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1998-03-20 20:39:15


Office of Management & Budget Report on Y2K



This is the full version of the OMB's Feb. 15 report on the y2k status of the Federal government.

It says that only one-third of the government's mission-critical systems are now compliant, report agency offcials.

Here is my favorite: "The Department of Defense reported that it would provide information on systems scheduled for implementation after March 1999 in its next report." In short, "We aren't saying. Try to make us!" Guys with missiles do what they want. But if they were anywhere near compliance, they would be happy to supply the proof -- and the press releases. Taiwanese and South Koreans, please take note.

My second favorite:

"Treasury. The Government On-Line Accounting Link System (GOALS) at the Financial Management Service is comprised of 18 application subsystems that collect, edit and telecommunicate data. GOALS-II was initiated in September 1995 to replace GOALS-I. The target date for implementing two of the 18 subsystems (FMS 2108 and FACTS I) in GOALS-II is June 1999, although the Department is continuing its efforts to move that date earlier. Renovation of GOALS-I is the planned Y2K compliance strategy; implementation of the GOALS-II replacement systems is the contingency plan."

In short, "We won't know until June, 1999, for two of our 18 systems. We'll let you know about the other 16 at a later date." Neverthelesss, the OMB concludes: "Overall, appears to be on schedule. Increased management oversight; significant progress on renovation phase. Good progress made in IRS and Customs." Treasury debt holders, please take notice.

* * * * * * *

Overall, the Federal government continues to make progress in addressing the Y2K problem. Virtually all agencies have accelerated their target dates to conform to the new government-wide goals of September 1998 for completion of renovation and March 1999 for implementation. The percentage of mission-critical systems that are compliant has increased from 27 percent in Novemberís report to 35 percent in this report. However, while good progress is being made, it is not rapid enough overall. The establishment of the Year 2000 Council is, in part, intended to accelerate agency efforts to address this problem. . . .

Government-wide Progress

This summary report shows that:

Agencies have identified 7,850 mission-critical systems. † Of those mission-critical systems: 2,716 (35 percent) are now year 2000 compliant; 3,539 (45 percent) are still being repaired; 1,147 (14.6 percent) are still being replaced; and 362 (4.6 percent) will be retired. . . .

All agencies report that they have contingency planning mechanisms in place. Many report that they are already developing contingency plans for selected mission-critical systems. OMB requires agencies to provide a summary of their contingency plans for mission-critical systems in two instances: (1) where a system is reported behind schedule in two consecutive quarterly reports, or (2) where a system cannot be fully implemented by the new government-wide goal of March 1999. † While OMB requires agencies to report only in these two instances, that does not mean that contingency plans should only be developed in those instances. To the contrary, contingency plans should be developed for all core business functions where Y2K work has been or is being done. There will inevitably be some problems in the fixed systems. No matter how well tested they are, most actual Y2K fixes made to systems will not be operational until the date change occurs. Therefore, even for systems implemented early, there is some risk of failure. Where such a failure would have a significant effect on the agency, a contingency plan should be in place. . . .

Transportation. Overall, the Department of Transportation continues to make progress at a slow rate. With 9.7 percent of its mission-critical systems validated, and 5.7 percent implemented, the Department lags well behind the government-wide average, and its assessments had not been completed as of the February reporting date. The Federal Aviation Administration (FAA) continues to be at significant risk of system failure. Although FAA has completed its assessments, it identified 101 additional mission-critical systems since the last reporting period. Considering its slow progress, the FAA needs to give significantly greater attention to contingency planning. It also needs to: determinepriorities for system conversion and replacement based on systemsí mission-criticality; develop plans for validating and testing all converted or replaced systems; and craft realistic contingency plans for all business lines to ensure the continuity of critical operations. Of particular concern is the FAAís Host Computer System, which is the backbone of en route air traffic control centers. The FAA is continuing its assessment of the systemís micro-code with the intention of resolving and testing any identified date issues, while at the same time purchasing and implementing new hardware before January 1, 2000. The costs and relative risks of this dual strategy have yet to be clearly determined.


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