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Army Inventory: More Effective Review of Proposed Inventory Buys Could Reduce Unneeded Procurement

NSIAD-94-130 Published: Jun 02, 1994. Publicly Released: Jun 02, 1994.
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Highlights

GAO reviewed the Army Tank-Automotive Command's (TACOM) termination of planned procurements, focusing on whether TACOM terminated the procurements as early in the procurement process as possible.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
U.S. Army Materiel Command To help TACOM ensure that commitments are being reduced appropriately, the Commander, Army Materiel Command, should issue policy guidance and instructions that require, before awarding a contract, procurement personnel check with item management personnel to ensure that the current requirements and inventory data are correct and that factors have not changed that would obviate the need for the contract.
Closed – Implemented
The Army Materiel Command issued 2 policy letters dated September 30, 1994, and November 23, 1994, providing guidance as recommended.
U.S. Army Materiel Command To help TACOM ensure that commitments are being reduced appropriately, the Commander, Army Materiel Command, should issue policy guidance and instructions that require inventory management officials to ensure that their item managers do not arbitrarily change the requirements data to bring the requirements and inventory positions into balance and thereby avoid having to terminate or reduce a proposed procurement.
Closed – Implemented
The Army Materiel Command issued revised requirements on February 29, 1994, that required item managers to document all actions taken in response to a recommended cutback of a proposed procurement. In addition, review levels were established for all actions taken on recommended cutbacks.

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Topics

Army procurementEquipment contractsInventory controlInventory control systemsMilitary cost controlMilitary inventoriesProcurement cancellationProcurement practicesProcurementMilitary forces