Prepositioned equipment and supplies are strategic assets, along with sealift and airlift, for projecting military power. These assets include combat equipment, spare parts, and sustainment supplies that are stored on ships and on land in locations around the world to enable the rapid fielding of combat-ready forces. (App. I provides an overview of the military services’ prepositioned assets and their locations.) DOD has made significant investments in its military prepositioning programs, totaling several billion dollars in annual acquisition costs. In addition, the services have collectively used an average of over $1 billion each year to operate and maintain these assets. For example, in fiscal year 2005, the Army spent $386.1 million for storage and maintenance of prepositioned assets, including $76.5 million for assets in South Korea and $38.3 million for assets in Southwest Asia. Prepositioned assets have been used extensively to support operations in Iraq and Afghanistan. The Marine Corps used equipment from two of its three prepositioned squadrons to support these operations. The Army used nearly all of its prepositioned ship stocks and land-based stocks in Kuwait and Qatar, in addition to drawing some equipment from Europe. Military equipment and infrastructure are often located in corrosive environments that increase the deterioration of assets and shorten their useful life. The extensive and long-term deployments of U.S. troops in Southwest Asia are likely to magnify the effects of corrosion on military equipment, including prepositioned assets, because of the region’s harsh operating environment. Higher rates of corrosion result in increased repairs and replacements, drive up costs, and take critical systems out of action, reducing mission readiness. Corrosion can also reduce the safety of equipment items. Although reliable cost data are not available, estimates of corrosion costs DOD-wide have ranged from $10 billion to $20 billion annually. We have found in our prior work that DOD and the military services did not have an effective management approach to mitigate and prevent corrosion. We recommended that DOD develop a departmentwide strategic plan with clearly defined goals, measurable outcome-oriented objectives, and performance measures. DOD concurred and in December 2003 issued its corrosion strategy. According to DOD’s corrosion strategy, knowing the costs of corrosion is essential to adequately implementing the strategy, and having corrosion data helps the department learn what works so it can be more effective in reducing corrosion. In addition, the Defense Science Board in 2004 stated that “accurate and objective corrosion data collection and new incentives to reward life-cycle cost reduction efforts must be implemented” as part of an effective corrosion control program and that such data are critical “not only to understand the depth of the problem, but to enable a quantitative corrosion mitigation strategy, which is founded on fact.” The Army and Marine Corps have taken some measures to reduce the impact of corrosion on prepositioned assets, but the Army could increase its use of storage facilities for land-based assets. Prepositioned equipment drawn by Army and Marine Corps units for military operations in Iraq during 2003 had mostly been stored in humidity-controlled facilities and was reported to be in good operating condition and was not degraded by corrosion. The primary measure taken to reduce corrosion and achieve this good operating condition was the use of humidity-controlled storage facilities. However, we identified several locations where the Army is currently storing a substantial portion of its prepositioned equipment outdoors. Temporary shelters may be a feasible option to address immediate storage needs. When prepositioned equipment was drawn by Army and Marine Corps units in military operations in Iraq during 2003, it was reported to be in good working condition and was not degraded by corrosion. Army officials from the 3rd Infantry Division have stated that with the exception of rubber seals on some vehicles, prepositioned equipment entering Southwest Asia was in good shape and had minimal, if any, corrosion. These officials said they did not experience any corrosion that affected their ability to perform operations. Similarly, officials with the 1st and 2nd Marine Expeditionary Forces who used or observed the use of prepositioned equipment in Southwest Asia found it was in a high state of readiness and could not recall any instance where corrosion affected their ability to perform operations. Furthermore, officials with the 3rd Marine Expeditionary Force said the equipment on the prepositioning ship USNS Lummus that was used in a 2004 training exercise in South Korea was generally in the same good operating condition it was when first uploaded about 2 years previously. These officials stated that subsequent maintenance in August 2005 confirmed that the equipment continued to be in good operating condition based on a detailed examination of about 200 pieces of this equipment. They told us that with the exception of minor hydraulic leaks and o-ring deterioration, the equipment was generally free of corrosion problems. The primary measure to reduce corrosion of Army and Marine Corps prepositioned assets has been the use of humidity-controlled storage facilities. Most of the prepositioned equipment drawn for military operations in Iraq during 2003 had been stored, either afloat or on land, in such facilities. Under Army policy, the preferred method for storing prepositioned assets is in humidity-controlled facilities because such storage is considered highly effective in preserving equipment. Maintaining low humidity levels reduces corrosion because moisture is a primary cause of corrosion. Similarly, Marine Corps policies indicate that equipment should be sheltered in climate-controlled facilities to the greatest extent possible. Army and Marine Corps officials told us that the use of humidity-controlled facilities is effective at minimizing equipment corrosion and maintaining high readiness levels. Army equipment on prepositioning ships is stored below deck in humidity-controlled cargo space. In addition, the Army stores some of its land-based prepositioned equipment in humidity-controlled warehouses. Marine Corps prepositioned assets are stored in humidity-controlled facilities either on ships or in caves in Norway. Humidity levels, particularly on ships, are required under Army and Marine Corps guidelines to stay within a specific range on a continuous basis and are closely monitored. In addition to humidity-controlled storage, the Army and Marine Corps have taken other measures intended to help reduce the impact of corrosion on prepositioned assets. Army and Marine Corps policies require that repaired equipment be restored to good condition before being placed in prepositioned status. Specifically, Army maintenance regulations require prepositioned equipment to be maintained at “10/20” standards, the highest standard the Army has for equipment maintenance. Army maintenance regulations also provide for the use of lubricants and preservatives, as well as regular inspections. Marine Corps policy indicates that all equipment generally will be in “Code A” condition at the time it is placed in storage. Code A means the equipment is serviceable without any limitation or restriction. Marine Corps officials told us equipment meeting this standard would have little to no corrosion. Marine Corps maintenance guidance for prepositioned equipment consists of a variety of corrosion prevention and mitigation measures, including visual inspections for leaks, corrosion removal and recoating, and preservation. For equipment stored on the prepositioned ships, inspections are conducted on a periodic basis. Both Army and Marine Corps officials said corrosion is routinely treated as part of the maintenance process for restoring equipment to meet standards. We identified several locations where the Army is storing a significant amount of land-based prepositioned assets outdoors without adequate sheltering. Specifically, we found equipment being stored outdoors at Camp Carroll, South Korea; Camp Arifjan, Kuwait; and Goose Creek, South Carolina. At these locations, assets are left relatively unprotected from moisture, sand, and other elements that contribute to corrosion. Army officials noted that unprotected equipment corrodes faster and will more quickly fall below required maintenance condition standards. At Camp Carroll in South Korea, about 30 percent of the Army’s Heavy Brigade Combat Team equipment—mostly sustainment stock—is stored outdoors in an often damp and humid region. The remaining equipment is stored in humidity-controlled facilities. Army officials told us that the equipment had been poorly maintained and, as a result, experienced many significant defects and readiness shortfalls, with corrosion being one of the primary problems. These officials said some of the equipment corroded faster and more severely because of being stored outside and, as a result, the Army incurred additional maintenance costs. Army officials in South Korea noted that it costs more to maintain equipment that is stored outside in part because the equipment needs to be inspected three times more often than equipment in humidity-controlled storage. Large amounts of Army prepositioned equipment are also stored outside in Kuwait where, according to DOD and Army officials, the environment is highly corrosive because of the humid climate, sand with high salinity levels, and strong winds. As of April 2006, the Army was storing outside nearly all of its prepositioned assets (numbering about 11,000 items) in Southwest Asia. At the Army’s prepositioning afloat facility in Goose Creek, South Carolina, equipment is stored outside during the time it is not undergoing maintenance because of a lack of storage facilities. The amount of time equipment is stored outside ranges, on average, from 1 month to more than 3 months. In some cases, equipment is stored outside well over 3 months. For example, 44 M1A1 tanks and 10 fuel tankers sat outdoors for more than a year after undergoing maintenance and experienced a total of $1.2 million in corrosion-related damage. Army officials said that prolonged periods of outdoor storage as happened in this case rarely occur, but that some period of outdoor storage is expected for equipment waiting upload. Army officials acknowledged having an immediate need for additional sheltering, preferably with humidity control capability, for prepositioned equipment located in South Korea, Kuwait, and South Carolina. However, under current construction plans, additional storage facilities will not be available at all three sites until 2012 at the earliest. In South Korea and Kuwait, Army officials said that even with the additional planned storage facilities, substantial amounts of equipment will still be stored outdoors.