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News | Oct. 16, 2023

Press Release: Audit of the Defense Logistics Agency (DLA) Storage and Care of Repair Parts and Components for the Army Ground Combat Systems (GCS) (DODIG-2024-001)


Inspector General (IG) Robert P. Storch announced today that the Department of Defense Office of Inspector General (DoD OIG) released the report, “Audit of the Defense Logistics Agency (DLA) Storage and Care of Repair Parts and Components for the Army Ground Combat Systems (GCS).” The report highlights deficiencies with how two DLA Distribution Centers stored and cared for $1.96 billion worth of repair parts and components for Army Ground Combat Systems.

“We found that nearly $1.31 billion (67 percent) in parts and components are in immediate danger of degrading and that the improper storage and care of parts and components created safety hazards that could potentially lead to injuries among DLA personnel,” said IG Storch.

DLA Distribution is responsible for protecting materiel from environmental conditions by providing proper storage facilities, preservation, packing, marking, or a combination of those measures and for the execution of the Care of Supplies in Storage (COSIS) program. As of July 7, 2022, DLA Distribution Centers stored more than two million individual GCS repair parts and components, valued at more than $3.8 billion.

The audit concluded that, due to DLA’s improper storage and care, $1.80 billion (92 percent) of Army GCS repair parts and components, were deteriorating or at increased risk of deterioration. The continued improper storage and care of GCS items may result in increased restoration or replacement costs, which would require additional funding and time, and negatively impact operational readiness.

“The DoD OIG is committed to conducting oversight that ensures there are adequate internal controls are in place to protect Army Ground Combat System repair parts and components in DLA storage from the environment and are ready to be used when needed,” added Storch.

The DoD OIG made several recommendations to address the identified deficiencies, including that the DLA Director rectify COSIS deficiencies, update COSIS inspection and warehousing guidance, and institute a formal training program to ensure adequate COSIS. The DoD OIG also recommended that the Commanding General of the Army Tank-Automotive Armaments Command require materiel managers to conduct periodic visual inspections of GCS materiel in DLA storage.