Defense InventoryDefense Logistics Agency's Excess Materiel on Order Gao ID: NSIAD-90-105 March 6, 1990
Pursuant to a congressional request, GAO reviewed the Defense Logistics Agency's (DLA) efforts to control excess materiel on order from contractors.
GAO found that DLA: (1) supply centers' excess on-order materiel ranged in value from $204 million to $449.1 million, but DLA had requested termination for only $49.9 million; (2) item managers incorrectly recomputed or arbitrarily increased requirements to avoid recommending termination; (3) did not have the appropriate data to assess progress in terminating unnecessary contracts and orders before delivery; (4) contracting officers did not determine termination costs when negotiating contracts; and (5) did not provide appropriate guidance to item managers and contracting officers.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: Team: Phone: