Flexible funding and strong relationships contribute to Labor’s IT modernization successes

Labor has successfully navigated the challenges of IT modernization funding, offering valuable lessons for other federal agencies, according to a story on Federal News Network. Former CIO Gundeep Ahluwalia used the Modernizing Government Technology (MGT) Act’s ability to create working capital funds by fostering crucial relationships within the department and with Congress.

The resultant working capital fund allowed Labor to collect and repurpose unused funds for IT modernization. This approach, coupled with strategic demonstrations of technologies, convinced Congress to increase the fund's cap to $36 million annually from $18 million .

The department's IT spending shifted dramatically, with development, modernization, and enhancement (DME) projects increasing to 26% from 10% . Labor also secured six Technology Modernization Fund (TMF) awards, totaling more than $150 million over three years.

Ahluwalia emphasizes the importance of collaboration between IT, budget, and procurement teams, and maintaining strong relationships with OMB and the Federal CIO Council. This comprehensive strategy has enabled Labor to eliminate mainframes and legacy systems, setting a replicable model for other agencies seeking to modernize their IT infrastructure.