Defense Inventory: Navy Logistics Strategy and Initiatives Need to Address Spare Parts Shortages
GAO-03-708
Published: Jun 27, 2003. Publicly Released: Jun 27, 2003.
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Highlights
Since 1990, GAO has identified DOD inventory management as high risk because of long-standing management weaknesses. In fiscal years 2001 and 2002, Congress provided the Navy with more than $8 billion in operations and maintenance funds to purchase spare parts in support of the service's operations. Nevertheless, spare parts availability has fallen short of the Navy's goals in recent years. GAO examined the extent to which Navy strategic plans address mitigation of critical spare parts shortages, the likelihood that key supply system improvement initiatives will help mitigate spare parts shortages and enhance readiness, and the Navy's ability to identify the impact on readiness of increased spare parts investments.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Secretary of the Navy to develop a framework for mitigating critical spare parts shortages that includes long-term goals; measurable, outcome-related objectives; implementation goals; and performance measures as a part of either the Navy Sea Enterprise strategy or the Naval Supply Systems Command Strategic Plan, which will provide a basis for management to assess the extent to which ongoing and planned initiatives will contribute to the mitigation of critical spare parts shortages. |
Closed – Not Implemented
DOD agreed with the intent of the recommendation, but not the prescribed action. According to DODIG, this recommendation is closed because the Navy will not be modifying the Naval Supply Systems Command Strategic Plan or the higher-level Sea Enterprise Strategy to include a specific focus on mitigating spare parts shortages.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Navy to implement the Office of the Secretary of Defense's recommendation to report, as part of budget requests, the impact of funding on individual weapon system readiness with a specific milestone for completion. |
Closed – Implemented
DOD agreed with the intent of the recommendation. DODIG closed the recommendation because DOD's Financial Regulation requires services to report individual weapon system readiness as part of the budget request. The Navy's SM-3B budget exhibit for fiscal year 2005 includes estimates on Not Mission Capable due to Supply by weapon system.
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Topics
Spare partsCombat readinessEquipment inventoriesLogisticsMilitary inventoriesStrategic planningU.S. NavyWeapons systemsInventory controlMilitary forces