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Depot Maintenance: Actions Needed to Identify and Establish Core Capability at Military Depots

GAO-09-83 Published: May 14, 2009. Publicly Released: May 14, 2009.
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Highlights

 

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.

 

Recommendations

Matter for Congressional Consideration

Matter Status Comments
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.
Closed – Implemented
The National Defense Authorization Act for Fiscal Year 2012, Pub. L. No. 112-81, amended Section 2464 of Title 10 of the United States Code to require that the Secretary of Defense submit to Congress a biennial report identifying core depot-level maintenance capabilities and the workloads required to sustain those capabilities. The congressional report is required no later than April 1 on each even-numbered year detailing core capability requirements. In September 2012, the Under Secretary of Defense (Acquisition, Technology & Logistics) issued the first Biennial Core Report to Congress.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense 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).
Closed – Implemented
Assistant Secretary of Defense for Logistics and Materiel Readiness tasked the services in an April 2012 memorandum to report core capability requirements by work breakdown structure. In the DOD's 2012 Biennial Core Report, the department reported the core capability requirements, planned organic workloads, and shortfalls by work breakdown structure.
Department of Defense 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.
Closed – Implemented
Assistant Secretary of Defense for Logistics and Materiel Readiness tasked the services in a March 2010 memorandum to include all Joint Staff-tasked systems and software maintenance requirements as part of the core logistics capabilities. Also, the memorandum tasked the services to only consider organic (public) depot maintenance workloads when adjusting for redundant capability.
Department of Defense 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.
Closed – Implemented
Assistant Secretary of Defense for Logistics and Materiel Readiness tasked the services in a March 2010 memorandum to use the tables from DOD Instruction 4151.20. The services were instructed to fully complete those tables in their entirety in their format and provide their responses in both Excel spreadsheet and hardcopy.
Department of Defense 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.
Closed – Implemented
DOD included core sustaining workload shortfalls as a semi-annual agenda item for the Maintenance Executive Senior Steering Group.
Department of Defense 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.
Closed – Implemented
The Defense Acquisition Guidebook (DAG) Chapter 5 (6/2011) has been revised to emphasize the necessity of incorporating core planning early in the acquisition cycle. For example, the DAG section 5.2.1.1 (6/2011) states during the pre-system acquisition phase -when the capabilities and major constrains that frame the acquisition strategy and program structure for both the system and its support concept - the analysis should include core statutory requirements. Also, in the DAG section 5.2.1.3 - Key Depot Maintenance Analysis Elements - it provided guidance for program managers to determine the most effective levels of maintenance and sources based on material availability and cost factors. Core capability requirements should be part of this analysis to ensure that the maintenance source complies with the statutory requirement.
Department of Defense 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.
Closed – Implemented
DOD has implemented the intent of the recommendation because the DOD Instruction 4151.20 and in the Defense Acquisition Guidebook include the 4-year time frame for establishing core capability from initial operational capability. DOD Instruction 5000.02 - Operation of the Defense Acquisition System - December 8, 2002, will be revised to correctly reference the necessity to conduct a core capability assessment and analysis in accordance with the provisions of DOD Directive 4151.18 and DOD Instruction 4151.20, which already incorporate the requirement for the 4-year timeframe for establishing core capability from initial operational capability. The Defense Acquisition Guidebook was updated to reflect this requirement.
Department of Defense 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.
Closed – Implemented
DOD Instruction 5000.02 - Operation of the Defense Acquisition System - December 8, 2008 was revised to reflect a requirement to document the results of the Core Logistics/Source of Repair Analysis prior to Milestone B (or prior to Milestone C if there is no Milestone B). The Defense Acquisition Guidebook (Section 5.2.1.3) was revised in 2010 to incorporate the 4-year timeframe for establishing core capability from initial operational capability.
Department of Defense 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).
Closed – Implemented
The June 2011 Defense Acquisition Guidebook states the identification of the need for a core determination will occur at least 180 days prior to the acquisition Milestone B decision need date. For systems entering the acquisition process after Milestone B, identification will occur immediately following the acquisition approval.

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Contingency operationsDefense capabilitiesDefense contingency planningDefense procurementFacility maintenanceInternal controlsLogisticsMilitary facilitiesMilitary forcesProcurementProcurement planningReporting requirementsRequirements definitionStrategic planningWeapons systemsPolicies and proceduresCorrective action