Defense Inventory: Defense Logistics Agency Customers Order Supplies Uneconomically
NSIAD-91-39
Published: Feb 14, 1991. Publicly Released: Apr 25, 1991.
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Highlights
Pursuant to a congressional request, GAO reviewed how the military services requisitioned supplies from the Defense Logistics Agency (DLA), to determine whether DLA customers appropriately used: (1) economical methods to order supplies; and (2) supply requisition priorities.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | To provide the military services and other supply system customers with incentives to use more economical ordering methods and high-priority services only when necessary, the Secretary of Defense should direct the Director, DLA, to determine the cost of filling a requisition and levy a minimum charge per requisition when the percentage surcharge based on the value of the item is not sufficient to recover this cost. |
Closed – Implemented
The Office of the Secretary of Defense (OSD) required the military departments to: (1) issue policy to their activities directing that order consolidation take place whenever cost-effective; and (2) review long-range ordering programs and incorporate requisition consolidation into programming efforts.
|
| Department of Defense | To provide the military services and other supply system customers with incentives to use more economical ordering methods and high-priority services only when necessary, the Secretary of Defense should direct the Director, DLA, to determine the additional cost for processing high-priority requisitions and charge customers for this service. |
Closed – Implemented
OSD issued new procedures that require the requisitioning activity to indicate on the requisition whether premium transportation is required. Failure to do so will result in automatic downgrading.
|
| Department of Defense | The Secretary of Defense should direct the Secretary of the Army to discontinue the policy of assigning a predetermined high priority to all requisitions submitted under the Total Package Fielding Program. |
Closed – Implemented
DOD directed the Army to separate its materiel allocation priorities from its transportation priorities when it submits requisitions.
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Topics
Army suppliesCost effectiveness analysisDefense economic analysisDefense procurementFederal supply systemsInventory control systemsMilitary cost controlMilitary inventoriesMilitary forcesDefense logistics