FEDERAL SECTOR REPORT

The government reports $44.9 billion in the Fiscal Year 2002 budget for Information Technology. The Budget of the United States Government for Fiscal Year (FY) 2002 addresses capital planning issues in Section III, Chapter 1 "Improving Government Performance", and discusses making the government citizen-centered, results oriented, and market-based. A summary is below, but you can have a much more detailed version in Excel spread sheet format from the P2C2 Group.

Overall, spending on IT is relatively flat--up less than one percent compared to FY 2001. While Department of Education is a big winner in a its overall budget, the extra money is going into grants, not IT. The information technology budget for DoD shows a slight decrease despite the boost in budget for military pay and other budget items.

HHS, Labor, State, Treasury, and VA have modest increases. Smithsonian has a large percentage increase, though the total budget is only proposed at $70 million. The Army Corps of Engineers does not fare well.

For outlying years, the Office of Management and Budget (OMB) is telling government Chief Information Officers to "produce or perish." OMB is putting more stringent rules in place for evaluating IT budgets in future years. Either agencies will document performance and IT capital investment results, or future budgets may take a nose dive.

Federal IT Budget For Fiscal Year 2002 Summary of Clinger-Cohen Act Report on Information Technology Dollars in Millions (with Rounding)
Federal Agency		FY2000	FY2001	FY2002
Corporation for National Services		$6	$7	$6
Corps of Engineers, Total Agency IT Investments		$184	$225	$179
US Department of Agriculture, Total Agency IT Investments		$1,277	$1,384	$1,488
Departments of the Army, Air Force, Navy and Defense Agencies, Total IT Investments*		$21,212	$21,729	$21,529
Department of Commerce, Total Agency IT Investments		$1,026	$1,027	$945
Department of Education, Total Agency IT Investments		$543	$643	$653
Department of Energy, Total Agency IT Investments		$1,111	$1,127	$1,146
Department of Health and Human Services, Total Agency IT Investments		$3,337	$3,712	$3,914
Department of Housing and Urban Development, Total Agency IT Investments		$306	$364	$369
Department of the Interior, Total Agency IT Investments		$560	$598	$607
Department of Justice, Total Agency IT Investments		$1,408	$1,665	$1,632
Department of Labor, Total Agency IT Investments		$291	$374	$420
Department of State, Total Agency IT Investments		$395	$582	$634
Department of Transportation, Agency Total IT Investments		$2,120	$2,478	$2,653
Department of Treasury, Total Agency IT Investments		$2,195	$2,792	$3,030
US Agency for International Development (USAID), Total Agency IT Investments		$69	$80	$81
Department of Veterans Affairs (VA) Total Agency IT Investments		$1,090	$1,219	$1,262
Environmental Protection Agency, Total Agency IT Investments		$398	$428	$449
Federal Communications Commission, Total Agency IT Investments		$32	$36	$36
Federal Emergency Management Agency, Total Agency IT Investments		$124	$132	$133
General Services Administration, Total Agency IT Investments		$380	$399	$389
National Archives and Records Administration, Total Agency IT Investments		$26	$36	$62
National Aeronautics and Space Administration, Total Agency IT Investments		$2,110	$2,230	$2,096
Nuclear Regulatory Commission, Total Agency IT Investments		$59	$56	$56
Office of Personnel Management (OPM) Total Agency IT Investments		$57	$76	$88
Patent Trademark Office (PTO) Total Agency IT Investments		$177	$240	$233
Smithsonian, Total Agency IT Investments		$57	$56	$70
Social Security Administration, Total Agency IT Investments		$695	$741	$702
Other Small Agencies		$49	$39	$38
TOTAL, EXECUTIVE BRANCH		$41,295	$44,472	$44,901

FEDERAL NEWS BYTES

The government technology media, like Federal Computer Week, are happily providing major coverage of the proposed E-Government Act, a bill backed by Senators Joe Lieberman and Conrad Burns. The legislation would provide an ambitious boost to the Bush Administration's limited commitment of a three-year $100 million fund. Not surprisingly, IT hardware and software manufacturers are enthusiastic supporters of the generous Senate bill.

But who knows? Joe Lieberman is a very astute guy. He certainly knew better than to quit his Senate job this past year. Moreover, his track record on IT legislation is first class ... the successful Government Information Security Reform law, tacked on to this past year's appropriations bill, has his finger prints on it.

I have been awed by the depth of information at www.proposalworks.com. Dan Safford and Michael Asner seem to be determined to make this a one-stop solution for almost anything to do with proposals. One of the fascinating dimensions of ProposalWorks is that it uses web search technology to find numerous articles about proposals and related issues. The technology is combined with human analysts who have created an extensive library that is easy and quick to search.

I had breakfast in April with Richard White, who has his hand in a fascinating network of interrelated e-businesses: Fedmarket.com, Bidengine.com, ITBids, GovCommerce, and ProposalWorks. You can take a tour of all of the sites from www.proposalworks.com. In addition to doing neat e-things, Richard has figured out how to live in Idaho but maintain virtual Washington-area business activities.

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We provide enterprise-level management consulting services for federal agencies and the contractors who support them. Our areas of specialization are Capital Planning and Investment Control, Enterprise Architecture, strategic planning, performance evaluation, and acquisition support including work statements. Our consulting specialty includes experience in many related areas such as CIO program support, earned value management, risk management, the C&A process for security, and customer satisfaction surveys.

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