Defense Logistics: Requirement Determinations for Aviation Spare Parts Need to Be Improved
NSIAD-96-70
Published: Mar 19, 1996. Publicly Released: Mar 19, 1996.
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Highlights
GAO reviewed the Air Force's and Navy's policies and procedures for procuring aviation spare parts, focusing on whether their requirements and budgets reflect the amounts they actually need.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Secretary of the Air Force to revise buy and budget requirement computation policies and procedures to require that on-hand assets reserved for depot maintenance needs be considered in periodic requirement and annual budget computations. |
Closed – Not Implemented
DOD did not agree that procedures related to reserving on-hand assets for depot maintenance resulted in overstated requirements and does not plan any corrective action. GAO disagrees with the DOD position because wholesale requirements include depot maintenance needs that are based on past recurring demands. GAO believes it would be reasonable inventory management and would save money to use reserved assets to offset wholesale requirements when making procurement decisions.
|
| Department of Defense | The Secretary of Defense should direct the Secretary of the Air Force to strengthen management oversight procedures and internal controls to ensure that the key elements (such as on-hand and due-out quantities and lead times) of requirement and budget computations are accurate. |
Closed – Implemented
The budget requirements review process established at the Air Logistics Center level and further review by the Air Force Materiel Command places greater emphasis on requirements at all management levels. The review process will be documented in the budget review manual.
|
| Department of Defense | The Secretary of Defense should direct the Secretary of the Navy to revise policies and procedures for buy and budget requirement computations to eliminate duplication of depot maintenance requirements. |
Closed – Not Implemented
DOD did not agree that buy and budget computations result in overstated depot maintenance requirements and does not plan any corrective action. GAO believes that DOD is wrong because some of the depot demands to satisfy depot maintenance needs are included once as recurring demands based on past usage, and again as nonrecurring demands to meet planned program requirements.
|
| Department of Defense | The Secretary of Defense should direct the Secretary of the Navy to strengthen management oversight procedures and internal controls to ensure that key elements of requirement and budget computations are accurate. |
Closed – Implemented
The Navy implemented an automated system to improve data element validation. The system (called IM Toolkit) provides an online checkoff list of key data elements for the item manager to validate when making decisions on requirements execution and budget development.
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Topics
AccountabilityAircraft componentsAircraft maintenanceInternal controlsInventory control systemsLogisticsMilitary cost controlMilitary inventoriesMilitary procurementSpare parts