DOD Business Systems Modernization: Progress Continues to Be Made in Establishing Corporate Management Controls, but Further Steps are Needed

Abstract : In 1995, the Government Accountability Office (GAO) first designated the Department of Defense's (DoD) business systems modernization program as "high risk," and GAO continues to do so today. To assist DoD in addressing its modernization challenges, the FY 2005 National Defense Authorization Act contained provisions that are consistent with prior GAO recommendations. More specifically, the act required the department to do the following: (1) develop a Business Enterprise Architecture (BEA), (2) develop a transition plan to implement the architecture, (3) include systems information in its annual budget submission, (4) establish a system investment approval and accountability structure, (5) establish an investment review process, and (6) approve and certify any system modernizations costing in excess of $1 million. The act further required that the Secretary of Defense submit an annual report to congressional defense committees on DoD's compliance with certain requirements of the act not later than March 15 of each year from 2005 through 2009. The act directs GAO to submit -- within 60 days of DoD's report submission -- to congressional defense committees an assessment of the actions taken to comply with these requirements. As agreed with DoD, the objectives of this review were to assess the actions taken by DoD to comply with the requirements of section 2222 of Title 10, U.S. Code, and determine the extent to which DoD has addressed GAO's prior open recommendations for institutionalizing key business system modernization management controls. In doing so, GAO reviewed documentation and interviewed officials relative to the act and related guidance. GAO is recommending that future DoD annual reports include an assessment by its independent verification and validation agent of the quality of the department's federated family of architectures, including the associated transition plan(s). In written comments, DoD agreed with GAO's recommendation.