Navy Inventory: Better Controls Needed Over Planned Program Requirements
Abstract
The Navy's Ships Parts Control Center is the inventory control point that manages ship and submarine parts. The Navy uses planned program requirements as a basis to purchase and reserve parts for future needs. These requirements generally cannot be forecasted because they represent one-time needs and are not based on historical experience. For example, a planned program requirement may be for material needed for future ship alterations. Funded planned program requirements are considered in the supply demand reviews to determine if procurement or repair of inventory is needed. Unfunded planned program requirements are principally used to prevent disposal of inventory. As of March 29, 1992, the Ships Parts Control Center had about 400,000 funded planned program requirements, valued at over $2 billion. During Fiscal year 1991, the Center budgeted $387 million for planned program requirements. Weaknesses exist in the ships Parts Control Center's internal controls over and monitoring of planned program requirements. Specifically, the Center's files contained duplicate and unauthorized planned program requirements, as well as inappropriate requirements for which the Center did not budget and did not use to support specific supply actions. In addition, the Center's written guidance for validating these requirements was inadequate. Duplicate and unauthorized requirements could result in the possible procurement of unneeded materials.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 01, 1993
- Accession Number
- ADA267419
Entities
Organizations
- United States Government Accountability Office