ADP Modernization

GAO reviewed the Army's modernization program for its automated Standard Depot System (SDS), which manages logistics activities at supply and maintenance depots, to determine if it: (1) established a framework to manage and control the program; and (2) adequately disclosed SDS funding requirements in its budget.

GAO found that: (1) the Army estimated that, although SDS modernization would cost about $58.7 million, modernization would increase productivity and save about $101.1 million through 1995; (2) the Army established a framework for managing and controlling the program by defining modernization requirements, justifying its mission requirements, and establishing groups to increase user involvement and coordinate all new systems initiatives; (3) the Army's budget did not clearly distinguish resource requirements for SDS modernization from those for operation and maintenance of the existing system; and (4) since the Army estimated total SDS 14-year life cycle costs to be about $745 million, and only $58.7 million was for modernization, it misinformed Congress as to actual funding requirements for SDS modernization in its fiscal year 1988 through 1989 budget report. GAO also found that Army budget officials initiated actions to: (1) establish a budget reporting indicator specifically for the SDS modernization program; and (2) clarify and expand command operating budget instructions.