The U.S. Customs Service has requested $206.9 million for its
Automated Commercial Environment (ACE)--a new import processing
system. Customs' second expenditure plan provides for (1) meeting
the Office of Management and Budget's capital planning and
investment control review requirements; (2) complying with Customs'
enterprise architecture; and (3) complying with federal acquisition
rules, requirements, guidelines, and systems acquisition management
practices. ACE will fundamentally change Customs' and many other
organizations' business processes by introducing new system
capabilities. ACE will be available around the clock to support
important commercial and enforcement systems. Customs did not meet
key commitments made in its first ACE expenditure plan because of
underestimating funding requirements. Actual requirements were 90
percent higher than estimated. This history casts uncertainty on
Customs' ability to reliably estimate costs and meet future
commitments. GAO found that Customs lacks management controls in
four areas: enterprise architecture, human capital, software
acquisition management, and cost estimation. Because Customs has
compressed its ACE acquisition plans from five to four years, the
degree of overlap of program increments has increased. This may
increase the risk that ACE capabilities will not be delivered on
time and within budget.
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