Defense Depot Maintenance: Public and Private Sector Workload Distribution Reporting Can Be Further Improved

On November 23, 1998, the Office of the Secretary of Defense (OSD) issued guidance that directed the military departments and defense agencies to develop and document internal operating procedures for collecting and reporting public- and private-sector workload allocation data. In complying with OSD's direction, the Army and Air Force developed and documented specific internal operating instructions that were used in developing data for the fiscal year 1998 public and private workload allocation report to Congress. The Navy is developing and documenting internal operating procedures for use in developing workload allocation data for the fiscal year 1999 reporting cycle.

On November 23, 1998, OSD issued clarifying guidance to the military services to facilitate data collection and promote more accurate and consistent reporting. The instructions specified that funding for the installation of parts for modifications and upgrades of safety and performance enhancements should be included as a matter of DOD policy. GAO's report on the fiscal year 1998 workload allocation report (GAO/NSIAD-99-154) concluded that while DOD issued the suggested guidance, the military departments continued to experience difficulties developing complete and consistent reports of funding for the installation of modifications and upgrades.

On November 23, 1998, OSD issued guidance to the military services to facilitate data collection and to promote more accurate reporting during the fiscal year 1998 congressional reporting cycle. In addition, OSD held supplemental working group meetings to discuss and clarify specific reporting instructions. For example, during the supplemental workgroup meetings, OSD discussed reporting requirements for medical support equipment. As a result, the Defense Health Agency reported on these workloads for the fiscal year 1999 reporting cycle. Lastly, OSD officials clarified that contract administration costs are not to be considered as factors of production and therefore, instructed the services that such costs should not be included in determining the public- and private-sector workload distribution reports.

In November 1998, OSD issued guidance specifying that all depot maintenance work was to be reported, regardless of where the work was performed, including all work at non-working-capital funded maintenance facilities, and facilities primarily devoted to purposes other than depot-level maintenance. A subsequent GAO report (GAO/NSIAD-99-154) indicates that problems persist in the services' efforts to accurately and consistently define and report such work conducted at nondepot locations. For example, the amount of depot maintenance work conducted at Army field activities was understated, while the total amount of such work cannot be readily determined. Additionally, the Navy did not report any of the work conducted at its Trident Refit Facilities, even though these facilities were designed to support incremental depot overhauls and repairs. OSD commented that it intended to issue further clarifying guidance to address these problems prior to the next congressional reporting cycle.