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GAO-09-147R 1 (2008-12-15)

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          GOffice of the Comptroller General
Accountability * Integrity * Reliability                    of the United States
United States Government Accountability Office
Washington, DC 20548





    December 15, 2008

    Congressional Committees

    Subject: Defense Logistics: Department of Defense's Annual Report on the Status of
    Prepositioned Materiel and Equipment Can Be Enhanced to Better Inform Congress

    The Department of Defense (DOD) prepositions equipment at strategic locations around
    the world in order to field combat-ready forces in days, rather than the weeks it would
    take if equipment had to be moved from the United States to the locations of conflicts.
    DOD's prepositioned stock programs support the National Military Strategy and are an
    important part of its overall strategic mobility framework. Prepositioned materiel and
    equipment have played an important role in supporting ongoing operations in Iraq and
    Afghanistan. However, sustained continuing operations in Iraq and Afghanistan have
    taken a toll on the condition and readiness of military equipment. In April 2008 we
    testified that it was unclear when these critical reserve stocks would be reconstituted or
    how much the total cost would be.' The Army and Marine Corps face a number of
    ongoing and long-term challenges that will affect both the timing and the cost of
    equipment repair and replacement-particularly to its prepositioned stocks.2 DOD has
    reported to Congress that the military services are committed to resetting prepositioned
    materiel but must balance its efforts within the priorities of reorganization of those
    prepositioned capabilities and changes in overseas military presence. In June 2008, DOD
    issued an instruction on the War Reserve Materiel Policy. In the instruction, DOD
    established a Global Prepositioned Materiel Capabilities Working Group to, among other
    things, address joint issues concerning war reserve risk assessments provided by the
    military departments and the Defense Logistics Agency, initiate programs as needed, and
    make recommendations for war reserves that balance resources against operational
    risk.4




    'GAO, Force Structure: Restructuring and Rebuilding the Army Will Cost Billions of Dollars for
    Equipment but the Total Cost Is Uncertain, GAO-08-669T (Washington, D.C.: Apr. 10, 2008).
    2GAO, Defense Logistics: Preliminary Observations on Equipment Reset Challenges and Issues for the
    Army and Marine Corps, GAO-06-604T (Washington, D.C.: Mar. 30, 2006); GAO, Defense Logistics:
    Preliminary Observations on the Army's Implementation of Its Equipment Reset Strategies, GAO-07-
    439T (Washington, D.C.: Jan. 31, 2007).
    3DOD, Report on Department of Defense Programs for Prepositioning of Materiel and Equipment:
    Interim Submission: Way Ahead to Comprehensive Review and Discussion of Current Service
    Prepositioning Strategies (Sept. 19, 2007).
    4Department of Defense Instruction 3110.06, War Reserve Materiel (WRM) Policy (June 23, 2008).


GAO-09-147R Defense Logistics

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