Air Force Requirements:

Requirement Computations for Aircraft Consumable Items Can Be Improved

NSIAD-91-201: Published: Jul 17, 1991. Publicly Released: Jul 17, 1991.

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Pursuant to a congressional request, GAO examined the accuracy of requirement computations for aircraft consumable items managed through the System Support Division of the Air Force stock fund, focusing on whether the Air Force could achieve procurement economies for such items by improving requirement computations.

GAO found that: (1) the consumable item requirements computation process improperly included backordered requirements in computing reorder and termination levels; (2) as of January 31, 1991, the Air Force's duplication of backordered items in reorder level computations has resulted in $446 million in overstated requirements, which could increase fiscal year (FY) 1992 procurements by $107 million; (3) although some critical backorder cases require additional stocks, procurements based on duplicated backorders did not correct the shortage situation any faster than the system could have without the duplication and in some cases contributed to on-order excesses; (4) as of January 31, 1991, the Air Force's requirement computations took into consideration depot maintenance requirements valued at $363 million, but did not consider $217 million of available assets that were applicable to those requirements; and (5) by eliminating the duplication and considering all applicable assets in computing requirements, the Air Force could reduce FY 1992 procurements by as much as $159 million.

Matter for Congressional Consideration

  1. Status: Closed - Implemented

    Comments: The Air Force does not intend to take corrective action on the recommendation and its reasons are the same as those cited and rebutted in the report. As a result, the Subcommittee staff asked GAO to perform a detailed follow-up review and determine the impact of the Air Force's failure to take the recommended corrective actions on its FY 1993 stock fund budget.

    Matter: Congress should consider a reduction in the Air Force FY 1992 stock fund budget request to reflect the overstatement of requirements and the possibility of unnecessary procurements.

Recommendations for Executive Action

  1. Status: Closed - Not Implemented

    Comments: The Air Force does not intend to take corrective action on the recommendation and its reasons are the same as those cited and rebutted in the report. As a result, the Subcommittee staff asked GAO to perform a detailed follow-up review and determine the impact of the Air Force's failure to take the recommended corrective actions on its FY 1993 stock fund budget.

    Recommendation: The Secretary of the Air Force should direct the Commander, Air Force Logistics Command (AFLC), to make the necessary changes to requirements computation policy and procedures for aircraft consumable items to ensure that backordered recurring demands are not counted twice in the computation of reorder and on-order termination levels.

    Agency Affected: Department of Defense: Department of the Air Force

  2. Status: Closed - Not Implemented

    Comments: The Air Force does not intend to take corrective action on the recommendation and its reasons are the same as those cited and rebutted in the report. As a result, the Subcommittee staff asked GAO to perform a detailed follow-up review and determine the impact of the Air Force's failure to take the recommended corrective actions on its FY 1993 stock fund budget.

    Recommendation: The Secretary of the Air Force should direct the Commander, AFLC, to make the necessary changes to requirements computation policy and procedures for aircraft consumable items to ensure that on-hand assets applicable to depot maintenance requirements are considered in requirement computations.

    Agency Affected: Department of Defense: Department of the Air Force

 

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