Defense Infrastructure:

Enhancing Performance Through Better Business Practices

T-NSIAD/AIMD-95-126: Published: Mar 23, 1995. Publicly Released: Mar 23, 1995.

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GAO discussed the Department of Defense's (DOD) progress in reducing the defense infrastructure and improving financial management operations. GAO noted that: (1) DOD has not reduced its infrastructure at a rate commensurate with reduced force levels; (2) DOD has not given managers the financial information they need to make better business decisions; (3) DOD projects that its list of 1995 base closure and realignment recommendations will increase closures to 21 percent of its domestic bases and it will fall short of its goal of 30-percent base reduction; (4) such initiatives as the Defense Management Report, Corporate Information Management, and the Defense Business Operations Fund are not working as intended; (5) DOD has opportunities to realize long-term savings in base closures, depot maintenance, inventories, and information technology management; (6) DOD can realize near-term savings in financial management, systems modernization, transportation, printing, inventory management, and personnel management; and (7) DOD needs to adopt private-sector business practices and reengineer its management processes to realize savings and operate more efficiently.

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