1st Update on GAO's Report on ACE Cost Overruns and Schedule Delays
On May 14, 2004, the General Accounting Office (GAO) submitted to the Homeland Security Subcommittees of the House and Senate Appropriations Committees a report entitled "Information Technology - Early Releases of Customs Trade System Operating, but Pattern of Cost and Schedule Problems Needs to be Addressed."
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This congressionally-mandated report addresses the Department of Homeland Security's (DHS') fiscal year (FY) 2004 Automated Commercial Environment (ACE) expenditure plan that was submitted to Congress in January 2004.
This is Part II of a multi-part series of summaries on the GAO's report and focuses on U.S. Customs and Border Protection's (CBP's) schedule for the implementation of ACE. See future issues of ITT for additional summaries.
CBP Plans to Implement ACE in 10 Releases Over Six Years
According to the GAO report, ACE acquisition and deployment is planned to be implemented in 10 releases over six years. Of the 10 releases, seven are called "releases" and three are called "selectivities." The functionality associated with these releases and selectivities, and their actual or expected deployment dates, are highlighted by GAO as follows:
Release 1 (October 2003). Release 1 provides information technology (IT) infrastructure - computer hardware and system software - to simultaneously support operating the subsequent system releases. Release 1 was deployed in October 2003 and is currently operating.
Release 2 (October 2003). Release 2 provides an initial group of CBP national account managers and 41 importers access to account information, such as trade activity. Release 2 was deployed in October 2003 and is currently operating.
Release 3 (August 2004). Release 3 will provide additional account managers and importers, as well as brokers and carriers, access to account information. It will also provide initial financial transaction processing and CBP revenue collection capability, allowing importers and their brokers to make monthly payments of duties and fees. Release 3 is under development and is scheduled for deployment in August 2004.
According to the GAO, Release 3 was originally scheduled for deployment in March 2004, but its deployment was subsequently delayed.
(In February 2004, CBP issued a General Notice announcing plans for a test of the Periodic Monthly Statement for the deposit of estimated duties and fees. U.S. government sources state that training and testing of the Periodic Monthly Statement for the initial 41 ACE importer accounts and their designated brokers is expected to begin on June 21, 2004, and that once an evaluation of the testing is completed (expected by August 2004), Release 3 will be considered "deployed." See ITT's Online Archives or 02/05/04 and 02/06/04 news, 04020505 and 04020605, for BP summaries of this General Notice. See ITT's Online Archives or 05/12/04 news, 04051205, for BP summary on the expected June 21 start date.)
Release 4 (February 2005). Release 4 will provide truck manifest processing and interfacing to legacy enforcement systems and transaction history data. Release 4 is under development and is scheduled for deployment in February 2005.
According to GAO, Release 4 was originally scheduled to be deployed in July 2004, but its deployment was subsequently delayed.
Release 5 (August 2005). Release 5 will provide legacy systems interface for airport, seaport, and rail crossing inspectors for accessing supply chain, enforcement, and compliance data, as well as additional manifest functionality for selected federal government agencies (including the Food and Drug Administration) and the trade community. Release 5 is scheduled for deployment in August 2005.
Selectivity 1 (September 2005). Selectivity 1 will identify shipments that pose a security risk using new and different combinations of data than current legacy systems permit, as well as end-user defined threat identification criteria. Selectivity 1 is scheduled for deployment in September 2005.
Selectivity 2 (May 2006). Selectivity 2 will identify shipments that pose a security risk during authorized movements and is scheduled for deployment in May 2006.
Selectivity 3 (November 2006). Selectivity 3 will identify imports and exports (e.g., mail, courier, hand-carried items, and shipments transitioning between modes of transportation) that pose a security risk. Selectivity 3 is scheduled for deployment in November 2006.
Release 6 (December 2006). Release 6 will provide additional account management functionality for daily statement creation, refund identification and generation, and expanded payment acceptance; license, permit, and certificate granting, tracking, and revoking; and cargo, conveyance, and equipment tracking. Release 6 is scheduled for deployment in December 2006.
Release 7 (June 2007). Release 7 will provide manifest processing for cargo moving between modes of transportation; additional cargo and conveyance tracking and initial export processing functions; importer activity summary; and regulatory audit, protest, and drawback processing. Release 7 is scheduled for deployment in June 2007.
ACE Users and Ports Expected to Increase Dramatically by Release 7
According to the GAO, the number of ACE users is expected to grow from 3,300 in Releases 1 and 2 to 45,000 in Release 4 and 266,250 in Release 6, and 677,150 in Release 7.
GAO further notes that the number of ports involved in ACE is expected to grow from zero in Releases 1 through 3 to 85 in Releases 4 and 5 and then to 304 in Release 7.
(See ITT's Online Archives or 05/19/04 news, 04051910, for Part I of this multi-part series of summaries.)
GAO report (GAO-04-719, dated May 2004) available at http://www.gao.gov/new.items/d04719.pdf.