Defense Inventory: Growth in Ship and Submarine Parts

GAO has analyzable growth in ship and submarine parts, especially growth not related to increases in military capability. GAOs objectives were to 1 detail the major causes for unrequired inventory, 2 determine whether opportunities exist to minimize growth in unrequired stock, and 3 determine if, in addition to unrequired inventory, the inventory contained items with little potential for future use. This is the third in a series of reports addressing the growth in DODs secondary inventories. Under the Defense Inactive Item Program, the Navy reviews its inventory once a year to identify inactive items for possible elimination from the inventory. Items are identified as inactive when they have 1 been on the master data file for seven years, 2 had no demand in the last two years, 3 no current requirement, and 4 no current application. GAO estimates that 109,000 ship and submarine parts which have unrequired inventory have little potential for future use because the items have no users, past demands, or forecast demands. These parts meet some, but all four of the DODs criteria for being considered for elimination from the inventory. GAO believes the requirement to meet all four criteria is too restrictive.