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GAO-10-172R 1 (2009-11-04)

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        Acco ntab|llty I Integrity I Rehahility
United States Government Accountability Office
Washington, DC 20548




   November 4, 2009

   Congressional Committees


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

   The Department of Defense (DOD) prepositions equipment at strategic locations around the
   world to enable it 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. Through their individual programs, each of the
   military services maintains preconfigured groups of related materiel and equipment, known as
   sets, in geographic locations around the world. These prepositioned materiel and equipment
   sets have played an important role in supporting ongoing operations in Iraq and Afghanistan.
   However, sustained operations in Iraq and Afghanistan have taken a toll on the condition and
   readiness of military equipment. Over the last few years, we have identified a number of ongoing
   and long-term challenges regarding DOD's prepositioned stocks In 2008 we testified that some
   of the Army's prepositioned stocks have been depleted and that it was unclear when those
   critical reserve stocks would be replenished or how much the total cost to do so would be.
   Although the services have estimated the cost and time frame to replenish their stocks in DOD's
   report to Congress, the services are currently reviewing their prepositioning programs to address
   new requirements to meet future needs. DOD has reported to Congress that the services are
   committed to resetting4 prepositioned materiel but must balance these resetting efforts with the



   1 While the Army, Marine Corps, and Navy use the term Prepositioned Stock program, the Air Force uses the term
   War Reserve Materiel program. For purposes of this report, we use the term prepositioned stock program or
   prepositioned stocks for all services.
   2 GAO, Defense Logistics: Better Management and Oversight ofPrepositioning Programs Needed to Reduce Risk
   and Improve Future Programs, GAO-05-427 (Washington, D.C.: Sept. 6, 2005); GAO, Defense Logistics: Improved
   Oversight and Increased Coordination Needed to Ensure Viability of the Army's Prepositioning Strategy, GAO-07-
   144 (Washington, D.C.: Feb. 15, 2007); GAO, Defense Logistics: Army and Marine Corps Cannot Be Assured That
   Equipment Reset Strategies Will Sustain Equipment Availability While Meeting Ongoing Operational Requirements,
   GAO-07-814 (Washington D.C.: Sept. 19, 2007); GAO, Defense Logistics: Army Has Not Fully Planned or
   Budgeted for the Reconstitution ofits Afloat Prepositioned Stocks, GAO-08-257R (Washington D.C.: Feb. 8, 2008);
   GAO, Military Readiness: Impact of Current Operations and Actions Needed to Rebuild Readiness of U.S. Ground
   Forces, GAO-08-497T (Washington, D.C.: Feb. 14, 2008); 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); GAO, High Risk Series An Update, GAO-09-271 (Washington, D.C.: Jan. 2009).
   ' GAO-08-497T, GAO-08-669T.
   Reset is defined as actions taken to restore units to a desired level of combat capability commensurate with the
   units' future mission. It includes the repair, replacement, or recapitalization of equipment that was destroyed,
   damaged, stressed, or worn out beyond economic repair due to combat operations.


GAO-10-172R Defense Logistics


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