{"id":14692,"date":"2017-10-02T19:42:34","date_gmt":"2017-10-02T19:42:34","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2017\/10\/02\/audit-finds-sec-wasted-funding-on-data-center-migration\/"},"modified":"2026-08-08T04:38:45","modified_gmt":"2026-08-08T04:38:45","slug":"audit-finds-sec-wasted-funding-on-data-center-migration","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/it-networks\/2017\/10\/02\/audit-finds-sec-wasted-funding-on-data-center-migration\/","title":{"rendered":"Audit finds SEC \u2018wasted\u2019 funding on data center migration"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">An Inspector General audit of the Securities and Exchange Commission\u2019s handling of 2012-2013 data center relocations found that the agency\u2019s failure to follow outlined steps in a contractor-developed plan resulted in potentially wasted funding.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In 2008 the SEC paid a private contractor $162,000 to develop a plan for relocating its data centers. The report found that the agency\u2019s failure to adhere to timelines on this plan prevented its data providers from meeting agency needs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cBecause the agency derived little, if any, benefit from the 2008 data center relocation plan, we believe the $162,000 paid for the plan represents funds that the SEC may have wasted,\u201d the report said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, the IG concluded that this failure also resulted the exposure of the first data provider to physical and environmental vulnerabilities, resulting in $370,000 in costs to mitigate the exposure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAdditionally, we determined that the SEC did not adequately manage or monitor its data center contracts,\u201d the report said. \u201cBecause of inadequate contract management, the SEC paid [data provider two] invoices containing formula errors resulting in $217,159 in overpayments (which has been refunded). We also identified about $2.8 million in unsupported costs paid to [data provider one].\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The report also found that the first data provider may be failing to meet a key contract requirement: to be a Tier III data center or greater under Telecommunications Industry Association standards.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIf the SEC does not take corrective action to validate certain costs and if all contract options are exercised, the agency will incur additional costs of about $2.7 million in funds that could be put to better use over the remaining life of D1\u2019s contract.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The SEC has come under fire in recent weeks for failing to disclose a 2016 cyberattack until September of this year. SEC Chairman Jay Clayton told the Senate Banking, Housing and Urban Affairs Committee <a href=\"https:\/\/www.federaltimes.com\/civilian\/2017\/09\/26\/sec-chairman-faces-questions-from-congress-after-data-breach\/\">last week<\/a> that news of the breach should not limit the commission\u2019s access to sensitive data or derail their mission.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The IG report recommended that the SEC conduct a comprehensive review of the 2012-2013 relocation to determine lessons learned and requested that the director of the Office of Acquisitions conduct a comprehensive review of the SEC\u2019s Contracting Officers Representatives program.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An Inspector General audit of the SEC\u2019s handling of 2012-2013 data center relocations found that the agency\u2019s failure to follow outlined steps in a contractor-developed plan resulted in potentially wasted 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