Information technology is fundamental to the day to day functioning of our government, from managing benefits at the Department of Veterans Affairs to helping first responders at the Department of Homeland Security. According to the Administration's FY2008 budget request, about $65 billion is spent on over 6,500 IT projects government-wide. This is more than the entire budget of the Department of Homeland Security. These massive investments must be carefully planned and managed to ensure the government runs effectively and that taxpayer dollars are not squandered.

Oversight of these projects is very difficult. There are few reliable measures now available to assess the performance and management of IT investments. While the Office of Management and Budget maintains a" high risk" list and an "at risk" list, additional performance data on IT projects is difficult to come by. Without this essential information, neither OMB nor Congress can adequately assess the value of these projects. Additional information is also needed to fully understand the risk associated with a project. Agencies should not be overly risk averse, but they can minimize risk through better management.

Agencies often rely on contractors to provide IT goods and services, making oversight even more difficult. As my Subcommittee on Oversight of Government Management has heard from several witnesses, contract oversight is increasingly difficult with an overburdened federal acquisition workforce. Agencies need to commit to planning for their own specific IT needs, rather than relying on contractors to make the decisions for them.

There needs to be greater emphasis on utilizing off the shelf products, or products already in use by the government. Testimony by DHS's Chief Financial Officer at a hearing in July underscored this point, when DHS decided to consolidate their several existing financial management systems rather than developing a new one from scratch. It is my hope that the Office of Management and Budget will take a more active leadership role in providing guidance and assistance so that agencies avoid unwarranted or duplicative IT projects. At the same time, OMB must not shy away from using their budgetary authority to make course corrections or halt failing projects when necessary.

I also want to emphasize the critical role played by individual agency Chief Information Officers, who are critical to this IT planning and management. The federal government must recruit CIOs who have experience and expertise in the IT field, in addition to strong management skills. Unfortunately, according to a 2004 GAO report, retaining CIOs is a challenge. Past and current CIO's admitted that they should be in place for at least three to five years to be effective, though the average tenure was only two. Agencies must confront the challenge of maintaining experienced CIO's, despite fierce competition with the often more lucrative private sector.

While cutting edge IT will always be a risky investment, costly problems can be avoided through better management. Again, Mr. Chairman, I want to thank you for holding this hearing, and for your and Senator Coburn's continued attention and dedication to this important issue.