DOD BUSINESS SYSTEMS MODERNIZATION: Important Management Controls Being Implemented on Major Navy Program, but Improvements Needed in Key Areas
Highlights of GAO-08-896, a report to the Subcommittee on Readiness and Management Support, Committee on Armed Services, U.S. Senate
The Department of Defense (DOD) has long been challenged in implementing key information technology (IT) management controls on its thousands of business system investments. For this and other reasons, GAO has designated DOD’s business systems modernization efforts as high-risk. One of the larger business system investments is the Department of the Navy’s Enterprise Resource Planning (Navy ERP) program. Initiated in 2003, the program is to standardize the Navy’s business processes, such as acquisition and financial management. It is being delivered in increments, the first of which is to cost about $2.4 billion over its useful life and be fully deployed in fiscal year 2013. GAO was asked to determine whether key IT management controls are being implemented on the program. To do this, GAO analyzed, for example, requirements management, economic justification, earned value management, and risk management.
What GAO Recommends
GAO is making recommendations to the Secretary of Defense aimed at improving cost and schedule estimating, earned value management, and risk management weaknesses. DOD largely agreed with GAO’s recommendations and described actions planned or under way to address them.
Highlights of GAO-08-896, a report to the Subcommittee on Readiness and Management Support, Committee on Armed Services, U.S. Senate
The Department of Defense (DOD) has long been challenged in implementing key information technology (IT) management controls on its thousands of business system investments. For this and other reasons, GAO has designated DOD’s business systems modernization efforts as high-risk. One of the larger business system investments is the Department of the Navy’s Enterprise Resource Planning (Navy ERP) program. Initiated in 2003, the program is to standardize the Navy’s business processes, such as acquisition and financial management. It is being delivered in increments, the first of which is to cost about $2.4 billion over its useful life and be fully deployed in fiscal year 2013. GAO was asked to determine whether key IT management controls are being implemented on the program. To do this, GAO analyzed, for example, requirements management, economic justification, earned value management, and risk management.
What GAO Recommends
GAO is making recommendations to the Secretary of Defense aimed at improving cost and schedule estimating, earned value management, and risk management weaknesses. DOD largely agreed with GAO’s recommendations and described actions planned or under way to address them.
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