Questionable Funding Computation for the Ship Intermediate Maintenance Commercial Industrial Services Program

PLRD-83-23: Published: Dec 20, 1982. Publicly Released: Dec 20, 1982.

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GAO reported on a recent followup survey of intermediate maintenance management for Navy ships.

GAO found that the problems that it had reported 5 years ago concerning the intermediate maintenance activities (IMA) and the Commercial Industrial Services (CIS) program are still occurring. GAO found that, as a result of inaccurate historical data used as a base by some IMA's, the Navy is overstating its needs for contractor support funds. Specifically, the Navy Material Maintenance Management system does not adjust work data for unproductive time erroneously recorded as productive time and, therefore, reports of maintenance hours remain unreliable. GAO determined that the extent of the overstatement is not known but believes that the current computation method is not sound enough to define the CIS funds needed. Further, GAO believes that, although the Navy is presently implementing a comprehensive management information system that should significantly improve maintenance management in the future, the Navy needs to ensure that present procedures are changed to avoid overstating budget requests.

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