Data Center Optimization: Agencies Need to Complete Plans to Address Inconsistencies in Reported Savings
GAO-17-388
Published: May 18, 2017. Publicly Released: May 18, 2017.
Skip to Highlights
Highlights
What GAO Found
The 24 agencies participating in the Office of Management and Budget's (OMB) Data Center Optimization Initiative (DCOI) have made progress on their data center closure efforts. As of August 2016, the agencies collectively had identified a total of 9,995 data centers, of which they reported having closed 4,388 and having plans to close a total of 5,597 through fiscal year 2019. The Departments of Agriculture, Defense, Interior, and Treasury accounted for 84 percent of the completed closures.
In addition, 18 of the 24 agencies reported achieving about $2.3 billion collectively in cost savings and avoidances from their data center consolidation and optimization efforts from fiscal year 2012 through August 2016. The Departments of Commerce, Defense, Homeland Security, and Treasury accounted for approximately $2.0 billion (or 87 percent) of the total. Further, 23 agencies reported about $656 million collectively in planned savings for fiscal years 2016 through 2018. This is about $3.3 billion less than the estimated $4.0 billion in planned savings for fiscal years 2016 through 2018 that agencies reported to GAO in November 2015. (See figure.)
Comparison of Fiscal Years 2016-2018 Planned Cost Savings and Avoidances Reported to GAO in November 2015 to Publicly Available Agency DCOI Strategic Plans in April 2017
This reduction in planned savings is the result of eight agencies reporting less in planned cost savings and avoidances in their annual DCOI strategic plans, which are required by December 2014 information technology (IT) acquisition reform legislation, as compared to the savings these agencies previously reported to GAO in November 2015. The reduction also does not include cost savings information for one agency that had not submitted its strategic plan in time for our review. GAO has previously recommended that agencies fully report these savings.
Additionally, as of April 2017, 23 of the 24 agencies had submitted a strategic plan. Of the 23 plans, only 7 included all required information. The remaining plans either partially met or did not meet the requirements. Until agencies submit plans that address all required elements, they may be challenged in implementing the data center consolidation and optimization provisions of the legislation. GAO also identified inconsistencies in how 11 agencies reported historical cost savings in their DCOI strategic plans, as compared to a separate required quarterly report to OMB. These inconsistencies, due in part to weaknesses in OMB's oversight of agencies' savings information and their DCOI strategic plan, resulted in a reporting discrepancy of approximately $1.5 billion between the two sources. Until OMB improves its oversight of agencies' reporting of cost savings, and until agencies address inconsistencies in their reporting, the likelihood of further reporting errors is increased.
Why GAO Did This Study
In December 2014, IT acquisition reform legislation was enacted that included a series of provisions related to ongoing federal data center consolidation efforts. The legislation required covered agencies to develop data center consolidation strategic plans and report cost savings to OMB. It also included a provision for GAO to annually review agencies' data center inventories and strategies. OMB's Federal Chief Information Officer (CIO) subsequently launched DCOI to build on prior data center consolidation efforts and improve federal data centers' performance.
GAO reviewed agencies' data center closure plans and consolidation savings progress and plans; and evaluated the extent to which agencies' annual consolidation strategic plans are complete. To do so, GAO assessed DCOI agencies' data center inventories, reviewed agencies' reported cost savings documentation, and evaluated their data center optimization strategic plans. GAO also updated its assessments in April 2017 in response to agency comments on its draft report.
Recommendations
GAO is recommending that OMB ensure that agencies complete their DCOI strategic plans and report achieved data center cost savings consistently across all reporting mechanisms. GAO is also recommending that 17 agencies complete their DCOI strategic plans and that 11 agencies ensure the amounts of achieved cost savings are consistent across reporting mechanisms. Twelve agencies agreed with GAO's recommendations, 2 disagreed, and 11 did not state whether they agreed or disagreed, as discussed in the report.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of Management and Budget | To better ensure that federal data center optimization efforts improve governmental efficiency and achieve cost savings, the Director of OMB should direct the Federal CIO to provide the necessary oversight to ensure that each agency completes their DCOI strategic plan in accordance with OMB's guidance implementing Federal Information Technology Acquisition Reform provisions (FITARA). |
The Office of Management and Budget (OMB) took steps to implement our recommendation. According to a staff member within the Office of the Federal Chief Information Officer in May 2019, OMB continued to meet with agencies to discuss their data center optimization initiative (DCOI) strategic plans and cost savings in detail. The official stated that OMB directed agencies to update their strategic plans to include actual cost savings achieved for FY 2018 as well as planned savings for FY 2019. By September 2019, almost all agencies took action to complete their fiscal year 2019 plans, with the last agency-the Office of Personnel Management-completing its DCOI strategic plan in January 2020. By helping federal agencies to complete their DCOI strategic plans, OMB has enabled agencies to measure and evaluate progress in DCOI data center closure, cost savings and optimization goals more effectively.
|
| Office of Management and Budget | To better ensure that federal data center optimization efforts improve governmental efficiency and achieve cost savings, the Director of OMB should direct the Federal CIO to provide the necessary oversight to ensure that agency reporting of achieved data center consolidation and optimization cost savings and avoidances is consistent across all reporting mechanisms, including quarterly data submissions and agency DCOI strategic plans. |
The Office of Management and Budget (OMB) took steps to implement our recommendation. According to a staff member within the Office of the Federal Chief Information Officer in May 2019, OMB continued to meet with agencies to discuss their data center optimization initiative (DCOI) strategic plans and cost savings in detail. In its May 2020 instructions for the quarterly data submissions, OMB eliminated reporting of achieved cost savings in agencies' annual DCOI strategic plan. This action left the quarterly submissions as the sole mechanism for reporting achieved data center consolidation and optimization cost savings, which will eliminate the possibility of agencies reporting conflicting savings amounts. By reducing the reporting of achieved cost savings and avoidances to a single mechanism, OMB will help agencies be more consistent in their reporting and be better positioned to measure and evaluate progress relative to DCOI cost savings goals.
|
| Department of Commerce | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Department of Commerce agreed with our recommendation and has taken actions to address it. In June 2018, the department's DCOI Strategic Plan included planned savings figures for fiscal years 2016 through 2018 and identified challenges pertaining to the cost of closures and costs of optimization. However, the plan did not include achieved figures for fiscal year 2017 closures and cost savings. As of July 2019, the department's DCOI Strategic Plan includes planning savings and achieved figures for fiscal years 2017 through 2020. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of Defense | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Department of Defense agreed with our recommendation and has taken action to address it. Specifically, we reviewed the updated Data Center Optimization Initiative (DCOI) strategic plan that was submitted to the Office of Management and Budget and, as of June 2018, found that the department included planned and achieved figures for fiscal years 2016 through 2018 optimization performance, data center closures, and cost savings, thereby addressing the weaknesses we found. The department also identified challenges pertaining to the cost of closures and costs of optimization. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of Energy | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Department of Energy agreed with our recommendation and has taken actions to address it. Specifically, we reviewed the department's updated Data Center Optimization Initiative (DCOI) strategic plan and, as of June 2018, found that the department included planned savings figures, optimization metrics, and closures for fiscal years 2016 through 2018. Additionally, the department identified challenges pertaining to the cost of closures and costs of optimization. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of Health and Human Services | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Department of Health and Human Services (HHS) agreed with our recommendation and has taken steps to address it. We reviewed HHS' updated Data Center Optimization Initiative (DCOI) strategic plan as of April 2018 and found that the department included planned and achieved figures for fiscal years 2016 through 2018, thereby addressing the weaknesses we found. The department identified challenges pertaining to the cost of closures and costs of optimization. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Social Security Administration | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Social Security Administration (SSA) agreed with our recommendation and described planned actions to address it. Specifically, the agency noted that it will continue to economize and evolve its data center optimization management and will continue to encourage open dialog and information exchange between agencies to achieve efficiencies and enhanced data center operations government-wide. Subsequently, we reviewed SSA's updated strategic plan as of July 2018 and found that the agency included planned savings figures, optimization metrics, and closures for fiscal years 2016 through 2018. The department has also listed the achieved figures for fiscal years 2016 through 2017. Additionally, SSA identified challenges and explanations for unmet planned values. By identifying and reporting this information, the agency is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of the Interior | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Department of the Interior agreed with our recommendation and has taken steps to address it. As of June 2018, the department's updated Data Center Optimization Initiative plan included planned and achieved figures for fiscal years 2016 through 2018, thereby addressing the weaknesses we found. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of Justice | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Department of Justice agreed with our recommendation and has taken steps to address it. As of June 2018, the department's updated Data Center Optimization Initiative strategic plan included planned and achieved figures for fiscal years 2016 through 2018, thereby addressing the weaknesses we found. Additionally, the department identified challenges pertaining to the cost of closures and costs of optimization. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of Transportation | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Department of Transportation agreed with our recommendation and has taken steps to address it. We reviewed the department's updated DCOI strategic plan as of June 2018 and found that the department recorded planned and achieved savings figures, optimization metrics, and closures for fiscal years 2016 through 2018. Additionally, the Department of Transportation identified challenges and explanations for unmet planned values. The department also included an estimation of approximately $11.2 million cost in closures through FY 2018. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of Labor | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Department of Labor agreed with our recommendation and has taken steps to address it. As of June 2018, the department's updated Data Center Optimization Initiative strategic plan included planned and achieved figures for fiscal years 2016 through 2018, thereby addressing the weaknesses we found. Additionally, the department identified challenges pertaining to calculating performance against the automated monitoring metric for its non-tiered data centers. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of the Treasury | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Department of the Treasury agreed with our recommendation and has taken steps to address it. We reviewed the department's updated DCOI strategic plan as of April 2018 and found that the department recorded planned savings figures, optimization metrics, and closures for fiscal years 2016 through 2018. The department has also listed the achieved figures for fiscal years 2016 through 2017. Additionally, the department identified challenges and explanations for unmet planned values. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of Veterans Affairs | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Department of Veterans Affairs agreed with our recommendation and has taken steps to address it. We reviewed the updated DCOI strategic plan as of April 2018 and found that the department recorded planned savings figures, optimization metrics, and closures for fiscal years 2016 through 2018. The department has also listed the achieved figures for fiscal years 2016 through 2017. Additionally, the department identified challenges and explanations for unmet planned values. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of State | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Department of State agreed with our recommendation and has taken actions to address it. Subsequently, we reviewed the department's DCOI strategic plan in August 2018 and found that the department included planned and achieved figures for its data center optimization metrics, and data center closures, and planned figures for related cost savings, for fiscal years 2016 through 2018. However, it did not include achieved cost savings figures for fiscal years 2016 through 2018. In April 2019, we reviewed the department's updated DCOI strategic plan and found planned and achieved figures for related cost savings for fiscal years 2016 through 2020, which addressed the weaknesses we had previously reported. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Environmental Protection Agency | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Environmental Protection Agency (EPA) took steps to implement our recommendation. As of May 2020, EPA's Data Center Optimization Strategic Plan included achieved closures and cost savings and avoidances for fiscal years 2016 through 2018. By identifying and reporting this information, EPA is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| National Aeronautics and Space Administration | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The National Aeronautics and Space Administration agreed with our recommendation and has taken steps to address it. We reviewed the updated DCOI strategic plan as of April 2018 and found that the department recorded planned savings figures, optimization metrics, and closures for fiscal years 2016 through 2018. The department has also listed the achieved figures for fiscal years 2016 through 2017. Additionally, the National Aeronautics and Space Administration identified challenges and explanations for unmet planned values. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Small Business Administration | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Small Business Administration (SBA) agreed with our recommendation and described planned actions to address it. Subsequently, we reviewed SBA's updated DCOI strategic plan as of April 2018 and found that the agency included planned savings figures, optimization metrics, and closures for fiscal years 2016 through 2018, but did not include the achieved figures for FY 2017. Additionally, SBA identified challenges and explanations for unmet planned values. By identifying and reporting this information, the agency is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Nuclear Regulatory Commission | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The Nuclear Regulatory Commission has taken actions to address our recommendation. We reviewed the updated DCOI strategic plan as of April 2018 and found that the department recorded planned savings figures, optimization metrics, and closures for fiscal years 2016 through 2018. The department has also listed the achieved figures for fiscal years 2016 through 2017. Additionally, the Nuclear Regulatory Commission identified challenges and explanations for unmet planned values, thereby addressing the weakness we identified in our 2017 report. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| U.S. Agency for International Development | The following 17 agencies (the Secretaries of the Departments of Commerce, Defense, Energy, Health and Human Services, Interior, Labor, State, Transportation, Treasury, and Veterans Affairs; the Attorney General; and the Administrators of the Environmental Protection Agency, National Aeronautics and Space Administration, Small Business Administration, and U.S. Agency for International Development; the Chairman of the Nuclear Regulatory Commission; and the Commissioner of the Social Security Administration) should each take action to complete the missing elements in their respective DCOI strategic plan, including addressing any identified challenges, and submit their completed strategic plan to OMB. |
The U.S. Agency for International Development (USAID) has taken action to address our recommendation. Specifically, we reviewed USAID's updated DCOI strategic plan as of June 2018 and found that the agency recorded planned savings figures, optimization metrics, and closures for fiscal years 2016 through 2018. The agency has also listed the achieved figures for fiscal years 2016 through 2017. Additionally, USAID identified challenges and explanations for unmet planned values. By identifying and reporting this information, the agency is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of Education | Finally, the following 11 agencies (the Secretaries of the Departments of Commerce, Education, Health and Human Services, Interior, Labor, State, Transportation, and Treasury; the Administrators of the Environmental Protection Agency, General Services Administration, and the U.S. Agency for International Development) should also each take action to ensure that the amounts of achieved data center cost savings and avoidances are consistent across all reporting mechanisms, including the quarterly data submissions and DCOI strategic plans. |
Education acknowledged that the department had not included historical cost savings and avoidance information in its Data Center Optimization Initiative (DCOI) strategic plan, as required, and has taken action to address our recommendation. Specifically, the department has updated both its data center optimization initiative (DCOI) strategic plan and its quarterly cost savings report to include consistent savings figures. For example, both documents report $308,000 as fiscal year 2016 achieved savings. In addition, the DCOI strategic plan indicates Education planned to achieve $527,000 in cost savings in 2017. In February 2018, the department reported that it had achieved that amount for fiscal year 2017 savings. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of Commerce | Finally, the following 11 agencies (the Secretaries of the Departments of Commerce, Education, Health and Human Services, Interior, Labor, State, Transportation, and Treasury; the Administrators of the Environmental Protection Agency, General Services Administration, and the U.S. Agency for International Development) should also each take action to ensure that the amounts of achieved data center cost savings and avoidances are consistent across all reporting mechanisms, including the quarterly data submissions and DCOI strategic plans. |
The Department of Commerce (Commerce) agreed with our recommendation and has taken actions to address it. Specifically, Commerce has continued to report amounts of achieved data center cost savings and avoidances. We reviewed the department's May 2018 quarterly report of cost savings and the Data Center Optimization Initiative (DCOI) Strategic Plan posted to its digital strategy web site. However, we found that although the department reported fiscal year 2017 savings in its quarterly cost savings report, it did not do so in its DCOI Strategic Plan. As of July 2019, the department has updated both its DCIO Strategic Plan and its quarterly cost savings report to include consistent savings figures. For example, both documents report $1.28 million in achieved savings in fiscal year 2019. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of Health and Human Services | Finally, the following 11 agencies (the Secretaries of the Departments of Commerce, Education, Health and Human Services, Interior, Labor, State, Transportation, and Treasury; the Administrators of the Environmental Protection Agency, General Services Administration, and the U.S. Agency for International Development) should also each take action to ensure that the amounts of achieved data center cost savings and avoidances are consistent across all reporting mechanisms, including the quarterly data submissions and DCOI strategic plans. |
The Department of Health and Human Services (HHS) has taken actions to address our recommendation. Specifically, HHS has continued to report the amounts of achieved data center cost savings and avoidances. However, after reviewing the department's May 2018 quarterly report of cost savings and Data Center Optimization Initiative (DCOI) Strategic Plan, we noted that the savings figures still did not agree. For example, in June 2018, the DCOI Strategic Plan reported historical savings of $94.96 million for fiscal years 2012 through 2015, while the May 2018 cost savings report identified $98.4 million for the same period. As of July 2019, the department had updated both its DCOI Strategic Plan and its quarterly cost savings report to include consistent savings figures. For example, both documents report $16.59 million in achieved savings for fiscal year 2019. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of the Interior | Finally, the following 11 agencies (the Secretaries of the Departments of Commerce, Education, Health and Human Services, Interior, Labor, State, Transportation, and Treasury; the Administrators of the Environmental Protection Agency, General Services Administration, and the U.S. Agency for International Development) should also each take action to ensure that the amounts of achieved data center cost savings and avoidances are consistent across all reporting mechanisms, including the quarterly data submissions and DCOI strategic plans. |
The Department of Interior agreed with our recommendation and has taken steps to address it. As of June 2018, the department has updated both its Data Center Optimization Initiative (DCOI) strategic plan and its quarterly cost savings report to include consistent savings figures. For example, both documents report $5.8 million as fiscal year 2017 achieved savings. In addition, both documents identify approximately $2.52 million in historical savings for fiscal year 2014 By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of Transportation | Finally, the following 11 agencies (the Secretaries of the Departments of Commerce, Education, Health and Human Services, Interior, Labor, State, Transportation, and Treasury; the Administrators of the Environmental Protection Agency, General Services Administration, and the U.S. Agency for International Development) should also each take action to ensure that the amounts of achieved data center cost savings and avoidances are consistent across all reporting mechanisms, including the quarterly data submissions and DCOI strategic plans. |
The Department of Transportation has taken action to address our recommendation. Specifically, in September 2018, department officials provided a copy of the department's updated Data Center Optimization Initiative strategic plan that reports about $13.3 million in achieved data center-related savings for 2016. In addition, the officials provided a copy of the department's August 2018 quarterly cost savings report to the Office of Management and Budget, which reported about $13.3 million in data center savings for the same year. Further, both documents identify approximately $23.5 million in historical savings for fiscal years 2012 through 2015. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of Labor | Finally, the following 11 agencies (the Secretaries of the Departments of Commerce, Education, Health and Human Services, Interior, Labor, State, Transportation, and Treasury; the Administrators of the Environmental Protection Agency, General Services Administration, and the U.S. Agency for International Development) should also each take action to ensure that the amounts of achieved data center cost savings and avoidances are consistent across all reporting mechanisms, including the quarterly data submissions and DCOI strategic plans. |
The Department of Labor has taken action to address our recommendation. As of June 2018, the department has updated both its Data Center Optimization Initiative (DCOI) strategic plan and its quarterly cost savings report to include consistent savings figures. For example, both documents report $4.84 million as fiscal year 2016 achieved savings. In addition, both documents identify approximately $20 million in historical savings for fiscal years 2012 through 2017. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of the Treasury | Finally, the following 11 agencies (the Secretaries of the Departments of Commerce, Education, Health and Human Services, Interior, Labor, State, Transportation, and Treasury; the Administrators of the Environmental Protection Agency, General Services Administration, and the U.S. Agency for International Development) should also each take action to ensure that the amounts of achieved data center cost savings and avoidances are consistent across all reporting mechanisms, including the quarterly data submissions and DCOI strategic plans. |
The Department of the Treasury took action to address our recommendation. In November 2019, the department reported $17 million in its quarterly cost savings report to the Office of Management and Budget for fiscal year 2019. As of May 2020, the department reports $17.5 million in achieved savings for 2019 in its updated Data Center Optimization Initiative strategic plan. By identifying and consistently reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Department of State | Finally, the following 11 agencies (the Secretaries of the Departments of Commerce, Education, Health and Human Services, Interior, Labor, State, Transportation, and Treasury; the Administrators of the Environmental Protection Agency, General Services Administration, and the U.S. Agency for International Development) should also each take action to ensure that the amounts of achieved data center cost savings and avoidances are consistent across all reporting mechanisms, including the quarterly data submissions and DCOI strategic plans. |
The Department of State agreed with our recommendation and described planned actions to address it. Specifically, the department described plans to acquire, subject to funding availability, automated monitoring tools for its enterprise data centers. It also described plans to engage OMB to rebaseline the closure target for its non-tiered data centers located outside the United States, based on the department's mission needs. As of May 2019, the different reporting mechanisms are consistent in reporting the department's achieved savings. For example, the department reported achieved data center-related savings of $34.8 million for fiscal year 2017 and $47.2 million for fiscal year 2018 in both its data center optimization initiative strategic plan and its May 2019 quarterly report to the Office of Management and Budget. By identifying and reporting this information, the department is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| Environmental Protection Agency | Finally, the following 11 agencies (the Secretaries of the Departments of Commerce, Education, Health and Human Services, Interior, Labor, State, Transportation, and Treasury; the Administrators of the Environmental Protection Agency, General Services Administration, and the U.S. Agency for International Development) should also each take action to ensure that the amounts of achieved data center cost savings and avoidances are consistent across all reporting mechanisms, including the quarterly data submissions and DCOI strategic plans. |
The Environmental Protection Agency (EPA) took action to implement our recommendation. In June 2018, EPA had not updated its Data Center Optimization Initiative (DCOI) Strategic Plan or quarterly data reports to include achieved cost savings and avoidances for fiscal years 2016 through 2018. In November 2019, the agency's quarterly data report to the Office of Management and Budget (OMB) included about $126 thousand in data center-related cost savings for fiscal year 2019. In its May 2020 instructions for the quarterly data reports, OMB eliminated reporting of achieved cost savings in agencies' annual DCOI strategic plan. By identifying its data center-related cost savings and consistently reporting this information through the remaining reporting mechanism, EPA is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
| General Services Administration | Finally, the following 11 agencies (the Secretaries of the Departments of Commerce, Education, Health and Human Services, Interior, Labor, State, Transportation, and Treasury; the Administrators of the Environmental Protection Agency, General Services Administration, and the U.S. Agency for International Development) should also each take action to ensure that the amounts of achieved data center cost savings and avoidances are consistent across all reporting mechanisms, including the quarterly data submissions and DCOI strategic plans. |
The General Services Administration agreed with, and has taken actions to address, our recommendation. Specifically, the agency stated that it planned to complete the missing elements in its Data Center Optimization Initiative (DCOI) strategic plan, including addressing any identified challenges and ensure that the amounts of achieved data center cost savings and avoidances were consistent across all reporting mechanisms, including the quarterly integrated data collection submissions and DCOI strategic plans. As of June 2017, the agency had consistently reported historical cost savings of $17.78 million for fiscal years 2012 through 2015 and achieved savings of $16.73 million in both its most recent integrated data collection (May 2017) and the current version of its DCOI strategic plan. By ensuring the agency reports savings consistently across all reporting mechanisms, the Office of Management and Budget has greater assurance that cost savings are being fully reported to enable more effective oversight.
|
| U.S. Agency for International Development | Finally, the following 11 agencies (the Secretaries of the Departments of Commerce, Education, Health and Human Services, Interior, Labor, State, Transportation, and Treasury; the Administrators of the Environmental Protection Agency, General Services Administration, and the U.S. Agency for International Development) should also each take action to ensure that the amounts of achieved data center cost savings and avoidances are consistent across all reporting mechanisms, including the quarterly data submissions and DCOI strategic plans. |
The U.S. Agency for International Development has taken action to address our recommendation. As of June 2018, the agency has updated both its Data Center Optimization Initiative (DCOI) strategic plan and its quarterly cost savings report to include consistent savings figures. For example, both documents report $2.51 million as fiscal year 2016 achieved savings. In addition, both documents identify approximately $9.42 million in historical savings for fiscal years 2012 through 2015. By identifying and reporting this information, the agency is better positioned to measure and evaluate progress in achieving data center related cost savings and avoidances.
|
Full Report
GAO Contacts
David A. Powner
Topics
Data centersFederal agenciesReporting requirementsStrategic planStrategic planningConsolidationCost savingsGovernment agency oversightChief information officersInventory