	Background

According to the President’s budget, the federal government plans to  invest more than $96 billion for IT in fiscal year 2018—the largest amount  ever. 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. Federal data center consolidation initiative (FDCCI). Enhanced transparency and improved risk management. IT Acquisitions and Operations Identified by GAO as a High-Risk Area

In February 2015, we introduced a new government-wide high-risk area,  Improving the Management of IT Acquisitions and Operations. This area  highlighted several critical IT initiatives in need of additional congressional  oversight, including (1) reviews of troubled projects; (2) efforts to increase  the use of incremental development; (3) efforts to provide transparency  relative to the cost, schedule, and risk levels for major IT investments; (4)  reviews of agencies’ operational investments; (5) data center  consolidation; and (6) efforts to streamline agencies’ portfolios of IT  investments. Specifically, from fiscal years 2010  through 2015, we made 803 recommendations to OMB and federal  agencies to address shortcomings in IT acquisitions and operations. For example, as of November 2017, OMB  and agencies had fully implemented 452 (or about 56 percent) of the 803  recommendations. However, in a series of reports that we issued from July 2011 through  August 2017, we noted that, while data center consolidation could  potentially save the federal government billions of dollars, weaknesses  existed in several areas, including agencies’ data center consolidation  plans, data center optimization, and OMB’s tracking and reporting on  related cost savings. In these reports, we made a matter for  Congressional consideration, and a total of 160 recommendations to  OMB and 24 agencies to improve the execution and oversight of the  initiative. Most agencies and OMB agreed with our recommendations or  had no comments. As of November 2017, 84 of these recommendations  remained open. Over the past 6 years, we have issued a series of reports about the  Dashboard that noted both significant steps OMB has taken to enhance  the oversight, transparency, and accountability of federal IT investments  by creating its Dashboard, as well as concerns about the accuracy and  reliability of the data. In total, we have made 47 recommendations to  OMB and federal agencies to help improve the accuracy and reliability of  the information on the Dashboard and to increase its availability. Most  agencies agreed with our recommendations or had no comments. As of  November 2017, 25 recommendations remained open. Agencies Need to Increase Their Use of Incremental Development Practices

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. Four of the six agencies agreed with our recommendations or had no  comments, one agency partially agreed, and the remaining agency  disagreed with the recommendations. Specifically, we noted that, as of August 31, 2015,  22 federal agencies had reported on the 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. The Department of the Treasury did  not comment on its recommendation. In total, from May 2014 through November 2017, we have made 42  recommendations to OMB and agencies to improve their implementation  of incremental development. As of November 2017, 34 of our  recommendations remained open. Effective  management of these licenses can help avoid purchasing too many  licenses, which can result in unused software, as well as too few licenses,  which can result in noncompliance with license terms and cause the  imposition of additional fees. In May 2014, we reported on federal agencies’ management of software  licenses and determined that better management was needed to achieve  significant savings government-wide. Most agencies generally agreed with the recommendations or had no  comments. As of November 2017, 112 of the recommendations had not  been implemented. Most agencies have taken steps to improve the management of IT  acquisitions and operations by implementing key FITARA initiatives,  including data center consolidation, efforts to increase transparency via  OMB’s IT Dashboard, incremental development, and management of  software licenses; and they have continued to address recommendations  we have made over the past several years. In addition, we will  continue to monitor agencies’ implementation of our previous  recommendations.
Why GAO Did This Study

The federal government plans to invest almost $96 billion on IT in fiscal year 2018. Historically, these investments have too often failed, incurred cost overruns and schedule slippages, or contributed little to mission-related outcomes. Accordingly, in December 2014, Congress enacted FITARA, 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 summarizes agencies' progress in improving the management of IT acquisitions and operations. It is based on GAO's prior and recently published reports on (1) data center consolidation, (2) risk levels of major investments as reported on OMB's IT Dashboard, (3) implementation of incremental development practices, and (4) management of software licenses.

What GAO Found

The Office of Management and Budget (OMB) and federal agencies have taken steps to improve the management of information technology (IT) acquisitions and operations through a series of initiatives, and as of November 2017, had fully implemented about 56 percent of the approximately 800 related GAO recommendations made between fiscal years 2010 through 2015. However, important additional actions are needed.
Consolidating data centers . OMB launched an initiative in 2010 to reduce data centers, which was reinforced by the Federal Information Technology Acquisition Reform Act (FITARA) in 2014. However, in a series of reports that GAO issued over the past 6 years, it noted that, while data center consolidation could potentially save the federal government billions of dollars, weaknesses existed in several areas, including agencies' data center consolidation plans, data center optimization, and OMB's tracking and reporting on related cost savings. These reports contained a matter for Congressional consideration, and a total of 160 recommendations to OMB and 24 agencies, to improve the execution and oversight of the initiative. Most agencies and OMB agreed with the recommendations or had no comments. As of November 2017, 84 of the recommendations remained open.
Enhancing transparency . OMB's IT Dashboard provides information on major investments at federal agencies, including ratings from Chief Information Officers that should reflect the level of risk facing an investment. Over the past 6 years, GAO has issued a series of reports about the Dashboard that noted both significant steps OMB has taken to enhance the oversight, transparency, and accountability of federal IT investments by creating its Dashboard, as well as concerns about the accuracy and reliability of the data. In total, GAO has made 47 recommendations to OMB and federal agencies to help improve the accuracy and reliability of the information on the Dashboard and to increase its availability. Most agencies agreed with the recommendations or had no comments. As of November 2017, 25 of these recommendations remained open.
Implementing incremental development . OMB has emphasized the need for agencies to deliver investments in smaller parts, or increments, in order to reduce risk and deliver capabilities more quickly. Since 2012, OMB has required investments to deliver functionality every 6 months. Further, GAO has issued reports highlighting additional actions needed by OMB and agencies to improve their implementation of incremental development. In these reports, GAO made 42 recommendations. Most agencies agreed or did not comment on the recommendations. As of November 2017, 34 of the recommendations remained open.
Managing software licenses . Effective management of software licenses can help avoid purchasing too many licenses that result in unused software. In May 2014, GAO reported that better management of licenses was needed to achieve savings, and made 136 recommendations to improve such management. Most agencies generally agreed with the recommendations or had no comments. As of November 2017, 112 of the recommendations remained open.

What GAO Recommends

From fiscal years 2010 through 2015, GAO made about 800 recommendations to OMB and federal agencies to address shortcomings in IT acquisitions and operations, and included recommendations to improve the oversight and execution of the data center consolidation initiative, the accuracy and reliability of the Dashboard, incremental development policies, and software license management. Most agencies agreed with GAO's recommendations and had taken some actions or had no comments. In addition, from fiscal year 2016 to present, GAO has made more than 200 new recommendations in this area. GAO will continue to monitor agencies' implementation of these recommendations.