However, it comes during a year in which total federal IT spending is still increasing, so this represents a shift specifically away from the schedules as a procurement channel and not a general decline in the market.

The introduction of several programs designed to review systems and program performance has resulted in efficiencies and cost-saving efforts.

The federal government is acting more and more like a private sector business. They are cutting costs, reviewing opportunities closely, and conducting cost-benefit analyses for their IT investments. This is a new era in government spending practices and these cost-saving measures will affect federal IT budgets and, therefore, vendor opportunities.

The message delivered by OMB [the Office of Management and Budget] is that performance and measurement will play critical roles in the review and approval of budgeted spending, especially the close review of agency-by-agency progress reports on meeting administration goals for managing IT projects and developing effective business cases.

The message delivered by OMB is that performance and measurement will play critical roles in the review and approval of budgeted spending, especially the close review of agency-by-agency progress reports on meeting administration goals for managing IT projects and developing effective business cases.

OMB acknowledges that while reporting tools for the Federal Information Security Management Act and systems training remain solid, more work is needed in security product & systems evaluation and response initiatives. In addition, more focus will be placed on how agencies identify and manage risk.