Introduction: Software Asset Management Hurdles at the VA
The Department of Veterans Affairs (VA) is facing substantial challenges in its software asset management initiatives, according to a recent Government Accountability Office (GAO) report. The GAO highlights that the absence of a permanent Chief Information Officer (CIO) has hindered the VA’s ability to implement effective planning and governance practices for two major software programs: the Enterprise Software Asset Management (eSAM) program and the software license inventory project. These deficiencies have led to gaps in oversight, planning, and stakeholder engagement, putting the VA at risk of overspending and missing out on critical cost-saving opportunities.
GAO Report Uncovers Weaknesses in VA’s Software Management
The audit, which reviewed the VA’s software management efforts from July 2025 through the present, found that both the eSAM program and the software license inventory project lacked essential governance frameworks, comprehensive license management, and life cycle management planning. According to the GAO, until the VA fully implements best practices for software asset management, it will continue to struggle with department-wide oversight and efficiency.
The report specifically pointed out that the VA failed to establish a clear business use case and governance plan for the eSAM program. Moreover, there was no defined training plan or formal program office. Similar shortcomings were noted for the software license inventory project, including the absence of proper documentation and insufficient management planning.
Leadership Instability Hampers Oversight
One of the root causes identified by the GAO is the high turnover rate in the VA’s IT leadership, particularly the lack of a permanent CIO since January 2025. This leadership vacuum has negatively impacted the department’s ability to provide consistent oversight for critical programs like eSAM and the software inventory project. VA officials have expressed hope that, once a permanent CIO is appointed, new IT governance structures and processes will be established to address these issues.
Gary Shatswell, the current nominee for CIO, emphasized during a recent Senate hearing that one of his top priorities would be to institute a robust program management office. He also highlighted the importance of adopting agile Scrum project management methodologies to enhance accountability and transparency within the VA’s IT portfolio—a portfolio he described as a “target-rich environment” in need of significant reform.
Financial Stakes: Nearly $1 Billion at Risk
The GAO report revealed that the VA plans to spend approximately $985 million on software in fiscal year 2025, including commercial software licenses. Effective software asset management is crucial to ensuring that these funds are spent wisely and that the department does not over- or under-invest in software solutions. The lack of proper management and planning not only jeopardizes the VA’s ability to optimize its software investments but also increases the risk of inefficiency and waste.
Historical Context: Ongoing Challenges in Federal IT Management
The GAO has a long history of highlighting weaknesses in federal IT acquisitions and operations. Over a decade ago, it first identified federal software management as a high-risk area. Since then, agencies that have implemented GAO recommendations have collectively saved an estimated $4.6 billion. The VA’s ongoing challenges underscore the importance of strong governance, oversight, and effective software asset management practices for federal agencies.
Path Forward: Recommendations and Department Response
To address these issues, the GAO made 18 recommendations aimed at improving the VA’s management and planning processes for software assets. The department has concurred with all of these recommendations, signaling a willingness to take corrective action. However, meaningful progress will likely depend on the appointment of a permanent CIO and the establishment of strong governance frameworks to guide future software investments.
Conclusion: The Critical Role of Software Asset Management
As the VA moves forward with nearly a billion dollars in planned software spending, implementing effective software asset management practices will be essential for achieving cost savings and ensuring operational efficiency. The GAO’s findings emphasize the need for stable leadership, robust governance, and a commitment to best practices in managing software assets. Addressing these challenges will not only benefit the VA but also serve as a model for other federal agencies facing similar issues.
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