GAO had similarly reported last year that of seven projects funded in 2018 and 2019, only two had shown long-term savings, and even those were not well documented. Image: Syda Productions/Shutterstock.com
Only eight of the 37 agency IT projects that have received funding from the Technology Modernization Fund have shown savings—totaling less than $15 million out of the $636 million awarded to them—although most of those projects are still underway and are projected to produce net savings, the GAO has said.
The TMF is a central government-wide fund designed to provide up-front money to enable agencies to replace legacy systems rather than continuing to spend over time to keep them operating. Agencies are then to repay the fund out of the savings.
GAO said that of the seven projects completed to date, two were considered “on track” as being within 10 percent, one was not, one was anticipated to produce cost avoidances rather than savings and the other three were completed to recently to assess. Of those still underway, 16 are projected to produce $739 million in combined savings while 13 “neither anticipate nor have realized any cost savings.”
GAO had similarly reported last year that of seven projects funded in 2018 and 2019, only two had shown long-term savings, and even those were not well documented.
The TMF has received some $1.2 billion in spending authority since its creation in late 2017, with the first awards made to agencies in 2018 and the largest number, 17, made last year.
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