II.C.2: Budget Process

Align the Budget Process with the Technology Cycle

Other Information:

The rapid pace of technological change does not match well with the Federal government’s budget formulation and execution processes. In addition, modular development means that lessons learned from an early cycle in an IT program will likely inform the detailed plans for the next cycle. As such, agencies need more flexibility to manage IT programs responsibly. To compensate for this misalignment between the realities of IT program management and the need for detailed budgets several years in advance, several agencies have worked with Congress to achieve greater IT budget flexibility through multi-year and/or agency-wide portfolio appropriations. To deploy IT successfully, agencies need the ability to make final decisions on technology solutions at the point of execution, not years in advance. Agencies need the flexibility to move funding between investments or projects within their portfolio to respond to changes in needs and available solutions. But at the same time, Congress has a legitimate and important need for oversight; and given the history of project failures and wasted investments, it is understandable that Congress requires compliance with a rigid system for managing IT investments. The Department of Veterans Affairs (VA) presents an interesting model. Greater budget flexibility has allowed the VA CIO to freeze projects that are off track and either restructure them for success or cancel them. VA established an accountability system so projects that are missing milestones are flagged early. Greater budget flexibility paired with real-time visibility is leading to success at VA – and minimizing the risk of “big bang” failures.

Stakeholder(s):

• Department of Veterans Affairs (VA)

Indicator(s):

Indicator:1

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