Summary: The Pentagon relies on computers systems for some aspect of all of its operations, including strategic and tactical operations, sophisticated weaponry, intelligence, surveillance and security efforts, and routine business functions, such as financial management and personnel matters. Failure to deal with the Year 2000 problem in time could severely degrade or disrupt the Defense Department's (DOD) mission-critical operations. DOD has taken steps to increase awareness, promote information sharing, and encourage the military to make Year 2000 remediation efforts a high priority. Its progress in fixing systems, however, has been slow. In addition, DOD lacks key management and oversight controls to enforce good management practices, direct resources, and establish a complete picture of its progress in fixing systems. As a result, DOD lacks complete and reliable information on systems, interfaces, other equipment needing repair, and the cost of its correction efforts. It is spending limited resources fixing nonmission-critical systems even though most mission-critical systems have not been corrected. It has also increased the risk that (1) Year 2000 errors will be propagated from one organization's systems to another's, (2) all systems and interfaces will not be thoroughly and carefully tested, and (3) components will not be prepared should their systems miss the Year 2000 deadline or fail unexpectedly in operation.