Defense Inventory: Growth in Air Force and Navy Unrequired Aircraft Parts
NSIAD-90-100
Published: Mar 06, 1990. Publicly Released: Mar 06, 1990.
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Highlights
Pursuant to a congressional request, GAO reviewed Department of Defense (DOD) aircraft parts inventories, focusing on the causes of unrequired inventory growth and how to minimize it.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Secretaries of the Air Force and Navy to improve procurement management practices that have contributed to the growth in unrequired stocks. Specifically, the Secretaries of the Air Force and Navy should review their policies on terminating orders for unrequired items at all levels to ensure that they clearly support termination whenever practical. |
Closed – Implemented
The Navy and Air Force reviewed their policies on terminating orders to ensure that they clearly support termination whenever practical. No other action was taken or planned.
|
| Department of Defense | The Secretary of Defense should direct the Secretaries of the Air Force and Navy to improve procurement management practices that have contributed to the growth in unrequired stocks. Specifically, the Secretary of the Air Force should stop the practice of initiating purchase requests earlier than required. |
Closed – Not Implemented
This recommendation should be reevaluated in view of recent inventory policy changes within DOD, that is, issuance of DOD 4140.1R.
|
| Department of Defense | The Secretary of Defense should direct the Secretaries of the Air Force and Navy to improve procurement management practices that have contributed to the growth in unrequired stocks. Specifically, the Secretary of the Navy should stop the practice of buying more than the economic order quantity (EOQ), unless there is such specific justification in each case as a quantity discount which more than offsets additional holding costs. |
Closed – Not Implemented
This recommendation should be reevaluated in view of recent changes to DOD inventory policy, that is, issuance of DOD 4140.1R.
|
| Department of Defense | The Secretary of Defense should separately identify unrequired inventory that was obtained in the best interest of the government to ensure that such inventory is properly classified. |
Closed – Not Implemented
This recommendation should be reevaluated as part of GAO work looking at DOD efforts to clean out warehouses (code 398142).
|
| Department of Defense | The Secretary of Defense should separately identify assets that are uneconomical to repair and modify DOD regulations to ensure consistent treatment by the military services. |
Closed – Not Implemented
This recommendation should be reevaluated as part of GAO work looking at DOD efforts to clean out warehouses (code 398142).
|
| Department of Defense | The Secretary of Defense should continue to identify unrequired inventory as such and direct the Secretary of the Air Force to cancel efforts to increase the approved force acquisition objective to include an additional year of requirements. Such a change would mean that inventory managers would not have to consider terminating orders that could have been terminated under current criteria. |
Closed – Not Implemented
This recommendation should be reevaluated as part of GAO work looking at DOD efforts to clean out warehouses (code 398142).
|
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Topics
Air Force suppliesAircraft componentsInventory controlMilitary cost controlMilitary inventoriesMilitary procurementNaval suppliesProjectionsReporting requirementsSpare parts