Management Advisory Report: Progress Has Been Made in Developing Transition to Support Guidance for Modernization Projects

 

August 2002

 

Reference Number:  2002-20-146

 

 

This report has cleared the Treasury Inspector General for Tax Administration disclosure review process and information determined to be restricted from public release has been redacted from this document.

 

August 2, 2002

 

 

MEMORANDUM FOR DEPUTY COMMISSIONER FOR MODERNIZATION &
CHIEF INFORMATION OFFICER

 

FROM:     Pamela J. Gardiner /s/ Pamela J. Gardiner

                 Deputy Inspector General for Audit

 

SUBJECT:     Final Management Advisory Report - Progress Has Been Made in Developing Transition to Support Guidance for Modernization Projects (Audit # 200220014)

 

This report presents the results of our review of the process for transferring support and maintenance of deployed modernization projects, known as transition to support.  The objective of this review was to determine whether planning and preparation is adequate to timely and effectively transfer support and maintenance of Business Systems Modernization (BSM) projects to the Internal Revenue Service (IRS) support organizations.

In summary, we found that the IRS, in conjunction with the Computer Sciences Corporation, developed the Enterprise Life Cycle (ELC) that provides guidance for designing, developing, and supporting BSM projects.  Although the ELC provided guidance on transition to support activities, the guidance was not clearly organized and did not address all activities recommended by the Software Acquisition Capability Maturity Model.  In addition, BSM project teams were not consistently following the transition to support guidance in the ELC.  We found significant variances in planning transition to support activities in four current BSM projects.

To address these shortcomings, the IRS is establishing a Transition Management Office (TMO) to provide transition to support policy and guidance to BSM project teams and IRS organizations designated to support the BSM projects.  The TMO has drafted guidance to provide a comprehensive and organized source for planning and completing transition to support activities. The draft guidance provides direction for developing transition to support plans and directs BSM project teams to develop these plans earlier in the projects’ design phase.  The draft guidance addresses most of the gaps that exist between the ELC and the Software Acquisition Capability Maturity Model.  The TMO also plans to review BSM projects to ensure the project teams are consistently following the transition to support guidance and will work with the IRS operating divisions to ensure they are capable and ready to support and maintain the BSM projects once they are deployed.

Because the TMO is working toward addressing the transition to support problems identified, we are not providing any additional recommendations at this time.  However, we suggest you consider the issues identified in this report to help in your efforts to further improve the transition to support processes, which will be a major step in improving the overall acquisition management capabilities of the IRS.

Management’s Response:  The Deputy Commissioner for Modernization & Chief Information Officer responded that he appreciated our insights into and review of this critical area and plans to incorporate our suggestions into the transition to support processes and documents.  Management’s complete response to the report is included as Appendix V.

Copies of this report are also being sent to the IRS managers who are affected by the report.  Please contact me at (202) 622-6510 if you have questions or Scott Wilson, Assistant Inspector General for Audit (Information Systems Programs), at (202) 622-8510.

 

Table of Contents

Background

Improved Transition to Support Guidance Has Been Developed

Transition to Support Guidance Can Be Enhanced to Improve Compliance with the Capability Maturity Model

Following Transition Management Office Guidance Will Help Project Teams Plan Effective Transition to Support Activities

Appendix I – Detailed Objective, Scope, and Methodology

Appendix II – Major Contributors to This Report

Appendix III – Report Distribution List

Appendix IV – Comparison of the Software Acquisition Capability Maturity Model Framework with the Enterprise Life Cycle Transition to Support Guidance and Draft Transition Management Guidance

Appendix V – Management’s Response to the Draft Report

 

Background

The Internal Revenue Service (IRS) selected the Computer Sciences Corporation to serve as the Prime Systems Integration Services Contractor (PRIME) for the Business Systems Modernization (BSM) program.  The IRS and the PRIME contractor developed the Enterprise Life Cycle (ELC) that provides guidance for designing, developing, and supporting BSM projects.

The ELC establishes a set of repeatable processes and a system of reviews that promote delivery of promised business results.  The ELC processes are in line with the Software Engineering Institute’s Software Acquisition Capability Model Maturity Model (SA-CMM).  The SA-CMM is a widely recognized and adopted framework for improving software and system acquisition processes.

Transition to support (T2S) is identified as one of the SA-CMM key process areas and is included as part of the ELC.  The intent of T2S is to provide a disciplined transition of the BSM projects being developed to the IRS organization responsible for their long-term support and maintenance.  All BSM project teams need T2S activities to take place in order to successfully transfer the projects to the IRS.  The goal of T2S activities is to ensure the support organizations are fully prepared to accept responsibility for supporting and maintaining the projects and related products.

In November 2001, the Deputy Commissioner for Modernization & Chief Information Officer requested that we review the T2S efforts.  In response, we performed this audit to determine whether planning and preparation is adequate to timely and effectively transfer support and maintenance of BSM projects to the IRS support organizations.

To accomplish our objective, we reviewed available documentation and interviewed PRIME contractor staff and IRS executives, managers, and analysts located at the IRS’ National Headquarters and at the Modernization, Information Technology, and Security (MITS) Services offices in New Carrollton, Maryland.  We performed these reviews between February and May 2002, in accordance with the President’s Council on Integrity and Efficiency’s Quality Standards for Inspections.  Detailed information on our objective, scope, and methodology is presented in Appendix I.  Major contributors to the report are listed in Appendix II.

Improved Transition to Support Guidance Has Been Developed

The MITS Services organization is establishing the Transition Management Office (TMO) to provide T2S policy and guidance to BSM project teams and the MITS organization designated to support and maintain the deployed projects.  The TMO developed a transition management approach to partner with the PRIME contractor’s Business Transformation Office to oversee, integrate, and provide an IRS-wide view of T2S processes.  The TMO has also produced a draft transition management guidance document that provides templates and planning guidance for T2S activities.  This document clarifies existing ELC processes and incorporates additional interim guidance developed by the MITS Services organization.

The draft transition management guidance provides a comprehensive and organized source for planning T2S activities.  It addresses most of the existing gaps between the ELC and SA-CMM standards, and it directs BSM project teams to develop T2S plans earlier in the projects’ life cycle.  The BSM Office’s Solutions Acquisition Process Group is currently reviewing this guidance.  Once approved, the TMO plans to issue the new guidance as a program-wide directive that must be implemented by BSM project teams prior to a project’s Development Phase.

In addition to providing T2S guidance to the BSM project teams and the MITS Services organization, the TMO also plans to provide transition management guidance to other IRS operating divisions and functions.  The TMO will act as a facilitator to involve and inform entities at the executive and strategic level that have a stake in transition management.

Transition to Support Guidance Can Be Enhanced to Improve Compliance with the Capability Maturity Model

While the TMO’s draft guidance on T2S activities addresses most of the gaps between the existing ELC processes and the SA-CMM key process areas, there are still two SA-CMM activities that are not included in the ELC and not fully addressed by the TMO’s draft guidance, as follows:

·        Responsibility for the software products is transferred only after the software support organization demonstrates its capability and capacity to modify and support the software products.

·        The project team conducts activities to ensure that support of the software products is maintained and is effective during the transition from the contractor to the software support organization.

The current ELC and draft T2S guidance include planning activities to make the necessary resources and training available to the support organizations.  However, to address the SA-CMM framework, the TMO needs to consider producing guidance that directs T2S activities to actually demonstrate (test) the MITS Services organizations’ capability and capacity to operate and maintain the BSM projects.  Testing the MITS Services organization’s capability and capacity would provide the IRS assurance that appropriate operating experience and adequate resources exist to support a project’s processes prior to the hand-off from the developer.  Appendix IV provides a comparison of the SA-CMM framework to the ELC and draft T2S guidance.

Without guidance requiring plans to include tests of the MITS Services organization’s capability and capacity, the project teams risk the ability to effectively and efficiently transfer control of the projects.  The MITS Services organization may not be ready to accept control of the projects when they are deployed, which could either delay the projects or increase project costs by requiring the IRS to pay the PRIME contractor to support and maintain the deployed projects until the MITS Services organization is ready to accept control.

Management Actions: The TMO indicated that Version 2.0 of the draft transition management guidance, which is in process, would include procedures to assess T2S readiness of the project teams and the MITS Services organization.

Following Transition Management Office Guidance Will Help Project Teams Plan Effective Transition to Support Activities

We reviewed the T2S planning activities in the following BSM projects:

·        Customer Account Data Engine (CADE) - CADE will create current, complete, and accurate authoritative data stores containing taxpayer accounts and tax returns and construct the related tax administration system processes.

·           Security and Technology Infrastructure Release (STIR) - The system infrastructure is envisioned as a combination of custom software modules and commercial-off-the-shelf hardware, software, and security solutions, integrated to create the foundation for a secure, modernized IRS infrastructure.  The STIR project objective was to deliver the first installment of the modernized technology infrastructure and security services for the 2002 Filing Season. 

·           Internet Refund/Fact of Filing (IRFOF) - The IRFOF project will allow taxpayers to access tax return filing and refund information with a secure Internet connection.

·           Filing and Payment Compliance (F&PC) - The F&PC project will provide the IRS with the ability to manage its accounts receivables more effectively and significantly increase tax collection.

The T2S plans were not developed as early in the above projects’ life cycles as prescribed by the ELC, and the T2S plans and activities were not timely included in the task orders issued to the PRIME contractor for specific work products.

Project teams did not develop T2S plans early in the project life cycle

ELC guidance directs that T2S activities should begin early in a project’s life cycle and that these activities should be performed in accordance with a T2S plan.  The project teams did not develop T2S plans early in the life cycles of the four projects we reviewed.  Rather, the projects delivered T2S plans after the completion of the Vision and Strategy and Architecture phases of the ELC.

For the MITS Services organization to be ready and able to maintain the work products that have been developed, it is important that the project teams consider available MITS Services organization resources from project inception.  This planning activity allows for an awareness of what is being designed and developed and identifies the necessary preparations and resources for the MITS Services organization to be able to provide the required support upon assumption of responsibility.

The status of T2S plan development for the four projects reviewed was as follows:

·        The CADE project team is currently developing a Release 1 pilot but is not scheduled to produce a T2S plan until the development of Release 2 in 2003.  However, the PRIME will maintain the CADE project until it is transferred to the IRS after the deployment of Release 5 scheduled for 2006.

·        The STIR project team completed its Vision and Strategy and Architecture phases in April 2000 without a T2S plan.  The T2S plan was first presented as a Deployment Phase deliverable in January 2002.

·        The IRFOF project team began the Development Phase in August 2000, but the T2S plan was not delivered until September 2001.

·        The F&PC project team is scheduled to address T2S plans and activities in its Organizational Transition Plan after completing the Vision and Strategy and Architecture phases and before beginning the Development Phase in August 2002.

Project teams did not timely include T2S plans and activities in task orders

One of the ELC requirements is that T2S plans and activities are required in issued task orders.  In the four projects we reviewed, we found that the T2S plans and activities were not timely included in task orders issued to the PRIME contractor. The CADE project does not have a task order for T2S plans for the reasons mentioned above.

·        The STIR project team did not task a T2S plan until June 2001, when it was added as a deliverable subsequent to the Development Phase.

·        The IRFOF project team did not require a T2S plan deliverable until a task order modification was signed in May 2001 to add it as a deliverable.

·        The F&PC project team did not require any T2S plans or activities in its task order.  The project team is scheduled to address T2S plans in the project Development Phase in August 2002.

Inconsistency in T2S planning and task order development can be attributed to varying interpretations of existing guidance. The guidance recommends developing T2S plans at the beginning of a project and then reviewing the progress of the plans at three later points in the life cycle.  Various project teams interpreted this guidance to mean that T2S plans and task order development need not be initiated until the Development Phase of the ELC, instead of at the beginning of the project.  There was also some confusion in interpreting the T2S process, which spans the entire life cycle, with the actual deployment and transition of a project, which is the final phase of the life cycle.

The absence of T2S plan requirements in task orders issued to the PRIME contractor could result in delays in transferring BSM projects to the IRS.  Also, delivery of T2S plans late in the project life cycle can affect the ability to execute transition activities in time for a seamless transition to the MITS Services organization.  Delays may require the PRIME contractor to operate and maintain the deployed projects until the MITS Services organization has the resources and trained personnel available to receive the projects.

Management Actions:  The TMO plans to issue T2S policy and guidance that is more clearly defined and communicated to allow for consistent and effective T2S planning and execution. Future inconsistencies in the timing of T2S planning and contract tasking should be overcome with the issuance of the pending transition management guidance document and the TMO’s involvement with the BSM project teams.

Management’s Response:  The Deputy Commissioner for Modernization & Chief Information Officer responded that he appreciated our insights into and review of this critical area and plans to incorporate our suggestions into the transition to support processes and documents. 

Appendix I

 

Detailed Objective, Scope, and Methodology

 

The objective of this review was to determine whether planning and preparation is adequate to timely and effectively transfer support and maintenance of Business Systems Modernization (BSM) projects to the Internal Revenue Service (IRS) support organizations.  This process is known as the transition to support (T2S) process.

I.        Assessed the status and adequacy of the T2S planning and preparation guidance compared to industry standards and procedures.

A.     Compared the T2S planning and preparation guidance in the IRS’ Enterprise Life Cycle (ELC) to the Software Engineering Institute’s Software Acquisition Capability Maturity Model (SA-CMM).

B.     Assessed the extent to which the IRS’ Integration Management Office draft T2S plan template and related T2S guidance supplements existing T2S planning and preparation guidelines. 

C.     Assessed the scope and content of the IRS’ Transition Management Office draft T2S guidance for the BSM project teams. 

II.     Reviewed the adequacy of task orders and T2S plans of four BSM projects to determine if necessary T2S planning and preparation activities were present.

A.     Determined if the selected projects have adequate provisions in the task orders for developing T2S plans and implementing T2S activities.

B.     Determined if the selected projects have adequate T2S plans for project teams to transfer modernized products to the receiving IRS support organization.

 

Appendix II

 

Major Contributors to This Report

 

Scott E. Wilson, Assistant Inspector General for Audit (Information Systems Programs)

Scott A. Macfarlane, Director

Edward A. Neuwirth, Audit Manager

Beverly Tamanaha, Senior Auditor

Louis Zullo, Senior Auditor

 

Appendix III

 

Report Distribution List

 

Commissioner  N:C

Deputy Commissioner  N:DC

Associate Commissioner, Business Systems Modernization M:B

Chief, Information Technology Services  M:I

Deputy Associate Commissioner, Program Management M:B:PM

Chief Counsel  CC

National Taxpayer Advocate  TA

Director, Legislative Affairs  CL:LA

Director, Office of Program Evaluation and Risk Analysis N:ADC:R:O

Office of Management Controls  N:CFO:F:M

Audit Liaison:

Associate Commissioner, Business Systems Modernization M:B

Chief, Information Technology Services M:I

 

 

Appendix IV

 

Comparison of the Software Acquisition Capability Maturity Model Framework with the Enterprise Life Cycle Transition to Support Guidance and Draft Transition Management Guidance

 

CF

Software Acquisition
Capability Maturity Model

Addressed in Enterprise Life Cycle Guidance?

Addressed in Draft Transition Management Guidance?

G1

The project team ensures the software support organization has the capacity and capability to provide the required support upon assumption of responsibility for the support of the software products.

Yes

Yes

G2

There is no loss in continuity of support to the software products during transition from the contractor to the software support organization.

Yes

Yes

G3

Configuration management is maintained throughout the transition.

Yes

Yes

C1

The acquisition organization has a written policy for the transfer of software products to the software support organization.  This policy typically specifies that:

1.      The software support organization is identified prior to developing the solicitation package.

2.      Resources for software support are included in the appropriate budget(s).

3.      The designated software support organization is involved, as appropriate, throughout the acquisition.

Yes

Yes

C2

The acquisition organization ensures that the software support organization is involved in planning for transition to support.

Yes

Yes

C3

Responsibility for transition to support activities is designated.

Yes

Yes

Ab1

A group that is responsible for coordinating transition to support activities exists.

Yes

Yes

Ab2

Adequate resources are provided for transition to support activities.  (Resources include funding, staff, equipment, and tools.)

Yes

Yes

Ab3

The organization responsible for providing support of the software products is identified no later than initiation of the solicitation package’s development.

Yes

No

Ab4

The software support organization, prior to transition, has a complete inventory of all software and related items that are to be transferred.

Yes

Yes

Ab5

Individuals performing transition to support activities have experience or receive training.

Yes

No

Ab6

The members of organizations interfacing with the transition to support activities receive orientation on the salient aspects of transition to support activities.

Yes

Yes

Ac1

The project team performs its activities in accordance with its documented transition to support plans.  The plans typically cover:

1.      The objectives and scope of the transition to support activities.

2.      Identification and involvement of the software support organization.

3.      Support resource requirements.

4.      A definition of transition activities.

5.      A schedule of transition activities.

6.      Allocation of transition responsibilities.

7.      Installation of products that are to be delivered.

8.      Warranty and data rights provisions.

 

Yes, except
for item #7

Yes, except for item #8

Ac2

Responsibility for the software products is transferred only after the software support organization demonstrates its capability and capacity to modify and support the software products.

This capability typically includes the availability of:

1.      Hardware, software, physical, fiscal, and personnel resources.

2.      Plans, processes, procedures, and documentation.

3.      An established configuration management system capable of supporting the software.

4.      Appropriate training of all personnel involved.

5.      Software replication, test, and distribution capabilities.

No 

No

Ac3

The project team conducts activities to ensure that support of the software products is maintained and is effective during the transition from the contractor to the software support organization.

No 

No

Ac4

The project team oversees the configuration control of the software products throughout the transition.

Yes

Yes

M1

Measurements are made and used to determine the status of the transition to support activities and resultant products.  

Yes

Yes

V1

Transition to support activities are reviewed by acquisition and software support organizations’ management on a periodic basis.

Yes

Yes

V2

Transition to support activities are reviewed by the project manager on both a periodic and event-driven basis.

Yes

Yes

 

Appendix V

 

Management’s Response to the Draft Report

 

The response was removed due to its size.  To see the complete response, please go to the Adobe PDF version of the report on the TIGTA Public Web Page.