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Ambitious U.S. electronic records project faces rising costs, delays

Michael Cooney | Feb. 9, 2011
The government's all-encompassing digital federal records keeping system is costing a lot more - perhaps as high as 41% more -- than originally planned and could top $1.4 billion if estimates from the Government Accountability Office are correct.

FRAMINGHAM 9 FEBRUARY 2011 - The government's all-encompassing digital federal records keeping system is costing a lot more - perhaps as high as 41% more -- than originally planned and could top $1.4 billion if estimates from the Government Accountability Office are correct.

The GAO said that since 2001, the National Archives and Records Administration (NARA) has been developing an Electronic Records Archive (ERA) to preserve and provide access to massive volumes and all types of electronic records. The Archives are responsible for billions of e-mails and other electronic files. The agency is also tasked with preserving key U.S. documents such as the Constitution and Bill of Rights.

In acquiring the archiving system, the Archives has repeatedly revised the program schedule and increased the estimated costs for completion from $317 million to $567 million. NARA estimates it will cost $995 million to finish the project but the GAO says the total could be more like $1.2 to $1.4 billion. There have been 31 months worth of delays so far and the GAO estimates another 12 month delay for the final increment which would put the project's completion date into September 2012.

The problems are mostly an oversight issue according to the GAO but the NARA and contractor - Lockheed Martin -- have in the past noted delays because of what they called the unanticipated complexity of the system being developed. The government awarded Lockheed a $317 million contract for the project in 2005.

From the GAO: NARA has, to varying degrees, established selected best practices needed to manage the ERA acquisition, but weaknesses exist in most areas. For example, the scope of effort in ERA's work breakdown structure is not adequately defined, thus impeding the ability to measure progress made on contractor deliverables. These weaknesses exist in part because NARA lacks a comprehensive [project management plan known as earned value management] as well as policy, training, and specialized resources and it also frequently replans the program. As a result, NARA has not been positioned to identify potential cost and schedule problems early and thus has not been able to take timely actions to correct problems and avoid program schedule delays and cost increases.

"Our projection assumes that past trends are indicative of future performance and does not take into account the degree of difficulty of the work being performed. This is critical because the work that remains includes system integration and testing activities that are complex and often the most challenging to complete based on our review of programs, " the GAO stated." ...contractor-provided data from January 2009 to June 2010, show that the contractor has exceeded its cost target by $1.6 million not completed about $2 million worth of planned work. The contractor reported that the negative cost and schedule variances are largely due to unanticipated development work required to integrate specific commercial-off-the-shelf products into the base system and unplanned software code growth in key areas.... "

 

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