VA Software License Management: Challenges and Progress
The Department of Veterans Affairs (VA) spends billions of dollars annually on IT investments, including commercial software licenses. Recent reports from the Government Accountability Office (GAO) highlight ongoing challenges in effectively managing these licenses, potentially leading to unnecessary costs and limited options for cloud computing. Although the VA has acknowledged these issues and is taking steps to address them, full implementation of recommended improvements is crucial.
GAO Findings: Tracking and Inventory Issues
A January 2024 government-wide report by the GAO revealed that while the VA identified its five most widely used software vendors, the department struggled to determine whether it was purchasing the appropriate number of licenses. Specifically, the VA was not tracking the number of software licenses currently in employ and did not regularly compare license inventories to purchase records. This lack of visibility hinders the VA’s ability to optimize spending and avoid over or under-purchasing licenses.
|
Key activity |
Assessment |
|---|---|
|
Track software licenses that are currently in use |
Not met |
|
Regularly compare the inventories of software licenses that are currently in use to purchase records |
Not met |
Source: GAO analysis of agency data. GAO-26-109060
The VA has concurred with GAO’s recommendations to improve license tracking and is taking preliminary steps. As of early March 2026, VA officials reported plans to implement initial functionality for a centralized software license inventory by late March 2026. Successful implementation could significantly improve the department’s ability to manage its software assets.
Restrictive Licensing Practices and Cloud Computing
A November 2024 GAO report identified another challenge: restrictive software licensing practices impacting the VA’s cloud computing efforts. These practices, imposed by certain vendors, can increase costs or limit the VA’s choice of cloud service providers. The VA had not yet established guidance for managing these impacts or assigned responsibility for mitigating them.
To address this, the VA plans to establish a working group composed of IT and acquisition experts to identify, analyze, and mitigate the impacts of restrictive licensing practices on cloud computing. This working group was slated to be operational by September 2026, but updates on its status are pending.
VA IT Spending and High-Risk Status
The VA’s IT spending is substantial. In fiscal year 2025, the department planned to spend approximately $985 million on software. The management of software licenses has been identified as a high-risk area by the GAO since 2015, underscoring the importance of addressing these challenges.
The GAO continues to monitor the VA’s progress in implementing these recommendations, emphasizing that full implementation is essential to minimizing costs and mitigating the impacts of restrictive licensing practices.