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Air Force Requirements: Cost of Buying Aircraft Consumable Items Can Be Reduced by Millions

NSIAD-93-38 Published: Nov 18, 1992. Publicly Released: Nov 18, 1992.
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Highlights

Pursuant to a congressional request, GAO reviewed the Air Force's system for computing requirements for aircraft consumable items, focusing on: (1) actions that the Air Force took to implement previous GAO recommendations to change its requirements computation system; and (2) the potential procurement savings that the Air Force could achieve by making those changes.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress may want to consider: (1) reductions to future Air Force funding requests to reflect the procurement savings that the Air Force could achieve by acting on prior GAO recommendations to eliminate the double counting of backordered requirements; and (2) on-hand depot maintenance assets in buy computations.
Closed – Implemented
Based on GAO's information, Congress reduced the Air Force's fiscal year 1993 O&M appropriation funding request by $200 million. GAO has included this amount in an accomplishment report which GAO has sent to management for approval and signature.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretaries of Defense and the Air Force should reconsider their positions on the prior GAO recommendations and direct that the necessary changes be made to the Air Force's requirements computation policy and automated systems for aircraft consumable items to ensure that recurring demand backorders are not included twice in requirement computations.
Closed – Not Implemented
DOD seems unlikely to implement the recommendations, since it has not changed its position, even after sustaining a $200-million cut in the Air Force's FY 1993 O&M funding request. Therefore, GAO does not plan a followup on this report.
Department of the Air Force The Secretaries of Defense and the Air Force should reconsider their positions on the prior GAO recommendations and direct that the necessary changes be made to the Air Force's requirements computation policy and automated systems for aircraft consumable items to ensure that recurring demand backorders are not included twice in requirement computations.
Closed – Not Implemented
DOD seems unlikely to implement the recommendations, since it has not changed its position, even after sustaining a $200-million cut in the Air Force's FY 1993 O&M funding request. Therefore, GAO does not plan a followup on this report.
Department of Defense The Secretaries of Defense and the Air Force should reconsider their positions on the prior GAO recommendations and direct that the necessary changes be made to the Air Force's requirements computation policy and automated systems for aircraft consumable items to ensure that on-hand assets reserved to satisfy depot maintenance requirements are considered in requirement computations.
Closed – Not Implemented
DOD seems unlikely to implement the GAO recommendations, since it has not changed its position, even after sustaining a $200-million cut in the Air Force's FY 1993 O&M funding request. Therefore, GAO does not plan a followup on this report.
Department of the Air Force The Secretaries of Defense and the Air Force should reconsider their positions on the prior GAO recommendations and direct that the necessary changes be made to the Air Force's requirements computation policy and automated systems for aircraft consumable items to ensure that on-hand assets reserved to satisfy depot maintenance requirements are considered in requirement computations.
Closed – Not Implemented
DOD seems unlikely to implement the recommendations, since it has not changed its position, even after sustaining a $200-million cut in the Air Force's FY 1993 O&M funding request. Therefore, GAO does not plan a followup on this report.

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Topics

Air Force procurementAir Force suppliesAircraft componentsAircraft maintenanceDefense contingency planningInventory control systemsLogisticsMilitary cost controlMilitary inventoriesSpare parts