department of defense agency financial report fiscal year 2012

Department of Defense Agency Financial Report for FY 2012
4-2A. Information Technology (IT)
Acquisition System
A-18
IG Summary of Challenge
One of the focus areas of the DoD Chief Information Officer’s (CIO’s) 10-Point Plan for
IT Modernization is to strengthen IT investments. Section 804 of the NDAA for FY 2010
required the Secretary of Defense to develop and implement a new acquisition process
for information systems. The process was to be based on recommendations from the
March 2009 report of the Defense Science Board (DSB) Task Force on Department of
Defense Policies and Procedures for the Acquisition of Information Technology. This
report concluded that “the conventional DoD acquisition process is too long and too
cumbersome to fit the needs of the many systems that require continuous changes and
upgrades...” The DoD CIO’s 10-Point Plan will include structuring IT programs, via
smaller, frequent deliveries, implement an enterprise approach for the procurement of
common IT hardware and software, obtain transparency of IT investments with a full
DoD IT investment portfolio, and review major IT investments for performance, funding
execution, and enterprise alignment.
4-2B. IT Acquisition System IG Assessment of Progress
The Department has recognized that it needs to improve the outcomes of its
acquisitions, deliver faster capability, and save billions through cost efficiencies. On June
23, 2011, the USD(AT&L) issued a Directive-Type Memorandum on Acquisition Policy for
Defense Business Systems, which sets forth timeline requirements for automated
information systems. The memorandum states that when Major Automated Information
Systems employ the incremental acquisition approach, all functional capabilities must be
achievable within five years of when the funds are first obligated. Additionally, the
memorandum provides similar requirements for all other Automated Information
Systems. While this memorandum sets more ambitious timelines to acquire automated
information systems, the Department must continue to push forward with new IT
acquisition process in order to ensure success for its mission and the individual
warfighters.
4-2C. IT Acquisition System Department Response
The Department is committed to the implementation of IT Acquisition Reform and
continues to achieve key accomplishments in the overall timeliness and effectiveness of
the IT acquisition process. The USD(AT&L) issued acquisition policy in Directive Type
Memorandum (DTM) 11-009, “Acquisition Policy for Defense Business Systems,” dated
June 23, 2011, and change 1, dated December 9, 2011. This DTM requires the use of
the Business Capability Lifecycle (BCL) model as the acquisition process for Defense
Business Systems (DBS), assigns responsibilities, and provides procedures for meeting
BCL and DBS requirements. The BCL provides a tailored acquisition process with
alternative requirements development processes for Defense Business Systems, a major
step forward in implementing more flexible and streamlined processes.
The BCL is the overarching framework for the planning, design, acquisition, deployment,
operations, maintenance, and modernization of DBS, in accordance with Title 10 U.S.C.,
Section 2222(f). This policy will be incorporated in the next update to DoD
Instruction 5000.02, “Operation of the Defense Acquisition System.” Additionally, the
Department updated Business Case guidance in May 2012 to enhance business case
content. The DTM 11-009 defines a business case as:
Addendum A