Navy Can Improve Management of Nonaviation Depot-Level Repairable Spares

Highlights

GAO reviewed the Navy's management of nonaviation depot-level repairable spares.

Agency Affected	Recommendation	Status
Department of the Navy	The Secretary of the Navy should use up-to-date actual purchase and repair cost information in making repair or buy decisions.	Closed – Implemented Based on an economy of repair analysis made of the 29 items in question, 13 items were recommended for management as consumables. About $67,200 in Navy stock fund annual savings were projected for the 13 items. If considered as representative, the Navy estimates that projected savings would be $2,562,000.
Department of the Navy	The Secretary of the Navy should periodically review depot-level repairable spares to determine which should continue to be repaired or whether new spares should be purchased as replacements.	Closed – Implemented SPCC and ASO were tasked to ensure that procedures were established and reviews conducted in accordance with guidance in NAVSUPINST 4400.89, Navy Repairables Manual.
Department of the Navy	The Secretary of the Navy should explore alternatives that encourage industrially funded activities to return more unserviceable spares, test the feasibility of implementing these alternatives, and adopt the one that provides the most incentive to return the unserviceable spares.	Closed – Implemented SPCC was tasked to develop activity carcass tracking performance reports and to forward quarterly statistics. Training requirements and procedural changes are in process.

Chuck Young

Managing Director

Equipment managementEquipment repairsFinancial analysisInventory control systemsSpare partsMilitary forcesProcurementShipsShipyardsRepair costs