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DOD Business Systems Modernization: Air Force Business System Schedule and Cost Estimates

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Congressional rept.

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DEAMS was initiated in August 2003 and is intended to provide the Air Force with the entire spectrum of financial management capabilities, including collections, commitments and obligations, cost accounting, general ledger, funds control, receipt and acceptance, accounts payable and disbursement, billing, and financial reporting for the general fund.11 In February 2012, the DOD Deputy Chief Management Officer granted Milestone B approval for DEAMS to enter the Engineering Development Phase of the acquisition life cycle, which is considered the official start of the program. DEAMS program functionality is intended to be implemented across the Air Force in a series of releases in two increments Increment 1 will include six releases and Increment 2 will include two releases.12 DOD has approved the funding for the Air Force to proceed with the acquisition of the functionality for the first increment of DEAMS. This funding is approximately 1.6 billion, with deployment scheduled to occur during the fourth quarter of fiscal year 2016. The Air Force reported that it had spent about 427.5 million as of September 30, 2013, on the program. As stated earlier, in October 2010, we reported that although the Air Force met best practices in developing a cost estimate, it did not meet best practices in developing the schedule estimate for implementing DEAMS.13 In particular, the Air Force had not developed a fully integrated master schedule that reflected all government and contractor activities. We recommended that the Air Force develop an integrated master schedule that fully incorporated best practices, such as capturing all activities, sequencing all activities, integrating activities horizontally and vertically,14 establishing the critical path for all activities, identifying float between activities,15 conducting a schedule risk analysis, and updating the schedule using logic and durations to determine dates.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis

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