Consistently Applying Best Practices Could Help IRS Improve the Reliability of Reported Cost and Schedule Information
April 17, 2013
What GAO Found
According to the Internal Revenue Service (IRS), 12 of its 20 major information technology (IT) investments were within 10 percent of cost and schedule estimates or significantly below cost between October 2011 and October 2012. For the remaining 8 investments, 3 were reported as being significantly over cost and 5 were reported as being significantly behind schedule. Reported reasons for these significant variances include unplanned work activities, procurement delays, and additional costs associated with terminating an investment that was being replaced.
The reliability of the reported variance information--which is dependent upon having (1) a reliable cost estimate and a well-constructed and controlled schedule estimate, and (2) a process for determining variances using estimates and comparing them to actual or projected amounts--varied for the seven investments reviewed. Specifically, the cost estimates for CADE 2 and IRDM, and the schedule estimates for CADE 2, IRDM, and ACA were more favorable than for the remaining investments because they were more consistent with best practices.