Air Force Requirements

Requirement Computations for Aircraft Consumable Items Can Be Improved Gao ID: NSIAD-91-201 July 17, 1991

Pursuant to a congressional request, GAO examined the accuracy of requirement computations for aircraft consumable items managed through the System Support Division of the Air Force stock fund, focusing on whether the Air Force could achieve procurement economies for such items by improving requirement computations.

GAO found that: (1) the consumable item requirements computation process improperly included backordered requirements in computing reorder and termination levels; (2) as of January 31, 1991, the Air Force's duplication of backordered items in reorder level computations has resulted in $446 million in overstated requirements, which could increase fiscal year (FY) 1992 procurements by $107 million; (3) although some critical backorder cases require additional stocks, procurements based on duplicated backorders did not correct the shortage situation any faster than the system could have without the duplication and in some cases contributed to on-order excesses; (4) as of January 31, 1991, the Air Force's requirement computations took into consideration depot maintenance requirements valued at $363 million, but did not consider $217 million of available assets that were applicable to those requirements; and (5) by eliminating the duplication and considering all applicable assets in computing requirements, the Air Force could reduce FY 1992 procurements by as much as $159 million.

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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