In short, DLA’s goal is “to do business as business does business.”
According to BSM program documents, DLA’s transformation from its current to its future role requires modernization of the IT systems that now support DLA’s materiel management business function, subfunctions, and processes. Thus, the first release will be deployed to all three Defense Supply Centers at once. DLA’s Approach to Developing an Architecture Is Not Enterprise Focused

BSM officials, including the BSM program manager and chief architect, have acknowledged that DLA does not have an enterprise architecture. To date, DLA has treated the entire BSM program as one investment decision, justified by a single economic analysis, because this approach was consistent with DOD policy for major system acquisitions that were in effect until January 2001. DLA Has Not Yet Made Investment Decisions Incrementally

Although DLA plans to acquire and implement its BSM system solution in four increments, it has not so far managed BSM investments incrementally. They also stated that they would follow this approach to investing in later releases. Appendix I: Objectives, Scope, and Methodology

Our objectives were to determine (1) whether DLA is using an enterprise architecture to guide and constrain its investment in its Business Systems Modernization (BSM) program and (2) whether DLA is investing in BSM in an incremental manner. 4. Notwithstanding DLA’s recent commitments to incrementally invest in BSM, DLA has so far treated BSM as a single investment decision. 28.
Why GAO Did This Study

The Defense Logistics Agency (DLA) plays a critical role in supporting America's military forces worldwide. DLA employs about 28,000 civilian and military workers at about 500 sites in all 50 states and 28 countries; in round numbers, it manages 4 million supply items and processes 30 million annual supply distribution actions. This report reviews DLA's efficiency and effectiveness in managing it is Business Systems Modernization (BSM) acquisition program. Specifically GAO determines (1) whether DLA is using an enterprise architecture to guide and constrain its investment in (BSM) and (2) whether DLA is investing in BSM in an incremental manner.

What GAO Found

GAO found that DLA does not have an enterprise architecture to guide its investment in BSM. DLA plans call for creating an architecture as a byproduct of BSM's implementation. In addition, GAO found that DLA has not been managing its investment in this program in an incremental manner; that is, DLA has not treated the first of its four planned incremental releases of BSM as a separate investment decision. Instead, DLA has thus far treated the entire BSM program as a single investment decision, according to BSM officials. DLA now plans to take an incremental approach to future releases. This change would ensure that DLA's investment decisions are consistent with statutory requirements and federal guidance.