The implementations involved different Navy system commands and a number of systems integrators, including IBM, Electronic Data Systems Corp. and Deloitte & Touche LLP. The pilot projects were meant to help modernize the Navy's supply chain, acquisition and financial management operations, among others. For example, the Naval Air Systems Command and Naval Supply Systems Command wanted to optimize forecasting, repair scheduling and inventory management for aircraft (see "Navy Embarks on Supply-Chain Mission"). That program was retired after it served its educational purposes, while the others continue to have limited deployment, according to Hollande.

The three pilot systems still in use will ultimately be retired in favor of a single SAP implementation that will keep the best-of-breed functions developed from them. When live, the converged application will be operating in a single data center designed for easy upgrades and cost effectiveness, said Hollande. It will have 90,000 end users globally and extend to nearly every facet of Naval operations, supporting acquisition, production and management scheduling systems, as well as other processes. It will also replace 280 legacy mainframe and minicomputer-based applications, some of which are 20 years old.

Still, the GAO said the overarching ERP system won't provide an "all-inclusive end-to-end corporate solution for the Navy." The implementation doesn't include aviation and shipyard operations, and there are a variety of risks and challenges involved. For instance, the Navy must craft 44 separate software interfaces with other Navy and Defense Department systems, and it must convert legacy data for use in the new software, the GAO said.

As a result, the Navy must create metrics to assess project performance and risks, the GAO said. There must also be independent oversight to verify and validate system performance and provide the Navy with unbiased reports. Semi-annual reviews of the program should also be implemented, the GAO said.

Overall, the Navy agreed with those recommendations, said Hollande, since it has already completed its first validation with SAP in September. It's also in discussions with shipyard and aviation operations officials to ensure they are eventually included in the converged ERP rollout.