Year 2000 Computing Challenge

The Department of Labor has taken steps to prepare its 61 mission-critical systems for the upcoming date change at the turn of century. With little more than seven months left, however, Labor remains vulnerable to systems disruptions in two areas GAO has previously cited: making benefit payments to laid-off workers and generating labor and economic statistics. The difficulty in making benefit payment systems Year 2000 compliant stems from Labor's reliance on largely unverified progress reports from states and on states' abilities to get the job done. Several state employment security agencies, however, report that they are not yet compliant. Moreover, Labor acknowledges that four of the 23 mission-critical systems used by the Bureau of Labor Statistics contain a non-Year 2000 compliant vendor product. Given these risks, appropriate contingency plans should be developed to ensure business continuity in the event of system failures.

GAO noted that: (1) Labor has taken action to prepare its 61 mission-critical systems for the change of century; (2) however, with a little more than 7 months left, Labor remains at risk of systems disruptions in two of the areas GAO highlighted last fall: making benefits payments to laid-off workers, and producing labor and economic statistics; (3) the risk in making benefits payment systems compliant emanates from Labor's reliance on largely unverified progress reports from states and on states' capabilities to get the job done; (4) several State Employment Agencies report that they are not yet compliant; (5) further, the department acknowledges that 4 of the 23 mission-critical systems used by BLS contain a non-year 2000-compliant vendor product; and (6) given these risks, it is important that appropriate contingency plans be developed to ensure business continuity in the event of system failures.