Defense Supply: Inventories Contain Nonessential and Excessive Insurance Stocks: NSIAD-95-1

GAO reviewed the Navy's and the Defense Logistics Agency's (DLA) management of their spare parts and supplies inventories, focusing on whether their insurance stocks are limited to: (1) mission-essential parts; and (2) one replacement unit as required by Department of Defense (DOD) regulations.
GAO found that: (1) the Navy and DLA stock millions of dollars of unnecessary insurance items that are not mission-essential; (2) the Navy and DLA frequently exceed their authorized maximum stock levels, contrary to DOD regulations; (3) the Navy and DLA do not periodically review insurance items to ensure that they are mission-essential and stocked in appropriate quantities because they lack the internal controls necessary to prevent excessive stock buildup; (4) DOD downsizing, weapon system obsolescence and retirement, and stock retention policies have also contributed to excessive inventories; and (5) the excessive inventories cost DOD millions of dollars to procure, manage, and maintain.

• Format: Paperback
• Language: English
• ISBN: 1287225969
• ISBN13: 9781287225966
• Release Date: July 2013
• Publisher: Bibliogov
• Length: 30 Pages
• Weight: 0.16 lbs.
• Dimensions: 0.1" x 7.4" x 9.7"