However, as we have previously  reported, these investments too often result in failed projects that incur  cost overruns and schedule slippages, while contributing little to mission- related outcomes. In addition, FITARA states that OMB is to require in its annual IT capital  planning guidance that covered agency CIOs certify that IT investments  are adequately implementing incremental development, as defined in  capital planning guidance issued by OMB. 3. Agencies Reported That Most of Their Major Software Development Investments Were Certified as Having Adequate Incremental Development, but Continue to Face Challenges and Identify Benefits

Agencies reported to OMB through the IT Dashboard that more than half  of their major software development investments were certified by the  CIO as implementing adequate incremental development as of August  2016. These challenges related to inefficient governance  processes; procurement delays; the lack of stable, prioritized  requirements; and organizational and cultural changes associated with  the transition from a traditional software methodology to an incremental  methodology. Nevertheless, officials from 21 agencies reported that the  certification process was beneficial because they used the information  obtained during the process to assist with management oversight of major  IT investments, including identifying investments that could be using a  more effective incremental approach and using lessons learned to  improve the agency’s incremental processes. However, OMB issued its new fiscal year 2019  guidance in August 2017, which addressed the weaknesses we identified. However, since  the law was enacted in December 2014, OMB has taken three different  approaches to address this reporting requirement. However, a number of responses  for agency investments were incorrectly reported and it will be critical that  agencies continue to improve the accuracy of investment data reported  on the IT Dashboard. (Recommendation 5)
The Attorney General of the United States should ensure that the CIO of  Justice establishes an agency-wide policy and process for the CIO’s  certification of major IT investments’ adequate use of incremental  development, in accordance with OMB’s guidance on the implementation  of FITARA, and confirm that it includes: a description of the CIO’s role in  the certification process; a description of how CIO certification will be  documented; and a definition of incremental development and time  frames for delivering functionality, consistent with OMB guidance. Of the 17 agencies to which we made  recommendations, 11 agencies agreed with our recommendations, 1  agency partially agreed, and 5 agencies did not state whether they  agreed or disagreed with the recommendations. The agency also provided comments related to various challenges  discussed in the report. However, we noted  that the fiscal year 2018 guidance differed from the guidance issued in  the other two fiscal years in that it did not clearly establish how  agency CIOs were to demonstrate compliance with FITARA’s  certification of adequate incremental development provision. Appendix III: Analysis of Federal Agency Chief Information Officer Incremental Development Certification Policies

	Table 6 shows our analysis regarding whether the agency had policies and processes that clearly defined the Chief Information Officer (CIO) certification process for the adequate use of incremental development, including: (1) describing the CIO’s role in the certification process; (2) describing how CIO certification is to be documented; (3) having a definition of incremental development in the policy consistent with Office of Management and Budget (OMB) guidance; and (4) having time frames for delivering functionality in the policy consistent OMB guidance.
Why GAO Did This Study

Investments in federal IT too often result in failed projects that incur cost overruns and schedule slippages. Recognizing the severity of issues related to government-wide IT management, Congress enacted federal IT acquisition reform legislation in December 2014. Among other things, the law states that OMB require in its annual IT capital planning guidance that CIOs certify that IT investments are adequately implementing incremental development.
GAO was asked to review agencies' use of incremental development. This report addresses the number of investments certified by agency CIOs as implementing adequate incremental development and any reported challenges, and whether agencies' CIO certification policies and processes were in accordance with FITARA. GAO analyzed data for major IT investments in development, as reported by 24 agencies, and identified their reported challenges and use of certification information. GAO also reviewed the 24 agencies' policies and processes for the CIO certification of incremental development and interviewed OMB staff.

What GAO Found

Agencies reported that 62 percent of major information technology (IT) software development investments were certified by the agency Chief Information Officer (CIO) for implementing adequate incremental development in fiscal year 2017, as required by the Federal IT Acquisition Reform Act (FITARA) as of August 2016. However, a number of responses for the remaining investments were incorrectly reported due to agency error. Officials from 21 of the 24 agencies in GAO's review reported that challenges hindered their ability to implement incremental development, which included: (1) inefficient governance processes; (2) procurement delays; and (3) organizational changes associated with transitioning from a traditional software methodology that takes years to deliver a product, to incremental development, which delivers products in shorter time frames. Nevertheless, agencies reported that the certification process was beneficial because they used the information from the process to assist with identifying investments that could more effectively use an incremental approach, and using lessons learned to improve the agencies' incremental processes.
As of August 2017, only 4 of the 24 agencies had clearly defined CIO incremental development certification policies and processes that contained: descriptions of the role of the CIO in the process; how the CIO's certification will be documented; and included definitions of incremental development and time frames for delivering functionality consistent with Office of Management and Budget (OMB) guidance (see figure).
In addition, OMB's fiscal year 2018 capital planning guidance did not establish how agency CIOs are to make explicit statements to demonstrate compliance with FITARA's incremental provisions, while the 2017 guidance did. However, OMB's fiscal year 2019 guidance provides clear direction on reporting incremental certification and is a positive step in addressing this issue.

What GAO Recommends

GAO is making 19 recommendations to 17 agencies, including 3 to improve reporting accuracy and 16 to update or establish certification policies. Eleven agencies agreed with GAO's recommendations, 1 partially agreed, and 5 did not state whether they agreed or disagreed. OMB disagreed with several of GAO's conclusions, which GAO continues to believe are valid, as discussed in the report.