2010 Census: Census Bureau Generally Follows Selected Leading Acquisition Planning Practices, but Continued Management Attention Is Needed to Help Ensure Success
Released: 2006-05-18T00:00:00

Letter

Background

The Constitution vests Congress with the authority to conduct the decennial census in such manner as it determines, and Congress in turn has granted the Secretary of Commerce (and by delegation, the Director of the Census Bureau) considerable latitude in carrying out the census. In counting the nation’s population, it is important for the Bureau to stay on schedule, as the Secretary of Commerce is statutorily required to (1) conduct the census on April 1 of the decennial year, (2) report the state population counts to the President for purposes of congressional apportionment by December 31 of the decennial year, and (3) send population tabulations to the states for purposes of redistricting no later than 1 year after the April 1 census date. To meet these mandated reporting requirements, census activities need to take place at specific times and in the proper sequence. As Census Day approaches, the tolerance for any operational delays or changes becomes increasingly small.

Throughout its history, the Bureau has mostly relied on its in-house capabilities to conduct the decennial census. However, the 2000 Census marked the first time the Bureau relied on contractors to perform a large number of major decennial activities. For example, the Bureau awarded a data capture contract—to scan more than 100 million questionnaires, capture and read that data, and send the information to headquarters for additional processing—to TRW, and awarded the advertising firm of Young & Rubicam a contract to develop an outreach and promotion campaign.

Although the contractors generally performed well, Commerce’s Office of Inspector General identified several shortcomings. For example, incomplete quality assurance procedures for the Bureau’s printing contracts led to one contractor printing and mailing out approximately 20 million misaddressed letters informing households that the decennial questionnaires would soon follow, resulting in unnecessary negative publicity just weeks before the Bureau was to send out census forms.

Further, the Inspector General found that the Bureau did not have sufficient program management staff with the training and experience to efficiently acquire systems and manage complex, high-dollar contracts. As a result, the Bureau incurred higher costs than necessary. For example, costs for the data capture system increased from a projected $49 million at the time of contract award in 1997 to $238 million by the end of the decennial because of continually changing and expanding requirements late in the decade. The Commerce Office of Inspector General recommended that for the 2010 Census, the Bureau would need a sufficient number of highly skilled and properly trained personnel dedicated to the planning and management of decennial contracts.

The Bureau Has Made Progress on Major Decennial Contracts, but Adherence to Contract Milestones Will Be Essential

The Bureau has awarded three of its seven major decennial contracts on time, and is working to accomplish contract milestones for these three and preparing for the award of the remaining four contracts. However, the tight systems development and testing schedule coupled with the interdependence of decennial systems may affect the Bureau’s ability to meet its ambitious schedule for completing the testing necessary for a successful census.

The Bureau Has Awarded Three Contracts and Is Working to Achieve Contract Milestones

As shown in table 1, the Bureau has awarded three of its seven major decennial contracts on time, and is working to accomplish contract milestones for these three and preparing for the award of the remaining four contracts. However, the Bureau has pushed back the award dates of two of the remaining four contracts because of changes in its acquisition approach for the contracts (additional detail about each of the seven contracts is presented in apps. III through VII). Going forward, it will be important for the Bureau to stay on schedule so that key systems can be demonstrated in concert with one another as part of the 2008 Dress Rehearsal.

The MTAIP contract, for about $209 million, was awarded in June 2002 to the Harris Corporation (Harris). Harris is to correct in the Bureau’s geographic information system, called the Topologically Integrated Geographic Encoding and Referencing (TIGER) database, the location of every street, boundary, and other map feature so that coordinates are aligned with their true geographic locations. Our review of Bureau documents indicates that Harris is meeting expected schedule and cost targets for the MTAIP contract. According to Bureau documents, Harris completed work for 75 counties in fiscal year 2003, as was planned for the first year of production for the contract. Bureau documents also show that in fiscal years 2004 and 2005, Harris was both on schedule and within budget, completing 602 counties in 2004 and 623 counties in 2005. Similarly, for the first 2 months of fiscal year 2006, Harris was also on schedule and within budget. Bureau plans call for Harris to finish its work for all remaining counties by the end of fiscal year 2008.

The DRIS contract was awarded in October 2005 to Lockheed Martin and is expected to cost more than $500 million. Bureau officials told us that work on the DRIS contract is slightly behind schedule. The implementation of the DRIS contract was pushed back by 60 to 90 days, according to Bureau officials, because of a bid protest that was ultimately withdrawn. Bureau officials told us they did not expect this change to substantially affect the contractor’s ability to complete the work as planned. DRIS staff are working to adjust the schedule for the first few months of the contract to accommodate the change.

The Bureau awarded the FDCA contract to Harris for an estimated cost of $600 million. Although the award date was consistent with its schedule, the Bureau had revised the original award date for FDCA from late 2005 to March 2006 to enable multiple offerors to develop and test prototypes of the mobile computing device that will be used by enumerators during their fieldwork. The Bureau held a 3-day field demonstration in January 2006 to evaluate the prototype, and considered the results as part of the process for selecting a contractor. Bureau officials with responsibility for FDCA believe this strategy had multiple advantages. For example, they believe the development of a prototype prior to contract award increases the likelihood of having a working device in time for the first operation of the 2008 Dress Rehearsal.

Of the four remaining contracts, the Bureau has also revised the original award dates for two but expects to award the contracts for printing and field office leasing according to its original schedule. The two contracts for which the Bureau has pushed back the award dates are the DADS II contract to replace the Bureau’s data tabulation and dissemination system and the 2010 Communications contract to advertise and promote the 2010 Census.

The Bureau has twice changed the DADS II award date and contract scope. It originally planned to establish a new Web-based system that would serve as a single point for public access to all census data and integrate many dissemination functions currently spread across multiple Bureau organizations. The Bureau had planned to award that contract in the fourth quarter of fiscal year 2005. However, due to fiscal and resource constraints, the Bureau decided against investing in this integrated approach and opted instead to rely on contractors to enhance the DADS system used for the 2000 Census. The Bureau planned to release a RFP for DADS II on February 27, 2006, and to award the contract in August 2006.

On March 8, 2006, however, the Bureau announced its plan to delay the release of the RFP by 6 months to gain a clearer sense of budget priorities before issuing a delegation of procurement authority. The Bureau also changed its plan to acquire a contractor to maintain and enhance the system used for the 2000 Census. In its draft RFP for the DADS II contract, the Bureau noted that because the system used in 2000 was becoming obsolete, it planned to revert back to its original plan to acquire an integrated system. The Bureau currently estimates it will delay the award of the DADS II contract from August to October of 2006.

The Bureau had also originally planned to award the 2010 Communications contract in October 2006—earlier in the decade than for Census 2000, when the Bureau awarded its advertising contract in October 1997—but has decided to do so at a later date because it is still researching various approaches to the acquisition. Bureau officials told us they plan to award the contract during the 2007 calendar year. They also told us that the contract is currently on track.

Tight Time Frames May Affect the Bureau’s Ability to Properly Test Key Systems

Condct 2004 Census Tet (2 field ite)

Condct 2005 Ntionl Census Tet (content nd repone option)

Condct 2006 Census Tet (2 field ite)

Condct dress rehesand egin to implement 2010 Census opertion(e.g., egin opening field office)

Contine to implement opertion(e.g., condct ddressnvassing)

2010 Census major contract award schedule Moreover, several of the Bureau’s key decennial systems—both those developed by contractors and those developed by the Bureau itself—will need to exchange data (or interface) with each other to carry out decennial operations, as illustrated in figure 2. The decennial system is comprised of many systems that must work in concert and rely on one another. Because of these interdependencies, these various systems need to stay on schedule during the development phase. For example, data collected by the mobile computing devices supplied under the FDCA contract need to be processed by the data capture system provided by the DRIS contractor to be consistent with data from other sources, such as the Internet or telephone.

More broadly, the principal census-taking activities and systems need to be sufficiently mature so they can be demonstrated in concert with one another as part of the 2008 Dress Rehearsal. Based on the Bureau’s past experience, a true dress rehearsal—which requires the Bureau to specify all design features by 2007—is critical for meeting the Bureau’s goals and objectives. We previously reported that during the 1998 Dress Rehearsal for the 2000 Census, a number of new features were not test-ready; as a result, the Bureau said it could not fully evaluate with any degree of assurance how they would affect the census. These late design changes and hastily developed untested systems resulted in additional costs to that census.

For the 2010 Census, changes to the acquisition milestones of both the FDCA and DADS II contracts affected the testing programs for both of those systems. For example, as the Commerce Office of Inspector General concluded in a recent report, delaying FDCA time frames reduced the amount of time after contract award to complete the remainder of the work needed to prepare for, and begin, the dress rehearsal. Moreover, pushing back the award date resulted in a missed opportunity for the FDCA contractor to observe the real-time use of the mobile computing devices for address canvassing in 2005 as part of the 2006 test. According to the Inspector General, observations of the 2006 Test could have provided the contractor with a level of understanding of key census-taking operations that would have been difficult to obtain in any other fashion.

Additionally, the DADS II system will not be developed in time to be fully tested during the 2008 Dress Rehearsal, partly due to the delay in its acquisition milestones. Moreover, because the Bureau moved the release date for the RFP from February to August 2006 and plans to award the contract in October 2006, the time frame the Bureau now has to prepare for awarding the contract has been compressed from 6 to 2 months. In 2 months, the Bureau has to (consistent with planning activities leading up to contract award by governments acquiring systems) prepare for and evaluate responses, conduct supporting negotiations, and recommend a contract award, among other activities involved in selecting a contractor.

The Bureau Is Generally Following Five Leading Acquisition Planning Practices, but Continued Management Focus Will Be Critical

In planning its major acquisitions for the 2010 Census, the Bureau has generally adhered to the five leading practices for acquisition planning we selected (see fig. 3).

However, additional efforts are needed within two of these practices in the Bureau’s activities leading up to contract award. As part of its strategic planning process (practice 1), the Bureau needs to complete its plan for integrating its major decennial systems. Further, in planning for its decennial acquisition workforce (practice 5), the Bureau needs to fully implement key principles of strategic workforce planning. In the years ahead, it will be important for Bureau management to follow these leading practices to successfully plan for and award its remaining contracts for the development of mission-critical systems to support activities for the 2010 Census.

The Bureau Has Developed a Strategic Plan Linked to Program Goals but Needs to Fully Address Systems Integration

Leading results-oriented organizations that rely on acquisitions to accomplish their missions use strategic plans to align the activities of individual contractors with the organizations’ overall objectives. Linking an organization’s acquisition activities to specific program goals is particularly important for the census, where various systems have to work seamlessly and in the right sequence. For example, the National Academy of Sciences reported that during the 2000 Census, weaknesses in the Bureau’s strategic planning for major systems developed by contractors led to a patchwork of information systems that were costly, complex, and high risk.

For the 2010 Census, the Bureau has developed a strategic plan linking some activities to be performed by contractors to the Bureau’s program goals. To enhance its planning process and improve systems efficiency, the Bureau is developing a 2010 Census Architecture, which is a blueprint of its business process, data, applications and interfaces, and the technologies needed to efficiently conduct the census. This architecture will also serve as the basis on which the Bureau and its contractors will build systems necessary to complete the 2010 Census. The National Academy of Sciences has endorsed the Bureau’s development of the 2010 Census Architecture and noted that its full use has the potential to greatly reduce risk in system development and enable the various information subsystems of the census to communicate effectively with each other.

Within this architecture, the Bureau has several documents that detail its plans to produce a census that achieves its program goals for the reengineered 2010 Census. Although these documents do not specifically identify contracts, they do link activities that will be performed by contractors to achieving specific program goals. For example, the 2010 Baseline Design specifies that automation and use of mobile computing devices—to be provided by the FDCA contractor—will significantly reduce the amount of paper used in the field. It will also cut down on the large number of staff and the office space required to handle that paper, thereby also reducing the cost of the census. Likewise, in a budget document submitted to the Office of Management and Budget, the Bureau also links contracted activities to decreased workload and costs.

The Bureau is planning for the integration of DRIS, FDCA, DADS II, and its other information technology systems. Successful systems integration involves almost every aspect of the project and reaches from the very beginning through the maintenance phase of a system’s life cycle. To facilitate this planning, the Bureau will use the 2010 Census Architecture to coordinate technical planning for systems integration. As part of this architecture, the Bureau has developed the Physical Architecture, which specifically identifies which systems need to exchange data or interface with one another. Contractors will be required to follow this document as they develop interoperable systems. Bureau officials stated that they plan to finalize the Physical Architecture by the spring of 2006.

As the Bureau continues its testing and development for the 2010 Census, it will be important for it to fully develop and carry out its plan to integrate its decennial systems. The Bureau has taken the responsibility of managing systems integration itself. Therefore, it needs to provide each contractor with the information needed to enable the systems they develop to work in concert with other decennial systems. Bureau officials indicate that they intend to define these information needs after all major information technology contracts have been awarded and will implement a joint effort with the Bureau’s contractors and in-house developers to integrate its systems development schedules at that time.

However, the Bureau has not yet established a schedule for defining this information that needs to be shared with contractors or other census teams for their development of decennial systems. To successfully provide this information on schedule so as to ensure the successful integration of decennial systems, the Bureau—in its role as the systems integrator— should establish a schedule to define interfaces between all decennial systems so that the interface information can be provided on a timely basis to development teams. Consistent with the leading acquisition planning practice of strategically planning for contracts, the successful integration of decennial systems is a key factor in the Bureau’s ability to meet its internal milestones. This integration will decrease the chance for unanticipated cost increases as well as technical and programmatic risks.

To Date, the Bureau Has Monitored the Acquisition Planning Process for Individual Contracts

Agencies relying on contractors should monitor planning activities leading up to contract award so that appropriate corrective actions can be taken if the process begins to deviate from plan. These planning activities involve (1) planning for and performing the actions necessary to develop and issue a solicitation package, (2) preparing for the evaluation of responses, (3) conducting an evaluation, (4) conducting supporting negotiations, and (5) making recommendations for award of the contract. Without appropriate monitoring of acquisition planning, agencies run the risk of delaying contract award and other contract milestones, which can result in acquisitions becoming more costly than necessary.

The Bureau has monitored activities leading up to contract award for the three major contracts it has awarded and is monitoring its acquisition planning for the remaining four major contracts. For two of its awarded contracts—MTAIP and DRIS—the Bureau has established acquisition project schedules and processes, while also tracking whether its acquisition activities are performed on time through the maintenance, review, and inspection of detailed contract files. The Bureau was relatively close to meeting the dates specified in its contracts’ revised planning schedules for the issuance of the MTAIP and DRIS RFPs and subsequent award of those contracts. The Bureau has also been monitoring the planning process for the award of its remaining major decennial contracts.

Continued monitoring of contractor performance after contract award will also factor heavily into the success of major decennial contracts. For example, in our March 2006 testimony focusing on the DRIS and FDCA contracts, we noted that several plans needed for post-award contract monitoring for the two contracts, such as detailed performance measures for tracking the contractor or the Bureau’s own internal progress, were not yet developed. While the Bureau does not have a policy requiring such plans to be completed prior to contract award, not having them in place could limit the Bureau’s ability to determine when performance deviates from expectations and could increase the risk of delays in identifying problems with the project and taking appropriate corrective actions.

The Bureau Has So Far Involved Relevant Stakeholders in the Acquisition Planning Process

In our previous work, we found that engaging relevant stakeholders and empowering them to coordinate acquisition actions help agencies to better define their needs and to identify, select, and manage providers of goods and services. For the inputs of stakeholders to be useful during the acquisition planning phase, careful selection of relevant stakeholders is necessary. A plan for stakeholder involvement should include a list of relevant stakeholders, the roles and responsibilities of the relevant stakeholders, and a schedule for stakeholder involvement. The Bureau, in its evaluations of the 2000 Census, reported that it could have had greater involvement from internal division stakeholders in its planning process. Likewise, the Commerce Office of Inspector General found that inadequate stakeholder participation—namely, the lack of coordination between the General Services Administration (GSA), the contractors GSA managed, and Bureau staff—resulted in many wasted hours of government employee time and increased contractor cost on the contract involving the opening of over 500 local offices during the 2000 Census.

For some decennial contracts, the Bureau developed plans that include a list of relevant stakeholders, their roles and responsibilities, and schedules of when the involvement of each is needed. For example, the project management plan for the FDCA contract includes a strategy to communicate between internal and external stakeholders and the different management and technical teams that will provide oversight of the FDCA contract. It also details specific roles and responsibilities for individuals within project teams that will support the management and technical activities for the FDCA contract. In another example, the charter for the DRIS acquisition review team details the composition of the team, membership responsibilities, and guidelines in reviewing the acquisition of the system.

After contract award, Bureau attention to stakeholder involvement will remain important. For example, each participant’s role in post-contract- award activities should be clearly defined and shared among stakeholders for each contract. We noted in our testimony evaluating the Bureau’s progress on the DRIS contract that in at least one case, the Bureau has not yet obtained written stakeholder buy-in on a project plan for managing the contract.

The Bureau Has Implemented Actions to Address Changes in Business Processes Resulting from Its Increasing Reliance on Contractors

An agency’s increased reliance on contractors may result in changes to its business processes that can adversely affect staff and the performance of the contractor. For example, a 2003 IBM study found that during the 2000 Census, some Bureau employees felt threatened by the presence of contractors because they believed that their roles and responsibilities had been taken away from them. Additionally, the Bureau did not have established processes to transfer knowledge and information from Bureau personnel to contractors. This lack of effective communication created tensions and engendered a less-than-constructive working relationship between contractors and Bureau staff, according to IBM. Moreover, the study found that because Bureau employees did not know how to properly define contractual requirements and deliverables, there were cost overruns.

For the 2010 Census, the Bureau has planned several needed changes to its business processes. For example, to improve how it defines contractual requirements and deliverables, project teams led by the Bureau’s Decennial Management Division are to oversee the development and management of requirements for particular operations and associated contracts. The teams will also work in conjunction with contractors to facilitate the understanding and execution of system requirements.

To improve communication between Bureau and contractor staff, Bureau officials are relying on the 2010 Census Architecture to provide a formal means of sharing processes and requirements with contractors. Other Bureau officials have observed that the sharing of 2010 Census Architecture work products with contractors that has occurred to date has already resulted in improvements: the Bureau received better proposals from potential contractors, better conveyed its systems needs to contractors during the RFP phase, and had a means to provide answers to contractors’ inquiries about systems specifications.

The Bureau Has Taken Steps to Plan for Its Decennial Acquisition Workforce, but Needs to Fully Incorporate Key Strategic Workforce Planning Principles

Agencies that rely heavily on acquisitions to accomplish their missions stand to benefit greatly by planning strategically for their acquisition workforces. In a previous report, we noted that this planning should include developing a strategic workforce plan that defines the capabilities that will be needed by the acquisition workforce in the future, as well as strategies that can help this workforce meet these capabilities. During the 2000 Census, the Bureau experienced some difficulty managing its contracts because of a lack of skilled acquisition and contract- management personnel.

For example, the Commerce Office of Inspector General reported that, because the Bureau’s Decennial Systems and Contracts Management Office lacked staff with the experience needed to manage large-scale contracts, the Bureau did not prepare a written contract surveillance and management plan when it awarded a contract to a firm to help respondents complete their census questionnaires over the telephone. (Surveillance and management plans describe the responsibilities, roles, and interactions among the program office, contracting officer, and contractor.) Although the Department of Commerce, in commenting on a draft of this report, noted that the Bureau carried out these surveillance and management activities without a written plan, a written plan would have provided greater assurance that the contracts were (1) executed successfully, (2) not changed without authorization, and (3) that the contractor performs as expected. For the 2010 Census, the Bureau continues to face acquisition workforce challenges.

Senior officials told us that the agency lacks and has trouble recruiting qualified acquisition personnel with the necessary experience and skills to award and oversee complex contracts. Additionally, the Bureau has not strengthened the monitoring of its mission-critical workforce more closely and at a higher level, as we noted in a June 2005 report. (According to a Commerce planning document, the Bureau considers its decennial acquisition workforce to be mission-critical.) For example, the Bureau did not identify its decennial acquisition workforce in its overall human capital management plan, nor did it solicit the input of the Acquisition Division in developing that plan. An April 2005 Office of Management and Budget policy letter to federal departments and agencies underscores the importance of this type of planning by requiring high-level acquisition officials to provide substantial input to their agency’s human capital strategic plans regarding the acquisition workforce.

We have previously identified five key principles that strategic workforce planning should address: (1) involving top management, employees, and other stakeholders in developing and implementing the workforce plan; (2) determining critical skills and competencies needed to achieve programmatic results; (3) developing strategies tailored to address gaps in critical skills and competencies; (4) building the capability needed to address administrative, educational, and other requirements important to support workforce strategies; and (5) monitoring and evaluating the agency’s progress toward its human capital goals.

The Bureau has incorporated some key strategic workforce planning principles in planning for its acquisition workforce, but primarily at a division level. Divisions within the Bureau that have responsibility for acquisition-related staff have independently implemented certain strategic workforce planning actions, including working to determine the critical skills and competencies needed to award and manage decennial contracts and developing strategies to have adequate skilled staff in place in time for the decennial. For example, as part of its workforce planning, the Decennial Systems and Contracts Management Office retained a contractor to conduct a study of what grades, competencies, and skills were needed to effectively manage the DRIS contract. Bureau divisions are also turning to formal training to enhance the capabilities of their staff. For instance, the Decennial Management Division is requiring some of its employees to take project management or contracting officer’s technical representative training. Likewise, the Decennial Systems and Contracts Management Office has trained some of its staff in program management as well as in the development of enterprise architecture.

At an agencywide level, the Bureau has taken some initial steps to identify the skills and competencies needed to manage contracts, but more could be done. For example, in the Bureau’s strategic human capital plan, the Bureau acknowledges that project and contract management are among the new skills required for its staff for the reengineering of the 2010 Census. To build the capacity to help staff obtain these and other skills, the Bureau has established a Project Management Master’s Certificate Program and an Information Technology Master’s Certificate Program, and has developed competency guides as well. According to Commerce, these certificate programs, initiated in 1998, are a way to develop the management and leadership skills needed in mid-to-senior level career employees to successfully oversee Bureau operations well beyond the 2010 Census.

However, the Bureau still lacks an agencywide approach to strategically planning for its acquisition workforce. First, as we previously noted, the Bureau does not assess or monitor gaps in numbers by mission-critical occupation at an agencywide level. Instead, it focuses on “building infrastructure” by recruiting and developing competencies. The Bureau delegates decisions to line managers to fill vacancies, and believes there is no need to assess workers by mission-critical categories. In not performing this agencywide assessment, the Bureau cannot monitor its mission-critical occupations related to acquisitions more closely and at a higher level within the agency. As a result, it may not know overall if it has the acquisition-related competencies it needs in place agencywide to be prepared for conducting the 2010 Census as efficiently or effectively as possible.

Second, the Bureau has not identified the needs of its decennial acquisition workforce in its agencywide human capital management, nor has it developed a separate plan specific to the acquisition workforce that identifies these needs. Further, according to Bureau officials in the Acquisition Division, their input was not sought in the development of the Bureau’s existing human capital management plan.

This lack of high-level attention to the decennial acquisition workforce in the Bureau’s strategic human capital planning process is notable, especially in light of the Bureau’s challenges of recruiting qualified acquisition personnel. It will be important for the Bureau to address the needs of its acquisition workforce in its agencywide human capital management plan or a separate plan and to involve the Acquisition Division in this planning effort. Taking these actions would help facilitate a better alignment between the acquisition workforce and the demands brought on by the Bureau’s greater reliance on contractors for the successful conduct of the 2010 Census.

Conclusion

As the 2010 Census approaches, the Bureau faces the challenge of managing its extensive network of contractors to perform mission-critical operations. The Bureau is well aware that early planning, testing, and development will help facilitate a successful decennial census. Acquisition planning plays a key role in that process and provides a road map the Bureau can use to manage its contracts to increase the likelihood of timely deliverables at reasonable cost.

Overall, progress on the seven major decennial contracts is moving forward. Still, as Census Day 2010 draws closer, it will become increasingly difficult for the Bureau to make up any time lost to delays. Already, aspects of the Bureau’s DADS II system will not be assessed in the dress rehearsal because of a change in the contract’s acquisition milestones, while changes to FDCA time frames have reduced the amount of time the Bureau will have to complete the work needed to prepare for, and begin the dress rehearsal.

Further, to help the contractors stay on track, Bureau officials will need to document a schedule for when information needs to be exchanged between contractors and census teams working to develop these interoperable systems for the 2010 Census. The Bureau also needs to pay attention to strategically—and at an agencywide level—managing the human capital planning for its acquisition workforce.

Recommendations for Executive Action

To help the Bureau improve the management of the 2010 Census, we recommend that the Secretary of Commerce direct the Bureau to take the following three actions: Ensure that the key systems to be developed or provided by contractors for the 2010 Census are fully functional and ready to be assessed in concert with other operations as part of the 2008 Dress Rehearsal.

Establish a schedule for the definition of interfaces between all decennial systems so that these data can be provided on a timely basis to development teams.

Devote further attention to planning strategically for its decennial acquisition workforce by (1) assessing, at a higher level within the agency, whether it has the acquisition-related skills needed to conduct the 2010 Census by developing strategies to identify and address gaps, monitoring and evaluating progress toward closing gaps, and adjusting strategies accordingly; and (2) identifying the needs of the acquisition workforce in its human capital management plan or another acquisition-specific workforce plan and involving appropriate stakeholders in this planning effort.

Agency Comments and Our Evaluation

In written comments on a draft of this report, Commerce neither agreed nor disagreed with our recommendations. Commerce commented on aspects of our principal findings and our third recommendation regarding its planning for the decennial acquisition workforce. Its comments included some technical corrections and suggestions where additional context was needed, and we revised the report to reflect these comments as appropriate. Commerce’s comments are reprinted in their entirety in appendix II.

Commerce did comment on our first principal finding concerning the Bureau’s readiness for the 2008 Dress Rehearsal. This finding led to our first recommendation for the Bureau to ensure that its key systems are fully functional and ready to be assessed in concert with other operations during the dress rehearsal. Commerce noted that the Bureau provided competitors for the FDCA contract information about the design, requirements, and specifications for the 2006 Test in its RFP (we have now added this information to our report). Commerce also noted that the Bureau will be sharing preliminary results from the 2006 Test with Harris—the firm that was awarded the contract—as soon as the results are available. However, the Bureau did not specify when this might be. Moreover, as we discussed in the report, the mobile computing devices will need to be ready by April 2007, when the Bureau is to use them for the address canvassing operation for the 2008 Dress Rehearsal. Consequently, the contractor will have around a year, perhaps less, to study the results of the 2006 Test; assess what worked and what improvements, if any, are needed; and develop and test any solutions in time to be included in the devices that will be used in 2007.

For our second principal finding that the Bureau does not have a schedule for defining what and when information needs to be provided to development teams to better integrate the systems they develop, Commerce did not comment on our recommendation for the Bureau to develop such a schedule, but stated that it was not clear how the Bureau could have had such a schedule prior to awarding the contracts. Commerce further noted that the Bureau plans to implement a joint effort with its contractors and in-house developers to integrate its development schedules. Our report acknowledged that the Bureau intended to define these information needs after it awards the major information technology contracts. We believe that establishing a schedule defining the interfaces between all decennial systems as soon as practical is critical because it allows the Bureau to better manage the process and hold various components accountable to a schedule and thus help ensure the successful integration of decennial systems.

In its comments related to our third finding and recommendation for the Bureau to assess the decennial acquisition workforce at a higher level within the agency, Commerce described the actions the Bureau is taking consistent with this recommendation. For example, Commerce reported that high-level Bureau officials will be regularly briefed on the status of each decennial acquisition. Commerce also detailed the steps the Bureau is taking with stakeholders to plan for the needs of the Bureau’s acquisition-related workforce as part of its human capital management plan. Commerce noted that this plan includes input from managers who represent each Bureau directorate.

These are important first steps toward addressing our third recommendation. While the Bureau has begun working closely with stakeholders to plan for the decennial acquisition workforce as part of its human capital management plan, it has not yet begun incorporating that information into the plan. As we stated in our report, documenting its decennial acquisition workforce needs in the Bureau’s strategic human capital plan would help facilitate a better alignment between the acquisition workforce and the demands brought on by the Bureau’s greater reliance on contractors for the successful conduct of the 2010 Census.

In addition, Commerce commented on information in our report that was obtained from our March 2006 testimony and a 2002 Commerce Office of Inspector General study. Specifically, our report notes that in March 2006, we testified that neither the FDCA nor DRIS contract project offices had the full set of capabilities they need to effectively manage those acquisitions. Commerce commented that full project management offices were not needed to carry out the Bureau’s initial acquisitions and will be staffed in time to effectively manage the contracts. As discussed in the testimony and noted in our report, a full set of capabilities—including the institution of requirements management or risk management processes— are significant factors in successful systems acquisitions and development programs. Having these capabilities in place will also improve the likelihood of meeting cost and schedule estimates as well as performance requirements. Regarding the Inspector General’s study, we noted that the Inspector General found that the cost of the data capture system for the 2000 Census increased almost fivefold by the end of that decennial cycle because of continually changing and expanding requirements late in the decade, and the Inspector General recommended that for 2010, the Bureau would need a sufficient number of trained personnel dedicated to the planning and management of decennial contracts. In its comments, Commerce noted that the issue of changing and expanding requirements must be addressed by program management, and that the Bureau, in its preparations for the 2010 Census, is following practices for rigorous requirements management.

We are sending copies of this report to the Secretary of Commerce, Commerce Office of Inspector General, the Director of the U.S. Census Bureau and other interested congressional committees. We will make copies available to others upon request. This report will also be available at no charge on GAO’s Web site at http://www.gao.gov.

If you or your staff have any questions concerning this report, please contact me on (202) 512-6806 or by email at farrellb@gao.gov. Contact points for our Offices of Congressional Relations and Public Affairs may be found on the last page of this report. GAO staff who made major contributions to this report are listed in appendix VIII.

Appendix I: Scope and Methodology

Our objectives for this report were to (1) determine the status of the U.S. Census Bureau’s (Bureau) major contracts related to the 2010 Census, and (2) evaluate the extent to which the Bureau is using selected leading practices to manage its acquisition planning process for the decennial census. To address our first objective, we reviewed documents related to major 2010 Census acquisitions, including acquisition plans, requests for proposals (RFP), finalized contracts, and budget requests to the Office of Management and Budget. We also reviewed the Bureau’s strategic planning documents, such as its 2010 Census Management Plan, 2010 Census Architecture, and 2010 Baseline Design for Reengineering the Decennial Census.

Additionally, we interviewed Bureau officials about the status of and future plans for the major contracts for the 2010 Census (as defined by Bureau officials). Those officials include those from the Decennial Management Division, which is responsible for implementing the decennial census; the Decennial Systems and Contracts Management Office, which manages selected system contracts supporting the decennial census; and the Acquisition Division, which carries out acquisition activities, including setting up and signing contracts, for other Bureau offices. Further, we interviewed an official from the Decennial Information Technology and Geographic Systems division.

For the second objective, we identified selected leading acquisition planning practices used in the federal government from a variety of sources. Sources included our own guidance, reports, and testimonies on the acquisition function as well as external works, such as the Capability Maturity Model® Integration (CMMISM) model. The CMMISM model was developed by Carnegie Mellon University’s Software Engineering Institute, recognized for its expertise in software and system processes. The CMMISM model includes criteria to evaluate, improve, and manage system and software development processes. We adapted these CMMISM criteria to evaluate system and software development issues during acquisition planning for the four information technology contracts (Field Data Collection Automation, Decennial Response Integration System, MAF/TIGER Accuracy Improvement Project, and Data Access and Dissemination System II). From these, we selected five leading practices based on the acquisition-related challenges the Bureau faced during Census 2000. The five leading practices we selected focused on management oversight of the Bureau’s acquisition planning process, not on the Bureau’s acquisition strategy for specific contracts or compliance with the Federal Acquisition Regulation.

To evaluate the extent to which the Bureau followed these leading practices, we reviewed relevant Bureau documents, such as acquisition plans, strategic planning documents, RFPs, finalized contracts, and budget requests to the Office of Management and Budget; observed some acquisition-related events at the Bureau, including Bureau presentations for potential bidders and contract monitoring meetings; and interviewed knowledgeable Bureau officials about acquisition planning. We focused on the Bureau’s activities to date in planning for its major decennial contracts. Because the Bureau is still planning most of these acquisitions, our review presents findings about current status and plans as reported by Bureau officials or as supported by Bureau documents. We conducted our work from July 2005 through March 2006 in accordance with generally accepted government auditing standards.

Appendix II: Comments from the Department of Commerce

Appendix III: MAF/TIGER Accuracy Improvement Project (MTAIP) Contract Details

Appendix III: Improve Details ment Project (MTAIP) Contract The primary goal of the contract awarded to the Harris Corporation (Harris) is to correct information in the Bureau’s repository of the location of every street, boundary, and other map feature (known as the TIGER database) so that coordinates are aligned with their true geographic locations. Harris will also develop a capability to link each of these geographic locations and coordinates on ﬁle with a corresponding record to the Bureau’s address list of where people live and work (also known as MAF).

• Census 2000: The Bureau developed a functionally integrated set of computer ﬁles and applications—MAF/TIGER—that required

large columns of information from many external sources to establish and maintain a current and accurate housing unit address list, boundaries for all governments, address ranges to facilitate geocoding various ﬁles, and other map information.

2010 Census: MAF/TIGER will interface with several entities that are external to the program. Some entities include the Decennial Response Integration System (DRIS)— with which it will coordinate to maintain data as geography records are created, updated, or deleted—and the Field Data Collection Automation (FDCA) system, with which it will work to store spatial coordinates for the mobile computing devices provided by the FDCA contractor.

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• Activities to date: According to Bureau documents, Harris, as planned, completed work for 75 counties in ﬁscal year 2003, the ﬁrst year of production for the contract. Bureau documents also show that in ﬁscal years 2004 and 2005, Harris was both on schedule and within budget, completing work for 602 counties in 2004 and 623 counties in 2005. Similarly, for the ﬁrst 2 months of ﬁscal year 2006, Harris was also on schedule and within budget. Bureau plans call for Harris to ﬁnish improving all remaining counties by the end of ﬁscal year 2008.

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Appendix IV: Decennial Response Integration System (DRIS) Contract Details

ppendix IV: Decennial Response Integration stem (DRIS) Contract Details The DRIS contractor will be responsible for designing, building, and operating the systems, staffing, and infrastructure to process census data provided by respondents via census forms, telephone agents, the Internet, and enumerators; assist the public via telephone and Internet; and monitor the quality and status of the data capture operations.

The DRIS contract does not include providing the systems or staffing used for field enumeration operations.

Census 2000: The Bureau procured key elements of its data capture and processing system from different contractors, and it developed in-house a system for collecting data from the Internet. The Bureau was also responsible for integrating data collected through the different modes of capture (paper, telephone, Internet, and field operations).

2010 Census: The DRIS contract will allow the Bureau to have a single contractor design, develop, and implement a system to integrate data from all of the response modes.

Activities to date: The Bureau began acquisition planning for DRIS in 2003. Between 2003 and contract award, it performed planning and solicitation activities including conducting research on data capture, developing planning documents, drafting and issuing a RFP, and evaluating proposals from vendors. The Bureau awarded the contract on schedule in October 2005.

Appendix V: Field Data Collection Automation (FDCA) Contract Details

tomation (FDCA) Contract Details ppendix V: Field Data Collection FDCA will rovide the automtio for the Breau to capre iformtio collected dring ernal iterview, eliminating the eed for paper maps anddress li for ddressanassng anrespnse follow-up. The FDCA cotrctor will rovide office automtio for 12 reional census ceter, the Perto Rico re office, anapproimtel 00 office; the telecommunictionsfrastrctre for hedquarter, reional, and locl office; mobile computing device for field worker; itetio with other 2010 Cnsus system; and develomet, delomet, techicsupport, deinslltio, and dispsaervice.

Activitie associted with creting mgement pl nd ddressing in detil the firt mjor phase (Exection Period #1) of FDCA implementtion Activitie propoed y the FDCA contrctor to support field opertion to condct the 200 Dress Rehesal (Mr. 2006 – Mr. 2009)

All ctivitie propoed y the FDCA contrctor to support field opertion to condct the 2010 Census (April 2006 – Sept. 2010)

Census 2000: Field d collectioas redominantlandled througpaper ddress li, maps, and qtionnaire.

2010 Census: FDCA i degned to support the Breau’s field d collectio ctivitie ano iterfce with the DecennRspnse Itetio System, the Breau’sapre system.

Activities to date: The Breau moved the rd dte for FDCA from the ed of the 200ler to Mrch 2006 to enable otetil cotrctor to develo, t their owxpnse, “nrodctio rey” rototypsystem for ddressanassng, which will be evuated as part of rce electio.

Appendix VI: Data Access and Dissemination System (DADS II) Contract Details

stem (DADS II) Contract Details Appendix VI: D SyDADS, developed prior to Census 2000, is the Bureau’s system for tabulating and disseminating data from the decennial census and other Bureau surveys to the public. DADS allows users to access prepackaged data products, as well as to build custom reports through its American FactFinder Web site. The Bureau will require the DADS II contractor to replace the legacy DADS system that the Bureau used during Census 2000.

• Census 2000: The Bureau developed the DADS program in order to meet customer demand for faster, more flexible access to census data. The program was developed in multiple phases, first launching as a pilot project developed in-house, and then being managed through a contract with IBM awarded in April 1997.

2010 Census: The contractor will be required to provide a replacement of the legacy system to form an integrated solution. The contractor is also expected to provide comprehensive support to the Census 2000 DADS system.

Activities to date: The Bureau originally planned to establish a new Web portal for the public to access all census data and to integrate many of the dissemination functions. Because of fiscal and resource constraints, it decided not to invest in this new initiative, but instead to pursue a follow-on acquisition to the DADS program. In March 2006, the Bureau announced that it will delay the release of the solicitation and contract award date to gain a clearer sense of budget priorities before issuing a delegation of procurement authority. It also changed the scope of the contract to ask contractors to develop a replacement to its legacy system.

Appendix VII: Summaries of Major Decennial Contracts Planned for Award in 2007 or Later

ppendix VII: Summaries of Major Decennial ontracts Planned for Award in 2007 or Later Census 2000 experience: The Bureau awarded a contract to Young & Rubicam, along with four partner agencies, to create and produce an advertising campaign to inform and motivate the public to complete and return the census form. The campaign was consid- ered an operational success, and was one of the factors that helped boost response rates. 2010 acquisition plans: While the scope of the 2010 Communications contract has not yet been determined, it may include some or all of the components of the 2000 Communi- cations Program (advertising, media relations, and special events, among others). The Bureau plans for it to be part of an integrated communications program where all components work together to motivate participation in the 2010 Census.

Agency managing contracts: Government Printing Office (GPO) Estimated cost: To be determined Award date: Estimated March 2007 (contract for major operations); November 2008 – June 2009 (other printing contracts)

Census 2000 experience: The Bureau used GPO to contract for decennial printing jobs, such as the printing of questionnaire packages, field follow-up forms, and promotional materials. GPO then selected dozens of private sector companies to perform the work. Contracts for printing Census 2000 material totaled over $65 million and included the printing of almost 400 million items. 2010 acquisition plans: The Bureau will again work with GPO to contract for its printing needs. In March 2007, the Bureau plans to award one major contract for one of its most complex printing operations, including the printing of questionnaires and other materials for the mail out/mail back and replacement mailing operations. Contracts for the printing of other products, such as military census forms and reminder postcards, will be awarded separately beginning in late 2008.

Census 2000 experience: The Bureau and GSA formed a partnership that obtained leases, oversaw the build-out construction of offices, arranged for security and for data and voice telecommunications, and provided office equipment and supplies. All local census offices were successfully opened in sufficient time to conduct operations. 2010 acquisition plans: As in Census 2000, the Bureau has established an interagency agreement with GSA to structure lease agreements. The Bureau expects to lease 12 regional census centers, 1 Puerto Rico area office, and approximately 500 local census offices nationwide and in Puerto Rico.

Appendix VIII: GAO Contact and Staff Acknowledgments

Acknowledgments

In addition to the contact named above, Robert Goldenkoff, Assistant Director; Betty Clark; Shirley Hwang; Anne McDonough-Hughes; and Brendan St. Amant made key contributions to the report. Tim DiNapoli, Richard Donaldson, Richard Hung, John Krump, Donna Miller, and Amy Rosewarne provided significant technical support.

Related GAO Products

Selected GAO Reports on the 2010 Decennial Census

2010 Census: Planning and Testing Activities Are Making Progress. GAO-06-465T. Washington, D.C.: March 1, 2006.

Census Bureau: Important Activities for Improving Management of Key 2010 Decennial Acquisitions Remain to be Done. GAO-06-444T. Washington D.C.: March 1, 2006.

Data Quality: Improvements to Count Correction Efforts Could Produce More Accurate Census Data. GAO-05-463. Washington, D.C.: June 20, 2005.

Information Technology Management: Census Bureau Has Implemented Many Key Practices, but Additional Actions Are Needed. GAO-05-661. Washington, D.C.: June 16, 2005. 2010 Census: Basic Design Has Potential, but Remaining Challenges Need Prompt Resolution. GAO-05-9. Washington, D.C.: January 12, 2005.

Data Quality: Census Bureau Needs to Accelerate Efforts to Develop and Implement Data Quality Review Standards. GAO-05-86. Washington, D.C.: November 17, 2004.

American Community Survey: Key Unresolved Issues. GAO-05-82. Washington, D.C.: October 8, 2004. 2010 Census: Cost and Design Issues Need to Be Addressed Soon. GAO- 04-37. Washington, D.C.: January 15, 2004.

Decennial Census: Lessons Learned for Locating and Counting Migrant and Seasonal Farm Workers. GAO-03-605. Washington, D.C.: July 3, 2003.

Decennial Census: Methods for Collecting and Reporting Hispanic Subgroup Data Need Refinement. GAO-03-228. Washington, D.C.: January 17, 2003.

Decennial Census: Methods for Collecting and Reporting Data on the Homeless and Others without Conventional Housing Need Refinement. GAO-03-227. Washington, D.C.: January 17, 2003.

Selected GAO Reports on Acquisition Planning

Framework for Assessing the Acquisition Function at Federal Agencies. GAO-05-218G. Washington, D.C.: September 2005.

Human Capital: Selected Agencies Have Opportunities to Enhance Existing Succession Planning and Management Efforts. GAO-05-585. Washington, D.C.: June 30, 2005.

Homeland Security: Successes and Challenges in DHS’s Efforts to Create an Effective Acquisition Organization. GAO-05-179. Washington, D.C.: March 29, 2005.

Transportation Security Administration: High-Level Attention Needed to Strengthen Acquisition Function. GAO-04-544. Washington, D.C.: May 28, 2004.

Federal Procurement: Spending and Workforce Trends. GAO-03-443. Washington, D.C.: April 30, 2003.

Acquisition Workforce: Status of Agency Efforts to Address Future Needs. GAO-03-55. Washington, D.C.: December 18, 2002.