DOD’s First Strategy for Improving DOD Asset Visibility

In January 2014, DOD issued its Strategy for Improving DOD Asset  Visibility. We discuss the status of these recommendations later in this report. DOD’s 2014 Strategy Fully Addresses Several of the Statutory Elements, and DOD’s 2015 Strategy and Implementation Plans Fully Address Most of the Remaining Elements

DOD’s 2014 Strategy and accompanying implementation plans fully  address six and partially address five of the statutory elements set forth in  the Fiscal Year 2014 National Defense Authorization Act; and DOD’s  2015 Strategy and accompanying implementation plans address  additional information for most of the statutory elements, including fully  addressing four of the five elements that were partially addressed in the  2014 Strategy. DOD has  implemented 16 of its original 22 implementation plans and has identified  in its 2015 Strategy new plans that link to the overarching goals and  objectives in the 2015 Strategy. Specifically, the following 5 elements were partially addressed in the 2014  Strategy: (1) an estimate of the costs associated with executing the plan,  and the sources and types of resources and investments required to meet  the goals and objectives; (2) a description of key factors external to DOD  and beyond its control that could significantly affect achievement of the  long-term goals contained in the strategy; (3) steps to be undertaken to  facilitate collaboration with industry designed to capture best practices,  lessons learned, and any relevant technical matters; (4) a description of  how improved asset tracking and in-transit visibility could enhance audit  readiness, reduce counterfeit risk, enhance logistical processes, and  otherwise benefit DOD; and (5) an operational security assessment  designed to ensure that all DOD assets are appropriately protected during  the execution of the strategy and implementation plan. In addition to assessing DOD’s 2014 Strategy and accompanying  implementation plans to determine the extent to which DOD satisfied its  mandate, we also reviewed DOD’s 2015 Strategy, which was issued in  October 2015, to determine changes that had been made between 2014  and 2015. Officials from the Office of the Deputy  Assistant Secretary of Defense for Supply Chain Integration told us that  the components did not include the cost estimates for the three  implementation plans, pointing out that the funding for these plans is  embedded within the overall program funding and it is impossible for the  components to estimate the portion of total program funding associated  with the plans. In October 2015, officials  stated that DOD plans to provide direction in the next annual update to  the Strategy on how to explain and document these cases, although they  commented that there will be cases where the components may not be  able to isolate the costs associated with an implementation plan. However, it is not always clear what progress DOD has  made against the original milestones set in its 2014 Strategy. DOD officials agreed that it  is not clear what progress has been made in meeting the milestones for  fiscal years 2013 and 2014 for updating the military services’ automated  information systems and have added legends to the milestone charts and  language in the Strategy to clarify the progress that has been made. We have previously concluded that milestones provide decision makers  with the information they need to assess progress and estimate realistic  completion dates. While DOD’s establishment of milestones for its IUID  implementation efforts is a positive step, the utility of those milestones will  be limited if it is unclear with each update of the Strategy what progress  DOD has made in achieving its previous milestones and how that is  affecting timelines in its 2015 Strategy. DOD Continues to Implement Many of the Initiatives Identified in Its 2014 Strategy, and Has Identified New Initiatives in Its 2015 Strategy While Linking Them to Its Overarching Goals and Objectives

Since issuing its 2014 Strategy, DOD has implemented 16 of its original  22 implementation plans included in its 2014 Strategy. The  Strategy also contains overarching goals and objectives for improving  asset visibility. By creating a clear link  between the goals and objectives in the Strategy and the implementation  plans intended to implement the Strategy, as well as identifying measures  of performance and effectiveness, DOD should be better positioned to  monitor progress toward the implementation of its plans and achievement  of its overarching goals and objectives for asset visibility. Agency Comments

We are not making recommendations in this report. We provided a draft  of this report to DOD for advance review and comment. DOD did not  provide any comments to include in this report. Appendix II: Scope and Methodology

To assess the extent to which the Department of Defense (DOD) satisfied  its mandate to provide Congress a comprehensive strategy for improving  asset tracking and in-transit visibility that includes each of the 11 statutory  elements, we reviewed DOD’s October 2014 Report to Congress on the  Strategy to Improve Asset Tracking and In-Transit Visibility, which  incorporated its January 2014 Strategy for Improving DOD Asset Visibility  and accompanying implementation plans. To understand enhancements made to the 2014  Strategy, including any efforts to more fully address those elements that  were partially addressed, we reviewed DOD’s 2015 Strategy and  discussed with officials future plans for addressing those items not fully  addressed in the 2015 Strategy. To determine what steps DOD has taken to incorporate industry best  practices related to automated information and data-capture technologies  and to implement Item Unique Identification (IUID), we reviewed DOD’s  2014 Strategy to identify the information DOD included about industry  best practices and IUID. GAO-11-569. GAO-10-929T.
Why GAO Did This Study

DOD's 2014 Strategy states that to achieve a seamless and effective supply chain, DOD needs to have end-to-end visibility of its assets from acquisition to disposal and all points between. The Fiscal Year 2014 NDAA required DOD to submit to Congress a comprehensive strategy and plans for improving asset tracking and in-transit visibility, including 11 statutory elements that were specified in the mandate. The NDAA also included a provision that GAO assess the extent to which DOD's strategy and accompanying implementation plans include the 11 statutory elements; incorporate industry best practices related to automated information and data-capture technology; effectively execute DOD's IUID policies; and contain initiatives that align with DOD's overarching goals and objectives, and that have been implemented.
This report discusses the extent to which DOD's Strategy , plans and other documentation address the items specified by the mandate. GAO assessed DOD's 2014 Strategy and accompanying implementation plans submitted to Congress in response to the mandate, interviewed cognizant officials, and reviewed DOD's October 2015 Strategy.

What GAO Found

The Department of Defense's (DOD's) 2014 S trategy for Improving DOD Asset Visibility ( Strategy) and accompanying implementation plans fully address 6 of the 11 statutory elements required by the Fiscal Year 2014 National Defense Authorization Act (NDAA) and partially address the remaining 5. For example, the Strategy fully addressed asset visibility goals and objectives, and roles and responsibilities for overseeing its strategy, as required by the mandate. However, the Strategy did not fully address elements such as including an estimate of costs associated with executing its asset visibility implementation plans. In October 2015, DOD published its 2015 Strategy for Improving DOD Asset Visibility (2015 Strategy ) in which it more fully addressed 4 of the 5 elements that were partially addressed in the 2014 Strategy. For example, the 2015 Strategy fully addresses steps DOD is taking to facilitate collaboration with industry to capture best practices, as required by the mandate. However, with the 2015 Strategy , DOD has not fully addressed the cost estimates element for three of its 2014 implementation plans as GAO recommended in January 2015. DOD officials said that they did not include the cost estimates for three of the implementation plans because the funding for these plans was embedded within the overall program funding and in these cases components could not isolate detailed cost estimates. DOD officials said they plan to amend their guidance before the next update to the Strategy, expected in fall 2016, to instruct the components on how to explain and document such cases.
DOD has also taken other actions as GAO recommended in May 2012 that GAO was required to assess with respect to asset visibility. For example, DOD's 2014 Strategy established milestones for implementing Item Unique Identification (IUID) to better track assets. In its 2015 Strategy , DOD updated these milestones. However, it is not always clear what progress DOD has made against all of the milestones set in its 2014 Strategy . For example, the milestones associated with updating automated information systems in the 2015 Strategy do not reflect progress made to date for each of the military services. GAO has previously reported that milestones provide decision makers with the information they need to assess progress and estimate realistic completion dates. If the updates to the Strategy do not clarify what progress DOD has made in meeting its previous milestones, the utility of these milestones will be limited. Officials agreed and commented they plan to take further action in the next update to the Strategy to ensure that progress that has been made is more easily understood. Finally, DOD's 2014 Strategy contains 22 implementation plans, which outline initiatives intended to improve DOD's asset visibility. GAO reported in January 2015 that 6 of those 22 plans had been implemented but that it was not clear how the plans linked to the goals and objectives in the Strategy . Since it issued the 2014 Strategy , DOD has implemented an additional 10 of its original 22 implementation plans, and has added information to its 2015 Strategy linking each of the ongoing plans to the overarching goals and objectives in the 2015 Strategy . By creating a clear link between the goals and objectives in the Strategy and implementation plans, DOD should be better positioned to monitor progress toward the implementation of its initiatives and achievement of its overarching goals and objectives for asset visibility.

What GAO Recommends

GAO made recommendations to DOD in its prior work to strengthen asset visibility. DOD agreed and has taken or is planning on taking action to address them. Consequently, GAO is not making any new recommendations in this report. GAO provided a draft of this report to DOD for advance review and comment. DOD did not provide any comments to include in this report.