```
                                                                 
Electronic Government: Selection and Implementation of the Office
of Management and Budget's 24 Initiatives (22-NOV-02,		 
GAO-03-229).							 
                                                                 
In the President's Management Agenda, a key element for reforming
the federal government is the expansion of electronic government 
(e-government)--that is, the use of technology, particularly the 
Internet, to enhance access to government information and	 
services. Accordingly, the Office of Management and Budget (OMB) 
established a  task force to select  and manage strategic	 
e-government initiatives. GAO was asked to review the		 
completeness of information used for choosing and overseeing	 
these initiatives.						 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-03-229 					        
    ACCNO:   A05604						        
  TITLE:     Electronic Government: Selection and Implementation of   
the Office of Management and Budget's 24 Initiatives		 
     DATE:   11/22/2002 
  SUBJECT:   Electronic government				 
	     Best practices					 

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GAO-03-229

                                       A

Report to the Committee on Governmental Affairs, U. S. Senate

November 2002 ELECTRONIC GOVERNMENT Selection and Implementation of the
Office of Management and Budget*s 24 Initiatives

GAO- 03- 229

Lett er

November 22, 2002 The Honorable Joseph I. Lieberman Chairman The Honorable
Fred Thompson Ranking Minority Member Committee on Governmental Affairs
United States Senate

The President has identified the expansion of electronic government (e-
government) 1 as one of the five priorities of his management agenda. To
support this priority, the Office of Management and Budget (OMB)

developed an implementation strategy that identified 24 e- government
initiatives. These initiatives are expected to support the goal of the
President*s management agenda and ultimately provide improved government
services to citizens, businesses, and other levels of government.

This report responds to your request that we review the information and
documentation related to the selection and implementation of each of the
e- government initiatives identified within OMB*s e- government strategy.

Our objectives were to (1) describe the completeness of the business case
information used by OMB to make the initial selection of e- government
initiatives and (2) describe the completeness of the work plans and
funding plans submitted to OMB in May 2002 for use in overseeing
implementation of the initiatives. To fulfill our first objective, we
reviewed best practices for preparing information technology (IT) business
cases developed by

leading government, academic, and private sector organizations. We then
compared the initial business cases used in the selection of the 24
initiatives with these best practices. To fulfill our second objective, we
compared the information in the May 2002 work plans and funding plans with
identified best practices from GAO and OMB guidance on IT project
management and oversight. We conducted our review from June through
September 2002 in accordance with generally accepted government auditing
standards.

1 E- government refers to the use of technology, particularly Web- based
Internet applications, to enhance the access to and delivery of government
information and services to citizens, business partners, employees, other
agencies, and other entities.

While we were able to obtain sufficient information to address the
objectives in this report, OMB declined to provide certain information we
requested. Specifically, OMB officials declined to provide business cases
submitted by agencies in December 2001 and other relevant information
submitted as part of the budget development process, stating that these
documents were never updated by the agencies to reflect the final
information presented in the President*s fiscal year 2003 budget. The OMB

officials agreed to provide us this information as soon as it is updated
after the 2004 budget is released.

On October 8, 2002, we provided a detailed briefing to your office on the
results of our review. The briefing slides 2 are included as appendix I.
The purpose of this report is to provide the published briefing slides to
you and to officially transmit our recommendations to the Director of OMB.

Results in Brief The business cases, work plans, and funding plans
obtained by OMB all contained at least some of the key information that we
identified as necessary to select and oversee the initiatives. However, we
also reported that OMB did not collect complete business case information
before making its selection of 24 e- government initiatives. Specifically,
despite the importance that OMB attached to collaboration and customer
focus in its e- government strategy, fewer than half of the initiatives*
initial business cases addressed these topics. In addition, the May 2002
work and funding plans provided OMB with insufficient information to
monitor the status of its 24 e- government initiatives. Without addressing
these issues, OMB increases the risk that the initiatives will not meet
the President*s goal of a citizen- centric electronic government that
seeks to enhance the federal government*s value to its citizens.

Recommendations for In order to help ensure the success of the President*s
objective of Executive Action

expanding electronic government to improve the potential value of
government to citizens, we recommend that the Director of OMB ensure that
the managing partners for all 24 e- government initiatives (1) focus on
customers by soliciting input from the public and conducting user needs
assessments, (2) work with partner agencies to develop and document 2 We
have amended the briefing as of October 31, 2002, to include technical
corrections and clarifications.

effective collaboration strategies, and (3) provide OMB with adequate
information to monitor the cost, schedule, and performance of the 24 e-
government initiatives.

Agency Comments and In providing oral comments on a draft of this report,
officials of OMB*s

Our Evaluation Office of Information and Regulatory Affairs and its Office
of General Counsel generally agreed with the facts, conclusions, and

recommendations. These officials emphasized that while OMB leads the
administration*s overall electronic government effort, federal agencies
are responsible for leading the 24 individual initiatives. OMB officials
also provided technical comments, and we have made changes where
appropriate.

As agreed with your office, unless you publicly announce the contents of
this report earlier, we plan no further distribution until 30 days from
the report date. At that time, we will send copies of this report to the
Director of OMB and other interested congressional committees. We also
will make copies available to others upon request. In addition, the report
will be available at no charge on the GAO Web site at http:// www. gao.
gov.

Should you have any question on matters contained in this report, please
contact me at (202) 512- 6240, or by E- mail at koontzl@ gao. gov. Other
key contributors to this report included Barbara Collier, Felipe Colon,
Jr., John de Ferrari, Elizabeth Roach, and Megan Savage.

Linda D. Koontz Director, Information Management Issues

Appendi xes Selection and Implementation of the Office of

Appendi x I

Management and Budget*s 24 Initiatives Electronic Government Selection and
Implementation of the Office of Management and Budget s 24 Initiatives

Senate Committee on Governmental Affairs October 8, 2002

Contents

Introduction Objectives, Scope, and Methodology Data Limitations
Background

OMB s Selection Process Categorizing the Initiatives Overseeing
Implementation Selection of Initiatives Oversight of Implementation
Conclusions Recommendations Agency Comments Appendix I: Cost Information
from Work Plans and Funding Plans Appendix II: Initiative- Specific
Information

2

Introduction

Electronic government ( e- government) refers to the use of technology,
particularly Web- based Internet applications, to enhance access to
government information and the delivery of information and services to
citizens, business partners, employees, other agencies, and other
entities.

The President s Management Agenda designated the expansion of e-
government as one of the five key elements for reforming the federal
government.

The stated goal was to champion citizen- centered electronic government
that will result in a major improvement in the federal government s value
to the citizen. 1 ( OMB used the term citizen to refer to individual
citizens as well as businesses, state and local governments, and other
customers. )

1 The President s Management Agenda, Fiscal Year 2002 , page 23. 3

Introduction ( cont d)

In July 2001, the Office of Management and Budget ( OMB) initiated a task
force to plan how to implement the e- government portion of the President
s management agenda.

In August 2001, the E- Government Task Force began its effort, known as
the Quicksilver Process, to gather information about potential strategic
e-

- government initiatives.

The process resulted in 23 e- government initiatives being chosen for
development, based on a review of abbreviated ( mini ) business cases.

A 24 th initiative, e- Payroll, was subsequently added. 4

Objectives, Scope, and Methodology

Our objectives were to describe the completeness of the information in the
mini

business cases used by OMB to make the initial selection of e- government
initiatives and

describe the completeness of the work plans and funding plans submitted to
OMB in May 2002 for use in overseeing implementation of the initiatives.

Our results are based on an analysis of ( 1) business case, work plan, and
funding plan information provided by OMB and ( 2) status information for
each of the 24 initiatives obtained from project managers.

5

Objectives, Scope, and Methodology ( cont d)

To describe the completeness of the information in the mini business cases
OMB used, we

reviewed best practices for preparing information technology ( IT)
business cases to determine which elements a e critical and

determined whethe the mini business cases used for selection of the 24
initiatives addressed those critical elements.

We did not make a qualitative assessment of the information provided in
each element of the mini business cases.

6

Objectives, Scope, and Methodology ( cont d)

To describe the completeness of the work plans and funding plans, we
reviewed best practices contained in GAO and OMB guidance on IT

project management and oversight to determine which elements are critical,
determined whether the work plans and funding plans used to

manage the 24 initiatives addressed those critical elements, and obtained
and analyzed information from project managers on the

status of work plan/ funding plan milestones. We did not make a
qualitative assessment of the information provided in each element of the
work plans and funding plans. We conducted our work from June through
September 2002 in accordance with generally accepted government auditing
standards.

7

Data Limitations

Concerning the selection process, we obtained initial mini business cases
prepared for 23 of the 24 initiatives that were selected.

Although we requested complete documentation concerning the selection of
the initiatives, OMB removed the initial order of magnitude cost estimates
from the mini business cases because they considered them to be pre-
decisional.

However, OMB provided us with more recent cost information in the May 2002
work and funding plans.

Our assessment of cost information focused on the May 2002 plans and is
included in our analysis of OMB s oversight of the implementation of the
initiatives.

8

Data Limitations ( cont d)

Concerning implementation of the initiatives, we obtained work plans and
funding plans for all 24 initiatives.

OMB declined to provide the more extensive business cases drafted and
submitted by

agencies in December 2001, and elevant Exhibits 300, which were to include
structured business

case information as required by OMB Circular A- 11 and were submitted by
agencies in conjunction with the fiscal year 2003 budget process.

We based our review on the limited information we obtained from OMB. 9

Background: OMB s Selection Process

The OMB E- Government Task Force identified over 350 potential projects
through

structured interviews with agency officials and suggestions received by E-
mail in response to a solicitation fo

ideas. The task force then sorted the more than 350 potential projects
into approximately 40 portfolios of related ideas, , eliminating duplicate
proposals and combining descriptions.

On August 22, 2001, a steering committee ( composed of various members of
the task force) selected 34 initiatives from these portfolios, and charged
task force members with completing abbreviated ( mini ) business cases for
each of them.

According to OMB officials, the mini business cases were to include all
the information necessary to make sound selection decisions based on OMB s
stated criteria.

10

Background: OMB s Selection Process ( cont d)

On September 25, 2001, the task force selected the final initiatives for
approval, based on the mini business cases and consideration of a study
conducted by OMB that identified governmentwide lines of business.

The final selections included 21 initiatives approved for implementation
and 2 additional initiatives ( entitled Consolidated Health Informatics
and

e- Vital) for which a final decision was deferred pending development of
more extensive business cases.

On October 3, 2001, the President s Management Council ( PMC) approved the
final selections of the task force and assigned managing partner and
partner agencies to implement the

initiatives. At a subsequent date, the PMC added e- Payroll as a 24th
initiative.

11

Background: OMB s Selection Process ( cont d)

OMB s stated criteria for choosing the initiatives included potential
value to customers, potential improvement in agency efficiency, and
likelihood of deployment in 18 to 24 months. On February 27, 2002, OMB
released its E- government Strategy , linking the initiatives to its study
of governmentwide business lines, setting objectives, and documenting its
action plan to carry out the strategy.

A $ 5 million e- government fund was established in fiscal year 2002 to
support implementation of the initiatives.

The following slide depicts the overall selection process. 12

Background: OMB s Selection Process ( cont d)

Over 350 project 40 portfolios

ideas identified developed for the 34 initiatives

350 initiatives selected for further

23 initiatives 24 initiatives

review selected approved

and managing partners assigned

Mini business 21

23 Initiatives

Initial selected

approved sorted

screening cases

developed for selection of

2 final initiatives

to expand 1 added by

business executive

cases decision

President s OMB E- Government Task Force

Management Council

Source: GAO analysis of information provided by OMB. 13

Background: Categorizing the Initiatives

OMB organized the 24 initiatives into five categories: Government to
individual citizens ( G2C) . Initiatives to deploy easy to

find one- stop shops for citizens. Government to business ( G2B) .
Initiatives to reduce burden on

businesses by using Internet protocols and consolidating redundant
reporting requirements.

Government to government ( G2G) . Initiatives to make it easier for states
and localities to meet reporting requirements while enabling better
performance measurement and results.

Internal efficiency and effectiveness ( IEE) . Initiatives to improve the
performance and reduce costs of federal government administration by using
e- business best practices.

Cross- cutting . An initiative ( e- Authentication) to provide critical
security services to support all the other initiatives.

14

Background: Categorizing the Initiatives ( cont d)

E- Government Initiatives by Category 1 Government to individual citizens

Government to business

Recreation One- Stop Online Rulemaking Management

GovBenefits/ Eligibility Assistance Online Expanding Electronic Tax
Products for Businesses

Online Access for Loans Federal Asset Sales

USA Services International Trade Process Streamlining

EZ Tax Filing One- Stop Business Compliance Information

Consolidated Health Informatics

Cross- cutting initiative: e- Authentication

Government to government Internal efficiency & effectiveness

Geospatial Information One- Stop e- Training e- Grants

Recruitment One- Stop Disaster Management

Enterprise HR Integration: Integrated HR & e- Clearance Project SAFECOM

e- Payroll e- Vital

e- Travel Integrated Acquisition Environment Electronic Records Management
1 A summary of each initiative appears in Appendix II.

15

Background: Overseeing Implementation

To oversee implementation of the initiatives, OMB equired managing
partners to submit expanded business cases by

December 10, 2001; found that, in some cases, these business cases raised
concerns as

to the direction of the initiatives; convened executive meetings, from
January to April 2002, with

managing partners and partner agencies to reach final agreement on the
scope and direction of each initiative; equired managing partners to
submit work and funding plans for

fiscal years 2002 and 2003 in May 2002 for each initiative, based on the
results of the executive meetings; 1 and

plans to obtain its next update on cost, schedule, and performance from
managing partner agencies in fall 2002 in conjunction with the fiscal year
2004 budget deliberations, according to OMB officials. 1 A summary of
estimated costs for each initiative appears in Appendix I.

16

Background: Overseeing Implementation ( cont d)

Implementation Timeline

Source: GAO analysis of information provided by OMB. 17

Selection of Initiatives: Best Practices for e- Gov Business Cases

To identify best practices for the content of e- government business
cases, we reviewed guidance from a variety of sources, including the
following:

Private research groups and national associations: Gartner Group, Giga,
SAP, Pacific Edge Software, Solution Matrix, Inc. National Electronic
Commerce Coordinating Council Educational institutions:

Center for Technology in Government at the State University of New York,
Albany

Robert H. Smith School of Business at the University of Maryland State and
local governments:

North Carolina; Seattle, Washington Other national governments:

Canada, New Zealand, United Kingdom Federal guidance:

OMB regulations, agency business case development guidance 18

Selection of Initiatives: Best Practices for e- Gov Business Cases ( cont
d)

Based on the guidance we reviewed, the most frequently cited elements of a
complete business case for an e- government project include discussions of

the existing problematic situation or condition and its shortcomings, the
concept for an improved future situation/ process, assumptions that
predict, simplify, or clarify information about the future

situation/ process, the benefits of implementing the future situation/
process, links to strategic objectives, and isks and how they will be
mitigated. Additional elements that OMB specified for selecting e-
government initiatives include

whether the initiative is driven by identified customer needs or discusses
plans to identify those customer needs and

a strategy for successfully collaborating with other government and
nongovernment entities.

19

Selection of Initiatives: Co pleteness of Initial Mini Business Cases:

:

The following chart shows how many of the mini business cases, which were
the bases for selecting the 23 initiatives, included the best practice
elements identified on the previous slide. 1

Problem statement/ current condition 14

Concept for future process 22

Assumptions 15

Expected benefits 23

Link to strategic o jectives 10

Risk mitigation strategies 8

Customer needs 9

Colla oration strategy 8

0 5 10 15 20

Source: GAO analysis of information provided by OMB. 1 OMB e- government
task force members developed mini business cases for 23 of the 24
initiatives. We did not make a qualitative assessment of the information
provided in each element of the mini business cases.

20

Selection of Initiatives: Completeness of Initial Mini Business Cases ( (
cont d)

As the chart shows: All 23 business cases included a discussion of the
expected benefits

of the proposed initiative. Twenty- two identified objectives and future
conditions.

Only nine ( 39 percent) of the mini business cases discussed how customer
needs were to be identified and addressed, even though OMB emphasized that
it would choose initiatives for their potential value to customers.

Collaboration among agencies and other government entities was addressed
by only eight ( 35 percent) of the mini business cases, even though one of
OMB s primary objectives was to integrate operations and simplify
processes within lines of business and across agencies.

21

Selection of Initiatives: Completeness of Initial Mini Business Cases ( (
cont d)

Without identifying and addressing customer needs or collaboration
strategies in all of its 24 initiatives, OMB is at increased risk that its
initiatives will not meet the President s goal of a citizen- centered
electronic government that will result in a major improvement in the
federal government s value to its customers.

Without identifying and addressing customer needs, the Internet sites and
e- government services created by the initiatives may not be useful to
those customers that they were intended to serve.

Improvements in the federal government s value to its customers may not be
realized if agencies that perform similar services across government do
not collaborate to ensure that the initiatives provide one- stop or
integrated services through these initiatives.

. 22

Oversight of Implementation: Best Practices for IT Oversight

To identify best practices for the effective oversight and implementation
of IT projects, we reviewed GAO and OMB guidance, including the following:

GAO guidance: Information Technology Investment Management: A Framework

for Assessing and Improving Process Maturity ( exposure draft) ( GAO/
AIMD- 00- 10. 1. 23)

Executive Guide: Leading Practices in Executive Decision- Making ( GAO/
AIMD- 99- 32)

OMB guidance: OMB Circular A- 130, Management of Federal Information

Resources

23

Oversight of Implementation: Best Practices for IT Oversight ( cont d)

According to the guidance we reviewed, project implementation documents (
such as funding plans and work plans) should include the following best
practice components:

estimates of near- term costs, description of the overall resource
strategy, including

how funds will be obtained, f om what sources, and for what period of
time, and

how staffing commitments will be obtained from collaborating ( partner)
agencies,

schedule/ milestones linked to deliverables through the completion of the
project, and

identification of deliverables. 24

Oversight of Implementation: Completeness of Work and Funding Plans

The following chart shows how many of the 24 plans included the best
practice elements identified on the previous slide. 1

Estimated costs 19

Funding strategy 9

Staffing 16

Schedule/ milestones 22

Delivera les 24

0 4 8 12 16 20 24 Source: GAO analysis of information provided by OMB. 1
We did not make a qualitative assessment of the information provided in
each element of the work plans and funding plans.

25

Oversight of Implementation: Completeness of Work and Funding Plans ( cont
d)

As the chart shows: All 24 of the initiatives work and funding plans
identified projects

deliverables, and 22 of the initiatives plans contained a schedule with
milestones.

Only 9 ( 38 percent) of the initiatives identified a strategy for
obtaining needed funds.

In addition: Based on the information in the May 2002 work plans,

a final completion date was identified for only 14 ( 58 percent) of the
initiatives and

six ( 25 percent) of the initiatives are not planned to be completed
within the 18 to 24 month time frame established by OMB.

Based on status information obtained from 23 of the 24 project managers,
estimated costs from the May 2002 funding plans have changed more than 30
percent for 12 ( 52 percent) of the initiatives.

26

Oversight of Implementation: Completeness of Work and Funding Plans ( cont
d)

Without accurate cost, schedule, and performance information, OMB cannot
ensure that its e- government initiatives will meet its goals of providing
value to customers, improving government efficiency, and deploying in 18
to 24 months.

Based on an analysis of the May 2002 work and funding plans, OMB did not
have all the information needed to fully monitor the progress and
development of the initiatives.

OMB may have obtained additional cost, schedule, and performance
information on the initiatives through other means. However, OMB did not
provide such additional information to GAO.

27

Conclusions

Based on the information we reviewed: The business cases, work plans, and
funding plans obtained by

OMB all contained at least some of the key information we identified as
necessary to select and oversee the initiatives.

OMB did not collect complete business case information before making its
selection of 24 e- government initiatives. Specifically, despite the
importance that OMB attached to collaboration and customer focus in its e-
government strategy, fewer than half of the initiatives initial mini
business cases addressed these topics.

. The May 2002 work and funding plans provided OMB with

insufficient information to monitor the status of its 24 e- government
initiatives.

28

Recommendations

The OMB Director should ensure that the managing partners for all 24 e-
government initiatives

focus on customers by soliciting input from the public and conducting user
needs assessments,

work with partner agencies to develop and document effective collaboration
strategies, and

provide OMB with adequate information to monitor the cost, schedule, and
performance of the 24 e- government initiatives.

29

Agency Comments

In providing oral comments on a draft of this briefing, officials of OMB s
Office of Information and Regulatory Affai s and its Office of Gene al
Counsel generally agreed with the facts, conclusions, and recommendations.

These officials also provided technical comments ( we made changes where
appropriate) ; told us that OMB did not provide the more extensive
business cases we

requested because the business case information that managing partners
were required to submit to OMB was contained in the Exhibits 300;

told us that OMB did not provide the Exhibits 300 we requested because
those documents would not be released unless agencies updated them to
reflect the President s 2003 budget ( they added that it is unlikely that
these Exhibits would be updated because agencies are now working to
develop the Exhibits for the President s 2004 budget) ; and

agreed to provide us with the Exhibits 300 developed for the President s
2004 budget as soon as it is updated after the 2004 budget is released.
OMB expects these updates to be completed in about a month after the
release of the President s budget for most agencies.

30

Appendix I. Cost Information from Work Plans and Funding Plans

Cost Estimates from Work Plans and Funding Plans

.... .... ..... . .

. .... . .... ...

..... . . .....

..... ... ......... . !.

... .. .... .

.. .... . ...

.. .... . .. .... .

......... . . ... ..... ..... ..... ..... ..... ..... .....
................ !...... .. . .. . ..... " .. " .. #.... " .. " .. . .. .
!..... ... $.. . ..... ..... ..... "..% "..% "..% & ! ....... ..... .....
..... ...... ..... ...... .' (.) *... . +.... +.... ..... ..... .....
..... . .. . .,..-... . /. ...-. . ..... ..... ..... "..% "..% "..% .)..
%. . ....... .. (.) 0..%,... ... .,.. ..... .1.+2. .1.+2. ..... .#...1
.#...1 ..... *.%.... !.... .... ..... ..... ..... ..1.. ..... ..1.. 3 ...
.... .. (..%. 0...... ....-.. . . ..... ..... ..... ..... ..... ..... . .
... .,.. ... 4.-.... .. 3 ...-.... " .. " .. " .. " .. " .. " .. 4.
....%...% 5....6 3 ...-..... ..#.1 ..... ..#.1 ..... ..... .....
.......... 3 ...-.... . . ... ..1#. ..1#. ..... 2..1. 2..1. ..... . ... ..
...2. ..... ...2. ....1+ ..... ....1+ 7....... /. ...-. . ....#2 .....
....#2 ...1.. ..... ...1.. 0..8... !*.4./ " .. " .. " .. " .. " .. " .. .
9.... ..#+# ..#+# ..... .2.+.. .2.+.. ..... . (... . . ..... ..... ..+..
..1.. ...#2 ..... ....,..-. . . . ... ...+. ...+. ..... ..... ..... .....
. ........ 5. 3 . ....... : 3 .......% 5. ; . 4..... .. ...12 ...12 .....
...... ..#.+ .....1 . 0. .... ..... ..... ..... ...2.. ..... ...2.. .
(..... ....1 ..... ...#. .....# ..#.2 #.+.. 3 . ......% !.. ...-. .
..... ..... ..... " .. " .. " .. . !,.6. ....... ..... ..... ..... .+.+..
..... .+.+..

.". #. ....... ...... ...... ....... ...... .......

Dollars in millions. Source: Work plans and funding plans submitted to OMB
in May 2002.

32

Appendix II. Initiative- Specific Information

Government to citizen Government to business Government to government
Internal efficiency and effectiveness Cross- cutting

Government to Citizen Initiatives

Recreation One- Stop GovBenefits/ Eligibility Assistance Online Online
Access for Loans USA Services EZ Tax Filing

34

Recreation One- Stop ( Interior)

Provide a user- friendly, Web- based resource to citizens with a single
point of access to recreational information nationwide.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 350,000
Fiscal year 2003: $ 430,000 Major milestones:

An enhanced recreation one- stop Web site was planned to be available in
late September or early October 2002.

No final completion date was provided in the May 2002 work plan. No tasks
were scheduled beyond December 2002.

Observation: Costs for fiscal year 2003 had been estimated at about $ 2.1
million in

February 2002 but were reduced when a decision was made to use an agency-
based approach rather than a contractor to build and operate the Web site.

35

GovBenefits/ Eligibility Assistance Online ( Labor)

Provide citizens with an on- line tool for identifying government benefit
programs from which they are eligible to receive assistance.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 3.0 million
Fiscal year 2003: $ 9.4 million Major milestones:

The GovBenefits. gov Web site became operational with 55 programs on April
29, 2002.

Project officials plan to add 10 to 15 new programs on a biweekly basis.
No final completion date was provided in the May 2002 work plan.
Observation:

According to the project manager, Labor is anticipating including
approximately 200 benefit programs by December 31, 2002.

36

Online Access for Loans ( Education)

Provide a single point of entry to allow citizens and businesses to find
and apply for loan programs.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 30,000 Fiscal
year 2003: to be determined Major milestones:

According to the project manager, Education planned to conduct citizen
focus groups in September 2002.

According to the project manager, Education was rescoping this initiative
and planned to obtain approval from OMB for the rescoped initiative by
September 30, 2002.

No other milestones were provided in the May 2002 work plan. Observation:

According to the May 2002 work plan, the business case did not fully
recognize differences between agency loan programs or fully explore
existing relationships with private sector business partners.

37

USA Services ( General Services Administration)

Enhance the way that customers interact electronically with the federal
government.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 2.5 million
Fiscal year 2003: $ 15.6 million Major milestones:

A citizen- based needs and requirements analysis, scheduled to be
completed by August 31, 2002, was stopped due to lack of funding.

Deployment of USA Services is planned to begin in September 2003. The
final completion date for the deployment was not provided in the May 2002
work plan.

Observation: According to the project manager, the initiative s fiscal
year 2002 budget

was reduced from $ 2.5 million to $ 100,000, while estimated fiscal year
2003 costs increased to $ 15.5 million because of insufficient funding for
fiscal year 2002.

38

EZ Tax Filing ( Internal Revenue Service)

Allow certain citizens to electronically file tax returns free of charge.
Estimated costs from the May 2002 plans:

Fiscal year 2002: $ 6.2 million Fiscal year 2003: $ 200,000 Major
milestones:

IRS reached preliminary agreements with a consortium of private tax
preparation businesses on July 31, 2002.

IRS plans to launch the site by January 15, 2003. Observations:

The site will serve about 16 percent of taxpayers, according to the
initial mini business case. Taxpayers must be in the 0 to 15 percent tax
bracket and meet other requirements.

IRS has revised FY 2003 total estimated costs to $ 4.4 million. 39

Government to Business Initiatives

Online Rulemaking Management Expanding Electronic Tax Products for
Businesses Federal Asset Sales International Trade Process Streamlining
One- Stop Business Compliance Information Consolidated Health Informatics

40

Online Rulemaking Management ( Transportation)

Provide a single portal for businesses and citizens to access the federal
rulemaking process and comment on proposed rules.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 300,000
Fiscal year 2003: to be determined Major milestones:

A regulations. gov portal linking to all agency docket sites was planned
to be completed by June 17, 2002. According to the project manager, the
Web site was planned to be implemented by September 27, 2002.

The back- end knowledge management system to support e- dockets is planned
to be completed by December 31, 2003.

Observation: Other agencies continue to implement new rulemaking systems.
For

example, EPA launched its own on- line rulemaking system in spring 2002.
41

Expanding Electronic Tax Products for Businesses ( IRS)

Through seven projects, reduce the tax- reporting burden on businesses.
Estimated costs from the May 2002 plans:

Fiscal year 2002: $ 27.7 million Fiscal year 2003: $ 19.0 million Major
milestones:

Two of four on- line forms are planned to be implemented by January 2003.
Decision papers are planned to be finalized by the fall of 2003 for three

projects. Observations:

The scope of the initiative remains undefined. IRS reported it plans to
use decision papers to determine whether three of the seven projects
should continue.

The May 2002 work plan does not include a strategy for collaboration with
other agencies.

42

Federal Asset Sales ( General Services Administration)

Provide a one- stop online access point for federal asset sales. Estimated
costs from the May 2002 plans:

Fiscal year 2002: $ 3.0 million Fiscal year 2003: $ 5.7 million Major
milestones:

A draft model for a seller- centric, end- to- end process to support on-
line asset sales is planned to be submitted by October 15, 2002.

The Federal Asset Sales Web site is planned to be in place by January
2003.

Observation: According to the project manager, the estimated costs have

increased to $ 9.9 million for fiscal year 2003. 43

International Trade Process Streamlining ( Commerce)

Provide a single site where new or existing exporters can be assisted
electronically through the entire export process.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 1.4 million
Fiscal year 2003: $ 1.0 million Major milestones:

Commerce plans to deploy a one- stop, one- form service by November 13, ,
2002.

Commerce plans to integrate its Web site content with BuyUSA. com by
November 4, 2002.

Commerce plans to begin live use of the online collaborative workspace by
February 25, 2003.

Observation: The work plan does not contain descriptions of deliverables
associated with

any of the milestones. 44

One- Stop Business Compliance Information ( Small Business Administration)

Provide a single portal for businesses to easily access information about
laws and regulations.

Estimated costs from the May 2002 plans: Fiscal year 2002: no estimate
provided Fiscal year 2003: no estimate provided Major milestones:

Businesslaw. gov, the portal s predecessor, was unveiled in late 2001.
Phase I of the One- Stop Business Compliance Information portal was

planned to be implemented in late September or early October 2002.
Observations:

Phase I projects include purchasing, testing, and piloting information
management software, launching four on- line business guides, and
implementing a prototype for registering and licensing a business on line.

In August 2002, the project manager reported that the estimated costs are
$ 1.0 million and $ 5 million in fiscal years 2002 and 2003 respectively.

45

Consolidated Health Informatics ( Health & Human Services)

Provide the basis for a unified system for sharing medical records
information among government agencies and health care organizations.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 1.9 million
Fiscal year 2003: $ 5.4 million Major milestones:

Identification of key governmentwide definitions was planned to be
completed by September 2002.

A pilot project demonstration is planned to be completed by December 2004.
No final implementation date was provided in the May 2002 work plan.

Observations: The work plan does not describe the tasks to be completed.
The work plan does not discuss a strategy for achieving partnership with

private- sector health care providers and insurers. 46

Government to Government Initiatives

Geospatial Information One- Stop E- Grants Disaster Management Project
SAFECOM E- Vital

47

Geospatial Information One- Stop ( Interior)

Provide a single portal for access to standardized and coordinated
federal, state, and local geospatial data.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 4.8 million
Fiscal year 2003: $ 8.5 million Major milestones:

The inventory and documentation of existing geospatial data was planned to
be completed in July 2002. According to the project manager, it is not
known whether participating agencies have completed this task.

A requirements analysis was planned to be completed by August 2002.
According to the project manager, delays in contracting have moved the
completion date to October 2002.

Deployment of the portal is planned for September 2004. Observation:

According to the project manager, fiscal year 2002 costs have increased to
$ 7.2 million to support additional contracting requirements.

48

e- Grants ( Health & Human Services)

Provide a single site intended to streamline the federal grants management
process and allow customers of federal grants to find and apply for
grants.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 4.1 million
Fiscal year 2003: $ 13.5 million Major milestones:

On July 1, 2002, HHS started a pilot to find federal grant opportunities
via the Web ( www. fedgrants. gov) .

HHS plans to deploy a simple, unified grants application mechanism by
October 1, 2003.

Observation: No funding sources for the estimated costs were identified.

49

Disaster Management ( Federal Emergency Management Agency)

Provide a single portal for all disaster- related information and a secure
private portal for data sharing and customer support.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 22.6 million
Fiscal year 2003: $ 31.8 million Major milestones:

The phase one version of the disasterhelp. gov portal was scheduled to be
completed on August 15, 2002. As of mid- September 2002, the portal was
not yet available.

FEMA plans to deploy an integrated channel for access to disaster
management organizations, information, services, and tools by October 1,
2003.

Observations: According to FEMA s Chief Operating Officer, the agency has
encountered

difficulty achieving the level of participation it needs from its
partners. No funding sources for the estimated costs were identified.

50

Project SAFECOM ( Treasury)

Accelerate the implementation of interoperable public safety
communications. Estimated costs from the May 2002 plans:

Fiscal year 2002: no estimate provided Fiscal year 2003: no estimate
provided Major milestones:

Submit by the end of fiscal year 2002 a draft Executive Order to
reallocate the federal portion of the radio frequency spectrum for public
safety responders.

No nationwide implementation date was provided in the May 2002 work plan.

Observations: The May 2002 work plan did not contain information regarding
estimated

costs, agency partners, or required staffing. On May 31, 2002, FEMA
assumed management of this initiative from

Treasury. According to the current project manager, the scope and
objectives of the project are currently being reassessed.

51

e- Vital ( Social Security Administration)

Through two separate projects, expand ongoing efforts to exchange vital
records data between federal agencies and state governments.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 3.0 million
Fiscal year 2003: $ 38.6 million Major milestones:

Implementation of Electronic Verification of Vital Events ( EVVE) in five
states is planned to be completed by April 30, 2004.

Implementation of Electronic Death Registration ( EDR) in three states is
planned to be completed by April 30, 2004.

No nationwide implementation date was provided in the May 2002 work plan.

Observations: According to the project manager, neither project was
intended to be complete in 18 24 months. state governments often lack
incentives to participate.

52

Internal Efficiency & Effectiveness Initiatives

E- Training Recruitment One- Stop Enterprise HR Integration: Integrated HR
& e- Clearance E- Payroll E- Travel Integrated Acquisition Environment
Electronic Records Management

53

e- Training ( Office of Personnel Management)

Create an electronic training environment that supports the professional
development of the federal workforce.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 2.1 million
Fiscal year 2003: $ 2.7 million Major milestones:

Initial launch of the Web site took place on July 23, 2002. An expanded
site that will include fee- for- service courses is planned to be

completed by October 31, 2002. Observations:

OPM has not identified funding sources for all costs. OPM has received
monetary contributions from two of the four agencies

assigned as initiative partners. 54

Recruitment One- Stop ( Office of Personnel Management)

Create a one- stop on- line recruiting resource for the federal
government. Estimated costs from the May 2002 plans:

Fiscal year 2002: $ 1.2 million Fiscal year 2003: $ 1.2 million Major
milestones:

Appearance and usability changes to the USAJOBS Web site, planned for June
30, 2002, have been completed.

Full implementation of the new Web site, including full application
tracking and integration with agency systems, is planned to be completed
by August 29, 2003.

Observations: According to the project manager, the costs for fiscal year
2003 have increased

to $ 8.3 million based on significant changes to the project plans, such
as accelerated milestones.

As of September 10, 2002, the project manager reported that the
acquisition strategy, including the schedule for the request for proposal,
was in development.

55

Enterprise HR Integration: Integrated HR & e- Clearance ( Office of
Personnel Management)

Through two separate projects, ( 1) provide accurate, up- to- date data on
all federal employees, active and separated, and ( 2) improve processing
of individuals for security clearance decisions.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 5.4 million
Fiscal year 2003: $ 23.2 million Major milestones:

A working prototype of an integrated human resource system is planned to
be completed by September 29, 2003.

OMB removed the completion date from the copy of the May 2002 work plan
provided to us.

Observations: According to the project manager,

costs reported in the May 2002 plans did not reflect OMB s criteria to
deploy in 18 to 24 months. Costs under such a schedule would be $ 18.2
million for fiscal year 2002 and $ 26.9 million for fiscal year 2003, and

the full project implementation is scheduled for the end of fiscal year
2006. 56

e- Payroll ( Office of Personnel Management)

Simplify and integrate payroll systems across the federal government.
Estimated costs from the May 2002 plans:

Fiscal year 2002: $ 2.2 million Fiscal year 2003: $ 50.8 million Major
milestones:

OPM planned to select providers of payroll services by September 30, 2002.

OPM plans to complete policy changes by March 31, 2003. Observation:

According to OPM s May 2002 funding plan, the cost increase in fiscal year
2003 is due to $ 32.2 million in implementation support. This includes
both contractor and internal government costs.

57

e- Travel ( General Services Administration)

Streamline the government s travel administration by creating a
governmentwide Web- based travel management service.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 2.5 million
Fiscal year 2003: $ 13.5 million Major milestones:

An initial assessment of employee requirements was planned to be completed
by May 31, 2002. According to the project manager, the assessment
completion date was revised to August 30, 2002.

A fully integrated Web- based service is planned to be deployed by
December 30, 2003.

Observation: According to the project manager, full funding is expected
from GSA for

fiscal years 2002 and 2003, although a contingency funding plan has been
developed.

58

Integrated Acquisition Environment ( General Services Administration)

Create an Internet portal that provides a simpler, common, integrated
business process for buyers and sellers of government goods and services.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 28.3 million
Fiscal year 2003: $ 54.0 million Major milestones:

According to the project manager, a directory of contracts was completed
on July 15, 2002, and is being tested. Full deployment of the contract
directory is planned for December 2002.

Full operational capability is planned to be completed by January 2005.
Observations:

Funding plan includes a strategy for obtaining contributions from partner
agencies for project development and for charging fees for operation and
maintenance of the portal.

According to the project manager, GSA and OMB are working to reach an
agreement on a long- term funding model to distribute costs among all
participating agencies.

59

Electronic Records Management ( National Archives & Records
Administration)

Establish procedures, requirements, and standards for electronic record
keeping by federal agencies.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 450,000
Fiscal year 2003: no estimate provided Major milestones:

NARA planned to prepare a white paper with an analysis of alternative
options and recommendations by October 4, 2002.

The adoption of DOD 5015. 2 STD Version 2.0 as the mandatory federal
records management application standard is planned to be announced by
December 31, 2002.

No final completion date was provided in the May 2002 work plan.
Observation:

Cost and schedule information are missing for several components of the
initiative in the May 2002 work plan.

60

Cross- Cutting Initiative

e- Authentication 61

e- Authentication ( General Services Administration)

Provide a verification of identity and electronic signatures gateway that
allows citizens and businesses to conduct secure electronic transactions
in conjunction with the other 23 e- government initiatives.

Estimated costs from the May 2002 plans: Fiscal year 2002: $ 3.5 million
Fiscal year 2003: $ 46.6 million Major milestones:

Assessments of security risks for 12 of the initiatives were planned to be
completed by July 2002. According to the project manager, the analyses
were not completed because the tool used for the analyses needed
significant modifications. Assessments for all initiatives are now planned
to be completed by December 2002.

The design, testing, and deployment of a prototype was planned to be
completed by September 30, 2002. The production authentication gateway is
planned to be completed in September 2003.

Observation: According to the project manager, estimated costs for fiscal
year 2003 were reduced

to $ 25.0 million, reflecting a change in the strategy for purchasing
smart cards. 62

(310355)

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a

GAO United States General Accounting Office

OMB*s e- government task force developed abbreviated (* mini*) business
cases on which to base its selection of initiatives. GAO compared the
content of these mini business cases with best practices for the content
of e- government business cases. Based on this comparison, all the
business cases contained at least some of the key information needed, but
many elements were missing (see figure). In particular, fewer than half
addressed collaboration and customer focus, despite the importance of
these topics to OMB*s e- government strategy and the President*s stated
goal: to *champion citizen- centered electronic government that will
result in a major improvement in the federal government*s value to the
citizen.*

Similarly, the work and funding plans associated with the initiatives all
contained at least some key information necessary for OMB oversight.
However, based on GAO*s analysis, OMB did not have all the information
needed to fully monitor the progress and development of the initiatives.
For example, only 9 of the initiatives identified a strategy for obtaining
needed funds. Also, the accuracy of the estimated costs in the funding
plans may be questionable: since May 2002, estimated costs for 12 of the
initiatives have changed significantly* by more than 30 percent. Without
accurate cost, schedule, and performance information, OMB cannot ensure
that its e- government initiatives are on schedule and achieving their
goals of providing value to customers and improving government efficiency.

Best Practice Elements Included in Mini Business Cases

ELECTRONIC GOVERNMENT

Selection and Implementation of the Office of Management and Budget*s 24
Initiatives

www. gao. gov/ cgi- bin/ getrpt? GAO- 03- 229. To view the full report,
including the scope and methodology, click on the link above. For more
information, contact Linda Koontz at (202) 512- 6240 or koontzl@ gao. gov.
Highlights of GAO- 03- 229, a report to the

Committee on Governmental Affairs, U. S. Senate.

November 2002

In the President*s Management Agenda, a key element for reforming the
federal government is the expansion of electronic government (e-
government)* that is, the use of technology, particularly the Internet, to
enhance access to government information and services. Accordingly, the
Office of Management and Budget (OMB) established a task force to select
and manage strategic e- government initiatives. GAO was asked to review
the completeness of information used for choosing and overseeing these
initiatives.

The OMB Director should ensure that the managing partners for all 24 e-
government initiatives focus on customers by soliciting input from the
public and conducting user needs assessments, work with partner agencies
to develop and document effective collaboration strategies, and provide
OMB with adequate information to monitor the cost, schedule, and
performance of the 24 e- government initiatives.

Page i GAO- 03- 229 Electronic Government

Contents Letter 1

Results in Brief 2 Recommendations for Executive Action 2 Agency Comments
and Our Evaluation 3

Appendix

Appendix I: Selection and Implementation of the Office of Management and
Budget*s 24 Initiatives 4

Abbreviations

e- government electronic government G2B government to business G2C
government to individual citizens G2G government to government IEE
internal efficiency and effectiveness IT information technology MP
managing partner OMB Office of Management and Budget PMC President*s
Management Council

Page 1 GAO- 03- 229 Electronic Government United States General Accounting
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A

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