	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 budgeted. 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. Implementing FITARA Can Improve Agencies’ Management of IT

FITARA was intended to improve covered agencies’ acquisitions of IT  and enable Congress to monitor agencies’ progress and hold them  accountable for reducing duplication and achieving cost savings. 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. 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 March 2018, OMB and  agencies had fully implemented 476 (or about 59 percent) of the 803  recommendations. However, agencies would be better positioned to realize  billions in cost savings and additional management improvements, if they  addressed the numerous recommendations we have made aimed at  improving data center consolidation, increasing transparency via OMB’s  IT Dashboard, implementing incremental development, managing  software licenses, reviewing IT acquisitions, implementing key IT  workforce activities, and addressing aging legacy systems. 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. Further, of the 24 agencies, 5—the Department of  Commerce and the Environmental Protection Agency, National Science  Foundation, Small Business Administration, and U.S. Agency for  International Development—reported plans to fully meet their applicable  targets by the end of fiscal year 2018; 13 reported plans to meet some,  but not all, of the targets; 4 reported that they did not plan to meet any  targets; and 2 did not have a basis to report planned optimization  milestones because they do not report having any agency-owned data  centers. 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. In total, from May 2014 through November 2017, we made 42  recommendations to OMB and agencies to improve their implementation  of incremental development. In addition, we identified five leading  software license management practices, and the agencies’  implementation of these practices varied. As of March 2018, 95 of the recommendations had not been  implemented. Table 2 reflects the extent to which agencies implemented  recommendations in these areas. Agencies Need to Ensure That IT Acquisitions Are Reviewed and Approved by Chief Information Officers

FITARA includes a provision to enhance covered agency CIOs’ authority  through, among other things, requiring agency heads to ensure that CIOs  review and approve IT contracts. Many of the selected agencies that did not identify  these IT acquisitions did not follow OMB guidance. One agency agreed with  one recommendation, but disagreed with another. Implementing Key IT Workforce Planning Activities Can Help Ensure Acquisition Skill Gaps Are Addressed

An area where agencies can improve their ability to acquire IT is  workforce planning. In November 2016, we reported that IT workforce  planning activities, when effectively implemented, can facilitate the  success of major acquisitions. Agencies Need to Address Aging Legacy Systems

IT investments across the federal government are becoming increasingly  obsolete. Specifically, in May 2016, we reported that many agencies were  using systems which had components that were, in some cases, at least  50 years old. Table 4 provides examples of legacy systems across the federal  government that agencies report are 30 years old or older and use  obsolete software or hardware, and identifies those that do not have  specific plans with time frames to modernize or replace these  investments. Most agencies have taken steps to improve the management of IT  acquisitions and operations by implementing key initiatives, including data  center consolidation, efforts to increase transparency via OMB’s IT  Dashboard, incremental development, management of software licenses,  approval of IT acquisitions, implementation of IT workforce key practices,  and addressing legacy IT; and they have continued to address  recommendations we have made over the past several years. However,  additional improvements are needed, and further efforts by OMB and  federal agencies to implement our previous recommendations would  better position them to improve the management of IT acquisitions and  operations.
Why GAO Did This Study

The federal government plans to invest almost $96 billion in 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. In December 2014, Congress and the President enacted FITARA, aimed at improving covered agencies' acquisitions of IT. Further, in February 2015, GAO added improving the management of IT acquisitions and operations across government to its high-risk list.
This statement summarizes agencies' progress in improving the management of IT acquisitions and operations. Among others, GAO summarized its published reports on (1) data center consolidation, (2) incremental software development practices, (3) IT acquisitions, (4) IT workforce, and (5) legacy IT.

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, to include (1) data center consolidation, (2) implementation of incremental development practices, (3) approval of IT acquisitions, (4) implementation of key IT workforce practices, and (5) addressing aging legacy IT systems. As of March 2018, the agencies had fully implemented about 59 percent of the approximately 800 related recommendations that GAO made during 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 codified and expanded by a law commonly referred to as the Federal Information Technology Acquisition Reform Act (FITARA). GAO has since noted that, while this initiative could potentially save the government billions of dollars, weaknesses exist in areas such as optimization and OMB's reporting on related cost savings. Accordingly, GAO has made 160 recommendations to OMB and agencies to improve the initiative; however, about half of GAO's recommendations have not yet been implemented.
Implementing incremental development . OMB has emphasized the need for agencies to deliver investments in smaller increments to reduce risk and deliver capabilities more quickly. Further, GAO has issued reports highlighting actions needed by OMB and agencies to improve their implementation of incremental development. In these reports, GAO made 42 related recommendations, but the majority of GAO's recommendations have not yet been addressed.
Approval of IT acquisitions . OMB's FITARA implementation guidance required covered agencies' chief information officers (CIO) to review and approve IT acquisition plans. In January 2018, GAO reported that many agencies' CIOs were not reviewing and approving acquisition plans, as required by OMB. GAO made 39 recommendations to improve the review and approval of IT acquisitions, but they have not yet been implemented by the agencies.
Implementation of key IT workforce practices . Effective IT workforce planning can help agencies improve their ability to acquire IT. In November 2016, GAO reported on agencies' IT workforce planning activities. GAO noted that five selected agencies had not fully implemented key workforce planning activities and recommended that they do so, but the agencies have not yet addressed the recommendations.
Addressing aging legacy IT systems. Legacy IT investments across the federal government are becoming increasingly obsolete and consuming an increasing amount of IT dollars. In May 2016, GAO reported that many agencies were using systems which had components that were, in some cases, at least 50 years old. GAO noted, however, that several agencies did not have specific plans with time frames to modernize or replace these investments. GAO recommended that 12 agencies plan to modernize or replace legacy systems; all of which have not yet been implemented.

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. Among other recommendations, GAO made recommendations to improve the oversight and execution of the data center consolidation initiative, incremental development policies, the review and approval of IT acquisitions, implementation of key workforce planning activities, and aging federal IT systems. Most agencies agreed with GAO's recommendations. 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.