Review of Selected Activities In the Management of Food Supply By The Military Subsistence Supply Agency, Department of Defense

B-146700: Published: Nov 16, 1961. Publicly Released: Nov 16, 1961.

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This document is our report on review of selected activities in the management of food supply by the Military Subsistence Supply Agency (MSSA), Chicago, Illinois, the Department of Defense's single manager for subsistence supply.

We found that MSSA was incurring unnecessary costs in the procurement and supply of foodstuffs. We identified about $1 million in unnecessary costs, although we did not attempt to establish the full magnitude of the excess costs since MSSA agreed with us on the seriousness of the problems we identified and the need for corrective action. With respect to nonperishables, we found significant deficiencies in the policies and procedures used by MSSA customers for computing requirements. This resulted in the use of items in less economical size container or type of pack, redistribution of stocks, and procurement subsequent to the planned seasonal buy. Since MSSA has no control over the computation of requirements, it does not possess the capability of determining the causes of its troubles and correcting them. Regarding perishables, excess costs resulted from MSSA's failure to charge commissary stores for transportation costs and from its use of distribution facilities in an uneconomical location.