Summary: In response to a congressional request, GAO reviewed the Department of the Air Force's Logistics Management Systems (LMS) Modernization Program and the acquisition strategy it used in procuring the program.
GAO found that the Air Force: (1) reduced the risk of overall developmental problems because the program is smaller in scope and less complex than an earlier system; (2) did not complete its initial planning activities, which increased the potential for cost increases, schedule delays, and ineffective performance; (3) does not have an effective method to ensure the accurate measurement of project costs, schedules, and performance status; (4) approved eight of the nine projects without feasibility studies; (5) did not regularly validate contractor cost and schedule performance reports; and (6) should have requested delegations of procurement authority in order to avoid possible future program delays. GAO believes that, although the Air Force has taken actions on some projects to alleviate planning weaknesses, project costs may greatly exceed current estimates unless it institutes controls over contractor status reporting and system effectiveness.
