Department of Homeland Security
 

Adherence to Acquisition Management 

Policies Will Help Reduce Risks to the 

Technology Integration Program 

OIG-12-107 (Revised) September 2012
 
 

 

 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

 Washington, DC 20528 / www.oig.dhs.gov

 September 11, 2012 

MEMORANDUM FOR: Chris Cummiskey 

Deputy Under Secretary for Management 

FROM: Frank Deffer 

Assistant Inspector General 

Information Technology Audits 

SUBJECT: Re-issuance of Audit Report OIG-12-107, Adherence to 

Acquisition Management Policies Will Help Reduce Risks to 

the Technology Integration Program 

I am writing to inform you that the Department of Homeland Security (DHS) Office of 

Inspector General (OIG) has recalled the subject report and is now re-issuing it to modify 

the statement of compliance with generally accepted government auditing standards 

(GAGAS). We took these actions because it recently came to our attention that a family 

member of a senior OIG official was employed by an entity associated with this audit. 

To ensure that this impairment to our independence in appearance did not affect our 

findings and conclusions, we thoroughly re-reviewed our work on this audit, as well as 

the results. Through this re-review, we verified that the impairment did not affect our 

results; our evidence is sound and fully supports our findings and conclusions. 

Therefore, we are re-issuing this report and re-posting it on our website. The report is 

unchanged except for the statement of compliance with GAGAS found on page 13 of 

Appendix A – Objectives, Scope, and Methodology. 

We remain committed to assisting the Department in improving its effectiveness and 

efficiency to better carry out its mission, and we appreciate your support of our work. 

Please do not hesitate to call me at (202) 254-4100 if you have any questions or 

concerns. 

Attachment 
 

 

 

 

 

 

 

 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

Table of Contents 

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

Background ........................................................................................................................ 2
 

Results of Audit ................................................................................................................... 4
 

Technology Integration Program Progress ............................................................. 4
 

DHS Needs To Adhere to OMB and DHS Acquisition Guidance in Implementing 

TIP ........................................................................................................................... 6
 

Recommendations ............................................................................................... 10 

Management Comments and OIG Analysis ......................................................... 11 

Appendixes 

Appendix A: Objectives, Scope, and Methodology............................................ 13 

Appendix B: Management Comments to the Draft Report............................... 14 

Appendix C: Major Contributors to This Report ................................................ 16 

Appendix D: Report Distribution ........................................................................ 17 

Abbreviations 

ARRA American Recovery and Reinvestment Act

CPIC Capital Planning and Investment Control 

DHS Department of Homeland Security 

FY fiscal year

GSA General Services Administration

HMD Headquarters Management and Development

HQ headquarters 

IT information technology 

OCAO Office of Chief Administrative Officer 

OCIO Office of Chief Information Officer 

OMB Office of Management and Budget 

TIP Technology Integration Program 

USCG United States Coast Guard 

www.oig.dhs.gov OIG-12-107 
 

 

 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

Executive Summary

The Department of Homeland Security (DHS) is planning to consolidate its headquarters 

in the National Capital Region at the St. Elizabeths Campus in Washington, DC. We 

conducted an audit of the DHS program, known as the Technology Integration Program, 

to develop and implement an information technology infrastructure at its planned 

headquarters campus at St. Elizabeths. Our audit objectives were to assess the progress 

that DHS is making in implementing the Technology Integration Program and to identify 

areas where DHS needs to improve program management. 

DHS is making progress toward the implementation of an information technology 

infrastructure at the St. Elizabeths campus. Specifically, DHS is partnering with the 

General Services Administration by using its interagency information technology 

contracting vehicles. Further, the General Services Administration awarded a task order 

on behalf of DHS to acquire information technology resources for the Technology 

Integration Program. 

DHS can reduce project risk by adhering to DHS and Office of Management and Budget 

acquisition policies in implementing the Technology Integration Program. Specifically, 

DHS needs to designate the Technology Integration Program as a major acquisition 

program as required by DHS’ acquisition guidance. In addition, DHS needs to follow the 

reporting requirements outlined in the capital planning and investment control 

guidance and adhere to the DHS acquisition review process. Finally, DHS needs to

prepare a risk management plan for the Technology Integration Program. Taking these

steps will help reduce the risk that the Technology Integration Program will not meet its 

cost and performance goals. 

We recommend that the Chief Administrative Officer, in coordination with the Chief 

Information Officer (1) report the Technology Integration Program as a major 

acquisition and include it on the DHS Major Acquisition Oversight List, (2) prepare the 

required Office of Management and Budget Exhibit 300 and include Technology 

Integration Program cost and funding in the Department’s Exhibit 53 for applicable 

reporting periods, and (3) establish a risk management plan for the Technology 

Integration Program. 

www.oig.dhs.gov 1 OIG-12-107 
 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

Background 

In August 2005, DHS approved the information technology (IT) concept for DHS facilities 

at the St. Elizabeths headquarters (HQ) campus. This concept later became known as 

the Technology Integration Program (TIP). TIP focuses on developing and implementing 

an integrated IT infrastructure for the consolidated DHS HQ at St. Elizabeths. The TIP 

mission is to create a physically and logically diverse and redundant campus 

infrastructure that will support everything on and within the perimeter fence of the 

St. Elizabeths site. 

TIP consists of three phases of development to transition 14,000 DHS employees onto 

the St. Elizabeths campus. The United States Coast Guard (USCG) is scheduled to be the 

first component to move onto the campus. Table 1 shows the DHS personnel transition 

schedule by phase. 

Table 1. DHS St. Elizabeths Campus Personnel Transition Schedule

Phase Component 

Estimated 

Completion 

Fiscal Year (FY) 

1A USCG HQ 2013 

1B USCG Command Center/Shared Use Spaces 2013 

2A DHS HQ, Mission Support Components, and 

DHS Operations Centers 2017 

2B Federal Emergency Management Agency and 

DHS Amenity Spaces 2018 

3 Remaining DHS Components 2021 

In 2009, DHS initiated the DHS Headquarters Consolidation Program to consolidate 

component operating locations by increasing cross-collaboration and lowering 

operational costs. The DHS Headquarters Consolidation Program will increase 

efficiency, enhance communications, and foster a “One DHS” culture that will optimize 

Department-wide prevention, response, and recovery capabilities. DHS partnered with 

the General Services Administration (GSA) to develop planning-level requirements for a 

single secure location for all of DHS and its component HQ functions throughout the 

National Capital Region. GSA determined that the St. Elizabeths site was the only 

location that could meet DHS requirements to house 14,000 employees on one campus. 

The St. Elizabeths site development will be the largest project in the National Capital 

Region since the construction of the Pentagon. The DHS Headquarters Consolidation

Program is projected to cost approximately $3.9 billion. 

Under the DHS Headquarters Consolidation program, GSA, the Federal Government’s 

real estate agent, owns and is currently redeveloping the St. Elizabeths campus for DHS 

www.oig.dhs.gov 2 OIG-12-107 
 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

use. DHS created a program management office to assist GSA in the coordination and 

monitoring of the development of the St. Elizabeths campus. DHS’ Office of the Chief 

Administrative Officer (OCAO) Headquarters Management and Development (HMD) 

division was established to lead the Headquarters Consolidation Program and is 

responsible for program oversight to include program management, financial reporting, 

and TIP. OCAO/HMD is currently authorized 28 personnel, organized into five teams, to 

provide oversight of the DHS Headquarters Consolidation Program (see figure 1). OCAO 

personnel include architects; engineers; program managers; and communications, 

environment, finance, furniture, leases, rent, and security specialists. 

Figure 1. Headquarters Consolidation Program Organization Chart 

TIP funding was obtained from the Headquarters Consolidation Program, which received 

fiscal year (FY) appropriations and funds from the American Recovery and Reinvestment 

Act of 2009 (ARRA). Additionally, in FY 2009, the USCG received appropriations for 

Phase 1A at St. Elizabeths that were later transferred to GSA for tenant build-out, and IT 

and security infrastructure. For FYs 2009 to 2012, the Department and USCG received 

approximately $433 million in total funding for the entire Headquarters Consolidation 

Program, including the TIP infrastructure (see table 2). 

www.oig.dhs.gov 3 OIG-12-107 
 

 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

Table 2. DHS HQ Consolidation Program Annual Funding (in Millions) 

Funding FY 2009 ARRA FY 2010 FY 2011 FY 2012 Total 

Public Law 110-329 111-5 111-83 112-10 112-74 

USCG $97.578 $0 $0 $0 $0 $97.578 

DHS $2.7 $200 $0 $77.4 $55.979 $336.079 

Total Funding $100.278 $200 $0 $77.4 $55.979 $433.657 

Results of Audit 

DHS has taken steps to plan and design an IT infrastructure at the St. Elizabeths campus. 

Specifically, DHS has partnered with GSA by using its interagency IT contracting vehicles. 

Also, GSA awarded a task order on behalf of DHS to acquire IT resources for TIP. DHS 

can reduce project risk by adhering to Office of Management and Budget (OMB) and

DHS acquisition policies and guidance in implementing TIP. Specifically, DHS needs to 

designate TIP as a major acquisition program as required by its acquisition guidance. In 

addition, DHS needs to follow the reporting requirements outlined in the Capital 

Planning and Investment Control (CPIC) guidance and adhere to the DHS acquisition

review process. Finally, DHS needs to prepare a risk management plan for TIP. Taking 

these steps will help reduce the risk that TIP will not meet its cost and performance 

goals. 

Technology Integration Program Progress

DHS has made some progress toward the implementation of TIP at the 

St. Elizabeths headquarters campus. It is partnering with GSA to acquire IT 

services through interagency contracting vehicles. Additionally, GSA awarded a 

task order on behalf of DHS for the IT infrastructure.

DHS Is Partnering With GSA 

Under the DHS Headquarters Consolidation Program, GSA owns and is 

redeveloping the St. Elizabeths campus on behalf of DHS. Although GSA 

is responsible for the building, DHS is responsible for the IT cost, also 

known as TIP. DHS and GSA entered into a partnering agreement to use 

interagency contracting vehicles to acquire IT resources and services for 

TIP. On September 20, 2010, DHS and GSA signed and formalized a 

Memorandum of Understanding that defines the roles and responsibilities 

of both agencies for project oversight, including reporting, oversight, and 

tracking funds for the headquarters consolidation program. As noted in

the Memorandum of Understanding, GSA is the contracting agency 

www.oig.dhs.gov 4 OIG-12-107 
 

 

 

 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

responsible for delivering the TIP solution to DHS. The Government-Wide 

Acquisition Contracts administered by GSA on behalf of DHS for the TIP 

efforts are listed in table 3. 

Table 3. Contracts Administered by GSA for TIP

Contractor Responsibility 

General Dynamics To develop and deliver IT requirements for 

TIP Contractor engineering, implementation, and operation and 

maintenance of network systems that are 

reliable, certifiable, functional, available, and of 

optimal performance, in accordance with the 

TIP contract. 

Advanced Management To verify and validate the products, services, 

Strategies Group, Inc. and systems that will be installed during the 

Independent Verification construction and renovation of the 

and Validation Contractor St. Elizabeths campus IT infrastructure. 

Perkins and Wills 

IT Bridging Contractor 

To provide design documents to support the 

ongoing construction work in Phase 1 of the 

project. 

CLIMS, LLC Project 

Management Support 

Contractor 

To build a core support Project Management 

Office to assist the Information Technology 

Services Office, within the Office of Chief 

Information Officer (OCIO), to initiate and 

establish a cohesive and integrated program 

coordination team to support the DHS HQ 

Consolidation, which includes St. Elizabeths TIP. 

GSA Awarded the Task Order for TIP 

GSA awarded the TIP task order to General Dynamics in June 2011, for an 

estimated $877 million. The task order was awarded to provide a total 

solution for a single contractor to design, procure, configure, install, test, 

accept, and maintain a seamless integrated infrastructure in coordination 

with the construction phase. The scope of the task order was to create a

physically and logically diverse and redundant campus infrastructure that 

will support everything within the perimeter fence at St. Elizabeths. 

Additionally, General Dynamics was tasked to provide an integrated 

detailed design of how DHS IT can be linked into a common core 

enterprise standard platform. The TIP contractor is currently in its design

phase of the program life cycle. General Dynamics is scheduled to 

provide DHS with its designs by late April 2012. Once DHS accepts and 

approves the contractor’s designs, the scope of the contractor’s work will 

be established and the program development phase will commence. 

www.oig.dhs.gov 5 OIG-12-107 
 

 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

DHS Needs To Adhere to OMB and DHS Acquisition Guidance in Implementing 

TIP

DHS did not follow OMB and DHS acquisition policies and guidance when

implementing TIP. Specifically, it did not designate TIP as a major acquisition as 

required by DHS acquisition guidance. Further, DHS did not prepare reporting 

requirements outlined in the CPIC procedures, and did not follow the DHS

acquisition review process. Finally, DHS needs to prepare a risk management 

plan for TIP. Better adherence to these policies will reduce the risk that TIP will 

not meet its cost and performance objectives. 

Major Acquisition Program 

DHS did not establish TIP as a major acquisition program and as a result 

did not include TIP on DHS’ Major Acquisition Oversight List. DHS reviews 

its acquisition portfolio annually and develops a major acquisition 

oversight list. This list identifies programs that have been established in 

accordance with DHS Directive 102-01. All programs and projects that 

meet certain investment threshold criteria based on life cycle costs are 

included on this list. Because the life cycle costs of TIP are estimated to 

be $640 million for all three phases, it should be classified as a Level 2 

program (see table 4). 

According to OCAO officials, TIP was not designated as a major acquisition 

because they considered it to be a subset of the Headquarters 

Consolidation Program, which was included on the Major Acquisition 

Oversight List as a non-IT Level 2 Program in FY 2011. OCAO removed the 

program from the list in December 2011, following a reduction in 

congressional appropriations.

www.oig.dhs.gov 6 OIG-12-107 
 

 

 

 

 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

Table 4. CPIC Applicability to Investment Thresholds
 

Investment Investment Investment Major or Capital Exhibit Exhibit 

Level Threshold 

Based on 

Life Cycle 

Cost 

Type Nonmajor Investment 

Plan 

300 

Required 

53 

Required 

1 ; $1 billion IT Major X X X 

Non-IT Major X X 

2 $1 billion > 

$300 million 

IT Major X X X 

Non-IT Major X X 

3 $300 million 

> $50 million 

IT Major X X X 

 $50 million 

> $1 million 

IT Nonmajor X X 

 IT items IT Nonmajor One X 

under 

$1 million 

annually 

IT Capital Planning and Investment Control Procedures 

DHS has not established IT capital planning and investment controls for 

TIP. Specifically, DHS needs to implement a Capital Investment Plan and 

an OMB Exhibit 300 Business Case, and add the TIP to the items listed on 

the Department’s Investment portfolio, Exhibit 53. As required by 

Management Directive 4200.1, DHS’ IT CPIC guidance, a capital 

investment plan is used as a decision-making process for ensuring that IT 

investments support the agency’s mission and business needs. The CPIC 

process integrates strategic planning, architecture, security, budgeting, 

procurement, and the management of IT. OCAO officials did not follow

these guidelines, nor did they prepare the appropriate exhibits for TIP. 

According to OCAO officials, under the interagency acquisition1

relationship with GSA, they are a customer of GSA and as a result, not 

required to complete this documentation. 

1

 “Interagency acquisition” means the use of the Federal Supply Schedules, a multiagency contract (i.e., a 

task order or delivery order contract established by one agency for use by Government agencies to obtain 

supplies and services, consistent with the Economy Act, 31 U.S.C. 1535), or a Government-wide 

acquisition contract (i.e., a task order or delivery order contract for IT established by one agency for

Government-wide use operated by an executive agent designated by OMB pursuant to 40 U.S.C.

11314(a)(2) (Clinger-Cohen Act of 1996).

www.oig.dhs.gov 7 OIG-12-107 
 

 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

However, DHS is not correct in its assertion that GSA is responsible for TIP 

acquisition reporting requirements, for a number of reasons: 

•	 TIP is a DHS IT project funded from appropriations and from ARRA 

of 2009 monies allocated to DHS; 

•	 TIP is not a joint IT investment between GSA and DHS; 

•	 According to the Memorandum of Understanding between DHS 

and GSA for the TIP project, the cost of TIP is solely DHS’ 

responsibility; and 

•	 DHS is responsible for preparing documentation regarding 

planning, budgeting, acquisition, and management of its own

capital assets. 

OMB guidelines consider interagency acquisitions as major acquisitions 

and require that they be formally documented and reported. As part of 

its capital investment planning for TIP, DHS needs to prepare the 

required OMB Exhibit 3002

 and include TIP cost and funding in the 

Department’s Exhibit 53.3 Exhibit 300s must be submitted for all major 

investments and multiagency collaborations in accordance with DHS and 

OMB guidance, and should be prepared by the program manager. The 

Exhibit 300 is needed and designed to coordinate OMB’s collection of 

agency information for its reports to Congress required by the ClingerCohen Act of 1996. The Exhibit 300 also ensures that the business case 

for an investment is made and tied to the mission statements, long-term 

goals and objectives, and annual performance plans developed pursuant 

to the Government Performance and Results Act. Without these 

documents, DHS cannot demonstrate TIP’s potential return on 

investment. Further, it is increasing the risk that it may not meet its 

stated performance goals. 

2

 Exhibit 300 business cases are required by OMB Circular A-11. Exhibit 300 provides budget justification 

and reporting requirements for investments. 

3

Exhibit 53s are also referred to as agency IT investment portfolios. They are required by OMB Circular 

A-11 and provide summary budget information for all agency major and nonmajor IT investments. 

www.oig.dhs.gov 8 	 OIG-12-107 
 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

Acquisition Review Board 

The DHS Acquisition Review Board has not reviewed or approved any of 

the milestones for the TIP. Specifically, during our review, General 

Dynamics developed and presented three project milestones 

deliverables, and program officials expected to receive the fourth in late 

April 2012 (see figure 5). However, OCAO did not present any of the 

deliverables to the DHS Acquisition Review Board for review. Instead, 

OCAO HMD staff and subject matter experts from OCIO reviewed the 

deliverables and provided their assessments to the contractor. 

Figure 5. DHS TIP Milestones Timelines 

DHS TIP Milestone Timeline 

Award (6/5/11)

IBR (10/24/11)

SDR

Delivered 

(12/23/11)

PDR (02/29/12)

CDR (04/17/12)

IRR (6/29/12)

TRR (7/27/12)

PRR (8/31/12)

ORR (3/29/13)

IBR 

SDR 

PDR 

CDR 

IRR 

TRR 

PRR 

ORR 

Preliminary Design Review 

Undelivered 

Integrated Baseline Review 

System Definition Review 

Critical Design Review 

Integrated Readiness Review 

Test Readiness Review 

Production Readiness Review 

Operational Readiness Review 

Before a major acquisition is funded, it should be evaluated by the 

Acquisition Review Board to determine the net benefits and risks of the 

acquisition. The Acquisition Review Board is also responsible for 

providing senior leadership with information on the progress of the 

investment, which includes milestones for measuring the project’s 

progress. Additionally, the board provides an independent process to 

determine the capability of the project to meet specified requirements,

timeliness, and quality. Without following the acquisition review process, 

DHS senior officials cannot exercise the governance needed to ensure 

that TIP will meet its funding and implementation goals. 

DHS Needs To Prepare a Risk Management Plan

DHS does not have a risk management plan for TIP. Per DHS Directive 

# 102-01, Section V.A.2.iii.c., the Systems Engineering Life Cycle Guide 

(Version 2.0, September 2010), and appendix B of Acquisition 

www.oig.dhs.gov 9 OIG-12-107 
 

 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

Instruction/Guidebook # 102-01-001, the risk management plan should 

detail the process used to identify, document, track, mitigate, and report 

project risk. This plan should establish an approach to monitoring, 

evaluating, and managing risk throughout the life of the project. 

Additionally, the risk management process will identify potential risk 

sources; assess individual risks and impacts on performance, cost, and 

schedule; evaluate alternative approaches to mitigate high and moderate 

risks; and develop action plans to handle individual risks. By developing a 

risk management plan, DHS can strengthen TIP program management by 

predicting risk issues and taking steps to mitigate them. 

Conclusion

TIP is a large and costly acquisition that is critical to the establishment of a 

robust IT infrastructure at the St. Elizabeths campus. Despite GSA’s involvement 

in the consolidated headquarters building project at St. Elizabeths and in 

awarding and administering the IT contracts for DHS, TIP is a DHS IT project and 

no GSA money is involved in TIP. Without the proper reporting processes, DHS 

has little guarantee that TIP is properly progressing, or that its strategic goals will 

be reached. Additionally, DHS may not know if it has properly planned, 

budgeted, or managed all appropriations and ARRA funds appropriately for TIP. 

Finally, DHS may not have a full understanding of any potential risks, and may 

not have had an opportunity to evaluate or mitigate them. 

Recommendations 

We recommend that the Chief Administrative Officer, in coordination with the 

Chief Information Officer: 

Recommendation #1: 

Report TIP as a major acquisition and include it on the DHS Major Acquisition 

Oversight List. 

Recommendation #2: 

Prepare the required OMB Exhibit 300 and include TIP cost and funding in the 

Department’s Exhibit 53 for applicable reporting periods. 

www.oig.dhs.gov 10 OIG-12-107 
 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

Recommendation #3: 

Establish a risk management plan for TIP. 

Management Comments and OIG Analysis 

We obtained written comments on a draft of this report from the Deputy Under 

Secretary for Management for DHS. We have included a copy of the comments in 

their entirety in appendix B. 

Recommendation #1: 

The Department concurs with recommendation 1. When the DHS Headquarters 

Consolidation Program was initially established, the Department did not envision 

or identify TIP as a separate program. The Department, however, will begin to 

report TIP as a separate program and include it on the Major Acquisition 

Oversight list. 

We agree that the steps the Department has taken, and plans to take, begin to 

satisfy this recommendation. This recommendation will remain open until the 

Department provides documentation to support that all planned corrective 

actions are completed. 

Recommendation #2: 

The Department concurs with Recommendation 2. In accordance with the new 

direction to report TIP as a separate program, the Department will prepare an 

OMB Exhibit 300 and adjust the Department Exhibit 53 for TIP. 

We agree that the steps the Department has taken, and plans to take, begin to 

satisfy this recommendation. This recommendation will remain open until the 

Department provides documentation to support that all planned correction 

actions are completed. 

Recommendation #3: 

The Department concurs with Recommendation 3. The Department noted that 

an overall programmatic risk management plan has been in place for the overall 

DHS Headquarters Consolidation, which included TIP. However, the Department 

agrees that a separate risk management plan for TIP would be beneficial for 

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 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

managing TIP, since moving forward it will be reported as a separate major 

acquisition program. The TIP Manager will develop this plan and ensure that it 

seamlessly integrates with and complements the current DHS Headquarters risk 

management plan. 

We agree that the steps the Department has taken, and plans to take, begin to 

satisfy this recommendation. This recommendation will remain open until the 

Department provides documentation to support that all planned correction 

actions are completed. 

www.oig.dhs.gov 12 OIG-12-107 
 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

Appendix A 

Objectives, Scope, and Methodology 

The Department of Homeland Security (DHS) Office of Inspector General (OIG) was 

established by the Homeland Security Act of 2002 (Public Law 107-296) by amendment 

to the Inspector General Act of 1978. This is one of a series of audit, inspection, and 

special reports prepared as part of our oversight responsibilities to promote economy, 

efficiency, and effectiveness within the Department. 

The objective of our review was to determine the effectiveness of DHS’s effort to 

develop and implement an IT infrastructure at the St. Elizabeths DHS HQ campus. 

Specifically, we determined (1) whether DHS program management was effective in 

planning and implementing TIP, (2) the current status of TIP, and (3) the budgetary 

impact of expected and unexpected project changes. 

We interviewed selected personnel at DHS HQ and components facilities in the 

Washington, DC, area. In addition, we reviewed and evaluated DHS acquisition policies 

and procedures, the HMD project implementation plan, and other appropriate 

documentation.

We conducted this performance audit between September 2011 and April 2012 

pursuant to the Inspector General Act of 1978, as amended, and according to generally 

accepted government auditing standards, except that we identified an impairment to 

our independence in appearance. Following completion of our audit, it came to our 

attention that a family member of a senior OIG official was employed by an entity 

associated with this audit. In our opinion, the impairment to our independence in 

appearance did not affect the findings and conclusions developed during this audit. 

GAGAS requires that we plan and perform the audit to obtain sufficient, appropriate 

evidence to provide a reasonable basis for our findings and conclusions based upon our 

audit objectives. We believe that the evidence obtained provides a reasonable basis for 

our findings and conclusions based upon our audit objectives, and that the impairment 

to our independence in appearance did not affect this evidence or any findings and 

conclusions.

www.oig.dhs.gov 13 OIG-12-107 
 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

Appendix B 

Management Comments to the Draft Report 

U$. I>t-pa rtlJlfnl ol liOlueland Sec:urill 

L~binltlDn. J)e 20!'llI 

Homeland 

Security 

JUL I 2 20ll 

MEMORANDUM FOR: Charl es K. Edwards 

Acting Inspector gener >. I{ 

FROM: Chris cumm ~ ~ Deputy Under Secrl:lary ror Management 

SUBJECT: "Adherence to Acquisition Managemcnt Policies Will Help 

Reduce Risks 10 the Technology Integration Program" 

(P<oj ccl No. l l- 153-1TA-MGMT) 

Thank you for the opportunity to review and comment on this draft report. We appreciate the 

Office of Inspector General's (OIG's) work in planni ng and conducling ils review a nd issuing 

this report. 

We orc pleased to note the OIG's positive recognition that the Department is making progresf> 

toward implementing an infannati an technology infrastructure. better known as the Technology 

Integration Program (TIP). at the 51. Eli tabeth'scampus. As noted in the report, this effort 

includes partnering with the General Services Administration to use its interagency informatio n 

technology (IT) contracting vehicles when acquiring IT resources and services. which we 

consider a " best practice"' anJ an example for others to follow. 

The draft report contained thrce recommendations with which the Department concurs. 

Specifically, the OIG recomnlellded that the DHS Chief Administrative Officer, in conjunction 

with the DHS Chief Information Officer: 

Recommendatiun Ill. RepOlt TIP as a major acquisition and include it on the DHS Major 

Acquisition Oversight List. 

Response. Concur. When the DHS Headquarters Consolidation Program was established, TIP 

was not envisioned nor identified as a separate program but was considered inteJ:,'Tal to and part 

of the overall larger consolidation program. Success of the DHS Headquarters Consolidation 

Program is stili dependent on the success of TIP. DJ-I S will, however, begin reporting TIP as a 

separate program and include it on the DHS Major Acquisition Oversight List. We request this 

recommendation be considered resolved and closed as of the date of th is memorandum. 

R«ommendation #2. Prepare the rcquircd OMB Exhibit 300 ond inc lude TIP cost and funding 

in the Department's Exhibit 53 fo r applicable reporting periods. 

Response. Concur. In accordance with the new direction to begin reporting TIP as a separate 

program, the TIP Manager will work with Otlice of the Chief Administrative Officer staff as 

www.oig.dhs.gov 14 OIG-12-107 
 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

well as the Office of the Chief Information Officer staff to prepare an OMB Exhibit 300 and 

modify the Department's Exhibit 53, as appropriate. Estimated Completion Date (ECD): 

September 30, 2(112 

Recommendation #3. Establish a risk management p:an for TIP. 

Response. Concur. It is important to note. however. that an overall programmatic risk 

management plan has been in place and functioning for the DHS Headquarters Consolidation 

Program, which has included TIP. This is critical to t~ e success of the overall program. Now, in 

addition to that plan, we will create a specific, detailed TIP Risk Management Plan, which will 

support the over2.ll program. We agree that a separate risk management plan would be beneficial 

for managing TIP given that moving fonvard it will be reported sepamtely as a major acquisition 

program. The TIP Manager will develop this plan, ensuring that it seamlessly integrates with 

and complements the current risk management process ill place for the consolidation program. 

Thc TIP plan will outline IT areas of responsibility, indude stakeholder-identified risks and other 

concerns, and address governance and sustainment of:he risk management process, plan, and 

registcr, as appropriatc . ECD: September 30, 2012 

2 

www.oig.dhs.gov 15 OIG-12-107 
 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

Appendix C 

Major Contributors to This Report 

Sharon Huiswoud, IT Audit Director 

Sharell Matthews, IT Audit Manager

Beverly Dale, Team Leader

Anthony Nicholson, Senior IT Auditor 

Ernest Bender, Senior Program Analyst 

Robert Durst, Senior Program Analyst 

Frederick Shappee, Program Analyst

Amanda Strickler, Referencer 

www.oig.dhs.gov 16 OIG-12-107 
 

 

 OFFICE OF INSPECTOR GENERAL 

 Department of Homeland Security 

Appendix D 

Report Distribution 

Department of Homeland Security

Secretary 

Deputy Secretary 

Chief of Staff 

Deputy Chief of Staff

General Counsel 

Executive Secretary 

Director, GAO/OIG Liaison Office 

Assistant Secretary for Office of Policy 

Assistant Secretary for Office of Public Affairs

Assistant Secretary for Office of Legislative Affairs 

Under Secretary of Management 

Chief Administrative Officer 

Chief Information Officer 

Acting Chief Privacy Officer 

Deputy Chief Information Officer 

CIO Audit Liaison 

CAO Audit Liaison 

Office of Management and Budget

Chief, Homeland Security Branch 

DHS OIG Budget Examiner

Congress

Congressional Oversight and Appropriations Committees, as appropriate 

www.oig.dhs.gov 17 OIG-12-107 
 

ADDITIONAL INFORMATION AND COPIES 

To obtain additional copies of this document, please call us at (202) 254-4100, fax your 

request to (202) 254-4305, or e-mail your request to our Office of Inspector General 

(OIG) Office of Public Affairs at: DHS-OIG.OfficePublicAffairs@oig.dhs.gov. 

For additional information, visit our website at: www.oig.dhs.gov, or follow us on Twitter 

at: @dhsoig. 

OIG HOTLINE 

To expedite the reporting of alleged fraud, waste, abuse or mismanagement, or any 

other kinds of criminal or noncriminal misconduct relative to Department of Homeland 

Security (DHS) programs and operations, please visit our website at www.oig.dhs.gov 

and click on the red tab titled "Hotline" to report. You will be directed to complete and 

submit an automated DHS OIG Investigative Referral Submission Form. Submission 

through our website ensures that your complaint will be promptly received and 

reviewed by DHS OIG. 

Should you be unable to access our website, you may submit your complaint in writing 

to: DHS Office of Inspector General, Attention: Office of Investigations Hotline, 245 

Murray Drive, SW, Building 410/Mail Stop 2600, Washington, DC, 20528; or you may 

call 1 (800) 323-8603; or fax it directly to us at (202) 254-4297. 

The OIG seeks to protect the identity of each writer and caller.