The Government Accountability Office has called out the limited visibility into the Department of Defense’s global supply chain.
DOD, according to a new GAO report, has over 200,000 suppliers involved in manufacturing advanced weapons and non-combat goods and equipment such as batteries. Although the Pentagon collects partner information, efforts across the department to improve supply chain transparency are uncoordinated.
The congressional watchdog warned that reliance on foreign suppliers poses national security risks for the DOD.
Defense Supply Chain Visibility Challenges
DOD has made efforts to increase transparency across its supply chain and reduce reliance on foreign sources. The Pentagon has already identified steps it could take to mitigate foreign dependency, such as adopting leading commercial practices for supply chain visibility.
GAO pointed out that the Defense Department has not assigned a single organization to oversee the application of leading practices for supply chain visibility. The watchdog also noted that the DOD has yet to identify resources, priorities and time frames for its plan to integrate supply chain transparency efforts across the department.
Moreover, the report revealed that defense officials propose contractually obligating suppliers to submit information related to foreign dependency risks. GAO shared that some DOD officials oppose the proposal, saying that it may be too costly and suppliers may not be willing to share foreign dependency information.
GAO urged the Pentagon to conduct cost analyses and identify challenges of requiring suppliers to provide foreign dependency information.
The report offers three recommendations, all of which DOD concurred with.
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