Summary: GAO reviewed the Defense Logistics Agency's (DLA) management functions in order to: (1) examine its mission, resources, organization, policies, and management objectives, and the various mechanisms it uses to direct, control, and evaluate its operations; (2) identify problems DLA experienced in carrying out some of its major activities; (3) determine how DLA responded to these challenges; and (4) recommend measures to strengthen its management processes.
DLA manages over two million supply items, procures supplies costing billions of dollars every year, maintains an inventory valued at over $10 billion, administers over $186 billion in government contracts, and manages many weapon system spare parts. GAO found that: (1) because of the scope and size of its activities, DLA depends on automation for financial and other management systems; (2) many automated DLA systems, such as supply support, contract administration, and financial management, which depend on upgraded information systems, need modernization; (3) control weaknesses and accounting data reporting errors cause inaccuracies in supply center records and contract administration; and (4) DLA does not have an effective plan for acquiring and managing information resources, but has initiated organizational and managerial changes to improve planning for and cost control over automated systems. GAO also found that: (1) productivity measurement standards cover the majority of DLA personnel; (2) the productivity program has top management support, quantitative goals for improvement, and active employee involvement; and (3) the DLA 4-year productivity growth rate is slightly higher than the trend necessary to achieve the presidential goal for improvement for 1992. The Department of Defense (DOD) and the military services feel that the Weapon System Support Program is effective; however, DLA needs more data from the military services on system and item priorities to ensure that the program is conducted economically and effectively.
