Takeaways from Senate Subcommittee Hearing on Information Technology Modernization

Published: April 28, 2021

Federal Market AnalysisGAOInformation TechnologyPolicy and Legislation

A panel of former Chief Information Officers offers advice on federal IT modernization efforts.

Key Takeaways

  • Federal agencies should introduce business management processes that improve IT modernization efforts.
  • Adopting cloud-based solutions can modernize IT environments faster and more securely.
  • The Technology Modernization Fund should fund modernization projects and provide oversight, but not require agencies pay back loans.
  • Industry will remain critical to the success of agency modernization efforts because federal employees cannot be reskilled fast enough to meet demand.

The Senate Subcommittee on Emerging Threats and Spending Oversight (ETSO), a part of the Senate Committee on Homeland Security and Governmental Affairs, held a hearing on April 27, 2021, that delved into some of the major issues surrounding federal IT modernization. Leveraging the experience of three former agency Chief Information Officers, and a current IT director at the Government Accountability Office (GAO), to provide insight into the issues facing current agency leaders, the subcommittee covered the challenges surrounding legacy systems, budgeting, and the federal workforce.

Legacy System Modernization

Citing GAO figures showing the federal government spends no less than $90B per year on information technology (IT), subcommittee Chair Sen. Margaret Hassan (D-NH) asked the panelists what is keeping agencies from modernizing their IT environments.

Kevin Walsh, the director of IT and Cybersecurity at the GAO identified a big challenge in the fact that most agencies do not have an IT modernization plan. When GAO asked agencies if they had a plan in 2019, only the Department of Defense and Department of Interior responded by saying that they had plans in place.

Max Everett, the former CIO at the U.S. Department of Energy, agreed with Walsh that the lack of plans is a problem. Everett then suggested toward the end of the session that agency CIOs should all go through the process of completing a Technology Modernization Fund (TMF) application for at least one legacy system just to see how the process works. Noting that completing the TMF application is very similar to developing an IT modernization plan, Everett expressed frustration that the process is not followed today because it is only by understanding costs and projecting those out over several years that agency leaders can get a handle on their environments.

Casey Coleman, the former CIO at the U.S. General Services Administration, brought up the usefulness of cloud computing as a method of accelerating modernization efforts. Not only are cloud-based systems more secure than legacy systems, they also introduce efficiencies that enable agencies to better serve the public, which is, after all, their mission.

Takeaway – Agencies can introduce business management processes and plans that improve IT modernization efforts. Adopting cloud can get them there faster and more securely.

Budgeting

Sen. Hassan asked the panelists if moving from the current single-year appropriation to a biennial budget process would help agencies meet their modernization needs.

All of the panelists agreed that lengthening the budget cycle would help agencies. Renee Wynn, for example, the former CIO at the National Aeronautics and Space Administration, explained how crossing fiscal years with IT projects introduces risk into modernization programs. Extending the length of a program effort can create future staffing issues and contract-related challenges if contract employees suddenly change. Having a second budget year, she concluded, would reduce risk and help stabilize staffing inconsistencies.

Casey Coleman, meanwhile, agreed that single-year appropriations create uncertainty and disruption. A 2 year budget cycle would be very helpful, she argued, adding that agencies should also be using agile DevOps to break large programs into short sprints that are managed in 1 year terms.

Takeaway – Two-year budget cycles are not a popular idea in Congress so suggesting it is likely a non-starter. Several panelists did, however, praise the expansion of the Technology Modernization Fund, with Max Everett even suggesting that Congress remove the loan repayment requirement. Panelists also agreed that agencies should have access to Working Capital Funds for IT modernization, and some already do, but this is not a politically popular idea on Capitol Hill either.

Workforce

All of the panelists agreed that attracting and retaining skilled personnel is becoming increasingly difficult. Even more problematic is the practice of calling former federal employees out of retirement to service legacy equipment. Each panelist also agreed that there is talent in the federal workforce which is not being leveraged through reskilling programs that currently exist. More congressional support and oversight may help to address the problem.

Renee Wynn added that agency culture can be a big barrier to modernization because CIOs do not receive the sustained executive support they need to get modernization projects done. She added as well that middle-level executives resisted changes to processes mandated by NASA leadership back in her day. It would therefore be helpful to have congressional pressure put on agency leaders to support CIOs. Other panelists agreed.

Takeaway – All of the panelists agreed, either explicitly or implicitly, that industry support will be critical to federal IT modernization moving forward. Talent exists in the federal workforce, but too few employees are being reskilled to fill gaps. Rapidly changing technology is also creating challenges that agencies cannot address through reskilling programs alone.

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