Defense Logistics Agency Could Better Identify and Cancel Unneeded On-Order Material
NSIAD-84-42
Published: Jan 10, 1984. Publicly Released: Jan 10, 1984.
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Highlights
GAO reviewed the Defense Logistics Agency's (DLA) procedures and practices for identifying and cancelling unneeded on-order material.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Defense Logistics Agency | The Director, DLA, should direct the centers to establish controls for monitoring and evaluating item manager performance in cancelling unneeded on-order material. As a minimum, such controls should ensure that supervisors routinely review item manager decisions on cancellation notices. |
Closed – Implemented
DLA developed and implemented a mechanized output control over item in a potentially over procured status. Provisions have been made for mechanized recording of action taken and automatic follow up for nonresponse.
|
| Defense Logistics Agency | The Director, DLA, should revise the program for computing system due-in review levels to consider all types of dues-in from procurement equally unless it has been absolutely determined that they are invalid. |
Closed – Implemented
DLA developed and implemented revised specifications for inclusion in the SAMMS system, which considers all due-in computing potential cancellations of on-order quantities.
|
| Defense Logistics Agency | The Director, DLA, should revise the program for computing system due-in review levels to limit the amount of buffer stocks included in the determination of cancellation levels. One way this can be done is to adjust the procurement cycle percentage in relation to the length of the procurement cycle. |
Closed – Implemented
DLA implemented an existing policy change which modifies criteria used in determining cancellation notices.
|
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Topics
Defense cost controlInternal controlsInventory controlMilitary materielProperty and supply managementProcurementStocksLogisticsMilitary forcesDefense logistics