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Navy Supply: Improved Backorder Management Will Reduce Material Costs

NSIAD-93-131 Published: Mar 19, 1993. Publicly Released: Mar 19, 1993.
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Highlights

GAO reviewed the Navy's management of its backorder validation program, focusing on: (1) the adequacy of the validation practices for detecting invalid backorders; and (2) the Navy's exemption of certain categories of backorders from periodic validation.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Navy The Secretary of the Navy should direct the Commander, NSSC, to take steps to ensure that Navy field activities follow established backorder validation procedures.
Closed – Implemented
The Chief of Naval Operations sent a message to field activities advising them of the GAO findings and reemphasizing compliance with the back order validation procedures. In addition, the Naval Supply Systems Command, in order to obtain field activity compliance with existing procedures, is requesting that validation procedures become a special interest item during command inspections.
Department of the Navy The Secretary of the Navy should direct the Commander, NSSC, to rescind the exemptions from the backorder validation process and require that all backorders be periodically validated. Periodic visits to field activities should be one step to determine if they are following validation procedures.
Closed – Implemented
The Naval Supply Systems Command has completed a review of the exemptions and has removed all exemptions with the exception of foreign military sales. This exemption is required by DOD policy.

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Topics

National Defense
Federal supply systemsInventory control systemsMilitary inventoriesNaval procurementNaval suppliesProcurement cancellationProcurement regulationsPurchase ordersSpare partsMilitary forces