Federal Manager's Daily Report

Three years after share-in-savings contracts were authorized

under the e-gov act of 2002 for IT projects, agencies have

not been unsuccessful or have shied away from using them,

the Government Accountability Office has said in a new report.

With the e-gov act set to expire in September of this year,

the Office of Management and Budget has yet to issue

implementation regulations and guidance — and it reported

that not a single contract has been

authorized.

This is despite the establishment of a GSA SIS office and two web

tools designed to help agencies identify opportunities to use the

contracts for IT projects and make business cases for them, according

to GAO-05-736.

It said officials from 11 agencies identified reasons why the SIS

initiative has not resulted in IT contracts including, “a lack of

implementing regulations; difficulty determining baseline costs; a

belief that the return on investment using share-in-savings contracts

is insufficient; concerns among agency officials that they still would

have to obtain funding for cancellation and termination liability,

which can be a significant sum; and too few acquisition employees

have been trained to use the — SIS – contracting technique.”