White House May Overhaul Some $30 Billion in Troubled Tech Projects

White HouseObama's administration is getting a taste of running the government more like a business each day.

Its latest brush comes with approximately $30 billion in technology projects that are running over budget, failing to deliver as promised or both -- leading the White House to consider retooling over two dozen of these technology projects, according to a Wall Street Journal report.

For corporate America, technology projects that run late, bust the budget and fail to deliver are far from rare events. Now the Obama administration is feeling the pain like other corporate chief information officers. The White House can add this experience to the lessons it has learned from owning General Motors.

Billion-Dollar Bungles

The Obama administration is toying with the idea of overhauling these projects and possibly chopping them into bite-sized initiatives, according to the report. The White House, however, is apparently not willing to scrap the projects all together.

Here's a snapshot of some of the billion-dollar bungles in the report:

  • $7.8 billion Interior Department IT consolidation project: After spending half the money to date on hundreds of data centers and thousands of servers, employees remain on different e-mail systems.
  • $2.8 billion Treasury Department project: It aims to update the department's computer network and telecommunications systems, but 45 data centers remain dead in the water in supporting next generation Internet technologies.
  • $2 billion Air Force Logistics project: More than a quarter of this cost is already spent, but the project is estimated to be years away from hitting the go button.
In June, the White House refused to cough up $3 billion for some of these approved projects that were behind schedule or over budget, according to the Journal. And new fund allocations for these projects are on ice as administration folks dig deeper in their review. The report cited Accenture (ACN), IBM (IBM), Oracle (ORCL) and AT&T (T) as having involvement with these projects.

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Why in the hell should the White House have this much control over this much money.......given the corruptness of this bunch of buearocrats, I just can't believe this has happened.............or on the other hand, I think I just answered my own question.

August 23 2010 at 7:52 PM Report abuse +1 rate up rate down Reply

Bush was by no means fiscally conservative. he was a neo-con. He used American might to force democracy on iraq, and for what? Conservative's actually built up this country. once the Labor unions, and those with a liberal agenda got into office, the country went downhill. England elected conservatives to get them out of their mess not liberals. The same will happen this November. People are finally seeing through the empty promises of the liberals. Obama is spending more than anyone. Most of the money he spends goes to Unions, entitlements, and special interests. He is no different than your common corrupt politician. Some change.

August 23 2010 at 7:11 PM Report abuse +1 rate up rate down Reply

These projects were started under Busch. Same with the poor economy started by the conservatives, the same people you want in are responsible for nearly destroying America. Obama is trying to get America back on its feet, unfortunatly he may have to try spending his way out of this conservative greated mess. Conservatives should be banned from goverment office until the US recovers.

August 23 2010 at 5:54 PM Report abuse rate up rate down Reply
1 reply to TheDude's comment

Almost two years and counting. Oh, Bush didn't pass any spending bills. The Democrats did that in the last two years of his administration. That makes the Democrats in charge of legislation for four years. That's how our government works.

August 23 2010 at 7:03 PM Report abuse +2 rate up rate down Reply


August 23 2010 at 5:32 PM Report abuse +1 rate up rate down Reply

instead, take that 30B and throw a muslim party on ground zero,

August 23 2010 at 4:17 PM Report abuse -1 rate up rate down Reply

You know in the private sector if you had a tech project and it was behind schedule and over budget, a check would not be generated until the project was completed as stated in terms of contract. And the company doing the work would have to eat it. But the government is wasteful and stupid

August 23 2010 at 4:15 PM Report abuse rate up rate down Reply

The compaines involved make sure nothing works so they can have the tax payer keep footing the bill for years to come. The Gov. is only paying the bills. People have to understand how this all works. Private companys doing the work not the gov....

August 23 2010 at 2:38 PM Report abuse +1 rate up rate down Reply

So Americans are surprised???? Just another government run flop!!!!! Vote em out and start firing the idiots and reduce the size of government. the only thing this government knows is to pass excessive bills and spend, spend and spend!!! Obama was thought well by the loons that taught in room 101 - How to Destroy the American way of life!!!!

August 23 2010 at 1:39 PM Report abuse +3 rate up rate down Reply
Robert Simpson

Amazing isn't it???? When private business generates and develops an idea they only go forward when they have proven that going forward will not only succeed....but succeed so well that they can make a buck for themselves and their shareholders. In private business........ideas that are impractical....don't get developed. When the idiot civil servants are running things........STUPID IDEAS ADVANCE AND COST US A FORTUNE !!!

August 23 2010 at 12:12 PM Report abuse +3 rate up rate down Reply
1 reply to Robert Simpson's comment

The government doesn't care about results when it comes to spending other people's money.

August 23 2010 at 1:56 PM Report abuse +2 rate up rate down Reply