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Defense Supply: Inventories Contain Nonessential and Excessive Insurance Stocks: Nsiad-95-1 (in English)
U. S. Government Accountability Office ( ; U. S. Government Accountability Office ( (Author)
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Bibliogov
· Paperback
Defense Supply: Inventories Contain Nonessential and Excessive Insurance Stocks: Nsiad-95-1 (in English) - U. S. Government Accountability Office ( ; U. S. Government Accountability Office (
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Synopsis "Defense Supply: Inventories Contain Nonessential and Excessive Insurance Stocks: Nsiad-95-1 (in English)"
GAO reviewed the Navy's and the Defense Logistics Agency's (DLA) management of their spare parts and supplies inventories, focusing on whether their insurance stocks are limited to: (1) mission-essential parts; and (2) one replacement unit as required by Department of Defense (DOD) regulations. GAO found that: (1) the Navy and DLA stock millions of dollars of unnecessary insurance items that are not mission-essential; (2) the Navy and DLA frequently exceed their authorized maximum stock levels, contrary to DOD regulations; (3) the Navy and DLA do not periodically review insurance items to ensure that they are mission-essential and stocked in appropriate quantities because they lack the internal controls necessary to prevent excessive stock buildup; (4) DOD downsizing, weapon system obsolescence and retirement, and stock retention policies have also contributed to excessive inventories; and (5) the excessive inventories cost DOD millions of dollars to procure, manage, and maintain.
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