Monday, July 23, 2012

Obama Administration's Cost-Cutting Incompetence

Barack Obama has made it clear that he is a big believer in big government and has adopted a economic plan to run trillions of dollars in annual deficits for as long as possible. Obama remains steadfast against making any dramatic cuts in government spending and when pressed to announce some half-hearted effort to cut the size and the cost of government, his administration has resisted the cuts, and has transformed even the puniest efforts to cut federal spending into even greater demands upon taxpayer funds. The Obama Administration’s cost cutting efforts within federal agencies are so ineffective, they often cost taxpayers more than the savings originally proposed by the cuts.
Consider, for example, a recent Obama administration plan to consolidate data centers across the federal bureaucracy--an effort that they claim will save millions of dollars. However, close examination, by GAO and the DoD among others, shows that the cost of the implementation of data center consolidation for almost 24 agencies cost is likely to cost billions, that most of the federal agencies consolidating data centers haven't fully evaluated the total costs.
OMB estimated that " 30%-50% savings could be obtained" in operational costs through data consolidation efforts. However, OMB did not consider, on an agency-by-agency basis, the costs in manpower to transfer data and software from the IT servers located in various agencies throughout the country to the one location of the consolidated data center, nor the costs of the displaced IT persons within agencies who no longer provide IT support, nor the costs of the additional backup storage.

Read more: http://townhall.com/columnists/luritadoan/2012/07/23/obama_administrations_costcutting_incompetence/page/full/

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