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Highlights

Pursuant to a congressional request, GAO reviewed the growth of the Army Aviation Systems Command's (AVSCOM) inventories beyond military requirements, focusing on: (1) causes for excessive stock increases; and (2) actions needed to limit inventory growth without affecting military capabilities.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Army 1. The Secretary of the Army should direct the Commander, Army Materiel Command (AMC), to establish a systematic approach to aggressively cancelling or reducing planned procurements when items are not needed to meet current requirements. This approach should also include a documentation trail to enable managers to evaluate the economic trade-offs involved in cancelling or reducing planned procurements and taking delivery of unneeded items.
Closed - Implemented
Regulations were revised and a computer model was developed to assist item managers in making contract reduction/termination decisions.
Department of the Army 2. The Secretary of the Army should direct the Commander, AMC, to dispose of items that are not needed to support end items being phased out of the Army's inventory.
Closed - Implemented
Action was taken to eliminate numeric retention as a retention category.
Department of the Army 3. The Secretary of the Army should direct the Commander, AMC, to reemphasize to item managers the need to be more responsive to changes in forecasted demands and to update and correct the database that computes requirements.
Closed - Implemented
Advisory groups have been established at each NICP to study, identify, and resolve database errors and problems. A new supply management database is being developed and should be on-line by September 1992 to assist item managers in correcting database problems. Since all the necessary steps are in process, the recommendation can be closed.
Department of the Army 4. The Secretary of the Army should direct the Commander, AMC, to report, as part of the Federal Managers' Financial Integrity Act (FMFIA) process, the actions being taken to address the database problems and to cancel or reduce unneeded procurements.
Closed - Implemented
This area was identified as a material weakness in the Army's FMFIA report for fiscal year 1990.

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