IBM-LED SYSTEMS TEAM TAPPED TO DEVELOP CUSTOMS? ACE

IBM-LED SYSTEMS TEAM TAPPED TO DEVELOP CUSTOMSÆ ACE    The U.S. Customs Service has awarded a multibillion dollar contract to an IBM Global Logistics-led systems team to build its future computer system, the Automated Commercial Environment.
   The team — called the “e-Customs Partnership” — includes IBM, Lockheed Martin Mission Systems, KPMG Consulting, Computer Sciences Corp., Sandler & Travis Trade Advisory Services, Booz-Allen & Hamilton, ITS Services, and more than 40 other small technology specialty firms.
   “To me, this is a tremendous day,” said Charles W. Winwood, acting commissioner of Customs, at a press conference Friday. “This is no longer a debate about when the step will be taken. The step is already here.”
   Roland S. Harris III, general manager of IBM Global Services’ Public Sector — Health Care, Government, and Education division, called the team a “balancing” of systems and government-related experts from “across the board.”
   Customs sought bids from the private sector in late December to build ACE, the long-awaited $1.3-billion system, after $130 million in funds was provided for the system in the agency’s fiscal 2001 automation budget. Three firms — IBM, Accenture (formerly Andersen Consulting) and Electronic Data Systems Corp. — filed their bids by Customs’ Feb. 5 deadline.
   The Customs modernization contract will be broken out over three five-year segments, with the first five years focused on ACE development. The reason for taking the first step with ACE is because the system involves the most interaction with trade, traveling public and revenue collection, said S. W. “Woody” Hall Jr., assistant commissioner and chief information officer for Customs. The remaining five-year segments of modernization will involve enhancements to the agency’s enforcement and administrative operations.
   During the first 60 days of the contract, the “prime” contractor will get its management team in place; validate requirements for the contract; and conduct a “high-level” systems plan review, as well as a detailed analysis of the first phase of the rollout. Hall said the first year of the contract will initially focus on completing and expanding the National Customs Automation Program, a land-border system for quickly clearing high-volume, low-risk shipments.
   The e-Customs Partnership will meet with industry officials at the Trade Support Network meeting in Washington on May 14-16. The TSN is designed to provide Customs with input about the business needs, which should be considered in the development of ACE. The work of 17 industry groups in a coalition to reform the agency’s import entry process will also be considered.
   However, the biggest battle ahead for Customs modernization is to receive increased ACE funding from Congress in the fiscal 2002 budget.
   “We are very concerned that the current funding level is woefully inadequate,” said Michael Eads of the Coalition for Customs Automation Funding, a group of about 200 firms and trade associations lobbying for increased ACE funding. “Our coalition is faced with the task of ensuring that ACE is funded at a level that translates into a four-year program.”
   The Bush administration has so far followed in the steps of the previous administrations by requesting $130 million for ACE in fiscal 2002. This would add another year onto what was hoped to be a four-year development program, if that funding amount holds in next year’s budget.
   Customs has gained some support from leading congressmen to develop ACE. They include Sen. Byron Dorgan, D-N.D., ranking member of the Senate Appropriations Subcommittee on Treasury and Government, and Rep. Steny H. Hoyer, D-Md., ranking member of the House Appropriations Subcommittee on Treasury, Postal Service, and General Government.
   “ACE is the principle tool that will facilitate the expeditious and efficient processing of legitimate cross border trade,” Dorgan said. “I am committed to ensuring that the funds Congress has appropriated, and which we will continue to appropriate, will be spent wisely for the benefit of American business and the American consumer.”