Army Inventory: Current Operating and War Reserve Requirements Can Be Reduced
NSIAD-93-119
Published: Apr 14, 1993. Publicly Released: Apr 14, 1993.
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Highlights
GAO reviewed the Army's efforts to reduce its current operating and war reserve requirements.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Army | The Secretary of the Army should direct the Commander, AMC, to establish war reserve requirements based on the latest Army strategy and doctrine giving consideration to the new threat, reduced force structure, and probable type of conflicts the Army can expect in the future. |
Closed – Implemented
The Army recomputed its war reserve requirements and reduced them from $10.2 billion to $4.2 billion.
|
| Department of the Army | The Secretary of the Army should direct the Commander, AMC, to transfer inventory that is no longer needed to meet the revised war reserve requirements to retention-level inventory or send it to disposal. |
Closed – Implemented
Upon completion of its war reserve recomputation, items not needed will be sent to disposal. This will occur sometime after the June 1993 recomputation.
|
| Department of the Army | The Secretary of the Army should direct the Commander, AMC, to recategorize as economic retention-level inventory those items that are being retained as part of the requirements objective because the associated contracts are uneconomical to terminate. |
Closed – Not Implemented
DOD disagrees that items due in contract are considered as inventory. Therefore, DOD does not believe that such items should be considered economic retention inventory.
|
| Department of the Army | The Secretary of the Army should direct the Commander, AMC, to process inventory items that do not qualify for economic retention for disposal. |
Closed – Implemented
DOD agreed that items not needed to meet current operating and war reserve or contingency or economic retention criteria should be sent to disposal or potential users.
|
| Department of the Army | The Secretary of the Army should direct the Commander, AMC, to discontinue the practice of including nonrecurring demands as part of the demand database used to forecast spare parts requirements. |
Closed – Implemented
DOD policy outlined in DOD 4140.1-R requires that demands identified as nonrecurring shall be included in the demand database to the extent that the item manager can demonstrate that a particular quantity on nonrecurring demands will improve its demand forecasts.
|
| Department of the Army | The Secretary of the Army should direct the Commander, AMC, to begin offsetting all serviceable returns against demands unless an item-by-item analysis shows that systemic deficiencies preclude serviceable returns from being offset against demands. In such cases, the national inventory control point should identify the systemic deficiencies and develop a corrective action plan for resolving the deficiencies. |
Closed – Implemented
Guidance was issued on October 29, 1993, requiring item-by-item analysis of serviceable returns to determine whether they should be offset against demand data.
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Topics
Army procurementArmy suppliesEquipment repairsFederal supply systemsInventory controlMilitary cost controlMilitary inventoriesMilitary materielProjectionsProperty and supply management