Cloud // Cloud Storage
03:11 PM
Core System Testing: How to Achieve Success
Oct 06, 2016
Property and Casualty Insurers have been investing in modernizing their core systems to provide fl ...Read More>>

DHS Scraps Financial Systems Consolidation Project

The Transformation and Systems Consolidation project has been killed while the Department of Homeland Security ponders a cloud-based, less integrated modernization plan.

Inside DHS' Classified Cyber-Coordination Headquarters
(click image for larger view)
Slideshow: Inside DHS' Classified Cyber-Coordination Headquarters
The Department of Homeland Security (DHS) has scrapped a project to modernize its financial management systems through an enterprise-wide consolidation after a government watchdog agency upheld a protest over the terms of its solicitation, according to a department official.

In March, the Government Accountability Office (GAO) sustained a protest from Global Computer Enterprises about a $450 million award the DHS made for its Transformation and Systems Consolidation (TASC) project, which was meant to deploy a modern enterprise resource planning system.

The company protested the award given to Arlington, Va.-based contractor CACI last November because the DHS did not revise a solicitation for the project after the department changed its scope at the request of the Office of Management and Budget (OMB) last year.

As a result, the DHS won't go ahead with the project as originally conceived and instead is eyeing other options to modernize its financial-management system, including ones that utilize cloud-based options, said department spokesman Chris Ortman.

"Based upon a review and reevaluation of the solicitation, DHS is considering alternatives to meet revised requirements," he said in an email to InformationWeek, adding that a "modernization of the department's financial, acquisition, and asset systems remains a key priority."

Like other federal financial-management projects, TASC was held up last summer pending review by the OMB, which called for all such projects with a price tag of $20 million or more to be put on hold pending review and an agency re-evaluation.

The DHS said it would go ahead with the project anyway. The GAO already had criticized the department for making slow progress on TASC in a December 2009 report.

The DHS worked with the OMB to narrow the scope of the project and make changes that were "materially different from the assumptions set forth" in the original solicitation, according to the protest from Global Computer Enterprises. This formed the basis for the protest that the GAO upheld, even while the agency dismissed a related one lodged by Savantage Financial Services.

After the GAO's ruling, the DHS revised its requirements for TASC, changing them in several areas--including data-center hosting, which paves the way for a cloud-based solution rather than one hosted in a DHS data center.

Rather than an enterprise-wide modernization effort that will take five to 10 years to complete, the DHS also now is considering making changes to the financial-management systems of only the most critical organizations within the department, it said. They include the Federal Emergency Management Administration (FEMA), the U.S. Coast Guard and Immigration and Customs Enforcement, according to the DHS.

Join InformationWeek Government for a virtual event on cybersecurity best practices and government IT. It happens May 25. Download it here. (Free with registration.)

Comment  | 
Print  | 
More Insights
Oldest First  |  Newest First  |  Threaded View
Google in the Enterprise Survey
Google in the Enterprise Survey
There's no doubt Google has made headway into businesses: Just 28 percent discourage or ban use of its productivity ­products, and 69 percent cite Google Apps' good or excellent ­mobility. But progress could still stall: 59 percent of nonusers ­distrust the security of Google's cloud. Its data privacy is an open question, and 37 percent worry about integration.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.