Improved Management of Fleet Supplies and Spare Parts Can Save Millions Without Affecting Readiness
PLRD-81-59
Published: Sep 11, 1981. Publicly Released: Sep 11, 1981.
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Highlights
GAO reviewed the Navy's supply support to assess actions taken by the Navy in response to earlier GAO reports on shipboard supply management and to evaluate the effectiveness of supply support provided by the Navy's automated surface ships.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Navy | The Secretary of Defense should direct the Navy to have its fleet commanders discontinue the use of goals for determining excesses on hand and on order and direct that any item that exceeds the authorized allowance is in excess, whether it is on hand or on order. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of the Navy | The Secretary of Defense should direct the Navy to have its fleet commanders monitor excesses and ensure that they are offloaded and redistributed or made available to the supply system in a timely manner. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of the Navy | The Secretary of Defense should direct the Navy to have its fleet commanders ensure that inventory accuracy rates are improved to the acceptable level of 90 percent. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of the Navy | The Secretary of Defense should direct the Navy to require its submarines and submarine tenders to adopt a more stringent demand frequency criterion to add and retain items for demand-based stock levels; namely, two recurring demands in separate months over a 6-month period to establish, and two recurring demands in separate months every 12 months thereafter to retain. |
Closed – Not Implemented
The Navy conducted a study of feasibility for implementing the recommendation and concluded that it was not feasible. The time required to evaluate the Navy study would not be worth the cost. Therefore, there is no benefit from further followup.
|
| Department of the Navy | The Secretary of Defense should direct the Navy to change its policy so that submarine tenders will limit demand-based increases in stock levels to quantities needed to sustain current operations after considering initial allowance stocks in excess of the 90-day requirement when reevaluated based on current demand experience. |
Closed – Not Implemented
The Navy did not agree with the recommendation, stating that tender load lists represent a 90-day endurance load and are built to provide 90 days of support without replenishment in a wartime scenario. Therefore, the material should not be used as peacetime stocks. Although GAO rebutted the Navy position, the Navy did not agree with the GAO position. There is no benefit from any further followup.
|
| Department of the Navy | The Secretary of Defense should direct the Navy to direct submarine tenders to periodically identify all excess on-order stocks and promptly initiate cancellation action. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of the Navy | The Secretary of Defense should direct the Navy to direct the Pacific Fleet to more vigorously emphasize the offloading of unauthorized material and more closely observe current standards. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of the Navy | The Secretary of Defense should direct the Navy to exercise controls aboard carriers to prevent requisitioning of materials and supplies that will put the ships in an excess condition. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of the Navy | The Secretary of Defense should direct the Navy to direct carriers to perform sufficient reorder reviews to permit timely identification and cancellation of those items that are in excess of the ships' needs. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of the Navy | The Secretary of Defense should direct the Navy to direct carriers to exercise controls to prevent ordering Closed Loop Aeronautical Management Program (CLAMP) items that are excess to allowances and to promptly turn in all excess CLAMP items. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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Topics
Cost controlFederal supply systemsInventory control systemsLogisticsNational defense operationsNaval procurementProperty and supply managementShipsSpare partsSubmarines