FEMA’s Logistics Supply Chain Management System May Not Be Effective During a Catastrophic Disaster

We audited the Federal Emergency Management Agency’s (FEMA) Logistics Supply Chain Management System program. According to FEMA, the Logistics Supply Chain Management System replaced its earlier logistics operations systems to automate and track distribution better and deliver emergency supplies more dependably. FEMA also intended for the system to help track supplies provided by partners in other Federal agencies; nongovernmental organizations; state, local, and tribal governments; and the private sector. Our audit objective was to determine whether FEMA’s Logistics Supply Chain Management System is able to support Federal logistics operations effectively in the event of a catastrophic disaster. After spending about $247 million over 9 years, FEMA cannot be certain that its supply chain management system will be effective during a catastrophic disaster. FEMA estimated that the life cycle cost of the system would be about $556 million—$231 million more than the original life cycle cost estimate. According to FEMA, the Logistics Supply Chain Management System became fully operational in January 2013, which was about 19 months behind schedule. However, the system could not perform as originally planned. Specifically, it cannot interface with the logistics management systems of FEMA’s partners, nor does FEMA have real time visibility over all supplies shipped by its partners. As of March 2014, the Logistics Supply Chain Management System still had not achieved full operational capability. We attribute these deficiencies to inadequate program management and oversight by the Department of Homeland Security (DHS) and FEMA. As a result, FEMA may not be able to efficiently and effectively aid survivors of catastrophic disaster.