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Prior reports and studies have identified major risks in the Department of Defense's (DOD) management, funding, and reporting of spare parts spending programs. Spare parts shortages adversely affect the U.S. Army's operations and can compromise the readiness of weapon systems. To address these issues, Congress has fully funded DOD's requests for spare parts spending and in some instances increased funding for additional spare parts. Yet, the Army continues to experience spare parts shortages. Congress requested that GAO evaluate (1) the Army's strategic plans for reducing spare parts shortages, (2) the likelihood that key initiatives will reduce such shortages, and (3) the Army's capability to identify the impact on readiness of increased investments for spare parts.

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Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should direct the Secretary of the Army to modify or supplement the Transformation Campaign Plan, or the Armywide logistics initiatives to include a focus on mitigating critical spare parts shortages with goals, objectives, milestones, and quantifiable performance measures, such as supply availability and readiness related outcomes.
Closed - Not Implemented
Per DODIG, the recommendation is closed. The Army does not intend to update its Transformation Campaign Plan to focus on mitigating critical spare parts.
Department of Defense The Secretary of Defense should direct the Secretary of the Army to implement the Office of Secretary of Defense recommendation to report, as part of budget requests, the impact of additional spare parts funding on equipment readiness with specific milestones for completion.
Closed - Implemented
In June 2002, the OSD Under Secretary of Defense Comptroller updated the SM-3B budget exhibit, which is a weapon system breakout showing readiness type data, requiring this information as part of the annual budget estimate submission. The Army's fiscal year 2004 exhibit entitle Operating Requirement by Weapon System (SM-3B) links budgeted amounts for weapon systems to Non-Mission Capable Supply Rates.

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