Defense Logistics: Marine Corps and Army Reset Liability Estimates   [open pdf - 10MB]

From the Document: "Since 2001, the Marine Corps and Army have spent billions of dollars to reset--repair, recapitalize, or replace--equipment, including equipment returning from operations in Iraq and Afghanistan. These services have identified a multibillion dollar reset liability as they seek to complete their reset efforts. Senate Committee Report 113--176, accompanying S.2410, a bill for the National Defense Authorization Act for Fiscal Year 2015, included a provision for GAO [Government Accountability Office] to provide the Senate Armed Services Committee with an assessment of the Marine Corps' and Army's reset liability estimates. This report describes the processes the Marine Corps and Army use in producing reset liability estimates, including the extent to which the services use a consistent definition of reset in producing reset liability estimates, and use similar cost factors and assumptions in producing reset liability estimates. To conduct this work, GAO reviewed Marine Corps and Army guidance. GAO also reviewed documentation of reset activities and budget documentation from the Office of the Under Secretary of Defense (Comptroller), and testimonies and statements of senior DOD officials before congressional committees concerning reset activities. To obtain information about the production of reset liability estimates, GAO interviewed officials from service headquarters and commands responsible for reset decisions as well as officials from the Office of the Secretary of Defense, Office of Cost Assessment and Program Evaluation. To illustrate similarities and differences between how the Marine Corps and Army produce their reset liability estimates, GAO selected an equipment item used in combat by the two services. Specifically, GAO selected the 155MM towed howitzer after considering major ground equipment items that are common to both services and that are being reset as they return from Afghanistan."

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