Bipartisan Bill Aims to Modernize Federal IT Systems and Save Taxpayer Dollars

As the Trump administration’s Department of Government Efficiency (DOGE) works toward reducing government waste, a bipartisan initiative is gaining traction in Congress. The Strengthening Agency Management And Oversight Of Software Assets (SAMOSA) Act seeks to transform the outdated federal computer systems, bringing them firmly into the 21st century.

Legislative Progress and Key Supporters

This significant legislation passed the House in December, with Senator Joni Ernst, R-Iowa, leading the charge in the Senate. As the chair of the Senate DOGE Caucus, Ernst emphasizes that the SAMOSA Act will overhaul federal IT by streamlining and optimizing software asset management.

Financial Implications for Taxpayers

According to insiders, the bill could save taxpayers an estimated $750 million annually through the consolidation of cloud computing software licenses across federal agencies. Ernst indicated that fixing federal IT procurement is critical to her broader goal of downsizing government and eliminating over $2 trillion in waste.

Emphasizing Competition in Software Procurement

“If the government permitted meaningful competition in software bidding processes, taxpayers could save substantially each year,” Ernst stated. She further argued for passing her bill to encourage federal agencies to adopt pragmatic approaches when acquiring software, rather than squandering taxpayer funds unnecessarily.

Industry Endorsements and Benefits

The SAMOSA Act has garnered strong backing from various industry organizations. Ryan Triplette, Executive Director of the Coalition for Fair Software Licensing, highlighted the necessity of modernizing federal IT infrastructure to ensure equitable software licensing practices. Triplette noted that bipartisan consensus on this issue is rare yet crucial for cost-effectiveness and security.

Assessment and Consolidation Mandates

The proposed legislation requires every government agency’s Chief Information Officer to conduct a comprehensive evaluation of current software assets within 18 months. This review will encompass an inventory of active software, identification of contract expiration dates, and additional costs associated with cloud services not included in initial agreements. Ultimately, this assessment aims to unite software entitlements, trim unnecessary expenses, and cultivate strategies for cost-efficient acquisitions.

Broad Bipartisan Support

On the House side, Rep. Matt Cartwright, D-Pa., introduced the SAMOSA Act, which received co-sponsorship from a bipartisan coalition comprising 20 Congress members. This underscores the bill’s widespread appeal across party lines.

Addressing Long-standing Issues in IT Procurement

In a recent letter, Ernst reached out to notable figures, including Elon Musk and Vivek Ramaswamy, outlining potential strategies for eliminating inefficiencies and reducing government expenditure. Among her proposals was the consolidation of cloud computing licenses as a means to save taxpayers $750 million annually.

Research Findings on Vendor Competition

Ernst referenced a study by software procurement expert Michael Garland, which revealed that major software companies, such as Microsoft and Oracle, frequently obtain 25% to 30% of contracts without sufficient competition. Alarmingly, the U.S. government reportedly spent $112 million more on Microsoft Office than it would have on Google Workspace, illustrating the high costs of vendor lock-in.

Financial Overview of Government IT Spending

The U.S. government has invested nearly $2 trillion in Information Technology since 1994, with approximately $300 billion dedicated to commercial off-the-shelf (COTS) software. Annually, it spends between $10 to $15 billion on new software and maintaining existing software. Unfortunately, a limited number of software companies dominate contracts, creating a vendor-locked system that hinders competition.

The Need for Modernization

Ernst’s correspondence highlighted the Government Accountability Office’s (GAO) identification of ten critical federal IT legacy systems in dire need of modernization. These outdated systems, which range from eight to 51 years old, reportedly cost about $337 million annually to operate. Many of these systems rely on obsolete programming languages, such as Common Business Oriented Language (COBOL).

An Urgent Call for Change

Ernst concluded with a stark reminder of the current state of government IT. Acknowledging the dire need for upgrades, she echoed sentiments expressed by Musk: “The government runs on ancient computers and software. It needs an upgrade!” This consensus highlights the urgent demand for legislative action to ensure a more efficient and cost-effective federal IT landscape.