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GAO-17-530R 1 (2017-06-09)

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GAOU.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548



June 9, 2017


Congressional Committees

Military Readiness: DOD Has Not Incorporated Leading Practices of a Strategic
Management Planning Framework in Retrograde and Reset Guidance

Following operations in Iraq and Afghanistan, the Department of Defense (DOD) is in the
process of reconstituting, retrograding, and resetting forces to a desired level of combat
effectiveness in line with current mission requirements and available resources. Reconstitution
is a broad term that generally refers to the process of making a unit or activity available for
operational commitment again after a contingency or surge operation. It includes such planning
factors as maintenance of equipment, training, and an examination of the effect of operations on
personnel and on attrition rates. Retrograde refers to the movement of non-unit equipment and
materiel from a forward location to a reset program or to another directed area of operations.
Reset refers to a set of actions to restore equipment to a desired level of combat capability
commensurate with a unit's future mission. It includes maintenance and supply activities that
restore and enhance combat capability to unit and pre-positioned equipment that was
destroyed, damaged, stressed, or worn out beyond economic repair during combat operations
by repairing or rebuilding it or by procuring replacement equipment. In fiscal year 2016, DOD
identified $10.1 billion in overseas contingency operations funding related to equipment reset
and readiness and requested an additional $9.5 billion for reset and readiness in overseas
contingency operations funding for fiscal year 2017.1

Section 324 of the National Defense Authorization Act (NDAA) for Fiscal Year 2014 required
DOD to establish a policy regarding the retrograde, reconstitution, and replacement of units and
materiel used to support overseas contingency operations and to submit a plan for
implementation of the policy within 90 days of the enactment of the NDAA. The act required
DOD to submit annual updates for the next 3 years on its progress toward meeting the goals of
the plan. The act also included a provision for us to review and report on DOD's policy and
implementation plan and its annual updates.2 In May 2016, we completed our initial review of
DOD's policy and implementation plan and its first annual update, issued in November 2014 and
April 2015 respectively.3 We recommended that (1) DOD establish a strategic policy that
incorporates key elements of leading practices for sound strategic management planning to
inform the military services' plans for retrograde and reset, (2) DOD develop and require the use

'Office of the Under Secretary of Defense (Comptroller), United States Department of Defense Fiscal Year 2017
Budget Request Overview: Overseas Contingency Operations Budget Amendment (Nov. 2016).
2See Pub. L. No. 113-66, § 324 (2013).
3GAO, Military Readiness: DOD Needs to Incorporate Elements of a Strategic Management Planning Framework into
Retrograde and Reset Guidance, GAO-1 6-414 (Washington, D.C.: May 13, 2016). We reported that since DOD and
the military services do not track reconstitution as a separate activity, the focus of the report was on retrograde and
reset activities. According to service officials, the parts of reconstitution that include personnel and training costs and
efforts are integrated into each service's force generation model and are not separately tracked like retrograde and
reset.


GAO-17-530R Military Readiness


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