Air Force Logistics

Need to Improve Management Transfers of On-Order Items Which Can Be Terminated Gao ID: NSIAD-92-262 August 28, 1992

The Air Force is missing opportunities to stop unneeded purchases because it is transferring management of its on-order items to the Defense Logistics Agency (DLA) without ensuring that analyses of recommended terminations are complete. As a result, termination actions are untimely, dollar savings may be lost, and unneeded items may be added to inventories. Air Force procedures require review of potential terminations and updates of files. But they do not ensure that (1) the analyses are completed and results provided to DLA or (2) current, accurate on-order information needed to manage items is provided to DLA. GAO reviewed 10 items with the largest potential termination values transferred from the San Antonio Logistics Center to DLA and found that the Air Force had finished its analyses and provided current, accurate information to DLA for only two items. Since the Air Force expects to complete the transfer of items to DLA within three years, quick action is needed to improve the completeness and the accuracy of the information it provides to DLA.

GAO found that: (1) the Air Force lacks procedures for items with potential termination quantities, and management transfer procedures cannot ensure that the Air Force furnishes current and accurate data records to DLA; (2) untimely termination actions, lost savings opportunities, and the acquisition of unneeded inventories are a result of inadequate reviews of termination analyses; and (3) Air Force procedures require review of potential terminations, but fail to ensure that complete analyses, documentation, and accurate on-order information are provided to DLA.

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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