The Office of Management and Budget is going to announce today that it’s halting all financial systems modernization projects across the government.
That means 30 projects worth $20 billion are now effectively on hold until OMB can come up with a way to improve the procurement process in this area.
The most well-known failure in this area is the Veterans Affairs Department’s CoreFLS project (since replaced by a new program called FLITE that hasn’t gone much better). The department has spent a total of about $300 million on this boondoggle over 10 years and has seen no tangible benefits.
Jeff Zeints, OMB’s deputy director for management, is going to take four months to develop guidance on how to improve the federal procurement process for information technology. This is a source of frequent complaints from IT and acquisition officials — the government process is just too slow to keep up with rapid advancements in IT.
OMB is having a conference call in about a half hour to discuss its strategy — we’ll have an update for you later this afternoon.