Defense Management: Attention Is Needed to Improve Oversight of DLA Prime Vendor Program

Abstract

In fiscal year 2005, prime vendor sales accounted for approximately $9 billion of the Defense Logistics Agency's (DLA) total sales and service of $32 billion. Under the prime vendor concept, the Department of Defense (DOD) relies on a distributor of a commercial product line, who provides that product line and incidental services to customers in an assigned region or area of responsibility. Products or services are to be delivered within a specified period of time after order placement. Since 1991, we have identified the use of prime vendors as a best commercial practice for inventory management. Nonetheless, media reports in October 2005, and a hearing before the House Armed Services Committee on November 9, 2005, raised concerns about the use of the prime vendor concept and the prices that DLA was paying for items acquired through a prime vendor.

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Document Details

Document Type
Technical Report
Publication Date
Jun 19, 2006
Accession Number
AD1174676

Entities

People

  • William M. Solis

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Biomedical
  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Accountability
  • Acquisition
  • Business Administration
  • Combat Support
  • Commodities
  • Construction
  • Contracts
  • Department Of Defense
  • Governments
  • Information Systems
  • Inventory
  • Logistics
  • Logistics Support
  • Materials
  • Procurement
  • Standards
  • Textiles

Readers

  • Government Contracting/Procurement.