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This letter transmits the briefing in response to House Report No. 110-652, which accompanied the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (Pub. L. No. 110-417). The House report directed the Secretary of the Army to submit a report on Logistics Modernization Program (LMP) implementation at Army depots and the expected end-state capabilities of LMP to the Senate Committee on Armed Services, the House Committee on Armed Services by January 31, 2009.
" IUID technology allows DOD to assign a unique number to an item and use that number to manage that item in a variety of logistics processes. In 2003, DOD began implementation of IUID and has estimated that it could improve the accountability and maintenance of its property and equipment and save from $3 billion to $5 billion per year. Also, integrating and sharing UII data across DOD's enterprise information systems could enable DOD to track equipment as it moves between its components. GAO evaluated the extent to which DOD has (1) incorporated key elements of best management practices into its framework for IUID implementation, (2) marked items with IUID labels, and (3) developed the capability to share UII data across DOD in its enterprise information systems. GAO reviewed documents, interviewed cognizant officials, and reviewed DOD and GAO key practices for its analysis. "
The Department of Defense (DOD) reports data about the operational readiness of its forces. In 1999, Congress directed DOD to create a comprehensive readiness system with timely, objective, and accurate data. In response, DOD started to develop the Defense Readiness Reporting System (DRRS). After 7 years, DOD has incrementally fielded some capabilities, and, through fiscal year 2008, reported obligating about $96.5 million. GAO was asked to review the program including the extent that DOD has (1) effectively managed and overseen DRRS acquisition and deployment and (2) implemented features of DRRS consistent with legislative requirements and DOD guidance. GAO compared DRRS acquisition disciplines, such as requirements development, test management, and DRRS oversight activities, to DOD and related guidance, and reviewed the system's current and intended capabilities relative to legislative requirements and DOD guidance. We did not evaluate DOD's overall ability to assess force readiness or the extent that readiness data reflects capabilities, vulnerabilities, or performance issues. GAO is making recommendations to address the risks facing DOD in acquiring and developing DRRS and increase the chance of success. DOD agreed or partially agreed with three of our eight recommendations, and disagreed with the remaining five because it stated that it was already taking actions in these areas.