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GAO-04-149R 1 (2003-10-20)

handle is hein.gao/gaobaamiq0001 and id is 1 raw text is: I AGA ~G A 0 Aco untability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 October 20, 2003 The Honorable Donald H. Rumsfeld The Secretary of Defense Subject: Military Personnel: DFAS Has Not Met All Information Technology Requirements for Its New Pay System In early January 2003, we initiated a review of the Defense Integrated Military Human Resource System (DIMHRS) to get an understanding of the program, its goals, its present status, and the problems it is designed to resolve. During this review, we became aware that in April 2003 the Department of Defense (DOD) authorized the Defense Finance and Accounting Service (DFAS) to initiate a pilot project to demonstrate its ability to develop an interim military pay system, called Forward Compatible Military Pay, before DIMHRS is fully operational. DFAS maintains that an interim system should be developed as soon as possible for two reasons: (1) the planned personnel and pay system that DOD is currently developing as part of the larger DIMHRS' will be implemented later than its projected target date of December 2006 and (2) the current military pay system-the Defense Joint Military Pay System-is aging, unresponsive, and fragile and has become a major impediment to efficient and high quality customer service. It is estimated that the Forward Compatible Military Pay system could be operational by March 2006 at a design and development cost ranging from about $17 million to $30 million.2 DOD is currently developing the DIMHRS that is designed to provide DOD and the services one integrated, standardized personnel and pay system that will track service members and their dependents. 2 DFAS program officials estimate the cost at $16.8 million, but a Program Analysis and Evaluation estimate came in at $29.9 million because it included costs that had been left out of the program officials' estimate. GAO-04-149R Military Personnel Page 1

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