Defense Logistics Agency eyes artificial intelligence (AI) for financial reporting and inventory management
PHILADELPHIA – The U.S. Defense Logistics Agency (DLA) is reaching out to industry for artificial intelligence (AI) approaches to enhance the efficiency and accuracy of its financial reporting and audit processes.
Officials of the DLA Contracting Services Office (DCSO) in Philadelphia issued a solicitation last week for the Artificial Intelligence (AI) For Financial Reporting And Audit Processes project.
AI for military audits
These AI solutions will be for the DLA's annual financial statement and control-based audits, which today are long and expensive, often requiring manual review and analysis of large volumes of data. DLA is trying to streamline these processes to improve audit quality and reduce the workload on its personnel.
DLA manages the end-to-end global defense supply chain -- from raw material to end user disposition -- for the five military services, 11 combatant commands, other federal, state and local agencies, and U.S. allies.
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With the increasing complexity of financial reporting requirements and the massive amount of data to be managed, DLA is looking to incorporate AI into its financial reporting, enhance decision-making, and identify cost-savings.
From industry, DLA officials want to develop a prototype that resolves potential pain points, addresses operational capabilities, or presents a new approach.
Large volumes of data
Pain points are time-consuming and resource-intensive; involve manual review and analysis of large volumes of data; have the potential for human error. Proposed solutions are at Impact Level 4 (IL 4), which describes storing non-public, unclassified data, including controlled unclassified information (CUI), and requires compliance with FedRAMP High baseline and additional DoD-specific controls.
Proposed AI solutions should help identify unresolved accounting issues; modernize policies on procurements, shipments, and inventory management; perform physical counts; accumulate cost of inventory; update financial systems; design internal controls for access, configuration Management, segregation of duties, security management, and information technology interfaces.
Proposals also should consider managing and reporting the Joint Strike Fighter program; support the accuracy of environmental liabilities; monitor, report, and ensure that military components have complete and accurate beginning balances; correct problems from unsupported journal vouchers; eliminate excessive manual preparation; and aggregate all DLA inventory data into one system.
Companies interested should email solutions briefs no later than 9 April 2025 to Thomas Walsh [email protected] and Lauren Runowski [email protected]. Those with promising solutions will be invited to give presentations or submit full proposals.
Email questions or concerns to Thomas Walsh [email protected] and Lauren Runowski [email protected]. More information is online at https://sam.gov/opp/bcd40f5f210d4951abda6c36ba218296/view.
John Keller | Editor-in-Chief
John Keller is the Editor-in-Chief, Military & Aerospace Electronics Magazine--provides extensive coverage and analysis of enabling electronics and optoelectronic technologies in military, space and commercial aviation applications. John has been a member of the Military & Aerospace Electronics staff since 1989 and chief editor since 1995.
