OMB: Federal agencies doing a better job of managing IT investments

OMB said that there's been a 61 percent drop in the number of federal IT projects reported on the agency's Management Watch List. According to the agency, the number of projects on the list dropped from 346 in February to 136 in August.

The Management Watch List presents names of federal IT investment projects that contain one or more planning weaknesses. Projects placed on OMB's Management Watch List—which is updated quarterly—are targeted for follow-up action to strengthen the project's management and potential to produce results. Areas where there could be planning weaknesses in an IT investment include acquisition strategies, security and privacy plans, and organizational design.

Managers of the 210 IT projects that previously were on the watch list were able to get their projects lopped off by providing and completing additional documentation and/or planning activities, OMB noted.

The 136 projects remaining on the Management Watch List represent about $8.6 billion in projected IT investment for fiscal year 2008—a decrease of $1.1 billion compared to the February 2007 data.

“We are always looking for ways to strengthen our ability to effectively manage our IT investments,” said Karen Evans, OMB's administrator of e-government and information technology. “ ... This report shows agencies have made progress on fixing identified weaknesses and effectively managing their IT investments. Our focus and priority remains on working with the agencies to ensure their projects meet their established goals on time and on budget.”

High-Risk List has grown

While there are fewer IT projects on OMB's Management Watch List, the agency's High-Risk List has grown. As of August, the High-Risk List included 553 projects, up from 477 projects reported in February.

Projects on the High-Risk List are not necessarily “at risk,” but are those requiring special attention from the highest level of agency management. While these programs may be performing well, they are determined to be high-risk due to different factors such as the high cost of the project or the level of importance that the project plays in the overall mission of the agency or other organization.

“The increase on the High-Risk List is attributable to increased management oversight reported by agencies—in other words, we have increasingly better information about the projects,” OMB said in a press release. “The 553 projects on this list represent approximately $12.9 billion in IT spending for FY 08.”

Federal spending on information technology is going through a growth spurt. For FY 2008, federal agencies have requested a total of $66.4 billion to spend on IT projects, according to OMB. This is a 2.3 percent increase over the FY 2007 IT spending total, as enacted by Congress.