USAID manages its part of the procurement  process using other systems not connected to WBSCM. USDA officials  assert that, since March 2012, the agency has made significant  improvements to WBSCM that would address many of the problems that  led to USAID’s discontinued use of the system’s functions to procure bulk  commodity ocean freight, manage commodity inventory, and track food  aid shipments. USAID Has Not Used WBSCM as Intended Because It Had Significant Deficiencies at Implementation

WBSCM had deficiencies when it was implemented in April 2011, so  USAID gradually discontinued using it to procure ocean freight for bulk  commodities, manage commodities for prepositioned warehouses, and  track food aid shipments between August 2011 and June 2012. In addition, USAID stated that the system’s process to  procure international bulk ocean freight was not compatible with USAID’s  process and recommended that neither agency use WBSCM to procure  bulk ocean freight. Furthermore, in June  2012, USAID and USDA agreed that freight forwarders did not need to  use WBSCM to update ocean freight contracts. USAID officials send USDA a consolidated  spreadsheet, and USDA officials manually enter inventory data in  WBSCM to provide food aid information for the Commodity Credit  Corporation’s (CCC) quarterly financial statements. USAID’s Use of Other Systems Hinders USDA’s Ability to Prepare Accurate Reports and Efficiently File Claims Against Ocean Carriers to Recover Government Funds

Since USAID uses systems outside of WBSCM, USAID and USDA lack  complete and accurate information on individual food aid shipments,  which, in turn, hinders USDA’s ability to use WBSCM to prepare accurate  financial reports and recover U.S. government funds. USAID’s data collection outside of WBSCM also makes it more difficult for  USDA to efficiently file claims to recover U.S. government funds. USAID’s Systems Cannot Provide Information on Some Food Aid Shipments

In our work for a recent report on the impact of prepositioning on the  timeliness of emergency food aid, we found that some information on  emergency food aid shipments in WBSCM could not be used to assess  their delivery timeframes. According to USDA officials, USDA filed 131  claims against vendors in fiscal year 2012, valued at $1.2 million. In prior work, we have identified practices that can enhance  and sustain collaboration among federal agencies, thereby improving  performance and results. Although USDA’s and USAID’s collaborative  efforts have incorporated some of these elements to develop WBSCM,  they have not incorporated others. Nevertheless, an upcoming functional  upgrade of WBSCM offers the agencies an opportunity to make  substantial, mutually agreeable changes to WBSCM. Specifically, USDA  and USAID do not agree on the roles and responsibilities of key  participants in the international food aid procurement process, do not  share a defined outcome for their collaboration, and do not have a written  agreement stating how the agencies will collaborate. Recommendations for Executive Action

To improve the efficiency and accountability of the emergency food aid  procurement process, we recommend the Secretary of Agriculture and  Administrator of USAID direct their staffs to work together to take steps  to:  improve USDA’s ability to account for U.S. government funds by  ensuring that USAID provides USDA with accurate prepositioned  commodity inventory data that USDA can independently verify; and assess WBSCM’s functionality by testing the international  procurement functions that have been modified since April 2011 and  documenting the results. USAID agreed to test WBSCM’s current functionality and to  clarify the roles and responsibilities of participants in a written agreement  with USDA. This report  examines (1) the extent to which agencies agree to use WBSCM to  manage the international emergency food aid procurement process; (2)  how the agencies’ use of WBSCM and other systems affects USDA’s  ability to have accurate information about emergency international food  aid shipments; and (3) the extent to which the agencies are collaborating  on how to use WBSCM. To examine the extent to which the two agencies use the Web Based  Supply Chain Management system (WBSCM) to manage the international  emergency process to procure commodities and ocean freight  transportation, we interviewed USDA and USAID officials and reviewed  documentation. These are contained in  GAO’s Standards for Internal Control in the Federal Government. Appendix II: Comments from the U.S. Department of Agriculture

Appendix III: Comments from the U.S. Agency for International Development

	GAO Comment

USAID stated it is of the view that commodities move off USDA’s books  and onto those of USAID when a USAID contractor takes possession of  the commodities in question.
Why GAO Did This Study

USDA and USAID spent about $9.2 billion to provide international emergency food aid during fiscal years 2007-2012. USDA developed WBSCM with USAID's input to manage domestic and international food aid procurements. USDA spent about $187 million to develop and implement the system. GAO was asked to examine the international emergency food aid procurement process.
This report examines (1) the extent to which agencies agree to use WBSCM to manage the process, (2) how the agencies' use of WBSCM and other systems affects USDA's ability to have accurate information, and (3) the extent to which the agencies are collaborating on how to use WBSCM. GAO reviewed the procurement process and observed WBSCM in use. We analyzed inventory spreadsheets used to compile USDA's financial reports. We compared agencies' efforts to collaborate against key elements for effective interagency collaboration.

What GAO Found

Although the U.S. Department of Agriculture (USDA) and U.S. Agency for International Development (USAID) jointly manage international emergency food aid procurement, the agencies disagree about the usefulness of the Web Based Supply Chain Management system (WBSCM) to manage the entire process. WBSCM had significant deficiencies when it was implemented in April 2011, which led USAID to discontinue using it to procure ocean freight for bulk commodities, manage prepositioned or stockpiled commodity inventory, and track food aid shipments. For example, WBSCM was slow and time consuming to use and its process to procure ocean freight for bulk commodities was not compatible with USAID's process to negotiate contracts with ocean freight vendors. USDA currently uses WBSCM to procure food aid commodities, while USAID procures ocean freight using other systems not connected to WBSCM. Since March 2012, USDA has made changes to WBSCM, and USDA officials assert that these changes address some of the problems that led to USAID's decision to discontinue use of the system.
Since USAID uses systems outside of WBSCM, USAID and USDA lack information on individual food aid shipments, which, in turn, hinders USDA's ability to use WBSCM to prepare reports and efficiently file claims against ocean carriers to recover U.S. government funds. GAO's Standards for Internal Control in the Federal Government state that information should be accurately recorded and communicated to those who need it and in a form that enables them to carry out their internal control and other responsibilities. USAID relies on freight forwarders to track and periodically provide information on shipments. In GAO's work for a recent report, we found that freight forwarders did not collect complete or consistent information on emergency food aid shipments. Without accurate information from its freight forwarders, USAID is limited in its ability to generate accurate information on food aid shipments. In addition, GAO found that USAID and its warehouse contractors did not always accurately record all prepositioned commodity inventory transactions. USAID provides this potentially inaccurate information to USDA officials who enter this information into WBSCM to generate quarterly financial statements. Moreover, USAID's data collection outside WBSCM makes it more difficult for USDA to file claims efficiently against ocean freight vendors and recover U.S. funds because USDA officials must manually enter USAID information. According to USDA officials, USDA filed 131 such claims in fiscal year 2012 valued at $1.2 million.
USDA and USAID are not collaborating effectively to resolve their disagreement on the usefulness of WBSCM. In prior work, GAO identified key elements of effective collaboration that can enhance and sustain collaboration among federal agencies. Although USDA and USAID's collaborative efforts have incorporated some of these elements to develop WBSCM, they have not incorporated others. Specifically, USDA and USAID do not agree on the roles and responsibilities of key participants in the process, do not share a defined outcome for their collaboration, and do not have a written agreement stating how the agencies will collaborate. An upcoming functional upgrade of WBSCM offers an opportunity to make substantial changes that are mutually agreeable.

What GAO Recommends

GAO recommended the agencies work together to ensure USDA receives accurate prepositioned inventory data, improve WBSCM's functionality by testing modified functions, and develop a written agreement that clearly outlines outcomes and roles and responsibilities for using WBSCM. USAID noted its view that prepositioned commodities move off USDA's books and onto those of USAID but agreed in general with our other two recommendations. USDA agreed with our recommendations and stated that the Commodity Credit Corporation retains ownership of prepositioned commodities.