Technology Business Management: Critical Go or No Go Action Required on Federal Agency Adoption of IT Spending Framework

What GAO Found

The Technology Business Management (TBM) framework focuses on organizations using a standard taxonomy to describe and report IT costs, resources, and solutions. GAO previously reported in 2022 that the Office of Management and Budget (OMB) and General Services Administration (GSA) took steps in 2017 to lead government-wide TBM adoption, but progress and results were limited. Specifically, OMB's initial 2017 plans required agencies to report IT spending in layer one's nine categories (e.g., facilities and power, hardware, and software) and layer two's 11 categories (e.g., applications, data centers, and networks). However, as GAO previously reported, 5 years after its initial plans, OMB had not expanded requirements to include the rest of the taxonomy.

In its 2022 report, GAO made seven recommendations to OMB and GSA to establish requirements for completing the taxonomy and to address other concerns central to demonstrating that TBM is an Administration priority. However, as of March 2025, one of the seven recommendations has been partially implemented while five have not been implemented, including requiring taxonomy completion.

Given OMB's lack of guidance, most agencies had not developed a plan for implementing TBM and had not fully established a reliable cost allocation methodology. Specifically, 15 of 26 agencies GAO reviewed did not have a plan for implementing TBM while 18 agencies had either partially implemented or not implemented a reliable cost allocation methodology (see fig.).

Extent to Which 26 Federal Agencies Implemented Selected Leading Technology Business Management (TBM) Practices

Regarding costs to implement TBM and any resulting benefits, 12 of 26 agencies provided GAO with their total reported costs. These individual agency costs ranged from approximately $1.5 million to $28.9 million. According to these agencies, the costs were associated with government labor, contractors, tools/licenses, or training for all or part of the time spanning fiscal years 2017 through 2023. Further, agencies reported some benefits, such as increased transparency into IT spending, but did not identify any cost savings.

OMB's lack of action and guidance over the last 8 years has led to substantial TBM delays. While costs continue to mount, full TBM implementation is stalled. Action is required now to determine the future of TBM in the federal government.

Why GAO Did This Study

In 2017, OMB announced its intention to improve insights into IT spending through government-wide adoption of the Technology Business Management framework. This framework provides a standard taxonomy that is organized into four layers (cost pools, IT resources, solutions, and business units and capabilities). It is intended to show an organization's total IT spending from financial, technology, and business perspectives.

GAO was asked to review federal agencies' TBM implementation. GAO's objectives were to (1) summarize its 2022 TBM report and the implementation status of recommendations it made, (2) evaluate the extent to which agencies have implemented selected leading TBM practices, and (3) identify agency costs and benefits attributed to TBM.

GAO reviewed its prior report on TBM and assessed actions taken to implement its seven recommendations. GAO also evaluated the extent to which 26 federal agencies implemented two leading TBM practices. Further, GAO interviewed agency officials regarding selected practices and reporting of TBM implementation costs and benefits.