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This report discusses financial management and logistics management issues relating to the effectiveness and efficiency of the Department of Defense's (DOD) operations. Specifically, it will focus on the operations of DOD'S working capital funds, which collect and disburse over $65 billion annually, and on DOD'S management of the $13 billion depot maintenance program. It is important to note that these areas fall within defense financial management and infrastructure activities, 2 of the 24 areas we identified as high-risk areas within the federal government. These issues have significant impact on the efficiency and effectiveness of how DOD spends its operations and maintenance funds. DOD has consistently experienced losses in the operations of various working capital funds, including the depot maintenance activity group, and has had to request additional funding to support their operations. This issue has been an area of concern to this subcommittee and other congressional committees.
The U.S. Government Accountability Office (GAO) is an independent agency that works for Congress. The GAO watches over Congress, and investigates how the federal government spends taxpayers dollars. The Comptroller General of the United States is the leader of the GAO, and is appointed to a 15-year term by the U.S. President. The GAO wants to support Congress, while at the same time doing right by the citizens of the United States. They audit, investigate, perform analyses, issue legal decisions and report anything that the government is doing. This is one of their reports.
The U.S. Government Accountability Office (GAO) is an independent agency that works for Congress. The GAO watches over Congress, and investigates how the federal government spends taxpayers dollars. The Comptroller General of the United States is the leader of the GAO, and is appointed to a 15-year term by the U.S. President. The GAO wants to support Congress, while at the same time doing right by the citizens of the United States. They audit, investigate, perform analyses, issue legal decisions and report anything that the government is doing. This is one of their reports.
The report discusses the Department of Defense's (DOD) (1) plans for eliminating costly depot maintenance excess capacity, (2) progress in finalizing a new depot workload allocation policy, (3) current approach for allocating maintenance workloads for new and existing systems, and (4) estimates that billions can be saved by outsourcing depot maintenance.
Testimony of David R. Warren, Director, Defense Management Issues, National Security & International Affairs Division, GAO, before the Subcommittee on Military Readiness, Committee on National Security, U.S. House of Representatives on March 18, 1997. He discusses the Dept. of Defense's: (1) plans for eliminating costly depot maintenance excess capacity; (2) progress in finalizing a new depot workload allocation policy; (3) current approach for allocating maintenance workloads for new & existing systems; & (4) estimates that billions can be saved by outsourcing depot maintenance.
About 40,000 civilians at Marine Corps, Navy, and Air Force depots maintain weapon systems and equipment. During FY 2020, COVID-19 exacerbated challenges the depots already faced, such as having too few people or materials to finish work. The depots responded to COVID-19 by protecting personnel, shifting schedules, or pausing operations. DOD also acted to keep the funds used to operate depots solvent, despite reduced depot revenue. Our 9 recommendations include that DOD provide guidance to depot personnel before a crisis, update depot contingency plans based on COVID-19 lessons learned, and publish its Working Capital Fund cash management policy.