Millions of Dollars Can Be Saved by Improved Management of Aircraft Carrier Inventories

LCD-78-221: Published: Dec 22, 1978. Publicly Released: Dec 22, 1978.

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During a recent 2-year period, Atlantic and Pacific Fleet aircraft carriers reported inventory excesses and shortages averaging $154 million and $216 million respectively. In studying the problem for the Department of Defense, GAO found the cause of the conditions to be inventory and management control problems.

Specific examples were cited by GAO where inaccurate inventory records caused untimely or unnecessary reorders of supplies. In most cases, equipment was ordered that was already part of the carrier's inventory or could have been transferred from overstock on other carriers. Aircraft carrier inventory allowances for aviation items were overstated on procurement reports because they were based on usage data as much as 8-years old.

Recommendation for Executive Action

  1. Status: Closed

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

    Recommendation: The solution to the Navy's procurement problems lies in improved shipboard management to insure more stringent requisitioning controls and more timely and accurate updating of inventory records. Accurate recording of inventory data will result in more accurate procurement analysis for the entire program. To make these changes effective, high level management must take a more active role in controlling procurement for all the Navy's carriers. The estimated savings to the Navy over an 18-month period would be $114.8 million.

    Agency Affected:

 

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