Army Disposal:

Construction Equipment Prematurely Disposed of in Europe

NSIAD-88-77: Published: Sep 20, 1988. Publicly Released: Oct 25, 1988.

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In response to a congressional request, GAO reviewed the Army's replacement of its construction vehicles in Europe, to determine why it disposed of certain vehicles.

GAO found that: (1) the Army disposed of old construction vehicles without determining whether it would be cost-effective to retain them; (2) the Army did not provide any evidence to support its contentions that the vehicles were outmoded, expensive to maintain, and impacted readiness; (3) repair estimates for seven vehicles at a disposal site ranged from $230 to $13,000, and about 240 of the 800 vehicles to be disposed of in Europe were useable and operable; and (4) the Army sold 47 vehicles to Portugal for $11,500, or about $240 per vehicle. GAO also found that: (1) the Army purchased 850 vehicles for Europe at a cost of $79 million out of $470 million for the overall vehicle program; and (2) users of the new vehicles expressed concern about their ability to perform as well as the older vehicles that the Army replaced.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: The DOD January 24, 1989 response promised guidance in Army Regulation 71-9 and memorandum on concept formulation. The Army Engineering School completed its assessment and equipment operator training in November 1989.

    Recommendation: The Secretary of Defense should direct the Secretary of the Army to: (1) ensure that, for any future Army fleet replacement actions, the Army has a documented analysis of the cost-effectiveness of retaining existing equipment for the remainder of its useful life; and (2) reassess the problems identified by field commands in Europe to determine if those problems require changes beyond just retaining field personnel.

    Agency Affected: Department of Defense

 

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