The Spare Parts Breakout Program
Abstract
This is our final report on the Audit of the Spare Parts Breakout Program for your information and use. Comments on a draft of this report were considered in preparing the final report. The audit *was made from June 1987 through January 1989 at the request of the Deputy Secretary of Defense. The overall audit objective was to evaluate the cost-effectiveness of the Spare Parts Breakout Program. We also determined if the Spare Parts Breakout Program was effective; if contractors furnishing spare parts were identifying the actual manufacturers of items in accordance with the Defense frocuremedt Reform Act of 1984; and if DOD procurement activities promptly implemented prime contractor recommendations for spare parts breakout. In fiscal years 1986, 1987, and 1988, DOD reported savings of $421.7 million, $489 million, and $633.8 million, respectively, from the Spare Parts Breakout Program. Progress toward implementation of the DoD Spare Parts Breakout Program has improved since issuance of the Secretary of Defense Spare Parts Initiatives in 1983. For example, in 1986 and 1987 over 610,000 spare parts were screened with 113,000 of them coded for purchase from the actual manufacturer rather than from the psime contractor. Also, 124,000 spare parts were coded for competitive procurement. This demonstrates the commitment by the Services, the Defense Logistics Agency and the Department of Defense in general to improve spare parts procurement. While the Military Departments and the Defense Logistics Agency have dedicated significant resources to the Spare Parts Breakout Program and have reported savings, further improvements in consistency and comprehensiveness are needed for a more effective Breakout Program.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 05, 1990
- Accession Number
- ADA385997
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense