Better Managing IT to Achieve Benefits and Control Costs
A major challenge for the federal government is managing its massive investment in information technology (IT)—currently more than $70 billion annually.
- GAO’s reports have repeatedly shown that agencies and the government as a whole face challenges in effectively planning and managing their IT investments.
- To help ensure that investments of public resources are justified and that public resources are wisely invested, OMB has been using a Management Watch List as part of the budget cycle to help oversee the justification for and planning of agencies’ IT investments. Projects are put on the list if a detailed review of their business cases by OMB identifies weaknesses.
- To improve project oversight, OMB has been requiring agencies to identify high-risk IT projects (i.e., projects requiring attention from oversight authorities and the highest level of agency management based on criteria specified by OMB). Agencies are also required to submit quarterly reports on those high-risk projects experiencing performance shortfalls: That is, if they (1) have unclear cost, schedule, and performance goals; (2) have cost and schedule variances exceeding 10 percent; (3) do not have a qualified project manager; or (4) are duplicative of other projects.
- As of July 2008, OMB and federal agencies had identified approximately 413 IT projects—totaling at least $25.2 billion in expenditures for fiscal year 2008—as being poorly planned, poorly performing, or both.
^ Back to topWhat Needs to Be Done
OMB has recently taken steps to improve the identification and oversight of the Management Watch List and high-risk projects, including publicly disclosing reasons for placement on the Management Watch List and clarifying high-risk project criteria. However, more needs to be done by the agency to fully address recommendations GAO has previously made. Specifically, OMB needs to
- continue to use the Management Watch List to prioritize the projects needing follow-up action and to keep reporting to Congress on management areas needing attention;
- identify the deficiencies (i.e., performance shortfalls) associated with the high-risk projects, so that OMB and others can better analyze the reasons projects are performing poorly, take corrective actions, and track these projects on a governmentwide basis.
^ Back to topKey Reports
- Information Technology: OMB and Agencies Need to Improve Planning, Management, and Oversight of Projects Totaling Billions of Dollars
- GAO-08-1051T, July 31, 2008
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 50 pages) Accessible Text
- Information Technology: Agencies and OMB Should Strengthen Processes for Identifying and Overseeing High Risk Projects
- GAO-06-647, June 15, 2006
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 76 pages) Accessible Text Recommendations (HTML)
- Information Technology: OMB Can Make More Effective Use of Its Investment Reviews
- GAO-05-276, April 15, 2005
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 20 pages) Accessible Text Recommendations (HTML)
