DOD Manufacturing Arsenals: Actions Needed to Identify and Sustain Critical Capabilities

• Main Authors: Ayers, Johana, Junek, Larry J, Camarillo, Yecenia C, Carr, Timothy J, Donahue, Patricia F, Grant, Cynthia L, Landesman, Joanne, Lesser, Amie, Lopez, Felicia M, Mardis, Oscar W
• Format: Report
• Language: English
• Subjects: AMC(ARMY MATERIEL COMMAND); ASA ALT(ASSISTANT SECRETARY OF THE ARMY FOR ACQUISITION LOGISTICS AND TECHNOLOGY); COSTS; CRITICAL CAPABILITIES; DEPARTMENT OF DEFENSE; DLA(DEFENSE LOGISTICS AGENCY); DOD MANUFACTURING ARSENALS; DOD(DEPARTMENT OF DEFENSE); GAO REPORTS; LEGISLATION; Logistics, Military Facilities and Supplies; MANUFACTURING; Mfg & Industrial Eng & Control of Product Sys; MILITARY CAPABILITIES; MILITARY FACILITIES; ODASD MPP(OFFICE OF THE DEPUTY ASSISTANT SECRETARY OF DEFENSE FOR MAINTENANCE POLICY AND PROGRAMS); OPERATING EXPENSES; ORGANIZATIONAL STRUCTURE; OSD(OFFICE OF THE SECRETARY OF DEFENSE); PLANNING; PROJECT MANAGEMENT; REPORTING; STRATEGY

DOD s three manufacturing arsenals provide manufacturing, supply, and technical support services for the military services and allies during national emergencies and contingency operations. The Fiscal Year 2014 NDAA required DOD to report to Congress on its arsenals and included a provision for GAO to review DOD s report. This report assesses (1) actions DOD has taken to assign work to the manufacturing arsenals to generate sufficient revenue to recover their operating expenses, (2) the extent to which DOD is strategically positioned to sustain the manufacturing arsenals critical capabilities, and (3) the extent to which DOD s September 2014 report addresses statutory reporting elements and is consistent with relevant research presentation standards for a defense research study. To conduct this review, GAO analyzed documentation, visited the arsenals, and interviewed relevant DOD officials. GAO assessed DOD s September 2014 report against the statutory elements and generally accepted research standards. GAO recommends that DOD issue implementing guidance for make-orbuy analyses; identify fundamental elements for implementing its strategic plan; and develop and implement its process for identifying critical capabilities and the minimum workload level needed to sustain them. DOD concurred with the recommendations but disagreed with some statements in the report. GAO believes the statements are accurate, as discussed in the report. Report to Congressional Addressees