Have appropriate information technology and business controls been implemented and tested for proper functionality?
Overall, we concluded that PBGC needs to reassess and verify the cost and benefits of Ariel before making any additional investments in this application. The project has experienced delays and the estimated cost and benefits of the project have never been adequately documented. As a result, the initial sole source contract for Ariel’s development grew from an initial obligation of about $500,000 with a ceiling of just over $900,000 to over $2.8 million after six amendments. The second sole source contract for Ariel’s implementation grew from $1.8 million to over $31 million with 13 amendments. Additionally, there was a separate sole source contract for a consultant to work with the implementation of Ariel in the amount of $757,000. PBGC also needs to solicit proposals, before modifying the existing contract, to determine if there are other vendors that can provide a better solution for valuing plan benefits or providing the necessary services at a competitive cost. Our review identifie
