Recommendations for Executive Action

1. Status: Closed - Implemented

   Comments: The Chief, Naval Operations, has directed the Systems Commands to include review of assignment of priority designators as part of each future command inspection. Also, the Department of Defense (DOD) is issuing revised policy and procedural guidance (DODINST 4410.6) to strengthen management controls and bring about greater priority discipline.

   Recommendation: The Secretary of the Navy should direct the Commander, NAVSUP, to take steps to ensure that consumer activities and inventory stock points: (1) comply with Navy instructions on assigning high priority requisitions; (2) determine the reasons why some activities substantially exceed percentage guidelines set by the Navy; and (3) take appropriate actions to curb abuses of the issue priority system.

   Agency Affected: Department of Defense: Department of the Navy

2. Status: Closed - Implemented

   Comments: Funding provided by NAVSUP to field activities has been reduced by the amount necessary to buy only the average funded investment levels instead of maximum inventory levels. The programming actions necessary to support the revised computations have been completed and appropriate releases made.

   Recommendation: The Secretary of the Navy should direct the Commander, NAVSUP, to base intermediate inventory requirements on average funded investment levels instead of on maximum inventory levels.

   Agency Affected: Department of Defense: Department of the Navy

3. Status: Closed - Not Implemented

   Comments: The Navy continues to believe that intermediate inventories are required. A NSIAD/Logistics survey under code 398016 again is looking at the need for several stock levels.

   Recommendation: The Secretary of the Navy should direct the Commander, NAVSUP, to eliminate intermediate inventories maintained for single customers that stock the same items in their consumer inventories.

   Agency Affected: Department of Defense: Department of the Navy

4. Status: Closed - Not Implemented

   Comments: The Navy states the inventory control point resystemization project and ADP replacement project will correct shortcomings in the requirements determination process. Since implementation is sometime in the future, continued followup would be nonproductive. Also, NSIAD/Logistics has an ongoing survey of stock levels at ASO under code 398016.

   Recommendation: The Secretary of the Navy should direct the Commander, Naval Supply Systems Command (NAVSUP), to eliminate intermediate inventories that are collocated with wholesale inventories.

   Agency Affected: Department of Defense: Department of the Navy

5. Status: Closed - Implemented

   Comments: The Navy is collecting the data necessary to identify activities that exceed time standards and will take action to correct the causes of the delays. The Navy plans to mechanize the data collection report and periodically report the results. Data already has been distributed to major claimants.

   Recommendation: The Secretary of the Navy should direct the Commander, NAVSUP, to require Navy activities to comply with the NAVSUP Publication 437 requirement that they report the date materiel receipts are posted to inventory records and the date they actually receive the materiel. Using this data, as well as other requisition processing data, the Commander, NAVSUP, should identify activities that exceed Defense time standards, ascertain the reasons for delays, and correct the causes of these delays.

   Agency Affected: Department of Defense: Department of the Navy

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