DOD Business Systems Modernization: Additional Enhancements Are Needed for Army Business System Schedule and Cost Estimates to Fully Meet Best Practices

Abstract : Why GAO Did This Study. DOD officials have stated that the implementation of enterprise resource planning systems, such as GCSSArmy, is critical to the department s goal of correcting financial management deficiencies and ensuring that its financial statements are validated as audit ready by September 30, 2017, as called for by the National Defense Authorization Act for Fiscal Year 2010. GAO was asked to review the schedule and cost estimates for selected DOD systems. This report addresses the extent to which the schedule and cost estimates for GCSS-Army were prepared consistent with GAO s Schedule and Cost Guides. The schedule and cost estimates are designed to cover GCSS-Army implementation through 2017. GAO assessed the schedule and cost estimates that supported DOD s December 2012 full deployment decision, which granted approval for GCSS-Army to be deployed for operational use to all remaining locations. GAO also met with GCSS-Army program officials, including lead schedulers and cost estimators. What GAO Recommends. GAO is making two recommendations aimed at improving the Army s implementation of schedule and cost best practices for GCSS-Army. DOD concurred, but the completed actions it described related to the cost estimate were not fully responsive to GAO s recommendation. GAO continues to believe that fully incorporating best practices in the cost estimate would help improve its reliability.