Why is the Army capturing costs of Defense Business Systems (DBS)?
In the July 2016 Defense Business Systems (DBS) Senior Review Group (SRG) the Under Secretary of the Army (USA) and the Vice Chief of Staff of the Army (VCSA) directed the staff to establish three Lines of Effort oriented on optimizing the DBS portfolio.
The objective was to implement a standardized solution for capturing and reporting sustainment costs for the Defense Business Systems (DBS) to support the evaluation and determination of long-term affordability and sustainment funding needs. The goals being to drive cost down over the long-term and give more predictability in the Planning, Programming, Budgeting and Execution (PPBE) process.
In September 2018, the USA sent memos to the Domain Portfolio Managers for all six Business Mission Area domains and directed the DBS system owners from each domain to accomplish several tasks:
- Update and confirm data within the Army Portfolio Management Solution (APMS) system
- Integrate approved FY19 business initiatives into the Army Reform Initiative framework to allow commands to seek assistance from DASA-CE. The process ensures that relevant parties are engaged in the creation/update of CFs and that the resulting artifacts are stored in an accessible location
- Establish a plan to retire legacy DBS and assist retiring DBS owners with legacy system termination
- Coordinate recovery of each domain’s portion of the EE and SS PEG POM 20-24 decrement of $500M in FY23 and FY24
- Map Budget-to-Report end-to-end (E2E) process
- Complete the Enterprise Process Model for the Order-to-Cash (O2C) E2E process
- Create and maintain unique cost objects by DBS and capture actual costs against these objects within GFEBS, LMP, or CEFMS
- Complete migration of Financial and Asset Management Systems (FAMS) to Defense Information Systems Agency (DISA)
The USA instructed domain owners to identify retiring legacy system investments and recoup associated funding from respective PEGs in order to overcome FY23 and FY24 EE PEG decrement of $500M; drive costs down by retiring legacy DBS; and capture costs for remaining systems.
DASA-CE will publish instructions for DBS owners on how to create and maintain cost objects, and capture actual costs against these objects within GFEBS, CEFMS, and LMP.