In recent years, OMB e-government initiatives have fostered the  establishment of centralized systems across the government. As part  of the annual budget, OMB publishes a report on IT spending for the  federal government representing a compilation of exhibit 53 data  submitted by the 26 agencies. More recently, in June 2009, to further improve the transparency into and  oversight of agencies’ IT investments, OMB publicly deployed a website,  known as the IT Dashboard, which replaced its Management Watch List  and High-Risk List. Key Federal Agencies Plan to Spend Almost $79 Billion on 7,248 IT Investments in Fiscal Year 2011

As of July 2011, the 26 federal agencies that submit information to the IT  Dashboard planned to spend about $78.8 billion on 7,248 IT investments  in fiscal year 2011. The IT Dashboard Does Not Include All Federal IT Investments

OMB often refers to the federal government’s approximately $79 billion  annual investment in IT; however, the Dashboard does not provide data  for all federal agencies. It also does not include information from the  legislative or judicial branch agencies. In their fiscal year 2011 submissions, agencies reported the greatest  number of IT investments in the information and technology management  category (1,536 investments), followed by supply chain management (781  investments), human resources management (661 investments), and  financial management (580 investments). OMB’s Guidance on Reporting IT Investments Does Not Ensure Complete Reporting or Facilitate Identifying Duplicative Investments

The guidance that OMB provides to agencies on how to report on their IT  investments does not ensure complete reporting or fully facilitate the  identification of duplicative investments. For example, 5 agencies reported that they include all  research and development systems, and 5 do not. This limits OMB’s ability to identify potentially  duplicative investments both within and across agencies because similar  investments may be organized under different functions. Specifically,  in implementing OMB’s guidance, 6 of the 10 agencies we evaluated  exclude systems that fit the definition of an IT investment. According to OMB guidance, each investment needs to be  mapped to a single functional category within the FEA. OMB and Federal Agencies Have Taken Steps to Address Potentially Duplicative Investments, but Results to Date Are Mixed and More Remains to Be Done

OMB and federal agencies have undertaken several initiatives to address  potentially duplicative IT investments. For example, OMB has efforts  under way to consolidate similar functions through its LOB and FEA  initiatives and has eliminated duplicative systems identified during its  TechStat sessions. In addition, several of the agencies we evaluated  have established guidance for ensuring new investments are not  duplicative with existing systems. However, most of OMB’s recent  initiatives have not yet demonstrated results. However, several of the agencies do not routinely assess legacy systems  to determine if they are duplicative. Until agencies routinely assess their entire IT portfolios  (including both developmental and operational systems) to identify and  reduce duplicative systems, such duplication will continue to exist. Recommendations for Executive Action

To ensure that IT investments are adequately identified and categorized,  we recommend that the Director of OMB take the following four actions:  specify which executive branch agencies are included when  discussing the annual federal IT investment portfolio; clarify guidance to federal agencies in reporting on their IT  investments by specifying whether certain types of systems, such as  those in research and development and space systems, should be  included; revise guidance to federal agencies on categorizing IT investments to  ensure that the categorizations are clear and allow agencies to  choose secondary categories, where applicable, which will aid in  identifying potentially duplicative investments; and require federal agencies to report the steps they take to ensure that  their IT investments are not duplicative as part of their annual budget  and IT investment submissions. Appendix I: Objectives, Scope, and Methodology

Our objectives were to (1) describe the current number and types of  information technology (IT) investments reported by federal agencies on  the IT Dashboard, (2) evaluate the adequacy of the Office of  Management and Budget’s (OMB) guidance to federal agencies in  reporting on IT investments, and (3) evaluate efforts to identify and  address potentially duplicative investments.
Why GAO Did This Study

The federal government invests heavily in information technology (IT). In recent years, the Office of Management and Budget (OMB) has made efforts to improve the transparency, oversight, and management of the federal government's IT investments. More recently, in June 2009, OMB deployed the IT Dashboard, a Web-based system that provides detailed performance information on federal IT investments. GAO was asked to (1) describe the current number and types of IT investments reported by federal agencies on the IT Dashboard, (2) evaluate the adequacy of OMB's guidance to federal agencies in reporting on IT investments, and (3) evaluate efforts to identify and address potentially duplicative investments. To address these objectives, GAO analyzed data from the IT Dashboard, analyzed 10 federal agencies' investment guidance and reports, and interviewed agency officials.

What GAO Found

According to data reported on OMB's IT Dashboard in July 2011, 26 federal agencies plan to spend almost $79 billion on 7,248 IT investments in fiscal year 2011. OMB often uses the $79 billion figure in referring to annual federal investments in IT; however, it is important to note that this figure does not reflect the spending of the entire federal government. It does not include IT investments by 58 independent executive branch agencies, including the Central Intelligence Agency, or by the legislative or judicial branches. A closer look at the $79 billion in investments for the 26 agencies reveals that (1) the expenditures are split almost evenly between major and nonmajor (in terms of cost, risk, and other factors) investments; (2) about two-thirds of the expenditures are for systems in an operational state, while about one-third of the expenditures provide for the development of new systems; and (3) there are hundreds of investments providing similar functions across the federal government. For example, agencies reported 1,536 information and technology management investments, 781 supply chain management investments, and 661 human resource management investments. OMB provides guidance to agencies on how to report on their IT investments, but this guidance does not ensure complete reporting or facilitate the identification of duplicative investments. Specifically, agencies differ on what investments they include as an IT investment; for example, 5 of the 10 agencies GAO reviewed consistently consider investments in research and development systems as IT, and 5 do not. As a result, the 26 federal agencies' annual IT investments are likely greater that the $79 billion reported in fiscal year 2011. In addition, OMB's guidance to federal agencies requires each investment to be mapped to a single functional category. This limits OMB's ability to identify duplicative investments both within and across agencies because similar investments may be organized into different categories. OMB and federal agencies have undertaken several initiatives to address potentially duplicative IT investments. For example, OMB has efforts under way to consolidate similar functions through its "line of business" initiatives and has reduced the scope of three duplicative systems identified during executive reviews of high-priority projects. In addition, most of the agencies GAO reviewed established guidance for ensuring new investments are not duplicative with existing systems. However, most of OMB's recent initiatives have not yet demonstrated results. Further, agencies do not routinely assess operational systems to determine if they are duplicative. Until agencies routinely assess their IT investment portfolios to identify and reduce duplicative systems, the government's current situation of having hundreds of similar IT investments will continue to exist.

What GAO Recommends

GAO is recommending that OMB clarify its reporting on IT investments and improve its guidance to agencies on identifying and categorizing IT investments. OMB did not agree that further efforts were needed to clarify reporting. Given the importance of continued improvement in OMB's reporting and guidance, GAO maintains its recommendations are warranted.