**GAO-11-86**                      Published: Jan 13, 2011. Publicly Released: Feb 04, 2011.                  

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## Highlights

	Since 2001, the National Archives and Records Administration (NARA) has been working to develop an Electronic Records Archive (ERA) to preserve and provide access to massive volumes and all types of electronic records. However, in acquiring this system, NARA has repeatedly revised the program schedule and increased the estimated costs for completion from $317 million to $567 million. NARA is to manage this acquisition using, among other things, earned value management (EVM). EVM is a project management approach that, if implemented appropriately, provides objective reports of project status and unbiased estimates of anticipated costs at completion. GAO was asked to (1) assess whether NARA is adequately using EVM techniques to manage the acquisition and (2) evaluate the earned value data to determine ERA's cost and schedule performance. To do so, GAO compared agency and contractor documentation with best practices, evaluated earned value data to determine performance trends, and interviewed cognizant officials.

	NARA has, to varying degrees, established selected best practices needed to manage the ERA acquisition through EVM, but weaknesses exist in most areas. For example, the scope of effort in ERA's work breakdown structure is not adequately defined, thus impeding the ability to measure progress made on contractor deliverables. These weaknesses exist in part because NARA lacks a comprehensive EVM policy, training, and specialized resources and also frequently replans the program. As a result, NARA has not been positioned to identify potential cost and schedule problems early and thus has not been able to take timely actions to correct problems and avoid program schedule delays and cost increases. ERA's earned value data trends do not accurately portray program status due to the program's weaknesses in implementing EVM; however, historical program trends indicate that future cost overruns will likely be between $195 million and $433 million to fully develop ERA as planned and between $205 and $405 million at program end. In contrast, the contractor's estimated cost overrun is $2.7 million. Without more useful earned value data, NARA will remain unprepared to effectively oversee contractor performance and make realistic projections of program costs. GAO recommends, among other things, that NARA establish a comprehensive plan for all remaining work; improve the accuracy of earned value performance reports; and engage executive leadership in correcting negative trends. NARA generally concurred with GAO's recommendations.

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## Topics

Government Operations

ArchivesBest practicesContract performanceCost analysisCost overrunsData integrityEarned value management systemsElectronic recordsElectronic records managementFederal agenciesFederal records managementInformation managementInformation storage and retrievalInformation systemsInformation technologyProgram evaluationSchedule slippagesWork measurementCost growthElectronic records archive

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