Defense Logistics

The Logistics Modernization Program (LMP) is an Army business system that is intended to replace the aging Army systems that manage inventory and depot repair operations. Through 2009, the Army obligated more than $1 billion for LMP. LMP was originally scheduled to be completed by 2005, but after the first deployment in July 2003, the Army delayed fielding because of significant problems. The Army has since decided to field the system in two additional deployments: the second deployment occurred in May 2009, and the third deployment is scheduled to occur in October 2010. GAO was asked to evaluate the effectiveness of the Army's management processes in enabling the second deployment sites to realize the full benefits of LMP. In order to improve the third deployment of LMP, GAO is recommending that the Secretary of the Army direct the Commanding General, Army Materiel Command, to (1) improve testing activities to obtain reasonable assurance that the data used by LMP can support the LMP processes, (2) improve training for LMP users, and (3) establish performance metrics to enable the Army to assess whether the deployment sites are able to use LMP as intended. The Army concurred with our recommendations.