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Air Force ADP: Systems Funded Without Adequate Cost/Benefit Analyses

IMTEC-90-6 Published: Dec 28, 1989. Publicly Released: Jan 30, 1990.
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Highlights

Pursuant to a congressional request, GAO reviewed the Air Force Logistics Command's (AFLC) development of four management information systems, focusing on: (1) whether initial project planning weaknesses identified in other system development projects occurred in these projects; and (2) the cost-benefit analyses AFLC prepared in justifying and planning the projects.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To help ensure that cost-benefit analyses for all Air Force system projects identify the most cost-effective approach, the Secretary of Defense should strengthen controls so that future analyses include: (1) an economic evaluation of all feasible alternatives; (2) only projected benefits that are fully supported and verified by an independent source, such as the Air Force Audit Agency; and (3) all data conversion costs.
Closed – Implemented
On March 7, 1990, the Department of Defense (DOD) revised Instruction 7920.2 to strengthen its policy on cost/benefit analyses.
Department of Defense To ensure that current management has sufficient information on which to make a decision on the AFTOMS project, the Secretary of Defense should not allow that system to proceed into development until AFLC performs a complete and comprehensive cost-benefit analysis. This analysis should include an evaluation of all feasible alternatives and, for each, all direct and indirect costs including all data-loading costs and all supported benefits. The Department of Defense's (DOD) Major Automated Information Systems Review Council should ensure the adequacy of this analysis before approving the system for development.
Closed – Implemented
AFTOMS was renamed JUSTIS; however, that project was cancelled in favor of a related Army project. This action was the result of DOD efforts to strengthen its CALS initiative and was not directly related to this recommendation. Accomplishment will be prepared for the IMTEC CALS report, rather than for this report.
Department of the Air Force To determine if continued development is justified, the Secretary of the Air Force should reevaluate the cost-effectiveness of AFEMS and REMIS by updating the cost-benefit analyses. The Secretary should ensure the adequacy of these analyses before allowing the projects to proceed.
Closed – Implemented
The Air Force reaffirmed cost/benefit prior to its October 1990 oversight review before the Major Automated Information System Review Council (MAISRC).
Department of the Air Force In light of the additional data-loading costs for ATOS, the Secretary of the Air Force should reevaluate this system to determine if the projected benefits justify the additional costs.
Closed – Not Implemented
The Air Force ATOS project has been put on hold as a result of the Department of Defense's Computer-Aided Acquisition Logistics Support (CALS) initiative. ATOS requirements will be added to the Defense-wide CALS initiative, so the recommendation is no longer applicable.

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Topics

IT acquisitionsAir Force procurementAircraft maintenanceCost effectiveness analysisDefense cost controlInformation systemsInternal controlsLogisticsManagement information systemsSystems conversions