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GAO-07-1139R 1 (2007-07-25)

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        Accountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548


          July 25, 2007

          Congressional Committees

          Subject: Military Personnel: The Navy Has Not Provided Adequate Justification
          For Its Decision to Invest in MCTFS


          In June 2006, the Navy completed a feasibility assessment of both the Marine Corps
          Total Force System (MCTFS)-the Marine Corps' integrated personnel and payroll
          system-and the Defense Integrated Military Human Resources System DIMHRS.
          Based on the results of this assessment, the Navy expressed a preference to deploy
          MCTFS instead of DIMHRS. In August 2006, the Defense Business Systems
          Management Committee (DBSMC)' made a business decision to accept the Navy's
          plan to proceed with the development and implementation of MCTFS. However, the
          Department of Defense (DOD) had already committed to deploy DIMHRS to provide
          ajoint, integrated, standardized military personnel and pay system across all military
          components. According to the department, as of September 2006, it had spent over
          $668 million2 on the program.

          The John Warner National Defense Authorization Act for Fiscal Year 2007, Pub. L. No.
          109-364, §324 (2006) directed the Secretary of the Navy to prepare a report about
          MCTFS, including (1) an analysis of alternatives to MCTFS, including a comparison
          between the costs of deploying and operating MCTFS within the Navy and the cost of
          including the Navy in DIMHRS; (2) a business case analysis of the costs and benefits
          to both the Navy and DOD of the alternatives to MCTFS considered in the first
          objective; and (3) an analysis of the compatibility of MCTFS with the department's
          business enterprise architecture.3 The Navy concluded in its report-which we
          received on April 25, 2007-that (1) either MCTFS or DIMHRS could provide basic
          personnel and pay capability for the Navy uniformed force at approximately
          equivalent cost; (2) the DIMHRS alternative has substantially higher risks on cost,
          schedule, and function because MCTFS is already operational; and (3) MCTFS is fully
          compatible and compliant with the department's business enterprise architecture.


          1The Deputy Secretary of Defense established the DBSMC, which oversees DOD's business transformation, and
          tasked it with responsibility for overall departmental transformation pursuant to 10 U.S.C. § 186.
          2The cost figure includes costs incurred by the Enterprise Program Management Office-DIMHRS, the Army, the Air
          Force, the U. S. Marine Corps, and the Defense Finance and Accounting Office; it does not include costs incurred
          by the Navy since program inception.
          3An enterprise architecture provides a clear and comprehensive picture of an entity, whether it is an organization
          (e.g., a federal department) or a functional or mission area that cuts across more than one organization (e.g.,
          human resources). It is an essential tool for effectively and efficiently engineering business processes and for
          implementing and evolving systems that support the business processes.


GAO-07-1139R DOD System Modernization

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