Continued Improvements Needed in Air Force Procedures and Practices
PLRD-83-36
Published: Feb 07, 1983. Publicly Released: Feb 07, 1983.
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Highlights
GAO completed a follow-up review of the effectiveness of actions taken by the Air Force to improve its procedures and practices for identifying and cancelling excess on-order stocks of system support stock fund items.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Air Force | The Secretary of the Air Force should direct the Commander, Air Force Logistics Command (AFLC), to revise its on-order stock termination policy and D062 requirement computation system for system support stock fund items to provide for: (1) a 3-month reduction in the on-order stock termination level buffer for items with annual dollar demands of more than $500; (2) elimination of the 12-month stock buffer used to compute termination levels for items with annual dollar demands of $500 or less; and (3) elimination of the use of unfunded war reserve requirements in computing on-order termination levels for all items. |
Closed – Not Implemented
Action was completed in September 1984 to eliminate the use of unfunded war reserve requirements in computing termination levels. Action on buffer stocks was not taken because DOD determined that it should raise the issue DOD-wide. The Inspector General (IG) is studying the services' and DLA termination practices and actions will be based on the results of a DOD/IG review.
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| Department of the Air Force | The Secretary of the Air Force should direct the Commander, AFLC, to require the air logistics centers to establish uniform information systems which will enable management to evaluate the performance of the centers in making maximum reductions in excess on-order stocks. At a minimum, the centers should develop and accumulate statistics showing the number of: (1) termination notices for on-order stocks on purchase requests and their value; (2) termination notices for on-order stocks on contract and their value; and (3) cancellations and terminations resulting from these notices and their value broken out by purchase request and by contract. |
Closed – Implemented
On April 14, 1983, AFLC initiated a system requiring its five air logistics centers to submit quarterly reports showing data on the extent to which termination notices were issued and cancellations and terminations had been effected. GAO followed up and found that cancellation and termination actions had increased significantly.
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Topics
Air Force procurementCost controlInformation systemsInventory control systemsLogisticsMonitoringProcurement cancellationStocksMilitary forcesStock market