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Posted: 6/10/2010 - 0 comment(s) [ Comment ] - 0 trackback(s) [ Trackback ]

Contact:
Liz Vandendriessche
(703) 883-9000 ext. 146
evandendriessche@meritalk.com  

 
FEDERAL PROCUREMENT REFORM STUDY SHOWS
$158 BILLION SAVINGS OPPORTUNITY
 
Despite EVM and CPIC Mandates, Agencies Fail to Adopt Standard Management Practices

Alexandria, Va., June 14, 2010MeriTalk (www.meritalk.com), the government IT network, today announced the results of “Federal Procurement Reform: Change Takes More than Words,” a study that examines Federal procurement process maturity and management practices, and identifies opportunities for procurement reform. The report reveals that, while the Obama administration is putting a stronger emphasis on increasing transparency and accountability across the Federal government, agencies still have significant work to do at the operational level. Importantly, Federal procurement managers estimate they can save up to $158 billion each year by implementing more efficient processes moving forward. 
 
The report also brings to light the need for stronger program management training. Despite Federal mandates that require the use of project management tactics such as Earned Value Management (EVM) and Capital Planning and Investment Control (CPIC) for large projects, agencies are not training for, or supporting continuous use of, these techniques. Only 17 percent and 14 percent of Federal agencies have implemented and are consistently using EVM and CPIC, respectively.  
 
Further findings include:
  • The Issue is Clear: Only 12 percentof Federal procurement managers surveyed give their agency an “A” for procurement process maturity
  • Training Structure is Lacking: 56 percent of Federal procurement professionals surveyed lack program management training, 59 percent lack EVM training, and 85 percent lack CPIC training
  • Transparency Takes More than Talk:  While 49 percent of respondents want to increase top-down transparency, only 18 percent of respondents are leveraging technology innovations, such as Web 2.0, to demonstrate contract return on investment. Additionally, only 21 percent of respondents say their agency actively encourages citizen participation and actually responds to general inquiries
  • Current Failures are Affecting Today’s Bottom Line: Considering current projects underway, Federal agencies could save $95 billion by better managing programs and adhering to Federal guidelines. Moving forward, Feds assert they can save up to $158 billion by employing better management practices
 
 The study shows that while new initiatives, mandates, and legislation such as the Federal IT Dashboard, Open Government Directive, and pending S. 920 IT Investment Oversight Enhancement and Waste Prevention Act of 2009 provide the high-level framework for increasing procurement maturity and overall contract success rates, Feds need to take action to achieve real, quantifiable change. 
 
“Given the mindboggling deficits our nation faces in the coming decades, the Federal government must figure out how to do more with less” said Senator Tom Carper (D-DE), chairman, U. S. Senate Homeland Security and Governmental Affairs Subcommittee on Federal Financial Management, Government Information, Federal Services, & International Security. “The time for talk is over. The Federal government must embrace efficiency as a means to not only save money, but also bring better service to the American people. This report clearly outlines how – with more efficient management processes and better training of personnel – we can realize significant savings for American taxpayers.”
 
“What’s the point in trying to mandate new reforms when we’re not funding existing mandates,” said Steve O’Keeffe, founder, MeriTalk. “We need to equip agencies with robust, standardized EVM and CPIC tools as well as invest in training for government management professionals if we’re going to realize better outcomes for America.”
 
The "Federal Procurement Reform:  Change Takes More than Words" report is based on an online survey of 200 Federal procurement professionals in January 2010.  To download the full study results please visit www.meritalk.com/reformreport
 
About MeriTalk
The voice of tomorrow’s government today, MeriTalk is an online community that combines professional networking and thought leadership to drive the government IT community dialogue. Developed as a partnership among the Federal Business Council, Federal Employee Defense Services, Federal Managers Association, GovLoop, National Treasury Employees Union, USO, and WTOP/WFED radio, MeriTalk is a community network.  For more information, visit www.meritalk.com or follow us on Twitter, @meritalk.
 
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