National Defense:

Submarine Supply Support Costs Can Be Greatly Reduced without Impairing Readiness

LCD-76-237, Jun 7, 1977

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The Navy overinvests tens of millions of dollars yearly in inventories of repair parts for its 106 nuclear submarines because of weaknesses in establishing and maintaining inventory levels on board submarines and tenders.

Over a 5-year period, the Navy can save as much as $106.9 million in future investments in supplies for submarines and tenders. This can be done while still keeping the submarines and tenders ready for combat. The accuracy of usage data needs to be improved and more realistic safety levels and order-ship times could be used in computing stock requirements. Submarine tenders can cancel and redistribute millions of dollars of excess stock each year by improving policies and practices.

Status Legend:

More Info
  • Review Pending-GAO has not yet assessed implementation status.
  • Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.
  • Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.
  • Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.
    • Review Pending
    • Open
    • Closed - implemented
    • Closed - not implemented

    Recommendation for Executive Action

    Recommendation: The Secretary of Defense should direct the Navy to eliminate initial estimates of parts needed when updating replacement rates and rely more on the last 2 years' data if the rates are not updated annually; require submarine tenders based in the continental United States to adopt a more stringent usage criterion for establishing and retaining stock levels; require a number of deployed submarines and tenders to test this more stringent criterion for 1 year under operating conditions; and change its policy so that submarine tenders will limit increases in stock levels to quantities needed for current operations.

    Agency Affected:

    Status: Closed

    Comments: Please call 202/512-6100 for additional information.