Four out of five federal IT executives believe their agency’s mission is threatened by outmoded IT applications, according to a survey by Unisys Corp.

But only one out of three among those surveyed said IT modernization was a top priority. The executives estimated that nearly half of IT applications are based on legacy technologies that need modernization.

Unisys said nearly half the federal IT budget goes to maintenance of older systems.

The Defense Department will require cost estimates on any new initiatives or policies. A new website, available to employees only, provides tools for calculating costs.

Defense Secretary Robert Gates directed all hands to begin using the cost-estimating tools Feb. 1. In a memo, Gates said the requirement applies to “any new proposal or initiative, large or small, be it policy, program or ceremony.”

The secretary has complained about the cost of hundreds of reports the department churns out every year. On Jan. 6 he ordered 400 internal reports scuttled because they often “are of questionable relevance, value, and in many cases have been rarely read.” He said another 700 annual reports are required by Congress.

SBA is seeking grant proposals under its new Small Business Teaming Pilot program. Grants will be awarded to well-established national organizations interested in providing training, guidance, counseling, mentoring and procurement assistance to small businesses in teaming arrangements.

The program, established by Congress under the Small Business Jobs Act of 2010, provides funding for 10 to 20 grant awards in the range of $250,000 to $500,000.

Both for-profit and nonprofit organizations are eligible. For more information, go to www.sba.gov/teaming.

More than 20 IRS contractors owe delinquent taxes totaling approximately $5.2 million, according to a report by the agency’s inspector general for tax administration. The IG said IRS procurement officials often fail to verify whether contractors are up to date with federal corporate and payroll taxes.

The Justice Department said hardware distributor Fastenal Inc. has agreed to pay $6.25 million to settle claims that it overcharged the government on its GSA Schedule contract. The company did not admit any wrongdoing.

GSA’s inspector general accused Fastenal of failing to give the government most-favored-customer discounts, as required by the price reduction clause in its contract.