Federal Software Licenses: Better Management Needed to Achieve Significant Savings Government-Wide
GAO-14-413
Published: May 22, 2014. Publicly Released: May 22, 2014.
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Highlights
What GAO Found
The Office of Management and Budget (OMB) and the vast majority of agencies that GAO reviewed do not have adequate policies for managing software licenses. While OMB has a policy on a broader information technology (IT) management initiative that is intended to assist agencies in gathering information on their IT investments, including software licenses, it does not guide agencies in developing comprehensive license management policies. Regarding agencies, of the 24 major federal agencies, 2 have comprehensive policies that include the establishment of clear roles and central oversight authority for managing enterprise software license agreements, among other things; 18 have them but they are not comprehensive; and 4 have not developed any. The weaknesses in agencies' policies were due, in part, to the lack of a priority for establishing software license management practices and a lack of direction from OMB. Without an OMB directive and comprehensive policies, it will be difficult for the agencies to consistently and effectively manage software licenses.
Federal agencies are not adequately managing their software licenses because they generally do not follow leading practices in this area. The table lists the leading practices and the number of agencies that have fully, partially, or not implemented them.
24 Major Agencies' Implementation of Software License Management Leading Practices
|
Leading practice |
Fully implemented |
Partially implemented |
Not implemented |
|
Centralized management |
4 |
15 |
5 |
|
Established software license inventory |
2 |
20 |
2 |
|
Tracking and maintain inventory |
0 |
20 |
4 |
|
Analyzing software license data |
0 |
15 |
9 |
|
Providing sufficient training |
0 |
5 |
19 |
Source: GAO analysis of agency data.
The inadequate implementation of leading practices in software license management was partially due to weaknesses in agencies' policies. As a result, agencies' oversight of software license spending is limited or lacking, and they may miss out on savings. The potential savings could be significant considering that, in fiscal year 2012, one major federal agency reported saving approximately $181 million by consolidating its enterprise license agreements even though its oversight process was ad hoc.
Given that agencies lack comprehensive software license inventories that are regularly tracked and maintained, GAO cannot accurately describe the most widely used software applications across the government, including the extent to which they were over and under purchased. Further, the data provided by agencies regarding their most widely used applications had limitations. Specifically, (1) agencies with data provided them in various ways, including by license count, usage, and cost; (2) the data provided by these agencies on the most widely used applications were not always complete; and (3) not all agencies had available data on the most widely used applications. Until weaknesses in how agencies manage licenses are addressed, the most widely used applications cannot be determined and thus opportunities for savings across the federal government may be missed.
Why GAO Did This Study
The federal government plans to spend at least $82 billion on IT products and services in fiscal year 2014, such as software licenses. Federal agencies engage in thousands of licensing agreements annually. Effective management of software licenses can help avoid purchasing too many licenses that result in unused software.
GAO was asked to review federal agencies' management of software licenses. GAO (1) assessed the extent to which OMB and federal agencies have appropriate policies on software license management, (2) determined the extent to which agencies adequately manage licenses, and (3) described agencies' most widely used software and extent to which they were over or under purchased. GAO assessed policies from 24 agencies and OMB against sound licensing policy measures. GAO also analyzed and compared agencies' software inventories and management controls to leading practices, and interviewed responsible officials. To identify sound licensing policy measures and leading practices, GAO interviewed recognized private sector and government software license management experts.
Recommendations
GAO recommends OMB issue a directive to help guide agencies in managing licenses and that the 24 agencies improve their policies and practices for managing licenses. OMB disagreed with the need for a directive, but GAO believes it is needed, as discussed in the report. Most agencies generally agreed with the recommendations or had no comments.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of Management and Budget | The Director of the OMB should issue a directive to the agencies on developing comprehensive software licensing policies comprised of the seven elements identified in this report. |
In June 2016, the Office of Management and Budget (OMB) issued guidance to improve federal agencies' software license management practices. The OMB guidance, among other things, comprises the seven elements that a comprehensive software licensing policy should specify, as GAO recommended in May 2014. For example, the guidance requires agencies to maintain a continual agency-wide inventory of software licenses and leverage IT to support processes for compiling and maintaining software license inventories. In addition, OMB's guidance calls for agencies to analyze inventory data to ensure compliance with software license agreements, consolidate redundant applications, and identify other cost-saving opportunities. As a result, federal agencies should have adequate policies for consistently and effectively managing software licenses and be able to take advantage of opportunities to systematically identify software license related cost savings across agencies and the federal government.
|
| Department of Agriculture | To ensure the effective management of software licenses, the Secretary of Agriculture should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
In July 2018, the Department of Agriculture (USDA) demonstrated it has taken steps to create a department wide software license management policy. Specifically, USDA has revised and expanded on existing departmental regulation that establishes comprehensive guidelines for software license management. For example, the draft departmental manual and regulation addresses the weaknesses identified in our report, including establishing procedures for managing USDA licensed IT software to track and manage licensed software. By implementing this recommendation, the department is better able to ensure that it consistently and cost-effectively managing its software throughout the department.
|
| Department of Agriculture | To ensure the effective management of software licenses, the Secretary of Agriculture should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
The Department of Agriculture (USDA) implemented GAO's recommendation by employing a centralized software licenses approach that is coordinated and integrated with key USDA personnel. For example, USDA established a Software Category Manager and Category Management Team responsible for the oversight of all of the software licenses enterprise agreements. In addition, USDA has established Enterprise IT Category Management guidance to support the central oversight authority within the department for managing enterprise software license agreements. By employing a centralized software license management approach, USDA should be able to more consistently and cost-effectively make agency-wide decisions on software licenses.
|
| Department of Agriculture | To ensure the effective management of software licenses, the Secretary of Agriculture should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In October 2017, the US Department of Agriculture (Agriculture) demonstrated that it has implemented a tool to establish the department's software license inventory. In addition, Agriculture provided examples of the types of reports that can be generated by the software inventory tool, including reports on: 1) the software license count by product and version, 2) products by each computer, and 3) top publishers whose products are used by the department. Agriculture also provided background information on the software inventory tool, including its capabilities, platform components, architecture, and update schedule. As a result of implementing a department-wide inventory of software licenses, Agriculture is more likely to be able to ensure compliance with software license agreements, allow for agency-wide visibility that consolidates redundant applications, and enable the identification of cost-saving opportunities.
|
| Department of Agriculture | To ensure the effective management of software licenses, the Secretary of Agriculture should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In October 2017, the US Department of Agriculture (Agriculture) demonstrated that it uses its software inventory tool to track and maintain a comprehensive inventory of software licenses. Specifically, Agriculture obtains cost data from USASpending.gov and then compares it to data from the software inventory tool. For example, Agriculture can track software product usage data such as the date of last usage and number of times used for each of almost 6,500 Agriculture computers. Then Agriculture can follow up with users to determine if license is still necessary. As a result, Agriculture is in a better position to ensure that the agency has the appropriate number of licenses for each item of software in accordance with current use.
|
| Department of Agriculture | To ensure the effective management of software licenses, the Secretary of Agriculture should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In October 2017, the US Department of Agriculture (Agriculture) demonstrated that it is using agency-wide data to identify opportunities for contract consolidation and reduction in licenses. For example, Agriculture showed that between 2016 and 2017 it was able to save $85,000 dollars on a software product by consolidating all of the agency's contracts for the product. In addition to the cost savings, the consolidation effort improved the agency's security by bringing all users up to the latest version of software. In another example, Agriculture showed how it has analyzed the usage reports for different software and has found that by consolidating and sharing the services they can reduce the number of licenses needed and the overall cost to the department. According to Agriculture, they are currently working with procurement to consolidate the order for this software product. As a result of these types of analyses, Agriculture is able to identify software license contract savings opportunities and make better investment decisions.
|
| Department of Agriculture | To ensure the effective management of software licenses, the Secretary of Agriculture should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In October 2017, the US Department of Agriculture (Agriculture) demonstrated that it is providing comprehensive training to personnel on software licensing management topics. Agriculture reported that its software license management team is comprised of four individuals, three of whom are currently certified Contract Officer Representatives, with the fourth in the process of obtaining that certification. Agriculture provided supporting documentation to show that the team has attended classes regarding contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. As a result, Agriculture will be able to develop the skills and knowledge of employees so they can perform their roles more effectively and efficiently.
|
| Department of Commerce | To ensure the effective management of software licenses, the Secretary of Commerce should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
In April 2018, the Department of Commerce (Commerce) demonstrated it has taken steps to create a department wide software license management policy. Specifically, Commerce issued a directive for each of its bureaus to provide their current software license management policies. Based on these policies, in March 2018, Commerce issued a department-wide software license management policy that addressed the weaknesses identified in our report, including regularly track and maintain enterprise software licenses to assist the department in implementing decisions throughout the software license management lifecycle. By implementing this recommendation, the department is better able to ensure that it is consistently and cost-effectively managing its software throughout the department.
|
| Department of Commerce | To ensure the effective management of software licenses, the Secretary of Commerce should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
The Department of Commerce's (Commerce) Software License Management Policy effective March 2018 states that the department's Chief Information Officer shall appoint an enterprise software manager who will develop an enterprise software license management centralization plan and regularly track and maintain enterprise software licenses. The policy states that the bureaus' Chief Information Officer will then designate a bureau level software manager to collect and maintain information about their software licenses and support the software license management lifecycle within each bureau. The information collected will be reported to the department's software manager. By employing a centralized software license management approach, Commerce should be able to more consistently and cost-effectively make agency-wide decisions on software licenses.
|
| Department of Commerce |
Priority Rec.
To ensure the effective management of software licenses, the Secretary of Commerce should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
The Department of Commerce (Commerce) demonstrated that it has gathered information on all bureaus' inventories of software licenses. Specifically, in February 2017 Commerce reported that it had completed an initial license inventory that included the total number of licenses purchased and the cost for the purchase of the licenses for each of the bureaus. As a result of implementing a department wide inventory of software licenses, Commerce is more likely to be able to ensure compliance with software license agreements, allow for agency wide visibility that consolidates redundant applications, and enable the identification of cost-saving opportunities.
|
| Department of Commerce | To ensure the effective management of software licenses, the Secretary of Commerce should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In May 2020, the Department of Commerce demonstrated that it uses its software inventory tools to track and maintain a comprehensive inventory of software licenses. Specifically, the Office of the CIO identified automated tools being used for software inventory collection and the frequency these tools are being used by the five departmental bureaus. For example, one of the tools used by the Census Bureau to provide software discovery is tracked and maintained on a weekly and on-demand basis. As a result, the department is in better position to ensure that the agency has the appropriate number of licenses for each item of software in accordance with current use.
|
| Department of Commerce | To ensure the effective management of software licenses, the Secretary of Commerce should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In October 2017, the Department of Commerce (Commerce) reported that its Enterprise Services Acquisition team has been using agency-wide software license data to identify opportunities to reduce costs. Commerce reported that the use of blanket purchase agreements resulted in over $27 million in savings between May 2015 and October 2017. As a result of these types of analyses, Commerce is able to identify software license contract savings opportunities and make better investment decisions.
|
| Department of Commerce | To ensure the effective management of software licenses, the Secretary of Commerce should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In May 2020, the Department of Commerce demonstrated that it provided software license management training to appropriate agency personnel. Specifically, the agency provided training to individuals from 11 bureaus and offices addressing acquisition and vendor management, overview of software license management, among other topics. According to the department, it is also planning to make the training mandatory for new employees and contractors, with annual requirements. As a result, the department has taken steps to enable its employees to develop the skills and knowledge to perform their software license management roles effectively and efficiently.
|
| Department of Defense | To ensure the effective management of software licenses, the Secretary of Defense should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified |
DOD partially concurred with our recommendation. In its written response to our draft report, the department stated that a license management policy is necessary to address the weaknesses we identified; and that the majority of license spending and/or enterprise-wide licenses should be managed using an approach that is coordinated and integrated with key personnel. However, DOD stated it does not concur that a centralized management approach is appropriate for the size and complexity of the department. We reported that in order to take advantage of economies of scale, a single entity should have access to department-wide software license data. In October 2017, DOD reported that it had addressed this recommendation and provided a software inventory license reporting plan. Subsequently, in July 2018, the department's Chief Information Officer established policy that addresses the majority of the weaknesses we reported and in September 2018, originated a directive intended to increase centralization of software license acquisition and management. By implementing this recommendation, the department is better able to ensure that it consistently and cost-effectively managing its software throughout the department.
|
| Department of Defense | To ensure the effective management of software licenses, the Secretary of Defense should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
The Department of Defense (Defense) has taken actions to implement a centralized software license management approach. For example, in October 2017 the department provided evidence that the DOD Chief Information Officer (CIO) is leveraging the Defense Enterprise Software Initiative and joint enterprise license agreement efforts, which are centrally managed by the Defense Information Systems Agency, to coordinate centralized acquisitions for licenses that are commonly purchased across Defense. The Defense CIO also issued memorandums in November 2015 and January 2016 directing department-wide migration to one operating system by January 2017, which will support an enterprise approach for centrally coordinating software license management. As a result, Defense will be more likely to effectively centralize software license record keeping and allow for agency-wide visibility that consolidates redundant applications and identification of other cost-saving opportunities.
|
| Department of Defense | To ensure the effective management of software licenses, the Secretary of Defense should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
DOD partially concurred with our recommendation. In its written response to our draft report, the department noted that inventory data should be collected for agency software licenses purchased and/or enterprise-wide licenses; and that effective license management requires regular tracking and maintaining of inventory data using automated tools and metrics. However, the department stated it does not concur that maintaining an inventory comprising the majority of software regardless of dollar value is required. We noted that a comprehensive inventory should represent the majority of the agency's software license spending and/or enterprise licenses to allow the department visibility that reduces redundant applications and identification of other cost saving opportunities. In October 2017, DOD reported that it had addressed this recommendation. Specifically, the department had completed a software inventory license reporting plan that outlined the actions to be taken to develop the software license inventory and, in May 2018, DOD reported on its initial software inventory status for installed application inventory including the vendor product, version, and license count. As a result of implementing a department-wide inventory of software licenses, DOD is more likely to be able to ensure compliance with software license agreements, allowing for visibility that consolidates redundant applications, and enables the identification of cost-saving opportunities.
|
| Department of Defense | To ensure the effective management of software licenses, the Secretary of Defense should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
DOD partially concurred with our recommendation. In its written response to our draft report, the department noted inventory data should be collected for agency software licenses purchased and/or enterprise-wide licenses; and that effective license management requires regular tracking and maintaining of inventory data using automated tools and metrics. However, the department stated it does not concur that maintaining an inventory comprising the majority of software regardless of dollar value is required. We noted that a comprehensive inventory should represent the majority (80 percent) of the agency's software license spending and/or enterprise licenses to allow the department visibility that reduces redundant applications and identification of other cost saving opportunities. In October 2017, DOD reported that it had addressed this recommendation. For example, DOD reported that it has completed a software inventory license reporting plan and continues to automate security domains for asset management. In December 2018, DOD provided documentation to support these statements along with examples of its monthly software inventory scorecards. As a result, DOD is in better position to ensure that the agency has the appropriate number of licenses for each item of software in accordance with current use.
|
| Department of Defense | To ensure the effective management of software licenses, the Secretary of Defense should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
DOD concurred with our recommendation. In its written response to our draft report, the department noted that it will analyze existing agency wide selected software license data and use the findings of the analysis to identify opportunities to reduce costs and inform decision-making about how to proceed with planning a department-wide reporting capability. In October 2017, DOD reported that it had addressed this recommendation and in August 2018, provided evidence of their efforts to implement this recommendation. For example, DOD provided an example to illustrate its analysis of software inventory, usage and purchasing data to improve software utilization, and to assess opportunities to improve pricing and license terms and conditions. As a result of these types of analyses, DOD is able to identify software license cost saving opportunities and make better investment decisions.
|
| Department of Defense | To ensure the effective management of software licenses, the Secretary of Defense should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In October 2017, the Department of Defense (Defense) demonstrated that it has provided software license management training in a variety of areas to agency personnel during fiscal years 2015 through 2017. For example, Defense demonstrated that it has added a new webinar training session on software license management and developed a two-day in-person training course on strategic vendor management that introduces participants to category management best practices for commercial software. The webinars and two-day sessions were attended by over 600 personnel in fiscal years 2016 and 2017. Defense also conducted other training on commercial software licensing which was provided to over 340 personnel in fiscal years 2016 and 2017. In addition, Defense provided documentation that it provided access to web-based software licensing resources to Defense personnel. For example, between fiscal years 2015 and 2017 its software licensing training videos were accessed almost 200,000 times, and its software licensing tool kits and white papers were accessed over 63,000 times. Finally, in October 2017 Defense provided evidence that it is providing training in the areas of contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management, as recommended by GAO. As a result, Defense should be able to develop the skills and knowledge of employees so they can perform their roles more effectively and efficiently.
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| Department of Education | To ensure the effective management of software licenses, the Secretary of Education should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
In August 2018, the Department of Education demonstrated it has taken steps to create a department-wide software license management policy. For example, Education's draft Software Asset Management and Acquisition Policy directive addresses the weaknesses we identified in our report including identifying clear roles, responsibilities, and central oversight authority within the department for managing enterprise software license agreements and commercial software licenses. By implementing this recommendation, the department is better able to ensure that it consistently and cost-effectively managing its software.
|
| Department of Education | To ensure the effective management of software licenses, the Secretary of Education should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
The Department of Education has employed a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. This centralized approach is delineated in the department's Software Asset Management and Acquisition Policy which among other things, calls for centralized record keeping and management of software license information by the Office of the Chief Information Office. As a result, the department should be able to more effectively manage its agency-wide software licenses.
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| Department of Education | To ensure the effective management of software licenses, the Secretary of Education should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
The Department of Education concurred with, and took actions to establish an inventory of software licenses using automated tools for its enterprise-wide licenses. In addition, Education's directive on Software Asset Management and Acquisition Policy requires the department to regularly track and maintain its comprehensive inventory of software licenses using automated tools and metrics. A comprehensive inventory should help the department ensure compliance with software license agreements, and identify cost-saving opportunities.
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| Department of Education | To ensure the effective management of software licenses, the Secretary of Education should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
The Department of Education concurred with, and took actions to implement this recommendation. The department's Software Asset Management and Acquisition Policy and its Software Asset Management Tool Implementation Plan include procedures for regularly tracking and maintaining an inventory using automated tools and metrics. For example, the Software Asset Management Tool Implementation Plan calls for the generation of reports showing licensing usage, cost, and under/over usage of software licensing. In addition, the department provided evidence that it has begun to regularly track software license data, such as the Federal Student Aid (FSA) Usage report, that show the number of licenses FSA has purchased and the number of licenses FSA has in use. As a result, the department can better ensure that it has the appropriate number of licenses for each item of software in use to reconcile with current use.
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| Department of Education | To ensure the effective management of software licenses, the Secretary of Education should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In October 2017, the Department of Education provided audit reports showing the analysis of software license data, associated costs, and cost savings. For example, Education estimated that it saved $683,643.00 in fiscal year 2017 by reducing the number of licenses needed, changing the software edition to a cheaper version, negotiating with vendors, and not renewing unneeded licenses. As a result, Education is able to identify software license contract savings opportunities and make better investment decisions.
|
| Department of Education | To ensure the effective management of software licenses, the Secretary of Education should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
The Department of Education demonstrated that it provided staff with software license training, including training on its software tracking database. More recently, in August 2018, the department drafted a revised Software Asset Management and Acquisition directive that requires the Office of the Chief Information Officer Information Technology Program Services to provide training to all employees on compliance with executive order on computer software piracy and software asset management and acquisition policy.As a result, the department's staff involved in managing software licenses should have the skills and knowledge to better perform their roles effectively and efficiently.
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| Department of Energy | To ensure the effective management of software licenses, the Secretary of Energy should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
In March 2018, the Department of Energy (Energy) established a Software Management Centralization and Acquisition Plan that outlined an approach for implementing a comprehensive software asset management framework. The plan includes employing a centralized software license management strategy, and developing and maintaining a complete software license inventory of purchased and deployed licenses. As a result, Energy should be able to more effectively manage its software licenses.
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| Department of Energy | To ensure the effective management of software licenses, the Secretary of Energy should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
The Department of Energy (Energy)'s Software Management Centralization and Acquisition Plan outlined an approach for coordinating and integrating with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. The plan also states that in fiscal year 2018, Energy will appoint a software manager and work collaboratively with the Chief Financial Officer, Chief Acquisition Officer, and Program Offices to identify key stakeholders and establish a software asset management program. By employing a centralized software license management approach, Energy should be able to more consistently and cost-effectively make agency-wide decisions on software licenses.
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| Department of Energy | To ensure the effective management of software licenses, the Secretary of Energy should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
The Department of Energy (Energy) took action to implement this recommendation. In August 2017, the department conducted a baseline inventory of software licenses that included the number of licenses purchased and used for the majority of agency software license spending and/or enterprise-wide licenses. As a result, Energy is more likely to be able to ensure compliance with software license agreements, allow for agency wide visibility that consolidates redundant applications, and enable the identification of cost-saving opportunities.
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| Department of Energy | To ensure the effective management of software licenses, the Secretary of Energy should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In May 2018, the Department of Energy developed a software management centralization and acquisition plan that outlined an approach for how the department will routinely track and maintain a department-wide inventory of its software licenses using automated tools and how Energy will analyze this information to facilitate better spending across the department on an annual basis. Subsequently, in August 2018, the department provided evidence that it had implemented automated tools for software asset management, configuration system management, and vulnerability management to track all devices and related software. As a result, Energy is in a better position to ensure that the agency has the appropriate number of licenses for each item of software in accordance with current use.
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| Department of Energy | To ensure the effective management of software licenses, the Secretary of Energy should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
The Department of Energy (Energy) reported that its approach is to look at opportunities to further consolidate contract spend to achieve savings by leveraging best pricing with existing contracts and evaluating cross-vendor optimization as well as the feasibility of migrating users to a new provider to further optimize. For example, in February 2018, the department reviewed its IT software acquisition and licensing spending for Microsoft and Oracle and identified opportunities for potential cost savings of 10-20 percent of its IT spend. As a result of these reviews, the department is able to identify software license cost savings opportunities and make better investment decisions.
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| Department of Energy | To ensure the effective management of software licenses, the Secretary of Energy should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
As of April 2018, the Department of Energy provided evidence that it has training courses in contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. As a result, the department has taken steps to enable its employees to develop the skills and knowledge to perform their software license management roles effectively and efficiently.
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| Department of Health and Human Services | To ensure the effective management of software licenses, the Secretary of Health and Human Services should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
In April 2018, the Department of Health and Human Services (HHS) reported that it has a draft Software Asset Management policy to enable a consistent and systematic approach to software license management that addresses all phases of the software license management lifecycle. The draft policy specifies responsibilities for key personnel and standardizes processes and procedures for managing software assets from procurement through deployment and monitoring. HHS is working to implement the Software Asset Management policy across the Department. Additionally, HHS has incorporated software license inventory management practices into the enterprise performance life cycle management process and quarterly integrated data calls. By implementing this recommendation, the department is better able to ensure that it is consistently and cost-effectively managing its software throughout the department.
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| Department of Health and Human Services | To ensure the effective management of software licenses, the Secretary of Health and Human Services should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
The Department of Health and Human Services (HHS) implemented GAO's recommendation by employing a centralized software license management approach that is coordinated and integrated with key HHS personnel. For example, in its September 2015 HHS Federal Information Technology Acquisition Reform Act Implementation Plan, HHS outlined a strategy to ensure a centralized software license management approach for software license oversight, budgeting, and planning functions are coordinated across key areas such as finance, acquisitions, and information technology. Additionally, HHS has a software manager that is responsible for managing HHS strategy and operations related to implementation of the Enterprise Strategy for Software Management. As a result, HHS should be able to more consistently and cost-effectively make department-wide decisions on software licenses.
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| Department of Health and Human Services | To ensure the effective management of software licenses, the Secretary of Health and Human Services should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In November 2017, the Department of Health and Human Services (HHS) established its foundational software license inventory. The foundational inventory includes more than 12,000 publishers, representing more than 4 million individual software licenses. This inventory includes a listing of reported software licenses and their associated contract and agreement terms. In addition, HHS provided examples of automated tools used in developing the inventory and examples of the Office of the Chief Information Officer engaging with the operating division Chief Information Officers to verify and validate the submitted data. As a result of implementing a department-wide inventory of software licenses, HHS is more likely to be able to ensure compliance with software license agreements, allowing for visibility that consolidates redundant applications, and enables the identification of cost-saving opportunities.
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| Department of Health and Human Services | To ensure the effective management of software licenses, the Secretary of Health and Human Services should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics |
In November 2017, the Department of Health and Human Services (HHS) established its foundational software license inventory. The department demonstrated that it uses its software inventory tools to track and maintain a comprehensive inventory of software licenses. Specifically, the HHS Office of the Chief Information Officer is responsible for tracking and maintaining the enterprise-wide software license inventory on a quarterly basis. To do so, HHS primarily uses a quarterly Integrated Data Collection process, which is augmented by the automated tool that actively monitors all software installed on HHS devices connected to its network. The tool allows for real-time data tracking including the quantity and names of software products, and versions. As a result, HHS is in better position to ensure that the agency has the appropriate number of licenses for each item of software in accordance with current use.
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| Department of Health and Human Services | To ensure the effective management of software licenses, the Secretary of Health and Human Services should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In April 2018, the Department of Health and Human Services (HHS) reported that it had identified more than $250 million in cost avoidance through the software license inventory. For example, HHS identified three new enterprise software products to include in the Department's Information Systems Distribution and Procurement offerings which will be available enterprise-wide at a significantly reduced price. The program served over 96,000 users, and saved more than $45 million in fiscal year 2017 by consolidating redundant software purchases and generating enterprise agreements with volume discounts. Additionally, HHS conducts analysis of the software license inventory following each quarterly update to track changes in reported quantities and identify trends. For example, its February 2018 inventory analysis showed the top 20 publishers based on the number of licenses reported and top publishers at selected operating divisions. As a result of these types of analyses, HHS is able to identify software license cost saving opportunities and make better investment decisions.
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| Department of Health and Human Services | To ensure the effective management of software licenses, the Secretary of Health and Human Services should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In May 2018, the Department of Health and Human Services (HHS) provided evidence that it offers training relevant to software license management including training on contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. Specifically, HHS reported that in fiscal year 2017, monthly offerings of 16 unique courses of varying levels and acquisition-related topics were offered. As a result, HHS has enabled its employees to develop the skills and knowledge to perform their software license management roles effectively and efficiently.
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| Department of Homeland Security | To ensure the effective management of software licenses, the Secretary of Homeland Security should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
In December 2017, the Department of Homeland Security (DHS) developed its Software Centralization Plan that outlines software management is the responsibility of the DHS Office of the Chief Information Officer and the Information Technology Services Office, Product and Services Delivery Management Division. Specifically, the management of software licenses is a distributed and shared responsibilities between the office, division, and component CIO organizations. The partnership is expected to provide an effective and efficient means to gain a comprehensive understanding of the licensing of software products, versions in inventory, and to utilize the expertise in software procurement planning and risk management. Additionally, in August 2016, DHS appointed a Software Manager to lead the agency-wide efforts to identify best practices, strategies, milestones, and activities for DHS. As a result, the department should be able to more effectively manage its agency-wide software licenses.
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| Department of Homeland Security | To ensure the effective management of software licenses, the Secretary of Homeland Security should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In September 2016, the Department of Homeland Security (DHS) completed its baseline inventory using software asset management tools for 80 percent of the department's software licenses. The department provided documentation showing that the baseline inventory including product purchases, quantity and cost data. DHS reported that the Product and Services Delivery Management Division validated the inventory based on tracking commodity IT spending, including software asset spending, across DHS. DHS also has plans to deploy a real time software asset management capability that will further promote greater software management of software licenses purchased, deployed, and in use. A comprehensive inventory will better ensure compliance with software license agreements, and allow the department visibility that reduces redundant applications and identification of other cost saving opportunities.
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| Department of Homeland Security | To ensure the effective management of software licenses, the Secretary of Homeland Security should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In September 2016, the Department of Homeland Security (DHS) established its baseline software asset inventory using software asset management tools. The department has demonstrated that it uses its software inventory tools and metrics to track and maintain an inventory of software licenses on a regular basis. For example, the DHS Chief Information Officer manages software assets leveraging and normalizing data between three systems including a systems management tool that produces weekly reports for its enterprise software licenses. The department has also taken steps to incrementally implement a tool to transition this tracking and maintaining throughout the DHS IT infrastructure to better inform departmental opportunities for cost savings advantages. As a result, DHS is in better position to ensure that the agency has the appropriate number of licenses for each item of software in accordance with current use.
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| Department of Homeland Security | To ensure the effective management of software licenses, the Secretary of Homeland Security should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In September 2017, the Department of Homeland Security (DHS) reported that it had taken a three phased approach to analyzing software license data including establishing the IT Category Management Working group to improve the quality of capabilities delivered, and result in cost savings, among other things, as well as leveraging its automated tools to address the data collection process. Subsequently, in August 2018, DHS demonstrated that it was using its tool to compare installed software by product and component, software vendor analysis, and analysis of components' top 100 vendors. DHS reported that its target savings from these efforts is a cumulative total of $553 million savings in software license costs by the end of fiscal year 2021. As a result of these types of analyses, the department will be able to identify software license savings opportunities and make better investment decisions.
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| Department of Homeland Security | To ensure the effective management of software licenses, the Secretary of Homeland Security should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In May 2014, the Department of Homeland Security concurred with this recommendation. In August 2015, the department provided evidence that it had developed software license management training that is available for the appropriate personnel. The training addresses contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. The department stated that the target training audience is agency personnel who are involved in managing software licenses such as project managers and members of the DHS Enterprise License Agreements. As a result, DHS staff involved in managing software licenses should have the skills and knowledge to perform their roles effectively and efficiently.
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| Department of Housing and Urban Development | To ensure the effective management of software licenses, the Secretary of Housing and Urban Development should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified |
In December 2017, the Department of Housing and Urban Development developed an IT asset management policy that established the business rules and guidelines for managing IT assets including software licenses that addresses the weaknesses we identified. For example, the policy states that the department shall establish a comprehensive IT asset inventory by identifying and collecting information using automated discovery and inventory tools. By implementing this recommendation, the department is better able to ensure that it consistently and cost-effectively managing its software throughout the department.
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| Department of Housing and Urban Development | To ensure the effective management of software licenses, the Secretary of Housing and Urban Development should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In March 2019, the Department of Housing and Urban Development provided documentation showing that it had implemented a solution to generate and maintain an inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise wide licenses. For example, the inventory tracking is accomplished through its automated tools that runs scans on a weekly basis and identifies any additions or deletions. As a result, the agency is better able to ensure that it has the appropriate number of license for each item of software in use to reconcile with current use.
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| Department of Housing and Urban Development | To ensure the effective management of software licenses, the Secretary of Housing and Urban Development should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In February 2018, the Department of Housing and Urban Development reported on actions taken to implement this recommendation including the development of an analysis to support acquisition and deployment of an automated software license management capability. In March 2019, the department provided documentation showing that it uses the data in the software inventory to make strategic decisions on how to reduce cost and better informed investment decision making. For example, the department reported that it has identified $1.4 million in cost savings and avoidance utilizing its current inventory and processes. As a result, the department is able to identify opportunities to reduce costs and better inform investment decision-making.
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| Department of Housing and Urban Development | To ensure the effective management of software licenses, the Secretary of Housing and Urban Development should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In March 2019, the Department of Housing and Urban Development provided documentation showing that the department is working to provide training to agency personnel. For example, the department has worked with the Department of Defense to offer Defense's Enterprise Software Initiative sponsored software license management training to staff. The department also reports that it continues to work with peer agencies to identify opportunities to access required software management skills and other required training. As a result, the department will be able to develop the skills and knowledge of employees so they can perform their roles more effectively and efficiently.
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| Department of the Interior | To ensure the effective management of software licenses, the Secretary of the Interior should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
On April 3, 2018, the Department of Interior developed and issued the department's Software Asset Management Policy that is comprised of the core elements of software management including establishing a comprehensive inventory, tracking and maintaining information about IT software license agreements and software installed on systems and devices using automated discovery and inventory tools. As a result, the department should be able to more effectively manage its agency-wide software licenses.
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| Department of the Interior | To ensure the effective management of software licenses, the Secretary of the Interior should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
On April 3, 2018, the Department of Interior developed and issued the department's Software Asset Management policy that is comprised of core elements of software management including identifying roles and responsibilities and central oversight authority for managing enterprise software licenses that includes a software manager. Subsequently, in June 2018, the department developed the IT Software Assets Management guide that outlines the license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. By employing a centralized software license management approach, the department should be able to more consistently and cost-effectively make agency-wide decisions on software licenses.
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| Department of the Interior | To ensure the effective management of software licenses, the Secretary of the Interior should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
On June 29, 2018, the Department of Interior established a comprehensive baseline software inventory report using automated tools that consisted of evaluating approximately 3,000 unique software published titles installed on the department's devices. Of this total, Interior reported that it had acquired approximately 30 of these products as enterprise solutions and examined the top 20 publishers. As a result of establishing a baseline inventory of software licenses, the department is more likely to be able to ensure compliance with software license agreements, allow for agency-wide visibility that consolidates redundant applications, and enable the identification of cost-savings opportunities.
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| Department of the Interior | To ensure the effective management of software licenses, the Secretary of the Interior should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In July 2019, the Department of Interior demonstrated that it uses its software inventory tool to track and maintain a comprehensive inventory of software licenses. Specifically, the department uses automated tools to gather the data for the inventory reports and software inventory scans are scheduled to run on a regular basis. The department runs reports of installed applications by publisher and usage and uses the tool to obtain software inventory obligation data. The data is complied, analyzed, and then validated by the software asset managers. As a result, Interior is in a better position to ensure that the agency has the appropriate number of licenses for each item of software in accordance with current use.
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| Department of the Interior | To ensure the effective management of software licenses, the Secretary of the Interior should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making |
In fiscal year 2016, the Department of Interior analyzed its inventory of software license data, such as cost, benefits, and usage data, to identify opportunities to reduce costs by identifying unused software licenses products. As a result of these actions, in fiscal year 2016, the department realized cost avoidances of $921,000 by transferring unused products to Bureaus requiring the products.
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| Department of the Interior | To ensure the effective management of software licenses, the Secretary of the Interior should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In April 2018, the Department of Interior established a Software Asset Management policy that requires its IT software managers to provide role based training relevant to software license management to appropriate agency personnel. Additionally, the department provides training to its workforce on number types of acquisition actions and projects, including software licenses. These include training that addresses contract terms and conditions, negotiations, laws and regulations, and acquisition. As a result, Interior has enabled its employees to develop the skills and knowledge to perform their software license management roles effectively and efficiently.
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| Department of Justice | To ensure the effective management of software licenses, the Attorney General should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
In February 2018, the Department of Justice's Chief Information Officer issued an IT policy memo designating the Assistant Director for Contracts Management, as the Department Software Asset Manager. Subsequently, on April 18, 2018, the CIO issued IT Policy defining requirements for software asset management, the role and responsibilities of the Software Asset Manager, and actions required by Components to comply with the policy. The policy addressed the weaknesses identified in our report such as establishing, tracking, and maintaining a comprehensive inventory. By establishing a comprehensive software licensing policy, the department is better able to ensure that it is consistently and cost-effectively managing its software throughout the department.
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| Department of Justice | To ensure the effective management of software licenses, the Attorney General should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
In February 2018, the Department of Justice (Justice) Chief Information Officer issued an IT policy memo designating the Assistant Director for Contracts Management, as the Department Software Asset Manager. Subsequently, on April 18, 2018, the CIO issued IT Policy defining the role and responsibilities of the Software Asset Manager. The policy states that the Software Asset Manager will maintain an agency-wide inventory of software licenses and track software license allocation and usage to drive software acquisition decision-making as well as use automated reporting capabilities to establish the inventory. As a result, Justice should be able to consistently and cost-effectively manage software throughout the department.
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| Department of Justice | To ensure the effective management of software licenses, the Attorney General should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In April 2018, the Department of Justice (Justice) demonstrated that it had established a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending. Specifically, Justice has an automated solution that is implemented across the department and collects installed software data from end user equipment and servers. Using this tool, the department collects over 8.8 million software asset records each week and provided support reflecting the quantify of all the department's enterprise software license purchased, including the cost for each software enterprise license agreement. A comprehensive inventory will better ensure compliance with software license agreements, and allow Justice visibility that reduces redundant applications and identification of other cost saving opportunities.
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| Department of Justice | To ensure the effective management of software licenses, the Attorney General should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In April 2018, the Department of Justice (Justice) provided documentation showing that it had implemented a solution to generate and maintain a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise licenses. For example, the Software Asset Manager receives software status reports on deployed software assets and software utilization. The data is loaded into the software license management database and compared to software ELA licenses purchased from its central contract office. Additionally, the department's IT acquisition review board reviews IT procurement requests to verify the need for the proposed software license purchases. As a result, the agency can ensure that it has the appropriate number of license for each item of software in use to reconcile with current use.
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| Department of Justice | To ensure the effective management of software licenses, the Attorney General should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In August 2018, the Department of Justice demonstrated that it was using its automated tools to collect installed software data from end user equipment and servers. For example, the data is loaded into its software license management database and compared to software enterprise license agreements purchased from its central contract office. Specifically, as part of its fiscal year 2019 software renewal cycle, the Contracting Officer Representatives utilized the software license database to review the software inventory; identify which licenses were available, and re-assign those available licenses to components which requested additional licenses. If components required licenses that were not available, then they completed the funding documents needed to purchase the additional licenses. As a result of these types of analyses, Justice is able to identify software license contract savings opportunities and make better investment decisions.
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| Department of Justice | To ensure the effective management of software licenses, the Attorney General should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In April 2018, Justice reported that the department has made progress in providing software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. In October 2018, the department demonstrated that it had developed and provided software license management training to appropriate agency personnel addressing the weaknesses we had identified in our report. As a result, Justice has enabled its employees to develop the skills and knowledge to perform their software license management roles effectively and efficiently.
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| Department of Labor | To ensure the effective management of software licenses, the Secretary of Labor should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In October 2017, the Department of Labor provided documentation showing that it had implemented a software solution that generates an agency-wide inventory of software assets. A comprehensive inventory will better ensure compliance with software license agreements, and allow the department visibility that reduces redundant applications and identification of other cost saving opportunities.
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| Department of Labor | To ensure the effective management of software licenses, the Secretary of Labor should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In October 2017, the Department of Labor provided documentation showing that it had implemented a software solution that generates an agency-wide inventory of software assets. As a result, the agency can ensure that it has the appropriate number of licenses for each item of software in use to reconcile with current use.
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| Department of Labor | To ensure the effective management of software licenses, the Secretary of Labor should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In October 2017, Labor reported that it had developed a departmental cross-functional team, including personnel from acquisitions, contracts, user service management, and finance, which evaluates software consolidation opportunities. According to Labor officials, the team's efforts have led to the consolidation of contracts for over 40 department-wide software companies, and identified and established enterprise-wide software agreements. For example, the agency analyzed its software license inventory and as a result consolidated seven separate licenses into a single enterprise-wide license agreement. According to agency officials, the consolidation minimizes the contracting administration effort and enables the agency to scale software license usage without a contract action. As a result of these analyses, Labor is able to identify software license contract savings opportunities and make better investment decisions.
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| Department of Labor | To ensure the effective management of software licenses, the Secretary of Labor should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In October 2017, the Department of Labor (Labor) reported and provided support that it had provided software license training, including automated tool training, software security and configuration management training and that it plans to provide further software management related training. Also, in April 2018, Labor reported it is currently in the process of developing and implement change management reform plan that will include annual configuration management training. As a result, Labor has enabled its employees to develop the skills and knowledge to perform their software license management roles effectively and efficiently.
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| Department of State | To ensure the effective management of software licenses, the Secretary of State should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
In April 2018, the Department of State developed a Software Asset Management Program plan that addressed the weaknesses identified in our report, including identifying clear roles, responsibilities, and central oversight authority within the department for managing enterprise software license agreements, and describing the goals and objectives of the software license management program. By implementing this recommendation, the department is better able to ensure that it consistently and cost-effectively managing its software.
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| Department of State | To ensure the effective management of software licenses, the Secretary of State should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
In April 2018, the department drafted a software management centralization plan to formulate a centralized enterprise software licensing approach that allows coordination and integration of key personnel from acquisitions, business management and planning, Chief Information Officer, the IT operations directorate, and financial management division to regular track and maintain software license spending. According to the draft plan, the centralized software asset management will maintain a continual inventory of software licenses, including all license purchased, deployed, in use, and recently retired. Also, the department's Software Asset Management Program Plan dated April 30, 2018 sates that the details of the software license inventory will be normalized and centrally stored in a repository. By employing a centralized software license management approach, State should be able to more consistently and cost-effectively make agency-wide decisions on software licenses.
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| Department of State | To ensure the effective management of software licenses, the Secretary of State should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In fiscal year 2017, the Department of State used a number of existing automated discovery tools to collect and develop an inventory of software licenses. By leveraging and integrating existing tools the department confirmed 80 percent of software license spend in fiscal year 2017. The department plans to transition to a centralized software asset management tool by March 2020 to have an improved, more consolidated, user-friendly view into the software on their network. A comprehensive inventory will better ensure compliance with software license agreements, and allow agency-wide visibility that can help consolidate redundant applications and the identification of other cost-saving opportunities.
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| Department of State | To ensure the effective management of software licenses, the Secretary of State should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In October 2018, the Department of State reported that it transitioned to an automated tool to track and maintain its inventory. According to the department's software management centralization plan, it plans to generate automated reports on a weekly basis to aggregate and normalize license data and as collection and analysis matures through the automated toolset, the frequency will change to monthly or specific future needs. The software asset management reports provided by the department include license cost and publisher data. As a result, the department is in better position to ensure that it has the appropriate number of licenses for each item of software in accordance with current use.
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| Department of State | To ensure the effective management of software licenses, the Secretary of State should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In May 2018, the department demonstrated that it is using agency-wide data to identify opportunities for software cost savings. For example, the department was able to identify cost savings of $108 million in fiscal year 2017 and $11 million in fiscal year 2016 by reviewing its spend against validated requirements from system and business owners and engaging with software personnel to explore procurement and licensing options to reduce costs. The department also has reported that once the centralized automated tool is in place, it can leverage the new tool to better analyze agency wide software license usage and data usage to make cost effective decisions. As a result of these reviews, the department is able to identify software license cost savings opportunities and make better investment decisions.
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| Department of State | To ensure the effective management of software licenses, the Secretary of State should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In June 2019, the Department of State provided supporting documentation of software license management training provided to appropriate agency personnel to address contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. As a result, the department's staff involved in managing software licenses should have the skills and knowledge to better perform their roles effectively and efficiently.
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| Department of Transportation | To ensure the effective management of software licenses, the Secretary of Transportation should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
As of January 2024, the department had not provided a documented policy for the management of software licenses that address the weaknesses we identified. According to department officials, they have onboarded an enterprise software license manager and expects to have an enterprise software license program plan and governance documentation published to its IT community by September 30, 2024. In July 2016, the MEGABYTE Act of 2016 was enacted, which codified this recommendation for all executive agencies (Pub. L. No. 114-210, 130 Stat. 824). We will follow up with the department to obtain evidence of the department-wide implementation of this recommendation.
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| Department of Transportation | To ensure the effective management of software licenses, the Secretary of Transportation should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
The Department of Transportation (DOT) implemented this recommendation. Specifically, DOT issued Order 1351.21 which provides procedures for employing a centralized software license management approach that is integrated with key personnel for department-wide Enterprise License Agreements (ELAs). In addition, DOT has assigned a software license manager position in accordance to the Federal Information Technology Acquisition Reform Act (FITARA) guidance, with responsibility to, among other duties, lead the agency-wide effort to centralize license management, implement strategies to reduce duplication and ensure the adoption of software management best practices. The software manager is also required to report to the agency CIO and work in collaboration with the offices of the CIO, CAO, CFO, and other organizations as appropriate. By employing a centralized software license management approach, DOT should be able to more consistently and cost-effectively make agency-wide decisions on software licenses.
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| Department of Transportation | To ensure the effective management of software licenses, the Secretary of Transportation should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
As of May 2018, the Department of Transportation (DOT) provided documentation showing that it had implemented automated solutions to generate a comprehensive inventory of software licenses for the majority of the agency's software license spending and/or enterprise wide licenses. For example, DOT's inventory includes software information for all operating administrations throughout the department. A comprehensive inventory will better ensure compliance with software license agreements, and allow DOT visibility that reduces redundant applications and identification of other cost saving opportunities.
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| Department of Transportation | To ensure the effective management of software licenses, the Secretary of Transportation should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In May 2018, the Department of Transportation (DOT) provided documentation showing that it had implemented a solution to generate and maintain a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise wide licenses. As a result, the agency can ensure that it has the appropriate number of license for each item of software in use to reconcile with current use.
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| Department of Transportation | To ensure the effective management of software licenses, the Secretary of Transportation should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In May 2018, the Department of Transportation (DOT) provided documentation showing that it regularly uses the data in the software inventory to make strategic decisions on how to reduce costs and better inform investment decision making. For example, in November 2017, the department conducted a pricing analysis of its Microsoft enterprise license agreements. Based on the analysis the department identified an opportunity to save about $1.5 million to $2.5 million per year on the upcoming enterprise licensing agreement renewal. As another example, the department provided evidence of how the software license information is used to generate future software license contracts. As a result, DOT is able to identify opportunities to reduce costs and better inform investment decision-making.
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| Department of Transportation | To ensure the effective management of software licenses, the Secretary of Transportation should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In September 2019, the Department of Transportation provided supporting documentation of software license management training provided to appropriate agency personnel to address contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. For example, the personnel representing IT and the Procurement Offices throughout the department attended the software license training. As a result, the department's staff involved in managing software licenses should have the skills and knowledge to better perform their roles effectively and efficiently.
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| Department of the Treasury | To ensure the effective management of software licenses, the Secretary of the Treasury should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
In April 2017, Treasury's Chief Information Officer and Senior Procurement Executive established a policy on software license management. The policy includes plans to employ a centralized software license management strategy, and developing and maintaining an agency wise software license inventory. Further, In March 2017, the Chief Information Officer appointed an IT Software Category Manager, who is responsible for managing all agency-wide software agreements and licenses. As a result, Treasury should be able to more effectively manage its agency-wide software licenses.
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| Department of the Treasury | To ensure the effective management of software licenses, the Secretary of the Treasury should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
On April 4, 2017, the Department of Treasury's Chief Information Officer and Senior Procurement Executive issued a joint memo on the department's software license management policy. Specifically, the policy states that the Chief Information Officer will employ a centralized software license management strategy that includes development of an approved list of software and an associated implementation plan. Additionally, in March 2016, the Chief Information Officer appointed an IT Software Category Manager who is responsible for managing all agency-wide software licenses. By employing a centralized software license management approach, the department should be able to more consistently and cost-effectively make agency-wide decisions on software licenses.
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| Department of the Treasury | To ensure the effective management of software licenses, the Secretary of the Treasury should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In April 2019, the Department of Treasury provided documentation showing that it had established an inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. For example, Treasury provided examples of the types of reports that can be generated by the software inventory tools, including reports on the software license count by product and version. As a result of implementing a department-wide inventory of software licenses, the department is more likely to be able to ensure compliance with software license agreements, allow for agency-wide visibility that consolidates redundant applications, and enable the identification of cost-saving opportunities.
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| Department of the Treasury | To ensure the effective management of software licenses, the Secretary of the Treasury should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In April 2019, the Department of Treasury provided documentation showing that it regularly tracks and maintains its inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. For example, Treasury provided documentation from its tool that collects data about software that is installed on desktops and enables customized querying and reporting on software deployment inventoried on a weekly basis. As a result, the department is in a better position to ensure that the agency has the appropriate number of licenses for each item of software in accordance with current use.
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| Department of the Treasury | To ensure the effective management of software licenses, the Secretary of the Treasury should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In April 2019, Department of Treasury provided documentation showing it conducts agency-wide analysis of software license data including on cost and usage of several publishers. The department also uses its automated tools and reports to create effective license positions of software licenses that validate deployed use. As a result, the department is better able to identify opportunities to reduce costs and inform investment decision-making regarding software license and maintenance purchases.
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| Department of the Treasury | To ensure the effective management of software licenses, the Secretary of the Treasury should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In April 2019, Department of Treasury provided supporting documentation of agency-wide training on software license management that was held on March 4, 2019. The training was provided to appropriate agency personnel addressing acquisition and vendor management, overview of software license management, among other topics. In addition, Treasury's software license management policy memo directs the Bureau Chief Information Officers to require that appropriate personnel are trained in software license management addressing the weaknesses we identified. As a result, the department's staff involved in managing software licenses should have the skills and knowledge to better perform their roles effectively and efficiently.
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| Department of Veterans Affairs | To ensure the effective management of software licenses, the Secretary of Veterans Affairs should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
In response to our recommendations, in July 2015, the department issued comprehensive software licensing policy that addressed the weaknesses identified in our report, including guidance for using analysis to better inform investment decision making. By establishing comprehensive software licensing policy, the Department is better able to ensure that it is consistently and cost-effectively managing its software throughout the Department.
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| Department of Veterans Affairs | To ensure the effective management of software licenses, the Secretary of Veterans Affairs should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
The Department of Veterans Affairs (VA) agreed with and implemented this recommendation. Specifically, in July 2015 VA issued Directive 6403, Software Asset Management, which documents the department's software license management policy and responsibilities for central management of agency-wide software licenses. VA's policy for the management of software addresses the weaknesses we identified. By implementing our recommendation, VA should be able to consistently and cost-effectively manage software throughout the department.
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| Department of Veterans Affairs | To ensure the effective management of software licenses, the Secretary of Veterans Affairs should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In August 2017, VA provided documentation showing that it had implemented a solution to generate a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise wide licenses. A comprehensive inventory will better ensure compliance with software license agreements, and allow VA visibility that reduces redundant applications and identification of other cost saving opportunities.
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| Department of Veterans Affairs | To ensure the effective management of software licenses, the Secretary of Veterans Affairs should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In August 2017, Veterans Affairs provided documentation showing that it had implemented a solution to generate and maintain a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise wide licenses. As a result, the agency can ensure that it has the appropriate number of licenses for each item of software in use to reconcile with current use.
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| Department of Veterans Affairs | To ensure the effective management of software licenses, the Secretary of Veterans Affairs should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In August 2017, Veterans Affairs (VA) provided documentation showing that it had implemented a solution to analyze agency-wide software license data, including usage and costs. For example, VA reported that it has identified approximately $65 million in cost savings over 3 years due to analyzing one of their software licenses. As a result, VA is able to identify opportunities to reduce costs and better inform investment decision-making.
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| Department of Veterans Affairs | To ensure the effective management of software licenses, the Secretary of Veterans Affairs should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In November 2017, Veterans Affairs (VA) provided documentation showing that it had implemented software management training. The training addresses various aspects of software license management, including terms and conditions, acquisition, security planning, and configuration management. As a result, VA has enabled its employees to develop the skills and knowledge to perform their software license management roles effectively and efficiently.
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| Environmental Protection Agency | To ensure the effective management of software licenses, the Adminitrator of the Environmental Protection Agency should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
In August 2019, the Environment Protection Agency developed a software management and piracy policy that addresses the weaknesses we identified. Specifically, the policy identifies roles and responsibilities for managing software licenses. The agency also developed procedures for tracking and maintaining software licenses. By implementing this recommendation, the department is better able to ensure that it is consistently managing its software throughout the department.
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| Environmental Protection Agency | To ensure the effective management of software licenses, the Adminitrator of the Environmental Protection Agency should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
In July 2023, the Environmental Protection Agency officials stated that it has a centralized governance and control for over 80 percent of software license purchases through two primary processes, including its Office of the Chief Information Officers' Working Capital Fund Shared IT services. Specifically, the Office of Information Technology Operations Director or Office of Information Technology Operations Deputy Director is responsible for approval of all IT software, including software licenses and maintenance. However, as of July 2024, the agency did not provide supporting evidence demonstrating that the agency's approach is coordinated and integrated with key personnel (e.g., the acquisition and IT management personnel responsible for software purchases and decisions) for the majority of agency software license spending and/or enterprise-wide licenses. In July 2016, the MEGABYTE Act of 2016 was enacted, which codified this recommendation for all executive agencies (Pub. L. No. 114-210, 130 Stat. 824). We will follow up with the agency to obtain supporting documents and continue to monitor its progress in implementing this recommendation.
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| Environmental Protection Agency | To ensure the effective management of software licenses, the Adminitrator of the Environmental Protection Agency should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In March 2020, the Environmental Protection Agency demonstrated that it established a comprehensive inventory of software licenses using an automated tool for the majority of the agency software licenses. For example, the agency uses this tool to track software at the user and computer level. As a result of implementing a department-wide inventory of software licenses, EPA is more likely to be able to ensure compliance with software license agreements, allow for agency-wide visibility that consolidates redundant applications, and enable the identification of cost-saving opportunities.
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| Environmental Protection Agency | To ensure the effective management of software licenses, the Adminitrator of the Environmental Protection Agency should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In March 2020, the Environment Protection Agency demonstrated that it is regularly tracking and maintaining a comprehensive inventory of software licenses using an automated tool. For example, the agency uses a tool to track software license at the user and computer level on a weekly basis, which includes data on last use and version. Additionally, the CIO shares the data on a dashboard with the agency's Information Security and Management Officers. As a result, EPA is in a better position to ensure that the agency has the appropriate number of licenses for each item of software in accordance with current use.
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| Environmental Protection Agency | To ensure the effective management of software licenses, the Adminitrator of the Environmental Protection Agency should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In May 2020, the Environment Protection Agency reported utilizing the software license spend and usage data through a visualization platform to identify opportunities to streamline buying and strategically source software procurements. The agency provided support showing examples of annual savings for Microsoft and Adobe software based on consolidating individual orders into a single EPA-wide contract. As a result of these types of analyses, EPA is able to identify software license contract savings opportunities and make better investment decisions.
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| Environmental Protection Agency | To ensure the effective management of software licenses, the Adminitrator of the Environmental Protection Agency should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
The Environment Protection Agency implemented this recommendation. In 2019, the agency reorganized its Office of Acquisition Management into the Office of Acquisition Services. This new office includes a dedicated division for IT acquisition and an explicit branch for software procurement. Personnel in this IT acquisition division take software license management related courses including 1) IT Acquisition - provides extensive coverage of such topics as computer software licenses, maintenance, alternatives analysis, risk analysis, & acquisition planning; and 2) Project Management Basics - introduces contracting professionals to the key knowledge and skills required to successfully plan, establish, and manage government programs and projects, including systems engineering and software management. With this additional training, agency's personnel involved with managing licenses should have improved skills and knowledge to perform their roles more effectively and efficiently.
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| General Services Administration | To ensure the effective management of its software licenses, the Adminitrator of the General Services Administration should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified |
The General Service Administration (GSA) agreed with, and has taken steps to implement this recommendation. Specifically, GSA has developed agency-wide policy for management of software licenses that addresses the weaknesses identified in our report. For example, in September 2015 GSA issued an order establishing a software license program that among other things identified clear roles, responsibilities, and central oversight authority within the administration for managing agency-wide software. In addition, the agency issued standard operating procedures for establishing a comprehensive inventory of software licenses using automated tools, regularly tracking and maintaining software licenses and analyzing software data to make cost-effective decisions. As a result, GSA will be able to more effectively manage its software licenses.
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| General Services Administration | To ensure the effective management of its software licenses, the Adminitrator of the General Services Administration should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
GSA agreed with this recommendation. In response, GSA established a comprehensive centralized inventory that incorporates elements of automated discovery and inventory tools that provide easy search and access to software license information, such as contract terms and agreement records. A comprehensive inventory will better ensure compliance with software license agreements, and allow GSA visibility that helps to reduce redundant applications and identify other cost-saving opportunities.
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| General Services Administration | To ensure the effective management of its software licenses, the Adminitrator of the General Services Administration should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
GSA agreed with, and has taken steps to implement this recommendation. GSA has implemented procedures requiring that it regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics; and update the inventory on a quarterly basis. As a result, the agency can ensure that it has the appropriate number of licenses for each item of software in use to reconcile with current use.
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| General Services Administration | To ensure the effective management of its software licenses, the Adminitrator of the General Services Administration should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
GSA agreed with, and has implemented this recommendation. GSA has analyzed its agency wide software license data to inform investment decisions. On a quarterly basis, GSA scans its agency-wide software inventory data to identify opportunities for software license consolidation opportunities and submits reports to GSA's information management. For example, in August 2016 provided evidence that it had analyzed its inventory of software license data and identified opportunities to consolidate several of its software products and identified an opportunity to establish an enterprise licensing agreement for one of its software products resulting in cost savings or cost avoidance totaling about five million dollars over about a three year period.
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| General Services Administration | To ensure the effective management of its software licenses, the Adminitrator of the General Services Administration should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
GSA agreed with, and has taken steps to implement the recommendation. Specifically, GSA has provided software license management training to appropriate agency personnel including training on contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. Sufficient software license management training should allow GSA employees to develop the skills and knowledge to perform their roles effectively and efficiently.
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| National Aeronautics and Space Administration | To ensure the effective management of software licenses, the Adminitrator of the National Aeronautics and Space Administration should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses identified. |
In response to our recommendation, in July 2017 NASA issued an Interim Directive on the management of software licenses that addresses the weaknesses identified in our report. For example, the Directive requires personnel involved in software license management to complete NASA's software management training. In addition, the Directive addresses the software license management life-cycle phases. As a result, NASA should be able to more effectively manage its agency-wide software licenses.
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| National Aeronautics and Space Administration | To ensure the effective management of software licenses, the Adminitrator of the National Aeronautics and Space Administration should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
In response to our recommendation, in July 2017 NASA issued an Interim Directive which documents the administration's software license management policy including roles and responsibilities for central management of agency-wide software licenses. In addition, in May 2017 NASA's Administrator issued a memorandum requiring NASA components to use the agency's Enterprise License Management Team (ELMT) program for managing software licenses. By employing a centralized software license management approach, NASA should be able to more consistently and cost-effectively make agency-wide decisions on software licenses.
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| National Aeronautics and Space Administration | To ensure the effective management of software licenses, the Adminitrator of the National Aeronautics and Space Administration should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In August 2017, the National Aeronautics and Space Administration (NASA) implemented a software solution that generates an agency-wide inventory of software assets. A comprehensive inventory will better ensure compliance with software license agreements, and allow NASA visibility that reduces redundant applications and identification of other cost saving opportunities.
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| National Aeronautics and Space Administration | To ensure the effective management of software licenses, the Adminitrator of the National Aeronautics and Space Administration should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In August 2017, the National Aeronautics and Space Administration (NASA) implemented a software solution that generates an agency-wide inventory of software assets. Further, the software updates the inventory as hardware or software changes in the environment, and NASA has the ability to generate inventory reports on demand. As a result, the agency can ensure that it has the appropriate number of licenses for each item of software in use to reconcile with current use.
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| National Aeronautics and Space Administration |
Priority Rec.
To ensure the effective management of software licenses, the Adminitrator of the National Aeronautics and Space Administration should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
NASA has agreed with and implemented this recommendation. On an annual basis, NASA analyzes its agency-wide software license data to identify opportunities for software license cost avoidance. For example, NASA increased the number of software agreements managed by its enterprise license management team (ELMT) from 24 to 42 in fiscal year 2014 and analyzed the agency's software license data, such as cost, benefits, and usage to identify opportunities to reduce costs and make better informed investments moving forward. As a result of these actions, in fiscal year 2014, NASA avoided a cumulative cost of about $19.1 million. The agency also stated that it plans to continue to incrementally increase the number of ELMT-managed agreements in the future which should provide it opportunities to realize additional cost avoidance opportunities and better insight into the consumption of software in the future.
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| National Aeronautics and Space Administration | To ensure the effective management of software licenses, the Adminitrator of the National Aeronautics and Space Administration should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
NASA agreed with, and implemented this recommendation. Specifically, NASA issued guidance in July 2017 requiring NASA personnel involved in software license management to complete the NASA Software Management training. In addition, in February 2017, NASA initiated software license management training that addressed negotiations, laws and regulations, and contract terms. Sufficient software license management training should allow NASA personnel involved with managing licenses to develop the skills and knowledge to perform their roles more effectively and efficiently.
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| National Science Foundation | To ensure the effective management of software licenses, the Director of the National Science Foundation should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
In August 2018, National Science Foundation developed a Software Management Centralization Plan to improve the acquisition and management of its software assets, including designating a central authority to oversee the agency's software agreements. The plan also outlines how the agency's software inventory capability will be implemented and describes the activities that will enable effective management of software throughout its lifecycle. By implementing this recommendation, the department is better able to ensure that it consistently and cost-effectively managing its software throughout the department.
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| National Science Foundation | To ensure the effective management of software licenses, the Director of the National Science Foundation should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
The National Science Foundation has demonstrated that it is regularly tracking and maintaining an inventory of software licenses using an asset management tracking tools. Specifically, it has implemented a software assessment management tool that supports the management process of discovering, capturing, tracking, and reporting of software assets. Additionally, in August 2018, the agency developed the software centralization plan that outlines the process for inventory management, which is under the supervision of the Change Control Board and has implemented quarterly reviews of the inventory. As a result, the agency can ensure that it has the appropriate number of license for each item of software in use to reconcile with current use.
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| National Science Foundation | To ensure the effective management of software licenses, the Director of the National Science Foundation should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
The National Science Foundation (NSF) has taken steps to implement our recommendation. In August 2018, NSF established its Software Management Centralization plan that outlined its software asset management practices throughout the lifecycle including describing its approach to analyzing and reporting on the management of software assets. NSF also provided an example of the Change Control Board's approval for release of a software that would allow the agency to save on licensing and infrastructure costs. By implementing this recommendation, NSF is able to identify software license cost savings opportunities and make better investment decisions.
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| National Science Foundation | To ensure the effective management of software licenses, the Director of the National Science Foundation should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In August 2018, the National Science Foundation developed the Software Centralization Management plan that requires the agency to ensure that personnel with roles in software asset management are trained in relevant software management topics. Specifically, the IT acquisition staff receives training in the areas of contract terms and conditions, negotiations, laws and regulations and work with the Office of General Counsel as required. Sufficient software license management training should allow NSF employees to develop the skills and knowledge to perform their roles effectively and efficiently.
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| Nuclear Regulatory Commission |
Priority Rec.
To ensure the effective management of software licenses, the Chairman of the Nuclear Regulatory Commission should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
The Nuclear Regulatory Commission (NRC) implemented GAO's recommendation by updating its Information Technology Asset Management (ITAM) Policy to address the weaknesses identified in our report. Specifically, in December 2016, NRC updated its ITAM policy to include guidance on providing training relevant to software license management and considering the entire software license management life-cycle phases. By establishing comprehensive software licensing policy, NRC is better able to ensure that it is consistently and cost-effectively managing its software throughout the agency.
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| Nuclear Regulatory Commission | To ensure the effective management of software licenses, the Chairman of the Nuclear Regulatory Commission should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
The Nuclear Regulatory Commission (NRC) has taken steps to implement this recommendation. For example, in April 2018, NRC Software Manager developed the Software Management Centralization Plan to meet ensure compliance with applicable Federal mandates and guidelines, including those from the Office of Management and Budget, the Federal Information Technology Acquisition Reform Act. The plan includes establishing a centralized compliance function and procurement processes. By employing a centralized software license management approach, NRC should be able to more consistently and cost-effectively make agency-wide decisions on software licenses.
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| Nuclear Regulatory Commission | To ensure the effective management of software licenses, the Chairman of the Nuclear Regulatory Commission should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In August 2018, the Nuclear Regulatory Commission (NRC) demonstrated that it established a software license inventory. The inventory includes software license count, vendor, contract information, cost per unit and quantity. As a result of implementing an agency-wide inventory of software licenses, NRC is more likely to be able to ensure compliance with software license agreements, allow for agency-wide visibility that consolidates redundant applications, and enable the identification of cost-saving opportunities.
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| Nuclear Regulatory Commission | To ensure the effective management of software licenses, the Chairman of the Nuclear Regulatory Commission should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In August 2018, the Nuclear Regulatory Commission (NRC) demonstrated that it has begun to use an automated tool to track and maintain its software license inventory. For example, the inventories provided included software license count, vendor, contract information, cost per unit and quantity. Also, the agency provided support of an automated tool to capture software license data. As a result, the NRC can better ensure that it has the appropriate number of licenses for each item of software in use to reconcile with current use.
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| Nuclear Regulatory Commission | To ensure the effective management of software licenses, the Chairman of the Nuclear Regulatory Commission should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
The Nuclear Regulatory Commission (NRC) reported that the agency has analyzed agency-wide software license data. For example, NRC has optimized the number of licenses recently purchased in both the IBM and Microsoft Enterprise Agreements. In August 2018, NRC provided supporting documentation of using the inventory to optimize the number of licenses purchased in the Microsoft Enterprise Agreement. As a result, NRC is able to identify software license contract savings opportunities and make better investment decisions.
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| Nuclear Regulatory Commission | To ensure the effective management of software licenses, the Chairman of the Nuclear Regulatory Commission should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In January 2021, the Nuclear Regulatory Commission provided supporting documentation of software license management training provided to appropriate agency personnel to address contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. As a result, the department's staff involved in managing software licenses should have the skills and knowledge to better perform their roles effectively and efficiently.
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| Office of Personnel Management | To ensure the effective management of software licenses, the Director of the Office of Personnel Management should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified |
In May 2022, the Office of Personnel Management (OPM) demonstrated it had taken steps to create a department-wide software license management policy. For example, OPM's Software Asset Management Policy addresses the majority of the weaknesses we identified in our report including identifying clear roles, responsibilities, and central oversight authority within the agency for managing software licenses; and establishing, tracking and maintaining software license inventory. By implementing this recommendation, the agency is better able to ensure that it is consistently and cost-effectively managing its software.
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| Office of Personnel Management | To ensure the effective management of software licenses, the Director of the Office of Personnel Management should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
In April 2022, the OPM Chief Information Officer issued the agency's Software Asset Management Policy demonstrating that it is employing a centralized software license management approach that is coordinated and integrated with key personnel. For example, the policy defines the role and responsibilities of key personnel including the Chief Information Officer and Enterprise Software Manager. The policy states the Chief Information Officer and Deputy Chief Information Officer provide overall vision, strategic guidance, direction, and oversight to the software management program. The Office of Chief Information Officer, among other things, will monitor software installations and usage and conduct periodic reviews to ensure compliance with contracts and license agreements. As a result, OPM should be able to consistently and cost-effectively manage software throughout the department.
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| Office of Personnel Management | To ensure the effective management of software licenses, the Director of the Office of Personnel Management should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
The Office of Personnel Management (OPM) took action to implement this recommendation. In February 2020, the department demonstrated it was using automated tools to establish its enterprise software inventory for its infrastructure and end user devices. For example, the inventory includes the publisher, the product, the version, and usage data. According to OPM, it will use the inventory to manage enterprise software license compliance, manage entitlements and agreements, and identify unused and duplicative software products to allow us to make effective business decisions to reduce unnecessary software expenses.
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| Office of Personnel Management | To ensure the effective management of software licenses, the Director of the Office of Personnel Management should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In December 2020, the Office of Personnel Management (OPM) demonstrated that it uses its software inventory tool to track and maintain a comprehensive inventory of software licenses. Specifically, OPM uses tools to track software entitlement in its network environment including end devices (e.g. laptops). For example, OPM can track software products and installed license count on a daily basis. As a result, OPM is in a better position to ensure that the agency has the appropriate number of licenses for each item of software in accordance with current use.
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| Office of Personnel Management | To ensure the effective management of software licenses, the Director of the Office of Personnel Management should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In December 2020, the Office of Personnel Management (OPM) demonstrated that it is using agency-wide data to identify opportunities for contract consolidation and reduction in licenses. For example, OPM uses the reports generated by its automated tools to analyze software license data by usage and software application. According to OPM, it reduced the original number of licenses requested for several software products by using its software license data. As a result of these reviews, OPM will be better able to identify software license cost savings opportunities and make better investment decisions.
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| Office of Personnel Management | To ensure the effective management of software licenses, the Director of the Office of Personnel Management should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
The Office of Personnel Management concurred with our recommendations and noted actions the agency plans to take. Agency officials noted that an initial list of required and optional software management training will be in the software asset management procedures. However, as of April 2024, the agency had not provided supporting evidence to demonstrate that it had addressed this recommendation. According to agency officials, OPM will finalize training processes and documentation once it has completed its technology process changes. In July 2016, the MEGABYTE Act of 2016 was enacted, which codified this recommendation for all executive agencies (Pub. L. No. 114-210, 130 Stat. 824). We will continue to monitor its progress in implementing this recommendation.
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| Small Business Administration |
Priority Rec.
To ensure the effective management of software licenses, the Administrator of the Small Business Administration should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
In August 2018, the Small Business Administration (SBA) developed a software management plan for the management of software licenses that addressed the weaknesses we identified. The plan described the roles and responsibilities and goals and objectives of the software license management program. It also describes the procedures for tracking and maintaining software including the Office of the Chief Information Officer monitoring software installations and usage on all SBA end-user computing devices and conducting periodic reviews to ensure compliance with contracts and license agreements. By implementing this recommendation, SBA is better able to ensure that it is consistently and cost-effectively managing its software throughout the agency.
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| Small Business Administration | To ensure the effective management of software licenses, the Administrator of the Small Business Administration should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
The Small Business Administration (SBA) has centralized the agency software license management through its Office of the Chief Information Officer. In October 2017, SBA developed processes for its software approval installation process that includes the roles of the software asset manager to among other things, review the software status and update the issued software license and user information into the inventory. By employing a centralized software license management approach, SBA should be able to more consistently and cost-effectively make agency-wide decisions on software licenses.
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| Small Business Administration | To ensure the effective management of software licenses, the Administrator of the Small Business Administration should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In August 2018, the Small Business Administration (SBA) provided evidence to demonstrate that it had established an inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise wide licenses. For example, the inventory includes the software publisher, software name, date and source of acquisition, location of installation, and serial number or license key of software. As a result of implementing an inventory of software licenses, SBA is more likely to be able to ensure compliance with software license agreements, allow for agency wide visibility that consolidates redundant applications, and enable the identification of cost-saving opportunities.
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| Small Business Administration |
Priority Rec.
To ensure the effective management of software licenses, the Administrator of the Small Business Administration should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In August 2018, the Small Business Administration (SBA) provided support to demonstrate that it was regularly tracking and maintaining a comprehensive software license inventory using automated tools and metrics. For example, SBA has developed detailed procedures for maintaining the inventory on a regular basis including defining the roles and responsibilities of the contracting officer representatives. Additionally, SBA provided evidence that it has tracks software license data using newly established tools to establish a software information dashboard the details inventory across SBA . As a result, SBA can better ensure that it has the appropriate number of licenses for each item of software in use to reconcile with current use.
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| Small Business Administration | To ensure the effective management of software licenses, the Administrator of the Small Business Administration should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
In August 2018, the Small Business Administration (SBA) reported on actions taken to analyze agency-wide software license data. For example, SBA reported that its Office of the Chief Information Office is leading an agency-wide effort to ensure that SBA is only purchasing the number of licenses needed during the renewal of software licensing contracts. In August 2018, the agency demonstrated that it was using its tools to establish dashboards with detailed inventory data to provide asset managers with insight into actual licensing data to be evaluated. As a result, SBA will be able to identify software license savings opportunities and make better investment decisions.
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| Small Business Administration | To ensure the effective management of software licenses, the Administrator of the Small Business Administration should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In August 2018, the Small Business Administration (SBA) demonstrated that it had taken actions to provide software license management training. For example, in October 2017, SBA developed a software management process document that identified the roles, responsibilities, and activities required for commercial off-the-shelf software approval installation process. This included detailed steps for executing all activities required for the software installation process including security planning and the agency provided sample test cases of this process being used. As a result, SBA has taken steps to enable its employees to develop the skills and knowledge to perform their software license management roles effectively and efficiently.
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| Social Security Administration | To ensure the effective management of software licenses, the Commissioner of the Social Security Administration should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified |
In August 2016, the Social Security Administration (SSA) developed an agency-wide policy for the management of software licenses including identifying clear roles, responsibilities, and central oversight authority for agency wide software licenses. By implementing this recommendation, the department is better able to ensure that it is consistently and cost-effectively managing its software throughout the department.
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| Social Security Administration | To ensure the effective management of software licenses, the Commissioner of the Social Security Administration should employ a centralized software license management approach that is coordinated and integrated with key personnel for the majority of agency software license spending and/or enterprise-wide licenses. |
In August 2016, the Social Security Administration (SSA) developed an agency-wide policy for the management of software licenses including its plan for a centralized software license management approach. Specifically, while the Chief Information Officer is responsible for managing and overseeing IT asset management, SSA established the Information Technology Asset Management Steering committee to plan, build, guide, and enforce all aspects of the policy. Additionally, SSA established informal workgroups to share software license management plans and processes. Specifically, agency components are required to provide basic requirements and plans to our Division of Resource Management and Acquisitions. The division and independent software license experts provide the agency component with results of market research and recommendations for the best acquisition. By employing a centralized software license management approach, SBA should be able to more consistently and cost-effectively make agency-wide decisions on software licenses.
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| Social Security Administration | To ensure the effective management of software licenses, the Commissioner of the Social Security Administration should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
In May 2018, the Social Security Administration reported that it is tracking more than 95.5 percent of the software in use at the agency. The agency provided evidence of its software expense by operating system platforms and automated tools used in developing this comprehensive inventory. As a result of implementing a department wide inventory of software licenses, the agency is more likely to be able to ensure compliance with software license agreements, allow for agency wide visibility that consolidates redundant applications, and enable the identification of cost-saving opportunities.
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| Social Security Administration | To ensure the effective management of software licenses, the Commissioner of the Social Security Administration should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
In May 2018, the Social Security Administration (SSA) provided evidence that it used automated tools to establish an inventory of its software expense by operating system platforms and reported that it is tracking more than 95.5 percent of the software in use at the agency. SSA provided examples of reports showing the percentage of software expense per operating system platform. As a result of implementing a department-wide inventory of software licenses, SSA is more likely to be able to ensure compliance with software license agreements, allow for agency-wide visibility that consolidates redundant applications, and enable the identification of cost-saving opportunities.
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| Social Security Administration | To ensure the effective management of software licenses, the Commissioner of the Social Security Administration should analyze agency-wide departmental software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
The Social Security Administration (SSA) agreed with and has taken steps to implement our recommendation. In August 2017, SSA reported that it currently gathers data and conducts yearly exercises concerning its Microsoft software and reported on efforts to provide SSA the capability to analyze agency-wide software license data. As a result of these reviews, the department is able to identify software license cost savings opportunities and make better investment decisions.
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| Social Security Administration | To ensure the effective management of software licenses, the Commissioner of the Social Security Administration should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
In July 2018, SSA demonstrated that the agency provides software license management training to appropriate personnel on contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. As a result, SSA will be able to develop the skills and knowledge of employees so they can perform their roles more effectively and efficiently.
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| U.S. Agency for International Development | To ensure the effective management of software licenses, the Administrator of the U.S. Agency for International Development should develop an agency-wide comprehensive policy for the management of software licenses that addresses the weaknesses we identified. |
USAID has developed an agency-wide comprehensive policy and procedures for the management of software licenses that addresses the weaknesses we identified in our report. For example, in April 2015 USDAID issued a standard operating procedure that documents the roles and responsibilities for managing its enterprise software licenses and establishes procedures for tracking and maintaining an agency-wide software license inventory using automated tools and for analyzing software inventory data. In addition, in November 2016, USAID implemented procedures to provide appropriate agency personnel sufficient training on software license management. By establishing comprehensive software licensing policy and procedures, USAID is better positioned to ensure that it consistently and cost-effectively manages its software throughout the department.
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| U.S. Agency for International Development | To ensure the effective management of software licenses, the Administrator of the U.S. Agency for International Development should establish a comprehensive inventory of software licenses using automated tools for the majority of agency software license spending and/or enterprise-wide licenses. |
The US Agency for International Development (USAID) has implemented this recommendation. USAID provided evidence that it has established and maintains a comprehensive inventory of software licenses using automated tools for the majority of agency enterprise-wide software licenses. In addition, USAID established a documented process to review and update of the inventory. A comprehensive inventory will better ensure compliance with software license agreements, and allow USAID agency-wide visibility that can help consolidate redundant applications and the identification of other cost-saving opportunities.
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| U.S. Agency for International Development | To ensure the effective management of software licenses, the Administrator of the U.S. Agency for International Development should regularly track and maintain a comprehensive inventory of software licenses using automated tools and metrics. |
USAID has established a process and procedures to track and maintain a comprehensive inventory of software licenses using automated tools and metrics. For example, in April 2015 USDAID issued a standard operating procedure that documents the roles and responsibilities for tracking and updating the software inventory for new purchases, maintenance renewal and the retirement of software. In addition, in September 2016, USAID provided several documents on its software inventory tracking efforts including the agency's September 2016 updated software and hardware master inventory tracking report, demonstrating that USAID regularly tracks and maintains its inventory of software licenses using automated tools and metrics. Implementing this recommendation will help USAID ensure that its software licenses are used in compliance with licensing agreements and cost-effectively deployed.
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| U.S. Agency for International Development | To ensure the effective management of software licenses, the Administrator of the U.S. Agency for International Development should analyze agency-wide software license data, such as costs, benefits, usage, and trending data, to identify opportunities to reduce costs and better inform investment decision making. |
The US Agency for International Development (USAID) agreed with and has implemented this recommendation. USAID developed standard operating procedures for analyzing agency-wide software data and began to analyze its agency-wide software license data, such as costs and business value to identify opportunities to reduce costs through consolidation and/or elimination of software. For example, USAID held software license rightsizing discussions on the results of its analyses of fiscal year 2016 software license data to inform investment decisions. As a result of these actions, in fiscal year 2016 USAID realized cost savings of $639,561 through the reduction and elimination of selected software license contracts.
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| U.S. Agency for International Development | To ensure the effective management of software licenses, the Administrator of the U.S. Agency for International Development should provide software license management training to appropriate agency personnel addressing contract terms and conditions, negotiations, laws and regulations, acquisition, security planning, and configuration management. |
USAID agreed with this recommendation and subsequently implemented a program to provide appropriate agency personnel training on software license management including training on contract terms and conditions, negotiations, laws and regulations, acquisitions, security planning and configuration management. In addition, in October 2016 USAID issued its Asset Management Training Plan documenting the training schedule and topics to be delivered in 2016 and 2017 to the agencys Asset Management Team and individual training sessions for new hires. For example, in November 2016, USAID provided software license training focused on both the agencys software license renewal process and new software procurement process. As a result, USAID staff involved in managing software licenses should have the skills and knowledge to better perform their roles effectively and efficiently.
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Carol R. Cha
Topics
Software licensesIT investmentsSoftware applicationsFederal agenciesInformation technologyInternal controlsInventory controlIT policiesBest practices