Recommendation: The Secretary of the Army should ensure that the Commander, Army Materiel Command, develops procedures to help ensure that it will incorporate depot stakeholder input into the new metrics framework for the Army's organic industrial base through iterative and ongoing processes. (Recommendation 1)

Agency: Department of Defense: Department of the Army
Status: Open

Comments: The agency concurred with this recommendation.

Recommendation: The Commandant of the Marine Corps should ensure that the Marine Corps Logistics Command establishes a complete baseline schedule, which includes all planned depot maintenance work for the fiscal year, against which to measure performance. (Recommendation 2)

Agency: Department of Defense: United States Marine Corps
Status: Open

Comments: The agency concurred with this recommendation.

Recommendation: The Secretary of the Army should ensure that the Commander, Army Materiel Command, develops guidance that synchronizes the Army's timelines for required inputs from Army depot maintenance customers who use funds from the Procurement; Research, Development, Test, and Evaluation; and Operations and Maintenance budgets with the depots' timelines for development of their finalized budget estimate submissions to AMC. (Recommendation 3)

Agency: Department of Defense: Department of the Army
Status: Open

Comments: The agency concurred with this recommendation.

Recommendation: The Secretary of the Army should ensure that the Commander, Army Materiel Command, provides its non-Army customers with guidance that will help ensure that the depots have all updated maintenance needs in sufficient detail from non-Army customers prior to the depots' finalized budget estimate submissions to AMC. (Recommendation 4)

Agency: Department of Defense: Department of the Army
Status: Open

Comments: The agency concurred with this recommendation.

Recommendation: The Secretary of the Army should ensure that the Army Organic Industrial Base Corporate Board oversees a study that includes a recurring, comprehensive, and systematic analysis of Army depot data to identify trends and causes behind changes in depot maintenance schedules; and that it uses this analysis to recommend actions to reduce unplanned maintenance work, as appropriate and necessary. (Recommendation 5)

Agency: Department of Defense: Department of the Army
Status: Open

Comments: The agency concurred with this recommendation.

Recommendation: The Secretary of the Navy should ensure that Naval Air Systems Command and Commander, Fleet Readiness Centers effectively use historical data to analyze turnaround time and establish accurate turnaround time targets for fixed-wing aircraft depot maintenance packages. (Recommendation 1)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the Navy has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that Commander, Naval Air Forces and Commander, Naval Air Force, Pacific provide depot planners regular reporting on fixed-wing aircraft maintenance performed outside the Navy aviation depots by an operational unit or at an intermediate maintenance facility to ensure they have information on the current condition and depot maintenance needs of individual aircraft. (Recommendation 2)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the Navy has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that Naval Air Systems Command and Commander, Fleet Readiness Centers establish formal processes and related guidance for communication and coordination between depot stakeholders to inform maintenance requirements planning. (Recommendation 3)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the Navy has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of Defense should ensure that the Director of CAPE, in coordination with the Deputy Assistant Secretary of Defense for Nuclear Matters, the Deputy Assistant Secretary of Defense for Nuclear and Missile Defense Policy, and the Joint Staff Deputy Director for Strategic Stability, as co-chairs of the Nuclear Deterrent Senior Oversight Group, update the applicable guidance for methods of tracking and evaluating progress on implementation of the recommendations from the 2014 nuclear enterprise reviews, requiring DOD components to keep information—including any revised time frames—current. (Recommendation 1)

Agency: Department of Defense: Office of the Secretary of Defense
Status: Open

Comments: DOD concurred with our recommendation and stated that the Nuclear Deterrent Senior Oversight Group co-chairs or, as necessary, the Deputy Secretary of Defense as the chair of Nuclear Deterrent Enterprise Review Group (NDERG), will update the applicable guidance to ensure that time frames and other information associated with planned actions are kept up to date. In April 2020, the acting Deputy Assistant Secretary of Defense for Nuclear Matters issued a memo requesting updates to information that is included in the 2014 tracker by June 1, 2020; however, no additional guidance requiring continuing updates beyond June 1 has been issued as of September 2020.

Recommendation: The Secretary of Defense should ensure that the Under Secretary of Defense for Acquisition and Sustainment updates the applicable guidance for methods of tracking and evaluating progress on implementation of the recommendations of the 2015 NC3 report, requiring DOD components to keep information—including metrics for measuring progress and outcomes as well as any revised time frames that may extend out more than 1 year—complete and current. 49 (Recommendation 2)

Agency: Department of Defense: Office of the Secretary of Defense
Status: Open

Comments: DOD concurred with our recommendation and stated that the DOD Chief Information Officer and, as appropriate, the Under Secretary of Defense for Acquisition and Sustainment as the NC3 capability portfolio manager, will update the applicable guidance to ensure that metrics, time frames, and other information associated with planned actions are kept up to date and complete.

Recommendation: The Secretary of the Navy should assign responsibility to an entity to conduct a single, comprehensive systematic analysis of overseas surface ship maintenance delays. (Recommendation 1)

Agency: Department of Defense: Department of the Navy: Office of the Secretary
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure the designated entity conducts a comprehensive, systematic analysis to identify the underlying, interrelated causes of overseas surface ship maintenance delays. (Recommendation 2)

Agency: Department of Defense: Department of the Navy: Office of the Secretary
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should use the results of the analysis to develop a plan to address surface ship maintenance delays overseas. Such a plan should incorporate results-oriented elements, including analytically based goals, identification of risks to achieving those goals, identification of required resources and stakeholders, metrics to measure progress, and regular reporting on progress. (Recommendation 3)

Agency: Department of Defense: Department of the Navy: Office of the Secretary
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that Naval Sea Systems Command assesses and mitigates risks posed by any challenges, such as persistent delays and capacity limitations, to successful implementation of its new maintenance approach in Japan. (Recommendation 4)

Agency: Department of Defense: Department of the Navy: Office of the Secretary
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that Naval Sea Systems Command conducts analysis to include overseas maintenance requirements as part of its long-term maintenance plan to support the planned growth and readiness of the fleet. (Recommendation 5)

Agency: Department of Defense: Department of the Navy: Office of the Secretary
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Under Secretary of Defense for Acquisition and Sustainment should ensure that the Deputy Assistant Secretary of Defense for Materiel Readiness create, share, and maintain a comprehensive and up-to-date list of all DOD sharing venues (i.e., working groups), including points of contact, related to depot maintenance. (Recommendation 1)

Agency: Department of Defense: Office of the Secretary of Defense: Office of the Under Secretary of Defense for Acquisition and Sustainment
Status: Open

Comments: DOD concurred with this recommendation. In response to our report, the Deputy Assistant Secretary of Defense for Materiel Readiness will create, share, and maintain a comprehensive and up-to-date list of all DOD sharing venues related to depot maintenance with associated points of contact. The estimated completion date is August 2020. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Army should ensure that Army Materiel Command reestablish and maintain organizations dedicated to sharing materiel best practices and lessons learned, as required by Army regulations. (Recommendation 2)

Agency: Department of Defense: Department of the Army: Office of the Secretary
Status: Open

Comments: DOD concurred with this recommendation. In response to our report, the Army is working to update policies to accurately reflect current activities for capturing, preserving, and distributing lessons learned and best practices throughout the organic industrial base. The estimated completion date is no later than December 2022. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of Defense should ensure that the Undersecretary of Defense (Acquisition and Sustainment) develop and adopt a depot maintenance carryover metric that provides reliable, complete, consistent, and appropriate information. (Recommendation 1)

Agency: Department of Defense
Status: Open

Comments: In written comments on a draft of this report, DOD concurred with the recommendation. Specifically, DOD stated that the Undersecretary of Defense (Acquisition and Sustainment) and the Undersecretary of Defense (Comptroller) will coordinate with the Military Departments to promulgate regulations implementing GAO's recommendation, and collaborate to develop a new budgetary exhibit to coincide with the Fiscal Year 2022 budget estimate submission. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Army should ensure that Army Materiel Command establishes measures for its depots to track facility or equipment conditions that lead to maintenance delays. (Recommendation 1)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Army should ensure that Army Materiel Command implements tracking of the measures for identifying when facility or equipment conditions lead to maintenance delays at each Army depot. (Recommendation 2)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that Naval Sea Systems Command and the Commander, Fleet Readiness Centers establish measures for their depots to track facility or equipment conditions that lead to maintenance delays. (Recommendation 3)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that Naval Sea Systems Command and the Commander, Fleet Readiness Centers implement tracking of the measures for identifying when facility or equipment conditions lead to maintenance delays at each Navy depot. (Recommendation 4)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Air Force should ensure that Air Force Materiel Command establishes measures for its depots to track facility or equipment conditions that lead to maintenance delays. (Recommendation 5)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Air Force should ensure that Air Force Materiel Command implements tracking of the measures for identifying when facility or equipment conditions lead to maintenance delays at each Air Force depot. (Recommendation 6)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Commandant of the Marine Corps should ensure that Marine Corps Logistics Command establishes measures for its depots to track facility or equipment conditions that lead to maintenance delays. (Recommendation 7)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Commandant of the Marine Corps should ensure that Marine Corps Logistics Command implements tracking of the measures for identifying when facility or equipment conditions lead to maintenance delays at each Marine Corp depot. (Recommendation 8)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Army should ensure that Army Materiel Command incorporates in its depot optimization plan, key results-oriented elements including analytically-based goals, results-oriented metrics, identification of required resources, risks, and stakeholders, and regular reporting to decision makers on progress. (Recommendation 9)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that Commander, Fleet Readiness Centers incorporates in its depot optimization plan, key results-oriented elements including analytically-based goals, results-oriented metrics, identification of required resources, risks, and stakeholders, and regular reporting to decision makers on progress. (Recommendation 10)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Air Force should ensure that Air Force Materiel Command incorporates in its depot optimization plan, key results-oriented elements including analytically-based goals, results-oriented metrics, identification of required resources, risks, and stakeholders, and regular reporting to decision makers on progress. (Recommendation 11)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Commandant of the Marine Corps should ensure that Marine Corps Logistics Command incorporates in its depot optimization plan, key results-oriented elements including analytically-based goals, results-oriented metrics, identification of required resources, risks, and stakeholders, and regular reporting to decision makers on progress. (Recommendation 12)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of Defense should ensure that the Assistant Secretary of Defense for Sustainment develops an approach for managing service depot investments that includes management monitoring and regular reporting to decision makers and Congress on progress. (Recommendation 13)

Agency: Department of Defense
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Commandant of the Coast Guard should direct program managers to establish shore infrastructure performance goals, measures, and baselines to track the effectiveness of maintenance and repair investments and provide feedback on progress made. (Recommendation 2)

Agency: Department of Homeland Security: United States Coast Guard
Status: Open

Comments: The Coast Guard concurred with this recommendation and said it would take steps to implement it. As of April 2020, the Coast Guard continues to develop and refine its shore infrastructure measures with associated goals and estimates that it will complete these efforts in December 2020. When we confirm actions the Coast Guard has taken in response to this recommendation, we will provide updated information.

Recommendation: The Commandant of the Coast Guard should work with Congress to develop and implement a process to routinely align Coast Guard's shore infrastructure portfolio with mission needs, including by disposing of all unneeded assets. (Recommendation 3)

Agency: Department of Homeland Security: United States Coast Guard
Status: Open

Comments: The Coast Guard concurred with this recommendation and said it would take steps to implement it. As of April 2020, the Coast Guard continues work to establish a formalized process to assess current and projected operational and mission support needs to identify and recommend disposal of unneeded land, buildings, and structures. The Coast Guard anticipates completing these efforts by December 2020. When we confirm actions the Coast Guard has taken in response to this recommendation, we will provide updated information.

Recommendation: The Commandant of the Coast Guard should establish guidance for planning boards to document inputs, deliberations, and project prioritization decisions for infrastructure maintenance projects. (Recommendation 4)

Agency: Department of Homeland Security: United States Coast Guard
Status: Open

Comments: The Coast Guard concurred with this recommendation and said it would take steps to implement it. As of April 2020, the Coast Guard is reviewing its existing guidance for planning boards and expects to complete these efforts in December 2020. When we confirm actions the Coast Guard has taken in response to this recommendation, we will provide updated information.

Recommendation: The Commandant of the Coast Guard should employ models for its asset lines for predicting the outcome of investments, analyzing trade-offs, and optimizing decisions among competing investments. (Recommendation 5)

Agency: Department of Homeland Security: United States Coast Guard
Status: Open
Priority recommendation

Comments: In 2019, GAO reported that the Coast Guard generally has not employed models for predicting the outcome of maintenance investments and optimizing among competing investments, as called for in leading practices. GAO found that, in one instance, the Coast Guard used a model to optimize maintenance for its aviation pavement and, according to Coast Guard officials, found that it could save nearly $14 million by accelerating investment in this area (e.g., paving runways) sooner rather than deferring such maintenance. Coast Guard officials told GAO that such modeling could be applied within and across all of its shore infrastructure asset types, but the Coast Guard did not implement the results of this model and does not require their use. Employing models to predict the future condition and performance of facilities could potentially identify and achieve cost savings, according to leading practices. The Coast Guard concurred with GAO's recommendation that it employ models for its asset lines for predicting the outcome of investments, analyzing trade-offs, and optimizing decisions among competing investments. As of January 2020, the Coast Guard has not employed models to evaluate its asset lines. Instead, the Coast Guard reported that it is evaluating alternative models for its asset lines, and estimated that the Coast Guard will complete this analysis by December 31, 2020.

Recommendation: The Commandant of the Coast Guard should include supporting details about competing project alternatives and report trade-offs in Congressional budget requests and related reports. (Recommendation 6)

Agency: Department of Homeland Security: United States Coast Guard
Status: Open

Comments: In February 2019, GAO reported that Coast Guard budget requests did not provide Congress with accurate information about its funding needs. Specifically, we found that the Coast Guard did not meet this leading practice as its budget requests (1) have not clearly identified funding allotted for routine shore infrastructure maintenance needs, and (2) have not generally addressed deferred maintenance and repair deficiencies, resulting in increases to its backlogs. Specifically, GAO found that budget requests related to shore infrastructure for fiscal years 2012 through 2019 did not provide Congress with required and complete information, as previously noted, necessary to inform decision-makers of the risks posed by untimely investments in maintenance and repair backlogs. GAO also reported that the Coast Guard annual Unfunded Priorities List does not clearly articulate prioritization decisions, including information about trade-offs among competing project alternatives, as well as the impacts on missions conducted from shore facilities in disrepair that had not been prioritized in previous years, or is it aligned with its requirements-based budget targets for shore infrastructure. DHS concurred with GAO's recommendation that the Coast Guard include supporting details about competing project alternatives and report trade-offs in Congressional budget requests and related reports. In its August 2019 180-day letter response, DHS stated that the Coast Guard Office of Budget and Programs will include additional information in the future Unfunded Priorities Lists. However, when the Coast Guard released its 2020 Unfunded Priorities List to Congress it did not contain additional details on competing priorities. GAO will continue to monitor Coast Guard budget requests and related reports, including the Unfunded Priorities Lists, for additional supporting details about competing project alternatives and trade-offs

Recommendation: The Secretary of the Army, in conjunction with the U.S. Army Materiel Command, should assess the effectiveness of the Army depots' hiring, training, and retention programs. (Recommendation 1)

Agency: Department of Defense
Status: Open

Comments: The Army concurred with our recommendation. In February 2020 the Army provided GAO with an outline of a corrective action plan that identified how the Army plans to address our recommendation. Some of the planned milestone dates for these action items occur in fiscal year 2021. As of June 30, 2020 we consider the actions the Army taking to address our rec as ongoing, and will follow up with the Army later this year or early 2021 to obtain a status update on this rec and attempt to close the rec.

Recommendation: The Secretary of the Navy, in conjunction with the Naval Sea Systems Command and Naval Air Systems Command, should assess the effectiveness of the Navy's shipyards' and fleet readiness centers' hiring, training, and retention programs. (Recommendation 2)

Agency: Department of Defense
Status: Open

Comments: The Navy concurred with our recommendation. In response to our recommendation that the Secretary of the Navy, in conjunction with the Naval Sea Systems Command and Naval Air Systems Command, should assess the effectiveness of the Navy's shipyards' and fleet readiness centers' hiring, training, and retention programs; the Navy is in the process of collecting information to assess the effectiveness of these programs and considers these efforts ongoing.

Recommendation: The Commandant of the Marine Corps, in conjunction with the Marine Corps Logistics Command, should assess the effectiveness of the Marine Corps depots' hiring, training, and retention programs. (Recommendation 3)

Agency: Department of Defense
Status: Open

Comments: The Marine Corps concurred with our recommendation. In December of 2019 we began working with the Department of Defense, including each of the Military Service Components to determine how each component would address our recommendation. We successfully heard back from each component except the Marine Corps. As of June 30, 2020 GAO is still engaging with the Department of Defense and the Marine Corps to obtain a status update on the actions taken by the Marine Corps to address our recommendation. GAO will continue following up on this recommendation in 2020 and during the 2021 fiscal year to determine how the Marine Corps has addressed our recommendation so we can close this recommendation if possible.

Recommendation: The Secretary of the Air Force, in conjunction with the Air Force Materiel Command, should assess the effectiveness of the Air Force air logistics complexes' hiring, training, and retention programs. (Recommendation 4)

Agency: Department of Defense
Status: Open

Comments: The Air Force concurred with our recommendation. In December 2019 the Air Force provided GAO with an outline of a corrective action plan that identified how the Air Force plans to address our recommendation. Many of the planned milestone dates for these action items occur in fiscal year 2021. As of June 30, 2020 we consider the actions the Air Force is taking to address our rec as ongoing and will follow up with the Air Force later this year or early 2021 to obtain a status update on this rec and attempt to close the rec.

Recommendation: The Under Secretary of Defense for Acquisition, Technology, and Logistics, in coordination with the F-35 Program Executive Officer, should re-examine the metrics that it will use to hold the contractor accountable under the fixed-price, performance-based contracts to ensure that such metrics are objectively measurable, are fully reflective of processes over which the contractor has control, and drive desired behaviors by all stakeholders. (Recommendation 2)

Agency: Department of Defense
Status: Open
Priority recommendation

Comments: DOD concurred with this recommendation. As of December 2019, documentation provided by DOD stated that it had established a joint working group to assess the feasibility of and examine options for DOD's planned 5-year performance-based logistics contract. A DOD official said that this group is also working to identify appropriate metrics to hold the contractor accountable under a potential long-term performance-based contract. DOD has not provided us with a timeline of when the working group's assessment will be complete. We will continue to monitor DOD's efforts to re-examine metrics to ensure that they are objectively measureable, fully reflective of processes over which the contractor has control, and drive desired behaviors by all stakeholders.

Recommendation: The Under Secretary of Defense for Acquisition, Technology, and Logistics, in coordination with the F-35 Program Executive Officer, should, prior to entering into multi-year, fixed-price, performance-based contracts, ensure that DOD has sufficient knowledge of the actual costs of sustainment and technical characteristics of the aircraft after baseline development is complete and the system reaches maturity. (Recommendation 3)

Agency: Department of Defense
Status: Open
Priority recommendation

Comments: DOD concurred with this recommendation. As of December 2019, documentation provided by DOD stated that it had established a joint working group to assess the feasibility of and examine options for DOD's planned 5-year performance-based logistics (PBL) contract. As a product of this assessment, DOD expects that the department will be able to outline what level of knowledge is required of the actual costs of sustainment and technical characteristics of the aircraft in order to enter into a PBL sustainment construct. DOD has not provided us with a timeline of when the working group's assessment will be complete. We will continue to monitor DOD's efforts in this area.

Recommendation: To increase department-wide supply chain efficiencies and effectiveness in support of maintenance at the Army and Marine Corps depots and Navy shipyards, the Secretary of Defense should direct the Assistant Secretary of Defense for Logistics and Materiel Readiness, in conjunction with the Director, Defense Logistics Agency, and the Secretaries of the Army and Navy and the Commandant of the Marine Corps to assess through a comprehensive business case analysis-drawing on lessons learned from previous efforts-the costs and benefits of DLA managing the retail supply, storage, and distribution functions at the Army and Marine Corps depots and Navy shipyards.

Agency: Department of Defense
Status: Open

Comments: DOD concurred with our recommendation. As of August 2018, DOD had designated the transfer of these retail functions as an operating priority and identified it as a key reform effort within logistics in the department. The Marine Corps has conducted its analysis and decided to transition additional supply, storage, and distribution functions to the Defense Logistics Agency (DLA) over a 4-year period, with all implementation activities scheduled to be complete by 2022. The Army continues to analyze requirements for the full transition of supply, storage, and distribution functions to DLA with final decisions to be made in late 2018. Lastly, the Navy and DLA are working on a strategic memorandum of understanding to guide decision on the role of DLA at the Navy shipyards, according to a senior DOD official. Without the Army and Navy finalizing its business case analyses, decision makers will not be positioned to make cost-effective decisions regarding supply operations at military depots.

Recommendation: To increase department-wide supply chain efficiencies and effectiveness in support of maintenance at the Army and Marine Corps depots and Navy shipyards, the Secretary of Defense should direct the Assistant Secretary of Defense for Logistics and Materiel Readiness, in conjunction with the Director, Defense Logistics Agency, and the Secretaries of the Army and Navy and the Commandant of the Marine Corps to use the analysis to make a decision on the degree to which DLA should manage these functions at the Army and Marine Corps depots and Navy shipyards.

Agency: Department of Defense
Status: Open

Comments: DOD concurred with our recommendation. As of August 2018, DOD had designated the transfer of these retail functions as an operating priority and identified it as a key reform effort within logistics in the department. The Marine Corps has conducted its analysis and decided to transition additional supply, storage, and distribution functions to the Defense Logistics Agency (DLA) over a 4-year period, with all implementation activities scheduled to be completed by 2022. However, the Army and Navy have not made any decisions regarding the additional transfer of supply, storage and distribution functions to DLA. Without the Army and Navy making decisions based on business case analyses on the degree to which additional supply, storage, and distribution functions will transfer to DLA, DOD will not be ensured that it is operating its supply operations at military depots in a cost-effective manner.

Recommendation: To improve the efficiency and effectiveness of supply and maintenance operations, in accordance with DOD guidance, the Secretary of Defense should direct the Assistant Secretary of Defense for Logistics and Materiel Readiness, in conjunction with the Director, Defense Logistics Agency, and the Secretaries of the Army, Navy, and Air Force and the Commandant of the Marine Corps to develop and implement metrics that measure the accuracy of planning factors, such as the schedule, bill of materials, and replacement factors, used for depot maintenance.

Agency: Department of Defense
Status: Open

Comments: DOD concurred with our recommendation. As of August 2018, DOD has begun to identify metrics that measure the accuracy of planning factors used for depot maintenance. However, these metrics are not scheduled to be implemented fully implemented in December 2018.

Recommendation: To improve the efficiency and effectiveness of supply and maintenance operations, in accordance with DOD guidance, the Secretary of Defense should direct the Assistant Secretary of Defense for Logistics and Materiel Readiness, in conjunction with the Director, Defense Logistics Agency, and the Secretaries of the Army, Navy, and Air Force and the Commandant of the Marine Corps to take action, as appropriate and necessary, to resolve any issues identified through measuring the accuracy of planning inputs in an effort to improve supply and depot maintenance operations.

Agency: Department of Defense
Status: Open

Comments: DOD concurred with our recommendation. As of August 2018, DOD has begun to identify metrics that measure the accuracy of planning factors used for depot maintenance. However, these metrics are not scheduled to be implemented fully implemented in December 2018. Thus, no actions have been taken to resolve any identified issues based on the results of the metrics.

Recommendation: To be able to assess the cost-effectiveness of supply and depot maintenance operations, in accordance with DOD supply chain management guidance, the Secretary of Defense should direct the Assistant Secretary of Defense for Logistics and Materiel Readiness, in conjunction with the Director, Defense Logistics Agency, the Secretaries of the Army, Navy, and the Air Force, and the Commandant of the Marine Corps to take steps to develop and implement metrics, to the extent feasible, to measure and track disruption costs created by the lack of parts at depot maintenance industrial sites by, for example, establishing a team of supply and depot maintenance experts from DLA and the services to assess potential data sources, approaches, and methods.

Agency: Department of Defense
Status: Open

Comments: DOD concurred with our recommendation. As of August 2018, DOD has begun to develop metrics that measure and track disruption costs created by the lack of parts at depot maintenance industrial sites. However, these metrics are not scheduled to be implemented until October 2018.

Recommendation: To be able to assess the cost-effectiveness of supply and depot maintenance operations, in accordance with DOD supply chain management guidance, the Secretary of Defense should direct the Assistant Secretary of Defense for Logistics and Materiel Readiness, in conjunction with the Director, Defense Logistics Agency, the Secretaries of the Army, Navy, and the Air Force, and the Commandant of the Marine Corps to take action, as appropriate, to address any inefficiencies identified by the disruption cost metrics in supply and depot maintenance operations.

Agency: Department of Defense
Status: Open

Comments: DOD concurred with our recommendation. As of August 2018, DOD has begun to develop metrics that measure and track disruption costs created by the lack of parts at depot maintenance industrial sites. However, these metrics are not scheduled to be implemented until October 2018. Thus, no actions have been taken to resolve any identified issues based on the results of the metrics.