DOD Making Progress in Identifying and Marketing Obsolete Repair Parts

NSIAD-85-47: Published: Feb 21, 1985. Publicly Released: Feb 21, 1985.

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In a follow-up review of obsolete items held in Department of Defense (DOD) inventories, GAO: (1) determined if DOD is still maintaining large inventories of obsolete repair parts; and (2) reviewed actions taken to offer these repair parts for sale to foreign governments.

GAO found that aggressive actions by the military services to identify and initiate system support buy-outs through Foreign Military Sales (FMS) program channels could reduce the possibilities of either unnecessarily holding obsolete repair parts in service inventories or needlessly disposing of repair parts still needed by friendly foreign governments. Also, according to DOD, buy-out programs enhance logistics support to foreign allies. The Air Force and the Navy have made significant progress in implementing buy-out programs.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: GAO will continue to monitor Air Force and Navy sales. The Air Force identified and sold obsolete material. The Navy identified obsolete stocks and cancelled dueins.

    Recommendation: The Secretary of Defense should require the Secretaries of the Air Force and the Navy to closely monitor recent system support buy-out program initiatives. Monitoring efforts should be designed to ensure that cooperative logistics supply support arrangements are amended to remove obsolete repair parts. Stock levels of these parts should be identified, and the countries involved should be requested to withdraw their material equities in the inventory held for them and be offered an opportunity to buy any additional obsolete parts remaining after the withdrawals.

    Agency Affected: Department of Defense

  2. Status: Closed - Implemented

    Comments: The Air Force identified and sold obsolete material. The Navy identified obsolete stocks and cancelled dueins.

    Recommendation: The Secretary of Defense should require the Secretaries of the Air Force and the Navy to closely monitor recent system support buy-out program initiatives. Monitoring efforts should be designed to ensure that item management specialists routinely review their repair parts to identify obsolete material.

    Agency Affected: Department of Defense

  3. Status: Closed - Implemented

    Comments: The Air Force identified and sold obsolete material. The Navy identified obsolete stocks and cancelled dueins.

    Recommendation: The Secretary of Defense should require the Secretaries of the Air Force and the Navy to closely monitor recent system support buy-out program initiatives. Monitoring efforts should be designed to ensure that item application files are accurately maintained to facilitate the identification of obsolete repair parts, which should be offered to friendly foreign governments through buy-out agreements.

    Agency Affected: Department of Defense

  4. Status: Closed - Implemented

    Comments: The Air Force identified and sold obsolete material. The Navy identified obsolete stocks and cancelled dueins.

    Recommendation: The Secretary of Defense should require the Secretaries of the Air Force and the Navy to closely monitor recent system support buy-out program initiatives. Monitoring efforts should be designed to ensure that deactivation of weapon systems is coordinated on a timely basis between system managers and inventory control personnel so that obsolete repair parts can be promptly identified.

    Agency Affected: Department of Defense

  5. Status: Closed - Implemented

    Comments: The Navy has terminated $29,350,000 of excess on order stocks. An accomplishment report was processed and approved. The Air Force identified and sold obsolete material. The Navy identified obsolete stocks and cancelled dueins.

    Recommendation: The Secretary of Defense should require the Secretaries of the Air Force and the Navy to closely monitor recent system support buy-out program initiatives. Monitoring efforts should be designed to ensure that stock level replenishment buys of obsolete repair parts with DOD funds be discontinued. Demands from foreign military sales customers should be supported on a direct cite funding basis using the friendly foreign governments' monies. Outstanding purchase requests and contracts for obsolete repair parts citing DOD funds should be converted to direct cite foreign military sales monies.

    Agency Affected: Department of Defense

 

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