Cost savings

US Navy Saves $133M for FY2022 Through IT Reforms

Budget documents obtained by FCW show that the U.S. Navy was able to trim more than $133 million from its fiscal year 2022 budget request owing to information technology reforms.

About $126.5 million in savings were generated with the cancellation of a planned technical refresh for fleet IT maintenance processes and tools associated with the Navy Maritime Maintenance Enterprise Solution.

Divestiture of legacy business systems accounted for the remaining $5.5 million. The Navy scrapped the antiquated systems in a bid to streamline financial management systems and consolidate general ledger systems, FCW reported.

Acting Navy Secretary Thomas Harker has been vocal about the need to upgrade business systems to improve vessel maintenance at shipyards.

Speaking before members of the House Appropriations Subcommittee on Defense, Harker said some business systems at shipyards are still running on the half-century-old common business-oriented language.

Harker, a past Potomac Officers Club event speaker, told lawmakers that the Navy would achieve better performance and reduce costs through business systems improvements.

“Effective use and management of data is key to our digital transformation, and will change how we will fight and win at every level,” he added.

The Navy’s $211.7 billion budget request for FY2022 prioritizes investments in ship and aircraft maintenance over procurement and force structure. The new spending plan is higher by 1.8 percent compared to the budget enacted in fiscal year 2021.