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Navy Maintenance: Aviation Component Repair Program Needs Greater Management Attention

NSIAD-89-171 Published: Jul 06, 1989. Publicly Released: Jul 06, 1989.
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Highlights

Pursuant to a congressional request, GAO reviewed the Navy's aviation component repair program, focusing on: (1) whether repair prices were well-supported and reasonable; (2) Navy efforts to improve efficiency and contain costs; and (3) internal program management controls.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Navy The Secretary of the Navy should instruct the Commander, Naval Air Systems Command, to direct the naval aviation depots to comply with requirements that component repair prices be well-supported with up-to-date, auditable documentation. To verify compliance, the Command should make on-site audits and obtain quarterly status reports on naval aviation depot efforts to maintain the standards program.
Closed – Implemented
The Navy is developing a revised work-load standards program that will address GAO concerns. Management controls built into the revised program will include periodic reporting and on-site reviews. A new instruction implementing policy on workload standards is being finalized. By memo dated January 31, 1990, the Commander, NAVAIR, directed the naval aviation depots to comply with the instruction.
Naval Air Systems Command To ensure that naval aviation depots identify and analyze variances between standard and actual labor hours for individual repairs, the Commander, Naval Air Systems Command, should direct naval aviation depots to develop quarterly reports identifying variances, analyze the reasons for the variances, and make appropriate adjustments to the standards.
Closed – Implemented
Implementation of a new variance analysis program referred to as the Variance Improvement Program for Expenditure Reconciliation was completed on September 30, 1989 as a result of accomplishment report A-NSIAD-90-11. A-NSIAD-90-12 results from congressional action to reduce industrial funds for this point.
Department of the Navy The Secretary of the Navy should direct the Commander, Naval Air Systems Command, to identify the causes of the reported productivity decline in the component repair program and take appropriate action to improve productivity.
Closed – Implemented
The Navy recognizes the need to apply enhanced action to the component repair program and will take appropriate steps to improve productivity and efficiency. The draft NAVAIR Instruction 5220.XX, implemented by memo dated January 31, 1990, sets up a process to measure productivity, makes comparisons between depots, determines causes of lost productivity, and institutionalizes corrective measures.
Department of the Navy The Secretary of the Navy should direct the Commander, Naval Air Systems Command, to require naval aviation depots to reestablish and track performance goals as a means to improve efficiency.
Closed – Implemented
Draft Instruction 5220.XX, implemented by memo dated January 31, 1990, requires the depots to establish and track performance goals. As a starting point, the Commander, NAVAIR, provided the depots with revised performance measures in December 1989.

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Topics

Aircraft componentsStaff utilizationInternal controlsLabor costsMilitary cost controlNaval facilitiesPrices and pricingProductivity in governmentRepair costsSpare parts