Defense Inventory:

Defense Logistics Agency Needs to Better Manage Procurement Leadtimes

NSIAD-90-124: Published: May 2, 1990. Publicly Released: Jun 1, 1990.

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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.

GAO found that: (1) DLA did not implement adequate controls to manage and minimize procurement lead times as the Department of Defense (DOD) directed; and (2) DLA took measures to reduce its contract award times but, since it did not obtain the best delivery times from contractors, it did not reduce its production and delivery times.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: 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.

    Recommendation: 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.

    Agency Affected: Department of Defense

  2. Status: Closed - Implemented

    Comments: 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.

    Recommendation: 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.

    Agency Affected: Department of Defense

  3. Status: Closed - Implemented

    Comments: DLA has written policy to require the centers to establish realistic administrative leadtimes for placing delivery orders against indefinite delivery contracts.

    Recommendation: 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.

    Agency Affected: Department of Defense

  4. Status: Closed - Implemented

    Comments: 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.

    Recommendation: 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.

    Agency Affected: Department of Defense

 

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