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Gain Quick ROI with Technology Modernization Fund Investments

Summary3 min read

As part of the $1.9 trillion American Rescue Plan Act, the Technology Modernization Fund (TMF) will receive $1 billion for funding federal IT upgrades.

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As part of President Biden’s $1.9 trillion American Rescue Plan Act, the Technology Modernization Fund (TMF) will receive $1 billion for funding federal IT upgrades. 

Originally started in 2017, the TMF has expanded its focus on digital citizen services, legacy modernization, cybersecurity, data initiatives and multi-agency collaboration across many areas.

A core part of this program is the ability for agencies to be able to pay back the funds used for upgrades and the replacement of legacy IT systems within five years. The repayment structure has been criticized for disincentivizing critical projects that nevertheless cannot show a clear financial return, which is why the White House Office of Management and Budget (OMB) recently overhauled the repayment policy. Now, projects that address cybersecurity and pandemic response will not be required to repay the funds in full. Repayment, however, is still an important factor in project selection and will be considered on a case-by-case basis.

Gain faster ROI by reducing paperwork

The federal government has historically managed many of its processes with mountains of paperwork. Even with new modernization efforts in place, agencies still spend nearly $40 billion on paper intensive, manual processes that have little to do with their missions.

Agencies are required to file their annual paperwork burden and cost with OMB. They can use this data to identify the most costly paper-based processes that are most in need of improvement, which could make a good candidate for a TMF project.

The next step is estimating savings. There are a variety of online calculators to measure the return on electronic signatures and workflows. Docusign commissioned a Total Economic Impact™ study from Forrester Consulting for eSignature and Contract Lifecycle Management that allows agencies to see the economic impact of digitizing this paperwork. 

The new boost the TMF provides an opportunity for agencies to digitize paper-based processes and agreements, which will show quick savings and ROI that can be fully calculated and managed. 

Department of Health and Human Services (HHS) streamlines COVID grant processes

A prime example of time-to-value through the streamlining of processes, the Health Resources and Services Administration within HHS had to expedite its grant funding for hospitals and healthcare providers to help with lost revenue due to the pandemic. 

By developing a contractor-owned and operated solution, which included Docusign, the agency was able to shorten its grant distribution process from 3-4 months to as little as five days. According to Adriane Burton, CIO of HRSA, Docusign was used for streamlining the grant onboarding forms, and thousands of hours were saved for grantees overall. 

Advance the paperless government mission with TMF funds

Using TMF funds to digitize forms, agreements and other government paperwork is the ideal path for securing quick wins, and demonstrating cost-savings that can be used to repay TMF funds in a timely manner. By using TMF funds to go paperless, federal agencies can quickly create a better experience for citizens and staff, drive operational efficiencies, and enhance overall mission success.

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