Logistics Support:

Controls at Navy's Andros Island Test Range Need Improvement

NSIAD-91-75: Published: Jan 28, 1991. Publicly Released: Feb 8, 1991.

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Donna M. Heivilin
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Pursuant to a congressional request, GAO examined logistics support services at the Navy's Atlantic Undersea Test and Evaluation Center (AUTEC) at Andros Island, Bahamas, and West Palm Beach, Florida, focusing on the: (1) need for certain general purpose equipment; (2) accuracy of property records; (3) adequacy of inventory controls over supplies; (4) adequacy of Navy oversight of contractor logistical support; and (5) merits of cost-reimbursement and fixed-price contracts.

GAO found that AUTEC: (1) had excess air and marine craft and land vehicles; (2) kept inaccurate property records for equipment and material and significantly understated plant equipment and overstated material inventory in its annual report; and (3) had inadequate inventory controls to prevent waste and abuse. GAO also found that the Navy: (1) did not properly oversee AUTEC logistics support activities because its assigned property administrator was not fully qualified and appointed; and (2) should consider a fixed-price contract for the logistics support portion of the work to replace the existing cost-plus-award-fee contract, since it generally knew the scope of the required logistics support work.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: The actions have been addressed. For example, air flights have been reduced, administrative vehicles were reduced by 27 percent, and marine craft were reduced. The Navy reduced AUTEC funding for fiscal years 1992 and 1993 by $813,000.

    Recommendation: The Secretary of the Navy, through the Naval Air Systems Command, should fully implement the actions that Navy and contractor officials have agreed to take in response to the deficiencies discussed in this report.

    Agency Affected: Department of Defense: Department of the Navy

  2. Status: Closed - Implemented

    Comments: The contractor has developed and documented a formal property control system with final review and approval by the Navy expected by March 31, 1992. A total of 4,208 inventory line items valued at $1.18 million have been excessed. The property administrator is to be certified upon completion of training in September 1992.

    Recommendation: The Secretary of the Navy should develop specific contractor guidance and management controls, including the appointment of a property administrator, to ensure that only adequately justified air and marine craft, motor vehicles, and material inventories are maintained and properly accounted for.

    Agency Affected: Department of Defense: Department of the Navy


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