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Office of Management and Budget

August 6, 2007
Contact: OMB Communications, 202-395-7254


Washington, DC – Agencies are more effectively managing their Information Technology investments, according to a report released today by the Office of Management and Budget (OMB). According to the updated information on the Management Watch List and High Risk List, Federal agencies have shown progress in their efforts of how they plan, manage, and monitor their IT investments. These lists can be found at:

"We are always looking for ways to strengthen our ability to effectively manage our IT investments," said Karen Evans, Administrator E-Government and Information Technology. "Today’s report shows agencies have made progress on fixing identified weaknesses and effectively managing their IT investments. Our focus and priority remains on working with the agencies to ensure their projects meet their established goals on time and on budget."

Status of Management Watch List
As of August 2007, there were 136 business cases remaining on the Management Watch List, compared to 346 in February 2007 when the President released his FY2008 budget request. Agencies were able to adequately address deficiencies and weaknesses identified in these 210 investments by providing and completing additional documentation and/or planning activities. The 136 projects remaining on the Management Watch List represent approximately $8.6 billion in projected IT investment for FY 2008, a decrease of $1.1 billion compared to last quarter’s report.

Status of High Risk List
The High Risk List includes 553 projects that were determined to be high risk due to different factors, such as the complexity or the level of importance, compared to the 477 projects previously reported with release of the President’s FY08 Budget in February. The increase on the High Risk List is attributable to increased management oversight reported by agencies – in other words, we have increasingly better information about the projects. The 553 projects on this list represent approximately $12.9 billion in IT spending for FY08.

Background on the Two Lists
Under the Clinger-Cohen Act of 1996, agencies are required to submit business plans for IT investments to OMB. If the agency’s investment plan contains one or more planning weaknesses, it is placed on OMB’s Management Watch List and targeted for follow-up action to correct potential problems prior to execution. In August 2005, OMB established a High Risk List for IT projects, that complements the Management Watch List, to ensure agencies and programs were meeting their intended goals and achieving results. Projects on the High Risk List are those requiring special attention from the highest level of agency management, but aren't necessarily "at risk" of failure.