Summary: Pursuant to a congressional request, GAO reviewed the cost and management of the Navy's Standard Automated Financial System (STAFS). GAO found that: (1) project cost estimates increased from $33 million to as high as $479 million; (2) the Navy delayed the system's implementation schedule by over 5 years from its original date of early 1986; (3) the Navy has not fully tested STAFS; (4) STAFS was not fully operational at any center or laboratory; and (5) STAFS has experienced user opposition. GAO also found that the Navy: (1) added extra capabilities to the system, making it more comprehensive than originally planned; (2) did not fully disclose either estimated project costs or life-cycle costs in its budget submissions to the Office of the Secretary of Defense (OSD) and Congress; and (3) did not adequately explore alternative systems. In addition, GAO found that: (1) OSD directed the Navy to convert its funding of the centers and laboratories from the Navy Industrial Fund to an alternative method without evidence to support this decision; and (2) the Navy would redesign STAFS in order to implement the OSD decision.
