The OIG provided a draft of this audit report to the Department for review and comment. The Department’s response of July 24, 2007, included in this report as Appendix VIII, concurs with the five recommendations and proposes corrective action sufficient to resolve all the recommendations. Our analysis of the response to the recommendations is provided below.

1. Resolved. We recommended that the Department’s CIO evaluate why project teams do not prepare certain plans and evaluations, reassess the utility of those documents, and consider revising the standards for producing studies, plans, and evaluations for individual IT projects. The Department’s response indicates the OCIO will review selected projects to determine the rationales for preparing certain studies, plans, and evaluations, and consider revising the current guidelines. This recommendation is resolved based on the planned action, but the Department did not provide a specific timeframe for the process to be completed. The Department should provide a specific timeframe for this process to be completed, and the recommendation can be closed when we receive documentation of the results of this review.

2. Resolved. We recommended that the CIO consider revising the guidelines for tailoring the work pattern for specific types of projects. The Department’s response indicated the OCIO will conduct an evaluation of the various IT project types and will develop standard work patterns and deviations or waivers for each project type. This recommendation is resolved based on the planned actions, but the Department did not provide a timeframe for the process to be completed. The OCIO should provide a specific timeframe for the process to be completed, and the recommendation can be closed when we receive documentation of the results of this effort.

3. Resolved. We recommended that the CIO ensure that post-implementation and post-termination reviews are conducted that focus on lessons learned for project planning and management. This recommendation is resolved based on the CIO’s plans to implement a post implementation review process that will follow guidance in the Office of Management and Budget’s Capital Programming Guide. The Department did not provide a specific timeframe for the process to be implemented. The Department should provide a specific timeframe for this process to be implemented, and the recommendation can be closed when we receive documentation demonstrating that this process has been implemented.

4. Resolved. We recommended that the CIO ensure that staff receive training needed to direct and oversee contractor efforts adequately. This recommendation is resolved based on the CIO’s response that the qualifications of the IT project managers for major IT projects are now reviewed each year during the exhibit 300 review, and that all IT project managers are now required to be re-certified as contracting officers’ technical representatives every 5 years. The recommendation can be closed when we receive documentation of: (1) the FY 2004 validation of project manager qualifications, (2) the procedures used for review of project manager qualifications, and (3) the requirement that project managers be certified and re-certified as contracting officers’ technical representatives.

5. Resolved. We recommended that the CIO implement targeted reviews to improve the use of business process re-engineering and requirements analysis early in concept development. This recommendation is resolved based on the Department’s plan to implement review criteria to ensure that business process re-engineering and requirements analysis are effectively incorporated early into the concept development phase of project planning, and that targeted reviews will be conducted at the discretion of the Department Investment Review Board. The Department did not provide a specific timeframe for these actions to be implemented. The Department should provide a specific timeframe for these actions to be implemented, and the recommendation can be closed when we receive documentation that the actions have been implemented.