DOD Bulk Fuel:

Services' Fuel Requirements Could Be Reduced and Funds Used for Other Purposes

NSIAD-96-96: Published: Mar 28, 1996. Publicly Released: Mar 28, 1996.

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Mark E. Gebicke
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GAO reviewed the Defense Fuel Supply Center's (DFSC) and the military services' management of their bulk fuel requirements, focusing on the services' fiscal year (FY) 1996 budget requests.

GAO found that: (1) for FY 1996, the services requested $4.01 billion to purchase 126.7 million barrels of bulk fuel from DFSC, but DFSC estimated that the services' budget request is overstated by $440 million; (2) the services' actual FY 1996 requirements will total about $3.57 billion; (3) Department of Defense and service officials believe that the fuel estimates are not overstated, since requirements change constantly and reducing their budget requests would hamper their flexibility in meeting emerging requirements; (4) the services' data trends show that they do not use all of their budgeted fuel funds and use unspent funds and fuel credits for other purposes; (5) the services also do not recognize the amounts of fuel they return to DFSC for credit when making their fuel use estimates; and (6) Congress reduced the Navy's fuel budget request by $100 million, but did not adjust the other services' budget requests.

Matter for Congressional Consideration

  1. Status: Closed - Not Implemented

    Comments: The recommendation was applicable to fiscal year 1997.

    Matter: Because the services' bulk fuel budgets are still overstated by about $340 million ($440 million less the $100 million congressional reduction), Congress may want to rescind the $340 million and apply them to other unfunded emerging requirements.


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