Navy Supply: Questionable Decisions Increased Initial Spares Costs for AV-8B Aircraft
Abstract
As requested by Senator Wilson, the General Accounting Office reviewed the Navy's initial provisioning policies and practices for the AV-8B aircraft program. This report is one in a series related to the effectiveness of defense logistics. New Navy aircraft entering the fleet need to have enough spare parts; however, if too many spare parts are purchased too early, they may become obsolete or unneeded. Purchasing parts for a new weapon system to meet the first 2 years of service requirements is known as initial provisioning. We reviewed the AV-8B aircraft program because this program has relatively recent initial spares requirements and accounts for $689 million of the $4.4 billion the Navy budgeted for initial spares between fiscal years 1985 and 1988. Although Department of Defense guidance states that initial provisioning should be provided through a cost-effective approach, we found that the Navy's Aviation Supply Office did not follow this guidance when placing orders for AV-8B spares for three principal reasons. First, ASO provided formulas for calculating initial requirements that followed the DOD guidance, but the AV-8B section adopted a minimum buy policy that authorized purchases for every type of spare regardless of the outcome of the requirements formula. Second, in some caes ASO did not consider prior orders when placing subsequent orders. Third, ASO increased spare parts orders due to contractor-imposed minimum order requirements. Internal controls were not in place to focus the attention of Navy managers on these matters.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1989
- Accession Number
- ADA205257
Entities
Organizations
- United States Government Accountability Office