Defense Transportation:

Migration Systems Selected Without Adequate Analysis

AIMD-96-81: Published: Aug 29, 1996. Publicly Released: Aug 29, 1996.

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Pursuant to a congressional request, GAO reviewed the Department of Defenses' (DOD) transportation migration systems.

GAO found that DOD: (1) has little assurance that its transportation migration systems are cost-effective; (2) selected its transportation migration systems without fully evaluating government or commercial alternatives; (3) relied on incomplete and unverified cost data in making its selections; (4) selected migration systems that will lose money if implemented; (5) did not consider developing new systems or contracting for services; (6) made some of its selection decisions based on the judgement of transportation experts; (7) reviewed commercial off-the-shelf transportation software products while making migration system selections; (8) did not analyze the extent to which unmodified software could meet its requirements, identify software modification costs, or provide a hands-on view of the software in operation; (9) did not assess how changes to its transportation operations would affect the migration systems; and (10) did not ensure that the new migration system would yield savings.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: As recommended, Defense established cost and schedule baselines and functional economic analyses on the seven migration systems. These analyses were completed by the second quarter of FY 1998.

    Recommendation: The Secretary of Defense should direct the Deputy Under Secretary of Defense for Logistics to ensure that positive investment returns are achieved before reengineered or outsourced processes are implemented, immediately establish current cost, benefit, investment return, and schedule baselines for the seven migration systems.

    Agency Affected: Department of Defense

  2. Status: Closed - Not Implemented

    Comments: According to Defense, there have been no transportation migration systems identified which were terminated as poor investments.

    Recommendation: The Secretary of Defense should direct the Deputy Under Secretary of Defense for Logistics to terminate the migration of transportation systems for which migration is shown to be a poor investment.

    Agency Affected: Department of Defense


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