Navy Maintenance

Aviation Component Repair Program Needs Greater Management Attention Gao ID: NSIAD-89-171 July 6, 1989

Pursuant to a congressional request, GAO reviewed the Navy's aviation component repair program, focusing on: (1) whether repair prices were well-supported and reasonable; (2) Navy efforts to improve efficiency and contain costs; and (3) internal program management controls.

GAO found that naval aviation depots: (1) during fiscal year (FY) 1988, overhauled almost 200,000 components, with revenues of about $601 million; (2) based their repair charges on standards reflecting the estimated number of labor hours that the repair required; (3) lacked or had inaccurate documentation to support 68 percent of 75 component repair charges GAO reviewed; (4) were not required to and did not analyze price variances, resulting in continuing overcharges or undercharges for some component repairs; (5) frequently charged for more labor hours than they actually used for component repair; and (6) did not comply with requirements to establish and track performance goals. GAO also found that the Naval Air Systems Command: (1) had inadequate controls to ensure that depots complied with instructions requiring accurate, current, and auditable work-load standards; (2) has not identified or corrected the causes of the depots' 13-percent decline in component repair efficiency between FY 1985 and 1988; and (3) has several major initiatives underway to improve the depots' efficiency and contain costs, but some are limited by design 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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