Analysis of the Army's Conventional Ammunition Working Capital Fund

NSIAD-86-63BR: Published: Mar 7, 1986. Publicly Released: Mar 7, 1986.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed the Army's implementation of the Conventional Ammunition Working Capital Fund to assess: (1) how the Fund was working; (2) whether the Army was achieving the benefits from the Fund that it claimed it would; and (3) whether the Fund was worth continuing. The Army established the Fund to: (1) simplify the ammunition procurement process; (2) reduce the paperwork incident to that process; and (3) reduce ammunition costs by consolidating procurements and awarding contracts earlier to avoid inflation effects.

GAO found that: (1) while the Fund's concept is sound, the Army has not effectively implemented it; (2) the Army has not made the extensive use of standard item prices that it originally envisioned; (3) the Army's failure to use standard prices has complicated the procurement process and caused administrative and paperwork burdens; and (4) the standard prices the Army has established have exceeded projected final costs. GAO also found that: (1) while the Army believes that the Fund has saved millions of dollars, many of these savings occurred because of increases in program quantities; (2) while the Army maintains that it can use unexpended budget balances that the Fund retained from prior program years, it must return the unexpended balances to the Treasury; and (3) paperwork savings attributable to the Fund have been offset by other administrative burdens which have increased since the Fund's implementation. In addition, GAO found that: (1) Congress should not grant the Fund advance contracting authority because it would drastically reduce congressional discretion in funding the overall ammunition program; and (2) the Army could more efficiently use continuing resolution authority in connection with the Fund's operations if the military services submitted their ammunition requests earlier in the year.

Sep 20, 2016

Sep 6, 2016

Aug 19, 2016

Aug 12, 2016

Jul 29, 2016

Jul 28, 2016

Jul 13, 2016

Jul 11, 2016

Jun 13, 2016

Looking for more? Browse all our products here