The DoD¿s acquisition of weapon systems and modernization of business systems have both been on a list of high-risk areas since 1995. To assist DoD in managing software-intensive systems, Section 804 of the Bob Stump Nat. Defense Authorization Act for FY 2003 required the Office of the Sec. of Defense and DoD component organizations, including the military departments, to undertake certain software and systems process improvement actions. This report assessed: (1) the extent to which DoD has implemented the process improvement provisions of the act; and (2) the impact of DoD's process improvement efforts. Includes recommendations. Charts and tables.