A major  component of DOD’s business transformation effort is the Defense FIAR  Plan. Air Force Financial Management Strategic Plan for Fiscal Years  2007-2012. Air Force Military Equipment Accountability Improvement Plan. While these  programs are intended to provide the Air Force with the full spectrum of  logistics and financial management capabilities, our review identified  areas where the Air Force had not fully implemented key best practices  related to risk management for ECSS and DEAMS and system testing for  DEAMS. ECSS and DEAMS Are Intended to Help the Air Force Achieve Total Asset Visibility

ECSS and DEAMS are intended to support the Air Force’s efforts to  transform its business operations and provide accurate, reliable, and  timely information to support decision making and management of the Air  Force’s business operations, including total asset visibility. The ECSS  program was initiated in January 2004 and is expected to provide a single,  integrated logistics system, including transportation, supply, maintenance  and repair, and other key business functions directly related to logistics,  such as engineering and acquisition, at a total life-cycle cost over               $3 billion. When fully implemented, ECSS is  expected to replace about 250 legacy logistics and procurement  (acquisition) systems and support over 250,000 users Air Force-wide. According to Air Force officials, DEAMS will replace seven legacy  accounting systems. By the  end of the increment 1 deployment phase, which is expected to be  completed by December 2010, DEAMS is intended to provide Scott Air  Force Base with the entire spectrum of core financial management  capabilities, including collections, commitments/obligations, cost  accounting, general ledger, funds control, receipt and acceptance,  accounts payable and disbursement, billing, and financial reporting. These findings increase the risk  that these two business systems will not meet their stated functionality,  cost, and milestone goals or effectively further the Air Force’s efforts to  achieve total asset visibility. However, the relationship between the Air Force Military  Equipment Accountability Improvement Plan to other Air Force  transformation plans or initiatives, such as the Air Force Logistics  Enterprise Architecture Concept of Operations, in transforming the Air  Force’s business operations is not articulated in the plan. While these are notable goals, these metrics do not provide a means to  measure incremental progress in improving the Air Force’s ability to locate  and account for materiel assets throughout their life cycle. Conclusion

The Air Force’s efforts to transform its logistics and financial management  operations through system, process, and control changes are being guided  by numerous strategies and plans that are not fully integrated within the  Air Force and with DOD’s business enterprise transformation priorities. Appendix I: Scope and Methodology

In order to determine the implementation status of the Air Force’s current  business system initiatives to achieve total asset visibility, and whether the  Air Force has implemented related best practices, we reviewed Air Force  business system budget documentation and met with Air Force Chief  Information Officer personnel and DOD Business Transformation officials. To determine whether the Air Force’s business transformation efforts to  achieve total asset visibility are aligned within the Air Force and with  DOD’s broader business transformation priorities, we interviewed officials  from the Air Force’s Financial Management and Comptroller Office and  the Air Force Logistics Enterprise Architecture and ECSS Transformation  Management Division.
Why GAO Did This Study

The Department of Defense (DOD) established a goal to achieve total asset visibility over 30 years ago. This initiative aims to provide timely, accurate information on the location, movement, status, and identity of equipment and supplies. To date, the effort has been unsuccessful. GAO was requested to determine (1) the implementation status of the Air Force's business system initiatives to achieve total asset visibility, and whether the Air Force has implemented related best practices, and (2) whether the Air Force's business transformation efforts to achieve total asset visibility are aligned within the Air Force and with DOD's broader business transformation priorities. GAO interviewed Air Force officials and reviewed Air Force documentation to obtain an understanding of the Air Force's system initiatives and strategy for achieving total asset visibility and to identify areas for improvement.

What GAO Found

The Air Force has identified the Expeditionary Combat Support System (ECSS) and the Defense Enterprise Accounting and Management System (DEAMS) as key technology enablers of the Air Force's efforts to transform its logistics and financial management operations and achieve total asset visibility--a key DOD priority. ECSS is expected to provide a single, integrated logistics system, including transportation, supply, maintenance and repair, and other key business functions directly related to logistics such as engineering and acquisition. Additionally, ECSS will perform financial management and accounting for the Air Force working capital fund operations. ECSS is expected to be fully operational in fiscal year 2013, and replace about 250 legacy logistics and procurement systems. DEAMS is expected to provide the entire spectrum of core financial management capabilities, including collections, commitments/obligations, cost accounting, general ledger, funds control, receipts and acceptance, accounts payable and disbursement, billing, and financial reporting for the Air Force general fund operations. DEAMS is expected to replace seven legacy systems and be fully operational in fiscal year 2014. GAO identified several areas in which the Air Force had not fully implemented best practices related to risk management and system testing. These findings increase the risk that these business system initiatives will not meet their stated functionality, cost, and milestone goals, thereby limiting the Air Force's efforts to achieve total asset visibility and other DOD business transformation priorities. Further, key Air Force business transformation strategic plans and documents were not aligned within the Air Force nor with DOD's broader business transformation priorities. While each individual Air Force plan was intended to support the Air Force's business transformation efforts, the plans did not reflect a coordinated effort toward achieving a stated Air Force or DOD goal. For example, neither the Air Force's Military Equipment Accountability Improvement Plan for supporting DOD's military equipment valuation effort, nor the Air Force Logistics Enterprise Architecture Concept of Operations, its key strategic transformation plan for logistics, identified a shared relationship, including metrics, in supporting Air Force and DOD logistics and financial management transformation goals. As a result, neither the Air Force nor DOD will have the performance data needed to oversee efforts intended to improve the Air Force's ability to locate, manage, and account for assets throughout their life cycle.