However, as we have described in numerous reports,  although a variety of best practice documentation exists to guide their  successful acquisition, federal IT projects too frequently incur cost  overruns and schedule slippages while contributing little to mission- related outcomes. IT Acquisition Best Practices Have Been Identified by Industry and Government and Promoted by Legislation

IT acquisition best practices have been developed by both industry and  the federal government. For example, the Software Engineering Institute  has developed highly regarded and widely used guidance on best  practices, such as requirements development and management, risk  management, configuration management, validation and verification, and  project monitoring and control. In  the federal government, GAO’s own research in IT management best  practices led to the development of the Information Technology  Investment Management Framework, which describes essential and  complementary IT investment management disciplines, such as oversight  of system development and acquisition management, and organizes them  into a set of critical processes for successful investments. Critical Factors Underlying Successful Major Acquisitions

Subsequent to the launch of the Dashboard and the TechStat reviews,  and to help the federal agencies address the well-documented acquisition  challenges they face, in 2011, we reported on nine common factors  critical to the success of IT investment acquisitions. Specifically, we  reported that department officials from seven agencies each identified a  successful investment acquisition, in that they best achieved their  respective cost, schedule, scope, and performance goals. Among these seven IT investments, officials identified nine factors as  critical to the success of three or more of the seven. Officials from all seven selected investments cited active engagement  with program stakeholders—individuals or groups (including, in some  cases, end users) with an interest in the success of the acquisition—as a  critical factor to the success of those investments. Agency officials stated  that stakeholders, among other things, reviewed contractor proposals  during the procurement process, regularly attended program  management office sponsored meetings, were working members of  integrated project teams, and were notified of problems and concerns as  soon as possible. Additionally, officials from six of the seven selected investments indicated  that the knowledge and skills of the program staff were critical to the  success of the program. Finally, officials from five of the seven selected investments identified  having the end users test and validate the system components prior to  formal end user acceptance testing for deployment as critical to the  success of their program. Further, these factors support OMB’s objective of improving the  management of large-scale IT acquisitions across the federal  government, and wide dissemination of these factors could complement  OMB’s efforts. Overall, the implementation  of our numerous recommendations regarding key aspects of IT  acquisition management can help OMB and federal agencies continue to  improve the efficiency and transparency with which IT investments are  managed, in order to ensure that the federal government’s substantial  investment in IT is being wisely spent.
Why GAO Did This Study

The federal government reportedly plans to spend at least $82 billion on IT in fiscal year 2014. Given the scale of such planned outlays and the criticality of many of these systems to the health, economy, and security of the nation, it is important that federal agencies successfully acquire these systemsthat is, ensure that the systems are acquired on time and within budget and that they deliver the expected benefits and functionality.
However, GAO has previously reported and testified that federal IT projects too frequently incur cost overruns and schedule slippages while contributing little to mission-related outcomes. To help improve these efforts, OMB has launched several initiatives intended to improve the oversight and management of IT acquisitions. In addition, during the past several years GAO has issued multiple reports and testimonies on federal initiatives to acquire and improve the management of IT investments.
As discussed with committee staff, GAO is testifying today on IT best practices, with a focus on the results of its report issued on the critical success factors of major IT acquisitions. To prepare this statement, GAO drew on previously published work.

What GAO Found

Information technology (IT) acquisition best practices have been developed by both industry and the federal government. For example, the Software Engineering Institute has developed highly regarded and widely used guidance on best practices, such as requirements development and management, risk management, validation and verification, and project monitoring and control. GAO's own research in IT management best practices led to the development of the Information Technology Investment Management Framework, which describes essential and complementary IT investment management disciplines, such as oversight of system development and acquisition management, and organizes them into a set of critical processes for successful investments.
GAO also recently reported on the critical factors underlying successful IT acquisitions. Officials from federal agencies identified seven investments that were deemed successfully acquired in that they best achieved their respective cost, schedule, scope, and performance goals. Agency officials identified nine common factors that were critical to the success of three or more of the seven investments.
Officials from all seven investments cited active engagement with program stakeholders as a critical factor to the success of those investments. Agency officials stated that stakeholders regularly attended program management office sponsored meetings; were working members of integrated project teams; and were notified of problems and concerns as soon as possible.
Additionally, officials from six investments indicated that knowledge and skills of the program staff, and support from senior department and agency executives were critical to the success of their programs. Further, officials from five of the seven selected investments identified having the end users test and validate the system components prior to formal acceptance testing for deployment as critical to the success of their program. These critical factors support the Office of Management and Budget's (OMB) objective of improving the management of large-scale IT acquisitions across the federal government; wide dissemination of these factors could complement OMB's efforts.

What GAO Recommends

GAO has made numerous recommendations to OMB and agencies on key aspects of IT acquisition management, as well as the oversight and management of those investments.