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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.
Reviews selected workforce issues at the Army's maintenance depots and arsenals, particularly on the depot in Corpus Christi, Texas. It addresses (1) the Army's basis for personnel reductions planned at its depots during FY1998-99; (2) the Army's progress in developing an automated system for making maintenance depot staffing decisions based on workload estimates; (3) factors that may impact the Army's ability to improve the cost-effectiveness of its maintenance depot's programs and operations; and (4) workload trends, staffing, and productivity issues at the Army's manufacturing arsenals. Charts and tables.