Management System to serve as its primary system worldwide for performing coreaccounting and management functions. However, due to numerous software defectsand design issues, after just a year the Agency had to suspend overseas operations of the system and limit the financial transaction processing to its Washington, D.C. offices.In 1998, the agency decided to replace the New Management System with commercialoff-the-shelf software, despite an investment of over $100 million in the NewManagement System.
More recently, the Defense Integrated Military Human Resources System (DIMHRS) wascanceled in February 2010 after 10 years of development and approximately $850million spent
despite originally being planned for deployment in 2007, at a cost of $427 million.
As Secretary of Defense Robert Gates put it "years of effort, poorperformance, and difficulties" with DIMHRS have amounted to "an unpronounceableacronym."
Sometimes, the same project has been canceled twice. In July 2010, the Department of Veterans Affairs (VA) canceled its financial management system modernization project,the Financial and Logistics Integrated Technology Enterprise (FLITE) initiative, which wasVAs second attempt to replace its core financial management solution. VA hadcanceled FLITEs predecessor (Core FLS) in 2004 after spending approximately $249million since 1998.
Numerous laws, regulations, and policies have been established to improve the way theFederal Government manages its information technology investments. Unfortunately,we continue to see major IT projects fail due to a lack of execution.
Government At The Brink, Volume I: Urgent Federal Government Management Problems Facing the Bush Administration,June 2001,http://hsgac.senate.gov/vol1.pdf
Advance Policy Questions for Testimony of Elizabeth A. McGrath to be Deputy Chief Management Officer of the Department of Defense, March 2010,http://armed-services.senate.gov/statemnt/2010/03%20March/McGrath%2003-23-10.pdf
U.S. Government Accountability Office, GAO-04-149R: Military Personnel: DFAS Has Not Met All InformationTechnology Requirements for Its New Pay System. October 2003, http://www.gao.gov/new.items/d04149r.pdf.
DefenseNews, Pentagon Dodges Budget Bullet, February 2010,http://www.defensenews.com/story.php?i=4490383
Department of Veterans Affairs Office of Inspector General, Issues at VA Medical Center Bay Pines, Florida andProcurement and Deployment of the Core Financial and Logistics System (CoreFLS), August 2004,http://www4.va.gov/oig/52/reports/2004/VAOIG-04-01371-177.pdf