Army Logistics: Better Management of the Army's Unserviceable Inventories Could Save Millions
NSIAD-91-23
Published: Nov 30, 1990. Publicly Released: Dec 07, 1990.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO examined the Army's plans for using its unserviceable asset inventories.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Army | The Secretary of the Army should direct the Commander, Army Materiel Command (AMC), to establish a means to monitor the inventory control points' compliance with Army policy and regulations that require unserviceable assets to be repaired when it is more economical than purchasing new ones. |
Closed – Implemented
AMC reviewed the management of unserviceable assets at four buying commands after the GAO audit had started, and emphasized the need, during its on-site visits, to follow Army policy in repair versus buy decisions.
|
| Department of the Army | The Secretary of the Army should direct the Commander, AMC, to evaluate the program developed by the Army's Missile Command to match assets due in from procurement with on-hand unserviceable assets and determine whether the other inventory control points should be using it. |
Closed – Implemented
AMC has instructed the other inventory control points in October 1990 to implement the MICOM-developed program. GAO will obtain data on the results of this program and, if warranted, prepare an accomplishment report.
|
| Department of the Army | The Secretary of the Army should direct the Commander, AMC, to clarify to item managers that existing regulations allow them to dispose of items the Army: (1) has determined to be uneconomical to repair; or (2) does not plan to include in a repair program. |
Closed – Implemented
AMC provided its buying commands its latest disposal policy in June 1991. It emphasized disposal of unserviceable field-level reparable stocks on wholesale records that do not have scheduled repair programs. In October 1991, AMC gave DESCOM depots permission to dispose of items which "wash out" during depot maintenance without asking for permission from the item manager.
|
| Department of the Army | The Secretary of the Army should direct the Commander, AMC, to, if the Missile Command program to identify candidates for disposal proves unacceptable, develop an effective automated procedure for use Army-wide that will identify and initiate the disposal of assets that the Army does not plan to repair. |
Closed – Implemented
The Army has integrated the Missile Command's procedures for identifying and disposing unneeded assets into its Commodity Command Standard System.
|
| Department of the Army | The Secretary of the Army should direct the Commander, AMC, to regularly follow up on planned corrective actions that have responded to audit findings and recommendations to ensure that the actions have been successfully implemented. |
Closed – Implemented
AMC indicated that it will evaluate planned corrective actions during visits to the buying commands. The evaluations are to be conducted on an "as needed" basis.
|
Full Report
Office of Public Affairs
Topics
Army procurementArmy suppliesCost effectiveness analysisEquipment repairsInventory control systemsManagement information systemsMilitary cost controlMilitary inventoriesProperty disposalSpare parts