Defense Inventory: Defense Logistics Agency's Excess Materiel on Order
NSIAD-90-105
Published: Mar 06, 1990. Publicly Released: Mar 06, 1990.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO reviewed the Defense Logistics Agency's (DLA) efforts to control excess materiel on order from contractors.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should instruct the Director, DLA, to require that supervisors review item managers' decisions concerning terminations. |
Excess-on-order actions have been included in the DLA internal control program. Defense supply centers were notified of the importance of supervisory review of terminations and reportable tracking mechanisms are being implemented to monitor progress.
|
| Department of Defense | The Secretary of Defense should instruct the Director, DLA, to review and approve locally implemented operating procedures that limit the dollar value of termination requests initiated by item managers. |
A termination model that eliminates the need for local thresholds/procedures has been implemented.
|
| Department of Defense | The Secretary of Defense should instruct the Director, DLA, to implement the Defense policy and require development and implementation of a cost comparison methodology or model to assist supply center personnel in making cost-effective termination decisions. |
Guidance implementing the Office of the Secretary of Defense policy was issued January 31, 1990. The cost comparison model was tested and implemented in late 1990/early 1991.
|
| Department of Defense | The Secretary of Defense should instruct the Director, DLA, to require contracting officers to obtain termination costs, in appropriate cases, so item managers can make cost-benefit analyses. |
Guidance on this issue was provided by HQ DLA to the centers on April 2, 1990.
|
| Department of Defense | The Secretary of Defense should instruct the Director, DLA, to continue to stress the importance of timely and accurate processing of potential excess on-order reports. |
Guidance was provided by HQ DLA on February 1, 1990.
|
Full Report
Office of Public Affairs
Topics
Contract termination costsCost effectiveness analysisDefense procurementInformation systemsInventory control systemsMilitary cost controlMilitary inventoriesMilitary materielProcurement cancellationSurplus federal property