In a Federal Computer Week Op/Ed today, SIIA’s Mike Hettinger explains why freedom of choice is important for federal agencies when determining how to best fulfill their financial management needs. Under a recently announced initiative, the Office of Management and Budget (OMB) and the U.S. Treasury plan to assign all agencies to an existing federal shared service provider (FSSP), but Hettinger argues that the biggest agencies are too large and complex to move their financial systems to an FSSP, adding that the cost of migration would far outweigh any projected cost savings. Hettinger says:
Consolidation is a noble goal but not when it flies in the face of efficiency and rationality. The administration needs to wake up to the fact that an agency like DHS, with a $40 billion budget and 22 component agencies, is already operating at such a large and complex scale that moving it to a new FSSP would be an unwieldy, expensive mess.
Instead, he recommends officials first determine whether there is any evidence that they are currently wasting significant money on their financial management systems, second ensure there is private sector involvement in the process, and lastly make sure Federal agencies have freedom to assess their own financial management needs and choose the financial management solution that works best for them.
Laura Greenback is Communications Director at SIIA. Follow the SIIA Public Policy Team at @SIIAPolicy