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  • Predictive Analytics for Improved Cost Management

PRICE Report: OMB Requires Government Agencies to Perform Independent Validation of Cost, Schedule, and Performance

MT. LAUREL, NJ / August 19, 2005 / According to a recent mandate from OMB's Office of Electronic Government and Information Technology (OEGIT), Government agencies are now required to perform an independent validation of cost, schedule, and performance goals for all new major IT projects; ongoing major IT developmental projects; and high risk projects to better ensure improved execution and performance, as well as promote more effective oversight.

According to the OEGIT, agency programs must:

1. For all new major IT projects, before beginning development, ensure cost, schedule, and performance goals are independently validated for reasonableness.

2. For all ongoing major IT projects with development efforts (DME), before obligating FY 2006 funds, begin independently validating for reasonableness current cost, schedule, and performance baselines, taking corrective actions as necessary. Independent validations should be completed by March 31, 2006. If proposed corrective actions include re-baselining (changing the performance measurement baseline-planned scope of work, schedule, budgeted costs, or all three), the proposal must be approved by OMB.

Government Agencies who do not have independent validations by March 2006 cannot obligate funds for their projects. Over the past several years, agencies have improved the quality of their IT project planning and justification. With these new requirements, the OEGIT is moving from an "institutional" budgeting culture to one of rigorous affordability management.

"Now more than ever, Government Agencies need to be armed with a credible cost, schedule and performance justifications," said PRICE Systems President & CEO Anthony DeMarco. "PRICE Systems' world-class technology and experienced consultants can address the mandate and provide a complete Independent IT Project Validation solution."

PRICE Systems' cost modeling and knowledge management tools allow users to capture critical data and build quality cost estimates which are built on more than 30 years of working with more than 250 organizations in the Federal market. PRICE Systems' independent consultants bring implementation experience and best practices in specific program control methods emphasizing processes that integrate program performance and results to cost and budget planning. The combination of technology, consulting and compliance allows an agency or office to implement a complete Independent IT Project Validation solution maximizing Government Agencies' return on investment.

Today, PRICE Systems is helping organizations such as the Department of Defense's Standard Procurement System (SPS), the Internal Revenue Service (IRS), and Crédit Agricole (commercial banking) in developing independent cost estimates and validations of budget and performance as directed in the OEGIT mandate.