OMB reports progress in IT management

A new Office of Management and Budget report gives agencies positive marks for making strong business cases for information technology projects, but identifies an increasing number of high-risk initiatives.

The report shows that the number of IT business cases on the OMB management watch list dropped from 346 as of December 31, 2006, to 183 as of March 31, 2007.

Business cases for IT investments end up on the list if OMB officials find one or more weaknesses. The plans -- required under the 1996 Clinger-Cohen Act -- are then targeted for follow-up so that potential problems can be corrected before the project begins.

Plans are dropped from the list once agencies demonstrate through additional documentation and information on planning that they have addressed the problems.

The 183 cases still on the list cover a combined $9.7 billion in projected fiscal 2008 investments. The Defense Department, the agency with the largest IT budget, has only one investment on the list. The Veterans Affairs Department had the most projects the list, with 37. The Treasury Department followed with 28, Homeland Security with 26 and NASA with 24.

The number of VA and NASA business cases on the list remained the same over the period measured, but the number from the Treasury and Homeland Security departments dropped. The Office of Personnel Management was the only agency to have its number of business cases go up, from four to five.

Meanwhile, the number of projects on a separate "high risk" list jumped from 477 to 549 during the first quarter of 2007 (from Dec. 31, 2006, to March 31, 2007). According to OMB, the high-risk designations have increased because agencies are doing a better job of overseeing projects.

Placements on the high risk list, established by OMB in August 2005, are determined by projects' complexity or level of importance. The 549 initiatives on the list represent about $12.9 billion in projected IT spending for fiscal 2008. OMB has decided they need attention from "the highest level of agency management," but in a statement, noted they are not necessarily at risk for failure.

"Agencies have made great strides in holding themselves accountable for results and strengthening their ability to manage these important investments," said Karen Evans, OMB administrator for e-government and information technology, in a statement. "We have more to do, and we will continue to work with agencies to ensure projects on the list are meeting their goals on time and on budget."