TECHNOLOGY MODERNIZATION FUND - Past Awards Highlight Need for Continued Scrutiny of Agency Proposals

Sep 11, 2026

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Statement of David B. Hinchman explains how the Technology Modernization Fund supports agencies in modernizing aging federal information systems. It outlines prior GAO reporting on TMF status and approved projects, and evaluates the reliability of selected projects’ cost-saving estimates, including documentation gaps and varying expectations about when savings would begin. The statement also summarizes follow-up actions and agency efforts related to GAO recommendations, alongside updated guidance and additional funding.

LanguageEnglish

CategoryLetters

FormatPDF

Pages22

Reading Time8 min

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Why GAO Did This Study

What GAO Found

Technology Modernization Fund project approvals and savings documentation

What GAO Recommends

Testimony Before the Subcommittee on Government Operations, Committee on Oversight and Reform, House of Representatives For Release on Delivery Expected at 10:00 a. m ET Wednesday, May 25, 2022 TECHNOLOGY MODERNIZATION FUND Past Awards Highlight Need for Continued Scrutiny of Agency Proposals Statement of David B. Hinchman, Acting Director, Information Technology and Cybersecurity This is a work of the U.S. government and is not subject to copyright protection in the United States. The published product may be reproduced and distributed in its entirety without further permission from GAO. However, because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. Highlights of GAO-22-106054 , a testimony before the Subcommittee on Government Operations, Committee on Oversight and Reform, House of Representatives Why GAO Did This Study Enacted in 2017, the provisions commonly referred to as the Modernizing Government Technology (MGT) Act established the TMF in recognition of the challenges in modernizing federal information systems. OMB and GSA administer the TMF, and a Technology Modernization Board comprised of federal IT executives reviews agency project proposals. Since the program’s creation, it has received over $1.1 billion in appropriations and made awards to over 20 projects that sought to address the federal technology challenges on which GAO has extensively reported. The MGT Act included a provision for GAO to report biannually on the TMF and the projects receiving these funds. This testimony summarizes past GAO reporting on the TMF, including (1) the status of the fund and approved projects and (2) the reliability of selected projects’ cost saving estimates. This statement is primarily based on the results of GAO’s prior work, which includes the reports cited in this statement. GAO also reviewed the status of approved projects as of May 2022, and agencies’ efforts to address its recommendations. View GAO-22-106054 . For more information, contact David B. Hinchman at (214) 777-5719 or [hinchmand@gao.gov](hinchmand@gao.gov). May 2022 TECHNOLOGY MODERNIZATION FUND Past Awards Highlight Need for Continued Scrutiny of Agency Proposals What GAO Found The Technology Modernization Fund (TMF) provides awards to agencies to, among other things, modernize aging federal information systems. From the initial $175 million that Congress appropriated for TMF, the Technology Modernization Board approved 11 projects totaling about $76 million (see table 1) . Agency proposals were to include estimates of any project-related savings; agencies could use these savings to satisfy the requirement that they reimburse the TMF for any transfers within 5 years. GAO previously reported that for the initial seven projects approved in 2018 and 2019 , two had reported generating cost savings but those savings were not documented. For the remaining five projects, two no longer planned on savings, two planned on savings starting in 1 to 3 years, and one did not know when savings would begin. | Table 1: Technology Modernization Fund (TMF) Projects Approved, as of August 31, 2021 (in dollars) | | | | --- | --- | --- | | Agency and TMF project | Total TMF investmenta | Date of award
announcement | | Department of Agriculture (Agriculture) Farmers. Gov Portal | 4,000,000 | June 7, 2018 | | Department of Energy Enterprise Cloud Email | 2,436,153 | June 7, 2018 | | Department of Housing and Urban Development Unisys Migration | 13,850,013 | June 7, 2018 | | Agriculture Infrastructure Optimization | 220,000 | October 29, 2018 | | Department of Labor (Labor) Visa Application Transformation | 3,500,000 | October 29, 2018 | | General Services Administration (GSA) Application Modernization | 7 ,808 ,563 | October 29, 2018 | | GSA NewPay | 7,316,786 | February 11, 2019 | | Agriculture Specialty Crops Systems Mode

FAQs

What is the Technology Modernization Fund intended to do?

The Technology Modernization Fund provides awards to help agencies modernize aging federal information systems and address federal technology challenges.

How did GAO assess the reliability of selected projects’ cost savings estimates?

GAO reviewed prior reporting and later agency status to examine whether cost-saving claims were documented and when agencies expected savings to begin.

What recommendations did GAO make related to the TMF?

GAO recommended that OMB and GSA develop and implement a plan to recover program management office operating expenses and that GSA develop detailed guidance to help agencies complete TMF proposal cost estimates.

Sep 11, 2026

Upload by Rhys