ARLINGTON, VA – The Nakupuna Companies achieved a significant milestone this week in the Navy Personnel and Pay System (NP2) program, as they completed technical development of the Treasury Direct Disbursement/Pay capability and announced it is ready for government testing. This release marks an important step toward achieving NP2 Initial Operating Capability (IOC) and is a critical piece of the Navy’s overall Human Resources transformation.

In support of MyNavy HR IT Solutions (PMW 240), development of the NP2 system has been a multi-year effort designed to revolutionize and streamline Navy personnel and pay management while minimizing errors and increasing operational efficiency. Now ready for testing, the NP2 team is preparing a series of demos and training seminars designed to orient key stakeholders to the new system and its functionalities. As Nakupuna and PMW 240 move through the testing process, user input will be collected, organized, and developed into new requirements that will be deployed in the months to come. This process of continual improvement—a hallmark of Agile development methodology—will ensure NP2 addresses the needs of its users as they begin to transition their work away from the Navy’s legacy systems.

Once fully tested and implemented, NP2 will provide full scale personnel and pay processing for nearly a half-million active duty and reserve Sailors by consolidating a disparate array of legacy HR systems—some of them older than the workforce that manages them today. These legacy systems have proven insufficient to meet the needs and complexity of modern personnel data management for the Navy’s massive workforce. NP2 will also replace the Navy’s current antiquated active duty and reserve payroll systems that are currently managed by the Defense Finance Accounting Service (DFAS). This upgrade establishes a new standard for how military personnel systems are designed, developed, and managed.

Government testing will focus on real-world scenarios and processes based on how the NP2 IOC capability will be used, such as testing Sailors’ ability to access their paycheck information, view their leave and earning statement (LES), initiate personnel changes, manage their permanent change of station (PCS) information, request leave, and view their career data. On the back end, NP2 is designed to execute all Navy personnel business processes that trigger pay functions, including but not limited to activity gains and losses, recruit training activities, career and life events, reserve drills and mobilization to active duty, and retirement and separation processing. The consolidation of personnel and payroll transactions into one integrated system is intended to decrease transactions for Transaction Service Centers (TSCs), automating many processes that are currently manual and significantly relieving the data entry burden for staff.

“The Navy’s investment in this system and trust in Nakupuna has been critical in getting us to this point,” said Lance McLain, Nakupuna’s Managing Director for the NP2 project. “Delivering a product to the Navy for test is a major step in proving that our system can support the kind of large-scale HR transformation that Sailors and personnel commands need. The complexity of the system cannot be overstated, and the development was not easy, but we are excited to announce this milestone with the Navy as we continue to facilitate testing and development of NP2, moving ever closer to the operational capability.”

Nakupuna began work on NP2 in 2016 by developing a small proof-of-concept with just a 5-person team. Since then, they have been a steady presence for this effort and have worked closely with the Navy throughout multiple contract iterations to see the system come to fruition. Based on Nakupuna’s consistent effort, their role in the project has steadily increased, and in September 2022 they were named the prime development contractor for this effort under a 5-year, $100 million IDIQ contract. Nakupuna has been instrumental in helping PMW 240 transform their various HR systems into a cohesive, modern capability by adopting industry-standard Agile development methodologies to improve traditional DoD software development processes.

“We are proud of this release and even more excited about where NP2 will be following testing,” said Jason Greenawalt, CEO of the Nakupuna Companies. “Tackling these challenges with the Navy demonstrated Nakupuna’s ability and expertise to provide today’s Sailors with a system that can more efficiently manage the back-end personnel and pay processes that support them and their careers. The NP2 system sets a new benchmark, not just for military personnel and pay management systems, but for how the DoD can design, develop, build, and deploy the systems needed to keep modern warfighters mission focused.”

About the Nakupuna Companies

The Nakupuna Companies are a Native Hawaiian Organization (NHO)–owned family of companies dedicated to providing innovative and impactful solutions to our customers while supporting our Native Hawaiian community. Specializing in management consulting, IT, facilities & infrastructure, logistics, and environmental services, we excel at finding elegant approaches that solve our clients’ toughest technical, programmatic, and logistical challenges. Headquartered in Hawaii, with offices in Arlington, VA, Denver, CO, Mechanicsburg, PA, and Charleston, SC, Nakupuna offers the diverse workforce and resources of a national company with the contractual advantages and startup ingenuity of a small business. The Nakupuna Companies are majority-owned by the non-profit Nakupuna Foundation.

About MyNavy HR IT Solutions PMW 240

MyNavy HR IT Solutions PMW 240, part of the Navy Program Executive Offices for Manpower, Logistics, and Business Solutions (PEO MLB), is responsible for modernizing and streamlining the Navy’s HR systems, providing state-of-the-art solutions to enable sailors to manage their careers efficiently and effectively. PMW 240 is committed to innovation, continuous improvement, and the responsible use of taxpayer dollars to enhance the lives and careers of sailors and their families.