The Office of Inspector General (OIG) at the Department of Transportation has announced that it will conduct an audit into the Department’s Information Technology (IT) service contracts.
IT services comprise one of the top categories of contract spending in the federal government, and the cost of contractor-supplied IT products and services is predicted to reach $116 billion by fiscal year 2024.
Recently, federal agencies have been encouraged to use agency-wide and shared services contracts to increase efficiency and consolidate buying power, among other benefits. While the Department of Transportation’s (DOT) Operating Administrations (OA) have historically managed their own IT contracts, DOT’s Office of the Chief Information Officer is transitioning to centralized contract vehicles for shared IT services—totaling over $1.8 billion—to support the OAs, excluding the Federal Aviation Administration.
OIG is initiating the audit given the high-dollar amounts associated with these contracts. Its objectives will be to assess the Department’s processes for awarding its IT shared services contracts and reviewing contractor charges.