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DOD's enterprise resource planning (ERP) system implementation efforts : hearing before the Panel on Defense Financial Management and Auditability Reform of the Committee on Armed Services, House of Representatives, One Hundred Twelfth Congress, first session, hearing held October 27, 2011.
The Department of Defense (DOD) has long been challenged in effectively implementing key acquisition management controls on its thousands of business system investments. For this and other reasons, GAO has designated DOD's business systems modernization efforts as high-risk since 1995. One major business system investment is the Navy's Enterprise Resource Planning (ERP) system. Initiated in 2003, it is to standardize the Navy's business processes, such as acquisition and financial management. It is being delivered in increments, the first of which is to cost about $2.4 billion over its 20-year useful life and be fully deployed by fiscal year 2013. To date, the program has experienced about $570 million in cost overruns and a 2-year schedule delay. GAO was asked to determine whether (1) system testing is being effectively managed, (2) system changes are being effectively controlled, and (3) independent verification and validation (IV&V) activities are being effectively managed. To do this, GAO analyzed relevant program documentation, traced random samples of test defects and change requests, and interviewed cognizant officials.
This is a print on demand edition of a hard to find publication. As one of the largest and most complex organizations in the world, the DoD faces many challenges in resolving its pervasive and long-standing financial mgmt. and related business operations and systems problems. DoD is required by various statutes to: (1) improve its financial mgmt. processes, controls, and systems to ensure that complete, reliable, consistent, and timely info. is prepared and responsive to the financial info. needs of agency mgmt. and oversight bodies; and (2) produce audited financial statements. This statement provides a perspective on DoD's current efforts to address its financial mgmt. weaknesses and achieve auditability, including the status of its Enterprise Resource Planning system implementations. Charts and tables.