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DOD Competitive Sourcing: Plan Needed to Mitigate Risks in Army Logistics Modernization Program

NSIAD-00-19 Published: Oct 04, 1999. Publicly Released: Oct 04, 1999.
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Highlights

Pursuant to a congressional request, GAO reviewed the Army's decision to contract for its Wholesale Logistics Modernization Program.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should require the Secretary of the Army to develop a transition plan based on an assessment of the quantitative and qualitative risks associated with this project and what actions are planned to mitigate those risks.
Closed – Implemented
In preparing for the conversion from in-house operation to contractor operation, the Army developed a transition plan based on risks associated with the project and developed risk mitigation strategies. The transition plan and risk mitigations extend to the transfer of functions and also to the migration of converting the legacy software system to the modernized system.
Department of Defense The Secretary of Defense should require the Secretary of the Army provide for sufficient oversight with quantifiable performance measures to track the success of the modernization program.
Closed – Implemented
There are currently 3 separate entities which provide oversight to the Logistics Modernization program. There is a Corporate Board of Directors, headed by a General officer, which monitors the strategic direction of the program; an Operational Board of Directors, composed of senior logisticians, which provides functional oversight; and, at the DOD level, the Deputy CIO/ASD(C3I) oversees the program through portfolio management of GCSS Army. Performance metrics were incorporated into the contract, which was let 29 Dec 1999. Whenever possible, commercial standards were used for the metrics. Additional metrics will be added through the IPTs, as appropriate.

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Topics

Army procurementCost effectiveness analysisInventory control systemsLogisticsManagement reengineeringMilitary cost controlPrivatizationComputer resources managementU.S. ArmyMilitary forces