Procurement:

Spare Parts and Support Equipment for Air Force C-5 Transport Aircraft

NSIAD-88-57BR: Published: May 23, 1988. Publicly Released: May 25, 1988.

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In response to a congressional request, GAO reviewed the San Antonio Air Logistics Center's procurement practices to determine whether it: (1) procured spare parts for the C-5B aircraft economically and according to Air Force policies and regulations; and (2) provided the reserve units scheduled to receive the C-5A aircraft with only necessary ground support equipment.

GAO found that the Center: (1) purchased the spare parts indirectly through the prime contractor rather than directly from the parts vendors, which may have resulted in an overpayment of between $13 million and $19 million; (2) may have overobligated between $9.7 million and $30 million for the spare parts on the basis of inaccurate contractor price estimates; (3) may have purchased war reserve spare parts for the C-5B earlier than necessary; and (4) did not consolidate spare parts purchases to obtain the benefit of economical quantities. GAO also found that, since the ground units receiving C-5A aircraft for the first time requisitioned unnecessary ground support equipment, the Air Force: (1) moved up a scheduled review of ground support equipment; and (2) reduced the equipment authorized for reserve-unit use by about $2 million.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: The Department of Defense (DOD) concurred with this recommendation. The Air Force Logistics Command (AFLC) implemented AFLC Regulation 800-9, providing detailed procedures for procurement and breakout of initial spares.

    Recommendation: The Secretary of the Air Force should direct the Commander, Air Logistics Command, to take steps to ensure compliance with current breakout policy concerning the procurement of initial spare parts.

    Agency Affected: Department of Defense: Department of the Air Force

  2. Status: Closed - Implemented

    Comments: DOD concurs with this recommendation. AFLC implemented AFLC Regulation 800-9, providing detailed procedures for procurement and breakout of initial spares.

    Recommendation: The Secretary of the Air Force should direct the Commander, Air Logistics Command, to take steps to ensure that spare parts are purchased directly from vendors when possible and more economical.

    Agency Affected: Department of Defense: Department of the Air Force

 

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