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United States Government Accountability Office: 
GAO: 

Report to Congressional Requesters: 

November 2011: 

IT Dashboard: 

Accuracy Has Improved, and Additional Efforts Are Under Way to Better 
Inform Decision Making: 

GAO-12-210: 

GAO Highlights: 

Highlights of GAO-12-210, a report to congressional requesters. 

Why GAO Did This Study: 

Each year the federal government spends billions of dollars on 
information technology (IT) investments. Given the importance of 
program oversight, the Office of Management and Budget (OMB) 
established a public website, referred to as the IT Dashboard, that 
provides detailed information on about 800 federal IT investments, 
including assessments of actual performance against cost and schedule 
targets (referred to as ratings). According to OMB, these data are 
intended to provide both a near-real-time and historical perspective 
of performance. In the third of a series of Dashboard reviews, GAO was 
asked to examine the accuracy of the Dashboard’s cost and schedule 
performance ratings. To do so, GAO compared the performance of eight 
major investments undergoing development from four agencies with large 
IT budgets (the Departments of Commerce, the Interior, and State, as 
well as the General Services Administration) against the corresponding 
ratings on the Dashboard, and interviewed OMB and agency officials. 

What GAO Found: 

Since GAO’s first report in July 2010, the accuracy of investment 
ratings has improved because of OMB’s refinement of the Dashboard’s 
cost and schedule calculations. Most of the Dashboard’s cost and 
schedule ratings for the eight selected investments were accurate; 
however, they did not sufficiently emphasize recent performance for 
informed oversight and decision making. 

* Cost ratings were accurate for four of the investments that GAO 
reviewed, and schedule ratings were accurate for seven. In general, 
the number of discrepancies found in GAO’s reviews has decreased. In 
each case where GAO found rating discrepancies, the Dashboard’s 
ratings showed poorer performance than GAO’s assessment. Reasons for 
inaccurate Dashboard ratings included missing or incomplete agency 
data submissions, erroneous data submissions, and inconsistent 
investment baseline information. In all cases, the selected agencies 
found and corrected these inaccuracies in subsequent Dashboard data 
submissions. Such continued diligence by agencies to report complete 
and timely data will help ensure that the Dashboard’s performance 
ratings are accurate. In the case of the General Services 
Administration, officials did not disclose that performance data on 
the Dashboard were unreliable for one investment because of an ongoing 
baseline change. Without proper disclosure of pending baseline 
changes, OMB and other external oversight bodies may not have the 
appropriate information needed to make informed decisions. 

* While the Dashboard’s cost and schedule ratings provide a cumulative 
view of performance, they did not emphasize current performance—-which 
is needed to meet OMB’s goal of reporting near-real-time performance. 
GAO’s past work has shown cost and schedule performance information 
from the most recent 6 months to be a reliable benchmark for providing 
a near-real-time perspective on investment status. By combining recent 
and historical performance, the Dashboard’s ratings may mask the 
current status of the investment, especially for lengthy acquisitions. 
GAO found that this discrepancy between cumulative and current 
performance ratings was reflected in two of the selected investments. 
For example, a Department of the Interior investment’s Dashboard cost 
rating indicated normal performance from December 2010 through March 
2011, whereas GAO’s analysis of current performance showed that cost 
performance needed attention for those months. If fully implemented, 
OMB’s recent and ongoing changes to the Dashboard, including new cost 
and schedule rating calculations and updated investment baseline 
reporting, should address this issue. These Dashboard changes could be 
important steps toward improving insight into current performance and 
the utility of the Dashboard for effective executive oversight. GAO 
plans to evaluate the new version of the Dashboard once it is publicly 
available in 2012. 

What GAO Recommends: 

GAO is recommending that the General Services Administration disclose 
on the Dashboard when one of its investments is in the process of a 
rebaseline. Since GAO previously recommended that OMB improve how it 
rates investments relative to current performance, it is not making 
further recommendations. The General Services Administration agreed 
with the recommendation. OMB provided technical comments, which GAO 
incorporated as appropriate. 

View [hyperlink, http://www.gao.gov/products/GAO-12-210] or key 
components. For more information, contact David A. Powner at (202) 512-
9286 or pownerd@gao.gov. 

[End of section] 

Contents: 

Letter: 

Background: 

Most Dashboard Ratings Were Accurate, but Did Not Emphasize Recent 
Performance: 

Conclusions: 

Recommendation for Executive Action: 

Agency Comments and Our Evaluation: 

Appendix I: Objective, Scope, and Methodology: 

Appendix II: Selected Investment Descriptions: 

Appendix III: Comments from the Department of Commerce: 

Appendix IV: Comments from the General Services Administration: 

Appendix V: GAO Contact and Staff Acknowledgments: 

Tables: 

Table 1: Assessment of Selected Investments' Cost and Schedule Ratings: 

Table 2: Causes of Inaccurate Ratings on the Dashboard: 

Table 3: Investment Management Details: 

Figures: 

Figure 1: Dashboard Cost and Schedule Ratings Scale: 

Figure 2: Overall Performance Ratings of Major IT Investments on the 
Dashboard: 

Abbreviations: 

CIO: chief information officer: 

GSA: General Services Administration: 

IT: information technology: 

OMB: Office of Management and Budget: 

[End of section] 

United States Government Accountability Office: 
Washington, DC 20548: 

November 7, 2011: 

Congressional Requesters: 

Billions of taxpayer dollars are spent on information technology (IT) 
investments each year; federal IT spending reported to the Office of 
Management and Budget (OMB) totaled approximately $79 billion in 
fiscal year 2011. During the past several years, we have issued 
multiple reports and testimonies and made numerous recommendations to 
OMB to improve the transparency, oversight, and management of the 
federal government's IT investments.[Footnote 1] In June 2009, OMB 
deployed a public website, known as the IT Dashboard, which provides 
detailed information on federal agencies' major IT investments, 
including assessments of actual performance against cost and schedule 
targets (referred to as ratings) for approximately 800 major federal 
IT investments.[Footnote 2] The Dashboard aims to improve the 
transparency and oversight of these investments. 

In July 2010, we completed our first review of the Dashboard and 
reported that the cost and schedule ratings were not always accurate 
because of limitations with OMB's calculations.[Footnote 3] We 
recommended that OMB report to Congress on the effect of its planned 
Dashboard calculation changes on the accuracy of performance 
information and provide guidance to agencies that standardizes 
activity reporting. 

In March 2011, we completed our second review of the Dashboard and 
again reported that the cost and schedule ratings were not always 
accurate. Specifically, this was due to weaknesses in agencies' 
practices and limitations with OMB's calculations.[Footnote 4] We 
recommended that selected agencies take steps to improve the accuracy 
and reliability of Dashboard information and that OMB improve how it 
rates investments relative to current performance and schedule 
variance. 

This is the third report in our series of Dashboard reviews and 
responds to your request that we examine the accuracy of the cost and 
schedule performance ratings on the Dashboard for selected 
investments. To accomplish this objective, we reviewed 4 agencies with 
large IT budgets--the Departments of Commerce, the Interior, and 
State, as well as the General Services Administration (GSA)--after 
excluding the 10 agencies included in the first two Dashboard reviews. 
[Footnote 5] The 4 agencies account for about 7 percent of IT spending 
for fiscal year 2011. We then selected eight major investments 
undergoing development, which represent about $486 million in total 
spending for fiscal year 2011. We analyzed monthly cost and schedule 
performance reports, program management documents, and operational 
analyses for the eight investments to assess program performance. We 
then compared our analyses of investment performance against the 
corresponding ratings on the Dashboard to determine if the ratings 
were accurate. Additionally, we interviewed officials from OMB and the 
agencies to obtain further information on their efforts to ensure the 
accuracy of the data used to rate investment performance on the 
Dashboard. We did not test the adequacy of the agency or contractor 
cost-accounting systems. Our evaluation of these cost data was based 
on the documentation the agencies provided. 

We conducted this performance audit from February 2011 to November 
2011 in accordance with generally accepted government auditing 
standards. Those standards require that we plan and perform the audit 
to obtain sufficient, appropriate evidence to provide a reasonable 
basis for our findings and conclusions based on our audit objective. 
We believe that the evidence obtained provides a reasonable basis for 
our findings and conclusions based on our audit objective. Further 
details of our objective, scope, and methodology are provided in 
appendix I. 

Background: 

Each year, OMB and federal agencies work together to determine how 
much the government plans to spend on IT investments and how these 
funds are to be allocated. In fiscal year 2011, government IT spending 
reported to OMB totaled approximately $79 billion. OMB plays a key 
role in helping federal agencies manage their investments by working 
with them to better plan, justify, and determine how much they need to 
spend on projects and how to manage approved projects. 

To assist agencies in managing their investments, Congress enacted the 
Clinger-Cohen Act of 1996, which requires OMB to establish processes 
to analyze, track, and evaluate the risks and results of major capital 
investments in information systems made by federal agencies and report 
to Congress on the net program performance benefits achieved as a 
result of these investments.[Footnote 6] Further, the act places 
responsibility for managing investments with the heads of agencies and 
establishes chief information officers (CIO) to advise and assist 
agency heads in carrying out this responsibility. The Clinger-Cohen 
Act strengthened the requirements of the Paperwork Reduction Act of 
1995, which established agency responsibility for maximizing value and 
assessing and managing the risks of major information systems 
initiatives.[Footnote 7] The Paperwork Reduction Act also requires 
that OMB develop and oversee policies, principles, standards, and 
guidelines for federal agency IT functions, including periodic 
evaluations of major information systems.[Footnote 8] Another key law 
is the E-Government Act of 2002, which requires OMB to report annually 
to Congress on the status of e-government.[Footnote 9] In these 
reports, referred to as Implementation of the E-Government Act 
reports, OMB is to describe the administration's use of e-government 
principles to improve government performance and the delivery of 
information and services to the public. 

To help carry out its oversight role, in 2003, OMB established the 
Management Watch List, which included mission-critical projects that 
needed to improve performance measures, project management, IT 
security, or overall justification for inclusion in the federal 
budget. Further, in August 2005, OMB established a High-Risk List, 
which consisted of projects identified by federal agencies, with the 
assistance of OMB, as requiring special attention from oversight 
authorities and the highest levels of agency management. 

Over the past several years, we have reported and testified on OMB's 
initiatives to highlight troubled IT projects, justify investments, 
and use project management tools.[Footnote 10] We have made multiple 
recommendations to OMB and federal agencies to improve these 
initiatives to further enhance the oversight and transparency of 
federal projects. Among other things, we recommended that OMB develop 
a central list of projects and their deficiencies and analyze that 
list to develop governmentwide and agency assessments of the progress 
and risks of the investments, identifying opportunities for continued 
improvement.[Footnote 11] In addition, in 2006 we also recommended 
that OMB develop a single aggregate list of high-risk projects and 
their deficiencies and use that list to report to Congress on progress 
made in correcting high-risk problems.[Footnote 12] As a result, OMB 
started publicly releasing aggregate data on its Management Watch List 
and disclosing the projects' deficiencies. Furthermore, OMB issued 
governmentwide and agency assessments of the projects on the 
Management Watch List and identified risks and opportunities for 
improvement, including in the areas of risk management and security. 

OMB's Dashboard Publicizes Investment Details and Performance Status: 

More recently, to further improve the transparency and oversight of 
agencies' IT investments, in June 2009, OMB publicly deployed a 
website, known as the IT Dashboard, which replaced the Management 
Watch List and High-Risk List. It displays federal agencies' cost, 
schedule, and performance data for the approximately 800 major federal 
IT investments at 27 federal agencies. According to OMB, these data 
are intended to provide a near-real-time perspective on the 
performance of these investments, as well as a historical perspective. 
Further, the public display of these data is intended to allow OMB; 
other oversight bodies, including Congress; and the general public to 
hold the government agencies accountable for results and progress. 

The Dashboard was initially deployed in June 2009 based on each 
agency's exhibit 53 and exhibit 300 submissions.[Footnote 13] After 
the initial population of data, agency CIOs have been responsible for 
updating cost, schedule, and performance fields on a monthly basis, 
which is a major improvement from the quarterly reporting cycle OMB 
previously used for the Management Watch List and High-Risk List. 

For each major investment, the Dashboard provides performance ratings 
on cost and schedule, a CIO evaluation, and an overall rating, which 
is based on the cost, schedule, and CIO ratings. As of July 2010, the 
cost rating is determined by a formula that calculates the amount by 
which an investment's total actual costs deviate from the total 
planned costs. Similarly, the schedule rating is the variance between 
the investment's planned and actual progress to date. Figure 1 
displays the rating scale and associated categories for cost and 
schedule variations. 

Figure 1: Dashboard Cost and Schedule Ratings Scale: 

[Refer to PDF for image: illustration] 

Normal: 
Variance from planned costs or schedule: 0-10%; 
Rating: 10-7. 

Needs attention: 
Variance from planned costs or schedule: 10-30%; 
Rating: 7-3. 

Significant concerns: 
Variance from planned costs or schedule: 30-50+%; 
Rating: 3-0. 

Source: GAO based on OMB's Dashboard. 

[End of figure] 

Each major investment on the Dashboard also includes a rating 
determined by the agency CIO, which is based on his or her evaluation 
of the performance of each investment. The rating is expected to take 
into consideration the following criteria: risk management, 
requirements management, contractor oversight, historical performance, 
and human capital. This rating is to be updated when new information 
becomes available that would affect the assessment of a given 
investment. 

Last, the Dashboard calculates an overall rating for each major 
investment. This overall rating is an average of the cost, schedule, 
and CIO ratings, with each representing one-third of the overall 
rating. However, when the CIO's rating is lower than both the cost and 
schedule ratings, the CIO's rating will be the overall rating. Figure 
2 shows the overall performance ratings of the 797 major investments 
on the Dashboard as of August 2011. 

Figure 2: Overall Performance Ratings of Major IT Investments on the 
Dashboard: 

[Refer to PDF for image: pie-chart] 

Normal: 67%; $22.7 billion; 536 investments; 
Needs attention: 29%; $16.1 billion; 228 investments; 
Significant concerns: 4%; $1.8 billion; 33 investments. 

Source: OMB’s Dashboard. 

[End of figure] 

OMB Has Taken Steps to Address Prior GAO Recommendations on Improving 
Dashboard Accuracy: 

We have previously reported that the cost and schedule ratings on 
OMB's Dashboard were not always accurate for selected agencies. 

* In July 2010, we reviewed investments at the Departments of 
Agriculture, Defense, Energy, Health and Human Services, and Justice, 
and found that the cost and schedule ratings on the Dashboard were not 
accurate for 4 of 8 selected investments and that the ratings did not 
take into consideration current performance; specifically, the ratings 
calculations factored in only completed activities.[Footnote 14] We 
also found that there were large inconsistencies in the number of 
investment activities that agencies report on the Dashboard. In the 
report, we recommended that OMB report on the effect of planned 
changes to the Dashboard and provide guidance to agencies to 
standardize activity reporting. We further recommended that the 
selected agencies comply with OMB's guidance to standardize activity 
reporting. OMB and the Department of Energy concurred with our 
recommendations, while the other selected agencies provided no 
comments. In July 2010, OMB updated the Dashboard's cost and schedule 
calculations to include both ongoing and completed activities. 

* In March 2011, we reported that agencies and OMB need to do more to 
ensure the Dashboard's data accuracy.[Footnote 15] Specifically, we 
reviewed investments at the Departments of Homeland Security, 
Transportation, the Treasury, and Veterans Affairs, and the Social 
Security Administration. We found that cost ratings were inaccurate 
for 6 of 10 selected investments and schedule ratings were inaccurate 
for 9 of 10. We also found that weaknesses in agency and OMB practices 
contributed to the inaccuracies on the Dashboard; for example, 
agencies had uploaded erroneous data, and OMB's ratings did not 
emphasize current performance. We therefore recommended that the 
selected agencies provide complete and accurate data to the Dashboard 
on a monthly basis and ensure that the CIOs' ratings of investments 
disclose issues that could undermine the accuracy of investment data. 
Further, we recommended that OMB improve how it rates investments 
related to current performance and schedule variance. The selected 
agencies generally concurred with our recommendation. OMB disagreed 
with the recommendation to change how it reflects current investment 
performance in its ratings because Dashboard data are updated on a 
monthly basis. However, we maintained that current investment 
performance may not always be as apparent as it should be; while data 
are updated monthly, the ratings include historical data, which can 
mask more recent performance. 

Most Dashboard Ratings Were Accurate, but Did Not Emphasize Recent 
Performance: 

Most of the cost and schedule ratings on the Dashboard were accurate, 
but did not provide sufficient emphasis on recent performance to 
inform oversight and decision making. Performance rating discrepancies 
were largely due to missing or incomplete data submissions from the 
agencies. However, we generally found fewer such discrepancies than in 
previous reviews, and in all cases the selected agencies found and 
corrected these inaccuracies in subsequent submissions. In the case of 
GSA, officials did not disclose that performance data on the Dashboard 
were unreliable for one investment because of an ongoing baseline 
change. Without proper disclosure of pending baseline changes, the 
Dashboard will not provide the appropriate insight into investment 
performance needed for near-term decision making. Additionally, 
because of the Dashboard's ratings calculations, the current 
performance for certain investments was not as apparent as it should 
be for near-real-time reporting purposes. If fully implemented, OMB's 
recent and ongoing changes to the Dashboard, including new cost and 
schedule rating calculations and updated investment baseline 
reporting, should address this issue. These Dashboard changes could be 
important steps toward improving insight into current performance and 
the utility of the Dashboard for effective executive oversight. 

Most Cumulative Performance Ratings Were Accurate: 

In general, the number of discrepancies we found in our reviews of 
selected investments has decreased since July 2010. According to our 
assessment of the eight selected investments, half had accurate cost 
ratings and nearly all had accurate schedule ratings on the 
Dashboard.[Footnote 16] Table 1 shows our assessment of the selected 
investments during a 6-month period from October 2010 through March 
2011. 

Table 1: Assessment of Selected Investments' Cost and Schedule Ratings: 

Agency: Commerce; 
Investment: Advanced Weather Interactive Processing System; 
Cost inaccuracies: No; 
Schedule inaccuracies: No. 

Agency: Commerce; 
Investment: Geostationary Operational Environmental Satellite--Series 
R Ground Segment; 
Cost inaccuracies: No; 
Schedule inaccuracies: No. 

Agency: Interior; 
Investment: Financial and Business Management System; 
Cost inaccuracies: Yes; 
Schedule inaccuracies: No. 

Agency: Interior; 
Investment: Land Satellites Data System; 
Cost inaccuracies: Yes; 
Schedule inaccuracies: Yes. 

Agency: GSA; 
Investment: Regional Business Application; 
Cost inaccuracies: No; 
Schedule inaccuracies: No. 

Agency: GSA; 
Investment: System for Tracking and Administering Real Property/Realty 
Services; 
Cost inaccuracies: Yes; 
Schedule inaccuracies: No. 

Agency: State; 
Investment: Global Foreign Affairs Compensation System; 
Cost inaccuracies: Yes; 
Schedule inaccuracies: No. 

Agency: State; 
Investment: Integrated Logistics Management System; 
Cost inaccuracies: No; 
Schedule inaccuracies: No. 

Source: GAO analysis of OMB's Dashboard and agency data. 

[End of table] 

As shown above, the Dashboard's cost ratings for four of the eight 
selected investments were accurate, and four did not match the results 
of our analyses during the period from October 2010 through March 
2011. Specifically, 

* State's Global Foreign Affairs Compensation System and Interior's 
Land Satellites Data System investments had inaccurate cost ratings 
for at least 5 months, 

* GSA's System for Tracking and Administering Real Property/Realty 
Services was inaccurate for 3 months, and: 

* Interior's Financial and Business Management System was inaccurate 
for 2 months. 

In all of these cases, the Dashboard's cost ratings showed poorer 
performance than our assessments. For example, State's Global Foreign 
Affairs Compensation System investment's cost performance was rated 
"yellow" (i.e., needs attention) in October and November 2010, and 
"red" (i.e., significant concerns) from December 2010 through March 
2011, whereas our analysis showed its cost performance was "green" 
(i.e., normal) during those months. Additionally, GSA's System for 
Tracking and Administering Real Property/Realty Services investment's 
cost performance was rated "yellow" from October 2010 through December 
2010, while our analysis showed its performance was "green" for those 
months. 

Regarding schedule, the Dashboard's ratings for seven of the eight 
selected investments matched the results of our analyses over this 
same 6-month period, while the ratings for one did not. Specifically, 
Interior's Land Satellites Data System investment's schedule ratings 
were inaccurate for 2 months; its schedule performance on the 
Dashboard was rated "yellow" in November and December 2010, whereas 
our analysis showed its performance was "green" for those months. As 
with cost, the Dashboard's schedule ratings for this investment for 
these 2 months showed poorer performance than our assessment. 

There were three primary reasons for the inaccurate cost and schedule 
Dashboard ratings described above: agencies did not report data to the 
Dashboard or uploaded incomplete submissions, agencies reported 
erroneous data to the Dashboard, and the investment baseline on the 
Dashboard was not reflective of the investment's actual baseline (see 
table 2). 

Table 2: Causes of Inaccurate Ratings on the Dashboard: 

Agency: Interior; 
Investment: Financial and Business Management System; 
Missing or incomplete data submissions: [Check]; 
Erroneous data submissions: [Empty]; 
Inconsistent program baseline: [Empty]. 

Agency: Interior; 
Investment: Land Satellites Data System; 
Missing or incomplete data submissions: [Check]; 
Erroneous data submissions: [Check]; 
Inconsistent program baseline: [Empty]. 

Agency: GSA; 
Investment: System for Tracking and Administering Real Property/Realty 
Services; 
Missing or incomplete data submissions: [Check]; 
Erroneous data submissions: [Empty]; 
Inconsistent program baseline: [Check]. 

Agency: State; 
Investment: Global Foreign Affairs Compensation System; 
Missing or incomplete data submissions: [Check]; 
Erroneous data submissions: [Empty]; 
Inconsistent program baseline: [Empty]. 

Agency: Total; 
Missing or incomplete data submissions: 4; 
Erroneous data submissions: 1; 
Inconsistent program baseline: 1. 

Source: Agency officials and GAO analysis of Dashboard data. 

[End of table] 

* Missing or incomplete data submissions: Four selected investments 
did not upload complete and timely data submissions to the Dashboard. 
For example, State officials did not upload data for one of the Global 
Foreign Affairs Compensation System investment's activities from 
October 2010 through December 2010. According to a State official, the 
department's investment management system was not properly set to 
synchronize all activity data with the Dashboard. The official stated 
that this issue was corrected in December 2010. 

* Erroneous data submissions: One selected investment--Interior's Land 
Satellites Data System--reported erroneous data to the Dashboard. 
Specifically, Interior officials mistakenly reported certain 
activities as fully complete rather than partially complete in data 
submissions from September 2010 through December 2010. Agency 
officials acknowledged the error and stated that they submitted 
correct data in January and February 2011 after they realized there 
was a problem. 

* Inconsistent investment baseline: One selected investment--GSA's 
System for Tracking and Administering Real Property/Realty Services--
reported a baseline on the Dashboard that did not match the actual 
baseline tracked by the agency. In June 2010, OMB issued new guidance 
on rebaselining, which stated that agencies should update investment 
baselines on the Dashboard within 30 days of internal approval of a 
baseline change and that this update will be considered notification 
to OMB.[Footnote 17] The GSA investment was rebaselined internally in 
November 2010, but the baseline on the Dashboard was not updated until 
February 2011. GSA officials stated that they submitted the rebaseline 
information to the Dashboard in January 2011 and thought that it had 
been successfully uploaded; however, in February 2011, officials 
realized that the new baseline was not on the Dashboard. GSA officials 
successfully uploaded the rebaseline information in late February 2011. 

Additionally, OMB's guidance states that agency CIOs should update the 
CIO evaluation on the Dashboard as soon as new information becomes 
available that affects the assessment of a given investment. During an 
agency's internal process to update an investment baseline, the 
baseline on the Dashboard will not be reflective of the current state 
of the investment; thus, investment CIO ratings should disclose such 
information. However, the CIO evaluation ratings for GSA's System for 
Tracking and Administering Real Property/Realty Services investment 
did not provide such a disclosure. Without proper disclosure of 
pending baseline changes and resulting data reliability weaknesses, 
OMB and other external oversight groups will not have the appropriate 
information to make informed decisions about these investments. 

In all of the instances where we identified inaccurate cost or 
schedule ratings, agencies had independently recognized that there was 
a problem with their Dashboard reporting practices and taken steps to 
correct them. Such continued diligence by agencies to report accurate 
and timely data will help ensure that the Dashboard's performance 
ratings are accurate. 

Dashboard Ratings Did Not Always Highlight Current Performance: 

According to OMB, the Dashboard is intended to provide a near-real-
time perspective on the performance of all major IT investments. 
Furthermore, our work has shown cost and schedule performance 
information from the most recent 6 months to be a reliable benchmark 
for providing this perspective on investment status.[Footnote 18] This 
benchmark for current performance provides information needed by OMB 
and agency executive management to inform near-term budgetary 
decisions, to obtain early warning signs of impending schedule delays 
and cost overruns, and to ensure that actions taken to reverse 
negative performance trends are timely and effective. The use of such 
a benchmark is also consistent with OMB's exhibit 300 guidelines, 
which specify that project activities should be broken into segments 
of 6 months or less. 

In contrast, the Dashboard's cost and schedule ratings calculations 
reflect a more cumulative view of investment performance dating back 
to the inception of the investment. Thus, a rating for a given month 
is based on information from the entire history of each investment. 
While a historical perspective is important for measuring performance 
over time relative to original cost and schedule targets, this 
information may be dated for near-term budget and programmatic 
decisions. Moreover, combining more recent and historical performance 
can mask the current status of the investment. As more time elapses, 
the impact of this masking effect will increase because current 
performance becomes a relatively smaller factor in an investment's 
cumulative rating. 

In addition to our assessment of cumulative investment performance (as 
reflected in the Dashboard ratings), we determined whether the ratings 
were also reflective of current performance. Our analysis showed that 
two selected investments had a discrepancy between cumulative and 
current performance ratings. Specifically, 

* State's Global Foreign Affairs Compensation System investment's 
schedule performance was rated "green" on the Dashboard from October 
2010 through March 2011, whereas our analysis showed its current 
performance was "yellow" for most of that time. From a cumulative 
perspective, the Dashboard's ratings for this investment were accurate 
(as previously discussed in this report); however, these take into 
account activities dating back to 2003. 

* Interior's Financial and Business Management System investment's 
cost performance was rated "green" on the Dashboard from December 2010 
through March 2011; in contrast, our analysis showed its current 
performance was "yellow" for those months. The Dashboard's cost 
ratings accurately reflected cumulative cost performance from 2003 
onward. 

Further analysis of the Financial and Business Management System's 
schedule performance ratings on the Dashboard showed that because of 
the amount of historical performance data factored into its ratings as 
of July 2011, it would take a minimum schedule variance of 9 years on 
the activities currently under way in order to change its rating from 
"green" to "yellow," and a variance of more than 30 years before 
turning "red." 

We have previously recommended to OMB that it develop cost and 
schedule Dashboard ratings that better reflect current investment 
performance.[Footnote 19] At that time, OMB disagreed with the 
recommendation, stating that real-time performance is always reflected 
in the ratings since current investment performance data are uploaded 
to the Dashboard on a monthly basis. 

However, in September 2011, officials from OMB's Office of E-
Government & Information Technology stated that changes designed to 
improve insight into current performance on the Dashboard have either 
been made or are under way. If OMB fully implements these actions, the 
changes should address our recommendation. Specifically, 

* New project-level reporting: In July 2011, OMB issued new guidance 
to agencies regarding the information that is to be reported to the 
Dashboard.[Footnote 20] In particular, beginning in September 2011, 
agencies are required to report data to the Dashboard at a detailed 
project level, rather than at the investment level previously 
required. Further, the guidance emphasizes that ongoing work 
activities should be broken up and reported in increments of 6 months 
or less. 

* Updated investment baseline reporting: OMB officials stated that 
agencies are required to update existing investment baselines to 
reflect planned fiscal year 2012 activities, as well as data from the 
last quarter of fiscal year 2011 onward. OMB officials stated that 
historical investment data that are currently on the Dashboard will be 
maintained, but plans have yet to be finalized on how these data may 
be displayed on the new version of the Dashboard. 

* New cost and schedule ratings calculations: OMB officials stated 
that work is under way to change the Dashboard's cost and schedule 
ratings calculations. Specifically, officials said that the new 
calculations will emphasize ongoing work and reflect only development 
efforts, not operations and maintenance activities. In combination 
with the first action on defining 6-month work activities, the 
calculations should result in ratings that better reflect current 
performance. 

OMB plans for the new version of the Dashboard to be fully viewable by 
the public upon release of the President's Budget for fiscal year 
2013. Once OMB implements these changes, they could be significant 
steps toward improving insight into current investment performance on 
the Dashboard. We plan to evaluate the new version of the Dashboard 
once it is publicly available in 2012. 

Conclusions: 

Since our first review in July 2010, the accuracy of investment 
ratings on the Dashboard has improved because of OMB's refinement of 
its cost and schedule calculations, and the number of discrepancies 
found in our reviews has decreased. While rating inaccuracies continue 
to exist, for the discrepancies we identified, the Dashboard's ratings 
generally showed poorer performance than our assessments. Reasons for 
inaccurate Dashboard ratings included missing or incomplete agency 
data submissions, erroneous data submissions, and inconsistent 
investment baseline information. In all cases, the selected agencies 
detected the discrepancies and corrected them in subsequent Dashboard 
data submissions. However, in GSA's case, officials did not disclose 
that performance data on the Dashboard were unreliable for one 
investment because of an ongoing baseline change. 

Additionally, the Dashboard's ratings calculations reflect cumulative 
investment performance--a view that is important but does not meet 
OMB's goal of reporting near-real-time performance. Our IT investment 
management work has shown a 6-month view of performance to be a 
reliable benchmark for current performance, as well as a key component 
of informed executive decisions about the budget and program. OMB's 
Dashboard changes could be important steps toward improving insight 
into current performance and the utility of the Dashboard for 
effective executive oversight. 

Recommendation for Executive Action: 

To better ensure that the Dashboard provides accurate cost and 
schedule performance ratings, we are recommending that the 
Administrator of GSA direct its CIO to comply with OMB's guidance 
related to Dashboard data submissions by updating the CIO rating for a 
given GSA investment as soon as new information becomes available that 
affects the assessment, including when an investment is in the process 
of a rebaseline. Because we have previously made recommendations 
addressing the development of Dashboard ratings calculations that 
better reflect current performance, we are not making additional 
recommendations to OMB at this time. 

Agency Comments and Our Evaluation: 

We provided a draft of our report to the five agencies selected for 
our review and to OMB. In written comments on the draft, Commerce's 
Acting Secretary concurred with our findings. Also in written 
comments, GSA's Administrator stated that GSA agreed with our finding 
and recommendation and would take appropriate action. Letters from 
these agencies are reprinted in appendixes III and IV. In addition, we 
received oral comments from officials from OMB's Office of E-
Government & Information Technology and written comments via e-mail 
from an Audit Liaison from Interior. These comments were technical in 
nature and we incorporated them as appropriate. OMB and Interior 
neither agreed nor disagreed with our findings. Finally, an Analyst 
from Education and a Senior Management Analyst from State indicated 
via e-mail that they had no comments on the draft. 

As agreed with your offices, unless you publicly announce the contents 
of this report earlier, we plan no further distribution until 30 days 
from the report date. At that time, we will send copies of this report 
to interested congressional committees; the Director of OMB; the 
Secretaries of Commerce, Education, the Interior, and State; the 
Administrator of GSA; and other interested parties. In addition, the 
report will be available at no charge on GAO's website at [hyperlink, 
http://www.gao.gov]. 

If you or your staff have any questions on the matters discussed in 
this report, please contact me at (202) 512-9286 or pownerd@gao.gov. 
Contact points for our Offices of Congressional Relations and Public 
Affairs may be found on the last page of this report. GAO staff who 
made major contributions to this report are listed in appendix V. 

Signed by: 

David A. Powner: 
Director, Information Technology Management Issues: 

List of Requesters: 

The Honorable Joseph I. Lieberman:
Chairman:
The Honorable Susan M. Collins:
Ranking Member:
Committee on Homeland Security and Governmental Affairs:
United States Senate: 

The Honorable Thomas R. Carper:
Chairman:
The Honorable Scott P. Brown:
Ranking Member:
Subcommittee on Federal Financial Management, Government Information, 
Federal Services, and International Security:
Committee on Homeland Security and Governmental Affairs: 
United States Senate: 

The Honorable Ben Quayle:
House of Representatives: 

[End of section] 

Appendix I: Objective, Scope, and Methodology: 

Our objective was to examine the accuracy of the cost and schedule 
performance ratings on the Dashboard for selected investments. We 
selected 5 agencies and 10 investments to review. To select these 
agencies and investments, we used the Office of Management and 
Budget's (OMB) fiscal year 2011 exhibit 53 to identify 6 agencies with 
the largest information technology (IT) budgets, after excluding the 
10 agencies included in our first two Dashboard reviews.[Footnote 21] 
We then excluded the National Aeronautics and Space Administration 
because it did not have enough investments that met our selection 
criteria. As a result, we selected the Departments of Commerce, 
Education, the Interior, and State, as well as the General Services 
Administration (GSA). 

In selecting the specific investments at each agency, we identified 
the largest investments that, according to the fiscal year 2011 
budget, were spending at least 25 percent of their budget on IT 
development, modernization, and enhancement work. To narrow this list, 
we excluded investments that, according to the fiscal year 2011 
budget, were in the planning phase or were infrastructure-related. We 
then selected the top 2 investments per agency.[Footnote 22] The 10 
final investments were Commerce's Geostationary Operational 
Environmental Satellite--Series R Ground Segment project and Advanced 
Weather Interactive Processing System, Education's Integrated Partner 
Management system and National Student Loan Data System, Interior's 
Financial and Business Management System and Land Satellites Data 
System, State's Global Foreign Affairs Compensation System and 
Integrated Logistics Management System, and GSA's Regional Business 
Application and System for Tracking and Administering Real 
Property/Realty Services. 

To assess the accuracy and currency of the cost and schedule 
performance ratings on the Dashboard, we evaluated, where available, 
agency or contractor documentation related to cost and schedule 
performance for 8 of the selected investments to determine their 
cumulative and current cost and schedule performance and compared our 
ratings with the performance ratings on the Dashboard.[Footnote 23] 
The analyzed investment performance-related documentation included 
program management reports, internal performance management system 
performance ratings, earned value management data, investment 
schedules, system requirements, and operational analyses.[Footnote 24] 

* To determine cumulative cost performance, we weighted our cost 
performance ratings based on each investment's percentage of 
development spending (represented in our analysis of the program 
management reports and earned value data) and steady-state spending 
(represented in our evaluation of the operational analysis), and 
compared our weighted ratings with the cost performance ratings on the 
Dashboard. To evaluate earned value data, we determined cumulative 
cost variance for each month from October 2010 through March 2011. To 
assess the accuracy of the cost data, we electronically tested the 
data to identify obvious problems with completeness or accuracy, and 
interviewed agency and program officials about the earned value 
management systems. We did not test the adequacy of the agency or 
contractor cost-accounting systems. Our evaluation of these cost data 
was based on what we were told by each agency and the information it 
could provide. 

* To determine cumulative schedule performance, we analyzed 
requirements documentation to determine whether investments were on 
schedule in implementing planned requirements. To perform the schedule 
analysis of the earned value data, we determined the investment's 
cumulative schedule variance for each month from October 2010 through 
March 2011. 

* To determine both current cost and schedule performance, we 
evaluated investment data from the most recent 6 months of performance 
for each month from October 2010 through March 2011. 

We were not able to assess the cost or schedule performance of 2 
selected investments, Education's Integrated Partner Management 
investment and National Student Loan Data System investment. During 
the course of our review, we determined that the department did not 
establish a validated performance baseline for the Integrated Partner 
Management investment until March 2011. Therefore, the underlying cost 
and schedule performance data for the time frame we analyzed were not 
sufficiently reliable. We also determined during our review that the 
department recently rescoped development work on the National Student 
Loan Data System investment and did not have current, representative 
performance data available. 

Further, we interviewed officials from OMB and the selected agencies 
to obtain additional information on agencies' efforts to ensure the 
accuracy of the data used to rate investment performance on the 
Dashboard. We used the information provided by agency officials to 
identify the factors contributing to inaccurate cost and schedule 
performance ratings on the Dashboard. 

We conducted this performance audit from February 2011 to November 
2011 at the selected agencies' offices in the Washington, D.C., 
metropolitan area. Our work was done in accordance with generally 
accepted government auditing standards. Those standards require that 
we plan and perform the audit to obtain sufficient, appropriate 
evidence to provide a reasonable basis for our findings and 
conclusions based on our audit objective. We believe that the evidence 
obtained provides a reasonable basis for our findings and conclusions 
based on our audit objective. 

[End of section] 

Appendix II: Selected Investment Descriptions: 

Below are descriptions of each of the selected investments that are 
included in this review. 

Department of Commerce: 

Advanced Weather Interactive Processing System: 

The Advanced Weather Interactive Processing System is used to ingest, 
analyze, forecast, and disseminate operational weather data. 
Enhancements currently being implemented to the system are intended to 
improve the system's infrastructure and position the National Weather 
Service to meet future requirements in the years ahead. 

Geostationary Operational Environmental Satellite--Series R Ground 
Segment: 

The Geostationary Operational Environmental Satellite--Series R Ground 
Segment includes the development of key systems needed for the on-
orbit operation of the next generation of geostationary operational 
environmental satellites, receipt and processing of information, and 
distribution of satellite data products to users. 

Department of Education: 

Integrated Partner Management: 

The Integrated Partner Management investment is to replace five legacy 
applications and provide, in one solution, improved eligibility, 
enrollment, and oversight processes for schools, lenders, federal and 
state agencies, and other entities that administer financial aid to 
help students pay for higher education. 

National Student Loan Data System: 

The National Student Loan Data System includes continued operations 
and maintenance of an application that manages the integration of data 
regarding student aid applicants and recipients. The investment also 
includes a development portion that is intended to ensure that 
reporting and data collection processes are in place to efficiently 
determine partner eligibility to participate in higher education 
financial aid programs, and ensure only eligible students receive 
loans, grants, or work study awards. 

Department of the Interior: 

Financial and Business Management System: 

The Financial and Business Management System is an enterprisewide 
system that is intended to replace most of the department's 
administrative systems, including budget, acquisitions, financial 
assistance, core finance, personal and real property, and enterprise 
management information systems. 

Land Satellites Data System: 

The Land Satellites Data System investment includes the continued 
operation of Landsat satellites and the IT-related costs for the 
ground system that captures, archives, processes, and distributes data 
from land-imaging satellites. The development efforts under way are 
intended to enable the U.S. Geological Survey to continue to capture, 
archive, process, and deliver images of the earth's surface to 
customers. 

Department of State: 

Global Foreign Affairs Compensation System: 

The Global Foreign Affairs Compensation System is intended to enable 
the department to replace six obsolete legacy systems with a single 
system better suited to support the constant change of taxation and 
benefits requirements in more than 180 countries, and to help the 
department make accurate and timely payments to its diverse workforce 
and retired Foreign Service officers. 

Integrated Logistics Management System: 

The Integrated Logistics Management System is the department's 
enterprisewide supply chain management system. It is intended to be 
the backbone of the department's logistics infrastructure and provide 
for requisition, procurement, distribution, transportation, receipt, 
asset management, mail, diplomatic pouch, and tracking of goods and 
services both domestically and overseas. 

General Services Administration: 

Regional Business Application: 

The Regional Business Application includes three systems that are 
intended to provide a means to transition from a semi-automated to an 
integrated acquisition process, and provide tools to expedite the 
processing of customer funding documents and vendor invoices. 

System for Tracking and Administering Real Property/Realty Services: 

The System for Tracking and Administering Real Property/Realty 
Services investment includes continued operations of a transaction 
processor that supports space management, revenue generation, and 
budgeting. The investment also includes development of a new system 
that is intended to simplify user administration and reporting, and 
improve overall security. 

Table 3 provides additional details for each of the selected 
investments in our review. 

Table 3: Investment Management Details: 

Agency: Commerce; 
Bureau: National Oceanic and Atmospheric Administration; 
Investment name: Advanced Weather Interactive Processing System; 
Investment start date: 10/1/2001; 
Investment end date: 9/30/2017; 
Prime contractor/developer: Raytheon. 

Agency: Commerce; 
Bureau: National Oceanic and Atmospheric Administration; 
Investment name: Geostationary Operational Environmental Satellite--
Series R Ground Segment; 
Investment start date: 10/1/2006; 
Investment end date: 9/30/2028; 
Prime contractor/developer: Harris Corporation. 

Agency: Education; 
Bureau: Office of Federal Student Aid; 
Investment name: Integrated Partner Management; 
Investment start date: 9/30/2003; 
Investment end date: 11/15/2018; 
Prime contractor/developer: Digital Management, Inc. 

Agency: Education; 
Bureau: Office of Federal Student Aid; 
Investment name: National Student Loan Data System; 
Investment start date: 10/1/2001; 
Investment end date: 7/13/2016; 
Prime contractor/developer: Briefcase Systems. 

Agency: Interior; 
Bureau: Agencywide; 
Investment name: Financial and Business Management System; 
Investment start date: 10/1/2003; 
Investment end date: 9/30/2030; 
Prime contractor/developer: IBM. 

Agency: Interior; 
Bureau: U.S. Geological Survey; 
Investment name: Land Satellites Data System; 
Investment start date: 10/1/2010; 
Investment end date: 9/30/2019; 
Prime contractor/developer: SGT. 

Agency: GSA; 
Bureau: Supply and Technology Activities; 
Investment name: Regional Business Application; 
Investment start date: 10/1/2000; 
Investment end date: 9/30/2013; 
Prime contractor/developer: Tech Flow, Inc. 

Agency: GSA; 
Bureau: Real Property Activities; 
Investment name: System for Tracking and Administering Real 
Property/Realty Services; 
Investment start date: 10/1/2002; 
Investment end date: 9/30/2016; 
Prime contractor/developer: QinetiQ North America. 

Agency: State; 
Bureau: Agencywide; 
Investment name: Global Foreign Affairs Compensation System; 
Investment start date: 10/1/2003; 
Investment end date: 9/30/2015; 
Prime contractor/developer: STG. 

Agency: State; 
Bureau: Agencywide; 
Investment name: Integrated Logistics Management System; 
Investment start date: 1/1/1998; 
Investment end date: 9/30/2016; 
Prime contractor/developer: Accenture. 

Source: OMB's Dashboard and data from program officials. 

[End of table] 

[End of section] 

Appendix III: Comments from the Department of Commerce: 

United States Department of Commerce: 
The Secretary of Commerce: 
Washington DC 20230: 

October 14, 2011: 

Mr. David A. Powner: 
Director, Information Technology Management: 
U.S. Government Accountability Office: 
Washington, DC 20548: 

Dear Mr. Powner: 

Thank you for the opportunity to comment on the draft report from the 
U.S. Government Accountability Office (GAO) entitled IT Dashboard: 
Accuracy Has Improved, and Additional Efforts are Under Way to Better 
Inform Decision Making (GAO-12-28). [Now GAO-12-210] 

We appreciate that GAO concurs that the cost and schedule performance 
ratings for the Department of Commerce's Advanced Weather Interactive 
Processing System and Geostationary Operational Environmental 
Satellite-—Series R Ground Segment are reported accurately in the 
Office of Management and Budget's Information Technology Dashboard. We 
recognize that GAO made no recommendations that are directed to the 
Department of Commerce and concur with GAO's findings. 

If you have questions regarding the Department of Commerce's response, 
please contact Lisa Westerback in the Office of the Chief Information  
Officer at (202) 482-0694. 

Sincerely, 

Signed by: 

Acting Secretary Rebecca M. Blank: 

[End of section] 

Appendix IV: Comments from the General Services Administration: 

GSA: 
The Administrator: 
U.S. General Services Administration:  
1275 First Street, NE: 
Washington, DC 20417: 
Telephone: (202) 501-0800: 
Fax: (202) 219-1243:  

October 19, 2011: 

The Honorable Gene L. Dodaro: 
Comptroller General of the United States: 
U.S. Government Accountability Office: 
Washington, DC 20548:  

Dear Mr. Dodaro:  

The U.S. General Services Administration (GSA) appreciates the 
opportunity to review and comment on the draft report, "IT Dashboard: 
Accuracy Has Improved, and Additional Efforts Are Under Way to Better 
Inform Decision Making" (GAO-12-28). [Now GAO-12-210] 

The U.S. Government Accountability Office recommends that the GSA 
Administrator comply with the Office of Management and Budget's 
guidance on updating the Chief Information Officer rating as soon as 
new information becomes available that affects the assessment of a 
given investment, including when an investment is in the process of a 
rebaseline.  

We agree with the finding and recommendation and will take appropriate 
action. If you have any questions or concerns, please do not hesitate 
to contact me. Staff inquiries may be directed to Mr. Rodney P. Emery, 
Associate Administrator for Congressional and Intergovernmental 
Affairs. He can be reached at (202) 501-0563. 

Sincerely,  

Signed by: 

Martha Johnson: 
Administrator:
 
cc: Mr. David A. Powner, Director, Information Technology Management 
Issues U.S. Government Accountability Office:  

[End of section] 

Appendix V: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

David A. Powner at (202) 512-9286 or pownerd@gao.gov: 

Staff Acknowledgments: 

In addition to the contact named above, the following staff also made 
key contributions to this report: Carol Cha, Assistant Director; Emily 
Longcore; Lee McCracken; Karl Seifert; and Kevin Walsh. 

[End of section] 

Footnotes: 

[1] GAO, Information Technology: Continued Attention Needed to 
Accurately Report Federal Spending and Improve Management, [hyperlink, 
http://www.gao.gov/products/GAO-11-831T] (Washington, D.C.: July 14, 
2011); Information Technology: Continued Improvements in Investment 
Oversight and Management Can Yield Billions in Savings, [hyperlink, 
http://www.gao.gov/products/GAO-11-511T] (Washington, D.C.: Apr. 12, 
2011); Information Technology: OMB Has Made Improvements to Its 
Dashboard, but Further Work Is Needed by Agencies and OMB to Ensure 
Data Accuracy, [hyperlink, http://www.gao.gov/products/GAO-11-262] 
(Washington, D.C.: Mar. 15, 2011); Information Technology: OMB's 
Dashboard Has Increased Transparency and Oversight, but Improvements 
Needed, [hyperlink, http://www.gao.gov/products/GAO-10-701] 
(Washington, D.C.: July 16, 2010); Information Technology: Management 
and Oversight of Projects Totaling Billions of Dollars Need Attention, 
[hyperlink, http://www.gao.gov/products/GAO-09-624T] (Washington, 
D.C.: Apr. 28, 2009); and Information Technology: OMB and Agencies 
Need to Improve Planning, Management, and Oversight of Projects 
Totaling Billions of Dollars, [hyperlink, 
http://www.gao.gov/products/GAO-08-1051T] (Washington, D.C.: July 31, 
2008). 

[2] "Major IT investment" means a system or an acquisition requiring 
special management attention because it has significant importance to 
the mission or function of the agency, a component of the agency, or 
another organization; is for financial management and obligates more 
than $500,000 annually; has significant program or policy 
implications; has high executive visibility; has high development, 
operating, or maintenance costs; is funded through other than direct 
appropriations; or is defined as major by the agency's capital 
planning and investment control process. 

[3] GAO-10-701. The five departments included in this review were the 
Departments of Agriculture, Defense, Energy, Health and Human 
Services, and Justice. 

[4] GAO-11-262. The five agencies included in this review were the 
Departments of Homeland Security, Transportation, the Treasury, and 
Veterans Affairs, as well as the Social Security Administration. 

[5] Initially, we had also selected two investments from the 
Department of Education; however, these investments were subsequently 
dropped, as detailed in appendix I. The remaining eight investments 
were Commerce's Advanced Weather Interactive Processing System and 
Geostationary Operational Environmental Satellite--Series R Ground 
Segment investment, Interior's Financial and Business Management 
System and Land Satellites Data System investment, State's Global 
Foreign Affairs Compensation System and Integrated Logistics 
Management System, and GSA's Regional Business Application and System 
for Tracking and Administering Real Property/Realty Services. See 
appendix II for descriptions of each investment. 

[6] 40 U.S.C. § 11302(c). 

[7] 44 U.S.C. § 3506(h)(5). 

[8] 44 U.S.C. § 3504(h)(1). 

[9] 44 U.S.C. § 3606. Generally speaking, e-government refers to the 
use of IT, particularly web-based Internet applications, to enhance 
the access to and delivery of government information and services to 
the public and among agencies at all levels of government. 

[10] [hyperlink, http://www.gao.gov/products/GAO-09-624T]; GAO, 
Information Technology: Treasury Needs to Better Define and Implement 
Its Earned Value Management Policy, [hyperlink, 
http://www.gao.gov/products/GAO-08-951] (Washington, D.C.: Sept. 22, 
2008); and Air Traffic Control: FAA Uses Earned Value Techniques to 
Help Manage Information Technology Acquisitions, but Needs to Clarify 
Policy and Strengthen Oversight, [hyperlink, 
http://www.gao.gov/products/GAO-08-756] (Washington, D.C.: July 18, 
2008). 

[11] GAO, Information Technology: OMB Can Make More Effective Use of 
Its Investment Reviews, [hyperlink, 
http://www.gao.gov/products/GAO-05-276] (Washington, D.C.: Apr. 15, 
2005). 

[12] GAO, Information Technology: Agencies and OMB Should Strengthen 
Processes for Identifying and Overseeing High Risk Projects, 
[hyperlink, http://www.gao.gov/products/GAO-06-647] (Washington, D.C.: 
June 15, 2006). 

[13] Exhibit 53s list all of the IT investments and their associated 
costs within a federal organization. An exhibit 300 is also called the 
Capital Asset Plan and Business Case. It is used to justify resource 
requests for major IT investments and is intended to enable an agency 
to demonstrate to its own management, as well as to OMB, that a major 
investment is well planned. 

[14] [hyperlink, http://www.gao.gov/products/GAO-10-701]. 

[15] [hyperlink, http://www.gao.gov/products/GAO-11-262]. 

[16] Of the 10 selected investments, we were unable to assess the 
performance of the 2 investments from Education: Integrated Partner 
Management and National Student Loan Data System. In the first case, 
the department had not yet established a validated baseline against 
which to measure performance. In the second case, the department had 
recently rescoped planned development work and did not have current, 
representative performance data available. See appendix I for details. 

[17] OMB, Memorandum for Chief Information Officers: Information 
Technology Investment Baseline Management Policy, M-10-27 (Washington, 
D.C.: June 28, 2010). 

[18] GAO, Investment Management: IRS Has a Strong Oversight Process 
but Needs to Improve How It Continues Funding Ongoing Investments, 
[hyperlink, http://www.gao.gov/products/GAO-11-587] (Washington, D.C.: 
July 20, 2011); GAO Cost Estimating and Assessment Guide: Best 
Practices for Developing and Managing Capital Program Costs, 
[hyperlink, http://www.gao.gov/products/GAO-09-3SP] (Washington, D.C.: 
March 2009); and Information Technology: Treasury Needs to Strengthen 
Its Investment Board Operations and Oversight, [hyperlink, 
http://www.gao.gov/products/GAO-07-865] (Washington, D.C.: July 23, 
2007). 

[19] [hyperlink, http://www.gao.gov/products/GAO-11-262]. 

[20] OMB, FY13 Guidance for Exhibit 300a-b (July 2011). 

[21] GAO-10-701 and GAO-11-262. The agencies reviewed in GAO-10-701 
were the Departments of Agriculture, Defense, Energy, Health and Human 
Services, and Justice. The agencies reviewed in GAO-11-262 were the 
Departments of Homeland Security, Transportation, the Treasury, and 
Veterans Affairs, and the Social Security Administration. 

[22] For the Department of Commerce, we excluded two of its top 
investments because one had been recently completed and the other had 
significant funding uncertainty as a result of a continuing resolution. 

[23] We were unable to assess the cost or schedule performance of the 
two selected Education investments, as discussed later. 

[24] Earned value management is a technique that integrates the 
technical, cost, and schedule parameters of a development contract and 
measures progress against them. 

[End of section] 

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