DEFENSE ACQUISITIONS: Status of Defense Logistics Agency's Efforts to Address Spare Part Price Increases
Abstract
In recent years, the Department of Defense (DOD) has experienced significant increases in the prices it pays for some spare parts particularly consumable spare parts. These are parts that are consumed when used or discarded when worn out because they cannot be cost-effectively repaired. The Defense Logistics Agency (DLA) manages about 4 million consumable spare parts and provides about 93 percent of all consumable spare parts used by the military services. The military services have also expressed concerns to the Congress that spare part prices have been increasing at a higher rate than inflation and have taken an unanticipated bite out of the limited funds available to meet readiness requirements. In response to these problems, section 803(c) of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (P.L. 105-261)1 required DOD to perform price trend analyses on certain categories of commercial spare parts, address unreasonable price escalation, and annually report the results to the Congress for 3 consecutive years starting by April 2000.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 2002
- Accession Number
- ADA400544
Entities
People
- David E. Cooper
Organizations
- United States Government Accountability Office