Defense Infrastructure: Inventory Control Point Consolidation Savings Would Be Substantial
NSIAD-97-157
Published: Aug 13, 1997. Publicly Released: Aug 13, 1997.
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Highlights
GAO reviewed the Office of the Secretary of Defense's (OSD) report on its review of the Defense Logistics Agency's (DLA) management of all Department of Defense (DOD) inventory control points (ICP).
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | Although substantial savings are possible by consolidating the services' ICPs under DLA, the services have resisted such proposals, citing potential risks that could affect operational effectiveness. Given this situation, the Secretary of Defense should ask the National Defense Panel to examine the savings and risks associated with ICP consolidation under DLA. |
DOD agrees that further reductions in ICP costs are required. However, DOD maintains that the consolidation of ICPs would require authorization for a BRAC action that DOD does not have. In lieu of full consolidation, DOD has recommended that it should implement the virtual ICP concept, which would result in some cost savings. DOD believes that this meets the spirit and intent of GAO's recommendation.
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Topics
Cost effectiveness analysisDefense cost controlFederal agency reorganizationInventory control systemsLogisticsManagement information systemsMilitary downsizingMilitary inventoriesMilitary materielStatistical methods