Navy Supply

Questionable Decisions Increased Initial Spares Costs for AV-8B Aircraft Gao ID: NSIAD-89-103 March 2, 1989

In response to a congressional request, GAO reviewed the Navy's initial provisioning policies and practices for the AV-8B aircraft program, focusing on whether the Navy: (1) complied with Department of Defense (DOD) guidelines for ordering the aircraft's initial spare parts; and (2) purchased the amount of aviation materials that it required.

GAO found that: (1) the Navy spent about $203,000 for parts the aircraft would not require during initial service; (2) the Navy's Aviation Supply Office (ASO) failed to follow DOD directives regarding comparative analysis when it placed initial orders for aircraft spare parts; (3) although the ASO mathematical approach followed the DOD guidelines, it authorized purchases for all types of spare parts without considering the outcome of its requirements calculations; (4) ASO had spare parts in excess of its current needs because of its minimum-buy policy, its failure to consider prior orders, and its adherence to contractor-imposed minimum order requirements; and (5) ASO lacked internal control mechanisms to correct inadvertent errors or omissions and contract processing problems.

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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