Remember in elementary school when the teacher used to write a name on the board for disruptive behavior as a public facing deterrent? As a common recipient, I remember this well. So, when the Office of Management and Budget (OMB) releases its Management Watch List (MWL) for programs weak in certain management areas, I can understand both the motivation to do so and the motivation to correct the program. Late last week, OMB released the first list of programs since the MWL totals were published in February and found a 19% reduction in listed programs. Presumably, these federal officials had acted quickly to correct the weaknesses and effectively, their names had been erased off the federal blackboard. And, even with many other oversight bodies affecting federal programs (Congress, Government Accountability Office and the Inspector General,) OMB manages to ensure that the Management Watch List and High Risk Lists are taken seriously.
What's more, the two lists are related and, according to OMB, impart a sense of urgency as "federal agencies go to great lengths to resolve" the noted weaknesses. Any program still on the MWL at the end of the fiscal year will graduate to the High Risk List for a full year. This has two main deterrents; first, the High-Risk List carries quarterly reporting on program's project management and earned value management (EVM) status, and second, the increased public visibility means the agency or program manager is now considered a member of the federal "Hall of Shame."
Since February 2008, some agencies have had greater success removing troubled programs from the Management Watch List. As the deadline is the end of the Fiscal Year, it stands to reason that the number of programs on the list will continue to drop until September 30, 2008 when the lists are finalized. In 2QFY08, only one agency, the Department of the Interior, increased the number of programs on OMB's MWL list (+ 4). As many as 11 agencies decreased the total programs included on the MWL. The top five agencies with success in removing MWL programs year to date include:
- Treasury with the removal of 37 programs
- DoT with the removal of 16 programs
- Education with the removal of 16 programs
- HHS with the removal of 14 programs
- DHS with the removal of 10 programs
To be removed from the MWL, the program must satisfy all the MWL criteria which include categories like: project management, security, enterprise architecture and certification/accreditation. Out of 810 Major IT Investments, 585 were included in the OMB's MWL in February 2008. The number is currently 473 and is expected to continue to decrease as program officials try to correct weaknesses prior to the start of FY09.
Below are a few examples of programs which remain on the MWL:
- Next Generation Air Transportation System (NextGen)
- Agency: Transportation
- Status: Umbrella Program
- Summary: With many component RFPs and requirements, NextGen is anticipated to provide solutions in areas like information assurance, navigation systems and even weather modeling.
- Medicare Integrity Program Safeguard Contractor Recompete (MIP PSC)
- Agency: HHS
- Status: Umbrella Program
- Summary: This CMS program was assessed to be weak in several areas including security and the procurement for these services via geographical Zone is on-going.
- Detention and Removal Operations Modernization (DROM)
- Agency: DHS/ICE
- Status: Umbrella Program
- Summary: As OMB evaluates this ICE program, program leadership is also planning to fulfill component requirements throughout FY08.
- Western Hemisphere Travel Initiative (WHTI)
- Agency: DHS/CBP
- Status: Awarded
- Summary: With all the aspects of WHTI and other federal agencies involved, DHS has had weaknesses in evaluation criteria and practices as well as program management problems according to OMB.
- Defense Integrated Military Human Resources System (DIMHRS)
- Agency: DoD/BTA
- Status: Awarded
- Summary: Awarded to Booz Allen in 2007, DIMHRS houses a high volume of sensitive information on DoD and military personnel.
- Net Enabled Command Capability (NECC)
- Agency: DISA
- Status: Pre-RFP
- Summary: As DISA prepares the much anticipated and carefully crafted NECC requirement, the OMB evaluates all aspects of the program's management and reporting. NECC was included for both program specific and agency-wide criteria.
- Defense Message System Sustainment (DMS-S)
- Agency: Air Force
- Status: Awarded
- Summary: OMB evaluated this DoD-wide program which is operated by Lockheed Martin through a ten-year, $750 million contract with the Air Force.
Often times, programs which have already been awarded and are under performance require OMB's attention as though are the programs most in need of management review and recommendations. These are just a few examples of the many programs which are currently attracting program leader's attention in an effort to lower the number of vulnerable programs.



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The Management Watch List and the High Risk List are tools used by OMB to help agency officials successfully monitor agency IT planning, as well as improve project performance. These lists are updated quarterly to ensure that agencies are effectively managing their IT investments and improving the ability of the Federal government to deliver information and services to the public.
Under the Clinger-Cohen Act of 1996, agencies are required to submit business plans for IT investments to OMB that outline the steps they have taken to ensure they have adequately planned each investment to promote success. The information under review within the business cases includes acquisition strategies, security and privacy plans, and its organizational design. If the agency’s investment plan contains contains one or more planning weakness, it is placed on OMB’s Management Watch List and is targeted for follow-up action to strengthen the project’s management and potential to produce results.
In August 2005, OMB established its High Risk List to ensure agencies and programs were meeting their intended goals and producing results. Projects on the High Risk List are not necessarily “at risk,” but are those requiring special attention from the highest level of agency management. While these programs may be performing well, they are determined to be high risk due to different factors such as the high cost of the project or the level of importance the project plays in the overall mission of the agency or other organization.