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GAO-15-378R 1 (2015-04-03)

handle is hein.gao/gaobaaitl0001 and id is 1 raw text is: c AO U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 April 3, 2015 The Honorable Robert Wittman Chairman The Honorable Madeleine Z. Bordallo Ranking Member Subcommittee on Readiness Committee on Armed Services House of Representatives Army Logistics: Global Combat Support System-Army Is Supporting Requirements at Selected Units The Global Combat Support System-Army (GCSS-Army) is among a new generation of information systems that are replacing older legacy systems in the Department of Defense (DOD). The Army initiated GCSS-Army in 2003 with the intent of replacing several separate information systems used to manage logistics at Army tactical units, such as ordering and tracking supplies, maintaining accountability of organizational equipment, and monitoring unit maintenance. Once fully fielded, GCSS-Army will manage $216 billion in assets on an annual basis and, according to DOD officials, is intended to be a key component of the department's plan for correcting financial management deficiencies and ensuring that its financial statements are validated as audit ready by September 30, 2017, as called for by the National Defense Authorization Act for Fiscal Year 2010.1 As an information system that supports the Army's management of its supply chain, GCSS- Army intersects two long-standing areas on our high-risk list:2 (1) DOD's supply chain management, which has been on the high-risk list since 1990 because of challenges related to managing inventory, tracking materiel distribution, and maintaining asset visibility; and (2) DOD's business systems modernization program, which has been on the high-risk list since 1995 because of the size, complexity, and significance of related modernization efforts. We have also previously assessed the schedule and cost estimates for GCSS-Army.3 1The National Defense Authorization Act for Fiscal Year 2010, Pub. L. No. 111-84, div. A, § 1003(a), (b) (Oct. 28, 2009). Further, the National Defense Authorization Act for Fiscal Year 2014, Pub. L. No. 113-66, div. A, § 1003 (Dec. 26, 2013), also mandates a full audit of DOD's fiscal year 2018 financial statements, and that those results be submitted to Congress by March 31, 2019. 2GAO, High-Risk Series: An Update, GAO-1 5-290 (Washington, D.C.: February 2015). 3In September 2014, we recommended that the Army update its schedule and cost estimates for GCSS-Army to fully incorporate best practices. DOD concurred with our recommendation to improve its schedule and identified actions the Army had taken, and we agreed that, if effectively implemented, these actions should fulfill the intent of our recommendation. DOD also concurred with our recommendation to update its cost estimate and stated that the Army had completed actions to improve its cost estimate; however, we stated that these actions were not fully responsive GAO-1 5-378R Army Logistics Page 1