Component Business Modeling (CBM) is an aggregation of models, methods and techniques that are designed to organize, understand, evaluate, and ultimately, transform an enterprise. The decomposition of an enterprise into well bounded and discrete business components enables a straightforward understanding of a complex enterprise and facilitates the realization of business intent by information technology. This paper examines the use of CBM within the government sector. At more than twice the size of the world's largest commercial enterprise, the Business Management Modernization Program (BMMP) of the Department of Defense (DoD) is undertaking a dramatic and complex business transformation. Our team proposed the use of CBM to address their objectives. We will first discuss how business components (referred to as business capabilities by the DoD) is used to leverage the enterprise architecture, to analyze business transformation opportunities, and to identify business services. We will then describe how the results of CBM can be used to refine a service oriented view of the business.