigration and Naturalization Service (INS) has decided to
perform replacement of its mission-critical Local Area Network and its
non-mission critical workstation/office automation upgrades simultaneously.
Because a large number of sites are involved, INS will be unable to complete
replacement of this infrastructure until July 1999. Third, Justice is replacing
the Card Key System for its Washington, DC headquarters as part of the
building's overall renovation; this renovation won't be finished until after
March 1999.
State Department
- The Supply Automated Receiving System (SARS), Enhanced Automated
Procurement System (EAPCS), Mail Sorting Equipment Network (MSE), and the
Electronic Receipts System (ERS) within the Bureau of Administration will all
miss their September renovation milestones. In its last report, State expected
these systems to be back on schedule in June, 1998. Early delays involved
evaluation of commercial off-the-shelf system alternatives, funding requests
and contract modifications. Renovation of the SARS is scheduled for completion
in November 1998, and acceptance testing will be completed in March 1999.
Assessment of EAPCS is now completed, and implementation is scheduled for
February 1999. Renovation of MSE will begin in November, and certification and
implementation is scheduled to be completed in March 1999.
- State had previously reported the Office of Personnel's Medical
Archiving Retrieval System (MARS) as extending beyond the September 1998
renovation milestone, but this system has been subsequently been reclassified
as a non-mission critical system. Deployment of the ALMA (A Logical
Modernization Approach) upgrades to over 230 State Department posts worldwide
will not be completed until April 1999. Included in the ALMA package are a
number of Consular Affairs mission critical systems, including the Automated
Citizen Services function, Modernized Immigrant Visa system, Non-Immigrant Visa
and Computer Assisted Processing systems, and the Travel Document Issuance
System. Through July 1998, ALMA has been deployed to 105 posts worldwide,
meeting 92 percent of State's target goals. State is preparing continuity of
business plans should any posts or embassies not have ALMA installed in time to
meet the millennium.
Department of Transportation
- The Federal Aviation Administration (FAA) is faced with a significant
challenge in validating and implementing hundreds of systems, particularly air
traffic control systems which require extensive end-to-end testing. At the
present time, the FAA estimates that 62 systems will not be implemented by
March 1999, a number of which are critical to FAA's telecommunications and data
exchange infrastructure. The FAA presently expects to complete validation
activities by March 1999 and implementation activities by June 1999. As stated
in the report, the FAA needs to reevaluate its master schedule and make a
concerted effort to accelerate its implementation schedule for all systems to
March 1999, or as soon thereafter as possible.
- The U.S. Coast Guard reports that its consolidated accounting system,
the Finance Center Information Resources Management System, has fallen behind
schedule and will likely miss the March 1999 implementation date. The three
systems reported as behind schedule in the previous quarter are now back on
schedule. In addition, the Automated Aids Positioning System, which is still in
development, was recently identified as having year 2000 vulnerabilities, but
is expected to be implemented by the March 1999 milestone date and will not be
fielded until fully compliant.
Treasury Department
- GOALS, a FMS system that was to have been implemented after the
government wide deadlines, is now on target to be compliant by March 1999. The
Government On-Line Accounting Link System (GOALS) at the Financial Management
Service is comprised of 18 application subsystems that collect, edit, and
telecommunicate data. GOALS-II was initiated in September 1995 to replace
GOALS-I. Based on the analysis of the current development schedule, not all of
the 18 subsystems of GOALS-II will be completed and implemented prior to the
year 2000. Consequently, FMS determined that it must renovate the existing
GOALS-I system to ensure year 2000 compliance. In the May report, GOALS was
described as a system that would be compliant after the March 1999
government-wide deadline. Based on a finalized assessment of GOALS, however,
all critical applications have been scheduled for completion on or before March
1999.
General Services Administration
- The General Services Administration identified one system, the
Acquisition Management Program (AMP) as being delayed by more than two months,
slipping from May 1998 to October 1998. AMP is used to manage the funds used to
acquire vehicles at Fleet Management Centers throughout the nation. GSA decided
to implement the system at the beginning of the fiscal year allowing the host
computer platform to be upgraded.
Agency for International Development
- Two AID mission critical systems will be implemented after the March
1999 goal. The Mission Accounting and Control System (MACS) will take longer to
renovate than originally planned and is scheduled for implementation in May of
1999. The Agency's complex financial management, procurement, budget and
program management system, called the New Management Systems (NMS) is scheduled
for implementation in August 1999. AID will have contingency plans in place for
both of these systems by February 1999. Additionally, AID will not have
assurances until April 1999 that all of its desktop personnel computers are
both year 2000 compliant and able to support other mission critical
applications such as the American Time and Attendance. AID is working to
accelerate deployment of its new desktop infrastructure in order to support
deployment of mission critical applications.
Appendix C
Key Federal Web Sites on the Year 2000
| OMB Home Page |
Budget Information |
Legislative Information |
Management Reform/GPRA |
|
Grants Management |
Financial Management |
Procurement Policy |
|
Information & Regulatory Policy |
Special Topics |
The Budget | Legislative Information | Management Reform/GPRA | Grants Management
Financial Management | Procurement Policy | Information & Regulatory Policy
Contact the White House Web Master
Privacy Statement | 
