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Highlights

Pursuant to a congressional request, GAO compared Department of Defense (DOD) logistics operations with similar commercial logistics practices, focusing on: (1) the Air Force's inventory and maintenance practices for the F-108 engine compared with those used by commercial airlines; and (2) commercial practices the Air Force could adopt to reduce its logistics costs for the F-108.

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Recommendations

Matter for Congressional Consideration

Matter Status
If the schedule submitted by the Air Force to support the fiscal year (FY) 1992 President's budget request is used as a basis for evaluating the FY 1992 request, Congress may want to consider reducing the FY 1992 budget request for KC-135 modifications by $225 million due to premature deliveries of modification kits and engines, and related installation costs.
Closed - Not Implemented
Congress may want to consider rescinding $10.1 million in prior years' funding for the KC-135 modification program if it does not want the Air Force to use the funds for other purposes.
Closed - Not Implemented

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Air Force 1. The Secretary of the Air Force should direct program managers in future purchases of commercial engines in other programs to rely more on demonstrated engine reliability, ensure that adjustments are made in engine buys when schedule delays occur, and more fully utilize commercial practices to acquire and store spare engines and parts.
Closed - Implemented
DOD has not responded to the report. No action has been taken to date. GAO will put this in its plan for further review.
Department of the Air Force 2. The Secretary of the Air Force should consider using whole engines for spare parts when it is more economical than buying individual parts.
Closed - Implemented
DOD has not responded to the report. No action has been taken to date. GAO will put this in its plan for further review.
Department of the Air Force 3. The Secretary of the Air Force should consider drawing down the inventory of spare parts and relying on the engine manufacturer's parts distribution center after the inventory is reduced.
Closed - Implemented
DOD has not responded to the report. No action has been taken to date. GAO will put this in its plan for further review.
Department of the Air Force 4. To minimize the premature and possibly excessive investment in maintenance facilities when other commercial engines are purchased by the Air Force in future programs, the Secretary of the Air Force should direct the program managers to consider using preexisting commercial maintenance capability, where practical.
Closed - Implemented
DOD has not responded to the report. No action has been taken to date. GAO will put this in its plan for further review.
Department of the Air Force 5. To minimize the premature and possibly excessive investment in maintenance facilities when other commercial engines are purchased by the Air Force in future programs, the Secretary of the Air Force should direct the program managers to consider ensuring that the maintenance capability is compatible with the level of aircraft purchases and the actual performance of the engine.
Closed - Implemented
DOD has not responded to the report. No action has been taken to date. GAO will put this in its plan for further review.

Full Report