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Defense Inventory: Inadequate Controls Over Air Force Suspended Stocks

NSIAD-98-29 Published: Dec 22, 1997. Publicly Released: Dec 22, 1997.
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Highlights

Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) secondary inventory management, focusing on the: (1) reported quantity and value of suspended inventory; (2) weaknesses in managing suspended inventory and their potential effect on logistics support costs and readiness; and (3) reasons why suspended inventory is not well managed.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To improve the management of suspended items, the Secretary of Defense should direct the Secretary of the Air Force to ensure that, at Warner Robins: (1) suspended inventory is properly identified, monitored, inspected, and classified within established DOD timeframes; and (2) suspended items receive adequate visibility at all management levels, up to and including the service headquarters, through targeting suspended inventory problems as an issue for review in the Federal Managers' Financial Integrity Act assessments.
Closed – Implemented
The Air Force provided revised policy guidance for suspended condition-coded material. Interim Change 99-1 to AFMAN 23-110, USAF Supply Manual, has gone out to those at Air Force Air Logistics Centers (ALCs) who have responsibilities associated with suspended condition-coded material. This interim policy will be posted to the web first as an interim change and later incorporated into AFMAN 23-110 online at http://afpubs.hq.af.mil, no later than January 1, 2000. The Air Force has also tasked the Air Logistics Centers to produce metrics for submission in accordance with Federal Managers' Financial Integrity Act (FMFIA) policy to include monthly reviews and quarterly reporting through HQ AFMC/LGIA to HQ USAF/ILSP.
Department of the Air Force The Secretary of the Air Force should direct Warner Robins ALC to establish explicit guidance on responsibility and accountability for resolving suspended inventory status, carry out necessary actions, and follow up to make sure that the actions have been promptly and correctly taken.
Closed – Implemented
Headquarters, Air Force Materiel Command/LGI has revised policy guidance for suspended condition coded material. Interim Change 99-1 to Air Force Manual 23-110, USAF Supply Manual was posted on the Headquarters, Air Force Material Command's D035 System website home page on February 4, 2000. Air Force Manual 23-110, Volume III, Part Three, Chapter 2 was submitted for major commend coordination on February 25, 2000. The changes should be reflected in the October 2000 CD release of Air Force Manual 23-110.
Department of the Air Force The Secretary of the Air Force should conduct assessments of suspended inventory practices at the four other ALCs to determine the need for similar remedial actions and direct any affected ALC to take such actions.
Closed – Implemented
Recommendations in the report specifically addressed the Warner Robins Air Logistics Center only. However, in implementing those recommendations, the Air Force will consider all four of its Air Logistics Centers.

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Topics

Federal property managementInternal controlsInventory control systemsLogisticsMilitary cost controlMilitary inventoriesMilitary materielSpare partsKeyboardsU.S. Air Force