Summary

This report evaluates the capability of the Defense Finance and Accounting Service Financial Systems Activity in Indianapolis to develop and maintain software for its information system. Specifically, GAO examines software development processes used at Indianapolis. The four projects GAO reviewed were selected by the director of the Financial Systems Activity as those best representing its software development processes and practices.

GAO noted that: (1) although FSA-Indianapolis does not yet satisfy the criteria for a level 2 (i.e., repeatable) software development capability on any of the four projects GAO reviewed, the two projects under its software process improvement (SPI) program showed strengths and improvement activities in many of the key process areas; (2) for example, projects under the SPI program generally kept software-related work products consistent with requirements; (3) in contrast, projects not under SPI had few such identifiable strengths or improvement activities; (4) while SPI is making progress in ensuring that its projects implement defined and documented processes, many of its processes were not yet institutionalized; (5) for example, many policies were still in draft form or were in the planning phase, and therefore were not yet an ongoing way of doing business; (6) in addition, software quality assurance activities, such as audits, were not used to ensure that defined software processes and standards were being followed; (7) such deficiencies pose unnecessary risks to the success of the software project until they are addressed; (8) by more rigorously implementing its project management processes among its SPI projects, FSA-Indianapolis could accelerate progress toward reaching the level 2 capability; and (9) this would enhance its ability to repeat individual project successes within similar application areas.