GAO: Cost estimates are typically faulty on major IT projects
July 27, 2012
Managers are routinely using faulty cost estimates when making key decisions affecting major information technology projects, a new audit has found.
Fifteen of the 16 IT projects reviewed, valued at a combined $52 billion, are using unreliable cost estimates, according to a July report by the Government Accountability Office.
Most of the cost estimates “did not provide a sound basis for informed program and budget decisions,” GAO said.
Fifteen of those programs failed to apply best practices when developing cost estimates, the report found.