[kictanet] Air Force scraps massive ERP project after racking up $1 billion in costs

[S.M. Muraya]

http://www.networkworld.com/news/2012/111412-air-force-scraps-massive-erp-264298.html

Air Force scraps massive ERP project after racking up $1 billion in costs
The Expeditionary Combat Support System 'has not yielded any significant
military capability'
By Chris Kanaracus, IDG News Service
November 15, 2012 09:25 AM ET

IDG News Service - The U.S. Air Force has decided to scrap a major ERP
(enterprise resource planning) software project after spending US$1
billion, concluding that finishing it would cost far too much more money
for too little gain.

Simple steps to keep your next ERP upgrade on time and on
budget<http://www.networkworld.com/news/tech/2012/073012-erp-upgrade-261278.html>

Dubbed the Expeditionary Combat Support System (ECSS), the project has
racked up $1.03 billion in costs since 2005, "and has not yielded any
significant military capability," an Air Force spokesman said in an emailed
statement Wednesday. "We estimate it would require an additional $1.1B for
about a quarter of the original scope to continue and fielding would not be
until 2020. The Air Force has concluded the ECSS program is no longer a
viable option for meeting the FY17 Financial Improvement and Audit
Readiness (FIAR) statutory requirement. Therefore, we are cancelling the
program and moving forward with other options in order to meet both
requirements."

The Air Force will instead need to use its "existing and modified logistics
systems for 2017 audit compliance," the statement adds.

Air Force officials restructured the program three times within the past
three years, and ultimately determined the military division "will be
better served by developing an entirely new strategy versus revamping the
ECSS system of record again," it states.



The system dates back to 2005, when Oracle won an $88.5 million software
contract, securing the deal over rival SAP and other vendors. It was
supposed to replace more than 200 legacy systems. CSC had served as a
systems integrator on the project, until its contract was
terminated<http://www.defensenews.com/article/20120515/DEFREG02/305150005/Comptroller-Blasts-USAF-8217-s-1B-System-Failure>
in
March, according to an Air Force spokesman. An Oracle spokeswoman declined
comment on Wednesday.

CSC "completed work on the ECSS contract in April," a spokeswoman said in a
statement. "The Air Force's recent ECSS program announcement has no impact
on CSC or its employees."

ECSS' demise had been
foreshadowed<http://www.computerworld.com/s/article/9224226/Massive_Air_Force_ERP_software_project_still_struggles>
for
some time, with Air Force officials publicly stating they were assessing
their options, and others openly bemoaning the project's failings.

Military officials' decision to stop the project now drew a stinging rebuke
from analyst Michael Krigsman, CEO of consulting firm Asuret and an expert
on IT project failures.

"This situation raises more questions than answers," Krigsman said. "Why
did it take the [Air Force] $1 billion and almost 10 years to realize this
project is a disaster? What kind of planning process accepts a billion
dollars of waste?"

Krigsman also questioned whether the Air Force will in fact have auditable
books by 2017. "How can they achieve such a goal when this program is
cancelled?" he said. Instead, it would be wise to revisit the topic in
2017, "at which time I suspect we will see another failure story
accompanied by many excuses," Krigsman added.

*Chris Kanaracus covers enterprise software and general technology breaking
news for* The IDG News Service*. Chris' email address is
Chris_Kanaracus at idg.com*

*The IDG News Service is a Network World affiliate.*
*
*
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