In total, the schedule contains 73 initiatives aimed at improving DLA’s inventory management operations. The schedule, however, does not (1) contain information on the extent to which the initiatives cover each supply category, (2) establish key performance indicators to measure the overall impact the initiatives will have on logistics costs and efficiency of operations, and (3) provide criteria and plans for expanding or fully implementing the initiatives to cover the entire supply category. In no case did the schedule contain information on the percentage of a supply category that will be affected by an initiative, key indicators that could be used to determine if the initiatives are achieving the desired results, or milestones necessary to measure progress toward covering the entire supply category by the implementation date. The schedule provided planned contract award dates for these initiatives. The schedule information consisted of the fiscal year that contracts were awarded for seven electronic catalogs. In addition, DLA does not have the authority to require the military services to participate in these programs. Conclusions

Although DLA’s best practices implementation schedule identifies a variety of initiatives, it does not contain the information necessary to assess implementation progress, the initiatives’ use in any particular supply category, or the results of the initiatives as measured in terms of cost, service, and readiness. Such information is essential for oversight by Congress and DOD managers as they seek to determine whether the initiatives are being implemented in a timely manner over the desired scope of operations and are achieving the intended results.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Defense Logistics Agency's (DLA) schedule for implementing best commercial practices for inventory management, focusing on whether the schedule: (1) described the extent to which the initiatives cover each supply category; (2) established key performance indicators to measure the overall impact the initiatives will have on logistics costs and efficiency of operations; and (3) provided criteria and plans for expanding or fully implementing the initiatives to cover the entire supply category.

What GAO Found

GAO noted that: (1) DLA's schedule provides information on 73 initiatives it identified as best practices for improving the acquisition and distribution of certain categories of consumable supplies; (2) although GAO is encouraged that DLA has established these initiatives, the schedule does not provide adequate information to assess whether it effectively provides for the implementation of these practices to be completed by November 2000, as required by the fiscal year 1998 Defense Authorization Act; (3) specifically, the schedule does not contain information on the percentage of a supply category that will be affected by the initiatives; (4) consequently, users of the schedule are unable to determine the magnitude of impact the initiatives are intended to have; (5) also, the schedule does not present metrics or indicators that will be used to determine whether the initiatives are achieving the desired results; (6) this information is critical to determine whether readiness and sustainability goals are being met and cost goals are being achieved; and (7) in addition, the schedule does not provide milestones necessary to measure progress toward covering the entire supply category by the implementation date.