Submarine Supply Support Costs Can Be Greatly Reduced without Impairing Readiness
LCD-76-237, Jun 7, 1977
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.
- Review Pending
- 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.
Comments: Please call 202/512-6100 for additional information.