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Air Force Logistics: Improved Backorder Validation Procedures Will Save Millions

NSIAD-94-103 Published: Apr 20, 1994. Publicly Released: Apr 20, 1994.
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Highlights

As a followup to a previous review, GAO determined whether the Air Force made recommended improvements in cancelling and reconciling invalid backorders for spare parts and other supplies.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Air Force To improve the backorder validation and reconciliation program, the Secretary of the Air Force should establish and provide retail supply activities with additional detailed step-by-step procedures for validating backorders.
Closed – Implemented
The Air Force performed additional analysis of the backorder validation process and identified problems. The Air Force has made recommendations for improving the process and will do further study to determine the causes of the problems.
Department of the Air Force To improve the backorder validation and reconciliation program, the Secretary of the Air Force should provide improved management oversight and increased emphasis to resolving problems revealed by quarterly backorder reconciliation reports. For example, determine the reasons for substantial fluctuations in cancellation rates.
Closed – Implemented
An Air Force Materiel Command mission support work group has been formed and will be responsible for continuing monitoring and oversight of the backorder validation program. Meetings in March 1995 resulted in changes to the validation process.
Department of the Air Force To improve the backorder validation and reconciliation program, the Secretary of the Air Force should reinstate those provisions of the quarterly backorder reconciliation program that provide for: (1) automatic cancellation of backorders when retail supply activities do not respond to wholesale level reconciliation requests; and (2) monitoring and reporting retail level nonresponses to quarterly reconciliation requests.
Closed – Implemented
A MILSTRAP change letter dated January 25, 1995, allowed for the appropriate cancellation and reinstatement of backorders on an interim basis. The Joint Logistics Supply Center has approved policies and procedures that provide for reinstatement of erroneously cancelled requisitions. The Center has funded this change, but an implementation contract has not yet been executed.

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Topics

National Defense
Air Force procurementAircraft componentsAircraft maintenanceInformation systemsInventory control systemsLogisticsMilitary cost controlMilitary inventoriesMilitary materielSpare parts