CBP Releases its June 30, 2004 Quarterly Report to Congress on ACE (Part II - Final)
U.S. Customs and Border Protection (CBP) has recently posted to its Web site its quarterly report on the Automated Commercial Environment (ACE) entitled ACE Report to Congress. This report is dated June 30, 2004 and covers the period from April 1, 2004 through June 30, 2004.
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CBP states that this report provides a "snapshot" of current program status, highlighting recent accomplishments, challenges, and near-term milestones.
This is Part II, the final part of this multi-part series of summaries on CBP's June 30, 2004 report and provides highlights CBP efforts to deal with schedule delays and cost overruns in its development of ACE. (See ITT's Online Archives or 02/22/05 news, 05022215, for Part I.)
Numerous factors prevented CBP from adhering to its previous 5-year schedule for ACE. According to CBP, a number of factors impacted on its ability to complete ACE development under the 5-year schedule baseline, including: expanded mission priorities to simultaneously accomplish the dual CBP mission of border security and trade facilitation, growth in potential ACE users from the establishment of the Department of Homeland Security (DHS) and initially underestimating the size and complexity of ACE. The result is a more comprehensive program than originally planned.
In January 2005, CBP stated that it now estimates completion of ACE development in 2010, with deployment scheduled for completion in 2011. (See ITT's Online Archives or 02/14/05 news, 05021405, for BP summary of CBP's most recent 2005-2010 ACE development/deployment schedule.)
According to the report, ACE is evolving to ensure that the priority homeland security missions of CBP and DHS are being addressed. CBP has enhanced selectivity and targeting functionality to be more effectively focused on border security, and provide a better balance with the functionality supporting trade facilitation. This enhanced functionality will enable CBP to obtain information much earlier in the supply chain, and complement programs such as the Container Security Initiative (CSI).
CBP has managed and resolved its cost overrun issues. According to CBP, its March 2004 report to Congress highlighted that there was a cost variance in Periodic Payment (Release 3) and e-Manifest Trucks (Release 4) as a result of the schedule delays, ultimately determined to be $48.6 million. To address this variance, CBP states that its Modernization Office intensified its oversight, coordinated with the e-Customs Partnership (eCP) to invigorate Earned Value Management analysis, and negotiated with eCP for an Over Target Baseline.
CBP notes that based on the intensified CBP Modernization Office oversight, the cost overrun issue has been managed and resolved within the approved program funding.
CBP concludes that although the ACE program experienced schedule, cost, and technical challenges, the benefits of the program management and technical enhancements are now being seen.
CBP's June 30, 2004 quarterly report (CBPMO-RPRT-012) available at