Navy's Management of Defective Government Material Furnished to Defense Contractors

GAO discussed the problems that the Navy is experiencing as a result of defective material that it furnishes to defense contractors for their use in performing construction, overhaul, and repair contracts. GAO noted that, since the responsibility for managing defective materials is highly fragmented among various Navy commands, a total figure of defective materials cannot be provided which prevents corrective and preventive action to remedy the problem. Although several commands have established quality deficiency reporting systems, they often fail to identify the magnitude of the problems and those vendors who habitually provide poor products. GAO noted that the Navy often pays a contractor to repair or replace a defective item. This procedure is not only costing the Navy millions each year, it is relieving the producing vendors of their accountability for the quality of product provided. GAO concluded that the Navy needs to improve its management of defective materials and more effectively correct problems arising from poor material quality.