However, as we have previously reported,  investments in federal IT too often result in failed projects that incur cost  overruns and schedule slippages, while contributing little to the desired  mission-related outcomes. FITARA Can Improve Agencies’ Acquisition of IT

Recognizing the importance of issues related to government-wide  management of IT, FITARA was enacted in December 2014. The law was  aimed at improving agencies’ acquisitions of IT and could help enable  Congress to monitor agencies’ progress and hold them accountable for  reducing duplication and achieving cost savings. Specifically, between fiscal years  2010 and 2015, we made 803 recommendations to OMB and federal  agencies to address shortcomings in IT acquisitions and operations,  including many to improve the implementation of the recent initiatives and  other government-wide, cross-cutting efforts. For example, as of December 2016, OMB  and the agencies had fully implemented 366 (or about 46 percent) of the  803 recommendations. In addition, in fiscal year 2016, we made 202 new recommendations, thus  further reinforcing the need for OMB and agencies to address the  shortcomings in IT acquisitions and operations. Opportunities Exist to Improve Acquisition of IT

Given the magnitude of the federal government’s annual IT budget, which  is projected to be more than $89 billion in fiscal year 2017, it is important  that agencies leverage all available opportunities to ensure that IT  investments are made in the most effective manner possible. However, in our November 2016 report, we determined that five agencies  that we selected for in-depth analysis had not fully implemented key  workforce planning steps and activities. In addition, none of these agencies had fully assessed their  workforce competencies and staffing needs regularly or established  strategies and plans to address gaps in these areas. The weaknesses identified were due, in part, to these agencies lacking  comprehensive policies that required such activities, or failing to apply the  policies to IT workforce planning. OMB generally  agreed with this recommendation. IT Dashboard Can Improve the Transparency into and Oversight of Major IT Acquisitions

To facilitate transparency across the government in acquiring and  managing IT investments, OMB established a public website—the IT  Dashboard—to provide detailed information on major investments at 26  agencies, including ratings of their performance against cost and  schedule targets. Among other things, agencies are to submit ratings  from their CIOs, which, according to OMB’s instructions, should reflect the  level of risk facing an investment relative to that investment’s ability to  accomplish its goals. Most  agencies have agreed with our recommendations. Most recently, in June 2016, we determined that 13 of the 15 agencies  selected for in-depth review had not fully considered risks when rating  their major investments on the IT Dashboard. Specifically, our  assessments of risk for 95 investments at 15 selected agencies  matched the CIO ratings posted on the Dashboard 22 times, showed  more risk 60 times, and showed less risk 13 times. Seven agencies’ rating processes did not focus on active risks. Increasing the Use of Incremental Development Practices Can Help Agencies Better Achieve Cost, Schedule, and Performance Goals for IT Acquisitions

OMB has emphasized the need to deliver investments in smaller parts, or  increments, in order to reduce risk, deliver capabilities more quickly, and  facilitate the adoption of emerging technologies. In 2010, it called for  agencies’ major investments to deliver functionality every 12 months and,  since 2012, every 6 months. Subsequently, in August 2016, we reported that agencies had not fully  implemented incremental development practices for their software  development projects. Specifically, we noted that, as of August 31, 2015,  22 federal agencies had reported on the IT Dashboard that 300 of 469  active software development projects (approximately 64 percent) were  planning to deliver usable functionality every 6 months for fiscal year  2016, as required by OMB guidance. Accordingly, we recommended that four agencies establish a policy and  process for the certification of major IT investments’ adequate use of  incremental development. In addition to implementing FITARA, applying key  IT workforce planning practices could improve the agencies’ ability to  assess and address gaps in knowledge and skills that are critical to the  success of major acquisitions. Information Technology Reform: Agencies Need to Increase Their Use of  Incremental Development Practices. High-Risk Series: An Update.
Why GAO Did This Study

The federal government is projected to invest more than $89 billion on IT in fiscal year 2017. Historically, these investments have frequently failed, incurred cost overruns and schedule slippages, or contributed little to mission-related outcomes. Accordingly, in December 2014, IT reform legislation was enacted, aimed at improving agencies' acquisitions of IT. Further, in February 2015, GAO added improving the management of IT acquisitions and operations to its high-risk list.
This statement focuses on the status of federal efforts in improving the acquisition of IT. Specifically, this statement summarizes GAO's prior work primarily published between June 2013 and February 2017 on (1) key IT workforce planning activities, (2) risk levels of major investments as reported on OMB's IT Dashboard, and (3) implementation of incremental development practices, among other issues.

What GAO Found

The Federal Information Technology Acquisition Reform Act (FITARA) was enacted in December 2014 to improve federal information technology (IT) acquisitions and can help federal agencies reduce duplication and achieve cost savings. Successful implementation of FITARA will require the Office of Management and Budget (OMB) and federal agencies to take action in a number of areas identified in the law and as previously recommended by GAO.
IT workforce planning. GAO identified eight key IT workforce planning practices in November 2016 that are critical to ensuring that agencies have the knowledge and skills to successfully acquire IT, such as analyzing the workforce to identify gaps in competencies and staffing. However, GAO reported that the five selected federal agencies it reviewed had not fully implemented these practices. For example, none of these agencies had fully assessed their competency and staffing needs regularly or established strategies and plans to address gaps in these areas. These weaknesses were due, in part, to agencies lacking comprehensive policies that required these practices. Accordingly, GAO made specific recommendations to the five agencies to address the practices that were not fully implemented. Four agencies agreed and one partially agreed with GAO's recommendations.
IT Dashboard. To facilitate transparency into the government's acquisition of IT, OMB's IT Dashboard provides detailed information on major investments at federal agencies, including ratings from Chief Information Officers (CIO) that should reflect the level of risk facing an investment. GAO reported in June 2016 that 13 of the 15 agencies selected for in-depth review had not fully considered risks when rating their investments on the IT Dashboard. In particular, of the 95 investments reviewed, GAO's assessments of risks matched the CIO ratings 22 times, showed more risk 60 times, and showed less risk 13 times. Several factors contributed to these differences, such as CIO ratings not being updated frequently and using outdated risk data. GAO recommended that agencies improve the quality and frequency of their ratings. Most agencies agreed with GAO's recommendations.
Incremental development. An additional reform initiated by OMB has emphasized the need for federal agencies to deliver investments in smaller parts, or increments, in order to reduce risk and deliver capabilities more quickly. Specifically, since 2012, OMB has required investments to deliver functionality every 6 months. In August 2016, GAO determined that, for fiscal year 2016, 22 agencies had reported on the IT Dashboard that 64 percent of their software development projects would deliver useable functionality every 6 months. However, GAO determined that only three of seven agencies selected for in-depth review had policies regarding the CIO certifying IT investments' adequate implementation of incremental development, as required by OMB. GAO recommended, among other things, that four agencies improve their policies for CIO certification of incremental development. Most of these agencies agreed with the recommendations.

What GAO Recommends

Between fiscal years 2010 and 2015, GAO made 803 recommendations to OMB and federal agencies to address shortcomings in IT acquisitions and operations. The significance of these recommendations contributed to the addition of this area to GAO's high-risk list. As of December 2016, OMB and the agencies had fully implemented 366 (or about 46 percent) of the 803 recommendations. In fiscal year 2016, GAO made 202 new recommendations, thus further reinforcing the need for OMB and agencies to address the shortcomings GAO has identified.