Book Description

This report is one in a series that addresses the accuracy and reliability of maintenance, repair, environmental, and construction requirements for bulk fuel storage and delivery systems infrastructure. The Defense Logistics Agency is responsible for DoD fuel inventory management, including fuel procurement and sales, and environmental oversight. The Defense Logistics Agency funds fuel-related infrastructure requirements from two different funding sources. Maintenance and repair projects are funded through the Defense Working Capital Fund - a revolving fund that is continually replenished by a surcharge added to the sale price of fuel. Renovations and major construction projects are funded from the Defense Logistics Agency military construction appropriations. The Military Departments are responsible for the operations of the petroleum facilities under their cognizance. The Military Departments are also responsible for reviewing, validating, and prioritizing maintenance, repair, and environmental projects in accordance with DoD guidance before submitting the projects to Defense Logistics Agency for review and funding. Although the Military Departments are not prohibited from funding fuel-related infrastructure requirements, senior Army management has recognized and emphasized the importance of implementing review and validation procedures to maximize use of available Defense Logistics Agency funds so that Army operations and maintenance funds can be put to better use. Our overall objective was to evaluate the accuracy and reliability of DoD maintenance, repair, environmental, and construction requirements for bulk fuel storage and delivery systems infrastructure. Specifically, we evaluated requirements for replacing six bulk fuel storage tanks located at Fort Hood, Texas. We also reviewed the adequacy of the management control program as it applied to the audit objective.