Some of the Department’s accomplishments support the overall Business Mission Area or DON transformation goals:

• The DON began aggressively implementing cryptographic logon (CLO) for NMCI and non-public websites. CLO greatly increases security by changing access requirements from easily broken passwords to PKI certificates resident on the Common Access Card (CAC) and personal identification numbers (PIN). As of July 2006, 75% of the Navy’s shore-based users were converted to CLO, paving the way for use of PKI certificates on the CAC for digital signature and web-based self-service transactions.
• NMCI commenced rollout to the Marine Corps, with over 80% of ordered seats delivered as of July 2006.
• The DON established the Department of the Navy Business Transformation Council to supply overarching guidance and executive leadership to DON transformation activities. Among the first issues to be considered by the Council will be the OPNAV N6 proposal for legacy asset reduction in preparation for the Next Generation of NMCI.
• The Navy staff was realigned to optimize network investments by centralizing coordination of warfighting and warfighting support analysis/assessments, requirements development, resource programming, and capability development and integration under a three star flag officer to serve as Deputy CNO for Communication Networks (N6), matrixed for effectiveness with N2 for battlespace awareness and N3 for command and control and information operations. The N6 will serve additional duty as DON Deputy CIO (Navy).

Leveraging the DoD Enterprise Software Initiative (ESI)

The DoD ESI, co-chaired by the DON, is a joint project to reduce the cost of COTS information technology and implement an enterprise process for software management. This methodology continues to create opportunities for DON to leverage its buying power and reduce per unit software licensing and maintenance fees. Accomplishments include:

• Negotiation of an Enterprise Software Agreement for software tools in support of the Department’s LSS initiative. The agreement provides streamlined access to software tools needed by trained LSS Black Belts and Green Belts.
• The Navy-wide Oracle database enterprise license, obtained through the ESI-managed federal SmartBUY agreement continues to reduce Oracle product costs for the Navy. Under the license, all Navy members may use the Oracle database products, easing the move to web services.
• The ESI joint Enterprise Negotiation Team is leveraging the common software licensing needs of multiple transformational ERP programs, including Navy ERP.
• ESI participates as a member of the DoD Strategic Sourcing Directors Board, sharing successes and lessons learned with a cross section of DoD strategic sourcing initiatives.
• ESI has established Enterprise Software Agreements with six additional software publishers, continuing the positive trend toward consolidated software and software maintenance purchasing.

Other accomplishments primarily support Core Business Missions of the Business Mission Area:

Weapon System Lifecycle Management

• Navy merged its authoritative contract database, Navy-Air Force Interface (NAFI), with the DoD database, Electronic Document Access (EDA), eliminating $1.4M in annual NAFI sustainment costs and increasing information access for government, industry and the public.

Materiel Supply & Service Management

• Navy successfully demonstrated use of passive RFID ashore with the Bangor RFID Evaluation (BRE). BRE will be expanded to other high volume receivers of RFID-tagged material.

Financial Management

• Navy ERP restructured its program to release functionality in three phases, beginning with Echelon II/III Financials & Acquisition (Release 1.0), followed by Wholesale & Retail Supply (Release 1.1), and Intermediate Level Maintenance (Release 1.2) for both maritime and aviation maintenance.
• Navy ERP successfully completed Design Readiness Review, as well as Critical Design Review, for Release 1.0, Echelon II/III Financials & Acquisition.
• By implementing DoD’s web-based Wide Area Workflow (WAWF) application, the Navy saved $11M in the first eight months of FY06, through lower DFAS processing fees and reduced Prompt Payment interest charges. As the DON’s user base and transaction volume increase, so will WAWF-related savings. WAWF standardized business practices will aid the Department’s effort to achieve favorable audit opinions on its financial statements.
• The Marine Corps completed an interface between the Defense Property and Accountability System and the Standard Accounting Budgeting and Reporting System (SABRS), eliminating the need for data calls and human intervention to report Personal Property on Financial Statements.