National Guard:

Using the Army's Supply System Will Reduce the Guard's Inventory Investment

NSIAD-93-25: Published: Dec 9, 1992. Publicly Released: Dec 9, 1992.

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Pursuant to a congressional request, GAO evaluated why the National Guard maintains its own supply system rather than using the Army's wholesale system.

GAO found that: (1) 67 percent of the requisitions the National Guard submitted were passed to the Army's wholesale system or filled by local purchases because the Guard's supply system was not authorized to stock the items; (2) approximately $680,000 of the $22.1 million on-hand inventory at the five Guard locations reviewed was in excess of the Guard's needs; (3) the Army could reduce its inventory investment by at least $215 million at all Guard locations by using the wholesale system to supply Guard units; (4) the Army Reserve was heavily dependent on the active Army's supply system for the support of its units; (5) supporting installations filled about the same percentage of requisitions for the Army Reserve as the U.S. Property and Fiscal Officer (USPFO) did for the National Guard; and (6) over 60 percent of the requisitions were not for items needed to solve urgent problems with inoperable equipment.

Recommendations for Executive Action

  1. Status: Closed - Not Implemented

    Comments: The Department of Defense's (DOD) final comments indicate that it does not plan to take the needed corrective actions. GAO is unlikely to change DOD's mind without doing another review.

    Recommendation: The Secretary of the Army should direct the National Guard Bureau to require Guard units to requisition their inventory needs directly from the wholesale level rather than through USPFO. For financial accounting purposes, the requisitions should still flow through USPFO.

    Agency Affected: Department of Defense: Department of the Army

  2. Status: Closed - Implemented

    Comments: DOD established a fielding plan for ULL and it is in the process of being completed. The estimated date for fielding is September 1994.

    Recommendation: The Secretary of the Army should establish milestones for the fielding of Unit Level Logistics System (ULLS) in the National Guard units.

    Agency Affected: Department of Defense: Department of the Army

  3. Status: Closed - Implemented

    Comments: DOD, in conjunction with developing a fielding plan for ULL, has begun software development for the system. When completed, Guard units will be able to train on the same system in peacetime that they will use when mobilized.

    Recommendation: The Secretary of the Army should require the National Guard to use ULLS in its peacetime operations so that it will be better prepared when mobilized.

    Agency Affected: Department of Defense: Department of the Army

 

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