Because future threats the nation may face are uncertain, and with many competing demands on its resources, the Department of Defense (DoD) has begun to transform its military capabilities. This transformation will involve not only the acquisition of new weapon systems, but also the ways in which the Armed Forces think, train, and fight. In 2003, DoD estimated that $263 billion would be allocated from fiscal years 2004 through 2009 for transformation efforts. In this report, GAO does the following: (1) describes DoD's strategy to transform joint military capabilities; (2) assesses the extent to which DoD has established clear leadership, accountability, and a mechanism to integrate transformation efforts; and (3) assesses the extent to which DoD's framework incorporates results-oriented management tools to guide transformation efforts. GAO makes recommendations designed to establish clear leadership, accountability, and a more results-oriented management framework to guide DoD's transformation of military capabilities. In oral comments, the Office of Force Transformation disagreed with these recommendations but did not address the weaknesses described in this report or provide convincing evidence to show the recommendations are not warranted. Therefore, GAO continues to believe the recommendations are appropriate.

Defense Transformation: Clear Leadership, Accountability, and Management Tools Are Needed to Enhance DOD's Efforts to Transform Military Capabilities

Fed. agencies are relying increasingly on contractors to perform their missions. With hundreds of billions of tax dollars spent each year on goods & services, it is essential that fed. acquisition be handled in an efficient, effective, & accountable manner. However, many organizations continue to identify systemic weaknesses in key areas of acquisition. This framework was developed to enable high-level, qualitative assessments of the strengths & weaknesses of the acquisition function at fed. agencies. It consists of 4 interrelated cornerstones that are essential to an efficient, effective, & accountable acquisition process: organizational alignment & leadership, policies & processes, human capital, & knowledge & info. management.

A report to congressional committees regarding the DoD¿s progress in implementing GAO's recommendations over the last 7 years. During this period of time, GAO issued 637 reports to DoD that included 2,726 recommendations. By law, agencies, including DoD, are required to submit written statements explaining actions taken in response to recommendations that have been made. This report contains the results of an analysis on the implementation status of the 2,726 recommendations made to DoD in reports issued during FY 2001 through 2007. Includes examples of related financial accomplishments reported for the period, based on DoD-related work. Illustrations.