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  • Predictive Analytics for Improved Cost Management

Government IT Executives Express Concern Over Program Budgets

MT. LAUREL, NJ / November 27, 2006 / According to a new market study conducted by PRICE Systems, world leader in Program Affordability Management solutions, 46% of cancelled or over-budget programs, costing the federal government $5.5 billion annually, could be avoided if realistic project baselines were established in planning stages. Only 18% of government IT executives participating in the study expressed confidence in their program budgets, with 69% reporting that they typically notice problems about midway through their programs.

These and other results of the study, entitled "A Cracked Foundation," will be discussed as part of PRICE Systems' free on-line Webinar on Independent Government Project Validation to be held from 11:00 to 11:45 a.m. (US EST) on November 30. Retired Deputy Assistant Secretary of the Army Robert W. Young, who led the office that provided independent validation of major Army programs, will share insights from the study and his experiences on how agencies and program managers can successfully implement a protective project validation process. To register for the Webinar, visit

"The study statistically confirms that most government agencies demonstrate a lack of training, tools, and effective processes to develop and manage realistic baseline estimates for program costs, schedules, and risks," said Larry Reagan, Vice President of Government Solutions at PRICE Systems. "Government agencies require stronger foundations upon which to build solid program structures and avoid the high rates of collapse. More accurate baseline estimates would go a long way toward filling the structural cracks."

Study Methodology
The PRICE Systems "A Cracked Foundation" study findings are based on an online survey of government IT executives. Within the survey sample of 104 respondents, 67 percent represented federal civilian agencies and 33 percent represented the Department of Defense. Respondents indicated professional titles ranging from manager to analyst to administrator. Fifty-seven percent of respondents reported to have 10 or more years of service to the government.