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Summary and Comments

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Category: 

Government

Date: 

1997-12-27 22:21:27

Subject: 

OMB's November Progress Report: Not Nearly Enough

  Link:

http://www.cio.fed.gov/Y2Knov97.htm

Comment: 

The Office of Management and Budget says that the U.S. government is behind schedule, as of November. It has identified more mission-critical systems, now over 8,500 in number. It says, "most of the work still remains to be done."

The Department of Transportation (DoT) is way behind. This includes the FAA. Planes will not be falling from the sky on Jan. 1, 2000. They will be grounded, all over the world. The only question is: for how long? Read this statement, and then make plans to stay home:

"Although the Secretary of Transportation has greatly strengthened senior management attention to this problem, the Department of Transportation continues to be at high risk of system failure in the year 2000, in large part because of poor progress by the Federal Aviation Administration (FAA). The FAA has completed assessments on only 38 percent of its systems. This does not include an additional 245 systems the FAA has just identified as mission critical, but has not assessed. Moreover, it is likely that additional mission critical systems will be identified."

Another paragraph is crucial: "Table 3, "Mission Critical Systems Being Repaired," shows that, as a weighted percentage, the government is 95 percent complete with its assessment and 34 percent complete with renovation of the mission critical systems to be repaired. In August, the figures were 56 percent and 12 percent respectively." The California White Paper says that awareness is 1% of the repair job; inventory is 1%; assessment is 5%. Testing is at least 40%.

But "the government" is too broad. All of the agencies could be 100% compliant, but if the IRS doesn't make it, forget it.

What if Defense doesn't make it? Who cares that the EPA is ahead of the curve?

By the way, the report as much as says "kiss Medicare goodbye." Granny will not be getting free medical care for much longer. Plan your family budget accordingly, especially if you're a physician.

On the allocation of resources necessary to complete a y2k repair project, see the California White Paper.

* * * * * * * * *

While all agencies have shown progress, the extent of that progress is mixed. Three agencies (DOE, HHS, and OPM) were added to the four (USDA, Education, DOT, and USAID) that were categorized as making insufficient progress in OMB's August report; two others (VA and Labor) were added to the group of agencies for which there is progress but also concerns; and, two agencies (EPA and SBA), which had been in that category were reclassified to the category of those demonstrating sufficient progress. . . .

•The number of mission critical systems that agencies have identified (8,589) is essentially unchanged.

•Of those mission critical systems: 2,296 (27 percent) are now year 2000 compliant; 4,700 (55 percent) are still being repaired; 915 (11 percent) are still being replaced; and 381 (4 percent) will be retired. This compares with 19 percent reported compliant in the previous report. . . .

Table 2, "Mission Critical Systems," provides a snapshot of the size of the year 2000 problem and the results of "repair, replace, or retire" work thus far. Agencies have now identified 8,589 mission critical systems, which is slightly more than the 8,562 identified in the August report. This change occurred in part because the Social Security Administration, which previously counted modules, is now counting systems and has identified 308 mission-critical systems. . . .   Table 3, "Mission Critical Systems Being Repaired," shows that, as a weighted percentage, the government is 95 percent complete with its assessment and 34 percent complete with renovation of the mission critical systems to be repaired. In August, the figures were 56 percent and 12 percent respectively. . . .

Based on the reports, many agencies are making good progress in addressing the year 2000 problem. Most are on schedule and have completed their assessment of the problem; all have begun renovating systems, and almost all have completed implementation of some mission-critical systems. However, as the summary tables show, most of the work still remains to be done. As of November 15, 67 percent of the 8,589 agency mission-critical systems identified must still be repaired or replaced. . . .

Although the agency reports demonstrate good progress in some areas, overall it is clear that a vast amount of work remains. The original government-wide goals did not provide much room for slippage. In addition, it is important to assure that agencies have sufficient time to run fully implemented systems in a production environment. Finally, the sense of urgency should be clear to both our private sector suppliers and to those with whom we exchange data. Accordingly, OMB has accelerated the government-wide target for completion of renovation from December 1998 to September 1998, and the target for completion of the implementation phase from November 1999 to March 1999. . . . 

Data exchanges with States and other partners

The Federal government exchanges data with foreign, State, and local governments, and with private entities. Of particular importance is the Federal relationship with the States, because the States operate many important Federal programs. Therefore, year 2000 compliance of data exchanges with the States is of great importance to both the Federal government and the States. To help assure compatibility, the CIO Council has established a working group specifically to focus on the exchanges between the Federal government and State governments. Already, that group has established points of contact for the States in each Federal agency. In addition, a State-Federal summit was held on October 28, 1997, to identify specific issues and develop a strategy for assuring that electronic data exchanges between the States and the Federal government will not fail. . . .

The first tier consists of agencies in which there is insufficient evidence of adequate progress. The agencies in the first tier are: the Departments of Agriculture, Education, Energy, Health and Human Services, and Transportation, as well as the U.S. Agency for International Development and the Office of Personnel Management. . . .

Health and Human Services (Health Care Financing Administration). Although the Department of Health and Human Services (HHS) as a whole is making progress, the Health Care Financing Administration (HCFA) has concerns about the 74 mission-critical systems of its external contractors, such as Medicare fiscal intermediaries and carriers. A little more than half of these contractors have completed their Year 2000 assessments. Furthermore, HHS and HCFA have limited ability under current law to influence these contractors. HHS is developing specific actions, including a legislative proposal, that can be taken to assure that these systems will work smoothly through the year 2000. 

Transportation. Although the Secretary of Transportation has greatly strengthened senior management attention to this problem, the Department of Transportation continues to be at high risk of system failure in the year 2000, in large part because of poor progress by the Federal Aviation Administration (FAA). The FAA has completed assessments on only 38 percent of its systems. This does not include an additional 245 systems the FAA has just identified as mission critical, but has not assessed. Moreover, it is likely that additional mission critical systems will be identified. The rest of the Department is also behind schedule, having completed only 91 percent of its assessment. Progress within the other phases has been minimal since the last report, and DOT is unlikely to meet its milestones. Because the Department has not completed its assessment, it is likely that it has underestimated its costs. . . .

Link: 

http://www.cio.fed.gov/Y2Knov97.htm

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