DHS Finds ACE is Moderately "High Risk" in July 2010 Review

ACE Given a Risk Score of 2, Considered “Moderately High Risk”

The CIO rated ACE, as an investment, as a 2 (on a scale of 1-5)¹. Therefore, ACE is considered a “moderately high risk” investment.

ACE has Achieved Planned Targets for Accounts, PMS Payment, e-Manifest, Etc.

ACE has achieved the planned targets for the critical performance measures that track the number of ACE accounts, percentage of duties and fees paid via ACE periodic monthly statement process, the national percentage of e-Manifests filed, and the percent reduction in truck processing time due to e-Manifest.

ACE has Significant Challenges in M1, Re-Baselining, Scope, Funding, Etc.

However, ACE has encountered some significant challenges:

• Program baselines have changed numerous times and the program is significantly behind schedule.
• The program needs to develop final requirements, acquisition strategy, and revised cost estimates.
• The full scope originally envisioned for ACE cannot be completed within the President’s Budget. Furthermore, additional development funds for ACE releases will not be available in the FY 2011 budget as the program is to set to move into the operations and maintenance mode.
• The planned ACE program cannot be completed within the current funding profile. These constraints have led CBP to alter plans for FY 2010 and beyond. Following re-baselining, FY 2010-11 will focus on developing the e-Manifest: Ocean and Rail (M1) effort by the end of the first quarter, FY 2011.
• The M1 project experienced cost overruns and schedule delays. The ACE Executive Committee of CBP stopped work on M1 to review and validate requirements. A second critical design review was conducted to re-baseline M1 requirements early in FY 2010.

CBP Working to Map Remaining Work Against Remaining Funding

CBP is working to re-baseline/re-formulate the program to include validating program priorities and mapping remaining work against remaining funding. DHS has restricted work and funding with the current contractor to only items due on the current contract option, and the follow-on option will not be executed. CBP must provide alternatives to achieve program priorities before proceeding with any new contracting actions.

Improvements to Oversight, Best Practices, Contract Management Done or in Process

The following improvements have been made or are being worked by the ACE Program Manager:

• ACE continues to improve contract management and PMO oversight of the prime contractor.
• The Program Manager is working to institutionalize best practices in areas to include requirements management, configuration management, and testing.
• Continue to migrate the program to a Services-Oriented Architecture.
• Improve contract management and interface as well as improve the method of calculating earned value management to better reflect contract performance.
• Improve program office interface with the prime contractor.

(ACE is the new CBP import and export processing system. Its goals include facilitating the movement of legitimate trade through more effective trade account management and strengthening border security. The ACE program seeks to improve operational support to international trade while improving the security of imports and exports.

In addition, ACE is being integrated with the International Trade Data System (ITDS) as the best alternative to supporting the international trade data needs of each of the Federal agencies with international trade responsibilities. The international trade processes supported by this initiative include data collection, processing, use, dissemination, and storage.)

¹1 is high risk, 2 is moderately high risk, 3 is medium risk, 4 is moderately low risk, 5 is low risk.