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This document is the final report on RAND's evaluation of the Army's expanded Integrated Sustainment Maintenance (ISM-X) demonstration. The report is divided into three major parts. First, it presents statistical results on the measurement and conduct of the demonstration and in some cases compares those results to performance before the demonstration. The discussion then turns to the economic issues involved in assessing the costs and benefits of ISM and ISM's interaction with the Army's financial systems. Finally, the report draws some inferences about the Army's ability to support contingency operations under an ISM-based logistics system. An appendix discusses the participation or potential participation of the Reserve Components. The introductory section of the report presents the history of ISM and sets the context for the evaluation results. The concluding section contains RAND's cautions for ISM implementation. Although ISM has accomplished some significant goals, some remaining problems will keep it from achieving its full potential unless they are resolved. Specifically requiring attention are the financial policies and incentives surrounding logistics operations, the management of the ISM program, support to contingency operations, and long-term decisions about the logistics infrastructure.

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