Increased Use of Available Aviation Assets in New Production Can Save Millions

LCD-79-201: Published: Mar 5, 1979. Publicly Released: Mar 5, 1979.

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Within the Department of the Navy, the Naval Air Systems Command (NAVAIR) is responsible for the procurement of Navy aircraft, aircraft engines, and certain major aeronautical equipment. The Navy Aviation Supply Office (ASO) is responsible for the supply management of some 340,000 aeronautical spare parts and assemblies used to support the NAVAIR procured items.

The Navy is incurring procurement and inventory holding costs amounting to millions of dollars annually which could be avoided by furnishing aviation items in long or surplus supply to contractors for use in producing new aviation equipment.

Recommendation for Executive Action

  1. Status: Closed

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

    Recommendation: The Secretary of Defense should direct the Navy to: (1) establish a monitor at NAVAIR to assure that screening is being performed as required and that results are measured; (2) have NAVAIR and the ASO work with contractors to establish guidelines that will assure greater use of available long supply assets; (3) have NAVAIR and ASO adopt the more desirable features of the Air Force system for supplying available aviation system assets to production contractors; (4) revise the ASO disposal screening program to prevent the disposal of assets needed for new production requirements; and (5) have NAVAIR and ASO maintain statistics on costs incurred in identifying and providing contractors with long supply assets.

    Agency Affected:

 

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