Procurement:

Army Implementation of Spare Parts Initiatives

NSIAD-87-148: Published: Jun 8, 1987. Publicly Released: Jul 14, 1987.

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Pursuant to a congressional request, GAO assessed the Army Aviation Systems Command's (AVSCOM) progress in implementing the Department of Defense's spare parts procurement initiatives.

GAO found that: (1) 8.2 percent of the procurements it reviewed showed price increases of 25 percent or more, while 55 percent of the procurements showed either no price change or a price decrease; (2) AVSCOM performed inadequate price analyses for 24.5 percent of the procurements, and 28.6 percent of the first-time procurements; (3) AVSCOM had difficulty implementing the spare parts initiatives because its work load increased substantially but its staff did not, leaving AVSCOM managers with a choice between implementing the initiatives, increasing the backlog of purchase requests, or increasing the time standards for contract award; (4) AVSCOM had not fully implemented the training initiative; and (5) the percentage of procurements that AVSCOM competed decreased.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: The Office of the Secretary of Defense (OSD) required the Army to develop a plan to reconcile lead-time and quality price analysis.

    Recommendation: The Secretary of the Army should reassess the reduction in standard times for awarding contracts to minimize the conflict between rapid contract award and quality price analysis.

    Agency Affected: Department of Defense: Department of the Army

  2. Status: Closed - Implemented

    Comments: The Army has instituted additional training. OSD directed the Army to prepare a plan on increased competition.

    Recommendation: The Secretary of the Army should direct AVSCOM to increase the use of competition in spare parts procurement and to provide buyers with both regular and specialized training.

    Agency Affected: Department of Defense: Department of the Army

 

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