The Department of Defense (DOD) invests billions of dollars annually to modernize its business systems, which have been on GAO's high-risk list since 1995. DOD is in the process of implementing nine enterprise resource planning (ERP) efforts which perform business-related tasks such as general ledger accounting and supply chain management. These efforts are essential to transforming DOD's business operations. GAO was asked to (1) provide the status of the ERPs as of December 31, 2009; (2) determine whether selected ERPs followed schedule and cost best practices; and (3) determine if DOD has defined the performance measures to assess whether the ERPs will meet their intended business capabilities. To accomplish these objectives, GAO reviewed data on the status of each ERP from the program management officers and interviewed the DOD and military departments' chief management officers.

DOD Business Transformation: Improved Management Oversight of Business System Modernization Efforts Needed

Since 1995, the Dept. of Defense's (DoD) multibillion dollar business systems modernization program has been designated as high risk, and it continues to do so today. To assist in addressing DoD's modernization challenges, the Ronald W. Reagan National Defense Authorization Act for FY 2005 requires the DoD to, among other things, report specific information about business system investments, including: (1) milestones and actual performance against specified measures and any revisions; and (2) actions taken to certify that a modernization investment involving more than $1 million meets defined conditions before obligating funds. This report focused on the FY 2010 report's compliance with, these provisions of the act. Illus. This is a print-on-demand publication; it is not an original.

The Dept. of Defense¿s (DoD) business systems modernization program is designated as ¿high risk¿. To assist in addressing this high-risk area, the Reagan Nat. Defense Authorization Act for FY 2005 contains provisions that are consistent with prior investment mgmt. and enterprise architecture-related recommendations, and requires the dept. to submit annual reports to its congressional committees on its compliance with these provisions. The act also directs a review each annual report. This report assessed the actions taken by DoD to comply with requirements of the act. The report reviewed the latest version of DoD¿s business enterprise architecture and the associated transition plan and architecture federation strategy. Illustrations.