GAO Report: Navy Wastes Billions on Redundant IT Systems, Initiates Modernization Efforts

The Department of the Navy has squandered billions of dollars sustaining redundant and obsolete information technology (IT) systems, according to a recent report by the Government Accountability Office (GAO). Acknowledging this issue in December 2020, the Navy initiated a comprehensive effort to modernize, consolidate, and retire outdated systems. This initiative has already resulted in the termination of at least 11 legacy systems and achieved savings of more than $100 million, as reported by the Navy GAO.

As part of its modernization push, the Navy announced in January 2026 that it had completed the migration of remaining Navy commands to the Navy Enterprise Resource Planning system, its designated financial system of record. However, the GAO notes that while progress has been made, the Navy's efforts could be strengthened by fully adhering to leading practices for strategic and migration planning. In terms of strategic planning, the Navy met two of three leading practices, such as aligning its financial management strategy with broader Navy and Department of Defense (DOD) plans. Yet, it only partially met the practice of implementing performance measurement approaches, failing to fully establish metrics for seven of nine fiscal year 2025 goals GAO.

For migration planning, the Navy fully met one of four leading practices by providing a mechanism for executive management to monitor the migration effort through Systems Consolidation Action Plans. However, it only partially met the remaining three practices, including developing an enterprise roadmap, scheduling periodic reviews, and establishing a tracking system for managing progress and issues. The GAO identified at least 111 changes to consolidation plans, with 49 schedule delays, which could hinder the Navy’s ability to support DOD’s goal of achieving a clean audit opinion by the end of 2028. A clean audit is critical for ensuring accountability and effective stewardship of federal resources needed for military readiness GAO.

The broader context of this issue underscores its importance. The DOD remains the only major federal agency without an unmodified audit opinion, and modernizing the Navy’s financial management systems is a key step toward addressing this gap. The Navy’s efforts to consolidate and update its IT infrastructure are not just about cost savings—they are essential for improving transparency and ensuring that taxpayer funds are used efficiently to support warfighters and national security objectives GAO.

While the Navy has taken significant steps, the GAO warns that incomplete adherence to best practices could introduce risks to the modernization process. Fully implementing performance metrics and migration planning strategies would help mitigate delays and ensure that the Navy meets its long-term financial management goals. This issue is particularly pressing given the scale of the waste identified—billions of dollars over years of maintaining unnecessary systems—and the potential for further savings and operational improvements if modernization is executed effectively GAO.

Why this is uncovered

This critical financial management issue has largely been absent from mainstream media coverage, likely due to its technical nature and the lack of immediate political controversy or public-facing impact. The GAO report focuses on internal government processes and long-term fiscal accountability, topics that often fail to capture widespread attention compared to more sensational or urgent news cycles. Despite this, the story holds clear public interest as it involves billions in taxpayer dollars and the Navy’s ability to support national security through efficient resource management.