Information Technology: Acquisitions, Contracts and Legacy Systems

Description

Information systems are critical to the health, economy, and security of the nation. To support these systems, the federal government invested over $90 billion in information technology (IT) in fiscal year 2016. However, prior IT expenditures have too often produced failed projects. The objective of Chapter 1 is to determine the extent to which federal agencies identify IT contracts and how much is invested in them, and federal agency CIOs are reviewing and approving IT acquisitions. The federal government spends tens of billions of dollars each year on IT products and services. Competition is a key component to achieving the best return on investment for taxpayers. Chapter 2 examines the extent that agencies used non-competitive contracts for IT, the reasons for using non-competitive contracts for selected IT procurements, the extent to which IT procurements at selected agencies were bridge contracts, and the extent to which IT procurements were in support of legacy systems. The federal government plans to spend over $90 billion in fiscal year 2019 on IT. About 80 percent of this amount is used to operate and maintain existing IT investments, including aging (also called legacy) systems. As they age, legacy systems can be more costly to maintain, more exposed to cybersecurity risks, and less effective in meeting their intended purpose. Chapter 3 reviews federal agencies' legacy systems. This chapter identifies the most critical federal legacy systems in need of modernisation and evaluates agency plans for modernising them, and identifies examples of legacy system modernisation initiatives that agencies considered successful. Contents Preface Chapter 1 Information Technology: Agencies Need to Involve Chief Information Officers in Reviewing Billions of Dollars in Acquisitions( Abbreviations Why GAO Did This Study What GAO Recommends What GAO Found Background Agencies Are to Follow Federal Requirements for Acquisitions Federal Law Establishes Agency IT Management Responsibilities OMB Established Guidance for Agencies to Implement FITARA Agencies Identified $14.7 Billion in IT Obligations, but Did Not Identify an Additional $4.5 Billion Most Agency CIOs Are Not Reviewing and Approving IT Acquisitions in Accordance with OMB’s Requirements Conclusion Recommendations for Executive Action Agency Comments and Our Evaluation List of Committees Appendix I: Objectives, Scope, and Methodology Appendix II: IT-Related Product and Service Codes Appendix III: Estimated Total Fiscal Year 2016 IT Obligations by Agency Appendix IV: Agency Acquisition Processes Used to Review and Approve IT Acquisitions Appendix V: Details on Selected IT Acquisitions Appendix VI: Comments from the Department of Education Appendix VII: Comments from the Department of Energy Appendix VIII: Comments from the Department of Housing and Urban Development Appendix IX: Comments from the Department of the Interior Appendix X: Comments from the Department of Labor Appendix XI: Comment from the Department of State Appendix XII: Comments from the Department of Veterans Affairs Appendix XIII: Comments from the Environmental Protection Agency Appendix XIV: Comments from the National Aeronautics and Space Administration Appendix XV: Comments from the Nuclear Regulatory Commission Appendix XVI: Comments from the Office of Personnel Management Appendix XVII: Comments from the Small Business Administration Appendix XVIII: Comments from the Social Security Administration Appendix XIX: Comments from the U.S. Agency for International Development Chapter 2 Information Technology: Agencies Need Better Information on the Use of Noncompetitive and Bridge Contracts( Abbreviations Why GAO Did This Study What GAO Recommends What GAO Found Background Awarding Contracts and Orders Noncompetitively Bridge Contracts Agencies Obligated More than $10 Billion Annually for Information Technology on Noncompetitively Awarded Contracts and Orders, but Unreliable Data Obscures Full Picture IT Contract Obligations Totaled More than $50 Billion Annually Agencies Reported Obligating More than $15 Billion on Noncompetitive Contracts for IT Annually, but Full Extent of Noncompetitive Dollars Is Not Known Due to Unreliable Data Agencies Cited That Only One Contractor Could Meet the Need or Small Business Requirements as Most Common Reasons for Awarding Noncompetitive Contracts An Estimated Eight Percent of Fiscal Year 2016 IT Noncompetitive Contracts and Orders Were Bridges, and Agencies Have Difficulty Managing Them An Estimated Eight Percent of IT Noncompetitive Contracts and Orders in Fiscal Year 2016 Were Bridge Contracts Agencies Face Continued Challenges with Oversight of Bridge Contracts Officials Frequently Cited Acquisition Planning Challenges as Necessitating the Use of a Bridge Contract In the Absence of Government-wide Guidance, Others Have Taken Steps to Define Bridge Contracts New Definition Narrows Scope of Legacy IT Noncompetitive Contracts and Orders to About Seven Percent Conclusion Recommendations for Executive Action Agency Comments and Our Evaluation List of Requesters Appendix I: Objectives, Scope, and Methodology Selection Methodology for Generalizable Sample Appendix II: Comments from the Department of Defense Appendix III: Comments from the Department of Health and Human Services Appendix IV: Accessible Data Data Tables Chapter 3 Information Technology: Agencies Need to Develop Modernization Plans for Critical Legacy Systems( Abbreviations Why GAO Did This Study What GAO Recommends What GAO Found Background GAO Has Reported on the Need to Improve Oversight of Legacy IT Congress and the Executive Branch Have Made Efforts to Modernize Federal IT GAO Identified 10 Critical Federal Legacy Systems; Agencies Often Lack Complete Plans for Their Modernization The Majority of Agencies Lack Complete Plans for Modernizing the Most Critical Legacy Systems Agencies Reported a Variety of IT Modernization Successes Conclusion Recommendations for Executive Action Agency Comments and Our Evaluation List of Requesters Appendix I: Objectives, Scope, and Methodology Appendix II: The 24 Chief Financial Officers Act Agencies’ Most Critical Legacy Systems in Need of Modernization Appendix III: Profiles of the 10 Most Critical Legacy Systems in Need of Modernization System 1 System 2 System 3 System 4 System 5 System 6 System 7 System 8 System 9 System 10 Appendix IV: Comments from the Department of Education Appendix V: Comments from the Department of Health and Human Services Appendix VI: Comments from the Department of Homeland Security Appendix VII: Comments from the Internal Revenue Service Appendix VIII: Comments from the Office of Personnel Management Appendix IX: Comments from the Small Business Administration Appendix X: Comments from the Social Security Administration Appendix XI: Comments from the Department of Housing and Urban Development Appendix XII: Comments from the U.S. Agency for International Development Index Blank Page