Summary: The cost to deal with the Year 2000 crisis totaled $7.5 billion at 24 major federal agencies, according to a recent quarterly status report to the Office of Management and Budget. This estimate has more than tripled since February 1997. Of the 24 major agencies, only seven reported that they separately tracked actual costs of Year 2000 activities and five indicated that they tracked some actual costs and estimated others. The estimated Year 2000 costs reported by the 24 major federal agencies for fiscal year 1999 have risen from about $1.1 billion in February 1998 to $2.8 billion in February 1999. Beginning late last year, the agencies requested emergency funds to cover some of these costs. The civil agencies plan to use the money for various activities, including renovation, validation, and implementation of systems; replacement of personal computers; outreach; and independent verification and validation. The Defense Department plans to use the funds for testing, operational evaluations, and contingency planning. For fiscal year 2000, the major agencies estimate that Year 2000 activities will cost about $1.1 billion. Only one major agency--the Department of Health and Human Services--anticipates Year 2000 costs beyond those projected in its budget submission.
