Review of Debt Management Collection System 2 (DMCS2) Implementation

We found that FSA could not ensure that the original DMCS2 contractor, delivered a fully functional system, because FSA did not develop an adequate plan, did not ensure that the contractor met milestones, did not hold the contractor accountable for missed milestones, and did not ensure that system fixes were independently verified. We shared our findings with FSA during the course of the audit and FSA addressedthe findings by incorporating fixes in its contract with its new DMCS2 contractor. The corrective actions provide a methodology that, ifproperly implemented, increases the likelihood DMCS2 system deficiencies will be identified and corrected timely.