Millions of Dollars Can Be Saved by Improved Management of Aircraft Carrier Inventories

Gao ID: LCD-78-221 December 22, 1978

During a recent 2-year period, Atlantic and Pacific Fleet aircraft carriers reported inventory excesses and shortages averaging $154 million and $216 million respectively. In studying the problem for the Department of Defense, GAO found the cause of the conditions to be inventory and management control problems.

Specific examples were cited by GAO where inaccurate inventory records caused untimely or unnecessary reorders of supplies. In most cases, equipment was ordered that was already part of the carrier's inventory or could have been transferred from overstock on other carriers. Aircraft carrier inventory allowances for aviation items were overstated on procurement reports because they were based on usage data as much as 8-years old.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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