Survey of the Procurement Process at the Naval Supply Center Puget Sound and the Puget Sound Naval Shipyard

The survey of the procurement process at the Naval Supply Center, Puget Sound, and the Puget Sound Naval Shipyard (PSNS) included procedures for determining needs, making the purchases, and receiving and controlling material acquired. The materials for PSNS shop store inventories could be obtained in a more efficient manner. Also PSNS does not receive a refund or credit for containers returned to a vendor.

Cost savings might be achieved in the procurement of nonstandard stock items by requisitioning larger quantities or consolidating purchase actions. Repetitive purchases are made in relatively small quantities; thereby increasing the workload of the Supply Center and minimizing the opportunity to obtain lower prices through quantity discounts and increased competition. In addition, the PSNS automatic data processing system for shop stores inventories might be used to consolidate requisitioning quantities. The economic order quantity used in the shop store reorder quantity formula did not consider lower costs attainable through quantity buying. The Navy could also decrease the cost of acquiring shop store inventory items by identifying high use items and consolidating some purchases of these items.

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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