Defense Inventory: Defense Logistics Agency Needs to Better Manage Procurement Leadtimes
NSIAD-90-124
Published: May 02, 1990. Publicly Released: Jun 01, 1990.
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Highlights
Pursuant to a congressional request, GAO evaluated the Defense Logistics Agency's (DLA) controls over procurement lead times, focusing on whether DLA had adequate management controls to ensure that lead-time estimates were appropriate to support mission requirements.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Director, DLA, to conduct periodic, objective, and comprehensive management reviews at the supply centers to ensure that all center directorates involved with lead time comply with applicable DOD procurement lead-time policies and procedures. |
Closed – Implemented
In order to improve current policies, the DLA Procurement Leadtime Task Group reviewed supply center procedures and initiatives to minimize and accurately forecast leadtimes and developed clarifying policies.
|
| Department of Defense | The Secretary of Defense should direct the Director, DLA, to set sound standard time frames for key administrative lead-time events, develop reliable information on the actual time taken for such events, and then compare standards to actual times to remove unusual events in forecasting lead times. |
Closed – Implemented
DLA developed policies that will ensure non-representative events are removed from leadtime forecasts. The DISC leadtime tracking system requires the use of additional programs not desired at the other centers and will not be exported.
|
| Department of Defense | The Secretary of Defense should direct the Director, DLA, to use only actual delivery dates to forecast procurement lead times unless they are not available or are considered unrealistic. |
Closed – Implemented
DLA has written policy to require the centers to establish realistic administrative leadtimes for placing delivery orders against indefinite delivery contracts.
|
| Department of Defense | The Secretary of Defense should direct the Director, DLA, to request a contractor's best delivery time to reduce forecasted lead time for future buys and, where possible, give that delivery time some weight in contract awards. |
Closed – Implemented
DLA has instituted a number of "buying best value" procedures where the contracting officer may consider past quantifiable quality and delivery performance in making an award. Also, firms that meet specified qualification criteria can be added to the "Blue Ribbon" contractors list and be selected even if they do not submit the lowest bid.
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Defense procurementDelivery termsFederal property managementInternal controlsInventory control systemsLogisticsMilitary inventoriesProcurement evaluationSource selectionProcurement