GAO blasts Pentagon on SPS management

Continued Investment in the Standard Procurement System Has Not Been Justified

Defense Department officials could face tough questions from a congressional panel this week in the wake of an unusually harsh General Accounting Office report criticizing management of the Pentagon's $326 million Standard Procurement System.

The House Government Reform Committee's National Security, Veterans Affairs and International Relations Subcommittee convenes Sept. 11 to judge the status of the beleaguered SPS system. The hearing follows a Sept. 4 release of GAO's report, which stated, "DOD's management of SPS is a lesson in how not to justify, make and monitor the implementation of [information technology] investment decisions.... Currently, DOD is not effectively performing any of these basic tenets of effective investment management on SPS and, as a result, DOD lacks the basic information to make informed decisions about how to proceed with the project."

SPS is meant to automate the often- complex process that Pentagon procurement shops use to buy $130 billion in goods and services yearly. American Management Systems Inc. won the SPS contract in 1997. The system was scheduled to be rolled out in March 2000, but has been plagued by delays and is likely to slip further, GAO officials said.

So far, SPS is used by about half the armed service's 42,000 contracting officers. A DOD inspector general report in March found that about 60 percent of users were dissatisfied with the system. GAO recommended that the Defense secretary base decisions about future SPS funding on demonstrated benefits "that exceed costs" and on "complete and reliable economic justifications."

DOD acting deputy chief information officer Margaret Myers, in a letter included in the report, said that though DOD concurs with parts of the report, "we disagree with the report's fundamental finding that the Standard Procurement System has not been justified."

"Requiring separate cost/benefit analysis and performance measures before each new software release or enhancement would increase the costs and increase the time needed to implement SPS," DOD said in its response.

About the Author

Christopher J. Dorobek is the co-anchor of Federal News Radio’s afternoon drive program, The Daily Debrief with Chris Dorobek and Amy Morris, and the founder, publisher and editor of the, a leading blog for the Federal IT community.

Dorobek joined Federal News Radio in 2008 with 16 years of experience covering government issues with an emphasis on government information technology. Prior to joining Federal News Radio, Dorobek was editor-in-chief of Federal Computer Week, the leading news magazine for government IT decision-makers and the flagship of the 1105 Government Information Group portfolio of publications. As editor-in-chief, Dorobek served as a member of the senior leadership team at 1105 Government Information Group, providing daily editorial direction and management for FCW magazine,, Government Health IT and its other editorial products.

Dorobek joined FCW in 2001 as a senior reporter and assumed increasing responsibilities, becoming managing editor and executive editor before being named editor-in-chief in 2006. Prior to joining FCW, Dorobek was a technology reporter at, one of the first online community centers for current and former government employees. He also spent five years at Government Computer News, another leading industry publication, covering a variety of federal IT-related issues.

Dorobek is a frequent speaker on issues involving the government IT industry, and has appeared as a frequent contributor to NewsChannel 8’s Federal News Today program. He began his career as a reporter at the Foster’s Daily Democrat, a daily newspaper in Dover, N.H. He is a graduate of the University of Southern California. He lives in Washington, DC.


  • Management
    shutterstock image By enzozo; photo ID: 319763930

    Where does the TMF Board go from here?

    With a $1 billion cash infusion, relaxed repayment guidelines and a surge in proposals from federal agencies, questions have been raised about whether the board overseeing the Technology Modernization Fund has been scaled to cope with its newfound popularity.

  • IT Modernization
    shutterstock image By enzozo; photo ID: 319763930

    OMB provides key guidance for TMF proposals amid surge in submissions

    Deputy Federal CIO Maria Roat details what makes for a winning Technology Modernization Fund proposal as agencies continue to submit major IT projects for potential funding.

Stay Connected