Accession Number:

ADA615670

Title:

Improvement Needed for Inventory Management Practices on the T700 Technical, Engineering, and Logistical Services and Supplies Contract

Descriptive Note:

Corporate Author:

OFFICE OF THE INSPECTOR GENERAL (DEPARTMENT OF DEFENSE) ALEXANDRIA VA

Personal Author(s):

Report Date:

2014-12-10

Pagination or Media Count:

39.0

Abstract:

We determined whether the Department of Defense effectively managed the T700 Technical, Engineering, and Logistical Services and Supplies contract. Specifically, we reviewed inventory management practices on the Department of the Armys T700 Technical, Engineering, and Logistical Services and Supplies contract. This is the second report in a series of two reports and addresses whether T700 inventory was effectively managed. The Army improved its overall inventory management for the T700 by decreasing on-hand inventory by 11.5 million and reducing inventory from the prior GE contracts. However, opportunities for improvement still exist. Specifically, U.S. Army Contracting Command and Corpus Christi Army Depot officials did not meet goals to reduce and use existing Government-owned inventory for the T700 Technical, Engineering, and Logistical Services and Supplies contract. This occurred because U.S. Army Contracting Command and Corpus Christi Army Depot officials did not effectively monitor the reduction of inventory, and did not require General Electric to use existing Corpus Christi Army Depot T700 spare parts inventory located at the Defense Logistics Agency. As a result, excess inventory levels still exist, and Army officials had at least 309,498 spare parts in excess of the contract requirements, valued at 25.4 million, which may be used to reduce future contract requirements.

Subject Categories:

  • Administration and Management
  • Logistics, Military Facilities and Supplies

Distribution Statement:

APPROVED FOR PUBLIC RELEASE