Supply Support Costs of Combat Ships Can Be Reduced by Millions and Readiness Enhanced

LCD-81-9: Published: Jan 15, 1981. Publicly Released: Jan 15, 1981.

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Prior reviews by GAO of the Navy's supply support of its submarine and aircraft carrier fleets disclosed that opportunities for significant reductions in inventory excesses and increased readiness exist for the Navy's fleet of combat surface force ships. Thus, GAO undertook a review of the Navy's supply support of its combat surface force ships in the Atlantic and Pacific Fleets.

In its review, GAO found that the Navy can save as much as $101 million over a 5-year period on procurements and repair of supplies and parts for combat surface force ships. This can be accomplished by improving: (1) shipboard supply management policies; (2) methods for updating shipboard inventory allowances and equipment part replacement rates; and (3) shipboard supply management practices. Additionally, GAO found that unneeded items stocked for prolonged periods by some ships were urgently needed by other ships. Thus, fleet supply readiness would also benefit from the needed improvements in ship supply management.

Recommendations for Executive Action

  1. Status: Closed

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

    Recommendation: The Secretary of the Navy should require the Ships Parts Control Center to identify and eliminate from updated inventory allowances for ships undergoing supply overhauls those parts that have a unit price of $100 or more and have not been used by the overhauled ships or by other ships of the same type for the past 4 years.

    Agency Affected: Department of Defense: Department of the Navy

  2. Status: Closed

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

    Recommendation: The Secretary of the Navy should require the Pacific Fleet Surface Force Command to adopt the Atlantic Fleet policy of monthly validation of outstanding shipboard orders for materiel and prompt cancellation, where appropriate.

    Agency Affected: Department of Defense: Department of the Navy

  3. Status: Closed

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

    Recommendation: The Secretary of the Navy should require fleet commands to establish uniform policies providing for periodic identification and prompt return to the wholesale supply system of shipboard item stock excesses valued at $50 or more during intervals between supply overhauls.

    Agency Affected: Department of Defense: Department of the Navy

  4. Status: Closed

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

    Recommendation: The Secretary of the Navy should require fleet commanders to take the necessary action to ensure that realistic order and shipping time data are used in computing stockage levels.

    Agency Affected: Department of Defense: Department of the Navy

  5. Status: Closed

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

    Recommendation: The Secretary of the Navy should require fleet commanders to make certain that acceptable levels of inventory record accuracy are maintained.

    Agency Affected: Department of Defense: Department of the Navy

  6. Status: Closed

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

    Recommendation: The Secretary of the Navy should require the discontinuance of Navy policy allowing combat surface force ships completing supply overhauls to arbitrarily retain reparable-type items, which are applicable to installed equipment, but which were not included in their updated inventory allowance due to lack of prior usage.Also, he should require ships undergoing overhauls to promptly offload and return to the nearest wholesale stock point all excess reparable-type items valued at $50 or more for which foreseeable supply system requirements exist.

    Agency Affected: Department of Defense: Department of the Navy

 

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