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PLRD-82-31 1 (1982-01-11)

handle is hein.gao/gaobabcuk0001 and id is 1 raw text is: 



                     UNITED STATES GENERAL ACCOUNTING OFFICE
                             WASHINGTON, D.C. 20548



ANR f I IN=S 01VISICN

    B-205964                                                 JANUARY 11, 1982


    The Honorable Caspar W. Weinberger

    The Secretary of Defense

         Attention: Director, GAO Affairs                    117256

    Dear Mr. Secretary:

         Subject: LNavy's Budget Requests for Revised Shipboard Allow-
                   ances Are Overstate   (PLRD-82-31)

        - We have completed our survey of the economy and effective-
    mess of the Navy's planned revision of its shipboard stockage
    criteria. The basis for the change was a study by the Center
    for Naval Analyses (CNA) completed in July 1980. We were advised
    of the planned revision in a March 1981 letter in which the Navy
    commented on our report concerning supply support for comba Esur-
    face ships. I/ The Navy estimated that the revised criteria
    would result in additional items being stocked that would require
    increased budget requests of over $200 million. According to
    the Navy, it planned to implement the new criteria in fiscal year
    1983.

         Although the study was completed in July 1980, it had not
    been released as of November 20, 1981. Navy personnel advised us
    that, until the study results are released, the Navy has not
    officially revised its stockage criteria. While the Navy has not
    officially adopted the new stockage criteria, it has submitted
    funding requests to implement this change. Our survey work indi-
    cated that the Navy's request for Operation and Maintenance Navy
    (O&MN) funding to implement the revised criteria is significantly
    overstated because the Navy did not consider inventories of items
    already on the ships.




    1/Supply Support Costs of Combat Ships Can Be Reduced By Mil-
      lions and Readiness Enhanced (LCD-8l-9, Jan. 15, 1981).



                                                               (943106)

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