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Software Licensing Costs Draw Lawmakers' Scrutiny

Rep. Steve Russell is teaming up with Democrats in the House and Senate to force federal agencies to stop wasting money on software licenses — a seemingly minor thing that actually adds up to hundreds of millions of dollars.

By Chris Casteel, The Oklahoman, Oklahoma City

Rep. Steve Russell is teaming up with Democrats in the House and Senate to force federal agencies to stop wasting money on software licenses — a seemingly minor thing that actually adds up to hundreds of millions of dollars.

Russell, R-Choctaw, said Thursday that problems in purchasing and renewing licenses for commercial software could be reduced by pressuring agencies to incorporate better management techniques and report to Congress on their progress.

A House committee approved legislation co-sponsored by Russell to require the increased focus on the licenses, which are required by many commercial software makers.

A full House vote could come next week.

Russell has been working with Democratic Reps. Matt Cartwright, of Pennsylvania, and Tammy Duckworth, of Illinois. A bipartisan Senate bill also has been introduced.

The Government Accountability Office surveyed 24 departments and agencies in 2014 and found only two with comprehensive policies.

"As a result, agencies' oversight of software license spending is limited or lacking, and they may miss out on savings," the GAO said then. "The potential savings could be significant considering that, in fiscal year 2012, one major federal agency reported saving approximately $181 million by consolidating its enterprise license agreements even though its oversight process was ad hoc."

Common Problem

A common problem, Russell said, was agencies paying for more licenses than necessary. With better coordination, agencies with a surplus could make sure the licenses are used elsewhere within the government, he said.

"Hundreds of millions of dollars are needlessly wasted," he said.

The executive branch has been working on the GAO's recommendations.

The GAO said the White House budget office in December issued draft guidance to agencies about managing the licenses better.

"Once completed, this guidance should assist agencies in identifying software license-related cost savings across the federal government," the GAO reported recently.

Lankford Targets Gimmick

Also on Thursday, Sen. James Lankford, R-Oklahoma City, tried unsuccessfully to eliminate what he called a budget gimmick used to hide deficit spending.

Lankford said Congress counts unspent balances in the Crime Victims Fund as "savings" that can offset spending elsewhere. A $9 million balance in the fund can lead to $100 million in additional spending over a decade, Lankford said.

The Senate Appropriations Committee, controlled by Republicans, defeated Lankford's amendment to change the way the money is counted.

“Congress should stop trying to trick the American people through dishonest budgetary practices,” Lankford said.

"Although my amendment did not pass, I remain hopeful that we can eliminate this practice in the near future.”

©2016 The Oklahoman Distributed by Tribune Content Agency, LLC.