OMB and the Federal CIO Established the Federal Data Center Consolidation Initiative

Concerned about the size of the federal data center inventory and the  potential to improve the efficiency, performance, and the environmental  footprint of federal data center activities, OMB, under the direction of the  Federal CIO, established FDCCI in February 2010. Agencies are still required to update their data center inventories by  the end of June 2013 and report quarterly on consolidation progress. Consolidation of Federal Data Centers is Under Way, but Initiativewide Cost Savings Have Not Been Determined

		Progress Made on Data Center Closures, but Size of Facilities Is Not Reported

The 24 agencies have collectively made progress towards OMB’s data  center consolidation goal to close 40 percent, or approximately 1,253 of  the 3,133 data centers, by the end of 2015. The weaknesses in oversight are  due, in part, to OMB not ensuring that assigned responsibilities are being  executed. Improved oversight could better position OMB to assess  progress against its cost savings goal and minimize agencies’ risk of not  realizing anticipated cost savings. However, the Task Force has not provided oversight of the agency  consolidation peer review process. In addition, the  Task Force did not provide agencies with guidance for executing their  peer reviews, including information regarding the specific aspects of  agency plans to be reviewed and the process for providing feedback. However, the GSA FDCCI Program Management Office has not executed  its responsibilities related to analyzing agencies’ inventories and plans  and reviewing these documents for errors. OMB Has Partially Reported Agencies’ Consolidation Progress, but Has Not Approved Agency Plans or Tracked Cost Savings

After establishing FDCCI in 2010, OMB has taken several actions to  manage the initiative and to facilitate and oversee agencies’ consolidation  progress. In this regard, OMB launched a  publically available electronic dashboard to track and report on agencies’  consolidation progress and, starting in fiscal year 2012, required agencies  to report quarterly via an online portal on their completed and planned  data center consolidation efforts. This  is important because, in July 2011 and July 2012, we reported that  agencies’ consolidation plans had significant weaknesses and that nearly  all were incomplete. Until  OMB reviews and approves agencies’ consolidation plans on the basis of  their completeness, OMB and the FDCCI agencies may remain unaware  of any gaps between these plans and OMB’s requirements, furthering the  risk that agencies will move ahead with consolidation efforts that do not  fully support OMB’s anticipated cost savings goal. Additionally, OMB has not reported on agencies’ progress against its key  performance goal of achieving $3 billion in cost savings by the end of  2015. As previously  mentioned, OMB has not yet started to track agencies’ progress against  its cost savings goal because the agency is working to identify a  consistent and repeatable method for tracking cost savings. Specifically, we are recommending that the  Director of OMB direct the Federal CIO to  track and annually report on key data center consolidation  performance measures, such as the size of data centers being closed  and cost savings to date; extend the time frame for achieving cost savings related to data  center consolidation beyond the current 2015 horizon, to allow time to  meet the initiative’s planned cost savings goal; and establish a mechanism to ensure that the established responsibilities  of designated data center consolidation oversight organizations are  fully executed, including responsibility for the documentation and  oversight of the peer review process, the review of agencies’ updated  consolidation inventories and plans, and approval of updated  consolidation plans. Appendix I: Objectives, Scope, and Methodology

Our objectives were to (1) evaluate agencies’ reported progress against  the Office of Management and Budget’s (OMB) planned consolidation  and cost savings goals and (2) assess the extent to which the oversight  organizations put in place by OMB for the Federal Data Center  Consolidation Initiative (FDCCI) are adequately performing oversight of  agencies’ efforts to meet these goals. In addition, we interviewed OMB staff about their  efforts to track consolidation cost savings. To assess the extent to which the oversight organizations put in place by  OMB for FDCCI are adequately performing oversight of agency  consolidation efforts, we analyzed OMB memoranda,Center Consolidation Task Force Charter, and other related  documentation to determine the roles and responsibilities of key oversight  organizations, including OMB, the General Services Administration  FDCCI Program Management Office, and the Data Center Consolidation  Task Force.
Why GAO Did This Study

In 2010, as focal point for information technology management across the government, OMBs Federal Chief Information Officer launched the Federal Data Center Consolidation Initiativean effort to consolidate the growing number of federal data centers. In July 2011 and July 2012, GAO evaluated 24 agencies progress and reported that nearly all of the agencies had not completed a data center inventory or consolidation plan and recommended that they do so.
As requested, GAO reviewed federal agencies continuing efforts to consolidate their data centers. This report (1) evaluates agencies' reported progress against OMBs planned consolidation and cost savings goals and (2) assesses the extent to which the oversight organizations put in place by OMB for the Federal Data Center Consolidation Initiative are adequately performing oversight of agencies' efforts to meet these goals. GAO assessed agencies progress against OMBs goals, analyzed the execution of oversight roles and responsibilities, and interviewed OMB, GSA, and Data Center Consolidation Task Force officials about their efforts to oversee agencies consolidation efforts.

What GAO Found

The 24 agencies participating in the Federal Data Center Consolidation Initiative (FDCCI) made progress towards the Office of Management and Budget's (OMB) goal to close 40 percent, or 1,253 of the 3,133 total federal data centers, by the end of 2015, but OMB has not measured agencies' progress against its other goal of $3 billion in cost savings by the end of 2015. Agencies closed 420 data centers by the end of December 2012, and have plans to close an additional 548 to reach 968 by December 2015--285 closures short of OMB's goal. OMB has not determined agencies' progress against its cost savings goal because, according to OMB staff, the agency has not determined a consistent and repeatable method for tracking cost savings. This lack of information makes it uncertain whether the $3 billion in savings is achievable by the end of 2015. Until OMB begins tracking and reporting on performance measures such as cost savings, it will be limited in its ability to oversee agencies' progress against key initiative goals. Additionally, extending the horizon for realizing planned cost savings could provide OMB and data center consolidation stakeholders with input and information on the benefits of consolidation beyond OMB's initial goal.
Pursuant to OMB direction, three organizations--the Data Center Consolidation Task Force, the General Services Administration (GSA) Program Management Office, and OMB--are responsible for federal data center consolidation oversight activities; while most activities are being performed, several weaknesses exist. Specifically,
While the Data Center Consolidation Task Force has established several initiatives to assist agencies in their consolidation efforts, such as holding monthly meetings to facilitate communication among agencies, it has not adequately overseen its peer review process for improving the quality of agencies' consolidation plans. For example, the Task Force did not provide agencies with guidance for conducting peer reviews and did not provide oversight to ensure that all agencies exchanged plans.
The GSA Program Management Office has collected agencies' quarterly data center closure updates and made the information publically available on an electronic dashboard for tracking consolidation progress, but it has not fully performed other oversight activities, such as conducting analyses of agencies' inventories and plans.
OMB has implemented several initiatives to track agencies' consolidation progress, such as establishing requirements for agencies to update their plans and inventories yearly and to report quarterly on their consolidation progress. However, the agency has not approved the plans on the basis of their completeness or reported on progress against its goal of $3 billion in cost savings.
The weaknesses in oversight of the data center consolidation initiative are due, in part, to OMB not ensuring that assigned responsibilities are being executed. Improved oversight could better position OMB to assess progress against its cost savings goal and minimize agencies risk of not realizing anticipated cost savings.

What GAO Recommends

GAO is recommending that OMBs Federal Chief Information Officer track and report on key performance measures, extend the time frame for achieving planned cost savings, and improve the execution of important oversight responsibilities. OMB agreed with two of GAOs recommendations and plans to evaluate the remaining recommendation related to extending the time frame.