Defense Inventory

DOD Could Better Manage Parts With Limited Manufacturing Sources Gao ID: NSIAD-90-126 August 16, 1990

Pursuant to a congressional request, GAO reviewed the Defense Logistics Agency's (DLA) efforts to manage spare and repair parts with limited manufacturing sources, under the Department of Defense's (DOD) Diminishing Manufacturing Sources and Material Shortages Program.

GAO found that: (1) the military services had not adequately implemented the DOD program policy to ensure that its objectives were being accomplished; (2) diminishing-source parts valued at $279 million in 1989 represented 100-percent growth since 1985, mainly because DLA reclassified existing stocks to diminishing-source status; (3) life-of-type buys were not always an accurate prediction of projected needs and would sometimes result in too much stock; (4) DLA had not determined its requirements for long-term storage of diminishing-source stock; and (5) DLA did not know the quality of stored parts.

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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