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GAO-15-569R 1 (2015-06-22)

handle is hein.gao/gaobaajac0001 and id is 1 raw text is: GO U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 June 22, 2015 The Honorable John McCain Chairman The Honorable Jack Reed Ranking Member Committee on Armed Services United States Senate Defense Logistics: Marine Corps and Army Reset Liability Estimates Since 2001, the Marine Corps and Army have spent billions of dollars to reset equipment, including equipment returning from operations in Iraq and Afghanistan. Reset refers to the repair, recapitalization, or replacement of equipment.1 Reset can include depot (sustainment) and field-level maintenance and supply activities that restore and enhance combat capability to equipment used in combat operations. The Marine Corps and Army have identified a multibillion dollar reset liability as they seek to complete their reset efforts.2 In April 2014, Marine Corps leadership stated that the Marine Corps' reset liability declined from an estimated $3.2 billion to a remaining $1.0 billion as the Marine Corps makes progress in completing reset.3 At that time, the Army projected a need for just over $6.0 billion for reset.4 As of February 2015, Marine Corps officials anticipate they will complete their reset efforts in fiscal year 2017. Army reset is expected to continue 2 to 3 years after the end of major overseas operations; consequently, there is not a specific end date for Army reset. Service officials have stated that inadequate reset funding can directly decrease military readiness. For example, in April 2014, a senior Army official described a fully funded Army reset program as critical to ensuring that equipment worn and damaged by prolonged conflict is 1A January 2007 Department of Defense (DOD) memorandum regarding the use of consistent terms in congressional testimony defined reset, in part, as actions taken to restore units to a desired level of combat capability commensurate with the units' future mission. Deputy Under Secretary of Defense for Logistics and Materiel Readiness memorandum, Resetting the Force (RESET) and Depot Maintenance Capacity and Utilization (Jan. 26, 2007). 2For the purposes of this report, reset liability estimates are the amount of funding that may be required by a service to return its equipment to combat-ready condition. 3This is the most recent Marine Corps reset liability estimate that is available. Statement of General John M. Paxton Jr., Assistant Commandant, United States Marine Corps, before the House Committee on Armed Services, Subcommittee on Readiness, 113th Cong., 2nd sess., April 10, 2014. Marine Corps officials explained to us that the $3.2 billion reset liability estimate was for fiscal years 2013 through 2016 and that the revised $1.0 billion reset liability estimate was for the fiscal years 2015 and 2016 timeframe. 4This is the most recent Army reset liability estimate that is available. Statement of General John F. Campbell, Vice Chief of Staff, United States Army, before the House Committee on Armed Services, Subcommittee on Readiness, 113th Cong., 2nd sess., April 10, 2014. GAO-15-569R Defense Logistics Page 1

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