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Army Maintenance: More Effective Implementation of Maintenance Expenditure Limits Needed

NSIAD-91-270 Published: Sep 18, 1991. Publicly Released: Sep 18, 1991.
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Highlights

GAO reviewed the Army's policies and procedures for computing and using maintenance expenditure limits (MEL), to determine whether: (1) the Army Materiel Command (AMC) was applying MEL effectively in their repair-or-buy decisions; and (2) AMC was sufficiently overseeing the commands' use of MEL.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
U.S. Army Materiel Command The Commanding General, AMC, should reemphasize the requirement that the buying commands are to: (1) compute MEL and compare them with the cost to repair an item; (2) procure items which, according to the MEL, are not economical to repair; and (3) request waivers or exemptions in cases where the repair program is necessary, even though the cost to repair exceeds the MEL.
Closed – Implemented
During the September 1991 Maintenance Expenditure Limit Conference, AMC reemphasized the requirement to compute MEL and directed all buying commands to implement the requirement immediately.
U.S. Army Materiel Command The Commanding General, AMC, should direct the commands to compute and recompute MEL in accordance with the time frames in the AMC MEL regulation and to include in their implementing regulations the correct time frames for making those computations.
Closed – Implemented
During the September 1991 MEL Conference, AMC directed the commands to compute and recompute MEL in accordance with AMC regulations. AMC also directed the commands to include in implementing regulations the correct time frames for computing MEL.
U.S. Army Materiel Command The Commanding General, AMC, should clarify that the procurement price the buying commands are to use in the MEL computations is the per-unit contract cost.
Closed – Implemented
During the September 1991 conference, AMC clarified the procurement price buying commands were to use in MEL computations, and to implement it immediately.
U.S. Army Materiel Command The Commanding General, AMC, should include the extent of implementation of MEL policies and procedures at the buying commands in future compliance reviews.
Closed – Implemented
During the September 1991 MEL Conference, AMC emphasized that implementation of MEL policies and procedures will be included in future compliance reviews--the first to have started during the October-December 1991 review.

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Topics

Army procurementCost effectiveness analysisEquipment inventoriesEquipment maintenanceEquipment repairsInventory control systemsMaintenance (upkeep)Military policiesProcurement policyMilitary forces