Summary: Reengineering and modern technology offer great opportunities to reduce federal costs while improving government services. Yet after having spent more than $200 billion on information systems during the past 12 years, the federal government is in the worst possible situation--having invested heavily in costly information system projects that often fail to produce dramatic service improvements or significant reductions in personnel and administrative costs. Moreover, Congress and federal managers remain information poor, severely lacking in reliable data with which to measure the costs and results of agency operations. The Comptroller General's testimony discusses the (1) critical risks in the government's management of its $25 billion annual investment in information technology; (2) management practices used by leading organizations to reduce the risks of bad investments and increase the chances of successfully exploiting technology opportunities; and (3) steps that Congress and federal agencies can take now to bring about a government that is smaller, works better, and costs less.