M-16-19 - Data Center Optimization Initiative


FROM: Tony Scott- Federal Chief Information Officer

SUBJECT: Data Center Optimization Initiative (DCOI)

August 1, 2016


In 2010, the Office of Management and Budget (OMB) launched the Federal Data Center Consolidation Initiative (FDCCI) to promote the use of green IT by reducing the overall energy and real estate footprint of government data centers; reduce the cost of data center hardware, software, and operations; increase the overall IT security posture of the Federal Government; and shift IT investments to more efficient computing platforms and technologies.1

In December 2014, the President signed into law the Federal Information Technology Acquisition Reform Act (FITARA),2 which enacts and builds upon the requirements of the FDCCI. FITARA requires that agencies submit annual reports that are to include: comprehensive data center inventories, multi-year strategies to consolidate and optimize data centers, performance metrics and a timeline for agency activities, and yearly calculations of investment and cost savings.
In addition, FITARA requires the Administrator of the Office of E-Government and Information Technology (henceforth referred to as the Office of the Federal Chief Information Officer (OFCIO)3) to establish and publish cost savings and optimization improvements, provide public updates on cumulative cost savings and optimization improvements, and review agencies’ data center inventories and the implementation of data center management strategies.
This memorandum defines a framework for achieving the data center consolidation and optimization requirements of FITARA, the criteria for successful agency data center strategies, and the metrics OMB OFCIO will use to evaluate the success of those strategies


1 The FDCCI was first established by OMB “Memo for CIOs: Federal Data Center Consolidation Initiative,” issued on February 26, 2010, and modified by subsequent memoranda.
2 Title VIII, Subtitle D of the National Defense Authorization Act (NDAA) for Fiscal Year 2015, Pub. L. No. 113-291.
3 This office was established in accordance with Section 101 of the E-government Act of 2002, codified at 44 U.S.C. § 3602, and is headed by the Federal government Chief Information Officer. This office will also be referred to as OMB’s Office of the Federal Chief Information Officer (OFCIO).