Summary: The federal government, with its dependence on large-scale, complex computer systems to deliver vital public services, faces an especially enormous and difficult task in overcoming the Year 2000 computing problem. Unless adequately addressed, Year 2000 problems could seriously disrupt key federal operations--from national defense to benefits payments to air traffic control. Although the government's preparedness to deal with the Year 2000 problem has improved markedly during the past two years, significant challenges remain and time is running out. Complete and thorough Year 2000 testing is essential to ensure that new or modified systems are able to process dates correctly and that technology-dependent services operate reliably after the turn of the century. Moreover, adequate business continuity and contingency plans must be in place throughout government. The scope of the Year 2000 problem extends well beyond federal operations, however, affecting both the U.S. and the global economies. In concert with GAO's recommendations, the President's Council on Year 2000 Conversion has been reaching out to the private sector, state and local governments, and other countries to increase awareness of the problem. The Council has also begun to address the readiness of specific economic sectors, including power, water, telecommunications, health care, and emergency services. At this juncture, however, a comprehensive picture of the nation's readiness is lacking. Much more needs to be done--both domestically and internationally--to determine readiness and prepare contingency plans.
