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Highlights

The Logistics Modernization Program (LMP) is an Army business system that is intended to replace the aging Army systems that manage inventory and depot repair operations. Through 2009, the Army obligated more than $1 billion for LMP. LMP was originally scheduled to be completed by 2005, but after the first deployment in July 2003, the Army delayed fielding because of significant problems. The Army has since decided to field the system in two additional deployments: the second deployment occurred in May 2009, and the third deployment is scheduled to occur in October 2010. GAO was asked to evaluate the effectiveness of the Army's management processes in enabling the second deployment sites to realize the full benefits of LMP.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Army 1. To improve the third deployment of LMP, the Secretary of the Army should direct the Commanding General, Army Materiel Command, to improve testing activities to obtain reasonable assurance that the data used by LMP can support the LMP processes.
Closed - Not Implemented
The Army concurred with this recommendation and, as stated in their agency comments, planned to use two new test activities that would address lessons learned from the second deployment of LMP. One of these activities--the Business Operational Test--would involve LMP users performing transactions in LMP using local data, from their home station, which would bring data, business processes, standard operating procedures and end user training materials together to ensure success. During a follow-up audit, we reported that the Army's testing activities did not assess data quality because the Business Operational Test was conducted using simulated data.
Department of the Army 2. To improve the third deployment of LMP, the Secretary of the Army should direct the Commanding General, Army Materiel Command, to improve training for LMP users by (1) providing training on actual job processes in a manner that allows the users to understand how the new processes support their job responsibilities and the types of work they are expected to perform and (2) providing training at the individual deployment sites to match deployment timelines.
Closed - Implemented
For the third deployment of LMP in October 2010, the Army adopted a training strategy that relied on a local cadre of experts to deliver training. After the third deployment, the Army Materiel Command (AMC) implemented several improvements to its training program for LMP, such as improving management, development, and execution of training. For example, management of training is now centralized at AMC headquarters G3/G5/G7. AMC also offers coursework--through instructor-led training and web portal access--that cover topics ranging from core fundamentals of LMP to troubleshooting system errors. The curriculum includes specific job-related functions such as creating a purchase order at a depot and creating a purchase order at a life cycle management command. Additionally, the Army Logistics University began providing coursework in 2012 on LMP fundamentals, as well as specific coursework on major and secondary item management. To support LMP training, AMC also instituted a process in December 2012 that enables the extraction of data from LMP to support training. The combination of these activities, while made subsequent to the third deployment of LMP, fulfills the intent of our recommendation with respect to new users of the system.
Department of the Army 3. To improve the third deployment of LMP, the Secretary of the Army should direct the Commanding General, Army Materiel Command, to establish performance metrics that will enable the Army to assess whether the deployment sites are able to use LMP as intended.
Closed - Implemented
The Army concurred with our recommendation, and on September 30, 2010, the Army finalized performance measures that they used to monitor the third deployment of LMP. The Army used these performance measures after the third deployment of LMP (October 21, 2010) through the transition to sustainment (December 2011). These performance measures enabled them to assess whether the deployment sites were able to use LMP as intended.

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