GAO Report GAO-07-396R DLA Has Made Progress in Improving Prime Vendor Program but Has Not Yet Completed All Corrective Actions- DTD 26 Feb 2007

DoD operates a worldwide supply system, with the vast majority of the items being managed by DLA.  Media reports in October 2005 raised concerns about the use of the prime vendor concept and the prices that DLA was paying for items acquired through a prime vendor, and the House Armed Services Committee held a hearing on the matter.  As a result of the hearing, DLA officials recognized the need to improve management oversight and internal controls over the program, and they proposed a series of corrective actions.