Logistics operations at the Pentagon still need work, GAO says

While progress has been made, logistics problems could hamper the Defense Department's efforts in future conflicts, auditors found.

Further actions are needed to continue improvements to the Defense Department's supply distribution operations, according to a report from government auditors.

A Government Accountability Office report (GAO-05-775) released last week found that while progress has been made, the department's ability to improve the system that involves several Defense organizations is obstructed by a lack of accountability and centralized authority. The current plan for making over the department's logistics does not present a clear vision to harmonize future improvement efforts, the report states.

The 40-page report, requested by Reps. Joel Hefley, R-Colo., and Solomon P. Ortiz, D-Texas, leaders of the House Armed Services Subcommittee on Readiness, found that the U.S. Transportation Command directive to define its new responsibility as the "Distribution Process Owner" was never approved because of a disagreement with the Office of the Secretary of Defense over Secretary Donald Rumsfeld's intent in creating the DPO.

According to the report, the Defense Logistics Executive believed the DPO's role was consultative and the Defense Logistics Executive was the entity responsible for transforming the department's logistics.

GAO investigators have testified on Capitol Hill, according to the report, regarding the Pentagon's tendency to fail to assign performance accountability to specific organizations or persons with the authority to complete the job.

The DPO's responsibilities overlap with other Defense logistics organizations, and the conflicts made GAO unsure of the Pentagon's ability to deal with future conflicts in a timely manner because of logistical challenges.

"Until these issues are resolved, [the Defense Department] has little assurance that warfighters in future conflicts will have more effective and timely logistics support," wrote William M. Solis, director of the GAO's Defense Capabilities and Management section.

GAO said that problems resulting from the department's vast logistical challenges were apparent during the first Gulf War, and recent studies by GAO and other groups have found similar supply problems during the current conflict in Iraq.

The Pentagon has been on the GAO's high-risk list for its supply chain and inventory management since 1990.

In a response to the report, Pentagon officials disagreed with GAO's recommendation that Rumsfeld issue a directive clarifying the responsibilities and authority between the DPO and the DLA, saying it would be unnecessary. Defense officials did agree that improvements could be made in the department's logistics transformation plan and the funding priorities for new communications and tracking systems should be examined by the Army Secretary.