In an effort to reduce wasteful spending, the Obama administration is temporary halting $3 billion in IT contracts and examining more than $10 billion worth of other projects as part of a revamp of spending on such services and equipment, according to Bloomberg.
Office of Management and Budget Director Peter R. Orszag is ordering a review of the $80 billion the government spends every day on technology to find out whether lax oversight has led to cost overruns, delays and the implementation of obsolete systems.
Among the companies with contracts that will fall under the broader review are Accenture Plc, International Business Machines Corp., Oracle Corp. and SAP AG, according to Danny Werfel, the controller at OMB.
The initiative is part of a larger effort by Obama to decrease the budget deficit, which is projected to be a record $1.55 trillion this year. The president has already ordered a three-year freeze in non-defense and national security programs in his budget released Feb. 1, as well as required some agencies to reduce their 2012 budget requests by five percent.