U.S. Looks To Save $100M On Computers

More than $100 million could be saved each year through joint agency use of the best-price software, the administration said.

The program will end the practice of agencies negotiating separate licenses to buy software, department chiefs were told in a memo by Mitch Daniels, director of the Office of Management and Budget.

Different agencies paid between $200 and $500 for the same desktop software, the government found. Another problem was created when agencies bought different versions of computer products.

"The broad mosaic of different software versions ... increases the difficulty and cost of securing federal computers," Daniels said. "There can be no doubt, therefore, that the federal government can become a smarter buyer of commercial software."

The "SmartBUY" initiative will have a team to negotiate new technology licenses by Sept. 30, the end of the fiscal year. The goal is "to assure that the federal government is leveraging its immense buying power to achieve the maximum cost savings and best quality" of software, Daniels said.

The purchases will include commercial off-the-shelf software that currently is acquired through license agreements that vary in terms and price, according to volume.

"Agencies should, to the maximum extent practicable, refrain from entering into any new or renewal software licensing agreements pending a review by OMB and the SmartBUY initiative team," Daniels' memo said. "These steps are necessary to better manage information technology resources and save taxpayer dollars. "