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Defense Management: Action Needed to Advance Progress on Reform Efforts : Government Accountability Office (GAO) , October 18, , 2023

October 18, 2023

Government Accountability Office (GAO)

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From the report: "The Department of Defense (DOD) spends billions of dollars each year to maintain key business operations intended to support its mission, including systems and processes related to the management of contracts, finances, the supply chain, support infrastructure, and weapon systems acquisition. These operations are linked to the department’s ability to perform its overall mission, and we have previously identified achieving greater efficiencies in defense business operations as one of the key mission challenges facing the department. In addition, DOD’s approach to business transformation is among the areas identified in GAO’s High-Risk report. In our April 2023 High Risk update, we rated DOD’s approach to business transformation as meeting our criteria for leadership commitment—an increase over our previous rating—and having an action plan; we continued to rate DOD’s approach as partially meeting our criteria in capacity, monitoring, and demonstrated progress. The William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 repealed the position of Chief Management Officer, which oversaw DOD’s business operations and reform efforts. In addition, section 911 of the Act, codified at 10 U.S.C. § 125a, required DOD to take steps to reform the department to improve (1) the efficacy and efficiency of the department and (2) the ability of the department to prioritize reform efforts and assess the costs and benefits of reform. It also directs DOD to develop and implement policies, guidance, and a reporting framework to measure the progress of its reform efforts. In addition, it includes a provision for us to evaluate the extent to which DOD’s policies, guidance, and reporting framework will enable consistent measurement of progress in reform and prioritization of reform of the department. This report examines how DOD manages and reforms its business operations, including the extent to which it has established organizations and guidance and is using data in these efforts."

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