An Evaluation of Spares Acquistion Integrated with Production,
Abstract
Spares Acquisition Integrated with Production (SAIP) is the concurrent procurement of items to serve as spares and items to be installed as components of weapon systems. It is cost-effective during initial provisioning and may remain so throughout weapon-system production. The two most important characteristics of SAIP that support this conclusion are: (1) SAIP results in lower unit prices, not only for spares but also for components to be installed during production (production installation items); and (2) SAIP enhances the timely availability of spared, and thus weapon-system readiness. We recommend that the Office of the Secretary of Defense: (1) Require evaluation of SAIP for the initial provisioning for all major weapon-system acquisition programs. (2) Revise DoD Directive 4140.40 to allow the concurrent procurement of spares and production installation items; (3) Require evaluation of SAIP for replenishment provisioning, in conjunction with the economic with the economic analysis undertaken to decide whether procurements should be broken out from the prime contractor; and (4) Revise DoD Directive 7200.4 to allow the advance procurement of long-leadtime spares prior to the fiscal year in which the related end item is to be procurred.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 01, 1981
- Accession Number
- ADA107279
Entities
People
- Brenda J. Allen
- John B. Abell
Organizations
- LMI