Depot Maintenance: Actions Needed to Provide More Consistent Funding Allocation Data to Congress

GAO-07-126 Published: Nov 30, 2006. Publicly Released: Nov 30, 2006.
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Highlights

Under 10 U.S.C. 2466, the military departments and defense agencies may use no more than 50 percent of annual depot maintenance funding for work performed by private-sector contractors. The Department of Defense (DOD) must submit a report to Congress annually on the allocation of depot maintenance funding between the public and private sectors for the preceding fiscal year and projected distribution for the current and ensuing fiscal years for each of the armed forces and defense agencies. As required by Section 2466, GAO reviewed the report submitted in April 2006 and is, with this report, submitting its view to Congress on whether (1) the military departments and defense agencies complied with the 50-50 requirement for fiscal 2005 and (2) the projections for fiscal years 2006 and 2007 represent reasonable estimates. GAO obtained data used to develop the April 2006 report, conducted site visits, and reviewed supporting documentation.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To improve the consistency and accuracy of depot maintenance funding allocation data in DOD's annual 50-50 report to Congress, the Secretary of Defense should direct the Secretaries of the Army, Navy, and Air Force and the Commandant of the Marine Corps to follow Office of the Secretary of Defense guidance and report funding obligations rather than expenditures.
Closed - Implemented
The Office of the Secretary of Defense's data call for Fiscal Year 2006 Distribution of DOD Depot Maintenance Workloads, dated 12/19/2006, specifically required DOD components to report obligations rather than expenditures.
Department of Defense To improve the consistency and accuracy of depot maintenance funding allocation data in DOD's annual 50-50 report to Congress, the Secretary of Defense should direct the Under Secretary of Defense for Acquisition, Technology, and Logistics, in conjunction with the Secretaries of the Army, Navy, and Air Force, and the Commandant of the Marine Corps, to establish measures to ensure proper accounting of the allocation of interservice workloads between the public and private sectors.
Closed - Implemented
The Office of the Secretary of Defense's data call for Fiscal Year 2006 Distribution of DOD Depot Maintenance Workloads, dated 12/19/06, was specific to require the military departments and defense agencies to establish measures to ensure correct accounting of interservice workloads (work performed by one component for another). The measures are intended to ensure that the workload report is from the principal's prespective--that is, the component for whom the work is being performed--and that there is no duplicate reporting.

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