DOD Systems Modernization: Uncertain Joint Use and Marginal Expected Value of Military Asset Deployment System Warrant Reassessment of Planned Investment

GAO-06-171 Published: Dec 15, 2005. Publicly Released: Dec 15, 2005.
Jump To:
Skip to Highlights
Highlights

Because of the importance of the Department of Defense's (DOD) adherence to disciplined information technology (IT) acquisition processes in successfully modernizing its business systems, GAO was asked to determine whether the Transportation Coordinators' Automated Information for Movements System II (TC-AIMS II) program is being managed according to important aspects of DOD's acquisition policies and guidance, as well as other relevant acquisition management best practices. TC-AIMS II was initiated in 1995 as a joint services system to help manage force and equipment movements within the United States and abroad. The U.S. Department of the Army has the lead responsibility for managing the system's acquisition and estimates its life-cycle cost to be $1.7 billion over 25 years.

Skip to Recommendations

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should direct the Secretary of the Army to determine if continued investment in TC-AIMS II as planned represents a prudent use of the department's limited resources. To accomplish this, the Secretary of the Army should collaborate with the Office of the Assistant Secretary of Defense for Networks and Information Integration/Chief Information Officer, the Office of Program Analysis and Evaluation, and the Army Cost Analysis Division to prepare a reliable economic analysis.
Closed – Implemented
According to a December 15, 2006, memorandum from the Office of the Assistant Secretary of Defense for Networks and Information Integration (OASD/NII), the U.S. Transportation Command conducted an analysis of TC-AIMS II and decided to cancel investment in the system after it had completed the increment currently under development at the time (Block 3). This decision was documented in an acquisition decision memorandum, dated July 5, 2006. The memo also states that if future needs required the development of the additional increments, a full cost analysis would be completed by the Army (since the Army Acquisition Executive was designated as the milestone decision authority) in accordance with this recommendation.
Department of Defense The Secretary of Defense should direct the Secretary of the Army to determine if continued investment in TC-AIMS II as planned represents a prudent use of the department's limited resources. To accomplish this, the Secretary of the Army should ensure that development of this economic analysis (1) complies with cost-estimating best practices and relevant Office of Management and Budget cost benefit guidance, (2) incorporates available data on whether deployed TC-AIMS II capabilities are actually producing benefits, and (3) addresses that the Air Force and Marines are not planning to use the system.
Closed – Implemented
According to a December 15, 2006, memorandum from the Office of the Assistant Secretary of Defense for Networks and Information Integration (OASD/NII), the U.S. Transportation Command conducted an analysis of TC-AIMS II and decided to cancel investment in the system after it had completed the increment currently under development at the time (Block 3). This decision was documented in an acquisition decision memorandum, dated July 5, 2006. The memo also states that if future needs required the development of the additional increments, a full cost analysis would be completed by the Army (since the Army Acquisition Executive was designated as the milestone decision authority) in accordance with this recommendation.
Department of Defense The Secretary of Defense should direct the Secretary of the Army to determine if continued investment in TC-AIMS II as planned represents a prudent use of the department's limited resources. To accomplish this, the Secretary of the Army should collaborate with the Undersecretary of Defense for Acquisition, Technology, and Logistics and the Under Secretary of Defense (Comptroller) to ensure that TC-AIMS II is adequately aligned with the evolving DOD business enterprise architecture.
Closed – Implemented
According to a December 15, 2006, memorandum from the Office of the Assistant Secretary of Defense for Networks and Information Integration (OASD/NII), the U.S. Transportation Command (USTRANSCOM) conducted an analysis of TC-AIMS II and decided to cancel investment in the system after it had completed the increment currently under development at the time (Block 3). This decision was documented in an acquisition decision memorandum, dated July 5, 2006. The memo also stated that USTRANSCOM evaluated alignment of its investments with the architecture and determined that TC-AIMS IT was duplicative of planned capability to be provided through another program (federated WEB Services). The memo further noted that the USTRANSCOM commander briefed this federated approach and received approval from the Defense Business Systems Modernization Committee, which is chaired by the Deputy Secretary of Defense in May 2006, and is responsible for, among other things, approving business systems alignment with DOD's business enterprise architecture.
Department of Defense The Secretary of Defense should direct the Secretary of the Army to present the results of these analyses to the Deputy Secretary of Defense, or his designee, and seek a departmental decision on how best to proceed with the program. Until this is done, the Secretary of Defense should direct the Secretary of the Army to limit future investment in already deployed applications to essential operation and maintenance activities and only developmental activities deemed essential to national security needs.
Closed – Implemented
Consistent with our recommendation, DOD evaluated the investment in July 2006 as part of a major milestone review and decided to cancel investment in the last two phases (referred to as blocks by DOD), stating that this capability would be satisfied by alternate solutions.
Department of Defense If--on the basis of reliable data--a decision is made to further develop TC-AIMS II, the Secretary of Defense should direct the Secretary of the Army to ensure that the program implements effective program management activities related to risk management and performance-based contracting.
Closed – Implemented
According to a December 15, 2006, memorandum from the Office of the Assistant Secretary of Defense for Networks and Information Integration (OASD/NII), the U.S. Transportation Command conducted an assessment of TC-AIMS II and decided to cancel investment in the system after it had completed the increment currently under development at the time (Block 3). This decision was documented in an acquisition decision memorandum, dated July 5, 2006. Among other things, the OASD/NII memorandum stated that DOD withheld part of the contractor's performance-based fee and replaced program leadership as part of efforts to address program risks and otherwise comply with our recommendations.

Full Report