DOD's High-Risk Areas: High-Level Commitment and Oversight Needed for DOD Supply Chain Plan to Succeed Page: 4 of 15
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economical, efficient, and effective manner possible. Senior
administration leaders and advisors-including the Secretary of Defense,
the nominee for Deputy Secretary of Defense, and the Deputy Director of
the Office of Management and Budget-have recently demonstrated a
commitment to addressing DOD's management challenges. To his credit,
OMB's Deputy Director for Management and his staff have been steadfast
in their message to DOD about the need for meaningful action and follow-
through on resolving problems associated with all 14 of DOD's high-risk
areas. For supply chain management, OMB has worked with the Under
Secretary of Defense for Acquisition, Technology and Logistics and his
staff to help DOD develop an action plan for improving supply chain
management that could reduce its vulnerability to fraud, waste, abuse, and
mismanagement and place it on the path toward removal from our list of
high-risk areas. OMB has proposed using DOD's plan describing how it
expects to address one of its high-risk areas as a template for other areas
on our high-risk list.
During the development of DOD's plan, we were frequently consulted by
OMB and DOD. Based on our analysis of prior reports, we suggested three
areas to DOD that would be critical to addressing our supply chain
management concerns. After consultation with OMB, DOD identified these
three as focus areas for the plan. They are
* improving material requirements forecasts,
* improving distribution of material, and
* improving asset visibility.
In response to DOD's request for our thoughts on its draft plan, we
focused on key elements that needed to be in the plan based on work we
have done, recommendations we have made, and our criteria for removal
from our list of high-risk areas. We provided OMB and DOD with GAO and
DOD reports citing deficiencies in these areas. As guidance for formulating
the supply chain management improvement plan, we also provided OMB
and DOD with reports containing our criteria for assessing agencies'
progress toward resolving a high-risk problem and determining whether to
remove the high-risk designation. We also provided examples where other
agencies have succeeded in having the high-risk designation removed.
Today, I would like to provide our perspectives on (1) the importance of
supply chain management in DOD; (2) why we have listed it as a high-risk
area; (3) our assessment of DOD's plan to improve supply chain processes;
and (4) our plans to follow up on DOD's efforts.
Here’s what’s next.
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United States. Government Accountability Office. DOD's High-Risk Areas: High-Level Commitment and Oversight Needed for DOD Supply Chain Plan to Succeed, text, October 6, 2005; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc293883/m1/4/: accessed January 24, 2019), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.