Administration
Fact Sheet
Defense Management: Opportunities Exist to Improve DOD's Reform Efforts
What GAO Found
The Department of Defense (DOD) has long sought to reform its enterprise business operations—such as its processes to manage contracts, finances, and supply chain— but faces challenges in improving department-wide management. DOD has taken some actions to improve its business operations data, but remains limited by the lack of reliable cost data, affecting its ability to monitor and inform its reform efforts. Having reliable data to identify baseline costs of the department's business and management functions and to measure progress has been a key challenge facing DOD, but one the department is trying to address. As GAO reported in November 2020, DOD has made progress in setting baseline costs of certain activities, such as logistics and real estate management. Further, DOD has ongoing efforts to develop baselines for all of the department's enterprise business operations that should enable it to better monitor reform progress. However, DOD needs better data about how it performs its business functions. For example, in September 2018, GAO reported that DOD's efforts to reduce inefficiencies in human resources services were hampered by inconsistent performance data across the six organizations that provide these services. DOD has ongoing efforts to address GAO's recommendations.
DOD still needs clear roles, responsibilities, authorities and dedicated resources to support reform. GAO has found that demonstrating sustained leadership commitment—including through ensuring that those responsible for leading change have clearly defined and documented roles, responsibilities, and authorities—is imperative for successful business transformation. GAO has assessed many of DOD's organizational structures over the decades, including the recently eliminated Chief Management Officer (CMO) position. GAO found that, while Congress had given the CMO both significant responsibilities and authorities, DOD had not resolved unanswered questions about how those authorities would be carried out, nor communicated the CMO's roles and responsibilities department-wide. GAO also identified instances where CMO reforms were hampered by a lack of resources. As DOD moves to an organization without the CMO position, which was eliminated in 2021, clarifying the roles and responsibilities of those tasked with managing business reform remains important.
DOD could also improve its efforts to reliably demonstrate progress toward meaningful reform. DOD has reported achievements from some of its department-wide efforts, such as its reported $37 billion in savings from fiscal years 2017 to 2021. However, GAO reported in November 2020 that while DOD's reported savings were largely reflected in its budget materials, the underlying analyses were not always well documented and the savings were not always consistent with the department's definitions of reform. For example, one reform initiative was based on delaying military construction projects that, according to DOD officials, allowed DOD to fund higher priorities. If a delayed project is still planned, however, the costs will likely be realized in a future year and are not a reflection of business process reform. DOD concurred with GAO's recommendations to establish a process to standardize development and documentation of such cost savings, and ensure that reported savings are consistent with the department's definitions of reform.
Why GAO Did This Study
DOD spends billions of dollars each year to maintain key business operations and defense-wide agencies and programs intended to support the warfighter, including systems and processes related to the management of contracts, finances, the supply chain, support infrastructure, and weapon systems acquisition. The department's approach to transforming these business operations is linked to its ability to perform its overall mission, directly affecting the readiness and capabilities of U.S. military forces.
This testimony summarizes GAO's past work related to DOD's efforts to improve the management of its business operations. Specifically, this testimony discusses DOD's efforts to (1) improve data and baselines to monitor and inform reform efforts; (2) establish clear roles, responsibilities, and authorities for leading reform efforts, and dedicate resources to these efforts; and (3) reliably demonstrate progress in its reform efforts. This statement is based on GAO's body of work issued from 2017 through 2020 on DOD management and business reform issues.
A View of SpaceX Crew Dragon Endeavour Approaching the Station
This image from April 24, 2021, shows the SpaceX Crew Dragon Endeavour as it approached the International Space Station.
Press Briefing by Press Secretary Jen Psaki
President Biden Delivers Remarks on the COVID-19 Response
Press Briefing by White House COVID-19 Response Team and Public Health Officials
On the Occasion of Koningsdag in the Netherlands
Press Statement
South African Freedom Day
Press Statement
Sierra Leone National Day
Press Statement
Togo’s National Day
Press Statement
Former Minister of Industry and Member of Parliament of Barbados Sentenced for Laundering Bribes
A former Minister of Industry and elected member of Parliament of Barbados was sentenced today to two years in prison for his role in a scheme to launder bribe payments from a Barbadian insurance company through bank accounts in New York.
American Contractor Sentenced for Theft of Government Equipment on U.S. Military Base in Afghanistan
An American military contractor was sentenced today to 51 months in prison for her role in a theft ring on a military installation in Kandahar, Afghanistan.
Two California Men Indicted in Hate Crimes Case Alleging They Attacked Family-Owned Restaurant and Threatened to Kill the Victims Inside
A federal grand jury in Los Angeles has indicted two Los Angeles-area men on conspiracy and hate crime offenses for allegedly attacking five victims at a family-owned Turkish restaurant while shouting anti-Turkish slurs, hurling chairs at the victims and threatening to kill them.
Cameroonian Citizen Extradited from Romania to Face Covid-19-Related Fraud Charges
A citizen of Cameroon was extradited to the U.S. yesterday to face federal charges for his alleged involvement in a fraud scheme perpetrated against American consumers.
New York Man Pleads Guilty to Trafficking Exotic African Cats
Former Attorney for Municipalities in Puerto Rico Sentenced for Bribery
A former attorney for three municipalities in Puerto Rico was sentenced today to 10 years in prison after he was convicted of four counts of bribery with respect to programs receiving federal funds.
Readout of U.S. Attorney General Merrick B. Garland’s Call with Mexico Attorney General Alejandro Gertz Manero
North Carolina Woman Sentenced for Production and Distribution of Child Pornography
A North Carolina woman was sentenced Monday to 50 years in prison followed by 20 years of supervised release for production and distribution of child pornography.
CBP Officers Seize Over $4.5 Million of Marijuana at Pembina Port of Entry
CBP officers inspected the shipment manifested asstraw to discover 2,796 pounds of marijuana withinthe shipment. PEMBINA, N.D. — U.S. Customs and Border Protection (CBP) Office of Field Operations officers at the Pembina Port of Entry targeted a...
CBP Agriculture Specialists Prevent Destructive Foreign Pests from Entering the United States
According to APHIS, the Longhornbeetle is a destructive pest ofwood, causing millions of dollarsof damage annually tothe timber industry.PEMBINA, N.D. — U.S. Customs and Border Protection Agriculture Specialists (CBPAS) issued 214 emergency action...