Air Force Supply:

Improvements Needed in Management of Air Mobility Command's Forward Supply System

NSIAD-93-10: Published: Jul 21, 1993. Publicly Released: Jul 21, 1993.

Additional Materials:

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GAO provided information on how the Air Force can better manage its forward supply support system to reduce inventory requirements.

GAO found that: (1) spare part inventory levels at overseas forward supply locations often exceed computed demand levels because the Air Force adds quantities during initial provisioning, which results in overstated budget estimates and unnecessary inventories; (2) the Air Force's requirements system increases the procurement of unnecessary inventories because usage data used to reorder replacement parts often report duplicate requirements; (3) if the Air Force limits forward supply levels to quantities supported by actual demand, it could reduce worldwide stock levels by $17.9 million; and (4) the Air Force lacks a clear policy that addresses overstated or duplicative usage requirements reporting.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: It is unlikely the DOD position will change.

    Recommendation: The Secretary of the Air Force should direct the Commander, Air Force Materiel Command, to limit total worldwide stock levels, within the forward supply support system, to quantities supported by actual demand.

    Agency Affected: Department of Defense: Department of the Air Force

  2. Status: Closed - Implemented

    Comments: It is unlikely additional followup would result in a change in the DOD position with collecting additional data to further support GAO's position.

    Recommendation: The Secretary of the Air Force should direct the Commander, Air Force Materiel Command, to eliminate requirements duplication for replenishment spares either by eliminating the overseas usage reporting or by removing the added requirement for forward supply locations.

    Agency Affected: Department of Defense: Department of the Air Force

  3. Status: Closed - Implemented

    Comments: DOD continues to support the use of forward supply support system levels for provisioning the C-17 aircraft. It is unlikely this position would change without GAO initiating a follow-on job to review usage data at forward supply locations to develop a stronger position for challenging DOD's rationale. Nonetheless, GAO continues to believe its original position was sound.

    Recommendation: The Secretary of the Air Force should direct the Commander, Air Force Materiel Command, to eliminate such additive forward supply support spares for C-17 initial provisioning.

    Agency Affected: Department of Defense: Department of the Air Force

  4. Status: Closed - Implemented

    Comments: DOD plans no action regarding this recommendation. DOD purports that eliminating additive spares for forward supply support would result in significant delay times. Multiple contacts with DOD officials indicate that it is unlikely additional follow-up without developing additional data to challenge this position would not be productive.

    Recommendation: The Secretary of the Air Force should direct the Commander, Air Force Materiel Command, to revise the initial provisioning policy to discontinue the use of additive forward supply levels in initial provisioning requirements for Air Mobility Command aircraft.

    Agency Affected: Department of Defense: Department of the Air Force

  5. Status: Closed - Implemented

    Comments: DOD reviewed its forward supply system policy but determined that no further action was warranted.

    Recommendation: The Secretary of the Air Force should direct the Commander, Air Force Materiel Command, to develop a consistent policy, in conjunction with the Air Mobility Command, regarding for forward supply support management.

    Agency Affected: Department of Defense: Department of the Air Force

 

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