Navy Can Improve Management of Nonaviation Depot-Level Repairable Spares

Gao ID: NSIAD-84-150 September 20, 1984

GAO reviewed the Navy's management of nonaviation depot-level repairable spares.

GAO found that the Navy manages about 82,000 spares, such as generators, transmitters, and circuit card assemblies, valued at about $5.6 billion. GAO also found that the Navy is repairing many spares that would be more economical to replace through procurement actions. A major cause of this condition is that the repair or buy decisions are based on adjusted data that favor repairing rather than on actual cost information. GAO believes that industrially-funded using activities, such as shipyards, lack sufficient incentive to return unserviceable spares because they can pass the added cost of not returning spares on to their customers in the form of higher charges.

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.

Director: John Landicho Team: General Accounting Office: National Security and International Affairs Division Phone: (202) 275-6504


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