Supply Chain News / eSupply Chain

Air Force Cancels $1B Logistics Program

November 27, 2012
The U.S. Air Force has canceled a logistics contract after spending $1 billion and getting what it called “negligible” value.

The Expeditionary Combat Support System (ECSS) program is “no longer a viable option” for meeting a fiscal 2017 deadline for having auditable books, Air Force spokesman Ed Gulick said in a statement. “Therefore, we are canceling the program and moving forward with other options.” The cancellation will cost up to 115 contract employees their jobs and require the “realignment” of 55 military personnel and government civilian employees, he said.

The ECSS program, underway since 2005, was supposed to save the Air Force billions of dollars by streamlining supply chain management and providing an integrated approach for buying, moving and managing equipment. But the service fired the lead contractor, Computer Sciences Corp., in March. The next month, Air Force Controller Jamie Morin told a Senate subcommittee that he was “personally appalled” by how little the Air Force had gotten for its investment.

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