TSP officials could share responsibility for computer system delay

TSP officials could share responsibility for computer system delay

The Thrift Savings Plan is reconsidering its $52 million contract with the National Finance Center, but e-mail correspondence between the two agencies raises questions about the TSP Board's argument for changing its relationship with the NFC.

TSP officials criticized the finance center on Feb. 17 for delays in implementing a computer system designed to improve customer service for the 3.2 million federal employees who invest in the retirement plan.

The NFC - an Agriculture Department agency based in New Orleans - handles some administrative duties for the savings plan, including a call center, a mail handling facility and the customer service computer system. More than 400 finance center employees are assigned to TSP projects.

The computer system originally was scheduled to be in place by January 2004, but officials now expect it to be installed by May or June. During a February meeting, TSP officials and board members faulted the NFC for being unresponsive and for dragging its feet on the project.

But after the TSP publicly criticized the NFC's efforts, finance center officials internally circulated an e-mail exchange between the two agencies indicating that that the TSP could be responsible for making the next move in the installation. An NFC employee who asked not to be named shared the exchange with Government Executive.

"Here's a status update on installation of the new TSP machine," wrote Gilbert Hawk, director of NFC's Information Resources Management Division, in a Jan. 30 e-mail to Lawrence Stiffler, director of the TSP's Office of Automated Systems. "Bottom line is that we have done all we can do until we get further direction and information from you."

"I know you are waiting," Stiffler replied. "Please hold any more actions until I get back to you."

TSP officials said that they did not want to make a statement about the e-mails and Hawk did not reply to requests for comment. During the Feb. 17 board meeting, Thrift Board members sharply criticized the NFC and TSP Executive Director Gary Amelio said the finance center "doesn't understand client service."

Recently, however, TSP officials have tempered their remarks on the NFC. During a Senate hearing this month, Thrift Board Chairman Andrew Saul praised the historical relationship between the two organizations.

In January's status e-mail, Hawk indicated that the NFC is waiting for the Thrift Board to provide software licenses for the new mainframe, to "install toleration maintenance" and to implement a process for transferring files to the system. According to Hawk's message, the NFC also sought guidance from the board earlier that month.

"I sent an e-mail to you on Jan. 14 and followed up on Jan. 26 with actions and information we need to continue the installation," Hawk wrote. "We are waiting for your direction on these items before we can continue."

COMMENTS

  • I find the quote in a previous GovExec.com article interesting: "TSP Executive Director Gary Amelio told lawmakers that as the savings plan has grown, the NFC has charged more for each TSP investor. In the early 1990s, Amelio said, the finance center charged about $6 per TSP member per year. The NFC now charges $18 per TSP member." Possibly Director Amelio would like to make a public comparison of the amount and level of service that was being provided for at $6 and at $18, and who directed/requested the services provided? Saying that the price went up per member without providing facts on what services are being performed is useless.
  • My hats off to the person who sent in the email. I hope there are more on their way to GovExec. I bet this is the tip of the iceberg. Thank goodness someone was smart enough to provide the info so that participants and the media can see who is at fault. Next time I hope the headline will not read that the Thrift Board COULD share responsibility... they are solely responsible. I urge all of you to flood GovExec and any news media with whatever you have. Bring it on!
  • I applaud the brave person who released the email showing that the Thrift Board staff is responsible for this mess. It speaks volumes about the Thrift Board's integrity or lack thereof. Remember these are the people who are making decisions about 3.2 million participants 401K money. And the integrity of the Board members who are listening to them and allowing this to continue. I bet there are plenty more emails or pieces of evidence that will blow them right out of the water with their mismanagement and dishonesty. I sure hope the person who released it or others who have the info will be brave enough to share the rest! I salute you.