Military Procurement

Air Force Should Terminate More Contracts for On-Order Excess Spare Parts Gao ID: NSIAD-87-141 August 12, 1987

In response to a congressional request, GAO reviewed the Air Force's procedures and practices for terminating procurements of excess spare parts.

GAO found that: (1) the Air Force actually terminated less than 3 percent of the excess on-order parts that GAO reviewed; (2) the Air Force should have terminated about 24 percent of the on-order excess, resulting in savings of approximately $36 million; (3) the requirements system responsible for generating on-order termination lists contained inaccurate information and was unreliable; (4) the Air Force's procedures and practices for terminating on-order excess were inadequate, since it did not consider the cost of holding excess parts in storage and untimely reviewed data generated by the requirements system; and (5) terminating excess on-order parts was more economical than accepting them.

Recommendations

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