DOD Business Systems Modernization: Important Management Controls Being Implemented on Major Navy Program, but Improvements Needed in Key Areas

Abstract : DOD has implemented key IT management controls on its Navy ERP program to varying degrees of effectiveness. To its credit, one of the controls has been fully implemented; important aspects of other controls have not. Collectively, these management controls are to ensure that a given system investment represents the right solution to filling a mission need, meaning that the system is defined to (1) minimize overlap and duplication and maximize interoperability with related systems and (2) produce mission benefits commensurate with costs over its useful life. The controls are also to ensure that the system is acquired and deployed the right way, meaning that it is done in a way to maximize the chances of delivering defined system capabilities and benefits on time and within budget. Given that deployment of Navy ERP is more than 2 years behind schedule and is to cost about $570 million more than was originally envisioned, these goals have already not been fully met, in part because DOD program management and oversight entities have not fully implemented several key IT management controls. As a result, the department has yet to adequately demonstrate that the program's first increment, as it has been defined, is the right solution, and it is likely that the department will continue to add to the program's cost overruns and schedule delays that the program has already experienced to date. The strengths and weaknesses associated with each of the IT management controls that we evaluated are described here: