The U.S. Government Accountability Office (GAO) has highlighted persistent challenges in federal IT acquisition and management in its High-Risk Series report for 2025. With over $100 billion invested annually in IT systems that support essential services, the report underscores the urgency of addressing inefficiencies and the government's struggle to modernize its legacy infrastructure. These challenges have become more complex as technology evolves and as the skillsets required to manage IT systems change.

The GAO report identifies three key problem areas: the oversight and management of IT portfolios, implementing mature IT acquisition practices, and strengthening federal IT capabilities. Despite existing reforms like the Federal IT Acquisition Reform Act (FITARA) of 2014, which aimed to increase the authority and oversight of Chief Information Officers (CIOs), the report reveals that many agencies fail to meet the requirements of such legislation. Approximately 463 of the 1,881 IT-related recommendations made by the GAO since 2010 remain unimplemented, underscoring a systemic inertia in addressing these issues.

One of the central issues is the lack of robust oversight of IT portfolios. Federal CIOs, despite having a mandate to oversee IT spending, often face limited authority and insufficient resources to enforce changes. This has led to a fragmented IT landscape, with many agencies failing to align their IT investments with their strategic objectives. For example, federal agencies reportedly spend nearly 80% of their IT budgets on maintaining outdated legacy systems. Many of these systems are decades old, with some relying on obsolete technologies like 8-inch floppy disks. The GAO warns that these aging systems pose significant cybersecurity risks and incur high maintenance costs, diverting funds from modernization efforts.

The report also critiques the lack of transparency and performance monitoring in IT investments. Without clear metrics and oversight, underperforming projects often persist, wasting millions of taxpayer dollars. Efforts like the Office of Management and Budget's (OMB) IT Dashboard and the introduction of TechStat sessions have aimed to address these issues by increasing public accountability and enabling evidence-based decision-making. However, their implementation has been inconsistent, and critical gaps remain in monitoring high-risk investments.

Another major challenge lies in the federal government’s ability to adopt and manage emerging technologies. As technologies like artificial intelligence (AI) and cloud computing become central to government operations, the need for skilled personnel to manage these systems has grown. Yet, many agencies face difficulties in recruiting and retaining talent with the necessary expertise. The GAO recommends building federal IT capacity through targeted workforce planning and by leveraging private-sector best practices in CIO recruitment and responsibilities. For instance, private-sector CIOs often prioritize strategic and managerial skillsets over technical expertise, a focus that could benefit federal agencies in managing complex IT environments.

To address these issues, the GAO proposes nine critical actions, ranging from enhancing IT portfolio reviews to adopting application rationalization practices. These actions are designed to streamline operations, reduce redundancies, and ensure that IT investments deliver measurable outcomes aligned with agency missions. For instance, rationalizing application portfolios by identifying and eliminating redundant software could save millions of dollars annually.

The report emphasizes the need for a comprehensive approach to modernizing legacy systems. Agencies like the Internal Revenue Service (IRS), which relies on systems over 60 years old, are highlighted as examples where modernization is overdue. Best practices for modernization include developing clear plans with milestones, measurable objectives, and strategies for retiring outdated systems. However, many agencies fail to document such plans adequately, delaying progress and increasing costs.

While initiatives like the Technology Modernization Fund and the adoption of the Technology Business Management framework show promise, the GAO notes that their implementation has been uneven. The report calls for stronger leadership from the OMB and better collaboration among federal agencies to achieve the intended outcomes of these initiatives.

In conclusion, the GAO's 2025 report paints a sobering picture of federal IT management. Despite decades of reforms and billions of dollars in investments, significant challenges persist in ensuring that IT systems are efficient, secure, and aligned with the government’s mission. The GAO’s recommendations provide a roadmap for addressing these issues, but their success depends on strong leadership, adequate resources, and a commitment to change.

Disclaimer: This blog post is for informational purposes only and is not guaranteed to be accurate or up-to-date. It does not constitute legal advice. For specific guidance, consult a qualified professional.