Navy Supply Systems

Pursuant to a congressional request, GAO evaluated the Navy's Stock Point Logistic Integrated Communications Environment (SPLICE) project and Stock Point Automatic Data Processing Replacement (SPAR) project, providing information on: (1) the planning process for each project; (2) each project's progression through the various phases of the automated information system life-cycle management process; and (3) the status of each project's current cost and schedule as compared against original cost and schedule projections.

GAO reported that the Naval Data Automation Command identified many instances in which SPLICE and SPAR did not comply with Department of Defense's life-cycle management policies. GAO noted that Navy project officials approved the projects' advancement through life-cycle management development phases while noting shortcomings to be corrected during later phases. GAO also found that the plans for the two systems have changed since the creation of initial development plans for them, resulting in cost growth and schedule extensions. The estimated cost for the SPLICE project increased from $83.5 million in January 1980 to $256.6 million in September 1985 because of requirements changes and the addition of new sites. Similar changes in the SPAR project have contributed to an estimated cost of $2.3 billion as of October 1985, more than double the March 1983 estimate of $945 million.