# OUSD(C) IT Development Initiative — Program Element 0605027D8Z

**Program element:** 0605027D8Z  
**Component:** Defense-Wide  
**Appropriation:** 0400 — RDT&E, Defense-Wide  
**Budget Activity:** 5 — System Development & Demonstration  
**Vintage:** President's Budget PB2027  
**Canonical URL:** https://hitchintel.com/programs/0605027D8Z

## Summary

Defense-Wide funding ramps 2738% to a $273.3M request in FY2027, sustained across the five-year plan. In the FY2027 defense authorization, the House cut 1.8% (to $268.3M); the Senate cut 18% (to $223.3M); House appropriators funded it in full. OUSW(C), DLA, DISA leads the industry work.

## Funding profile

| Fiscal Year | Estimate Type | Amount ($M) |
|---|---|---|
| FY2025 | Actual | 7.3 |
| FY2026 | Enacted | 9.6 |
| FY2027 | Request | 273.3 |
| FY2028 | Outyear | 273.7 |
| FY2029 | Outyear | 274.3 |
| FY2030 | Outyear | 274.7 |
| FY2031 | Outyear | 275.2 |

> Estimate types are not summed — the profile mixes actuals, enacted law, the request, and outyear projections.

## Congressional marks (FY2027)

| Stage | Marked ($M) | Change ($M) |
|---|---|---|
| Request | 273.3 | — |
| House NDAA (HASC) | 268.3 | −5.0 |
| Senate NDAA (SASC) | 223.3 | −50.0 |
| House Approps (HAC-D) | 273.3 | +0.0 |

> FY2027 NDAA authorization marks, as of 2026-07-27. Not appropriations or final law.

## Projects (2)

| Project | Title | FY2025 actual | FY2026 enacted | FY2027 request | Move |
|---|---|---|---|---|---|
| 931 | Artificial Intelligence, Automation, and Financial Systems | 0.0 | 0.0 | 250.0 | new start |
| 927 | Next Generation Resource Management System | 7.3 | 9.6 | 23.3 | +142% |

> Projects are the summable leaves: the program element total is their sum, never added to it.

### Project 931 — Artificial Intelligence, Automation, and Financial Systems

Artificial Intelligence, Automation, and Financial Systems: This request seeks additional funding to implement, sustain, and fully realize benefits from previous investments for automation, artificial intelligence (AI), and financial systems for FY 2027 and beyond. These technologies will automate internal controls to sustain the opinion and reduce the annual cost of audit sustainment. This effort supports the Department’s goal of using these technologies to achieve an unmodified audit opinion as directed in the Secretary of War's memo "Achieving a 2028 Unmodified Financial Statement Audit Opinion" dated June 16, 2025. A portion of this funding will be used to execute this directive. The RDT&E request supports new enhanced digital infrastructure and software licenses necessary for AI solution development and prototyping. RDT&E will also be used to modernize existing systems, develop new capabilities, and evaluate whether legacy systems should be retired. This includes technology innovations, developing system upgrades, testing, and transition planning to retire outdated platforms that support DoW’s auditability goals. This includes interoperability improvements to ensure older systems can communicate with new platforms. With the focus on enterprise / Enterprise Resource Planning (ERP)-centric solutions, the procurement and implementation of additional system capabilities will be required. As part of the Department’s focus to reform Advana to accelerate AI and enhance auditability, the OUSW(C) is establishing Advana for Financial management, from the War Data Platform, to support its financial operations and audit. The request supports the development of new AI and automation capabilities in support of the audit. To accelerate the modernization of DoW’s financial management system environment, the FY 2027 request capitalizes on the initiatives that the Department began. The request will accelerate the consolidation of the DoW's financial operations into a highly centralized, ERP-centric model, enforcing new data standards that generate savings. Concurrently, the OUSW(C) will use AI and Robotic Process Automation (RPA) bots to automate high-volume, error-prone manual tasks, such as, validating journal entries, reconciling account balances, and retrieving evidential matter. This will lead to directly improving data accuracy and audit readiness.

**Named R-3 performers** (share of this project's FY2027 R-3 total, so they need not reach 100%)**:** OUSW(C), DLA, DISA (250.0, 100%).

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| Artificial Intelligence, Automation, and Financial Systems | 0.0 | 0.0 | 250.0 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

### Project 927 — Next Generation Resource Management System

The Office of the Under Secretary of War (Comptroller) (OUSW(C)) is responsible for advising the Secretary of War on all Defense budgetary and fiscal matters, for Defense budget development and execution, and for overseeing financial management across the Department. The OUSW(C) has a broad set of responsibilities in supporting the Planning, Programming, Budget and Execution (PPBE) process. The Office of the Director, Cost Assessment and Program Evaluation (CAPE), provides independent analytic advice to the Secretary of War on all aspects of the Defense program, including alternative weapon systems and force structures, the development and evaluation of programs and defense program alternatives, and the cost-effectiveness of defense systems. OUSW(C) and CAPE use multiple systems to formulate, justify, distribute, and execute DoW budgets. The information managed by the budget formulation and programming systems is redundant, and reconciliation of information is difficult and inefficient. These systems require extensive manpower investments to provide executives the information needed to make timely key financial decisions. The OUSW(C) and CAPE require a more efficient and effective Defense budget environment that optimizes the budget cycle to ensure users are processing and reporting efficiently and DoW Senior Leadership has the information to make informed, critical decisions. The OUSW(C) requires capabilities to provide for the effective formulation, and justification of the Defense budget to be adaptable and modern. This includes the following: • Automated exchange and reconciliation of budget data • Improved efficiency through the utilization of a unified budgetary model • Instantaneous ability to generate data for management reviews and decisions • Capability to accommodate emerging business practices • Agile methods to launch and terminate new development efforts more quickly • Seamlessly combine the outputs of multiple efforts at various levels of maturity for organizational responsiveness and alternative resource allocation for innovation adoption As of the 3rd Quarter FY 2022, the NGRMS has been developed and has deployed Initial Operating Capability (IOC) to all Department of War Services and agencies.

**Named R-3 performers** (share of this project's FY2027 R-3 total, so they need not reach 100%)**:** OUSW(C) (23.3, 100%).

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| Next Generation Resource Management System | 7.3 | 9.6 | 23.3 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

## Where the FY2027 request goes

| Category | Share | $M |
|---|---|---|
| Industry primes | 100% | 273.3 |

**Top named industry performers:** OUSW(C), DLA, DISA ($250.0M, 91%), OUSW(C) ($23.3M, 8.5%).

> R-3 exhibit contract funding, not USAspending obligations.

## Mission & acquisition strategy

As the Department of War's strategic, operational, and tactical plans and objectives transform the war fighter with new capabilities and doctrine, the budgeting and accountability of funds used to pursue the Department's objectives will become more complicated and detailed allowing senior leaders to make decisions with supporting rationale for the taxpayer. Incorporating information technology towards current and emerging business processes manifesting into a state-of-the art system of systems will result in increasing efficiencies, timely diagnostics, and reducing lifecycle costs to maintain, sustain, and repair.

The program will use a multi-contract acquisition approach to accelerate legacy system retirement and deliver modernized financial capabilities. Existing enterprise contract vehicles will be leveraged for upgrades to various financial systems, ensuring continuity and reducing integration risk. Competitive task orders and modular service contracts will support automation expansion, AI-enabled internal controls, data quality improvements, and interoperability enhancements. Specialized classified development will be executed through secure, cleared vendor contracts. This diversified contracting strategy enables rapid delivery, reduces cost and schedule risk, and ensures timely completion of key modernization efforts to meet FY 2028 audit objectives.

## Related program elements

- [0901554F — Defense Enterprise Acntng and Mgt Sys (DEAMS)](https://hitchintel.com/programs/0901554F) (Air Force)
- [0101221N — Strategic Sub & Wpns Sys Supt](https://hitchintel.com/programs/0101221N) (Navy)
- [0303153K — PEO Spectrum](https://hitchintel.com/programs/0303153K) (Defense-Wide)
- [0208085JCY — Robust Infrastructure](https://hitchintel.com/programs/0208085JCY) (Defense-Wide)

## Source & machine access

- **Source:** FY2027 Office of the Secretary of Defense RDT&E Budget Justification, Exhibits R-2/R-3, PE 0605027D8Z (PB PB2027); FY2027 NDAA committee marks (as of 2026-07-27).
- **MCP:** `mcp.hitchintel.com` — `budget_get_program_element(pe="0605027D8Z")`.

*HitchAI is an independent intelligence service, not affiliated with the U.S. Department of Defense. Budget figures are requests/estimates, not obligations.*