Summary
The Department of Defense (DOD) is required, by law, to maintain a core logistics capability that is government owned and government operated to meet contingency and other emergency requirements. Military depots play a key role in maintaining this "core capability," although in recent years DOD has significantly increased its use of contractors. At the subcommittee's request, GAO examined the extent to which (1) DOD has accurately assessed whether it has the required core capabilities in military depots and (2) DOD is preparing to support future core requirements for new and modified systems. GAO reviewed DOD's biennial process for determining core capability requirements and the associated workloads for fielded systems. GAO also reviewed whether DOD had identified and established core capability in a timely manner for new and modified systems.
DOD, through its biennial core process, has not comprehensively and accurately assessed whether it has the required core capability to support fielded systems in military depots. Although DOD internally reported that its maintenance workload of 92.7 million hours in 2007 was "well over" the minimum of 70.5 million hours needed to fulfill core requirements at military depots and that the services were complying with their core capability requirements, this assessment did not show capability shortfalls identified by the services in their core computations. GAO's analysis of the services' 2007 core capabilities data determined that the Army, Navy, and Marine Corps had shortfalls for some equipment categories or technologies. For example, the Army identified core shortfalls of 1.4 million hours for 10 equipment categories. Several factors contributed to the deficiencies in the core process. Current guidance does not address how DOD is to consolidate the services' results into a meaningful department wide assessment. Also, there were errors and inconsistencies in the services' core calculations, making the full extent of the shortfalls unclear, and DOD also did not have effective internal controls in place to identify and resolve these errors and deficiencies. Further, DOD's core process does not have an effective mechanism for ensuring that corrective actions are taken to resolve shortfalls for fielded systems. As a result of shortcomings in the core process, DOD does not know the extent to which the military depots will have the capability to repair weapon systems to support future military operations. Finally, since DOD is not required to provide Congress information on its core process, the results of the process are not readily and routinely visible for purposes of congressional oversight. DOD is not adequately preparing military depots to support future core requirements through its acquisition process. Specifically, for the new and modified systems included in our review, the department had neither identified nor established core capabilities for certain systems in a timely manner. DOD acquisition guidance requires that an analysis of core requirements for new and modified systems be conducted early in the acquisition phase (no later than Milestone B or no later than Milestone C if there is no Milestone B). However, GAO found that program offices managing 20 of 52 systems we reviewed did not identify core requirements by Milestone C. DOD is also not establishing core capabilities for new and modified systems in a timely manner--that is, within 4 years of the system's achieving its initial operational capability, as required under DOD guidance. Shortcomings in the acquisition process include (1) acquisition guidance provides little or no information on how to identify and plan for the establishment of core capability, (2) program acquisition strategies do not fully address core requirements, and (3) some program offices are not procuring technical data necessary to establish a core capability. As a result, DOD has little assurance that the department is preparing military depots to meet future national defense contingencies.
Recommendations
Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.
Director:
Team:
Phone:
William M. Solis
Government Accountability Office: Defense Capabilities and Management
(202) 512-8365
Matters for Congressional Consideration
Recommendation: Congress may wish to consider requiring DOD to report on the status of its effort to maintain a core logistics capability consistent with Section 2464 of Title 10, U.S. Code. In doing so, Congress may wish to require that DOD report biennially on the results of its core determination process, actions taken to correct any identified shortfalls in core capability, and efforts to identify and establish core capability for new and modified systems in a timely manner, consistent with DOD guidance.
Status: In process
Comments: When we determine what steps the Congress has taken, we will provide updated information.
Recommendations for Executive Action
Recommendation: To improve DOD's ability to assess core logistics capabilities with respect to fielded systems and correct any identified shortfalls in core capability, the Under Secretary of Defense for Acquisition, Technology, and Logistics should require DOD to compile and report the services' core capability requirements, planned organic workloads, and any shortfalls by equipment/technology category (work breakdown structure).
Agency Affected: Department of Defense
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To improve DOD's ability to assess core logistics capabilities with respect to fielded systems and correct any identified shortfalls in core capability, the Under Secretary of Defense for Acquisition, Technology, and Logistics should require DOD to implement internal controls to prevent errors and inconsistencies in the services' core calculations. At a minimum, internal controls should address errors and inconsistencies identified in our review on the need to include (1) all JCS-scenario-tasked systems, (2) software maintenance requirements, and (3) only public depot maintenance workload when adjusting for redundancy.
Agency Affected: Department of Defense
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To improve DOD's ability to assess core logistics capabilities with respect to fielded systems and correct any identified shortfalls in core capability, the Under Secretary of Defense for Acquisition, Technology, and Logistics should explicitly state the mathematical calculations, based on their core determination worksheets, which the services should use to determine core capability requirements, associated workload, and shortfalls, if any.
Agency Affected: Department of Defense
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To improve DOD's ability to assess core logistics capabilities with respect to fielded systems and correct any identified shortfalls in core capability, the Under Secretary of Defense for Acquisition, Technology, and Logistics should require DOD to establish a mechanism to ensure that corrective actions are taken to resolve identified core shortfalls. For example, DOD should institute, in the alternative years of the biennial core process, a status report on the actions taken to resolve shortfalls identified in the previous year.
Agency Affected: Department of Defense
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To provide better assurance that program offices identify and establish core depot maintenance capabilities for new and modified systems in a timely manner, the Under Secretary of Defense for Acquisition, Technology, and Logistics should provide program managers with standard operating procedures for performing a core logistics analysis as required in DOD guidance. These standard operating procedures should also ensure that core requirements are considered in conjunction with other sustainment approaches.
Agency Affected: Department of Defense
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To provide better assurance that program offices identify and establish core depot maintenance capabilities for new and modified systems in a timely manner, the Under Secretary of Defense for Acquisition, Technology, and Logistics should modify DOD Instruction 5000.02 to incorporate the 4-year time frame for establishing core capability from initial operational capability, as currently required in DOD Directive 4151.18.
Agency Affected: Department of Defense
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To provide better assurance that program offices identify and establish core depot maintenance capabilities for new and modified systems in a timely manner, the Under Secretary of Defense for Acquisition, Technology, and Logistics should require that the acquisition strategy for each new and modified system include either a statement that core capability requirements were not identified for the system or, if core requirements were identified, a plan for establishing core capability within 4 years of initial operational capability, including obtaining the required resources.
Agency Affected: Department of Defense
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Recommendation: To provide better assurance that program offices identify and establish core depot maintenance capabilities for new and modified systems in a timely manner, the Under Secretary of Defense for Acquisition, Technology, and Logistics should require an initial core assessment early in the acquisition process (preferably prior to Milestone B).
Agency Affected: Department of Defense
Status: In process
Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
