MCPP-N Is Changing Its Equipment Mix to Address U.S. European Command and U.S. Africa Command Requirements

The Marine Corps is changing its mix of equipment to address the U.S.  European and U.S. Africa commands’ strategic and theater-specific  operational requirements. Although those U.S. Africa Command plans that reference  a need for access to prepositioned equipment do not specifically identify  MCPP-N as an asset to meet that need, both Marine Corps and U.S.  Africa Command officials stated that MCPP-N has served and can  continue to serve as a global support asset to meet combatant command  requirements. Marine Corps’ Cost Estimates for Funding MCPP-N’s Equipment Sustainment May Not Be Fully Reliable

Marine Corps cost estimates for sustaining the equipment to support a  Marine Air Ground Task Force capability may not be fully reliable, in that  they do not fully meet the four general characteristics for reliable cost  estimating—that is, being accurate, well-documented, credible, and  comprehensive—as identified in GAO’s Cost Estimating and Assessment  Guide. We found that estimates did not meet the characteristic for credibility. As  of May 2015 the draft guidance had not been finalized, but Marine Corps  officials stated they had no plans for the new guidance, which they expect  to issue in the fall of 2015, to address the four characteristics of reliable  cost estimates. Marine Corps Reliance on the Norwegian System Poses Management Challenges and Data Reliability Risks, and Quality Assurance Procedures Do Not Include a Review of the System

The Marine Corps relies upon the Norwegian Equipment Information  Management System for data needed to manage its equipment inventory  at MCPP-N due to long-standing limitations in the Global Combat Support  System - Marine Corps. The reliance on two different information systems, one of  which is owned and operated by a foreign government, creates several  management challenges and risks to data reliability for the Marine Corps. For example, it results in a time lag in the accuracy of information in the  Marine Corps system until that system is manually updated with  information from the Norwegian system—a process that is time- consuming and vulnerable to the risk of introduction of errors. However,  the Marine Corps and the Norwegians have taken some steps to mitigate  these risks for the interim until the Marine Corps system is capable of  replacing the Norwegian system. Additionally, relying on the Norwegian  system for management information makes the Marine Corps vulnerable  to any weaknesses that may exist within the Norwegian system. Nevertheless, the Marine Corps has not conducted a quality assurance  review of the Norwegian system. Performing such a review would be  consistent with Marine Corps regulations and federal internal control  standards, and it would constitute a key step toward mitigating potential  weaknesses in the Norwegian Equipment Information Management  System. As part of its quality assurance program for ensuring that the Marine  Corps has accurate and reliable information on inventory data for stored  assets used to support combatant commanders’ requirements, we  recommend that the Commandant of the Marine Corps, in consultation  with the Norwegian Defence Logistics Organization, take steps to update  the Technical Manual on Logistics Support for the Marine Corps  Prepositioning Program – Norway and the Local Bilateral Agreement, to  incorporate guidance and instructions on conducting a quality assurance  review that assesses the accuracy and reliability of the Norwegian  Equipment Information Management System. Appendix I: Scope and Methodology

Senate Report 113-176, accompanying the National Defense  Authorization Act for Fiscal Year 2015, included a provision that we  review MCPP-N and determine the extent to which (1) MCPP-N  addresses U.S. European Command and U.S. Africa Command  requirements; (2) reliable cost estimates exist to fund MCPP-N’s  sustainment of equipment to support a Marine Air Ground Task Force  capability; and, (3) the Marine Corps has quality assurance procedures in  place to monitor the management of MCPP-N.
To determine the extent to which MCPP-N addresses U.S. European  Command and U.S. Africa Command requirements, we obtained,  reviewed, and analyzed plans, policies, and guidance on MCPP-N  detailing the program and its support to the Marine Corps and combatant  commands, such as the January 2012 Commandant of the Marine Corps  Planning Guidance for Marine Corps Prepositioning Program—Norway. We focused our review on ground equipment stored  at MCPP-N because the program is transforming the equipment set from  an engineering and transportation to a Marine Air Ground Task Force  capability.
Why GAO Did This Study

MCPP-N was established in 1981 as part of a DOD agreement to support the defense of Norway and global U.S. Marine Corps expeditionary operations. In 2012 the Marine Corps began transforming MCPP-N from an engineering and transportation capability to a Marine Air Ground Task Force capability, which includes combat vehicles and other tactical equipment, and it expects to complete the transformation in 2016.
Senate Report 113-176 included a provision that GAO review MCPP-N. This report determines the extent to which (1) MCPP-N addresses U.S. European and U.S. Africa command requirements;(2) reliable cost estimates exist to fund MCPP-N's sustainment of equipment to support a Marine Air Ground Task Force capability; and (3) the Marine Corps has quality assurance procedures in place to monitor the management of MCPP-N. GAO reviewed agency guidance and plans, analyzed budget estimates, and interviewed Marine Corps, Department of State, and Norwegian Defence officials.

What GAO Found

The Marine Corps is changing its mix of equipment at Marine Corps Prepositioning Program – Norway (MCPP-N) to address the U.S. European and U.S. Africa commands' strategic and theater-specific operational requirements. U.S. European Command's posture plan identifies MCPP-N as a key program that can respond to contingencies. While U.S. Africa Command plans that refer to a need to access prepositioned equipment do not specifically identify MCPP-N as an asset to meet that need, both Marine Corps and U.S. Africa Command officials stated that MCPP-N has served and can continue to serve as a global support asset to meet combatant command requirements. The Marine Corps reported that it routinely uses MCPP-N equipment sets to support European and Africa training and exercises.
Marine Corps cost estimates for sustaining the equipment to support a Marine Air Ground Task Force capability at MCPP-N may not be fully reliable, in that they do not fully meet the four general characteristics for reliable cost estimating—that is, being accurate, well-documented, credible, and comprehensive. For example, the Marine Corps documented its cost estimates, but the documentation did not include the source data used to develop the estimates or the calculations performed and estimating methodologies used. Marine Corps officials stated that they are drafting guidance for developing cost estimates for budget plans and plan to issue it in the fall of 2015, but this guidance will not address the four general characteristics for reliable cost estimating. Without ensuring that this guidance fully addresses those characteristics, the Marine Corps will not be positioned to know whether its budget proposals will meet the goal of sustaining equipment for a Marine Air Ground Task Force capability at MCCP-N.
The Marine Corps could improve its quality assurance procedures for monitoring MCPP-N. Specifically, the service relies upon the Norwegian Equipment Information Management System for data needed to manage its equipment inventory due to limitations in its own system, such as the lack of a warehousing application to effectively manage MCPP-N equipment.The reliance on two different information systems, one of which is owned and operated by a foreign government, creates several management challenges and risks to data reliability for the Marine Corps. For example, it results in a time lag in the accuracy of information in the Marine Corps system until it is manually updated with information from the Norwegian system—a time-consuming process that introduces a vulnerability to errors. The Marine Corps and the Norwegians have taken some steps to mitigate these risks for the interim until the Marine Corps system is capable of replacing the Norwegian system. Additionally, relying on the Norwegian system for management information makes the Marine Corps vulnerable to any weaknesses that may exist within the Norwegian system. However, the Marine Corps has not conducted a quality assurance review of the Norwegian system. Performing such a review would constitute a key step toward mitigating potential weaknesses in the Norwegian system.

What GAO Recommends

GAO recommends that the Marine Corps (1) incorporate the four characteristics of reliable cost estimates in the forthcoming prepositioning programs budget development policy; and (2) develop, in consultation with the Norwegian Defence Logistics Organization, a means to conduct a quality assurance review of the Norwegian Equipment Information Management System. The Marine Corps concurred with the recommendations.