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Defense Inventory: Several Actions Are Needed to Further DLA's Efforts to Mitigate Shortages of Critical Parts

GAO-03-709 Published: Aug 01, 2003. Publicly Released: Aug 01, 2003.
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Highlights

DOD's management, funding, and reporting of spending for spare parts programs have been a focus of GAO high risk reports for over a decade. They noted that spare parts shortages adversely affect military operations and readiness. Despite funding of about $1.9 billion over fiscal years 1999-2002 to increase availability of spare parts, managing to mitigate shortages still challenges the Defense Logistics Agency (DLA). GAO examined if (1) DLA's strategic planning addresses mitigating critical spare parts shortages that affect readiness, (2) strategic initiatives will likely mitigate these shortages, (3) a DOD-directed initiative has improved availability of critical aviation parts, and (4) DLA can identify the impact of added investment on parts availability.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To improve the supply availability of critical readiness degrading spare parts that may improve the overall readiness posture of the military services, the Secretary of Defense should direct the Director of the Defense Logistics Agency to submit, as appropriate, requests for waiver(s) of the provisions of the DOD Supply Chain Materiel Management Regulation 4140.1-R that limit the safety level of supply parts to specific demand levels. Such waivers would allow DLA to buy sufficient critical spare parts that affect readiness of service weapon systems to attain an 85-percent minimum availability goal.
Closed – Implemented
DOD acknowledged that it will submit waivers as appropriate. DOD 4140.1R, dated May 2003, gives the DLA authority to waive the lead time in cases where creditable evidence exists.
Department of Defense To improve the supply availability of critical readiness degrading spare parts that may improve the overall readiness posture of the military services, the Secretary of Defense should direct the Director of the Defense Logistics Agency to change the agency's current aggregate 85-percent supply availability goal for critical spare parts that affect readiness, to a minimum 85-percent supply availability goal for each critical spare part, and because of the long lead times in acquiring certain critical parts, establish annual performance targets for achieving the 85-percent minimum goal.
Closed – Not Implemented
DOD agreed with the intent of the recommendation, but not the prescribed action. DODIG has closed the recommendation based on its proposal to link item availability to desired readiness levels instead of adopting an 85 percent minimum goal for critical items.
Department of Defense To improve the supply availability of critical readiness degrading spare parts that may improve the overall readiness posture of the military services, the Secretary of Defense should direct the Director of the Defense Logistics Agency to prioritize funding as necessary to achieve the annual performance targets and ultimately the 85-percent minimum supply availability goal.
Closed – Not Implemented
DODIG has closed this recommendation because DOD's proposed action is to fund according to agreed priorities for item availability and desired readiness levels. DOD will not be replacing the aggregate 85-percent supply availability goal with an 85-percent minimum goal.

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Topics

Combat readinessSpare partsStrategic planningMilitary inventoriesInventory control systemsAviationWeapons systemsLogisticsStrategic managementInventory control