Navy projects $133 million in business system reforms savings for 2022

The Navy claims it saved $4.2 billion through reform efforts for its fiscal 2022 budget request via business process and systems improvement and divestments.

mock-up of the shore-based Aegis Combat Information Center

Eliminating and updating legacy business systems and processes may have trimmed more than $133 million from the Navy’s $211.7 billion budget request for fiscal 2022.

According to budget documents, most of those savings, about $126.5 million, come from cancelling the technical refresh for fleet IT maintenance processes and tools for the Navy Maritime Maintenance Enterprise Solution.

Another $5.5 million was reportedly saved from shutting down legacy business systems as the Navy works to “streamline financial management systems and consolidate general ledger systems.”

Policy reforms, such as reducing Marine Corps aviation and ground support through cuts from modernizing training, systems and equipment, made up most of the reported reductions at $1.63 billion, alongside divestments at $1.26 billion. The latter included about $9.4 million in savings by divesting of a training system that “no longer meets training objectives” -- the Counter Radio-Controlled Improvised Explosive Device -- Electronic Warfare.

The Navy, which reported $4.2 billion in reforms savings for 2022, has been focusing on improving its business systems, particularly those in shipyards, to reduce duplication and make them more effective, efficient and reliable to increase cost savings.

Those savings may have helped give the Navy space to request $239 million more to spend on enterprise networks in 2022, for a total of $1.2 billion, compared to 2021 enacted levels, according to budget documents.

Thomas Harker, the acting Navy secretary, told lawmakers in April that many shipyards and depots were still using systems that rely on half-century-old coding languages.

"We've got to invest in updating those systems. We don't have an electronic time and attendance system ... we've got a lot of problems that we need to fix,” Harker testified.

"Modernization of our information technology infrastructure is a critical warfighting priority ... effective use and management of data is key to our digital transformation, and will change how we will fight and win at every level."