Defense Inventory: Improvements Needed to Prevent Excess Purchases by the Air Force

In a December 7, 1999 memo, the Secretary of the Air Force directed the Air Force Materiel Command to take appropriate actions to resolve all the findings and adopt the recommendations noted in the GAO report. In order to provide more timely information to managers for canceling contracts, the Air Force reviewed its process and found that system interface problems prevented providing more timely data. The Air Force also examined its operating and worldwide termination levels and concluded that no changes were needed; however, it subsequently revised its process to eliminate both the operating period and the worldwide termination levels. DOD closed the recommendation regarding war reserve requirements, and currently the Air Force does not cancel orders for pre-stocked war reserves materials that managers are not authorized to purchase.

The Air Force is taking action to improve the accuracy of inventory management records by developing a Purchase Request Processing System. The System was scheduled to be operational as of April 2002; however, as of August 18, 2004, an Air Force official said that the System would come on line later this year. DOD did not agree with the recommendation regarding consideration of reclamation assets when canceling orders for materiel that is no longer needed, and closed the recommendation without taking action.