The Navy Can Increase Cancellations of Procurements for Unneeded Material.
GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIV
Pagination or Media Count:
This is a letter from the GAO to Secretary of the Navy, Hon. John F. Lehman. GAO studies the Navys procedures and practices for canceling procurements of unneeded material. The study showed that cancellations can be increased, thereby reducing unnecessary procurement and inventory investment costs. GAO believes that cancellations can be much higher. The following are the principal reasons cancellations are not higher. --The inventory control points have established high dollar review thresholds. --The inventory control points apply protection levels to provide an added buffer against running out of stock. --Inventory managers do not always act on cancellation notices in a timely manner. --Management and supervisory attention over the cancellation process is limited. Report includes a letter from DOD to GAO in reply.
- Administration and Management
- Logistics, Military Facilities and Supplies