Contract Terminations at Defense Industrial Supply Center and Defense Supply Center Philadelphia
Abstract
This report focuses on the Defense Industrial Supply Center and the Clothing and Textile Directorate at the Defense Supply Center Philadelphia. In testimony before Congress, the General Accounting Office stated that nearly $34 billion, about half of the DoD inventory of secondary items, was not needed to support war reserve or current operating requirements. As part of its National Performance Review Reinvention Impact Center, DoD set a goal of reducing DoD inventory by $12 billion by the year 2000. DoD incorporated the goal into its Government Performance and Results Act plan. The overall audit objective was to determine whether the DLA wholesale inventory control points terminated the procurement of excess quantities of materiel in response to reduced inventory requirements. The specific objective of this report was to evaluate the contract termination process at the Defense Industrial Supply Center and the Clothing and Textile Directorate at the Defense Supply Center Philadelphia. The management control program as it applied to the audit objectives was reviewed in Inspector General, DoD, Report No. 98-172, "Contract Terminations at Defense Supply Center Columbus and Defense Supply Center Richmond," July 2, 1998. The Clothing and Textile Directorate at the Defense Supply Center Philadelphia was effectively managing commodities to avoid excess procurements. However, the Navy, the Air Force, and the Defense Industrial Supply Center procedures for managing terminations of contracts and purchase requests for materiel potentially in excess to requirements needed improvement. Of 103 NSNs judgmentally sampled, valued at $21.3 million, 69 NSNs had no evidence of prompt reviews by item managers at the Defense Industrial Supply Center. Additionally, at the Defense Industrial Supply Center, 68 NSNs out of the 103 sampled items were incorrectly reported as potentially excess procurements.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 29, 1998
- Accession Number
- ADA367733
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense