Pursuant to a congressional request, GAO examined the Department of the Army's inventory operations, focusing on: (1) whether the Army had a program to use long-supply spares and repair parts in depot-level repair programs and, if so, whether the program worked effectively; and (2) the economic advantages of using those assets in repair programs.
Recommendations for Executive Action
|Department of the Army||1. The Secretary of the Army should direct the Commander, AMC, to determine whether the automated means developed by the Army Missile Command to match long-supply assets to applicable repair programs will produce the desired results. If not, the Secretary should develop an effective automated procedure that will provide Army-wide capability.|
|Department of the Army||2. The Secretary of the Army should direct the Commander, AMC, to require inventory control points (ICP) and depots to comply with current policies and procedures for maximizing the use of long-supply assets applicable to repairs performed by contractors and by depots.|
|Department of the Army||3. The Secretary of the Army should direct the Commander, AMC, to strengthen internal control procedures on the use of long-supply inventories in depot-level repair programs by: (1) monitoring the extent to which corrective actions are responsive to audit findings and recommendations; and (2) conducting on-site management reviews to ensure that inventory control points and depots are complying with procedures for maximizing the use of long-supply assets in depot-level repair programs.|
|Department of the Army||4. The Secretary of the Army should direct the Commander, AMC, to report the deficiencies in the use of long-supply assets as a material weakness in the Army's system of internal controls.|