Obama budget proposal counts on IT to save millions

In his fiscal 2011 budget proposal released on Monday, President Obama listed ways information technology can trim -- albeit slightly -- the record $1.6 trillion deficit, including agencies signing more enterprise software license agreements, turning off computers at night and eliminating paper pay stubs for all federal workers.

Contained in the president's $3.8 trillion budget is a list of ideas the administration plans to use IT at federal agencies to save millions of dollars. The Veterans Affairs Department plans to sign a five-year enterprise licensing agreement with Oracle this fiscal year that will save the department nearly $118 million during five years. VA would save almost $10 million in fiscal 2010 and another $40.2 million in fiscal 2011, for example.

The Office of Management and Budget said the agreement provides a significant discount by consolidating existing software licenses across the department under one contract. The agreement with Oracle will allow VA to develop a "world-class data architecture and recovery strategy without incurring incremental cost," help the department to better secure data and veterans' personally identifiable information, and allow it to reduce the amount of time it takes to develop IT projects, OMB said.

The Oracle deal will support data sharing between VA and the Defense Department, improve budget forecasts, and provide a way for veterans to go online to refill prescriptions, schedule appointments, and view and update personal records, OMB said.

Veterans Affairs also will save $2.1 million in fiscal 2010 and $6.9 million in fiscal 2011 by following new policies that reverse the long-standing practice of leaving its 300,000 PCs turned on at all times so the IT staff can scan computers for viruses, distribute security patches and update systems, OMB said. New software will allow VA to turn remote PCs on or off at will, and the department estimates it will save $26 a year annually per machine by shutting it down when not in use.

The Labor Department established a similar program in 2009 and estimated it saved $50 a year per PC in reduced energy costs. Labor expected to save $727,000 during five years from the project, which will include software that will automatically turn off any computer when not in use by 2012, OMB said.

The Obama administration also plans to use IT at the Treasury Department to reduce costs. The department plans to pay all employees electronically, eliminating the need to send paper check stubs, generating a savings of $2 million a year, OMB reported. Currently, Treasury sends paper pay stubs to more than 100,000 workers.

The White House says it can save millions more by creating an application that allows citizens to make an appointment online with an employee at a Social Security Administration office. Beneficiaries now have to call a local office to make an appointment. SSA says the online app, which it plans to install this year, will save $150,000 a year and improve customer satisfaction.

Treasury's Financial Management Services, which disburses Social Security payments and tax refunds, continues to reduce paper, and next year will develop a single electronics payment system that consolidates dozens of applications into one portal for payment processing, saving $9 million, OMB said.

The Bureau of Public Debt, which manages the nation's spiraling debt, plans to cut $6 million from its fiscal 2011 budget by conducting more meetings via teleconference, streamlining procurement and eliminating fees paid to agents who submit orders electronically, as about 60 percent already do. "It is only fitting then that the bureau be a leader in generating efficiency savings that will contribute to reducing the deficit," OMB noted.