The Marine Corps Has a Reset Strategy for Aviation Equipment Used in Afghanistan and Plans to Develop a Reset Strategy for Ground Equipment

		Aviation Equipment Reset Strategy Incorporates Elements Needed for a Comprehensive, Results- Oriented Framework

The Marine Corps has developed an annual aviation plan and an  aviation reset program policy that together constitute its reset strategy  for aviation equipment used in Afghanistan. The Marine Corps is taking steps to develop a strategy addressing the  reset of ground equipment used in Afghanistan; however, the timeline for  completing and issuing this strategy is uncertain. Although Marine Corps  officials agreed that a reset strategy for ground equipment will be needed,  they stated that they do not plan to issue a strategy until there is a better  understanding of the dates for initial and final drawdown of forces from  Afghanistan. While more specific and certain drawdown information is  desirable and will be needed to firm-up reset plans, the President stated  that troops would begin to withdraw in July 2011, working towards a  complete transfer of all security operations to Afghan National Security  Forces by 2014. Until the reset strategy is issued, establishing firm plans for  reset may be difficult for the Marine Corps Logistics Command to  effectively manage the rotation of equipment to units to sustain combat  operations or meet the equipment needs of a newly defined post- Afghanistan Marine Corps force structure. It is also uncertain to what extent the Marine Corps plans to align its  ground equipment reset strategy with its ground equipment modernization  plan. In contrast, we found that the Iraq reset strategy for ground equipment  contained no direct reference to the service’s equipment modernization  plans. However, this indirect linkage does not  provide a clear relationship between reset and modernization. A clear  alignment of the ground equipment reset strategy for Afghanistan and  modernization plan would help to ensure that the identification,  development, and integration of warfighting capabilities also factor in  equipment reset strategies so that equipment planned for modernization  is not unnecessarily repaired. Differing Definitions for Reset May Result in Inaccurate or Inconsistent Estimates of Total Reset Costs

The total costs of reset estimated by the Marine Corps may not be  accurate or consistent because of differing definitions of reset that have  been used for aviation and ground equipment. These differing definitions  exist because DOD has not established a single standard definition for  use in DOD’s budget process. According to Marine Corps officials, procurement costs are  excluded because such costs are not consistent with its definition of  aviation equipment reset. In contrast, the Marine Corps’ definition of reset for ground  equipment includes procurement costs to replace theater losses. Although the Marine Corps excludes procurement costs when estimating  aviation equipment reset costs, we found that the Director of Cost  Assessment and Program Evaluation had obtained a procurement cost  estimate for Marine Corps aviation equipment as part of its efforts to track  reset costs for the department. Recommendations for Executive Action

To improve the Marine Corps’ ability to plan, budget for, and execute the  reset of ground equipment used in Afghanistan, we recommend that the  Secretary of Defense direct the Commandant of the Marine Corps to take  the following two actions:    Establish a timeline for completing and issuing formal reset planning  guidance and a ground equipment reset strategy for equipment used  in Afghanistan that allows operating force units and the Marine Corps  Logistics Command to effectively manage equipment reset. To improve oversight and ensure consistency in the reporting of total  reset costs, we recommend that the Secretary of Defense direct the  Office of the Under Secretary of Defense (Comptroller), in coordination  with the Office of the Under Secretary of Defense for Cost Assessment  and Program Evaluation, the Office of the Under Secretary of Defense for  Acquisitions, Technology and Logistics, the services, and the Joint Staff  to act on the tasking in the Resource Management Decision 700 to  develop and publish a DOD definition of reset for use in the DOD  overseas contingency operations budgeting process.
Why GAO Did This Study

The U.S. Marine Corps received approximately $16 billion in appropriated funds between fiscal years 2006 and 2010 for reset of aviation and ground equipment that has been degraded, damaged, and destroyed during oversees contingency operations. Reset encompasses activities for repairing, upgrading, or replacing equipment used in contingency operations. The Marine Corps continues to request funding to reset equipment used in Afghanistan. GAO initiated this review under its authority to address significant issues of broad interest to the Congress. GAO's objectives were to evaluate the extent to which the Marine Corps has made progress toward (1) developing effective reset strategies for both aviation and ground equipment used in Afghanistan and (2) providing accurate estimates of total reset costs.

What GAO Found

The Marine Corps has developed a strategic plan that addresses the reset of aviation equipment used in operations in Afghanistan and includes the elements of a comprehensive, results-oriented strategic planning framework. However, a reset strategy for ground equipment has not yet been developed. The Marine Corps is taking steps to develop such a strategy; however, the timeline for completing and issuing this strategy is uncertain. Although Marine Corps officials agreed that a reset strategy for ground equipment will be needed, they stated that they do not plan to issue a strategy until there is a better understanding of the dates for drawdown of forces from Afghanistan. While more specific drawdown information is desirable and will be needed to firm up reset plans, the President stated that troops would begin to withdraw in July 2011, working towards a transfer of all security operations to Afghan National Security Forces by 2014. Until the ground equipment reset strategy is issued, establishing firm plans for reset may be difficult for the Marine Corps Logistics Command to effectively manage the rotation of equipment to units to sustain combat operations. It is also uncertain to what extent the Marine Corps plans to align its ground equipment reset strategy with its ground equipment modernization plan. GAO found that the Iraq reset strategy for ground equipment contained no direct reference to the service's equipment modernization plans, leaving unclear the relationship between reset and modernization. A clear alignment of the ground equipment reset strategy for Afghanistan and modernization plans would help to ensure that the identification, development, and integration of warfighting capabilities also factor in equipment reset strategies so that equipment planned for modernization is not unnecessarily repaired. The total costs of reset estimated by the Marine Corps may not be accurate or consistent because of differing definitions of reset that have been used for aviation and ground equipment. These differing definitions exist because Department of Defense (DOD) has not established a single standard definition for use in DOD's budget process. Specifically, the Marine Corps does not include aviation equipment procurement costs when estimating total reset costs. According to Marine Corps officials, procurement costs are excluded because such costs are not consistent with its definition of aviation equipment reset. In contrast, the Marine Corps' definition of reset for ground equipment includes procurement costs to replace theater losses. However, GAO found that the Office of the Secretary of Defense Director of Cost Assessment and Program Evaluation had obtained a procurement cost estimate for Marine Corps aviation equipment as part of its efforts to track reset costs for the department. DOD's Resource Management Decision 700 tasks the Office of the Secretary of Defense Director of Cost Assessment and Program Evaluation to provide annual departmentwide reset updates.

What GAO Recommends

GAO recommends that the Secretary of Defense (1) establish a timeline for issuing formal reset planning guidance and a ground equipment reset strategy for equipment used in operations in Afghanistan, (2) provide linkages between the ground equipment reset strategy and the modernization plan, and (3) develop and publish a DOD definition of reset for use in the DOD overseas contingency operations budgeting process. DOD concurred with one and partially concurred with two of the recommendations.