Submarine Supply Support Costs Can Be Greatly Reduced without Impairing Readiness

Gao ID: LCD-76-237 June 7, 1977

The Navy overinvests tens of millions of dollars yearly in inventories of repair parts for its 106 nuclear submarines because of weaknesses in establishing and maintaining inventory levels on board submarines and tenders.

Over a 5-year period, the Navy can save as much as $106.9 million in future investments in supplies for submarines and tenders. This can be done while still keeping the submarines and tenders ready for combat. The accuracy of usage data needs to be improved and more realistic safety levels and order-ship times could be used in computing stock requirements. Submarine tenders can cancel and redistribute millions of dollars of excess stock each year by improving policies and practices.

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