Department of Defense Spare Parts Procurement Practices

GAO discussed the Department of Defense spare parts procurement practices, focusing on the use of computer-generated information to identify unwarranted spare parts price increases. GAO conducted reviews of procurement practices at several locations and concluded that: (1) computers are or will be technically current; (2) the software is generally outdated; (3) the computer-generated products and information for use by procurement officials are limited; and (4) the computer capabilities designed to identify and prevent unwarranted price increases range from limited to none. GAO supports the services' improvement of initiatives to increase buyer's productivity, expand spare parts competition, and help identify unwarranted price increases. GAO believes that pricing reviews and attention to suspected overpricing should be considered when the buyer's performance is being evaluated.