OUSD(C) IT Development Initiatives

The OUSD(C) IT Development Initiative is a program element within the Department of Defense (DoD) budget, managed by the Office of the Under Secretary of Defense (Comptroller) (OUSD(C)). The primary goal of this initiative is to modernize and enhance the Department's financial management and resource allocation processes through the development and deployment of advanced information technology systems. This initiative is critical for supporting the DoD's evolving strategic, operational, and tactical objectives. It ensures that budgeting and accountability mechanisms keep pace with the increasing complexity of defense operations and requirements.

At the core of the OUSD(C) IT Development Initiative is the Next Generation Resource Management System (NGRMS). NGRMS is designed to replace multiple legacy systems currently used by OUSD(C) and the Office of the Director, Cost Assessment and Program Evaluation (CAPE) for budget formulation, justification, execution, and reporting. The objective is to create a unified, state-of-the-art system that streamlines the Planning, Programming, Budget, and Execution (PPBE) process. It aims to eliminate redundant data management and reduce the manpower required to reconcile disparate information sources.

NGRMS aims to provide several key capabilities, including automated exchange and reconciliation of budget data, improved efficiency through a unified budgetary model, and the ability to generate management review data instantaneously. The system is intended to be adaptable to emerging business practices and to support agile development methods, allowing for rapid initiation and termination of new development efforts. This flexibility is essential for organizational responsiveness and for enabling alternative resource allocation to support innovation adoption within the DoD.

A significant justification for NGRMS is its role in supporting Title 10 and Title 31 mission and reporting requirements. By providing a single, integrated data source for both OUSD(C) and CAPE, the system enhances the Department's ability to formulate and defend its budget requests. These requests are essential for national defense priorities such as deterring strategic threats and building a resilient Joint Force. The system also supports ongoing reforms to the PPBE process, ensuring that DoD financial management remains effective, efficient, and adaptable in the face of changing defense challenges.

NGRMS has achieved Initial Operational Capability (IOC) across all DoD Services and agencies as of the third quarter of FY 2022. Planned development for FY 2025 and FY 2026 includes further enhancements in cybersecurity, data standardization, cloud infrastructure (notably through the STRATUS platform), and more robust analytical ties to budget execution. Additional objectives for FY 2026 include reforming budget exhibits, integrating programmatic exhibit collection, and developing NGRMS as a Service, which will further modernize and streamline the Department's budgetary processes.

The program's acquisition strategy is based on agile development principles, allowing for iterative improvements and rapid response to evolving requirements. The current development effort is contracted to KPMG, with a performance period from June 2023 to June 2026. This approach is intended to ensure that the system remains at the forefront of technology and business process innovation, while also complying with federal acquisition regulations and Clinger-Cohen Act requirements.