Since 1995, GAO has designated the Department of Defense's (DOD) multibillion dollar business systems modernization program 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 Fiscal Year 2005 (the act) requires the department 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. The act also directs GAO to review each report. As agreed, GAO focused on the fiscal year 2010 report's compliance with, among other things, these provisions of the act. To do so, GAO compared DOD's report to the act's reporting requirements, interviewed DOD officials, analyzed relevant documentation, and leveraged prior GAO reports.
Recommendations for Executive Action
|Department of Defense||1. To facilitate congressional oversight and promote departmental accountability, the Secretary of Defense should direct the Deputy Secretary of Defense, as the chair of the Defense Business Systems Management Committee (DBSMC), to ensure that the scope and content of future DOD annual reports to Congress on compliance with section 332 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005, as amended, be expanded to include (1) cost, capability, and benefit performance measures for each business system modernization investment and actual performance against these measures; and (2) all certification actions, as defined in DOD guidance, which were taken in the previous year by the department on its business system modernization investments.|
|Department of Defense||2. To ensure that Investment Review Board (IRB) certification actions are better informed and justified, the Secretary should direct the Deputy Secretary to ensure that DOD guidance be revised to include provisions that require IRB certification submissions disclose program weaknesses raised by GAO and the status of actions to address our recommendations to correct the weaknesses.|