SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

CHANNEL BY TOPICS


QUICK LINKS




Obama Orders Federal Agencies to Cut Spending on Technology
GOVERNMENT TECHNOLOGY HOME
WHITEPAPERS
WEBINARS
EVENTS
LATEST NEWS
FREE eNEWSLETTER
SEE ALL GOVERNMENT TECHNOLOGY STORIES

Government Technology Featured Article

November 10, 2011

Obama Orders Federal Agencies to Cut Spending on Technology

By Erin Harrison, Executive Editor, Cloud Computing


In a step to cut waste and promote more efficient spending across the federal government, President Obama signed an Executive Order today directing government agencies to lower their spend on technology devices, printing, swag and vehicles by 20 percent.


The new order is a part of the “Campaign to Cut Waste” program which Obama announced back in June. According to a White House press release, this campaign has already saved about $3.5 billion in real estate costs and $5 billion on “no bid contract” spending.  

“At President Obama’s direction this administration has taken up an unprecedented effort to downsize the Federal real estate footprint, and is on track to save $3.5 billion in federal real estate costs by the end of fiscal year 2012,” the statement said. “The administration has cracked down on waste in contracting, cutting contracting spending for the first time in more than a dozen years and slashing spending on ‘no bid contracts’ by $5 billion.”

President Obama said, in a statement issued by the Office of the Press Secretary, that the U.S. can’t wait for Congress to act on the budget and get the country’s fiscal house in order.

“From the day I took office, I’ve said we’re going to comb the federal budget, line by line, to eliminate as much wasteful spending as possible.  That’s what the Campaign to Cut Waste is all about. We can’t wait for Congress to act – we can’t wait for them to get our fiscal house in order and make the investments necessary to keep America great. That’s why today, I’m signing an Executive Order that will build on our efforts to cut waste and promote more efficient spending across the government – we’re cutting what we don’t need so that we can invest in what we do need,” said President Obama.

Obama has some ambitious goals for technology savings, from cutting devices to limiting the production of hard copy documents and putting them online.

Some federal employees are issued more devices such as cell phones, smartphones, laptops and tablets than they need to fulfill their duties, the statement said, noting that in other cases, IT devices are purchased but go unused. 

“The Executive Order directs each agency to limit the number of devices issued to employees and establish new policies to ensure they are not paying for IT equipment that isn’t being used,” the statement said.

Citing examples of recent cuts, the White House said the Department of Homeland Security previously spent millions of dollars each year by paying for unused cell phones and air cards and now the agency conducts annual audits of use and has saved $10.5 million.

In addition, the Department of Commerce saved $1.8 million to date and will save a total of  $3 million this year by disconnecting 2,648 wireless lines showing no usage for the past three months – including those assigned to retirees and former staff – as well as by optimizing rate plans.

Additionally, under the order, federal agencies have 45 days to come up with a plan that will reduce their costs by 20 percent by 2013. 


Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TMCnet, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Edited by Rich Steeves


SEE ALL GOVERNMENT TECHNOLOGY STORIES
LATEST GOVERNMENT TECHNOLOGY NEWS

FEATURED ARTICLES





Technology Marketing Corporation

2 Trap Falls Road Suite 106, Shelton, CT 06484 USA
Ph: +1-203-852-6800, 800-243-6002

General comments: [email protected].
Comments about this site: [email protected].

STAY CURRENT YOUR WAY

© 2022 Technology Marketing Corporation. All rights reserved | Privacy Policy