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Director, Operational Test & Evaluation
FY97 Annual Report

FY97 Annual Report


Up to 21 sites
Total program cost (TY$) $115M
Average unit cost (TY$) $5.5M
Life cycle cost (TY$) $179M
Full-rate production (IOC) 3QFY97

Prime Contractor
Electronic Data Systems


EDM is a comprehensive business process improvement initiative designed to facilitate the consolidation of DoD finance and accounting functions and both improve accuracy and reduce costs of financial operations. This is to be accomplished by: reducing paper volume in the business centers and improving work flow management through automated gathering and routing systems; improving and expediting information accessibility by providing electronic foldering, distribution, cataloging, and maintenance of large paper volume; deployment of high capacity magnetic, optical, and video storage media; introducing automated indexing and retrieval of source documents; and improving customer service through document sharing and on-line matching and viewing of documents and files with data systems.

Electronic Document Management is the aggregation of the three technologies of imaging, electronic foldering, and workflow. When coupled with ongoing efforts to institute standard electronic forms, faxes, and e-mail, all documents will be converted to electronic form in some manner. Imaging is the conversion of paper documents and faxes to electronic form via high speed electronic scanning devices. Electronic Foldering is the logical grouping of electronic documents into an organized structure that is readily available for retrieval. An example of an electronic folder is a payment folder that includes the contract, invoice, and receiving report. In this example, the contract can be a scanned image, the invoice can be received as a standard EDI transaction, and the receiving report can be a standard electronic form received from a base level activity via e-mail. Workflow is the automation of existing business rules and procedures that define how information or work travels through an organization.

EDM impacts JV2010 indirectly through improved efficiency, accountability and speed of financial transactions which reduces costs and provides greater asset visibility for the support of the focused logistics objectives.


The EDM program was instituted in order to support the DoD plan of consolidating more than 300 field offices into a small number of Operating Locations and Centers and overcome the serious limitations of the existing paper-based system. The speed and accuracy of conducting financial operations was increasingly inadequate to support DoD goals. DFAS received funding in 1994 and awarded a contract in September of that year. The program was placed on OSD oversight in January 1996.

The EDM acquisition strategy comprises three increments, each of which are justified, designed, developed, tested, and accepted individually. Each stands alone in terms of the business improvements and economics associated with the solution. The increments are: 1) the DFAS EDM core system and Vendor Pay applications; 2) Contract Pay for centrally managed contracts located at the DFAS Columbus Center; and 3) Payroll Services processing at the DFAS Cleveland Center. The core increment will form the technical architecture for future development of EDM solutions and allow deployment to Operating Locations. Contract Pay will expand the hardware/software specifications, the user base and add workflows to address the unique requirements of contract pay. Payroll Services will modify the system to address the unique workflow requirements in the legal review of garnishment actions and other payroll services.


Increment 1 IOT&E was conducted at the Omaha Operating Location from May 28, to June 5, 1997, in compliance with the TEMP approved by DOT&E on May 23, 1997.

Increment 2 completed systems integration testing and a user acceptance test for release 1 of the software in April, and is slated to complete the same test for release 2 by the end of December 1997.


EDM Increment 1 IOT&E was extremely successful. Milestone III approval for Increment 1 is pending. All five critical operational issues (Capability, Compatibility, Dependability, Usability, and Vulnerability) were met and all testable measures of performance were also met. A stress test and the Year 2000 compliance test will be conducted during the FOT&E currently scheduled for FY98.

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