Tech Modernization Initiative at OPM Raises Concerns Amid Budgeting, Scheduling Issues
The Office of Personnel Management's (OPM) Federal Financial System (FFS) supports over 8 million federal employees and retirees. The system manages over $1 trillion in assets for both the active and the retired federal workforce, which includes retirement, health benefits, and life insurance programs.
The Government Accountability Office (GAO) noted in a recent report that the FFS's modernization initiative is delayed through October 2023, approximately six years following its inception. About a year behind schedule, the initiative could be over budget by more than $13 million.
Among the reasons OPM cites for the delay are poor documentation and insufficient staff expertise. Moreover, the agency stated that increased cost resulted from recognizing several risks after the initial phases of the modernization plan. A number of these risks are associated with gaps in knowledge and documentation of legacy processes, systems, and associated interface requirements; and resources available to the Office of the Chief Information Officer (OCIO).
In two of the three initial phases, OPM conducted recommendations for review, but the modernization moved forward without meeting the exit criteria.
As part of its analysis, GAO measured key modernization procedures to leading cybersecurity practices, and evaluated the program's requirements, cost and schedule estimation. Although OPM has adopted some leading practices, such as ensuring that systems are built to specifications, it has not adopted others in areas such as cost estimation and cybersecurity.
In its recommendations, GAO instructs the agency's Chief Financial Officer (CFO)—who is responsible for the FFS—to address the following:
Conduct a comprehensive risk assessment before moving onto the next phase of modernization;
Ensure that interagency agreements, including service level agreements, define the process for addressing security requirements and the level of cybersecurity services that will be provided;
Develop cost estimates in accordance with best industry practices;
Update the initiative schedule to address criteria that didn't meet expectations; and,
Acquire sufficient system and cybersecurity experts to adequately staff the program.
Of GAO's five recommendations, OPM concurred with two recommendations, partially agreed with two, and disagreed with one. GAO maintains that the recommendations in this report are justified.
Doug Glenn is the current CFO at OPM, previously working for the Office of the Under Secretary of Defense as the Deputy CFO and Assistant Deputy CFO.
Dennis Coleman, Glenn’s predecessor, directed the development and implementation of the initiative before his promotion to the agency's Chief Management Officer (CMO) in May of 2021. OPM honors Coleman for 30 years of service, commending his proactive approach to financial management and his hands-on role in the modernization initiative.
The agency did not respond to a request for comment.
