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The Navy relies on computer systems for virtually all of its operations, from strategic airlift and fleet mobilizations to such routine business functions as personnel and contract management. Failure to address the Year 2000 problem in time could severely degrade or disrupt the Navy's day-to-day and, more importantly, mission-critical operations. Although the Navy has tried to increase awareness, promote information sharing, and encourage its components to make Year 2000 remediation efforts a high priority, it is behind schedule in remediating systems. Moreover, the Navy lacks key management and oversight controls to enforce good management practices, direct resources, and establish a complete picture of its progress in remediating systems. The upshot is that the Navy lacks complete and reliable information on its systems and on the status and the cost of its remediation efforts. It has also increased the risk that (1) Year 2000 errors will be propagated from one organization's systems to another's; (2) all systems, interfaces, and equipment important to Navy operations will not be thoroughly and carefully tested; and (3) the Navy will be unprepared if systems are not corrected or replaced by the Year 2000 deadline.

AIMD-98-150 Defense Computers: Year 2000 Computer Problems Put Navy Operations at Risk