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DOD's High-Risk Areas: Actions Needed to Reduce Vulnerabilities and Improve Business Outcomes

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DOD and DOE have recognized they face challenges in the selected high risk areas we have outlined today and have taken some steps to address these challenges. However, the current fiscal climate presents an imperative for both agencies to refocus management attention and commitment at the highest levels and to aggressively take additional actions to achieve greater progress in the key business areas that underpin the ability to achieve mission success. As DOD moves forward, among other things, it will need to continue to reform its approach to acquiring major weapon system programs, fundamentally reexamine its reliance on contractors as well as take action to better size and train its contractor workforce, and develop and implement viable strategies for managing its supply chain and improving its financial management. For DOEs NNSA, it is important that actions be taken to improve contract and project management in order to reverse the historical trend of schedule delays, cost growth, and increased risks in its major projects. As DOD and DOE compete for resources in a constrained fiscal environment, they can no longer afford to miss opportunities to achieve greater efficiencies and free up resources for higher priority needs. Furthermore, because of the complexity and magnitude of the challenges facing DOD in transforming its business operations, it will need strong and sustained leadership, as well as sound strategic planning to guide and integrate its efforts.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis
  • Logistics, Military Facilities and Supplies

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