Navy Materiel in Suspended, Not Ready for Issue, Condition Needs More Management Attention

NSIAD-85-23: Published: Nov 19, 1984. Publicly Released: Nov 19, 1984.

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GAO reviewed the Navy's management of materiel in suspended, not-ready-for-issue status.

Materiel is assigned a suspended condition code when there is a question regarding its true condition and additional testing is required before it can be considered ready for use. The value of Navy materiel having a suspended status was reported to be about $200 million. The policy of the Department of Defense (DOD) and the Navy emphasizes the importance of removing materiel from a suspense category in a timely manner; however, GAO found that this policy was not being followed. GAO believes that lengthy suspension times have adversely affected supply operations, because the materiel in suspended status has not been considered in filling requisitions and making procurement decisions.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: The Navy reduced the amount of suspended stock from $151.3 million to $71.2 million. The Navy plans to institutionalize current improvements and establish an automated system to track suspended materiel.

    Recommendation: To improve the management of suspended materiel, the Secretary of the Navy should initiate a one-time special project to have inventory control points and stockpoints determine the true condition of suspended materiel, make issuable all materiel that is needed, and purge from the supply system all materiel that cannot economically be made issuable or is no longer needed.

    Agency Affected: Department of Defense: Department of the Navy

  2. Status: Closed - Implemented

    Comments: A new standardized information system, using new technology, is being implemented. System improvements will be incorporated in SPARs and UICP systems scheduled for implementation by 1990. As an interim solution, local unique automated programs for managing suspended materiel have been implemented at various sites.

    Recommendation: To improve the management of suspended materiel, the Secretary of the Navy should: (1) modify the management information system used by the Naval Supply Systems Command (NAVSUP) inventory control points and stockpoints so that it will receive summary data on the amount, age, and reasons materiel is suspended; and (2) monitor this data to ensure compliance with DOD and Navy requirements.

    Agency Affected: Department of Defense: Department of the Navy

  3. Status: Closed - Implemented

    Comments: Points of contact for follow-up action on suspended materiel have been established at inventory control points and stock points.

    Recommendation: To improve the management of suspended materiel, the Secretary of the Navy should assess personnel resource allocations for the purpose of establishing a central control group at each inventory control point to provide oversight of suspended materiel. This group should receive and record discrepancy report data, monitor suspension times and the status of efforts to resolve discrepancies, keep item managers informed of the status of suspended items, and serve as a focus for questions from stockpoints.

    Agency Affected: Department of Defense: Department of the Navy

  4. Status: Closed - Implemented

    Comments: NAVSUP Instruction 4400.91 was issued on February 5, 1986. This instruction defines inventory control point and stock point responsibilities for the management of suspended materiel.

    Recommendation: To improve the management of suspended materiel, the Secretary of the Navy should provide more explicit guidance on whether the inventory control point or stockpoint is responsible for resolving suspended materiel discrepancies so that the materiel can be made issuable or disposed of in a timely manner.

    Agency Affected: Department of Defense: Department of the Navy

 

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