Designated as the Corporate Information Management initiative for the functional area of energy management, FAS will support DoD fuels management with commercially available application software and take advantage of proven commercial business practices established in the petroleum industry.

The FAS program was initiated in FY96 to accommodate evolving requirements for the fuels mission of the Defense Logistics Agency. FAS will increase fuel accountability at the Defense Fuel Supply Points, integrate automatic tank gauging and automated leak detection capabilities, provide a mechanism for specialized customer support through tailored terminal interfaces, and promote real-time data processing.

Since the completion of the Base Level system in FY97, the FAS PMO has turned its attention to the Enterprise Level system. The Enterprise Level system comprises two increments. The Oracle Federal Financials will provide accounts payable, general ledger, and accounts receivable functions. Oracle Energy Downstream, a COTS package that Oracle acquired from British Petroleum, will handle fuels purchases. Together, the two increments will provide a complete solution for budgetary accounting.

During an In-Process Review in August 1997, the FAS PM declared a schedule breach because of late software product deliverables from Oracle. The PM re-baselined the program. Throughout FY98 and FY99, implementation of the Enterprise Level System was delayed because the vendor failed to incorporate all requirements for prompt payment and price escalation into the Government layer of the financial applications. During FY00 and FY01, the FAS PMO implemented changes in the FAS software, established information transfer capability between all FAS users, conducted FAS DT, and provided training to FAS users.

Joint Interoperability Test Command (JITC), the designated OTA, conducted the IOT&E of the FAS system (Base and Enterprise levels combined) in August/September 2001. The testing was conducted primarily in the Rocky Mountain/West Coast Region. During the IOT&E, FAS was operating in parallel with the legacy system, Defense Fuels Automated Management System (DFAMS). DFAMS was the system of record during the test.

The IOT&E results showed that FAS was operationally suitable but not operationally effective. This conclusion was based on the fact that Critical Operation Issue (COI) Mission Performance, and COI Interoperability were not satisfactorily met during the IOT&E. DOT&E directed that a follow-on OA be conducted to re-evaluate the deficient areas after they are rectified. JITC conducted the follow-on OA in December 2001. The OA results showed that most of the problems have been either fixed or improved upon, with the exception of the problems associated with system access and audit log capabilities. The workarounds implemented during the OA were meeting the users' needs and most users interviewed indicated they were satisfied with the progress made.

FAS is continuing to move towards critical programmatic decisions, including addressing the October 12, 2001 memorandum from the OSD Comptroller concerning the Defense Financial Management Modernization Program and the Milestone IIIB deployment.