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Retention of Unneeded Government-Owned Special Tooling by Contractors Causes Unnecessary Costs

PLRD-82-6 Published: Oct 07, 1981. Publicly Released: Oct 07, 1981.
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Highlights

GAO reviewed the management of Government-owned special tooling, which includes such things as jigs, dies, fixtures, and other equipment whose use is limited to the production of a particular item, in the possession of selected Air Force and Navy aircraft production contractors.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should direct the Army to review the adequacy of its screening procedures and controls, and if similar weaknesses are identified, take appropriate corrective action.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Defense The Secretary of Defense should direct the Air Force and the Navy to implement improved procedures and controls to ensure that: (1) special tooling is screened before or soon after completion of original production contracts and follow-on contracts to promptly identify and dispose of tooling not needed for future production; and (2) needs are periodically reassessed for post-production special tooling which contractors have been previously instructed to retain.
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

Aircraft componentsContract costsCost controlLogisticsMilitary aircraftNational defense operationsNaval aircraftMilitary forcesAircraft acquisition programManufacturing contracts