The Office of Management and Budget says hundreds of millions of dollars in budget reductions are expected to come from the restructuring or cancelation of selected financial system modernization projects.
OMB acting director Jeffrey Zients and controller Danny Werfel will announce today the fate of financial system modernization projects that were halted for review last month.
In August, a total of 26 IT projects were identified as “high risk” and subjected to a thorough review before moving forward. Improvement plans are being developed, and they should include details of projects risks, new contractor performance metrics and more rigorous project governance.
Later this fall, those improvement plans will be reviewed by OMB in so-called “TechStat” review sessions as part of the 2012 budget process. Federal chief information officer Vivek Kundra said that even though these projects will be revised and proceed, they still could be cancelled in the future if they run off track.