Report on Examination of the Program for Offshore Procurement in Japan of Fast-Moving Vehicular Spare Parts

B-133089: Published: Dec 3, 1958. Publicly Released: Dec 3, 1958.

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As a part of our review of supply management and inventory control at the United States Army Logistical Depot, Tokorozawa, Japan (USALDJ), we examined the program to supply 6 months' requirements for vehicular spare parts to countries in the Pacific area receiving assistance under the Military Assistance Program (MAP). This examination was made pursuant to the provisions of the Budget and Accounting Act, 1921 (31 U.S.C. 53), and the Accounting and Auditing Act of 1950 (31 U.S.C. 67).

We found that the program did not achieve its stated objective of procuring quickly and efficiently vehicular spare parts urgently needed by military assistance recipient countries in the area. Requirements for the program were grossly overstated, were increased in an unreasonable manner to arrive at quantities considered necessary to result in economical purchases, and were developed for parts or vehicles not eligible under the program. In addition, more than 1 year elapsed before the first contracts were executed although the procurement was to have been achieved in 120 days.

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