Defense Supply Inventories Contain Nonessential and Excessive Insurance Stocks.
GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL A FFAIRS DIV
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The Department of Defense DOD stocks hundreds of millions of dollars of what it calls insurance items to ensure that the operational capability of a weapon system is not compromised. These items are mission essential spare parts and supplies that are not expected to fail through normal usage. They include aircraft parts such as doors, rudders, and ejection seats. DOD regulations state that only one replacement unit of an item may be stocked for insurance purposes. A A Review was undertaken of the Navys and the Defense Logistics Agencys DLA management of insurance items. Its objectives were to determine if insurance stocks were limited to 1 mission essential parts and 2 one replacement unit as required by DOD regulations. DOD inventory control points are responsible for managing insurance items. The Review was performed at the Aviation Supply Office ASO, one of two Navy inventory control points, and the Defense Industrial Supply Center DISC, one of six DLA inventory control points. As of March 1994, ASO managed insurance inventories valued at 193 million and, as of April 1994, DISC managed insurance inventories valued at 3 million.
- Military Forces and Organizations
- Logistics, Military Facilities and Supplies
- Administration and Management
- Economics and Cost Analysis