IT spending can help agencies save money, says House leader

Despite the growing federal deficit, House Government Reform Committee Chairman Tom Davis, R-Va., said he believes federal information technology spending will continue to grow because agencies reduce overall spending by making use of technology.

"If we want to be efficient, spending on information technology is critical," Davis said at the annual Federal Outlook Conference hosted by Federal Sources Inc., a government contracting consulting firm in McLean, Va. "When the government wants to lose weight, they usually try to cut off some fingers and toes, when they should be cutting off fat."

While overall spending on IT will increase by about 7 percent in fiscal 2006, Davis said some agencies are starting to spend less as startup costs drop off the budget sheets and efficiencies begin to be realized.

"Technology is like a steamroller. You're either on board or flattened on the pavement," Davis said.

He said that some of the governmentwide contracts will be scaled back, but agencies need to make certain they are doing procurement efficiently.

"I like the schedules," Davis said. "It has cut back on the bid protests…. Money is wasted on those."

Federal Sources' report on IT spending, released at the conference, focused on how agencies are moving toward sharing not only information but budget authority and procurement options. FSI projected that agencies will spend a combined $68.3 billion on IT in fiscal 2007.

"From a government viewpoint, there's increasing difficulty in finding where you can get your work filled," said Ray Bjorklund, a FSI senior vice president. "[The Office of Management and Budget] is rationalizing projects, expecting results with fewer projects and more consolidation and sharing opportunities to compete."

Bjorklund said the numerous schedules that agencies are able to choose from make it difficult for procurement officers to get simple jobs done.

Shared agency budget authority through OMB ensures that future federal spending on IT will include more high-order services and fewer products, according to FSI's budget analysis.

With increased stability in agencies' technology budgets, FSI predicts that, in fiscal 2006, there will be 24 new Defense Department projects, totaling $229 million, and 152 new civilian agency projects, totaling $610 million.

According to FSI, the Veterans Affairs Department will increase IT spending the most in fiscal 2006 at 29 percent, followed by Homeland Security at 25 percent, Justice at 20 percent and the Air Force at 13 percent. Agencies expected to decrease their technology spending include the Social Security Administration at 7 percent and NASA at 3 percent.