	Background

Established in 1985, LOGCAP is an Army program that preplans for the  use of global corporate resources to support worldwide contingency  operations. Examples of the types of support  available include supply operations, laundry and bath, food service,  sanitation, billeting, personnel support, maintenance, transportation,  engineering and construction, and power generation and distribution. Some of the initiatives the  Army has completed or has under way that should contribute to stronger  management of LOGCAP include (1) rewriting its guidance, including its  field manual for the use of contractors on the battlefield, and its primary  regulation for obtaining contractor support in wartime operations;  (2) implementing near- and longer-term training for commanders and  logisticians; (3) developing a deployable unit to provide training and  assistance for commands using LOGCAP; (4) restructuring the LOGCAP  contracting office to provide additional personnel resources in key areas;  and (5) eliminating the backlog of contract task orders requiring  definitization and conducting award fee boards in order to improve the  financial oversight and control of LOGCAP. Definitization is the process by which the  government and the customer come to agreement or a determination is  made on the terms, specifications, and price of the task orders. First, there is no  formal process for seeking economy and efficiency in the use of LOGCAP. DOD concurred with our  recommendation. AMC is the executive agent for LOGCAP, but several other DOD  components also have important LOGCAP responsibilities, and these  components must work in coordination with AMC to ensure the contract’s  effective and efficient use. However, as of  February 2005 no policy memorandum has been issued and no teams  of subject matter experts have been established or deployed to  review contract activities. However,  while AMC has sought to influence the manner in which the other  components carry out their roles, AMC does not have command authority  over the components, and thus its influence is limited. While AMC was aware that the Army  Central Command’s plan for the use of the contract was not  comprehensive, it lacked the authority to direct better planning. Given the $6.8 billion that the Army plans to  spend on LOGCAP contract activities in fiscal year 2005, the importance of  the contract to the success of current military operations, and the  existing command authorities, we believe that more direct oversight and  coordination is needed. Conclusions

In response to our prior reports, the Army has taken or is in the process of  taking steps designed to improve the management and oversight of  LOGCAP as well as related contracts and it continues to proactively look  for additional areas for improvement. At the DOD level, no one is in a position to  coordinate these components in using the contract. Scope and Methodology

To determine the actions the Army has taken for improving the  management and oversight of the Logistics Civil Augmentation Program  (LOGCAP), we met with representatives of the Army Field Support  Command’s (AFSC) LOGCAP Program Manager, LOGCAP Contracting  Office, and LOGCAP Support Unit to gain a comprehensive understanding  of the status of efforts regarding the LOGCAP contract, the contract  management process, and issues related to using the contract effectively.
Why GAO Did This Study

The Logistics Civil Augmentation Program (LOGCAP) is an Army program that plans for the use of a private-sector contractor to support worldwide contingency operations. Examples of the types of support available include laundry and bath, food service, sanitation, billeting, maintenance, and power generation. LOGCAP has been used extensively to support U.S. forces in recent operations in southwest Asia, with more than $15 billion in estimated work as of January 2005. While we issued two reports on LOGCAP since 1997 that made recommendations to improve the Army's management of the contract, broader issues on coordination of LOGCAP's contract functions were beyond the scope of our earlier work. This report assesses the extent to which the Army is taking action to improve the management and oversight of LOGCAP and whether further opportunities for using this contract effectively exist.

What GAO Found

The Army has taken or is in the process of taking actions to improve the management and oversight of LOGCAP on the basis of our earlier reporting. The actions that the Army has completed or has underway include (1) rewriting its guidance, including its field manual for using contractors on the battlefield and its primary regulation for obtaining contractor support in wartime operations; (2) implementing near- and longer-term training for commanders and logisticians in using the contract; (3) developing a deployable unit to assist commands using LOGCAP; (4) restructuring the LOGCAP contracting office to provide additional personnel resources in key areas; and (5) taking steps to eliminate the backlog of contract task orders awaiting definitization--that is, coming to agreement on the terms, specifications, and price of the task orders--and conducting award fee boards. While improvements have been made, GAO believes that the Department of Defense (DOD) and the Army need to take additional action in two areas. First, although DOD continues to agree with our July 2004 recommendation to create teams of subject matter experts to review contract activities for economy and efficiency, it has not done so yet because the need to respond to statutory requirements took precedence. Prior GAO reviews have shown that when commanders look for savings in contract activities, they generally find them, as illustrated in the table. The second area needing attention is the coordination of contract activities between DOD components involved with using LOGCAP. While the Army Materiel Command (AMC) is the executive agent for LOGCAP, other DOD components also play important LOGCAP roles, including the combatant commander, individual deployed units, and the Defense Contract Management Agency. The effective and efficient use of the contract depends on the coordinated activities of each of these agencies. However, at the DOD level, no one is responsible for overall leadership in using the contract and, while AMC has sought to influence the way in which the other components carry out their roles, it does not have command authority over the other components and thus its influence is limited. For example, AMC knew that planning for the use of LOGCAP for Operation Iraqi Freedom was not comprehensive but lacked the command authority to direct better planning. AMC officials believe that training will resolve these problems over time. However, given the importance of LOGCAP to supporting military operations and the billions of dollars being spent on LOGCAP activities, we believe that more immediate and direct oversight is needed.