Military Services’ Systems for Managing Ammunition Inventory

All of the military services have automated information systems for  managing and maintaining accountability for ammunition inventory. Military Services’ Systems Have Some Limitations That Affect Their Ability to Facilitate Efficient Management of Conventional Ammunition

		Military Services’ Ammunition Information Systems Use Different Formats and Cannot Directly Exchange Data

The military services’ ammunition systems cannot directly exchange data  because they use different data exchange formats. Without upgrades of the Navy, Marine Corps, and Air  Force systems to DLMS, the services will continue to devote extra time  and resources to ensure the efficient transfer of ammunition data between  these systems and LMP. LMP Has Some Limitations That Can Affect the Accuracy and Completeness of Data on Ammunition Items Stored at Depots

LMP was not specifically designed to track ammunition and has some  limitations in its ammunition-related functionality that can affect the  accuracy and completeness of data for items stored at Army depots. NLAC Has Some Limitations in Providing Visibility of Conventional Ammunition

The Army’s NLAC is a DOD-wide repository of ammunition data;  however, it has some limitations in providing visibility of conventional  ammunition and is not widely used outside of the Army. The Army does  not have reasonable assurance that NLAC collects complete and  accurate data from service ammunition systems. In addition to the  challenges with LMP data discussed earlier in this report, NLAC also  does not have certain checks and controls that could help ensure that  data are accurately being transferred from source systems to NLAC. Services Have a Process for Collecting and Sharing Data on Conventional Ammunition, but the Army Does Not Report Information about All Available and Usable Items

The military services have a process for collecting and sharing data in  annual reports on conventional ammunition levels and use these reports  to identify inventory owned by one service that may be available to meet  the requirements of another service. Also, the Army’s annual report does not  provide information about all available, usable ammunition items. This information is not routinely shared with all  services in the annual reports on ammunition inventory because DOD  guidance does not require reporting this type of inventory as part of the  stratification process. The Army is aware of these challenges but has  not developed a plan to address them. A comprehensive plan, with time  frames and costs, for resolving limitations in LMP ammunition-related  functionality could provide DOD reasonable assurance that its efforts to  upgrade this functionality in LMP are making progress. The services use the stratification and redistribution process to better  optimize the department’s ammunition inventory by collecting and sharing  information on available inventory that could meet the requirement of  another service. Without such annual reporting,  the information DOD obtains may lack full transparency about all  available items and may miss opportunities to avoid procurement costs  for certain usable items that may already be available in the Army’s  stockpile. Recommendations for Executive Action

We are making seven recommendations to improve the efficiency of  DOD’s systems for managing its conventional ammunition inventory and  to improve data sharing among the services. To improve DOD’s ability to provide total asset visibility over conventional  ammunition, we recommend that the Secretary of Defense direct the  Under Secretary of Defense for Acquisition, Technology, and Logistics, in  conjunction with the Secretaries of the Army, the Air Force, and the Navy,  to take the following two actions:  Identify and implement internal controls, consistent with federal  internal control standards, that will provide reasonable assurance that  NLAC collects comprehensive, accurate data from other service  ammunition systems. Such a plan could provide DOD with reasonable assurance  that the Army's efforts to upgrade ammunition-related functionality in LMP  are making progress and, moreover, provide greater assurance that LMP  is capable of maintaining accurate, timely, and more complete  ammunition data in accordance with DOD supply chain materiel  management and ammunition management guidance. With regard to the seventh recommendation, that the Under Secretary of  Defense for Acquisition, Technology, and Logistics revise guidance to  require the Secretary of the Army to include information on all available  ammunition for use during the redistribution process, including  ammunition that in a previous year was unclaimed by another service and  categorized for disposal, DOD concurred and noted that the Under  Secretary would clarify direction in recently issued guidance that the  military departments will use information on all available ammunition  categorized for disposal. To determine the extent to which the military services collect and share  inventory data to help them meet their stated requirements, we reviewed  policies, procedures, and other guidance, as well as reports related to  conventional ammunition reporting requirements for the services,  including DOD Regulation 4140.1-R and the Joint Conventional  Ammunition Policies and Procedures. We obtained and reviewed the records of results  from the redistribution meeting for fiscal years 2009 through 2013.
Why GAO Did This Study

DOD manages nearly $70 billion of conventional ammunition—which includes many types of items other than nuclear and special weapons—at eight Army depots. The military services use automated information systems to manage their inventory. They also compile annual reports that compare ammunition inventory levels against stated requirements. GAO was asked to evaluate DOD's management of conventional ammunition. This report addresses the extent to which (1) the services' information systems facilitate efficient management of the conventional ammunition inventory and (2) the services collect and share inventory data to help them meet their stated requirements. GAO reviewed DOD guidance on materiel management and logistics systems, reviewed the services' annual inventory reports for fiscal years 2009 to 2013, and discussed inventory management and related issues with service officials.

What GAO Found

The military services use automated information systems to manage and maintain accountability for the Department of Defense (DOD) ammunition inventory, but the systems have some limitations that affect their ability to facilitate efficient management of conventional ammunition.
The systems cannot directly exchange ammunition data because they use different data exchange formats. Only the Army's Logistics Modernization Program (LMP) system uses the standard DOD format. The other services have not adopted this format, although Air Force officials have said that they plan to by 2017. Without a common format for data exchange, the services will continue to devote extra time and resources to ensure efficient data exchange between their systems and LMP.
LMP has some limitations in its ammunition-related functionality that can affect the accuracy and completeness of data for items stored at Army depots and require extra time and resources to confirm data or correct errors. The Army acknowledges there are limitations in LMP; however, it has not yet developed a comprehensive plan, with time frames and costs, for addressing the limitations. Such a plan could provide DOD reasonable assurance that its efforts to upgrade ammunition-related functionality in LMP are making progress.
The Army developed the National Level Ammunition Capability (NLAC) as a DOD-wide repository of ammunition data, but NLAC has some limitations in providing ammunition visibility—that is, having complete and accurate information on items wherever they are in the supply system. The Army does not have reasonable assurance that NLAC collects complete and accurate data from service systems because it does not have checks and controls that federal internal control standards recommend to ensure source data is reliable. Without steps to ensure the quality of the data that flows into NLAC, DOD officials risk making decisions based on inaccurate and incomplete inventory information, or ammunition offices may have to devote extra staff and time to obtain accurate data of DOD-wide inventory.
To identify inventory owned by one service that may be available to meet the requirements of another service, the military services have a process for collecting and sharing ammunition data. Through a stratification and redistribution process, the services assess whether inventory can meet stated requirements and then may transfer available inventory, including inventory in excess of one service's requirement, to another service. This redistribution offsets procurements of ammunition items. To facilitate this process, each service develops and shares ammunition inventory data in annual reports. The Army's annual report, however, does not include information on certain missiles. Also, the Army's report does not include information on all available, usable ammunition that in a prior year was unclaimed by another service and placed in storage for disposal; DOD guidance does not require that such inventory be included in the reports. Without incorporating these items in the Army's report, DOD may lack full transparency about all available items and may miss opportunities to avoid procurement costs for certain usable items that may already be available in the Army's stockpile.

What GAO Recommends

GAO is making seven recommendations to improve the efficiency of the services' systems for managing DOD's conventional ammunition inventory and to improve data sharing among the services, including implementing data exchange standards, developing a plan for improving the accuracy and timeliness of ammunition data in the Army's LMP, enhancing DOD's ability to provide total asset visibility over conventional ammunition, and incorporating additional items as part of the services' current stratification and redistribution process. DOD concurred with all of these recommendations.