Defense Inventory

DOD's Efforts to Improve Management and Reduce Stocks Need to Continue Gao ID: T-NSIAD-92-13 February 25, 1992

During the past 20 years, GAO has issued more than 130 reports on the Defense Department's (DOD) inventory management problems, including growth in the amount of unrequired inventory, weaknesses in the requirements determination processes, and the continual order of material that already exceeds needs. Although DOD has recently tried to improve inventory management, the problems are of such magnitude that GAO has included DOD inventory management among 16 government activities at high risk of mismanagement, fraud, and abuse. This testimony focuses primarily on secondary inventory items, such as aircraft, tank, and ship spare and repair parts; construction, medical, and dental supplies; and food, clothing and fuel. GAO concludes that the amount for DOD secondary items in fiscal year 1993 should be at least $5 billion less than the amount appropriated in fiscal year 1992.

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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