Ministry of Defense Has Approved a Logistical Concept, but Its Implementation Faces Numerous Challenges

Several challenges remain in the implementation of MOD’s logistics  system. Second, the policies and procedures to facilitate implementation of the  logistics concept have not been effectively disseminated. Third, the  training of Iraqi logisticians has been affected by a lack of fuel, electricity,  and personnel support for the training academy. Finally, the maintenance  of the Iraqi military’s vehicles is complicated by the diversity of MOD’s  fleet, the lack of trained mechanics, and the failure to budget for and  maintain an authorized stockage level for equipment. Underdeveloped National and Regional Logistics Centers and the Failure to Disseminate Policies and Procedures Hinder Iraqi Logistical Self-Sufficiency

The creation of national and regional logistics centers has lagged behind  that of lower echelon unit-level organizations because preference has been  given to the generation of lower echelon logistics organizations,  specifically Headquarters and Service Companies and Motorized Transport  Regiments. For example, the  establishment of the National Depot has been plagued by manpower  shortages, security issues, inadequate fuel stocks, and poor maintenance. In its  supplemental Fiscal Year 2007 Security Forces Fund request, DOD has  asked for a total of $339.2 million to build and develop maintenance,  warehouse, and base support facilities at the National Depot. In its supplemental Fiscal Year  2007 Security Forces Funds request, DOD has asked for $73 million to  build and outfit 58 dining facilities on GSUs and RSUs. Coalition logisticians have emphasized to us that the development of all  echelons of the logistics concept is crucial in order for MOD to become  capable of independently sustaining its forces. According to the statement of work,  the command’s intent was to contract the services of a maintenance  contractor to support the sustainment of the vehicles and equipment  issued to the Iraqi Armed Forces and to assist the Iraqi Armed Forces in  becoming self-sufficient. Ministry of Interior Has Drafted a Logistics Concept, but It Is Not Self- Sufficient in Logistics

As of December 2006, the Ministry of Interior had not approved the draft  logistics concept that has been proposed by the Coalition. The reason for  this is unclear. What is clear, however, is that since the summer of 2006,  the Ministry has experienced significant challenges in its warehousing and  supply, and maintenance activities. Because of these challenges, the  Ministry is dependent on Coalition support for much of its logistics  requirements. MOI’s Warehousing and Supply Infrastructure Requires Continued Coalition Support and Funding

In December 2006, DOD reported that the MOI warehouse system consists  of five warehouses operated by the Coalition, one that is planned for MOI  operation in late December 2006, and several additional warehouses at the  headquarters of both the Ministry and its Department of Border  Enforcement. For  example, in July 2006, not only was the Coalition procuring and  distributing equipment, vehicles, and weapons for MOI, it was also funding  a contractor to run the supply distribution warehouses and provide the  transportation assets needed to get the supplies from the warehouses to  MOI facilities. These challenges have continued, and MOI remains dependent on the  Coalition to operate its warehouse system. Although MOI was supposed to  assume responsibility for running these warehouses, this has not  happened. DOD states that MOI  requires approximately $175 million from the supplemental Fiscal Year  2007 Security Forces Fund for the construction and sustainment of  warehouses and maintenance depots. In  addition, MOI personnel were unable to maintain a certain type of  American truck supplied by the Coalition because its personnel were  unable to work with the vehicles’ computerized systems. As of August  2006, MOI had 1,179 trucks of this type on hand. For instance, according to a December 2006 DOD update, Iraqi mechanics  remain unfamiliar with the computerized systems which are found in most  of the MOI’s vehicles. For instance, according to Coalition officials the  Multi-National Security Transition Command-Iraq has established the $130  million Baghdad Area Maintenance Contract to repair National Police  vehicles. DOD states that without this infrastructure the Ministry will not be able to  maintain its vehicle fleet.
Why GAO Did This Study

The National Strategy for Victory in Iraq, issued in November 2005, implies a conditions-based linkage between the development of the Iraqi Security Forces (ISF) and the size and shape of the U.S. presence there. The Department of Defense (DOD) reported to Congress in November 2006 that although the Iraqi Ministry of Defense and Ministry of Interior had about 323,000 trained and equipped forces, there was a serious shortcoming for both Ministries in the planning and executing of their logistics and sustainment requirements. According to DOD, without a developed logistical system the ISF will require continued Coalition support. Today's testimony addresses (1) the current state of the ISF's logistical capabilities, and (2) the challenges the ISF is facing to achieve logistical self-sufficiency. This testimony contains unclassified portions of a classified report that was issued on March 7, 2007. GAO's preliminary observations are based on audit work performed from January 2006 through March 2007.

What GAO Found

Although the Ministry of Defense has an approved logistics concept in place, the implementation of that concept has been hampered by numerous challenges. For example, the development of national and regional logistics centers has lagged behind the development of other logistics formations because of manpower shortages, security issues, inadequate fuel stocks, poor maintenance, and funding procurement issues. DOD has asked for a total of $339.2 million to build and develop maintenance, warehouse, and base support facilities at the National Depot and for $73 million to build and outfit 58 dining facilities on Garrison Support Units and Regional Support Units. Coalition logisticians have emphasized to us that the development of all echelons of logistics units is crucial in order for the Ministry of Defense to become capable of independently sustaining its forces. Furthermore, the policies and procedures intended to guide implementation of the logistics concept have not been effectively distributed. In addition, the training of Iraqi logisticians and mechanics has been hindered by an insufficiency in the supply of Arabic-literate students, of fuel needed to power generators, and of cadre qualified to serve as faculty at the logistics schools. Finally, maintenance of the vehicle fleet poses challenges because of its diversity, the shortage of trained mechanics, and the Ministry's failure to budget for and maintain an authorized stockage level for equipment. As of December 2006, the Ministry of Interior has not approved the draft logistics concept that has been proposed by the Coalition. The reason for this is unclear. What is clear, however, is that since the summer of 2006, the Ministry has experienced significant challenges in its warehousing and supply, and maintenance activities. For instance, in July 2006, the Coalition was procuring and distributing equipment, vehicles, and weapons for the Ministry, in addition to funding a contractor to run warehouses and transport supplies to the Ministry's facilities. These challenges have continued, and the Ministry remains dependent on the Coalition to operate its warehouse system. In February, the Ministry was supposed to assume responsibility for running its warehouses. However, this has not happened. Moreover, in its fiscal year 2007 supplemental, DOD is requesting approximately $175 million for the construction and sustainment of Ministry warehouses and maintenance depots. Another example of the Ministry's continuing logistical challenges is vehicle maintenance. In August 2006 Ministry personnel were unable to maintain a certain type of American truck supplied to the ministry by the Coalition because its personnel were unable to work with the vehicles' computerized systems. In August 2006, the Ministry had 1,179 trucks of this type on hand. As of December 2006, Iraqi mechanics remained unfamiliar with these computerized systems which are found in most of the ministry's vehicles. Because the Iraqi National Police are not able to maintain their vehicles, the Coalition has let and funded a $130 million Baghdad Area maintenance contract to repair these vehicles.