**GAO-09-1040T**                      Published: Sep 24, 2009. Publicly Released: Sep 24, 2009.                  

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## Highlights

The nation's ability to project and sustain military power depends on effective logistics. As the Department of Defense's (DOD) largest combat support agency, providing worldwide logistics support in both peacetime and wartime, the Defense Logistics Agency (DLA) supplies almost every consumable item the military services need to operate, from Meals Ready-to Eat to jet fuel. Given current budgetary pressures and the crucial role DLA plays in supporting the military service in the United States and overseas, it is vital that DOD ensure DLA is getting value for the commodities and services it acquires. The committee asked GAO to identify the challenges DOD faces in ensuring DLA gets value for the taxpayer's dollar and obtains quality commodities in a cost-efficient and effective manner. This testimony focuses on sound practices GAO has identified regarding obtaining value when contracting and how they can also apply to DLA's acquisition of commodities. GAO has made numerous recommendations aimed at improving DOD's management and oversight of contractors, and DOD has concurred with many of them. GAO is not making any new recommendations in this testimony.

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## Topics

National Defense

Best practicesContract administrationContract costsContract oversightContract performanceContracting officersDefense budgetsDefense procurementDepartment of Defense contractorsEmployee trainingInventory controlLogisticsMilitary budgetsMilitary inventoriesMilitary procurementMonitoringProcurement practicesRequirements definitionCost effectiveness analysisCommodity contracts