Defense Distribution System Illustrates Problems Facing Corporate Information Management Interim Standard Systems

GAO discussed the Department of Defense's (DOD) Corporate Information Management Initiative's nomination of the Defense Distribution System (DDS) as an interim standard system for integrating several existing systems that automate supply depots and related warehouse operations. GAO noted that: (1) DOD believed that combining components' separate depot systems into a standard depot automation system would achieve significant savings; (2) DOD did not conduct a cost/benefit analysis before proceeding with its initiative to consolidate supply depots; (3) DOD did not support its nomination with conclusive analysis of DDS functional and technical merits relative to alternative systems; (4) it was unclear whether DDS was suitable for combining supply and maintenance operations; and (5) lack of underlying data and transaction standards could account for a substantial amount of the technical difficulty and cost of integrating separate logistics systems into DDS.