Air Force Logistics:

Need to Improve Management Transfers of On-Order Items Which Can Be Terminated

NSIAD-92-262: Published: Aug 28, 1992. Publicly Released: Aug 28, 1992.

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GAO provided information on the Air Force's procedures for transferring management responsibilities over terminating excessive items on order to the Defense Logistics Agency (DLA), focusing on whether the Air Force: (1) completed required analyses before management transfers; and (2) provided accurate requirements data to DLA.

GAO found that: (1) the Air Force lacks procedures for items with potential termination quantities, and management transfer procedures cannot ensure that the Air Force furnishes current and accurate data records to DLA; (2) untimely termination actions, lost savings opportunities, and the acquisition of unneeded inventories are a result of inadequate reviews of termination analyses; and (3) Air Force procedures require review of potential terminations, but fail to ensure that complete analyses, documentation, and accurate on-order information are provided to DLA.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: The Air Force directed its Air Logistics Centers to: (1) complete the analysis of estimated termination costs for items with potential terminations and take action prior to the transfer of item folders to DLA; and (2) have the losing inventory manager send a letter to the gaining DLA inventory manager informing DLA of actions the Air Force recommends for items being decapitalized and transferred.

    Recommendation: The Secretary of Defense should direct the Secretary of the Air Force to revise procedures to ensure that controls over management of consumable items with potential terminations are maintained during transfers from the Air Force to DLA.

    Agency Affected: Department of Defense

  2. Status: Closed - Implemented

    Comments: On November 13, 1992, the Air Force took the following action to ensure, prior to sending item folders to DLA, that: (1) automatic contract files are updated and accurate; (2) unresolved contract file errors are resolved with the Air Force's procurement system point of contact; and (3) the automatic procurement system provides DLA with corrected data through updated memorandum due-in transactions.

    Recommendation: The Secretary of Defense should direct the Secretary of the Air Force to revise procedures to ensure that complete and accurate automated requirements information including separate notification of subsequent changes is provided by the Air Force to DLA.

    Agency Affected: Department of Defense

 

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