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| **U.S. Customs and Border Protection Modernization**                  |
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| Report to Congress:                                                   |
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| The Automated Commercial Environment (ACE)                            |
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| CBPMO-RPRT-009                                                        |
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| **December 31, 2003**                                                 |
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| U.S. Customs and Border Protection Modernization Office               |
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Automated Commercial Environment (ACE) Report to Congress

**December 31, 2003**

Table of Contents

Executive Summary
\...........................................................................1

1\. Performance [2](#performance)

1.1 Compliance with NAFTA Title VI Requirements
[2](#compliance-with-nafta-title-vi-requirements)

1.2 ACE Development Accomplishments
[2](#ace-development-accomplishments)

1.3 Open General Accounting Office Recommendations
[6](#open-general-accounting-office-recommendations)

1.3.1 Cost-Estimating Program [6](#cost-estimating-program)

1.3.2 Human Capital Management (HCM) [7](#human-capital-management-hcm)

1.3.3 Software Acquisition Capability Maturity Model (SA-CMM)
[8](#software-acquisition-capability-maturity-model-sa-cmm)

1.3.4 Independent Verification and Validation (IV&V)
[8](#independent-verification-and-validation-ivv)

1.3.5 Enterprise Architecture (EA) Certification
[9](#enterprise-architecture-ea-certification)

1.3.6 Use of ACE Infrastructure for DHS
[9](#use-of-ace-infrastructure-for-dhs)

2\. Schedule [9](#schedule)

3\. Cost [11](#cost)

3.1 Fiscal Status: Funding and Expenditures
[11](#fiscal-status-funding-and-expenditures)

3.2 Fiscal Year 2004 ACE Expenditure Plan
[11](#fiscal-year-2004-ace-expenditure-plan)

3.3 Cost Containment [12](#cost-containment)

4\. Near-Term Milestones [13](#near-term-milestones)

5\. Outlook [14](#outlook)

Appendix A. NAFTA Title VI Requirements for ACE and Description of ACE
Functionality........................................................................................\...17

Appendix B. Acronyms and Selected
Definitions............................................27

Figure 1. ACE Releases 3 and 4 Schedule

......................................................10

Figure 2. ACE Funding Status

...\....................................................................11

**Executive Summary**

The *Report to Congress: The Automated Commercial Environment*,
consolidates U.S. Customs and Border Protection (CBP) Congressional
reporting requirements, which include the *Homeland Security
Appropriations Bill, 2004; Trade Act of 2002;* and the February 2003
General Accounting Office (GAO) Report, *Customs Service Modernization:
Automated Commercial Environment Progressing, But Further Acquisition
Management Improvements Needed.* Collectively, these reports require
quarterly updates on: how ACE development and establishment is being
implemented cost-effectively; how ACE meets the modernization
requirements of the North American Free Trade Agreement (NAFTA)
Implementation Act of 1993; and on Customs and Border Protection
Modernization Office (CBPMO) progress on Human Capital Management and
implementation of software acquisition practices under Carnegie Mellon
University's Software Acquisition Capability Maturity Model (SA-CMM).
The GAO has requested that the ACE quarterly report also provide a
status on efforts to resolve open audit recommendations.

The reporting period for this update is October 1 - December 31, 2003.
The report is intended to provide a "snapshot" of current program
status, highlighting recent accomplishments, challenges, and near-term
milestones through April 30, 2004. A review of previous reports may be
helpful in understanding the full context of the information provided in
this edition of the report.

This report is provided to the Senate Finance Committee, House Ways and
Means Committee, and Appropriations Committees. The report has been
reformatted to enhance readability as much as possible.

-   The [performance]{.underline} section highlights key ACE program
    accomplishments, actions to satisfy the GAO's audit recommendations,
    and a brief overview of how ACE capabilities will help satisfy the
    requirements of the 1993 NAFTA Implementation Act and Customs
    Modernization Act. This section is supplemented by Appendix A, which
    contains a table that depicts the alignment between ACE
    capabilities, the specific electronic processing functions required
    under the Act, and the high-level program schedule for fielding ACE
    capabilities. A description of ACE capabilities by release is also
    included in this appendix.

-   The [schedule]{.underline} section includes contract baseline dates,
    updated ACE development dates based on the October 2003 revision of
    the ACE Program Plan, and current milestone projections.

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-   The [cost]{.underline} section updates ACE funding and expenditures;
    cost challenges; and describes program cost containment efforts.

-   By its nature, the environment in which ACE is being developed is
    characterized by technical terms and acronyms. An attempt has been
    made to minimize jargon as much as possible. To assist in
    understanding, Appendix B provides a glossary of commonly used
    acronyms in the report and selected definitions.

# Performance

This section highlights how ACE will help satisfy the requirements of
the 1993 NAFTA Implementation Act and Customs Modernization Act;
selected program accomplish-ments, and actions related to the open GAO
recommendations.

## Compliance with NAFTA Title VI Requirements

The NAFTA Implementation Act is the primary business driver and the
legal foundation for the CBP Modernization effort. The Act emphasizes
electronic processing and self-compliance as the preferred method for
handling commercial importations. The Act also directs CBP to pursue
automation programs. The Act provides the foundation for the redesign of
the trade compliance process and the strengthening of selectivity and
targeting systems. These are key requirements for enhancing border
security and expediting legitimate trade.

Title VI of the NAFTA (Mod Act) outlines requirements for automation and
provides for the electronic processing of imports. The CBP is developing
ACE to deliver these capabilities in a secure, paper-free, web-enabled
environment. The ACE is being built using an incremental approach that
features a series of releases. Each release will leverage the foundation
components and functionality present in the previous releases and bring
new capabilities to the trade community and government users. The
planned delivery of functionality within and across ACE releases serves
to fulfill specific Subtitle requirements. Appendix A identifies
Modernization Act Subtitle requirements with the ACE Release(s) in which
associated functionality will be delivered. The table in Appendix A
illustrates that particular Modernization Act Subtitle requirements may
be supported across multiple ACE releases. The table depicts the
alignment between ACE capabilities, the specific electronic processing
functions required under the Act, and the high-level program schedule
for fielding ACE capabilities.

## ACE Development Accomplishments

Following are key program accomplishments between October 1, 2003,
(closing date of previous report) and December 31, 2003.

-   **Achieved Level Two Rating on the Software Acquisition Capability
    Maturity Model^®^ (SA-CMM)**. The CBPMO system acquisition efforts
    were rated as a SA-CMM® Level 2, in November 2003, culminating two
    years of process improvement efforts. The SA-CMM is a management
    tool designed to make software acquisition and management easier and
    more accountable by creating a sound organizational structure and
    institutionalizing processes for managing system acquisition
    projects.

-   **Initial On-line Account Capabilities Fully Operational.** The
    Operational Readiness Review (ORR) for ACE Release 2 was held in
    October 2003, enabling ACE capabilities, including the single screen
    Secure Data Portal, to be fielded and transitioned to an Operations
    & Maintenance (O&M) environment. Passing this milestone also set the
    stage to begin expanding ACE capabilities to more end users in
    government and the trade community.

-   **Increased Trade Account Expansion Efforts.** Additional trade
    accounts are currently being brought on-line through the ACE Secure
    Data Portal. Pre-deployment packages have been distributed to assist
    the CBP Account Managers and the companies that they represent in
    the expansion process. More than 200 accounts are targeted for the
    expansion by May 2004. Similar to the initial 41 trade accounts,
    these next accounts are high volume users of ACE and represent a
    large percentage of trade activity.

-   **Developed Plan to Prepare ACE End-Users.** Through the Workforce
    Transformation sessions with Business Process Owners (BPOs),
    employee-specific Workforce Transformation Outreach Plans were
    developed to prepare impacted end users for changes brought by ACE
    Release 3. The plans provide analysis of the information and
    transition needs of impacted stakeholders, including risks and
    contingencies associated with preparing and executing outreach
    activities for the particular group. Further, the plans present a
    schedule of events, a roles and responsibilities matrix, and
    resource lists designed to help BPOs execute on planned events.

-   **Initiated Software Integration Testing (SWIT) Testing for ACE
    Release 3 (Expanded Accounts Management).** ACE Release 3 entered
    SWIT in October 2003. During SWIT testing, ACE Release 3 was put
    into an environment that closely simulates the intended technical
    architecture of the release under development.

-   **Submitted Selectivity and Targeting (S&T) Concept of Operations.**
    Following collaboration sessions between CBPMO, the Office of Field
    Operations (OFO), and the Office of Information Technology (OIT),
    the eCP submitted a S&T concept of operations as the proposed
    framework for S&T activities.

-   **Conducted ACE Release (S&T) Workshops.** In coordination with
    International Trade Data System (ITDS) Board of Directors and CBPMO,
    the eCP held two workshops for Participating Government Agencies
    (PGAs) that focused on S&T requirements and capabilities to support
    ACE Release 5 planning.

-   **Initiated Technology Prototypes.** Based on direction from CBP
    officials to better align the ACE program to CBP mission priorities,
    the eCP developed a "Selectivity NOW" proposal in September 2003.
    The CBP directed that the eCP initiate prototypes and develop "proof
    of concept" capabilities for S&T, and related enforcement tools. The
    projects approved for prototyping include a Knowledge-Based Risk
    Management (KBRM) system, and Intelligent Information Factory (IIF)
    prototype. In November 2003 the technology prototype, IIF, was
    initiated. In December 2003, the CBPMO hosted a Technology
    Demonstration Day, an event that showcased various S&T technologies.
    Also in the planning phase is TRAP-EZE, an enforcement tool to
    enhance vehicle inspections.

-   **Revised the ACE Program Plan**. Given the expanded mission
    priorities under the Department of Homeland Security (DHS) and the
    approach CBP is taking with ACE development, the ACE Program Plan
    was revised to reflect the realities of the operational environment.
    The rebaselining of the Program recognizes the decision to
    incorporate SAP even more fully (ACE Release 2 already has some SAP
    functionality) as a commercial-off-the-shelf solution for ACE, and
    the lessons learned to date in ACE development.

-   **Delivered the Engineering Environment Upgrade Plan.** The eCP,
    with the support of the CBP Technology and Architecture Group,
    delivered the *Enterprise Architecture Automated Environment
    Development Plan*. This plan will guide performance improvements
    through September 2004.

-   **Updated the Enterprise Concept of Operations.** The *Enterprise
    Concept of Operations* describes how CBP employees and managers will
    have access to broader and immediate information in every mission
    area. Specifically, the document introduces the conceptual framework
    under which the integration of CBP, law enforcement, intelligence,
    and trade databases will provide employees immediate access to
    information relevant to their business roles and security
    authorizations. It further details the new systems solutions that
    will enable individuals to interpret, update, and manage data.

-   **Updated the Enterprise Mission and Vision.** The update to the
    *Modernization Mission and Vision* was a result of CBP leadership's
    evolving view of the agency since the last version of the document.
    This revision was based on the results of a six-month collaboration
    among CBP Subject Matter Experts (SMEs), and e-Customs Partnership
    (eCP) staff. Representation was provided from across CBP, including
    the newly incorporated functions from U.S. Citizenship and
    Immigration Services, Animal and Plant Health Inspection Service
    inspections, and Border Patrol activities.

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-   **Completed the *Organizational Vision for the Modernized CBP*
    Document.** This document further delineates the ideas presented in
    the *Modernization Mission and Vision* document and *Enterprise
    Concepts of Operations (CONOPS).* The document provides a model and
    planning considerations for how CBP will integrate processes and
    share information across and beyond the organizational boundaries.
    It highlights the need for functional areas to work together to
    provide intelligence needed for decision-making in support of common
    goals.

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-   **Conducted Government Support Network (GSN) Meeting**. A GSN
    meeting with representatives from more than 40 agencies was held in
    November 2003. The GSN agenda included the following:

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-   Updates on ACE Releases 2, 3, and 4

-   Presentation by the Food Safety Inspection Service regarding its
    role at the border

-   Presentations by trade representatives regarding the trade community
    perspective on ITDS

-   Updates on Data Harmonization and other ITDS initiatives.

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-   **Established Cross-Agency Working Group on Data Access**. A
    cross-agency working group has been established to address
    principles on data access. The working group is founded on the
    premise that agencies and offices with legislative mandates have a
    right to access data needed to execute their missions, but proper
    security procedures for granting access is essential. This working
    group will conduct a thorough analysis of current procedures and
    present a recommendation regarding future procedures once ACE/ITDS
    becomes operational.

-   **Prototyped Key CBP Functionality in SAP**. The eCP prototyped and
    demonstrated key CBP functionality in SAP to subject matter experts
    and executives in early December 2003. SAP will enable critical
    business processes. The prototyping will serve as a jumpstart to the
    Global Business Blueprinting (GBB) activities.

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-   **Held 4th Annual Trade Symposium.** In November 2003, The Trade
    Symposium focused on three topics: the role of CBP in the new DHS;
    top priorities and initiatives in defending our Nation against
    terrorism while facilitating the flow of legitimate trade and
    traffic; and the functionality unification at the border. The CBPMO
    provided a live ACE Secure Data Portal demonstration and video
    outlining benefits of the Modernization and ACE. Various
    informational documents were distributed to trade representatives to
    further educate the business community on ACE capabilities and
    recent program developments.

## Open General Accounting Office Recommendations 

In coordination with the GAO, the CBPMO has closed three recommendations
from previous GAO reports on the following topics:

-   **Incremental Investment Decisions**. The CBPMO has demonstrated its
    commitment to manage the Modernization effort in conformance with
    the recommendation to justify investment decisions incrementally
    based on ACE releases.

-   **Management Reserve (MR)**. The CBPMO has taken the actions
    necessary to limit future expenditure plan requests for MR to 10
    percent of total funds, or to justify MR requests in excess of 10
    percent.

-   **Accelerated ACE Acquisition Strategy**. The ACE program has
    transitioned away from the accelerated schedule that was
    contemplated in early 2002. Based on program rebaselining and
    funding profiles, ACE development is expected to be a 6-year
    program.

The status of the following GAO recommendations will be assessed as part
of the FY04 ACE Expenditure Plan review. A determination will be made by
the GAO as to whether the actions taken by CBP dictate that the
remaining recommendations can be closed.

### Cost-Estimating Program

***GAO Recommendation: Develop and implement a rigorous and analytically
verifiable cost-estimating program***

The CBPMO has an established independent cost-estimating capability
using a Life-Cycle Cost Model (LCCM). The LCCM enables the analysis and
validation of contractor cost and schedule estimates, and helps
determine whether the proposed costs and schedule for specific pieces of
work are realistic and reliable. To date, the CBPMO has successfully
used the LCCM to provide Independent Government Cost Estimates (IGCEs)
for 11 procurement efforts. The LCCM is independent of all cost and
schedule estimates from eCP, and relies on information that is published
in the ACE Program Plan. The LCCM will produce a full Life-Cycle Cost
Estimate (LCCE) subsequent to the final approval of the revised ACE
Program Plan.

As part of its review of the fourth ACE Expenditure Plan, the GAO
indicated that CBP actions are fully consistent with GAO's
recommendations, and that CBP is making progress regarding the GAO's
cost-estimating recommendation.

### Human Capital Management (HCM)

***GAO Recommendation: Immediately develop and implement a CBPMO HCM
plan and missing HCM practices, and report quarterly on progress***

Ongoing HCM initiatives and activities include:

-   [Human Capital Capability Scorecard]{.underline}. An Office of
    Information and Technology (OIT)-wide assessment gathered data from
    OIT employees and contractors, and reviewed documents that provided
    information on Human Capital (HC) investments and policies. The OIT
    is currently analyzing the report's recommendations. These address,
    among other topics, leadership effectiveness, the creation of a more
    effective learning environment, and information access and sharing
    in the workforce. The CBPMO will revise its Strategic Human Capital
    Management Plan to address the recommendations and drive
    improvements in the areas of greatest need.

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-   [Jump Start Program]{.underline}. Provides sponsors to new employees
    and contractors to assist them in navigating within the
    organization. A pilot phase was completed in October 2003, and Jump
    Start is now an ongoing element of the CBPMO orientation program.

-   [Recruiting]{.underline}. The CBPMO is actively working to fill nine
    vacancies. A task force has been established by the Acting Assistant
    Commissioner, OIT, to address the CBPMO resource issues and examine
    future human resource needs. At the request of DHS, the CBPMO is
    developing a staffing plan that will: describe the types of
    resources required and in what quantities; describe any new
    positions proposed for the organization and how those positions will
    be staffed; and include a responsibility assignment matrix that
    defines high-level roles and responsibilities for the program team.

-   [Training Needs Assessment]{.underline}. The FY 04 Modernization
    Training Plan was developed based on a recently completed training
    needs assessment. A new focus for 2004 is on assisting CBPMO
    employees with further developing their acquisition and project
    management skills.

-   [Tip of the Month]{.underline}. A *Human Capital Tip of the Month*
    is published regularly and provides government supervisors and
    managers with information on how to leverage their human capital and
    improve their supervisory skills.

-   [Tool Kits for Managers]{.underline}. As part of an Effective
    Manager's Handbook, orientation and retention tool kits have been
    developed to facilitate educating new employees, and to help
    supervisors and managers in their leadership. Tool kit topics
    include setting challenges, coaching for higher performance,
    rewarding achievement, and encouraging teamwork.

### Software Acquisition Capability Maturity Model (SA-CMM)

***GAO Recommendation: Develop and implement process controls for SA-CMM
Level 2 Key Process Areas (KPAs) and Level 3 Acquisition Risk Management
KPA; and develop and implement missing SA-CMM practices and report
quarterly on progress***

Carnegie Mellon University's Software Engineering Institute (SEI) led a
rated assessment of the CBPMO using the SA-CMM framework from October 27
to November 5, 2003. This assessment resulted in the CBPMO achieving a
maturity Level 2 -- the maturity level at which a software acquisition
organization's processes are institutionalized and consistently
implemented. The CBPMO was the first government modernization office to
achieve this rating. A Process Improvement Action Report is being
developed to address the recommendations and process improvement
opportunities reported by the CBPMO/SEI assessment team.

The Level 3 Acquisition Risk Management KPA was not included in the
formal assessment. However, input was received prior to the formal
assessment, from the lead assessor, who indicated that the CBPMO was
accomplishing the action and activities to satisfy the intent of the GAO
recommendation. To satisfy two related SEI concerns in this area, the
CBPMO is documenting and managing sensitive risks in compliance with the
approved Sensitive Risk and Issue Management Process, and has expanded
risk data analysis to include forecasting capability, and reporting and
reviewing additional analyses of program data.

### Independent Verification and Validation (IV&V)

***GAO Recommendation: Establish an IV&V function to assist in
overseeing systems integration contractor efforts.***

To complement the previously implemented IV&V actions that have provided
value in reducing risks, the CBPMO developed and implemented the IV&V
processes to describe the independent assessment approach,
organizational roles, and IV&V reporting relationships and
methodologies. Additionally, the Strategic Implementation Plan for
Integrated IV&V was approved by the Acting Assistant Commissioner,
Office of Information and Technology, on December 12, 2003. The next
steps are to meet with the GAO to identify any remaining concerns and to
collect artifacts from existing processes to demonstrate the
effectiveness of IV&V activities.

### Enterprise Architecture (EA) Certification

***GAO Recommendation: Certify that the EA has been extended before
building each ACE release***

To support EA certification activities, a diversified architecture team
is coordinating and conducting the EA Certification in concurrence with
a defined plan. The plan incorporates criteria that will verify
sufficient EA breadth and depth are present to guide the Release as
stated by GAO. Currently, a joint effort is underway to mitigate any
current issues prior to EA Certification. In the future, the EA
Certification work will be monitored throughout the development life
cycle with use of EA evaluations. The next expected certification will
occur in spring 2004 for ACE Release 5 and Selectivity 1.

### Use of ACE Infrastructure for DHS

***GAO Recommendation: Take appropriate steps to have future ACE
expenditure plans specifically address proposals or plans to extend or
use ACE infrastructure to support other homeland security
applications***

In a December 8, 2003, memorandum, CBP recommended to DHS that an
advisory committee, comprised of appropriate DHS directorate and agency
representatives as well as selected private industry experts, be
established to support the CBPMO. The council's mission would be to
provide recommendations -- from a broad departmental and external
stakeholder perspective -- on CBPMO initiatives, particularly ACE.
Potential benefits include insight and recommendations on DHS-wide
business process integration that could influence ACE development; input
on infrastructure and cyber security for consideration in ACE
development; and shared best practices and innovative technology being
applied in council members' respective organizations. In the same
memorandum, CBP invited the Transportation Security Administration and
the Information Analysis and Infrastructure Protection Directorate to
assign one member each to the Executive Steering Committee. These
organizations' national perspectives on myriad security matters would
add great value to CBP as it works to enhance business processes in the
context of its dual mission of border security and trade facilitation.

# Schedule

With the successful ORR for ACE Release 2 accomplished, ACE Releases 3
(Expanded Accounts Management) and 4 (Cargo Release and Tracer) are the
current focus in the program. As briefed to Appropriations Committees
staff members in October 2003 and reported in the October 1, 2003, ACE
Report to Congress, eCP replanned the ACE project in coordination with
CBPMO. This included revising the ACE development schedule. The CBPMO
was informed by eCP that ACE Releases 3 and 4 would experience delays
from the dates indicated in the revised ACE Program Plan. There are
three primary factors currently affecting ACE Release 3 and 4 schedules:
(1) design and implementation challenges with security architecture, the
ACE Portal, and Alternative User Interface; (2) longer than expected
lead times to procure and establish test environments (hardware and
software platforms to run the applications); and (3) space requirements
that exceeded the available computing space at the National Data Center
(NDC) (eCP is moving some environments from NDC to their Tysons Corner,
VA facility).

For context, the table below reflects original contract baselines, and
subsequent performance baseline changes to dates for the ACE Release 3
and ACE Release 4 Production Readiness Reviews (PRRs) and ORRs. The
CBPMO is currently assessing the impact on the overall ACE program
schedule.

  ---------------- ------------------ --------------------- ---------------
  Milestone        Contract Baseline  Revised Program Plan  Current
                                                            Projection

  ACE Release 3    12/15/03           4/30/04               5/30/04
  PRR                                                       

  ACE Release 3    3/15/04            7/30/04               8/26/04
  ORR                                                       

  ACE Release 4    4/14/04            10/29/04              11/26/04
  PRR                                                       

  ACE Release 4    7/15/04            1/31/05               2/23/05
  ORR                                                       
  ---------------- ------------------ --------------------- ---------------

Figure 1: ACE Releases 3 and 4 Schedules

The CBPMO continues to monitor and address other requirements that could
impact on ACE Releases 3 and 4 and future release schedules. For
example, the CBPMO understands the requirement to make ACE Section 508
compliant (a 1998 amendment to Section 508 of the Rehabilitation Act of
1973 requires that Federal agencies\' electronic and information
technology be accessible to people with disabilities). The eCP is
building the required capabilities over the remaining release deployment
schedule to ensure Section 508 obligations are satisfied as ACE becomes
fully operational. The CBPMO will continually assess this and other
requirements to determine schedule and cost impacts.

The CBPMO is aggressively overseeing these schedule issues and has taken
the following actions:

-   Directed eCP to identify all outstanding requirements (Section 508,
    training, environments, other) and provide accurate cost and
    schedule impacts for each.

-   Implemented a rigorous scope management process to minimize any
    non-essential work and associated cost (implemented as action from
    cost containment Integrated Project Team (IPT)).

-   Directed eCP to conduct analysis and make recommendations regarding
    specific functionality that could be deferred to follow-on releases
    without significantly impacting the functionality delivered in ACE
    Releases 3 and 4.

-   Continued to monitor project status closely to identify any cost
    containment opportunities and risk/issues that require government
    action.

# Cost

## Fiscal Status: Funding and Expenditures

![](media/image2.wmf)To date, Congress has appropriated \$1.07 billion
for ACE/ITDS. Congress has released \$751 million, and \$584 million has
been obligated (of which \$457 million has been obligated specifically
to ACE development task orders). Figure 2 provides a summary of ACE
funding, obligations, and expenditures through December 31, 2003.

Figure 2: ACE Funding Status (includes ITDS)

## Fiscal Year 2004 ACE Expenditure Plan

The FY04 ACE Expenditure Plan was the first submitted by CBP under DHS.
This plan requested \$318.7 million for ACE development and program
management. To help ensure effective management and program integration,
appropriate time had to be taken to provide comprehensive background
briefings to DHS officials; to ensure CBP met DHS detailed information
requirements; and to ensure proper integration investment management
review and approval processes. The coordination and lessons learned will
improve the future expenditure plan cycle.

However, the result for the FY04 Expenditure Plan was a delay to the
review schedule while the CBPMO worked to provide the additional
information, and to update the FY 04 Expenditure Plan to align with the
elements of the revised ACE Program Plan. As a result, there is a
significant funding gap between the end of FY03 and the expected release
of FY04 funds in the March 2004 timeframe. The CBP has a risk mitigation
plan in effect to address this funding gap. The strategy calls for the
use of previously released funding to maintain program continuity
through February 29, 2004. Management reserve funds used for continuity
of previously approved work during this period will be replenished upon
approval of the FY04 Expenditure Plan. Additionally, near-term program
requirements not addressed via management reserve will be funded via
internal reallocations to avoid impacting the ACE program schedule.

## Cost Containment

The CBPMO currently assesses that the delays described in Section 2 have
resulted in a \$34 million cost increase for the ACE Release 3 and 4
task order. To contain and reduce cost, schedule, and performance
variance in this and other program areas, the CBPMO is closely
monitoring eCP performance and progress on ACE. The CBPMO is also
aggressively addressing program risks and issues so that effective
corrective actions can be taken to minimize impacts to the program. For
context, the current overall program cost variance is currently an
estimated 9 percent. The CBPMO has also established a Cost Containment
IPT to achieve the following objectives:

-   Contain cost, schedule, and performance variance within 10 percent
    of program baseline

-   Deliver ACE Releases 3 and 4 to satisfy all user requirements as
    defined in the baselined Requirements Specification Set, and within
    approved cost parameters

-   Increase CBPMO understanding of the cost components of all eCP
    deliverables

-   Understand scope, risk, and dependency cost drivers

-   Identify, analyze, and communicate upon discovery all
    project-related unplanned costs

-   Improve program implementation strategies to bring about cost
    savings

-   Reduce and/or eliminate requirements creep

-   Early notification and vetting of new cost requirements

-   Reduce government cost risk over contract period of performance

-   Develop and execute approved cost containment strategies

-   Improve accuracy and quality of cost impact analyses

-   Improve awareness of cost drivers and risks

-   Provide greater insight into the cost management process through the
    Cost Performance Review.

# Near-Term Milestones 

The following are key near-term milestones scheduled between January 1
and April 30, 2004.

-   **January 2004: Continued Global Business Blueprinting (GBB)
    Activities.** The GBB project will run through May 2004, with the
    objective of establishing the business processes and enabling
    technology framework for ACE Releases 6 and 7. Activities will
    include joint eCP/CBP workshops, port visits, and additional SAP
    prototyping to support this objective. At the conclusion of GBB, CBP
    and eCP will have a clear path forward, in addition to insight
    regarding how best to leverage SAP and build upon the work done to
    date in ACE Releases 2 through 5.

-   **January 2004: Trade Support Network (TSN).** A TSN meeting with
    representatives from the trade community is scheduled in
    January 2004. Projected agenda topics include: review of Global
    Business Blueprinting Approach; Status Report on ACE Release 3
    Periodic Payment and Enhanced Account Management Functionality;
    Periodic Payment Business Process Flow; Status Report of ACE Release
    4; Results of September usability session with truck carriers; ACE
    Release 5: Manifest for All Modes; Global Business Blueprinting, ACE
    Releases 6 and 7. Regular committee meetings to discuss ACE
    requirements will also be held.

-   **January 2004: Federal Register Notice (FRN) to Recruit Broker
    Accounts.** The FRN will be issued to establish designated broker
    accounts for participation in the periodic payment features of ACE. 
    This FRN will ask for confirmation from the initial 41 ACE importers
    who wish to participate in the test, and will permit brokers
    designated by the participating importers to establish ACE portal
    accounts so that they may make payments on the importer\'s behalf.

-   **January 2004: FRN Notice to Recruit Truck Carriers.** The FRN will
    be issued to establish ACE portal accounts for truck carriers. This
    FRN will also provide all modes of transportation with the
    opportunity to submit applications to become ACE portal accounts for
    future releases. Only truck carriers will be able to participate in
    the electronic truck manifest test that will be addressed by a
    subsequent FRN notice.

-   **January 2004: ITDS Workshops.** Preliminary planning has begun on
    new workshops for targeted agencies. These workshops will include an
    overview of planned ACE processes and functionality, and support for
    the participating agencies in developing their concepts of
    operations documents outlining their needs with respect to ACE/ITDS.

-   **February 2004: Systems Integration Testing (SIT) for ACE Release
    3.** Upon concluding SWIT testing, ACE Release 3 will enter SIT in
    January 2004 followed by System Acceptance Testing (SAT) testing
    March 2004. During SIT testing, individual components will be tested
    to ensure their integration in the production environment.

-   **February 2004: ITDS Program Plan.** The ITDS Program Plan is a
    general description of the ITDS program, vision, goals, and
    objectives. It describes how the program will be managed, and
    outlines what actions a government agency must take to participate
    in the program. The Program Plan contains an appendix highlighting
    priorities for the next two fiscal years and a schedule for
    participating agency integration.

# Outlook

As ACE capabilities are expanded to additional users during the coming
months, the CBPMO will maintain high program standards to ensure ACE
capabilities continue to hit the mark once deployed. As ACE development
moves forward, the CBPMO is also actively engaged with leaders of other
important DHS programs, most notably US-VISIT. Significant coordination
and communication has and will continue to take place between the
US-VISIT program office and the CBPMO. The goal of this interface is to
leverage the capabilities and infrastructure of the two programs where
possible. In earlier collaboration efforts, the US-VISIT program office
and CBPMO sponsored an independent assessment of the legacy CBP and
legacy Immigration and Naturalization Service networks to identify the
appropriate technical approach to satisfy US-VISIT's requirements.
Program lessons learned and best practices have been shared, and future
off-sites will focus on opportunities for collaboration, including:

-   Sharing program office governance, organization, and processes

-   Sharing lessons on acquiring and working with prime contractors

-   Synchronizing end-to-end program life cycles, from business
    architecture through workforce transformation

-   Coordinating enterprise architecture activities

-   Establishing a single security assessment office

-   Consolidating targeting tools

-   Coordinating creation of a core case record with the Consolidated
    Enforcement Environment program

-   Determining approaches to leverage the Border and Transportation
    Security (BTS) Integration study

-   Aligning future expenditure plans

-   Collaborating with the Customs Automated Port Profile System II
    Program

ACE continues to be a complex and challenging endeavor. Aggressive
actions are being taken to address schedule delays, contain costs, and
hold the systems integration contractor to high performance standards.
The program management staff knows where the ACE program stands, and
what the risks are. Program leadership is making deliberate decisions
that will continue to advance the program while ensuring a high quality
final outcome. As evidenced by the recent Software Capability Maturity
Model (reported in October 1, 2003 report) and SA-CMM assessments by the
SEI, the CBPMO and systems integration contractor have achieved a
significant process maturity rating. These processes will be a
continuing focus as the program implements process improvement
activities.

The program team will continue to build on its capabilities and improve
its ability to provide effective direction and program monitoring. A
briefing on program monitoring was provided to the GAO representatives
in mid-November 2003. At this meeting, the specific program management
controls that have been incorporated into the program were highlighted.
From the project level to the highest levels of CBP leadership, the
focus is on continuous improvement as we move toward the final objective
of putting the full complement of ACE capabilities on America's borders
to increase security and facilitate commerce.

For More Information:

Additional information on ACE may be found on the CBP website
(www.cbp.gov) under the *Modernization and ACE* link.

The first five reports to Congress on ACE may be found on the CBP
website at

http://www.cbp.gov/xp/cgov/toolbox/about/modernization/quarterly_reports/

Questions may be directed to:

> L. Seth Statler

Deputy Assistant Commissioner\
Office of Congressional Affairs\
(202) 927-1760\
\
Sharon Mazur

> Acting Executive Director\
> U.S. Customs and Border Protection Modernization Office\
> (703) 440-3000

A.  NAFTA Requirements for ACE and Description of ACE Functionality

<table style="width:100%;">
<colgroup>
<col style="width: 19%" />
<col style="width: 11%" />
<col style="width: 11%" />
<col style="width: 11%" />
<col style="width: 11%" />
<col style="width: 4%" />
<col style="width: 4%" />
<col style="width: 4%" />
<col style="width: 11%" />
<col style="width: 11%" />
</colgroup>
<thead>
<tr class="header">
<th>Modernization Act Requirements for Electronic Processing</th>
<th><p>Release 1</p>
<p>Release 2</p></th>
<th>Release 3</th>
<th>Release 4</th>
<th>Release 5</th>
<th>S1</th>
<th>S2</th>
<th>S3</th>
<th>Release 6</th>
<th>Release<br />
7</th>
</tr>
</thead>
<tbody>
<tr class="odd">
<td colspan="10">Subtitle A – Improvements in Customs Enforcement</td>
</tr>
<tr class="even">
<td>Penalties for violations of arrival, reporting, entry, and clearance
requirements</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>CBP Testing Laboratories; Detention of Merchandise</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Review of Protests</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Penalties Relating to Manifests</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Penalties for False Drawback Claims</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Interpretative Rulings and Decisions; Public Information</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td colspan="10">Subtitle B – National Customs Automation Program</td>
</tr>
<tr class="odd">
<td>Electronic Entry of Merchandise</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Electronic Entry Summary</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Electronic Invoice</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Electronic Manifest</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Electronic Payments of Duties and Fees</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Electronic Liquidation</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Electronic Cargo and Entry Summary Selectivity</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Electronic Protests</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Customhouse Brokers</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Electronic Remote Entry Filing</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Import Activity Summary Statements and Reconciliation</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Electronic Bonds</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Electronic Penalties</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Electronic Drawback Claims, Records, and Entries</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Electronic Refunds</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td colspan="10">Subtitle C – Miscellaneous Amendments to the Tariff Act
of 1930</td>
</tr>
<tr class="odd">
<td>Report of Arrival</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Entry of Vessels</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Unlading</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>General Order</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Entry Under Regulations/ Informal Entries</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Simplified Recordkeeping for Merchandise Transported by
Pipeline</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Entry for Warehouse</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Collection of Fees on Behalf of Other Agencies</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="10">Subtitle D – Miscellaneous Provisions and Consequential
and Conforming Amendments to Other Laws</td>
</tr>
<tr class="even">
<td>Vessel Clearance</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
</tbody>
</table>

**[ACE Implementation]{.underline}**

The functional capabilities of ACE are expected to deliver increased
border security and improved compliance. The ACE will also increase
efficiency and improve customer service for key stakeholders that
include importers, brokers, carriers, and other government agencies. The
ACE capabilities will be delivered approximately every six months during
the 6-year schedule.

The ACE Release 2 provides initial on-line account capabilities to CBP
and the trade community. Initial account revenue capabilities will be
enabled in ACE Release 3, allowing accounts to centralize payment
processing and to utilize monthly periodic statement and payment
capabilities, as well as Automated Clearinghouse (ACH) Credit and Debit.
Cargo Processing in ACE will begin in ACE Release 4 with the
implementation of Automated Truck Manifest and Preferred and Standard
e-Releases for trucks at eight land border ports. This will allow for
quicker entry for pre-filed and pre-approved cargo. Delivery of
electronic release capability in ACE Release 4 will proceed in phases;
phase one includes eight land border ports, and phase two will include
the remaining 80-plus land ports. These deliveries will be followed by
deployment to 250 ports, including sea, air, and rail. The ACE will
ultimately be delivered to all ports, transportation modes, and
locations.

The following paragraphs summarize ACE implementation activities for ACE
Releases 2-4.

**[ACE Release 2: Spring 2003 (completed production
readiness)]{.underline}**

Features:

-   **Trade Account Profile** **--** Aggregation of data pertaining to
    an account's performance in all phases of its activities with CBP.
    Examples include compliance issues relating to import transactions,
    compliance with rules and regulations, payment history, etc. This
    information is used to evaluate the account's risk of potential
    non-compliance.

-   **Action Plan** **--** A course of action, created jointly by a
    trade account and CBP, which is intended to increase the level of
    compliance of that trade account.

-   **Significant Activity Log (SAL) --** An auditable record of the
    significant activities that occur between CBP and a trade account.

-   **Quick View Reports** **--** Summary reports available through the
    Harmonized Tariff Schedule (HTS) about CBP-related activities (i.e.,
    Aggregated Entry Summary Compliance reports).

ACE Release 2 brought ACE to the public for the first time. Currently,
50 importer accounts and related CBP personnel have access to the ACE
Secure Data Portal to conduct their CBP business transactions on-line.

**[ACE Release 3: Summer 2004 (scheduled production
readiness)]{.underline}**

Features:

-   **Monthly Periodic Statement** **--** A monthly summary of the
    receivables and disbursements relating to a particular trade account
    and covering a specified period.

-   **Monthly Periodic Payment --** A financial transaction in which a
    trade account pays the obligations, such as duties, fees, taxes,
    fines, or penalties it owes to CBP.

-   **ACH Credit Payment --** Payment method where the payer initiates
    payment through its financial institution. The financial institution
    electronically transmits the payment through the ACH/Federal Reserve
    network to the CBP account maintained by the Department of the
    Treasury.

-   **ACH Debit Payment --** Payment method where the payer transmits
    payment authorization to CBP, and CBP sends the payment information
    through the network to the payer\'s financial institution.

ACE Release 3 will expand the account management framework to a larger
trade audience, including brokers, carriers, and CBP officers overseeing
those areas. The Account Profiles for importers, brokers, and carriers
will support some information relevant to the Customs-Trade Partnership
Against Terrorism. It will provide a record of communications between
the account and CBP (and ultimately with PGAs) via the SAL.

This release will provide a new CBP revenue capability that allows
importers and their designated brokers to make periodic monthly payments
for monthly statements of duties and fees. In addition, this release
will establish the first CBP customer- based subsidiary ledger for
financial transaction processing, and will provide an expanded account
view into account activity logs and exam findings.

**[ACE Release 4: Winter 2005 (scheduled production
readiness)]{.underline}**

Features:

-   **Automated Truck Manifest** **--** Truck drivers submit a list of
    the separate items of freight being transported by a conveyance,
    together with their distinguishing marks, numbers, or
    characteristics.

-   **e-Release** **--** The electronic process by which CBP authorizes
    the transfer (i.e., release) of goods from the carrier or warehouse
    to an importer, thereby allowing goods to be entered into the United
    States.

The ACE Release 4 will provide an electronic truck manifest, a primary
inspector interface, and expedited importation processing. The inspector
interface will consolidate more than seven separate cargo release
systems to provide CBP officers with a comprehensive view of enforcement
and transaction history data to enhance enforcement capabilities and
simultaneously expedite the movement of trade. The electronic manifest
will fulfill the mandate from the Trade Act of 2002 to provide an
electronic manifest for trucks. The automated manifest release processes
will determine the admissibility of cargo, conveyances, and equipment
arriving in the United States. The Release will interface with Automated
Targeting System to provide selectivity data to CBP primary officers to
target high-risk transactions, and Tracer to record and track
information associated with potential or actual non-compliance.
Preferred e-Release functionality will subsume the Free and Secure Trade
(FAST) Declaration (manifest filing) and FAST Release (Release truck and
cargo and creation of entries) functionality.

This release includes the first PGA, the Federal Motor Carrier Safety
Administration, to manage truck safety issues at U.S. land borders. The
ACE Release 4 processing will be initially deployed in up to eight truck
ports and then expanded to all U.S. land border crossings. Once ACE
Release 4 is deployed in all FAST ports, ACE will process all of the
FAST transactions (Declaration and Release).

ACE Releases 3 and 4 passed the formal review and approval during the
Critical Design Review with CBP officials in early fall 2003 and are now
in the construction phase. Following the construction phase, the test
phase will begin.

While under development, communication events and activities are being
scheduled to acquaint CBP personnel and trade representatives with
details of ACE Releases 3 and 4. The CBP BPOs are working closely with
CBPMO and eCP to prepare Workforce Transformation Outreach plans to
acquaint stakeholders with of ACE Release 3.

Training will be instructor-led for up to 3,000 CBP end-users for ACE
Release 3, and up to 2,000 CBP end-users for ACE Release 4.
Computer-Based Training (CBT) will be developed to train trade
participants and end-users working for PGAs for both Releases. The UAT
will follow the training for both ACE Releases 3 and 4 and will consist
of reviewing tasks that are relevant to the end-users' usual duties.

ACE Releases 3 and 4 aim to expand access to approximately 1,100
importers and their associated carriers and brokers. A total of three
FRNs will be issued for ACE Releases 3 and 4 to recruit accounts for the
pilot test.

The first FRN will be issued in January 2004 to establish designated
broker accounts for participation in Periodic Payment. 

The second FRN notice will also be issued in January 2004 and will
establish ACE portal accounts for truck carriers.

The third FRN will be issued in July 2004 to announce the pilot test for
Automated Truck Manifest.

Issue dates for the FRNs are subject to change based on further
development of the account expansion strategy.

**[ACE Release 5: Spring 2005 (scheduled production
readiness)]{.underline}**

**Features:**

-   **Security and Commercial Accounts:**

```{=html}
<!-- -->
```
-   Freight Forwarders Accounts

```{=html}
<!-- -->
```
-   **Cargo and Enforcement Processing:**

```{=html}
<!-- -->
```
-   Air, Rail, and Sea automated manifest interface

-   Air, Rail, and Sea e-Release

-   Enforcement and Tracer for Air, Rail, and Sea Manifest and Release

```{=html}
<!-- -->
```
-   **Reference Data:**

```{=html}
<!-- -->
```
-   Tracking of Informed Compliance Pubs, Policy Changes, and Handbooks

```{=html}
<!-- -->
```
-   On-line reference library

```{=html}
<!-- -->
```
-   Manifest Reference Data

```{=html}
<!-- -->
```
-   Electronic field directives

**[ACE Release Selectivity 1: Summer 2005 (scheduled production
readiness)]{.underline}**

Features:

-   Initial Criteria Management

-   Initial Release Selectivity functionality using Manifest and Entry
    for Air, Rail, Sea, and Truck

**[ACE Release Selectivity 2: Winter 2006 (scheduled production
readiness)]{.underline}**

Features:

-   Consolidated Release Selectivity functionality using Manifest and
    Entry for Air, Rail, Sea, and Truck

-   Post Release Selectivity

-   Enhanced Criteria Management

-   System generated analysis

**[ACE Release Selectivity 3: Summer 2006 (scheduled production
readiness)]{.underline}**

Features:

-   Selectivity functionality for export, mail, courier, pipeline, hand
    carry, and multi-modal manifest

-   Enhanced Risk Management Activities

**[ACE Release 6: Fall 2006 (scheduled production
readiness)]{.underline}**

**Features:**

-   **Security and Commercial Accounts:**

```{=html}
<!-- -->
```
-   Remaining import account types

-   Bond data and bond sufficiency

-   Maintain CBP licenses, permits, and certificates

-   Account view of export data

-   Administrative messaging

-   Periodic statements

-   Accept payments (including Electronic Funds Transfer and lockbox)

-   Enhanced General Ledger Integration with Subsidiary Ledgers

-   Refunds for liquidation

-   Chief Financial Officer reports

-   Violation Billing

```{=html}
<!-- -->
```
-   **Cargo and Enforcement Processing:**

```{=html}
<!-- -->
```
-   Accept all major entry types

-   Initial Cargo, Conveyance, Individual, and Equipment (CCIE) tracking

-   Enforcement and Tracer for entry summary and all entry types (except
    mail, courier, hand carry, and pipeline)

-   Tracer for initial cargo tracking, Quote/Visa,
    Anti-dumping/Countervailing duty

```{=html}
<!-- -->
```
-   **Port Release Processing:**

```{=html}
<!-- -->
```
-   Entry summary, Temporary Importation Bond, Vessel repair

-   Reconciliation

-   Liquidation/Close out

-   Quota, Visa, Anti-Dumping/Countervailing Duty

```{=html}
<!-- -->
```
-   **Reference Data:**

```{=html}
<!-- -->
```
-   Receive electronic ruling request

-   Tracking of Legal Notices, Congressional Responses, and Agreements

-   Quota/Visa

-   Import Reference Data

-   Statistical analysis and reports

-   Non-CBP Licenses, Permits, and Certificate

**[ACE Release 7: Winter 2007 (scheduled production
readiness)]{.underline}**

**Features:**

-   **Security and Commercial Accounts:**

```{=html}
<!-- -->
```
-   Exporter Accounts

-   Regulatory audit

-   Full compliance analysis

-   Accept cash payments

-   Import Activity Summary Statement (IASS) Statements

-   Miscellaneous refunds

-   Full revenue processing

-   Drawback and protest refunds

```{=html}
<!-- -->
```
-   Full General Ledger Integration with Subsidiary Ledgers

```{=html}
<!-- -->
```
-   **Cargo and Enforcement Processing**

```{=html}
<!-- -->
```
-   Mail, Courier, Hand Carry, Pipeline manifest, e-Release, and
    Tracking

-   Multi-modal manifest

-   Full CCIE tracking

-   Full export processing

-   Enforcement and Tracer for Mail, Courier, Hand Carry, and Pipeline

-   Enforcement and Tracer for exports, drawback, IASS, Cargo and
    conveyance tracking, and account compliance

```{=html}
<!-- -->
```
-   **Port Release Processing:**

```{=html}
<!-- -->
```
-   IASS

-   Protest, drawback

```{=html}
<!-- -->
```
-   **Reference Data:**

```{=html}
<!-- -->
```
-   Full electronic ruling processing

-   e-Training

-   Full Freedom of Information Act (FOIA) processing

-   Export reference data

-   Watch lists

B.  Acronyms and Selected Definitions

  -------------- --------------------------------------------------------
  ACE            Automated Commercial Environment. The first project of
                 U.S. Customs and Border Protection Modernization.
                 Through enhanced business processes and the new
                 technology in ACE that will support them, border
                 security and trade facilitation will be greatly
                 enhanced.

  ACH            Automated Clearinghouse

  BPO            Business Process Owners

  CBP            U.S. Customs and Border Protection

  CBT            Computer-Based Training

  CBPMO          U.S. Customs and Border Protection Modernization Office.
                 The program office for the Automated Commercial
                 Environment.

  DHS            Department of Homeland Security

  EA             Enterprise Architecture

  eCP            e-Customs Partnership

  ESC            Executive Steering Committee

  FAST           Free and Secure Trade

  FRN            Federal Register Notice

  FY             Fiscal Year

  GAO            General Accounting Office

  GATT           Global Agreement on Tariffs and Trade

  GBB            Global Business Blueprinting

  GSN            Government Support Network

  HC             Human Capital

  HCC            Human Capital Capability

  HCM            Human Capital Management

  HCMP           Human Capital Management Plan. The human capital plan
                 that provides near and long-term HCM solutions to
                 support recruiting, retention, training, and tying
                 performance and reward programs to modernization goals.
  -------------- --------------------------------------------------------

  -------------- --------------------------------------------------------
  HTS            Harmonized Tariff Schedule. A comprehensive list (i.e.,
                 schedule) of duties to be charged for each listed
                 article, together with the governing rules and
                 regulations. The HTS is the U.S. expression of the
                 Harmonized Commodity Description and Coding System, an
                 international system for categorizing commodities
                 negotiated under the GATT, and maintained by the
                 International Trade Commission.

  IASS           Import Activity Summary Statement

  I^2^V^2^       Integrated Independent Verification and Validation

  IIF            Intelligent Information Factory

  IGCE           Independent Government Cost Estimate

  IPT            Integrated Project Team

  IT             Information Technology

  ITDS           International Trade Data System

  IV&V           Independent Verification and Validation

  KBRM           Knowledge-Based Risk Management

  KPA            Key Process Area

  LCCE           Life-Cycle Cost Estimate

  LCCM           Life-Cycle Cost Model

  MR             Management Reserve

  NAFTA          North American Free Trade Agreement

  NDC            National Data Center

  O&M            Operations and Maintenance

  OIT            Office of Information and Technology

  OMB            Office of Management and Budget

  ORR            Operational Readiness Review

  PGA            Participating Government Agency

  PRR            Production Readiness Review

  SA-CMM^®^      Software Acquisition-Capability Maturity Model^®^. The
                 SA-CMM was developed by Carnegie Mellon University's
                 Software Engineering Institute as a model for acquiring
                 or procuring software-intensive systems. It is used to
                 assess the maturity of an organization's systems
                 acquisition process to ensure that cost, schedule, and
                 performance goals are met. The CBPMO has achieved SA-CMM
                 Level 2 maturity. At Level 2, personnel in the
                 organization have "process discipline." They are
                 knowledgeable of promulgated policies, processes, and
                 procedures that relate to the project, and have
                 institutionalized them into their daily activities.

  SAL            Significant Activity Log

  SAP            Systems, Applications, and Products in Data Processing

  SAPG           Systems Acquisition Planning Group

  SAT            Systems Acceptance Testing

  SDLC           Software Development Lifecycle

  SEI^®^         Software Engineering Institute. See SA-CMM.

  SIT            Systems Integration Testing

  SME            Subject Matter Expert

  SW-CMM         Software Capability Maturity Model

  SWIT           Software Integration Testing

  TSN            Trade Support Network

  UAT            User Acceptance Testing
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