Deficiencies in the Air Force's Maintenance Actual Material Cost System

LCD-77-206: Published: Jan 6, 1977. Publicly Released: Feb 19, 1982.

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A survey was conducted of cost and quantity data used in stock management of material consumed at the Oklahoma City Air Logistics Center. Air Logistics Centers use data of the GOO4H Maintenance Actual Material Cost System in determining rates to charge customers for repair work. The Centers also adjust standards for material usage on the basis of data developed by the system.

Analysis of November 1975 activity showed that 7,113 of 18,657 expense items consumed at Oklahoma City were erroneously priced. The sum of negative and positive pricing for the month was $555,125.71. Center personnel were unable to explain these differences without a detailed analysis. The figures show that inaccurate data are being used in determining rates to charge customers. Adjustments of quantity errors in the system give the appearance of normal issues and turns-ins in GOO4H outputs, which results in erroneous usage data being analyzed to refine material standards. Deficiencies at the Oklahoma City Center may be symptomatic of similar problems at other centers.

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