DOD Lacks Comprehensive, Departmentwide Data on Some Power Source Investments

DOD lacks comprehensive, departmentwide data for its total investment in  the power sources area and no single DOD office aggregates these data  across all investment categories. Further, availability of complete data  varies across the three investment categories: S&T, logistics support, and  acquisition programs. We determined that DOD invested at least   $2.1 billion in power sources from fiscal year 2006 through fiscal year  2010. While DOD appears to have adequate departmentwide data on S&T  efforts, it does not have departmentwide data for all logistics support  investments. DOD has limited data on its investments in power sources  when they are developed or purchased for acquisition programs. The $2.1  billion amount includes the investments in S&T and logistics support that  we were able to identify but not power source investments as part of  acquisition programs because of the difficulty in obtaining investment data  in that area. In general, a lack of investment information can adversely  affect DOD’s ability to avoid unnecessary duplication; control costs;  ensure basic accountability; anticipate future costs and claims on the  budget; measure performance; maintain funds control; prevent and detect  fraud, waste, and abuse; and address pressing management issues. DOD Has a High Level of Data on Power Source S&T Investments

We determined that from fiscal year 2006 through fiscal year 2010 DOD  invested approximately $868 million in the development of power source  technologies through many individual power source S&T projects. Figure 2 depicts DOD’s approximate  investment in power sources S&T by DOD component. Further, S&T planning efforts can be complicated by  external factors. Though we found these mechanisms to be generally effective, agencies  may miss opportunities to fully coordinate because attendance at these  interagency groups and conferences is voluntary and the level of agency  participation varies. S&T Strategic Planning Could Be Improved

We found that though DOD has generally effective S&T coordination  mechanisms, its strategic planning process to facilitate the allocation of  S&T funds for power source technologies could be improved. DOD’s Power Source Standardization Efforts Are Not Departmentwide and Lack Robust Enforcement

Though DOD officials agree that the department needs to increase its  emphasis on power source standardization, it lacks a departmentwide  policy to emphasize or compel early consideration of standard power  sources. DOD Has Not Evaluated Departmentwide Opportunities to Standardize Power Sources in Deployed Weapon Systems and Equipment

Although it is generally more economical to address standardization early  in the acquisition process and prior to the deployment of weapon systems  or equipment to the field, opportunities may exist to increase  standardization by retrofitting weapon systems or equipment for which a  proprietary power source has already been developed. Recommendations for Executive Action

To increase oversight of power source investments and to allow for  enhanced strategic planning, we recommend that the Secretary of Defense  consider how to best aggregate departmentwide investment data (from  S&T, logistics support, and acquisition programs) in the power sources  area and develop a mechanism to aggregate power source investment data  across these investment categories at a level sufficient to guide decisions  and policy. The  department stated that it had already taken or plans to take specific  actions in response to our recommendations, but it is unclear from DOD’s  response what these actions entail. DOD partially concurred with our recommendation that the Secretary of  Defense determine methods to strengthen pertinent member agency  participation in interagency coordination mechanisms. DOD also partially concurred with three recommendations related to  power source standardization, namely, that the Secretary of Defense   (1) identify and direct appropriate office(s) to develop a plan to optimize  use of standard power sources for weapon systems or equipment types  more amenable to standardization; (2) develop a DOD-wide policy similar  to section 8.8 of Army AR 70-1 that requires senior acquisition executive  approval before allowing acquisition programs to use a power source that  is not standard or preferred; and (3) identify opportunities to cost  effectively retrofit deployed weapons systems and equipment that use a  proprietary power source with an existing military standard or other  preferred power source.
Why GAO Did This Study

Virtually all Department of Defense (DOD) weapon systems and equipment rely on power sources, such as batteries. In response to a mandate in the National Defense Authorization Act for Fiscal Year 2010, GAO determined (1) DOD's approximate investment in power sources, (2) the extent to which DOD coordinates its power source investments, and (3) the extent to which DOD's policies facilitate the use of standard power sources. To address these objectives, GAO obtained and analyzed DOD investment data, met with DOD officials and industry representatives, and attended DOD conferences aimed at facilitating power source coordination.

What GAO Found

GAO determined that DOD has invested at least $2.1 billion in power sources from fiscal year 2006 through fiscal year 2010. However, DOD lacks comprehensive, departmentwide data for its total investment in the power sources area. Availability of complete data varies across the three investment categories: science and technology (S&T), logistics support, and acquisition programs. While DOD appears to have adequate departmentwide data on S&T efforts, it does not have departmentwide data for all logistics support investments. DOD lacks sufficient data on its investments in power sources when they are developed or purchased for acquisition programs. The $2.1 billion amount includes investments in S&T and logistics support that GAO was able to identify, but not power source investments as part of acquisition programs because of the difficulty in obtaining investment data in that area. This lack of complete, departmentwide investment data hinders DOD's oversight and future planning in the power sources area, adversely affecting its ability to ensure basic accountability, anticipate future funding, and measure performance. DOD's mechanisms for coordinating power source S&T--including interagency working groups, conferences, informal networks, and information technology resources--are generally effective. However, in some of these activities participation by pertinent member agencies is voluntary and could be more complete. Agencies may be missing opportunities to coordinate activities--such as avoiding initiation of similar research projects--and leverage resources because agency participation is voluntary and the level of participation by pertinent agencies varies. In addition, DOD's strategic planning process to facilitate the allocation of S&T funds for power source technologies could be improved. The S&T planning efforts can also be complicated by external factors, such as the additions Congress makes to DOD's budget. Although DOD power source experts GAO staff spoke with agree that the department needs to increase its emphasis on power source standardization, DOD lacks departmentwide policies to help emphasize power source standardization. Existing policies have demonstrated limited effectiveness because of compliance problems and because they may only apply to specific power source applications. Although it is generally more economical to address standardization early in the acquisition process, according to DOD officials, power sources are generally not considered early in the process, potentially hindering standardization efforts. DOD has also not evaluated departmentwide opportunities for retrofitting deployed weapon systems and equipment with standard or other preferred power sources when cost effective.

What GAO Recommends

To increase oversight of power source investments, GAO recommends that DOD consider how to best aggregate departmentwide investment data. To improve interagency coordination of S&T projects, DOD should determine ways to strengthen agency participation in coordination mechanisms. To increase emphasis on standardization, DOD should develop a standardization plan and enforceable departmentwide policies and identify opportunities to retrofit existing systems with standard power sources when cost effective. DOD concurred with the first recommendation and partially concurred with the other four. It was unclear from DOD's response what actions it plans to take in response to GAO's recommendations.