Army Materiel Command Spent Millions Without Knowing Total Costs and Benefits
IMTEC-86-18: Published: Jun 20, 1986. Publicly Released: Jun 20, 1986.
- Full Report:
GAO reviewed the Army Materiel Command's (AMC) management and control of the projects associated with its computerized Commodity Command Standard System (CCSS).
GAO determined that AMC has modified and expanded CCSS in violation of Army regulations that require: (1) complete and accurate economic analyses; and (2) tracking and reporting of project costs. GAO also found that AMC: (1) did not require reviews of completed projects to determine if expected benefits were achieved; and (2) could not demonstrate whether expected benefits were being realized from the millions spent annually to modify and expand the system.
Recommendation for Executive Action
Status: Closed - Implemented
Comments: The Army is modifying its project tracking system to capture costs and benefit data and provide exception and status reports.
Recommendation: Before taking any corrective action, the Secretary of the Army should consider the desirability of continuing to use the Logistics System Review Committee as the approval and project-managing authority for system changes. After this has been considered, the Secretary of the Army should direct the Commander, AMC, to: (1) ensure that the AMC approval authority adheres to all pertinent Army and AMC regulations regarding the approval of software changes and the tracking, updating, and reporting of costs associated with such changes; (2) review completed CCSS software projects to determine if expected benefits and cost reductions have been achieved, so that this information can be included as part of the Army's annual budget submission; and (3) see that the automated logistics management systems activity (ALMSA) Director evaluates available alternatives and recommends how the ALMSA job tracking system should be modified so that all costs are collected and correlated by project.
Agency Affected: Department of Defense: Department of the Army