The DMRT effort, focused on deficiencies in depot maintenance  processes. More than 300 barriers to depot maintenance  operational and financial performance were identified and consolidated  into more than 40 major issues organized around 8 overarching focus  areas. All 24 of the spare parts related initiatives have been started. This lack of alignment with the Air Force Strategic Plan’s performance  measures and targets means that the service cannot measure the  contribution of the actions it takes in response to the subordinate  plans toward overcoming spare parts shortages and be assured  that implementing the subordinate plans will mitigate critical spare  parts shortages and give the Air Force its greatest readiness return  on investment. Initiatives Might Help Mitigate Spare Parts Shortages, but Their Potential Effectiveness Is Limited

Key logistics initiatives being implemented by the Air Force may help  to mitigate spare parts shortages, but their potential effectiveness is  limited for several reasons. The Air Force also chose not to use the results of one of its  initiatives, which identified a new consolidated requirement for spare  parts; consequently, additional spare parts shortages could occur. Lastly,  management problems identified by an Air Force review team in 2002  have hampered implementation of the initiatives, and its new directorate,  established in February 2003, has not established a plan or priorities to  address these problems. Air Force Has Not Started All Initiatives

In 2001, the Air Force identified 43 initiatives to improve processes related  to spare parts shortages—19 as part of the Spares Campaign and 24 as  part of the DMRT. The remaining 12 initiatives have not been started because the Air Force  said it did not have the needed personnel and funding. Most Initiatives Lack Output-Related Performance Measures and Targets

Twenty-three of the 31 Air Force initiatives that have been started lack  output-related performance measures and targets. However, in its fiscal year 2004 budget the service chose to only request  $5.3 billion. However, the Air Force cautioned that increased supply  availability does not automatically result in increased mission capable  (readiness) rates because other factors, such as maintenance and  transportation, affect these rates. By not  adopting specific performance measures and targets related to mitigating  the critical spare parts shortages into subordinate plans and initiatives,  following through on initiatives to address the causes of parts shortages  and determine spare parts requirements, and resolving program  management deficiencies, the Air Force has little assurance that its  program emphasis and initiatives will improve spare-parts-related  readiness. To determine whether the strategic plans address the mitigation of spare  parts shortages, we reviewed the Air Force Strategic Plan, its two  subordinate plans—Logistics Support Plan and Supply Strategic Plan— as well as other strategic planning documents and interviewed officials to  determine whether these plans included key actions targeted at mitigating  critical spare parts shortages and improving readiness. Major contributors to this report are  included in appendix V.

Appendix I: Air Force Projected Aircraft Supply Availability Rates for Fiscal Year 2004

In response to a recommendation in the Inventory Management Study of  the Office of the Secretary of Defense, the Air Force included supply  availability rates for its weapons systems in its fiscal year 2004 budget  submission. As shown in table 4, the Air Force projected aircraft supply  availability rates ranging from 73 percent to 100 percent based on  requested funding of approximately $5.3 billion. Continue to assess impact of data systems  on 1st level supervisor’s time.
Why GAO Did This Study

Despite reporting $10.5 billion in appropriations spent on spare parts since fiscal year 2000, the Air Force continues to report shortages of spare parts. The service has taken numerous actions to address these shortages. GAO examined whether the Air Force's strategic plan addresses the mitigation of spare parts shortages, whether key initiatives are likely to mitigate the shortages, and the impact on readiness identified from increased investments for spare parts.

What GAO Found

The Air Force Strategic Plan generally provides an appropriate framework for mitigating spare parts shortages. However, one of two subordinate plans does not contain performance measures and targets linked to the strategic plan, and the other does not contain any performance targets. Therefore, the Air Force is not in a position to determine if the actions taken pursuant to its subordinate plans overcome spare parts shortages and provide assurance that it is getting the greatest readiness return on its spare parts investment. Key logistics initiatives under the Spares Campaign and Depot Maintenance Reengineering and Transformation (DMRT) efforts may help to mitigate spare parts shortages, but the initiatives' potential effectiveness is limited because of some key problems. First, the Air Force is not starting all identified initiatives that relate to the causes of shortages because it did not have needed personnel and funding. It assessed its logistics processes and identified more than 80 initiatives to solve more than 300 deficiencies; 43 initiatives were to improve processes that affect spare parts shortages, with about half relating to depot maintenance and the other half to supply. Although all depot maintenance-related initiatives have been started, 12 of the supply related initiatives have not been started. Second, 23 of the 31 initiatives lack both output-related performance measures and targets. Without output-related measures and targets to assess the initiatives' impact, the Air Force has little means of determining the extent to which it has successfully mitigated spare parts shortages and improved readiness. Third, the Air Force chose not to use the results of one of its initiatives, which identified a new total spares requirement as the basis for its fiscal year 2004 budget request. This decision resulted in a $578 million unfunded spare parts requirement. Finally, management problems--including failure to articulate the need for change, a lack of top-level commitment, and failure to address organizational issues--have hampered implementation of the initiatives. In February 2003, the Air Force established the Innovation and Transformation Directorate to address these problems, but its plans and priorities have not been set. The Air Force can estimate the impact of increased funding on individual weapon systems' supply availability and has done so. Based on its approximately $5.3 billion fiscal year 2004 spare parts budget request, the Air Force reported that aircraft supply availability would range from 73 to 100 percent. However, it cautioned that higher supply availability does not automatically result in higher mission capable rates because of other factors.