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Feds Could Save $4 Billion By Not Buying Same Software Twice

Sen. Cassidy blames ‘irresponsible’ oversight

AP
June 3, 2015

Sen. Bill Cassidy (R., La.) is urging the Office of Management and Budget (OMB) to implement better management policies over the federal government’s software purchases, which could save taxpayers $4 billion a year.

Cassidy sent a letter to OMB Director Shaun Donovan on Tuesday asking the government to implement a system to keep track of its IT purchases, citing a Government Accountability Office (GAO) report that found agencies do "not have adequate policies for managing software licenses."

"More than $4 billion taxpayer dollars could be saved if federal agencies keep track of what software they buy," Cassidy said in a statement. "It’s irresponsible they don’t do so already. Taxpayer dollars could be better used on our troops and our classrooms, not redundant software programs."

The GAO found that each agency could save up to $181 million per year simply by keeping track of its software inventory.

Only two of the 24 major federal agencies currently have a management system for what software they buy, according to GAO.

"This troubling information shows that there is great potential for additional systemic issues, like those seen at the Department of Veterans Affairs and Internal Revenue Service," Cassidy wrote.

Cassidy asked the OMB if they plan to issue guidance to agencies on how to fix its oversight of IT purchases, and why they have "not undertaken a more direct oversight approach to the management of federal agency software licensing."