The congressional watchdog noted in its release that the VA has implemented six of its 29 open priority recommendations, including the deployment of an automated data tool used to improve acquisition workforce records and taking steps to modernize the agency’s performance management system across the Veterans Health Administration. 

Assessing software licenses, however, is something that the VA needs to address, per the watchdog. In January, the GAO issued a report on software licenses throughout the federal government,  noting that the VA had neglected to regularly compare software license inventories that are currently used with purchase records. 

In the new priority recommendations, GAO noted that the federal government spends more than $100 billion yearly on cyber and IT-related investments. 

“Until VA implements this priority recommendation and consistently tracks and compares its inventories of software licenses to with known purchases, it is likely to miss opportunities to reduce costs on duplicative or unnecessary licenses,” the report states. 

Other high-risk governmentwide areas that could impact the VA, according to the GAO, are “improving the management of IT acquisitions and operations” and “ensuring the cybersecurity of the nation.”

Charles Worthington, the VA’s chief AI and technology officer, said in a recent interview with FedScoop that he believes the VA’s technical infrastructure “is actually on pretty good footing,” pointing to the agency’s migration to the cloud and using commercial products in the software-as-a-service model, “where it makes sense.”

Other priority recommendations from the GAO cover the VA’s electronic health records (EHR) modernization program, including one that directs the agency to implement “leading practices for change management.” The other nine involve evaluating whether the system is “operationally suitable and effective” to ensure that the system satisfies customer needs, establishing “user satisfaction targets” to protect patients’ health and safety from unnecessary risks, and validating that future systems are not deployed too early. 

“Implementing these … recommendations would also help solve existing problems with the system,” the GAO stated.

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Mangala Kuppa, who took over as DOL’s chief AI officer this week after previously serving as its deputy CAIO, believes the agency has even more to be confident about when it comes to its work on the technology, possessing a “leg up” on scaling AI quickly.

In an interview with FedScoop, Kuppa pointed to DOL’s previous efforts to modernize internal operations and customer-facing services as part of the department’s journey to implement emerging technologies like AI. Having foundational building blocks and existing infrastructure, along with existing AI applications, has made it “easier” for the agency to scale up, she said. 

“It’s not a ‘big bang’ approach,” said Kuppa, who also serves as DOL’s chief technology officer. “Another aspect that we take very seriously in modernizing is [to] take this opportunity to not just update the technology, but also take this opportunity to re-engineer the business process to help the public.” 

Kuppa pointed to an internal shared services initiative that designated the agency’s Office of the Chief Information Officer to be a “shared services provider for all Departmental IT services.”  That process, Kuppa said, has allowed the department to keep an inventory of all systems and technologies and understand where the legacy systems or opportunities for improvement might exist.

“Using that methodology, we’ve been looking at all high-risk systems, because maybe the technology is very legacy and outdated,” Kuppa said. “We’ve been using that methodology to start those modernization initiatives.”

By considering the age of the technology, the operations burden, security vulnerabilities, regulation compliance and other parameters, DOL came up with a methodology that scores each mission system to determine if it is a candidate for modernization. The agency then looks at the scores on a consistent basis and revises based on new information that becomes available.

These systems can be major: the DOL’s Employment and Training Administration, for example, which provides labor certifications when a company files for hiring an immigrant workforce, was scored for modernization.

“Being an immigrant, I wasn’t aware DOL had a hand in my immigration journey there,” Kuppa said. 

The Technology Modernization Fund has played an “instrumental” role in the department “finding the resources to modernize,” Kuppa said.

She gave the example of using TMF funds to expedite temporary visa applications, which is expected to save 45 days of cycle time for processing labor certification applications.

According to a case study on the TMF site, that project contributed to $1.9 million in annual cost savings, and a key part of the innovation allowed the application forms to auto-populate with the previous year’s information.

“Usually all immigrants eventually start filing for permanent visa applications,” Kuppa said. “Again, you have to repeat the process of labor certification, and so we had two different systems not communicating with each other.”

For Kuppa, modernization is ultimately an exercise in reimagining where new technologies can ultimately be most helpful.

“We have great partnership, we work very closely with our programs and then we have these dialogues every day, in terms of the system’s development lifecycle,” she said. “And that’s how we approach modernization.”

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In an interview with FedScoop, Charles Worthington, the VA’s CAIO and CTO, said the agency is engaged in targeted hiring for AI experts while also sustaining its existing modernization efforts. “I wish we could do more,” he said.

While Worthington wrestles with the proposed fiscal year 2025 funding reductions, the VA’s Office of Information and Technology also finds itself in the legislative crosshairs over modernization system upgrades, a supposed lack of AI disclosures and inadequate tech contractor sanctions and ongoing scrutiny over its electronic health record modernization initiative with Oracle Cerner. 

Worthington spoke to FedScoop about the VA’s embrace of AI, the status of its modernization push, how it is handling budget uncertainty and more.

Editor’s note: The transcript has been edited for clarity and length. 

FedScoop: I know that you’ve started your role as the chief AI officer at the Department of Veterans Affairs. And I wanted to circle back on some stuff that we’ve seen the VA engaged with this past year. The Office of Information and Technology has appeared before Congress, where legislators have voiced their concerns for AI disclosures, inadequate contractor sanctions, budgetary pitfalls in the fiscal year 2025 budget for VA OIT and the supply chain system upgrade. What is your response to them?

Charles Worthington: I think AI represents a really big opportunity for the VA and for every agency, because it really changes what our computing systems are going to be capable of. So I think we’re all going to have to work through what that means for our existing systems over the coming years, but I think really there’s hardly any part of VA’s software infrastructure that’s going to be untouched by this change in how computer systems work and what they’re capable of. So I think it’s obviously gonna be a big focus for us and for Congress over the next couple of years. 

FS: I want to take a step back and focus on the foundational infrastructure challenges that the VA has been facing. Do you attribute that to the emerging technologies’ need for more advanced computing power? What does that look like?

CW: I think overall, VA’s technical infrastructure is actually on a pretty good footing. We’ve spent a lot of time in the past 10 years with the migration to the cloud and with really leaning into using a lot of leading commercial products in the software-as-a-service model where that makes sense. So, by and large, I think we’ve done a good job of bringing our systems up to standard. I think it’s always a challenge in the VA and in government to balance the priorities of modernization and taking advantage of new capabilities with the priorities of running everything that you already have.

One of the unique challenges of this moment in time is that almost every aspect of the VA’s operations depends on technology in some way. There’s just a lot of stuff to maintain; I think we have nearly a thousand systems in operations. And then obviously, with something like AI, there’s a lot of new ideas about how we could do even more [to] use technology and even more ways to further our mission. 

FS: In light of these voiced concerns from legislators, as you progress into your role of chief AI officer, how do you anticipate the agency will be able to use emerging technologies like AI to its fullest extent?

CW: I think there’s really two priorities that we have with AI right now. One is, this represents an enormous opportunity to deliver services more effectively and provide great technology services to the VA staff, because these systems are so powerful and can do so many new things. One priority is to take advantage of these technologies, really to make sure that our operations are running as effectively as possible. 

On the other hand, I think this is such a new technology category that a lot of the existing processes we have around technology governance in government don’t apply in exactly the same ways to artificial intelligence. So in a lot of ways, there are novel concerns that AI brings. … With an AI system that is, instead, taking those inputs and then generating a best guess or generating some piece of content, the way that we need to make sure that those systems are working effectively, those are still being developed. At the same time, as we’re trying to take advantage of these new capabilities, we’re also trying to build a framework that will allow us to safely use and deploy these solutions to make sure that we’re upholding the trust that veterans put in us to manage their data securely. 

FS: In what ways is the agency prioritizing AI requirements, especially from the artificial intelligence executive order that we saw last October, and maintaining a competitive edge with the knowledge that the fiscal year 2025 budget has seen a significant clawback of funds?

CW: We are investing a lot in standing up, I would say, the AI operations and governance. We have four main priorities that we’re focused on right now. One is setting up that policy framework and the governance framework for how we’re going to manage these. We have already convened our first AI governance council meeting — we’ve actually had two of them — where we’re starting to discuss how the agency is going to approach managing our inventory of AI use cases and the policies that we’ll use. 

The second priority is really focused on our workforce. We need to make sure that our VA staff have the knowledge and the skills they need to be able to use these solutions effectively and understand what they’re capable of and also their limitations. We need to be able to bring in the right sort of talent to be able to buy and build these sorts of solutions. 

Third, we’re working on our infrastructure [to] make sure that we have the technical infrastructure in place for VA to actually either build or, in some cases, just buy and run AI solutions. 

Then, finally, we have a set of high-priority use cases that we’re really leaning into. This was one of the things that was specifically called out to the VA in the executive order, which was basically to run a couple of pilots — we call them tech sprints — on AI.

FS: I would definitely love to hear some insights from you personally about some challenges you’re anticipating with artificial intelligence, especially as you’ve referenced that the VA has already been using AI.

CW: I think one of the challenges right now is that most of the AI use cases are built in a very separate way from the rest of our computing systems. So if you take a predictive model, it maybe takes a set of inputs and then generates a prediction, which is typically a number. But how do you actually integrate that prediction into a system that somebody’s already using is a challenge that we see, I think, with most of these systems.

In my opinion, integrating AI with more traditional types of software is going to be one of the biggest challenges of the next 10 years. VA has got over a thousand systems and to really leverage these tools effectively, you’d ideally like to see these capabilities integrated tightly with those systems so that it’s all kind of one workflow, and it appears naturally as a way that can assist the person with the task they’re trying to achieve, as opposed to something that’s in a different window that they’ve got to flip back and forth between. 

I feel like right now, we’re in that awkward stage where most of these tools are a different window … where there’s a lot of flipping back and forth between tools and figuring out how best to integrate those AI tools with the more traditional systems. I think that’s just kind of a relatively unfigured-out problem. Especially, if you think of a place like VA, where we have a lot of legacy systems, things that have been built over the past number of decades, oftentimes updating those is not the easiest thing. So I think it really speaks to the importance of modernizing our software systems to make them easier to change, more flexible, so that we can add things like AI or just other enhancements.

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During the Workday Federal Forum, GSA Administrator Robin Carnahan teased that the agency is working on an open-source tool called “Gov CX Analyzer,” which uses artificial intelligence features to see how individuals are interacting with government websites.

“This is a way to go from a few thousand people filling out a survey, to actually knowing and seeing how people are interacting with your site,” Carnahan said. “It just completely unlocks the potential to know how you can better serve your customers, where the friction points are and how you can improve it.” 

Carnahan pointed to the U.S. Web Design System — an open-source tool that is free for agencies to use — as a shared system and tool that “makes a huge difference.” 

Similar efforts include an announcement from the Office of Management and Budget last year that detailed an analytics tool to track customer experience performance across agency sites. OMB reported leveraging the GSA’s site scanner program to use performance indicators in the tracking of agencies’ site developments.

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The legislation, a revitalization of the Modernizing Government Technology Reform Act from 2017, calls on agencies to adhere to the original intent of the bill and require issued funds to be repaid or reimbursed to ensure TMF sustainability and solvency. With some new amendments, Congress struck down the act’s authorized appropriations amount requirements and extended the sunset date to December 2031.

There is not currently a companion bill in the Senate, but the House Oversight and Accountability Committee is in conversation with the chamber to support the legislation further.

A committee aide said the House bill was modified to “reflect the reality that the fund is a revolving fund, and therefore has different appropriating needs every appropriation cycle.”

“That doesn’t mean we don’t intend for the fund to be appropriated,” the aide continued. “We are taking out the stagnant annual appropriations amount and allowing for more dynamic appropriations to be decided by the appropriations committees each fiscal year.”

Significantly, the bill aims to impose additional constraints on reimbursements to provide agencies with flexibility for repaying the fund.

The new bill was marked up in September and passed out of committee unanimously — a precursor to the continued bipartisan support expected by the committee. The fiscal year 2024 spending package had rescinded $100 million from the TMF, drawing calls from board chair and federal CIO Clare Martorana for Congress to “please fund the TMF.” 

The aide shared that the committee has been in “a series of positive conversations” with the General Services Administration, which manages the TMF program office. 

“I think there’s a bipartisan interest on the Hill ensuring the TMF remains a successful tool to address legacy IT for the next several years and into the future,” the aide said. “I think GSA is aligned with our vision and approach for how we hope to see that done.”

In February, GSA updated its policy for agencies seeking financial assistance from the TMF that set the repayment floor at a minimum of 50%, with room for exceptions to be decided by the GSA administrator and the Office of Management and Budget director.

Both GSA and OMB declined to comment.  

“I think we have additional conversations to have on the Hill about how to appropriately fund the TMF while ensuring that it’s a revolving fund and those funds are being best used to support legacy IT projects,” the aide said. 

Rep. Gerry Connolly, D-Va. — who is co-sponsoring the bill with Reps. Nancy Mace, R-S.C., and Ro Khanna, D-Calif. — said in an email to FedScoop that he believes “the federal government is only as good as the IT [it] utilizes,” a principle that he said led him to author the legislation and drives his “critical oversight efforts” of programs like FITARA.

“With this bill, we can ensure the federal government is able to modernize its IT, move away from its reliance on legacy systems, and better serve the American people who rely on government technology to deliver for them,” Connolly said.

Mace did not respond to a request for comment in time for publication.

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The Technical Advisory Group, part of a broader effort to engage stakeholders and support FedRAMP processes related to delivering emerging technology solutions to assist agencies, will inform decision-making on the technical, strategic and operational direction of the government-wide compliance program, according to a GSA press release. 

“This group will help make FedRAMP a smarter and more technology-forward operation that better meets its goals of making it safe and easy for federal agencies to take full advantage of cloud services,” Eric Mill, GSA’s executive director for cloud strategy in Technology Transformation Services, said in the statement. 

Members of the inaugural group are: Laura Beaufort, technical lead with the Federal Election Commission; Paul Hirsch, technical lead with TTS; Michael Boyce, director of DHS’s AI Corps; Elizabeth Schweinsberg, senior technical adviser at CMS; Grant Dasher, architecture branch chief in the Cybersecurity and Infrastructure Security Agency’s Office of the Technical Director; Nicole Thompson, cybersecurity engineer with the Department of Defense’s Defense Digital Service; and Brian Turnau, cloud authorization program manager with GSA’s Office of the Chief Information Officer.

Laura Gerhardt, director of technology modernization and data in the Office of Management and Budget, said in a statement that “the TAG is well-positioned to provide valuable insights into streamlining processes, enhancing security postures and adapting to novel technology implementations so that agencies can leverage the full potential of FedRAMP.” 

GSA released a new roadmap for modernization efforts through the FedRAMP program in March and has since revealed a slew of other FedRAMP-related announcements.

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During the Scoop News Group-produced Amazon Web Services Innovate Day event, Skip Jentsch, cloud products manager for GSA, shared that the agency is focused on “new” special ordering procedures implemented for procuring cloud computing on a consumption basis. 

“GSA has stepped in and created this special ordering procedure,” Jentsch said during the event. “And all it does is that any kind of contract or [blanket purchase agreement] led against the GSA schedule, cloud special item number, is firm fixed price.”

Jentsch hinted at potential legislation that would further help address gaps in federal acquisition regulation. He said these regulations do not mention cloud or how to pay for cloud on an incremental basis. 

Separately, Sens. Gary Peters, D-Mich., and Ted Cruz, R-Texas, last month introduced the Federal Improvement in Technology Procurement Act, which focuses on assisting agencies with the procurement cycle for IT capabilities such as cloud computing.

The legislation, which passed through the Senate Homeland Security and Governmental Affairs Committee without opposition on Wednesday, would require federal procurement rules to update and get rid of “obsolete, overly burdensome or restrictive requirements” to allow an ease of process for contractors and collaborations between the public and private sectors.

A spokesperson for Cruz said in an email to FedScoop that the senator “believes increasing competition within the procurement process for emerging technologies is essential for lowering government costs, protecting taxpayers, and allowing innovative small businesses to compete on a level playing field for government contracts.” 

A committee aide for Peters told FedScoop that the bipartisan vote “signals its strength to continue to advance” and that the senator will work to continue building support. While there isn’t a House companion yet, the aide said “the committee is hopeful there will be interest for the House to take on this important effort.”

This story was updated May 16, 2024, with information on the committee vote on the Federal Improvement in Technology Procurement Act and comments from Cruz’s spokesperson and a Peters aide.

FedScoop reporter Madison Alder contributed to this story.

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During a Tuesday hearing regarding the VA OIT’s budget justification, Chairman Matt Rosendale, R-Mont., and ranking member Sheila Cherfilus-McCormick, D-Fla., both questioned how the budget would affect operations. 

Kurt DelBene, the VA’s CIO and assistant secretary for IT, acknowledged that “it is a challenging budget for us,” forcing the agency to “be very focused on where we invest.” Modernization funds, he said, will have to be “judiciously” allocated “against the highest-priority projects” that the agency has. 

DelBene said that the agency’s original budget submission to the Biden administration did not reflect the same reduction to development efforts specifically for technology as the FY25 document ultimately did. 

The FY25 budget in brief, released by the VA, listed the following reductions across OIT:

• Development allocations at $960,000, a 99.2% reduction, or approximately a $125 million decrease. 
• Enhancement funds at $45 million, an 87.7% decrease, previously standing around $363 million.
• Modernization funds for FY25 are $267 million, a 66.5% cut, previously having allocated funds just under $800 million. 

As a result of the clawed-back funds for VA OIT, DelBene said that the agency is going to have to have a “very strict prioritization of the work that we do.” 

“I do think that we will be able to address the critical projects that we need to address in FY25 with this budget,” he added. “I think we’re making some trade-offs, which will not work well if we sustain those over multiple years.”

In response to a question from Cherfilus-McCormick, DeBene pointed to the need for increases in future years “because you can’t just continue to be at a lower level” for these funding allocations. 

DelBene also noted that the department is looking at a decreased budget for replacing technology, such as PCs, which he estimated to cost between $15-$20 million. 

“We will replace PCs less frequently as a result,” DelBene said. “That’s my point, is that we can’t continue to do that every year. But I feel especially with some of the funding we’ve got recently and the fact the fleet has been updated, we can do that for one year and make that through. But we’re going to have to be diligent about it in future years.”

DelBene said his goal is to not allow veteran care to be hampered as a result of budgetary pitfalls.

“There are difficult choices that have to be made across the entire administration so I respect the challenges of making those cuts,” DelBene said.

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In the report, NRC staff recommended an AI framework for the agency to follow, which outlines approaches for AI governance, hiring new talent, upskilling existing workers, maturing the commission’s data management program and allocating resources to support AI integration into IT infrastructure. 

Additionally, NRC staff recommended that the agency invest in “foundational tools” by acquiring gen AI-based services and integrating AI in the NRC’s system for document access and management’s cognitive search technology.

“To effectively implement AI solutions, the NRC will need to develop a framework to deploy AI at the agency,” the report states. “As part of this effort, the NRC will continue to strengthen its many partnerships to stay current with the evolving state of AI. To achieve the promise of AI, leadership engagement will be essential.”

The report pushed for a collaborative approach to furthering the NRC’s use of the technology, pointing to the Chief AI Officers Council, the Responsible AI Officers Council, and other individual agency partnerships as being “essential to the agency’s response to the rapidly changing AI landscape.”

The NRC’s AI team — designated to lead this review by the agency’s executive director for operations — reported working closely with internal data scientists and subject matter experts to consider possible AI uses. Staff reviewed 61 AI use cases and identified 36 that align with tools that have AI capabilities, while the other 25 could “be addressed using non-AI solutions.”

The nuclear industry currently uses AI to “change its approach to some nonregulated activities and has expressed interest in using AI for NRC-regulated activities,” per the report, adding that the NRC is investing in AI research to identify where AI could build foundational knowledge across the agency, while still meeting its mission. 

Staff reported that the broad approach to AI research is “preparing the agency to use AI to increase staff knowledge and experience for future regulatory reviews and oversight.”

The NRC’s congressional budget justification for fiscal year 2025 carved out over $4 million for AI-related funds.

Correction: This story was updated May 13, 2024, to indicate that the nuclear industry, not the NRC, is using AI to alter its approach on some nonregulated activities.

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“Frankly, there aren’t enough places for agencies to go across government when they have technical questions or need technical help, so we get a huge array of requests,” USDS Administrator Mina Hsiang said in an interview with FedScoop.  

Those requests, many of which are detailed in the 2024 impact report USDS released Thursday, can’t all be addressed. Hsiang said USDS works to fulfill “over a quarter” of the agency requests for partnership, with consultation but not full engagement provided on approximately 10% of those asks. 

“We do a lot of work to contemplate the size of the population impacted, the vulnerability of the population impacted, the change it will have on the service and how critical the service is for people’s livelihood,” she said.

In its report, USDS outlined progress on 10 different projects across agencies, covering topics including digital service accessibility, building veteran trust, federal benefits for families and more. 

A closer look at USDS projects

In its partnership with the Social Security Administration, USDS worked with the agency to “observe customers” and learn how the public engaged with SSA’s website. According to the report, the project would save an estimated $285 million over five years for infrastructure expenses. 

The partnership with SSA has “created momentum to improve service delivery” through transforming the agency’s static homepage, the report noted, replacing “complicated” policy language with a conversational eligibility screener and building development infrastructure that involves a content management system and more.

The USDS is currently working with the Department of Veterans Affairs’ Office of the Chief Technology Officer to develop software intended to improve the lives of veterans. In teaming with the agency on VA.gov, USDS aimed to build veterans’ trust in the VA. Per the report, veterans’ trust in the VA climbed from 70.4% in FY18 — the year of VA.gov’s relaunch — to 79.3% in FY23.

“The Veteran Experience Office does a very comprehensive work of engaging veterans and building an array of metrics together,” Hsiang said.

The impact report also touted USDS’s partnership with the Department of Health and Human Services to help modernize and implement services that support an interagency Life Experience Research Team, aiming for “simpler, more accessible and equitable” digital experiences. Specifically, the organization conducted research with a nationwide group of participants, documenting their experiences throughout pregnancy and childbirth along with any relevant interactions with the federal government. 

Working with an HHS Life Experience Research Team that included  representatives from the General Services Administration, the Department of Labor, the Department of Housing and Urban Development and others, USDS piloted three digital programs to support families, including a text message service called Notify.gov that allows government partners to send texts about benefits and support programs to the public.

“This is one of those places where we can partner very closely with an agency that’s building out a shared capability for more folks and give them direct feedback,” Hsiang said. “The team had a very good experience with it.”

Though not listed in the impact report, the USDS also worked “extremely closely” with the IRS on the implementation of its Direct File pilot program. Hsiang said the partnership was not included in the report due to a timing issue, but noted that USDS assisted in technical expertise, user research, product management and more. Direct File was utilized by over 140,000 taxpayers in its inaugural run, according to the IRS. 

“This pilot is only with 12 states, but obviously there’s real opportunities for growth there because building out that capability so that folks in every state can have this option will be important,” Hsiang said. “The tax code is huge and incredibly complex, so there were almost 20 million people who were eligible for this pilot, but it will be important to expand that capability to encompass more individuals.”

A busy year followed by more to come from USDS

For Hsiang, who has led USDS since September 2021, the release of the impact report represents what she views as “a year of launching things.”

“There’s a lot of programs here that are a demonstration of incredible value in themselves, but also a proof of concept of a new model working,” Hsiang said. 

USDS is investing in hiring both internally and with agency partnerships, Hsiang said, in an effort to capitalize on momentum to build long-term capacity within agencies. She confirmed that the USDS is working to support agencies in hiring more talent, including as part of efforts called out in the White House’s artificial intelligence executive order.

“I think there’s a lot of interest, but the talent moves quickly, gets hired quickly, looks for competitive salaries and opportunities,” Hsiang said. “That will definitely be a challenge, but one we’re excited to take on.”

Hsiang said her hope for this report is a “clear illustration” of what government talent is able to accomplish, and stressed the importance of USDS’s investment in technology-centered work.

“I think the report starts to give a real detailed window into the range of different types of work that we do and the short- and long-term impacts that it can have,” Hsiang said. “One of the things that we hear across government regularly is that technology ends up slowing people down instead of speeding them up, if it’s not implemented right. That is not what anyone intends and that’s not what we’re investing for.”

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