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GAO-12-916R 1 (2012-09-20)

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            GAO
            Acontblty * integrity* Reliability
United States Government Accountability Office
Washington, DC 20548



            September 20, 2012

            Congressional Committees

            Subject: Prepositioned Materiel and Equipment: DOD Would Benefit from Developing
            Strategic Guidance and Improving Joint Oversight

            The Department of Defense (DOD) positions materiel and 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 location of a military
            conflict. In addition, DOD uses prepositioned materiel and equipment to support a variety of
            needs including security cooperation activities, multilateral training exercises abroad,
            humanitarian assistance, and disaster relief. Fiscal challenges require DOD to carefully
            balance the investment in prepositioned materiel and equipment to achieve both national
            military objectives and other DOD priorities. Prepositioned materiel and equipment played
            an important role in operations in Iraq and Afghanistan. However, sustained operations have
            taken a toll on the condition and readiness of military materiel and equipment. DOD has
            reported to Congress that the military services are committed to reconstituting prepositioned
            materiel and equipment but must balance these efforts with the department's other priorities,
            such as restructuring capabilities within its prepositioned materiel and equipment and
            changes in its overseas military presence. For example, DOD issued a new defense
            strategy in January 20122 that discusses the impending drawdown in Afghanistan and a
            future emphasis on the Asia Pacific region, which are likely to have implications for
            prepositioned materiel and equipment.

            Section 2229a of Title 10 of the United States Code requires DOD to report annually to the
            congressional defense committees on the status of prepositioned stocks as of the end of the
            fiscal year that precedes the fiscal year during which the report is submitted.3 Reports are to
            be submitted no later than the date of the submission of the President's budget request for a
            given fiscal year. The reporting requirement was established by section 352 of the National
            Defense Authorization Act for Fiscal Year 2008, and was amended by section 341 of the
            National Defense Authorization Act (NDAA) for Fiscal Year 2012, which created additional
            reporting requirements. Prior to the enactment of the National Defense Authorization Act for
            2012, DOD's reports were required to address the following six elements:



            1DOD uses the terms, prepositioned materiel and equipment and prepositioned stocks interchangeably in its
            report for 10 U.S.C. §2229a. Thus, at times in this report, we refer to prepositioned materiel and equipment as
            prepositioned stocks.
            2DOD, Sustaining U.S. Global Leadership: Priorities for 21st Century Defense, January 2012, The White House.
            (Washington, D.C.: January 3, 2012).
            310 U.S.C. §2229a, as established by Pub. L. No. 110-181, §352 (2008) and amended by Pub. L. No. 112-81,
            §341 (2011).


GAO-12-916R Prepositioned Materiel and Equipment

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