Defense Logistics: Marine Corps and Army Reset Liability Estimates

Abstract : Since 2001, the Marine Corps and Army have spent billions of dollars to reset equipment, including equipment returning from operations in Iraq and Afghanistan. Reset refers to the repair, recapitalization, or replacement of equipment.1 Reset can include depot (sustainment) and field-level maintenance and supply activities that restore and enhance combat capability to equipment used in combat operations. The Marine Corps and Army have identified a multibillion dollar reset liability as they seek to complete their reset efforts.2 In April 2014, Marine Corps leadership stated that the Marine Corps reset liability declined from an estimated $3.2 billion to a remaining $1.0 billion as the Marine Corps makes progress in completing reset.3 At that time, the Army projected a need for just over $6.0 billion for reset.4 As of February 2015, Marine Corps officials anticipate they will complete their reset efforts in fiscal year 2017. Army reset is expected to continue 2 to 3 years after the end of major overseas operations; consequently, there is not a specific end date for Army reset. Service officials have stated that inadequate reset funding can directly decrease military readiness. For example, in April 2014, a senior Army official described a fully funded Army reset program as critical to ensuring that equipment worn and damaged by prolonged conflict is recovered and restored for future Army requirements.5 The official testified that the Army had deferred equipment reset amounting to more than $700 million and that in the event of a crisis the Army would deploy units at a significantly lower readiness level.6 We have previously reported on challenges affecting the reset of Marine Corps and Army equipment. For example, in 2007 we reported about the importance of detailed information on reset expenditures and obligations, and concluded that Congress needed visibility to exercise effective oversight of reset programs.7