Help Your Boss, Help Yourself
You can react or act on this request.
Remember all the "Move Mount Fuji" questions? If you were in an interview for a job you really wanted, you would not tell the interviewer how stupid the question was, but would keep asking questions and expressing your best ideas about solving it. In some cultures, you would not ever say no to a boss who actually asked you to move Mount Fuji, but would find a way for you to both save face.
Reframing the Question
If you were to reframe the question into something like,
"Can I buy or otherwise acquire a suite of tools that automate as many
of the low productivity tasks related to software as possible?"
this assignment becomes much more palatable. Help your boss (and yourself) by giving him an option with clear tracability to CASE, and one or two Agile / open source / cloud based options.
In the '90s, CASE tools might take the form of a suite of tools from Rational that probably included Requisite Pro, Rational Rose, Clear Case, Rational Robot (a test runner), Purify, Pure Coverage, and Quantify, and several other tools that were integrated together. If you were a MAD shop (Medical, Avionics, Defense) you might use updated versions of these tools to produce extensive and traceable documentation and artifacts that are often required by customers in those markets.
Contact IBM and get a salesman out to give a quote for five licences (or just one floating license). Add in some training too. Sharing this quote with your manager may end the talk about CASE tools. But don't get me wrong. I like Rational, their chief scientists, and their products, but have mainly accessed them through university site licenses because their price was too high for the companies where I have worked. If you are approved, at least from my experience, they will treat your right with good support, quality training (usually at a top resort with great food).
Tools for Sale
You still have a great opportunity to go tool shopping. Agile developers need tools too. You could buy a suite that gives you documentation support for online story cards, use cases, use case and other UML diagram types. Atlassian has what I think is a nice suite of tools - Jira for task and bug tracking, Green Hopper for what they describe as Agile project management, Confluence for an intranet wiki, Crucible for online code review, and Bamboo for a continuous integration server. There are software as a service licenses for these and other tool suites targeted to your needs if you are Agile.
IDE integration is another avenue of getting a year 2012 CASE equivalent. If you are a Microsoft development house, Visual Team Studio has tools that are of similar scope to what Rational created. They have some round-trip software engineering, generation of unit test stubs from classes, integration with source control systems, and a bunch of tools for team collaboration.
Open Source Tools
On the open source side, Eclipse and its many plug-ins try to integrate a bunch of open source tools. I am not sure if Eclipse Modeling Framework is mature or if there are other tools that give effective round-trip software engineer, but last time I looked, it didn't seem very easy to achieve. The Qt Creator environment integrates with source control, and has some capabilities to help with spot checking from code coverage of changes while you are in the editor.
Iterative Incremental Tool Adoption
An iterative / incremental approach to tool selection can also be very effective. Open source projects often support single or multiple environments. Your tool choices may be influenced by the stacks that you use. There is never a good time to completely shut down development, so adding and training the team in a few smaller tools per quarter may be better than a big bang approach that changes everything at once.
Cloud Tool Solutions
Many of the solutions listed may require servers and relatively complex setup. There are a lot of options coming into the market that are cloud based and provide software as a service hosted by a provider for a monthly fee. This may make sense for your team, either short or long term. Some may have a hosted solution you can use for a quick start, with the option to buy licenses later on.
None of these suggestions is an inexpensive and easy road to instant productivity improvement, but if you may find some of the tools indispensible once you give them a try.