OMB’s Dashboard Is Intended to Provide Visibility into the Performance of Federal IT Investments

In June 2009, OMB deployed a public Web site to further improve the  transparency and oversight of agencies’ IT investments. As a result, the ratings were based on outdated  information. It  disagreed with our recommendation to improve how it reflects current  performance in cost and schedule ratings, but more recently made  changes to Dashboard calculations to address this while also noting  challenges in comprehensively evaluating cost and schedule data for  these investments. CIOs at Selected Agencies’ Rated Majority of IT Investments as Low or Moderately Low Risk

As of August 2013, CIOs at the eight selected agencies rated 198 of their  244 major investments listed on the Dashboard as low risk or moderately  low risk. Of the remaining 46 investments, 41 were rated medium risk,  and 5 were rated high risk or moderately high risk. Additionally, the total number of investments that the eight agencies  reported on the Dashboard has varied over time, which impacts the  number of investments receiving CIO ratings (see fig. For example, as part of the most recent  budget process, Energy officials reported several of Energy’s  supercomputer investments as facilities rather than IT, thus removing  those investments from the Dashboard and accounting for a portion of the  recent decrease in investments. Most CIO Ratings Are Consistent with Reported Investment Risk

Of the 80 selected investments at the eight agencies we reviewed, 53 of  the CIO ratings were consistent with the risks portrayed in the supporting  investment performance documents, 20 were partially consistent, and 7  VA investments were inconsistent. Specifically, Justice downgraded its Law Enforcement  Wireless Communications investment from major to non-major as part  of its annual budget process in July 2012, but the Dashboard did not  reflect the change until April 2013. Of the eight investments receiving a red rating in 2012, the agencies  reviewed seven using tools such as TechStat sessions,investment review boards, and other high-level reviews. Each of these  resulted in action items intended to improve performance. Recommendations for Executive Action

To better ensure that the Dashboard provides meaningful ratings and  reliable investment data, we are recommending that the Director of OMB  direct the Federal CIO to make accessible regularly updated portions of  the public version of the Dashboard (such as CIO ratings) independent of  the annual budget process. OMB believes that the existing guidance is appropriate and  does not have plans to review it. First, OMB  noted that up-to-date Dashboard information is available to the  agencies and OMB during the budget development period, who use it  as a tool for investment oversight and decision making. Specifically, Commerce stated that  although it is no longer reporting publicly on its satellite ground system  investments through the Dashboard, neither the department CIO nor  OMB has relinquished its oversight role. Appendix I: Objectives, Scope, and Methodology

Our objectives for this engagement were to (1) characterize the Chief  Information Officer (CIO) ratings for selected federal agencies’  information technology (IT) investments as reported on the Dashboard  over time, (2) determine the extent to which selected agencies’ CIO  ratings are consistent with reported investment risk, and (3) determine the  extent to which selected agencies are addressing at-risk investments. We presented our results to each agency and the  Office of Management and Budget (OMB) and solicited their input,  explanations for the results, and additional corroborating documentation,  where appropriate. To accomplish the second objective, we selected the top 10 major  investments at each of the eight selected agencies (for a total of 80  investments), with the highest reported IT spending in fiscal year 2012. of investment risk and performance (such as cost and schedule  variances), which could impact the success of the associated investment. We reviewed the  processes used to address these investments and interviewed relevant  officials.
Why GAO Did This Study

OMB launched the Dashboard in June 2009 as a public Web site that reports performance for major IT investments--on which the federal government plans to invest over $38 billion in fiscal year 2014. The Dashboard is to provide transparency for these investments and to facilitate public monitoring of them. After its launch, OMB began using it to identify at-risk investments.
This report (1) characterizes the CIO ratings for selected federal agencies' IT investments as reported on the Dashboard over time, (2) determines the extent to which selected agencies' CIO ratings are consistent with investment risk, and (3) determines the extent to which selected agencies are addressing at-risk investments. GAO selected the eight agencies with the most reported major IT spending in fiscal year 2012 (excluding those GAO recently reviewed) and selected 10 investments at each agency. GAO reviewed the investments' documentation, compared it to the CIO ratings, and reviewed processes used for the highest-risk investments. GAO also interviewed appropriate officials.

What GAO Found

As of August 2013, the Chief Information Officers (CIO) at the eight selected agencies rated 198 of their 244 major information technology (IT) investments listed on the Federal IT Dashboard (Dashboard) as low risk or moderately low risk, 41 as medium risk, and 5 as high risk or moderately high risk. However, the total number of investments reported by these agencies has varied over time, which impacts the number of investments receiving CIO ratings. For example, Energy reclassified several of its supercomputer investments from IT to facilities and Commerce decided to reclassify its satellite ground system investments. Both decisions resulted in the removal of the investments from the Dashboard, even though the investments were clearly IT. In addition, the Office of Management and Budget (OMB) does not update the public version of the Dashboard as the President's budget request is being created. As a result, the public version of the Dashboard was not updated for 15 of the past 24 months, and so was not available as a tool for investment oversight and decision making.
Of the 80 investments reviewed, 53 of the CIO ratings were consistent with the investment risk, 20 were partially consistent, and 7 were inconsistent. While two agencies' CIO ratings were entirely consistent, other agencies' ratings were inconsistent for a variety of reasons, including delays in updating the Dashboard and how investment performance was tracked. For example, the Department of Justice downgraded an investment in July 2012, but the Dashboard was not updated to reflect this until April 2013. Further, the Social Security Administration resets investment cost and schedule performance baselines annually, an approach that increases the risk of undetected cost or schedule variances that will impact investment success.
Of the eight investments that were at highest risk in 2012, seven were reviewed by their agencies using tools such as TechStat sessions--evidence-based reviews intended to improve investment performance and other high-level reviews. Each of these resulted in action items intended to improve performance. The final investment was scheduled to have a TechStat, but instead, according to department officials, a decision was made to modify its program cost and schedule commitments to better reflect the investment's actual performance.

What GAO Recommends

GAO recommends that OMB make Dashboard information available independent of the budget process, and that agencies appropriately categorize IT investments and address identified weaknesses. OMB neither agreed nor disagreed. Six agencies generally agreed with the report or had no comments and two others did not agree, believing their categorizations were appropriate. GAO continues to believe its recommendations remain valid, as discussed.