As a result, we recommended that OMB 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. Selected Agencies Have Potentially Duplicative Investments; DOD and DOE Need to Do More to Address Them

Although the Departments of Defense, Energy, and Homeland Security  utilize various processes to prevent and reduce investment in duplicative  programs and systems, potentially duplicative IT investments exist. Further complicating agencies’ ability to identify and address duplicative  investments is miscategorization of investments within agencies. Even with such investment review processes, of the 810 investments we  reviewed, we identified 37 potentially duplicative investments at DOD  and DOE within three FEA categories (Human Resource Management,  Information and Technology Management, and Supply Chain   These investments account for about $1.2 billion in total  Management).IT spending for fiscal years 2007 through 2012. We also identified four DOD  Navy personnel assignment investments—one system for officers, one for  enlisted personnel, one for reservists, and a general assignment  system—each of which is responsible for managing similar assignment  functions. We did not identify any potentially duplicative investments at DHS within  our sample; however, DHS has independently identified several  duplicative investments and systems. Officials from the three agencies reported that duplicative investments  exist for a number of reasons, including decentralized governance within  the departments and a lack of control over contractor facilities. Agencies Have Recently Initiated Plans to Address Potential Duplication in Many Investments, but Results Have Yet to Be Realized at DOD and DOE

DHS has taken action to improve its processes for identifying and  eliminating duplicative investments, which has produced tangible results. While these efforts could eventually yield results, DOD’s and DOE’s  initiatives have not yet led to the consolidation or elimination of  duplication. For example, while DOD provided us with documented  milestones—several of which have passed—for improving the  Department of the Navy’s IT investment review processes, officials did  not provide us with any examples of duplicative investments that they had  consolidated or eliminated. These investments account for about $1.2 billion in total IT  spending for fiscal years 2007 through 2012. Without demonstrating the progress of efforts to identity  and eliminate duplicative investments, DOD and DOE will be unable to  provide assurance that they are avoiding investment in unnecessary  systems. Similarly, until DOD, DOE, and DHS, correctly categorize their  investments, they are limiting their ability to identify opportunities to  consolidate or eliminate duplicative investments. Recommendations for Executive Action

To better ensure agencies avoid investing in duplicative investments, we  recommend that the Secretary of Defense direct the CIO to take the  following two actions: utilize existing transparency mechanisms, such as the IT Dashboard,  to report on the results of the department’s efforts to identify and  eliminate, where appropriate, each potentially duplicative investment  we have identified, as well as any other duplicative investments; and  correct the miscategorizations for the DOD investments we identified  and ensure that investments are correctly categorized in agency  submissions. DOE generally agreed  with our first recommendation and disagreed with parts of our second  recommendation. We used this analysis to select for review  three of the agencies with the highest number of IT investments—the  Departments of Defense (DOD), Energy (DOE), and Homeland Security  (DHS).
Why GAO Did This Study

The federal government spends billions of dollars on information technology (IT) each year, with such investments accounting for at least $79 billion in fiscal year 2011. Given the size of these investments, it is important that federal agencies avoid duplicative investments when possible to ensure the most efficient use of resources. GAO has previously reported on initiatives under way to address potentially duplicative IT investmentsi.e., investments providing similar functions across the government. GAO was asked to review the extent to which potentially duplicative IT investments exist within three categories at selected agencies (the Departments of Defense (DOD), Energy (DOE), and Homeland Security (DHS)) and actions these agencies are taking to address them. To accomplish this, GAO analyzed budget data on agency IT investments, reviewed agency information related to efforts to address duplication, and interviewed agency officials.

What GAO Found

Although the Departments of Defense (DOD) and Energy (DOE) use various investment review processes to identify duplicative investments, GAO found that 37 of its sample of 810 investments were potentially duplicative. These investments account for about $1.2 billion in total information technology (IT) spending for fiscal years 2007 through 2012. For example, GAO identified four DOD Navy personnel assignment investmentsone system for officers, one for enlisted personnel, one for reservists, and a general assignment systemeach of which is responsible for managing similar functions. While GAO did not identify any potentially duplicative investments at the Department of Homeland Security (DHS) within its sample, DHS officials have independently identified several duplicative investments and systems.
DOD and DOE officials offered a variety of reasons for the potential duplication, such as decentralized governance and a lack of control over certain facilities. Further complicating agencies ability to identify and eliminate duplicative investments is that investments are, in certain cases, misclassified by function. Until agencies correctly categorize their investments, they cannot be confident that their investments are not duplicative.
DHS has taken action to improve its processes for identifying and eliminating duplicative investments. For example, through reviewing portfolios of IT investments, DHS has identified much, and eliminated some, duplicative functionality in certain investments. Additionally, DOD and DOE have recently initiated plans to address potential duplication in many of the investments GAO identified, which include consolidating or eliminating systems. While these efforts may eventually yield results, they have not yet led to the elimination of duplication. For example, while DOD and DOE have specific plans to improve their IT investment review processes, officials did not provide examples of duplicative investments that had been consolidated or eliminated. Until DOD and DOE demonstrate progress on these efforts, the agencies will be unable to provide assurance that they are avoiding investment in unnecessary systems.

What GAO Recommends

GAO recommends that DOD and DOE report on the progress of efforts to identify and eliminate duplication, where appropriate. GAO is also recommending that DOD, DOE, and DHS correct misclassifications of investments. DOD and DHS agreed with the recommendations. DOE generally agreed with the first recommendation, but disagreed with parts of the second recommendation regarding the number of misclassified investments. However, GAO believes the number is accurate.