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Since 1990, we have identified Department of Defense (DOD) inventory management as a high-risk area because levels of inventory were too high and management systems and procedures were ineffective. This report assesses the Department's efforts to implement the maintenance, repair, and operations prime vendor program. Specifically, we determined (1) how much the program is being used and how selected installations are using the program and (2) whether DOD has a mechanism for evaluating the program's effectiveness relative to other procurement alternatives and for identifying and addressing implementation obstacles. We examined the implementation of the prime vendor program at 11 military installations, and although the results of this analysis cannot be extrapolated to the entire program, they provide first-hand accounts that illustrate the actual impact of the program and highlight accomplishments and opportunities for improvement.