Report on Defense Business Operations

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Congress requires a Report each year on the improvements to Defense’s business operations. Initially, the 2005 National Defense Authorization Act (NDAA) required the Report until 2009 but the 2009 NDAA extended the requirement until 2013. The Report requirements focus on delivery of defense business systems modernization efforts.

In 2008, Defense made substantial progress to standardize policies, procedures, data standards, and system interface requirements that are to apply uniformly throughout the Department of Defense. These standards are then applied to new and existing systems. The Business Enterprise Architecture (BEA) and the Component architectures contain these standards. The Enterprise Transition Plan implements the BEA and the Component architectures. The Congressional Report bridges the strategic priorities to improvements in business operations achieved.

The Report on Defense Business Operations showcases the measurable improvements to business operations achieved throughout 2008. Submitted to the Congressional Defense Committees since 2005, this year’s Report does not provide an update to the Enterprise Transition Plan as has been the practice. This Report captures improvements throughout the Defense Enterprise, in the Military Departments, Defense Agencies and Activities, and the Combatant Commands. In the Defense Enterprise, improvements include:

Personnel Security Reform

  Travel

    Acquisition Oversight Integration

      Sourcing

        Receipt and Acceptance

          Delivery of Property and Forces – both globally and in-theater

            Real Property Inventory

              Managerial Accounting

                Financial Reporting

The Component’s improvements to business operations support the attainment of Defense Enterprise priorities as well as unique operational requirements. For instance, U.S. Transportation Command, as the Department’s Distribution Portfolio Manager, established an infrastructure and architecture to improve, control, coordinate, and synchronize the joint deployment and distribution enterprise. The Army’s expansion of distance learning in lieu of remote, extended training sessions, allows soldiers to remain home with their families. The Defense Logistics Agency’s expanded role in industrial support highlights reduced cost and improved performance within the Defense supply chain. The Air Force created an organizational construct for the Chief Management Officer to serve as the Air Force Enterprise Process Champion, facilitate integration across the Air Force Strategic Plan, and bolster the alignment and effectiveness of the Air Force-wide processes in support of the priorities, goals, and objectives in the 2008 Air Force Strategic Plan. Each of the seven Components highlights their improvements in business operations. Other Components include Department of the Navy, Defense Finance and Accounting Service, and Military Health System.

The Report provides progress on other transformational initiatives such as Transformation for the Warfighter and the Department’s deployment of Lean Six Sigma.