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Federal agencies have run out of breath during the final leg of the race to beat the year 2000 clock, the House's Y2K watchdog said Friday.

The latest report card on federal departments and agencies' year 2000 progress, compiled by Rep. Steve Horn, R-Calif., showed an improvement in compliance of only one percent since the last grades were released this spring.

"Progress during this quarter, which ended on August 15, is discouraging. The flurry of activity we saw among federal agencies earlier this year has slowed to a snail's pace," Horn said.

Among the laggards, the Defense Department received a grade of D because, as of August 13, only 89 percent of DoD mission-critical computer systems were Y2K compliant. DoD reported 88 percent compliance in May. The only other D was issued to the Agency for International Development. But despite its poor grade, AID showed much progress this quarter. The agency reported that 86 percent of its systems are Y2K compliant, up from 29 percent since its last report, in mid-May.

This is the ninth Y2K grading exercise for Horn, chairman of the House Government Reform Subcommittee on Government Management, Information and Technology. In the latest report card on the 24 largest executive branch agencies' Y2K readiness, 14 agencies received A's, four received B's, four earned C's and two took home D's. No agency received a failing grade. Overall, the administration got a B-, the same grade it had in Horn's last report card in June.

Five percent of the government's most critical computer systems remain to be fixed, Horn said. The Defense Department accounts for most of those systems. DoD recently revised its number of mission-critical systems, adding 33 systems to its total count.

"Defense's numbers are about as consistent as the stock market," Horn said.

Grades were also issued on the Y2K preparedness of 43 high-impact government programs. Programs like student aid, welfare and social security, that have broad use among the public, have been identified as high impact by the Office of Management and Budget.

Four agencies got failing grades for their high impact programs: the Departments of Labor, Interior, Transportation and Health and Human Services. In many cases, however, the agency's computer systems are compliant but its state, local and private sector business partners' are not, the progress report said.

At least seven major programs are Y2K ready, including disease monitoring, the National Crime Information center, passport applications and veterans benefits. According to Horn, 36 more programs remain at risk for failure as the millennium approaches.

Still, Horn has said in the past that he is not a Y2K scaremonger and that he's optimistic that agencies can beat the Y2K clock. Others in government feel the same way.

At this week's annual conference of federal information technology managers in Williamsburg, Va., there was agreement that Y2K will not be the disaster that once was feared. "Y2K looks like it's under control," said General Services Administrator David J. Barram, whose agency has a role in IT governmentwide.

Horn's Grades for Agencies' Year 2000 Efforts
June 15, 1999