Homeland Security Department officials have "right sized" an enterprise resource planning project that's come under increasing Congressional pressure, said a top DHS official on Sept. 30.

Jane Holl Lute, the department's second highest ranking official, told a Senate panel that the Transformation and Systems Consolidation's concept of operations has been modified to "a more risk based approach."

The right-sizing includes tailoring "its initial applications by component and by need," she added while testifying before a Senate Homeland Security and Governmental Affairs subcommittee. Lute said DHS officials presented their new plans in September to an advisory board created by the Office of Management and Budget in June concurrent with a White House announcement that agencies should stop development on financial management systems worth more than $20 million. TASC is one of the 20 affected projects.

"We intend to stay consistent with the OMB guidelines that they've put in place," Lute added.

House Homeland Security Committee Chairman Bennie Thompson (D-Miss.) sent a letter on Sept. 16 to OMB criticizing TASC and urging OMB "to consider the grave concerns about TASC that have been repeatedly raised by the DHS OIG, the GAO and this Committee."

In her prepared written testimony, Lute appears to have outlined a TASC transition strategy, writing that "based on successful migration of a large component to TASC (to be announced), DHS will assess the critical needs of other DHS components to determine appropriate next steps."

Meanwhile, DHS is moving to eliminate contractors from its workforce, Lute said. A December 2009 GAO report (.pdf) criticized the department for over-reliance on contractors to define TASC requirements. As of August 28, DHS has eliminated 2,074 contractors and decreased by 27 percent--nearly $1 billion--spending on service contracts when compared to 2009, Hull said in her prepared testimony. The department should axe another 1,426 contractor positions by the end of this calendar year, Hull also said.

For more:
- go to the hearing webpage, or go directly to the webcast
- download Lute's written statement (.pdf)

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