Logistics spending lacks enterprise underpinning, GAO says

Logistics spending lacks enterprise underpinning, GAO says

By Dawn S. Onley

GCN Staff


JULY 6—The Defense Logistics Agency is violating Defense Department policy by failing to have an enterprise architecture in place to guide its $900 million Business Systems Modernization, a General Accounting Office report found late last month.

Nor is DLA investing by increments in its large modernization acquisition program, GAO said in a June 29 report on the agency's business practices and effectiveness at meeting customer requirements.

'This nonagencywide approach to developing and implementing an enterprise architecture is not consistent with federal guidance, and it increases the risk that DLA will modernize in a way that optimizes an individual business area but does not optimize agencywide logistics management performance and accountability,' the report found.

But David Falvey, program manager for DLA's systems modernization, said his agency is following a proven approach.

'Our program approach, validated in industry over the past decade, reduces implementation time and allows the benefits of a new business architecture to be realized in the near-term,' Falvey said.

Typical software development projects set up an architecture prior to introducing new technology for the defined business processes, Falvey said. But enterprise resource planning experience in industry has shown that architecture and new technology can be introduced simultaneously, he said.

DLA employs about 28,000 civilian and military workers at about 500 sites in all 50 states and in 28 countries. The agency serves as DOD's logistics manager for consumable items and some repair items.

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