OMB Needs To More Fully Consider Government-Wide Implications in Its Telecommunications Initiatives

Pursuant to a congressional request, GAO determined whether the Office of Management and Budget (OMB) has: (1) developed an overall telecommunications plan and policy; and (2) conducted studies, including cost/benefit analyses, on the impact of the American Telephone and Telegraph divestiture on government telecommunications operations. OMB is planning to permit agencies to acquire long-distance telecommunications service independently instead of using the centralized Federal Telecommunications System (FTS). GAO also ascertained the effect that the OMB initiative would have on H.R. 2718 and S. 2433, proposals to create an Information Technology (IT) Fund.

GAO found that, although OMB has made progress in carrying out its telecommunications responsibilities under the Paperwork Reduction Act, it is not placing enough emphasis on the governmentwide implications of its actions and the governmentwide issues arising from the new telecommunications environment. Regarding the proposed FTS initiative, GAO believes that OMB may not be sufficiently considering: (1) the costs and benefits of the current FTS compared to a decentralized system; (2) the initiative's effect on the proposed IT Fund; and (3) the national security and staffing implications of a decentralized system. GAO also noted that the initiative's effect on the proposed legislation would make additional funds available to cover the cost of equipment and services for FTS by increasing the General Services Administration's flexibility in raising capital. GAO concluded that the FTS initiative could result in reduced funding for the proposed IT fund.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Thomas P. Giammo Team: General Accounting Office: Information Management and Technology Division Phone: (202) 275-3195