For more details of our findings,  recommendations, and the status of actions taken by DOD relating to  DOD’s management of SRC I ammunition, see appendix IV. Military Services Have Maintained Accountability of SRC I Ammunition at Sampled Locations, but Gaps Exist in Some Service-Level Guidance and Procedures for How SRC I Ammunition Is Accounted for Across Locations

The military services have maintained accountability of SRC I ammunition  at 11 sampled locations in the continental United States; however, we  identified gaps in some service-level guidance and procedures for how  SRC I ammunition is accounted for across locations. Further, during our review, we identified instances in which the Navy and  Army had taken actions to enhance the accountability of their physical  inventories. The department  concurred and reissued policy in 2000 to require DOD components to  track and conduct physical inventories of SRC I ammunition by serial  number. However, if the Air Force does not revise  guidance to clarify that accountability for all SRC I ammunition items in  the Air Force’s custody—regardless of ownership—should be maintained  in the Air Force’s system of record, both the Air Force and the owning  service will lack a record of receipt and management of the SRC I  ammunition while at the Air Force location; also the owning service will  not have full assurance that accountability was maintained. Army Depot and Marine Corps Guidance Do Not Specify a Time Frame for Receipting Shipments of SRC I Ammunition

We found that the military services generally recorded shipment and  receipt of SRC I ammunition in their accountability systems; however, we  found that existing Army depot and Marine Corps guidance do not specify  a time frame for receipting shipments of SRC I ammunition. In a non-generalizable sample of 104 shipments that we reviewed, we  found the record of shipment in the shipper’s accountability system. As identified in table 3, 12 of 21 shipments to Army depots  and 5 of 30 shipments to Marine Corps locations were receipted more  than 2 business days after arrival. The Military Services Have Not Consistently Ensured Timely, Complete, and Accurate Information to Maintain Full Visibility of SRC I Ammunition

The military services have not consistently ensured timely, complete, and  accurate information to maintain full visibility of SRC I ammunition in the  continental United States. Data provided by the  Military Surface Deployment and Distribution Command showed that  information about 93 of 1,008 shipments identified as containing SRC  I items between November 1, 2013, and April 30, 2015, were not in  DTTS at the time of carrier departure. Conclusions

SRC I ammunition is treated as a higher risk than other conventional  ammunition and serves as a potential threat if it were obtained and used  by unauthorized individuals or groups. Until the Military Surface Deployment and Distribution  Command and the military services collaboratively determine the specific  information required for the military services to ensure timely data entry  into DTTS, and the military services, with the aid of the Military Surface  Deployment and Distribution Command, conduct analysis of the  completeness and accuracy of data entered into DTTS military services’  shipping offices on SRC I ammunition shipments, the Military Surface  Deployment and Distribution Command will continue to lack full visibility  of shipments of SRC I ammunition and the military services will not be  well positioned to improve their oversight of the timeliness, completeness,  and accuracy of data entered in DTTS. To determine the extent to which the military  services have maintained accountability of SRC I ammunition in the  continental United States, we reviewed DOD policy and military service  guidance, including Department of Defense Manual (DODM) 5100.76,  Physical Security of Sensitive Conventional Arms, Ammunition, and  Explosives (AA&E), (Apr. We also analyzed data and documents obtained from the Air  Force, Army, and Marine Corps on 55 SRC I items from 4 shipments of  SRC I ammunition in the continental United States that contained  ammunition owned by the Army or Marine Corps that was shipped to and  held in the physical custody of the Air Force but for which we had found  that accountability was not maintained on the Air Force’s system of  record. DOD policy requires SRC I ammunition to  be treated as a higher risk than other conventional ammunition which  requires a higher level of protection and security.
Why GAO Did This Study

DOD manages a stockpile of more than 226,000 SRC I missiles and rockets in the continental United States. SRC I conventional ammunition, which refers to nonnuclear, portable missiles and rockets in a ready-to-fire configuration, is managed as a higher risk than other conventional ammunition and serves as a potential threat if it were obtained by unauthorized individuals or groups.
Senate Report 113-176 (2014) included a provision for GAO to review aspects of DOD's management of SRC I ammunition. This report addresses the extent to which the military services have maintained (1) accountability and (2) visibility (i.e., access to accurate information) of SRC I ammunition in the continental United States. GAO reviewed DOD and military service policies, regulations, and guidance on physical inventories and shipping of SRC I ammunition; conducted visits at a non-generalizable sample of 11 military service locations selected based on inventory size and number of shipments of SRC I ammunition; interviewed officials; and analyzed data on SRC I on-hand assets as of April 30, 2015, and on non-generalizable samples of SRC I shipments from November 1, 2013, to April 30, 2015.

What GAO Found

The military services maintained accountability (i.e., accurate records) of Security Risk Category (SRC) I conventional ammunition at 11 sampled locations within the continental United States; however, GAO identified gaps in some service-level guidance and procedures for how SRC I ammunition is accounted for across locations. GAO identified instances in which the Navy and Army had taken actions to enhance the accountability of the physical inventories of SRC I ammunition, such as the Army evaluating its methodology to ensure contractors with SRC I ammunition in their custody submit documentation to verify completion of inventories. However,
GAO identified 55 SRC I ammunition items that were in the physical custody of the Air Force—though owned by the Army or Marine Corps—but accountability was not maintained in any service's system of record while at the Air Force location. Department of Defense (DOD) policy requires that the DOD component having physical custody of materiel maintain accountability in its records regardless of the owner, but the Air Force's guidance requires that ammunition owned by other services be tracked only in a “non-accountable” program. If the Air Force does not revise its guidance to require that accountability be maintained regardless of ownership, the Air Force and the owning service will not have complete records of management of the ammunition and the owning service will not have full assurance that accountability was maintained.
GAO found that Army and Marine Corps guidance does not specify a time frame for receipting shipments of SRC I ammunition. Records showed that 12 of 21 shipments to Army depots and 5 of 30 shipments to Marine Corps locations were receipted more than 2 business days after truck arrival. Until Army and Marine Corps officials finalize and implement guidance on required time frames for receipting SRC I ammunition, officials cannot reasonably assure accountability for all shipped SRC I ammunition.
The military services have not consistently ensured timely, complete, and accurate information to maintain full visibility of SRC I ammunition in the continental United States. For example, 93 of 1,008 shipments GAO examined were not entered in DOD's Defense Transportation Tracking System (DTTS) at the time of departure. Also, 9 of 104 shipments GAO examined in more detail had inaccurate controlled inventory item codes and were not identified in DTTS as SRC I shipments. The Military Surface Deployment and Distribution Command and the military services have not collaboratively determined the specific information required for the military services to ensure timely data entry into DTTS. Further, the military services, with the aid of the Military Surface Deployment and Distribution Command, have not conducted analysis of the completeness and accuracy of data entered into DTTS by shippers on SRC I ammunition shipments. Until these actions are taken, the Military Surface Deployment and Distribution Command will not have full visibility of shipments of SRC I ammunition and the military services will not be well positioned to improve their oversight of the timeliness, completeness, and accuracy of data entered in DTTS.

What GAO Recommends

GAO recommends that DOD revise and finalize guidance and improve the timeliness, completeness, and accuracy of information to maintain full accountability and visibility of SRC I ammunition. DOD concurred with all six recommendations and identified specific steps it has already taken as well as plans to address them.