Navy Fielded Systems:

Operating and Support Costs Not Tracked

NSIAD-90-246: Published: Sep 28, 1990. Publicly Released: Oct 30, 1990.

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Pursuant to a congressional request, GAO examined: (1) the reliability of the Navy's operating and support (O&S) cost expenditure data for two aircraft weapon systems; and (2) how the O&S data related to the Navy's budget request.

GAO found that: (1) Navy O&S data for the two weapon systems did not provide a sufficiently reliable indication of actual costs expended to operate and support them; (2) the Navy did not maintain a cost accounting system that reliably allocated its weapons systems' O&S cost expenditures; (3) various assumptions and limitations associated with individual cost elements and databases made the data unreliable for determining whether the Navy was meeting O&S cost objectives; and (4) Navy and Department of Defense officials reported that O&S cost data could not be reconciled to Navy budget requests and generally did not use such data to formulate budget requests.

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