Customs Service Modernization

The U.S. Customs Service is very aware that its ability to effectively conduct business in the future depends heavily on successfully modernizing its import process and automated systems. To its credit, Customs is redesigning its import process. It is also developing a new automated import system--the Automated Commercial Environment--to support this new process. Customs' efforts, however, are at risk for failure because the agency is not effectively applying best practices to overcome the serious risks arising from such an ambitious systems modernization. For example, contrary to best practices, Customs chose hardware, software, and telecommunications for its systems before it redesigned its key business processes. Moreover, Customs has not been applying specific criteria to assess projects and analyze project costs and benefits. Finally, Customs has not established clear accountability for ensuring that the requirements of the National Customs Automation Program are successfully implemented.

GAO found that: (1) Customs is redesigning its import process and plans to develop a new automated import system while it enhances its present system to meet NCAP mandates in the interim; (2) the new import process will serve customer needs better and improve operational efficiency and effectiveness; (3) Customs plans to deploy its new import system in October 1998; (4) Customs' modernization efforts are vulnerable to failure because it has not effectively applied best practices to the implementation of its NCAP strategy; (5) Customs selected new systems before it redesigned its key business processes and is not applying specific criteria in assessing projects, alternatives, costs and benefits, and systems architecture; (6) Customs has not managed its new automated system acquisition as an investment nor planned how to incorporate NCAP requirements into it; (7) two contractors' studies have highlighted the weaknesses in Customs' modernization plans and recommended ways to improve its efforts; (8) Customs plans to hire additional contractors to perform the needed modernization analyses, but it also intends to continue with system development and equipment purchases before these analyses are completed; and (9) Customs has not established clear accountability for ensuring that NCAP requirements are successfully implemented.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Team: Phone: