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201009 Kundra IT Management Federal CIO Council

201009 Kundra IT Management Federal CIO Council

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Published by Christopher Dorobek
Federal CIO Vivek Kundra's speech re IT Management to the Federal CIO Council
Federal CIO Vivek Kundra's speech re IT Management to the Federal CIO Council

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Published by: Christopher Dorobek on Sep 20, 2010
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05/24/2012

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EXECUTIVE OFFICE OF THE PRESIDENT
 
OFFICE OF MANAGEMENT AND BUDGET
 
WASHINGTON, D.C. 20503
 
R
emarks by Vivek KundraUS Chief Information OfficerFederal CIO Council, September 20, 2010
Today, I would like to discuss the actions we have taken to reduce wasteful spendingand our ongoing efforts to reform Federal IT.We are in the midst of the Information Revolution. In the same way the Agricultural andIndustrial Revolutions fundamentally and permanently transformed society, so too isthe Information Revolution reshaping the world today.Exponential advances in processor performance, as predicted by Moores Law, havebrought unprecedented computing power to the average person. The sharp decline of storage costs  from $10 per gigabyte in 2000 to $0.06 per gigabyte in 2010
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 hasremoved traditional barriers to accessing and sharing information across the globe.Twenty-first century technologies are flattening communications and markets,contributing to a period of unprecedented innovation and making us more productive,connected citizens.In our daily lives we can track the status of a shipment, make dinner reservations, andshare pictures of our children with family and friends around the world  all online,anytime and anywhere.Yet too often we hear stories about how the Federal government, for one reason oranother, lacks technological capabilities that are commonplace in the private sector andour everyday lives. This IT gap significantly impacts our ability to improve the efficiencyof government and deliver better services to the American people.
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As reported in Exactly How Much Are the Times A-Changin? Newsweek Magazine, July 29, 2010,http://www.newsweek.com/feature/2010/by-the-numbers-how-the-digital-revolution-changed-our-world.html 
 
 
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For too long we have witnessed runaway projects that waste billions of dollars and areyears behind schedule. By the time these projects launch  if they launch at all  theyare obsolete.In 1968, the Air Force Logistics Command estimated that it would take 10 years and$821 million to develop, implement and operate a new computer-based informationand data processing system. In 1975, after $250 million had been spent, Congressordered the termination of the project due to lack of progress.
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 In the early 1970s, the Federal Power Commission began developing a computerizedsystem to provide access to current energy data to improve Federal and State energyregulation. In 1979, after nearly a decade of work, the Department of Energyterminated the project. GAO estimated this failed project cost taxpayers $26.5 million.
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 In 1974, the Farmers Home Administration began developing a new computer-basedinformation management system. By 1980, the project was five years behind schedule,and GAO estimated that the project would exceed its original budget by $25 million.
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The scope and scale of problems only grew worse in the 1980s and 1990s.In 1988, the National Institutes of Health spent $800 million on mainframe computersthat its researchers refused to use. NIHs failure to consult its users prior to thepurchase contributed to millions of dollars of waste. Ultimately, some of themainframes were sold while the rest were relegated to performing administrative tasks,at a fraction of their capacity.
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 In 1996, the U.S. Agency for International Development deployed its customized New
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U.S. Government Accountability Office, The Air Force Continued to Develop the Advanced Logistics System, a Program it wasDirected to Cancel, April 1978,http://archive.gao.gov/f0902d/105805.pdf .
 
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U.S. Government Accountability Office, Millions Wasted Trying To Develop Major Energy Information System, May 1981,http://archive.gao.gov/f0102/115237.pdf .
 
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U.S. Government Accountability Office, Farmers Home Administrations ADP Development ProjectCurrent Status andUnresolved Problems, February 1980,http://archive.gao.gov/f0202/111697.pdf .
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I
nvestigative Report of Senator William S. Cohen, Computer Chaos: Billions Wasted Buying Federal Computer Systems,October, 1994.
 
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U.S. Government Accountability Office, Poor Management Resulted in Unmet Scientists Needs and Wasted Millions,November 1991,http://archive.gao.gov/d31t10/145582.pdf .
 
 
 
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Management System to serve as its primary system worldwide for performing coreaccounting and management functions. However, due to numerous software defectsand design issues, after just a year the Agency had to suspend overseas operations of the system and limit the financial transaction processing to its Washington, D.C. offices.In 1998, the agency decided to replace the New Management System with commercialoff-the-shelf software, despite an investment of over $100 million in the NewManagement System.
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 More recently, the Defense Integrated Military Human Resources System (DIMHRS) wascanceled in February 2010 after 10 years of development and approximately $850million spent
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 despite originally being planned for deployment in 2007, at a cost of $427 million.
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As Secretary of Defense Robert Gates put it "years of effort, poorperformance, and difficulties" with DIMHRS have amounted to "an unpronounceableacronym."
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 Sometimes, the same project has been canceled twice. In July 2010, the Department of Veterans Affairs (VA) canceled its financial management system modernization project,the Financial and Logistics Integrated Technology Enterprise (FLITE) initiative, which wasVAs second attempt to replace its core financial management solution. VA hadcanceled FLITEs predecessor (Core FLS) in 2004 after spending approximately $249million since 1998.
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 Numerous laws, regulations, and policies have been established to improve the way theFederal Government manages its information technology investments. Unfortunately,we continue to see major IT projects fail due to a lack of execution.
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Government At The Brink, Volume I: Urgent Federal Government Management Problems Facing the Bush Administration,June 2001,http://hsgac.senate.gov/vol1.pdf 
 
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Advance Policy Questions for Testimony of Elizabeth A. McGrath to be Deputy Chief Management Officer of the Department of Defense, March 2010,http://armed-services.senate.gov/statemnt/2010/03%20March/McGrath%2003-23-10.pdf  
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U.S. Government Accountability Office, GAO-04-149R: Military Personnel: DFAS Has Not Met All InformationTechnology Requirements for Its New Pay System. October 2003, http://www.gao.gov/new.items/d04149r.pdf.
 
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DefenseNews, Pentagon Dodges Budget Bullet, February 2010,http://www.defensenews.com/story.php?i=4490383
 
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Department of Veterans Affairs Office of Inspector General, Issues at VA Medical Center Bay Pines, Florida andProcurement and Deployment of the Core Financial and Logistics System (CoreFLS), August 2004,http://www4.va.gov/oig/52/reports/2004/VAOIG-04-01371-177.pdf 
 

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