The Department’s Vision for an Enterprise Grants Management System Has Not Been Realized

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Title Full

Date Issued

Monday, June 30, 2025

Submitting OIG

Department of Commerce OIG

Agencies Reviewed/Investigated

Department of Commerce

Report Number

OIG-25-025-A

Report Description

Our audit objective was to assess the U.S. Department of Commerce’s management and implementation of the Grants Enterprise Management System (GEMS) project. We found that bureaus have procured multiple systems to manage grants; bureaus did not follow Department information technology investment review and governance processes before contracting for alternative grants management systems; the GEMS project should improve its management of requirements, cost, and schedule; and the National Oceanic and Atmospheric Administration’s transition to GEMS provided lessons for future transitions.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

External Link

https://www.oig.doc.gov/reports/?entry=36876

Open Recommendations

This report has 10 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1.	Yes	$0	$0
We recommend that the Deputy Secretary ensure that EDA, NIST, NTIA, and the GEMS project reconcile the extent to which those bureaus’ grants management requirements can be met by GEMS.
2.	Yes	$0	$0
We recommend that the Deputy Secretary ensure that EDA, NIST, NTIA, and the GEMS project develop plans, cost estimates, and schedules to consolidate grants management to the extent possible in GEMS, in accordance with Department goals.
3.	Yes	$0	$0
We recommend that the Deputy Secretary ensure that the OCIO reviews the adequacy of the Department’s system of internal control (policies, procedures, and governance bodies) for major IT investments and makes changes to ensure operating units comply with policy and procedures and appropriate officials are held accountable for compliance.
4.	Yes	$0	$0
We recommend that the Deputy Secretary ensure that the OCIO reviews the adequacy of EDA’s system of internal control of IT investments provided both through its memorandum of understanding with the Office of the Secretary for OCIO services and other applicable means (policies, procedures, and governance bodies).
5.	Yes	$0	$0
We recommend that the Deputy Secretary ensure that the OCIO conducts training on IT investment policy and procedures and QSMO requirements for appropriate personnel.
6.	Yes	$0	$0
We recommend that the Deputy Secretary assess the GEMS project’s workforce needs and take appropriate steps as indicated.
7.	Yes	$0	$0
We recommend that the Deputy Secretary ensure the project defines and implements management controls for requirements in accordance with GAO’s Agile Assessment Guide.
8.	Yes	$0	$0
We recommend that the Deputy Secretary ensure the project has support for cost estimation and better defines and implements its cost management controls in accordance with the Department’s Cost Estimating Guide.
9.	Yes	$0	$0
We recommend that the Deputy Secretary ensure the project defines and implements management controls for its schedule in accordance with the Department’s administrative order on Acquisition Project Management (208-16) and GAO best practices.
10.	Yes	$0	$0
We recommend that the Deputy Secretary ensure the Department collects lessons learned from NOAA’s GEMS implementation and incorporates those lessons into plans and procedures for the NIST and EDA implementations.